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Tuesday 6 April 2021
Rutland Man Charged with Unlawfully Possessing Firearm that Killed Another Rutland ManRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kahliq Richardson, 18, of Rutland, Vermont, was arrested yesterday evening for unlawfully possessing a firearm. Richardson is scheduled to appear remotely this afternoon for an initial appearance before the Hon. Kevin J. Doyle, United States Magistrate Judge.
According to the complaint filed earlier today, on Saturday, April 3rd, Rutland City Police responded to a shooting at the Quality Inn on South Main Street. In Room 100, they located a deceased male who had suffered a gunshot wound to the head, a tan Taurus 9mm pistol, assorted ammunition, suspected marijuana, and drug paraphernalia. Witnesses identified Richardson as having possessed a tan firearm in the days prior to the shooting. Richardson subsequently reported to law enforcement that he had used cocaine base in Room 100 of the Quality Inn on the evening of April 3, 2021. Richardson also admitted to being in possession of the tan Taurus firearm, and that the firearm had accidentally discharged. Law enforcement subsequently searched Richardson’s bedroom, locating suspected marijuana and one 9mm ammunition cartridge. Law enforcement also ascertained that Richardson had been served with a final Relief From Abuse order on January 29, 2021, following an incident of domestic violence reported by Richardson’s ex-girlfriend.
Richardson was arraigned in Vermont Superior Court in Rutland on April 5, 2021 on a charge of manslaughter related to the shooting at the Quality Inn. Following the hearing, Richardson was arrested by an FBI Task Force Officer for Richardson’s possession of a firearm while an unlawful user of controlled substances and after having been served with a relief from abuse order, both in violation of Title 18, United States Code, Section 922(g).
The United States Attorney emphasizes that the charge against Richardson is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, Richardson could face up to ten years in prison, up to a $250,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Richardson’s personal history and characteristics.
AUSA Wendy Fuller is prosecuting the case for the government. Richardson is represented by Mark Kaplan, Esq.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Romanian National Sentenced to 33 Months in Federal Prison for Role in Nationwide ATM Skimming ActivityRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that GEORGE DRAGUSIN, also known as “Georgio Anderini” and “Einstein,” 65, a citizen of Romania, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 33 months of imprisonment for his participation in an extensive ATM skimming scheme that defrauded banks from coast to coast.
According to court documents and statements in court today, between February and June 2017, a Connecticut bank experienced approximately 35 incidents of ATM skimming at locations in Stratford, Monroe, Trumbull, Greenwich, Fairfield and elsewhere in Connecticut. As part of the scheme, conspiracy members placed skimming devices at the ATMs to capture account numbers and personal identification numbers (“PINs”) from customers who used their ATM cards at the ATMs while the devices were in place. Conspiracy members then used the captured information to make substitute ATM cards, and obtained money and made purchases using those cards. The bank suffered losses of approximately $286,069 during the scheme.
On August 23, 2019, Dragusin pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In pleading guilty, he admitted that he installed and removed ATM skimming equipment at several bank locations in Connecticut, and used re-encoded cards and PINs to obtain money from several bank locations. Dragusin also admitted that, between March and September 2018, he participated in ATM skimming activity in Nevada, Illinois, Ohio, Indiana and California, causing multiple banks to suffer total losses of more than $645,000.
Dragusin was arrested in Hayward, California, in September 2018. He has been detained since his arrest.
This investigation has been conducted by the Connecticut Financial Crimes Task Force; the U.S. Secret Service in New Haven and Las Vegas; the Greenwich Police Department; the Monroe Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); the New York Police Department; the Las Vegas Metropolitan Police Department; the Dixon (Calif.) Police Department, and the Hayward (Calif.) Police Department.
The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Repeat Fraudster Sentenced to over Five Years in Prison for Operating Credit Card Fraud Ring from Latvia Targeting U.S. CitizensRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edgar Ivulans, 43, of Latvia, was sentenced today to five years and five months in prison, and was ordered to pay $12,754 in restitution, to forfeit $12,754, and to further pay a $4,000 special assessment by United States District Judge R. Barclay Surrick for operating a fraud scheme utilizing the stolen identities of U.S. citizens. The defendant, a Latvian citizen who was arrested in Germany and successfully extradited to the United States to face the charges in this case, operated the fraud scheme from his home in Latvia.
In June 2020, the defendant pleaded guilty to a 40-count Indictment charging one count of conspiracy to commit mail and wire fraud; 13 counts of wire fraud; 14 counts of mail fraud; one count of conspiracy to commit access device fraud; one count of production, trafficking in, and possession of device-making equipment; one count of production of counterfeit access devices; five counts of money laundering; and four counts of aggravated identity theft.
Ivulans had previously lived in the United States but was deported to his native Latvia after sustaining two fraud convictions in federal court in Illinois. Ivulans’ deportation and residency in Latvia did not stop him from operating the sophisticated fraud scheme in this case. As part of the scheme, Ivulans used stolen identities of U.S. residents to obtain credit cards in their names, which he sent to a co-conspirator based in Philadelphia, who in turn used the fraudulently opened credit cards to buy merchandise that was then sold or returned for cash. The Philadelphia-based co-conspirator would then wire the funds to other co-conspirators in Russia, or first to co-conspirators in Ireland and then to the defendant. Ivulans, while in Latvia, also created additional counterfeit credit cards using the U.S. victims’ credit card information, and sent the Philadelphia-based co-conspirator a magnetic stripe card reader, which was used to create new counterfeit credit cards that the co-conspirator used to purchase pre-paid debit cards and other goods. That merchandise was then shipped to more co-conspirators in Sweden and Ukraine, and directly to the defendant. When Latvian authorities, working in conjunction with the FBI, searched Ivulans’ home in Latvia, over 12,000 credit card numbers were found on his computer, along with at least ten full identity profiles of U.S. residents.
“Identity theft crimes like these have a devastating and long-lasting impact on the victims,” said Acting U.S. Attorney Williams. “Ivulans’ crimes are especially offensive because he committed them after sustaining other fraud convictions resulting in his deportation. Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Queens Man Charged for Defrauding Government Rental Assistance Programs by Renting Out Dilapidated Apartments He Did Not Own to Families in NeedRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging PAUL FISHBEIN, the defendant, with theft of government funds, wire fraud, and mail fraud for defrauding rental assistance programs administered by New York City’s Human Resources Administration (“HRA”), New York City’s Housing Preservation & Development (“HPD”), and the New York City Housing Authority (“NYCHA”), by falsely claiming to be the owner and landlord of 20 properties (the “Properties”) in New York City, renting out the Properties to families in need through the rental assistance programs, and collecting money – including federal funds – from HRA, HPD, and NYCHA as the purported owner and landlord of the Properties. The defendant is also charged with Medicaid fraud. The defendant was arrested today and will be presented later today in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron.
U.S. Attorney Audrey Strauss said: “As alleged, Paul Fishbein not only took advantage of New Yorkers in need, he also defrauded city and federal government programs designed to help those very people. Fishbein allegedly lied about ownership of residential properties, fraudulently took rent subsidies and other benefits from those government housing programs, and often evicted tenants without cause from housing that was substandard in any event. Now Paul Fishbein is in custody and facing serious federal charges for his alleged fraud and exploitation.”
DOI Commissioner Margaret Garnett said: “This defendant’s alleged conduct wove a web of lies that allowed him to illegally profit from government programs meant to help those in desperate need of housing, and he further exploited them by providing squalid apartments in properties he did not rightly own, often evicting them shortly after they moved in, according to the charges. Homeless New Yorkers, and others in critical need of housing, not only have a need but a right to homes that are clean, safe, and secure, especially when they are offered through public assistance programs. DOI will continue to work in partnership with the U.S. Attorney’s Office for the Southern District of New York to root out and stop the corruption and fraud that undermines basic needs such as housing.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
The Rental Assistance Program Fraud
The Rental Assistance Programs
HRA, HPD, and NYCHA (collectively, the “Agencies”) each offer a rental subsidy program that helps provide critical affordable housing to New Yorkers in need. Landlords who participate in these programs receive guaranteed monthly rent payments, among other benefits. Rental units must meet federal “Housing Quality Standards,” which are based on the minimum criteria for safe housing, and otherwise meet basic safety and living conditions.
Specifically, HRA administers a rental assistance program (the “Rental Assistance Program”) that helps homeless families move out of the shelter system and into stable housing. Landlords who participate in the Rental Assistance Program rent housing to homeless families, and in turn, HRA pays participating landlords, among other things, (i) the first month’s rent; (ii) a landlord bonus at signing, which is currently $4,300; and (iii) a rent supplement for either the first three or 11 months’ rent, which is paid in a lump sum at the time of the lease. In addition, if a landlord uses the services of a broker in renting out the property, HRA will pay the broker a broker’s fee equal to 15 percent of the annual rent. These and other program-related payments from HRA to participating landlords and brokers include funds from the federal government.
HPD offers a Housing Choice Voucher program, which is also known as Section 8 (“HPD’s Section 8 Housing Program”). This program provides federal funding to local housing agencies to assist eligible low-income families with rental subsidies toward decent, safe, and affordable housing. Participating families pay a certain percentage of their income toward rent and HPD pays the difference directly to the landlord.
NYCHA also operates a Section 8 program (“NYCHA’s Section 8 Housing Program”), which provides assistance to eligible low- and moderate-income families to rent housing in the private market. NYCHA’s Section 8 Housing Program works as a rental subsidy that allows families to pay a reasonable amount of their income toward their rent. In general, families pay no more than 40 percent of their adjusted monthly income toward their rent share. NYCHA pays the remaining amount to the property owner on the family’s behalf.
The Housing Fraud
In this case, from at least in or about 2013 through at least in or about the present, the defendant defrauded the Agencies’ rental assistance programs by falsely claiming to be the owner and landlord of 20 different Properties in New York City based on forged deeds that purported to transfer the Properties from legitimate owners to the defendant. The defendant rented out the Properties to homeless and low/moderate-income families through the Agencies’ programs, and collected payments from the Agencies as the purported owner and landlord of the Properties. In addition, the defendant falsely represented to HRA that he used a broker to rent out the Properties, and collected and kept for himself certain broker’s fees that HRA issued for the Properties. The defendant also took advantage of the homeless and in-need families who were placed in the Properties. For example, most of the Properties that Fishbein rented out were dilapidated and uninhabitable. Moreover, even though he was not the lawful owner of the Properties, the defendant often evicted families shortly after they were placed in the Properties. Through this scheme, the defendant fraudulently obtained more than $1.5 million from HRA, HPD, and NYCHA, including more than $270,000 in federal funds.
The Medicaid Fraud
The defendant also committed Medicaid fraud. Medicaid is a health insurance program for low-income adults, children, pregnant women, elderly adults, and people with disabilities, which is funded jointly by states and the federal government.
From at least in or about 2014 through at least in or about the present, the defendant received Medicaid benefits based on his false representations to HRA that he was financially eligible for Medicaid. During that time, the defendant represented to HRA that he worked at a company where his total income was approximately $150 a week – that is, approximately $600 a month or approximately $7,200 a year. In reality, the defendant made hundreds of thousands of dollars each year, thus, far exceeding the income and asset limitations for Medicaid eligibility. By lying about his income and assets, the defendant received at least approximately $47,621 in Medicaid benefits to which he was not entitled.
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FISHBEIN, 47, of Far Rockaway, New York, is charged with two counts of theft of government funds, in violation of Title 18, United States Code, Section 641, each of which carries a maximum sentence of 10 years in prison, one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of wire fraud, in violation of Title 18, United States Code, Section 1343, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of DOI.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Previously Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Santos Nicolas Obando-Flores, age 48, of Brentwood, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography. Judge Messitte also ordered that, upon his release from prison, Obando-Flores must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In 2015, Obando-Flores was convicted of a sex offense after engaging in sexual contact with a nine-year-old minor and was sentenced to 20 years in prison with all but six years suspended.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police (MSP).
According to his guilty plea, on September 13, 2018, Obando-Flores was being administered a routine polygraph examination by a Maryland State Police polygraph examiner. The routine polygraph was required because Obando-Flores was a registered sex offender. During the post-polygraph interview, Obando-Flores admitted to the polygraph examiner that he had viewed child pornography on his cellphone and that the pornography was still on the cellphone. Obando-Flores also admitted to having as many as one hundred videos containing child pornography on his phone.
The polygraph examiner stopped the interview and read Obando-Flores his Miranda Rights, which Obando-Flores acknowledged that he understood. Obando-Flores agreed to speak with law enforcement without an attorney present and again admitted to the MSP polygraph examiner that there was child pornography on his cellphone. He explained to the polygraph examiner that he got it from a Facebook page and that he received multiple videos of child pornography through a “group chat” from an application on his phone. Obando-Flores was able to describe some videos depicting prepubescent minors engaged in sex acts or provocatively posed. Obando-Flores admitted that he started getting the videos approximately six to eight months prior.
The polygraph examiner confiscated Obando-Flores’s cellphone, which Obando-Flores had brought with him to the scheduled meeting and Obando-Flores consented to the search of his phone. An MSP trooper previewed the phone and found numerous files of suspected child pornography. Obando-Flores was arrested and a federal search warrant was obtained from the phone. Forensic analysts identified approximately 359 videos and 200 images documenting the sexual abuse of minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Jonathan F. Lenzner commended HSI-Baltimore and the Maryland State Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Timothy F. Hagan, Jr. and Jennifer R. Sykes, who prosecuted the federal case.
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President of New York-Based Company Arrested for Conspiring to Violate U.S. Sanctions Against IranRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jonathan Carson, Special Agent in Charge of the New York Field Office of the U.S. Department of Commerce, Office of Export Enforcement (“DOC-OEE”), announced today the unsealing of charges against MICHAEL ROSE for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”), and participating in bank fraud and money laundering conspiracies. ROSE was arrested by the FBI and OEE today, and he will be presented later today in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Michael Rose participated in a years-long scheme to violate our sanctions by surreptitiously exporting cosmetics to Iran via front company intermediaries in the Middle East. Today’s charges underscore that those who violate our sanctions on Iran will be investigated and prosecuted.”
FBI Assistant Director William F. Sweeney Jr. said: “Whatever his motivation – greed or something more sinister – we allege Mr. Rose intentionally disguised his products’ ultimate destination and lied about those products’ prices to limit his customs liability. It’s a federal crime to violate sanctions the United States put in place to protect our national interests from Iran and other designated nation states. Mr. Rose may have thought the rules didn’t apply to him, but, if he did, today’s action demonstrates otherwise.”
DOC-OEE Special Agent in Charge Jonathan Carson said: “The Office of Export Enforcement will vigorously enforce sanctions violations involving Iran, including actions by exporters to undermine the integrity of our export control system through the submission of false or misleading information. The Office of Export Enforcement will continue applying the investigative resources and authorities necessary to protect and promote U.S. national security, foreign policy, and economic interests.”
According to the Indictment[1] unsealed today in Manhattan federal court:
MICHAEL ROSE is the president of a Long Island-based cosmetics manufacturer and supplier (“Company-1”). In that role, ROSE manages, among other things, Company-1’s operations and its international sales business. Between 2015 and 2018, ROSE participated in a conspiracy to evade U.S. sanctions on Iran by causing Company-1 to export from the United States more than $350,000 worth of cosmetics to an importer in Iran (“Importer-1”). In or about June 2015, ROSE signed a contract with Importer-1 establishing that Importer-1’s Iran-based company would be the exclusive distributor for Company-1’s products in Iran. Importer-1 then used front companies based outside Iran to make payments to Company-1 in New York and to arrange for the transshipment of Company-1’s goods to Iran via the United Arab Emirates. In addition to shipping goods and accepting payments in violation of U.S. sanctions, ROSE also filed false and misleading information on United States Department of Commerce Shipper’s Export Declaration forms in connection with the illegal shipments. The forms falsely represented that the “ultimate consignee” for the goods was in the United Arab Emirates, not Iran, and also falsely lowered the purchase price for the goods purchased by Importer-1 in order to evade customs payments.
* * *
ROSE, 50, of Ridgefield, Connecticut, is charged in the Indictment with (1) conspiring to violate IEEPA, in violation of 50 U.S.C. § 1705, which carries a maximum sentence of 20 years in prison; (2) conspiring to launder money, in violation of 18 U.S.C. § 1956(h), which carries a maximum sentence of 20 years in prison; and (3) conspiring to commit bank fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 30 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding efforts of the FBI and the Department of Commerce’s Bureau of Industry and Security (“BIS”) for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution, with assistance from Trial Attorney Scott Claffee of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Pittsburgh Felon Sentenced for Illegally Possessing a PistolRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 18 months to be followed by three years of supervised release on his conviction for possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David Cercone imposed the sentence on Aaron Lyons, 26, of 617 Swissvale Avenue, Pittsburgh, PA 15221.
Previously, in connection with Lyons’ guilty plea, the court was advised that on November 19, 2019, Pittsburgh Police conducted a traffic stop in the East Liberty neighborhood of Pittsburgh of a vehicle in which Lyons was a traveling as a passenger. During the stop, officers conducted a pat down of Lyons for officer safety and felt a gun barrel in his jacket pocket. Following a scuffle resulting from Lyons’ failure to comply with officer instructions, a loaded .40 caliber Smith and Wesson pistol was recovered from him. Lyons had been convicted of four offenses in three different cases between 2014 and 2018. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police conducted the investigation leading to the successful prosecution of Lyons.
Pittsburgh Felon Charged with Illegal Possession of Crack Cocaine and FirearmsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The five-count superseding indictment named Michael Champion, age 44, as the sole defendant.
According to the Superseding Indictment, on April 14, 2017 and August 15, 2017, Champion possessed with the intent to distribute a quantity of cocaine base, commonly known as crack cocaine. Additionally, on April 14, 2017, Champion was in possession of numerous firearms, including an unregistered sawed-off shotgun, in furtherance of that drug trafficking crime. Champion is a convicted felon and prohibited by federal law from possessing any firearms.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police – Narcotics and Vice Division conducted the investigation leading to the Superseding Indictment in this case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Resident Charged with Fentanyl Trafficking OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury in Hartford returned an indictment today charging REGINO MORILLO-ESPINAL, 38, of Allentown, Pennsylvania, with possession with intent to distribute 400 grams or more of fentanyl.
As alleged in court documents, members of the Drug Enforcement Administration’s Hartford Task Force identified Morillo-Espinal as a trafficker of wholesale quantities of fentanyl. On March 26, 2021, investigators stopped Morillo-Espinal’s vehicle on I-91 South after he had traveled from Allentown to multiple locations in Hartford. A search of the vehicle revealed approximately two kilograms of suspected fentanyl.
The charge of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Morillo-Espinal has been detained since March 26, 2021.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The Connecticut State Police has assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Owner of Utah Trucking Companies Pleads Guilty to Role in FedEx Trucking Bribery Scheme Worth $24 Million and PPP Loan FraudRead the Press Release
SALT LAKE CITY – Hubert Ivan Ugarte, 52, of Draper, Utah, pleaded guilty for his role in two separate fraud schemes last week in federal court. Ugarte first pleaded guilty to charges related to a federal bribery case involving the procurement of FedEx Ground (FXG) contract shipping routes worth $24 million dollars of profit and also pleaded guilty to fraudulently obtaining a federal Paycheck Protection Program (PPP) loan for other trucking companies.
In the bribery case, Ugarte was convicted of fraud and money laundering charges for his involvement in a pay-to-play trucking scheme where prosecutors alleged that Ugarte was one of ten defendants who paid approximately $1 million in bribes to the Utah FXG Ground Hub manager in order to exploit the manager’s position with FedEx and make their trucking businesses as lucrative as possible.
In the plea agreement, Ugarte admitted to bribing the FXG senior linehaul manager, Ryan Lee Mower, with approximately $490,000 which netted Ugarte’s trucking companies over $24 million dollars during a seven-year period between 2012 and 2019. In exchange for the bribe payments, the FXG manager awarded Ugarte’s companies with several delivery routes from FXG that Ugarte would not have qualified for under FXG’s established policies.
In order to carry out the scheme, Ugarte and the FXG manager worked to obscure the ownership of Ugarte’s many trucking companies by filing false compliance reports with FXG in order to award Ugarte with more trucking routes than one business owner was entitled to under established FXG policies. As a result, Ugarte was allowed to operate at least 45 trucking routes originating from the Salt Lake FXG hub, greatly exceeding the FXG limit of only 15 trucks for the Salt Lake City hub. This practice, known as “over scaling” in the contract shipping industry, along with the payment of bribes to the FXG manager, would have resulted in the automatic termination of Ugarte’s contracts if discovered by authorities at FXG. Throughout the scheme, Ugarte’s companies received approximately $135,000,000 in gross payments from FXG, resulting in net profits to his trucking companies of approximately $24,000,000.
In the second case involving Paycheck Protection Program (PPP) loan fraud, Ugarte pleaded guilty to submitting a fraudulent loan application to the Small Business Administration (SBA) through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Ugarte admitted that he fraudulently obtained $210,000 in PPP loans after failing to disclose that he was under federal indictment for his role in the fraudulent trucking scheme.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $249 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
On May 14, 2020, Ugarte received $210,000 from Transportation Alliance Bank under the PPP. Instead of using at least 75 percent of the loan to pay payroll costs, including bounced payroll checks, Ugarte used 60 percent of the loan to pay the past due truck payments – leaving 40 percent for payroll costs.
Sentencing is set for June 3, 2021, in both matters.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the cases against Ugarte. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Oneida County Man Sentenced to 57 Months for Possessing Firearms and Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK - Joseph W. Cromp, Sr., age 47, of Blossvale, New York, was sentenced today to serve 57 months in federal prison for possessing two firearms and over 100 rounds of ammunition as a convicted felon, announced Acting United States Antoinette T. Bacon , John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Acting New York State Police Superintendent Kevin P. Bruen.
As part of his previous guilty plea, Joseph W. Cromp, Sr. admitted that he possessed a Rohm .22 caliber revolver and an Izhmash SAIGA 7.62 x 39 mm AK-47 style semiautomatic rifle, as well as 113 rounds of rifle ammunition that were seized pursuant to a search warrant by New York State Police from the defendant’s home in Blossvale, New York, on October 2, 2019. Cromp was previously convicted of the felony offense of Attempted Assault in the Second Degree in Oneida County Court on February 9, 2001. The search warrant and subsequent seizure of the firearms and ammunition followed a confrontation Cromp had with another man earlier in the evening.
In addition to the prison sentence imposed today, Joseph W. Cromp, Sr. was also sentenced to serve a three-year term of supervised release after he completes his term of imprisonment. His sentence also includes his forfeiture of the two firearms and accompanying 113 rounds of ammunition.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New York State Police, and was prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Oneida County District Attorney’s office.
Prosecution of this case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ohio man indicted on wire fraud chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kenneth Werkau, of Clarington, Ohio, was indicted today on wire fraud charges, Acting United States Attorney Randolph J. Bernard announced.
Werkau, 63, was indicted today on three counts of “Wire Fraud.” Werkau was employed as an associate at Walmart in Moundsville. Beginning in September 2019 and ending in January 2020, Werkau is accused of stealing $123,775 in gift cards and activating them without paying for them.
Werkau faces up to 20 years of incarceration and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Dane DeMasi-Lemon is prosecuting the case on behalf of the government. The FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Rashaad Shadee Washington, of Pleasant City, Ohio, was indicted today on drug charges, Acting United States Attorney Randolph J. Bernard announced.
Washington, 37, was indicted on one count of “Distribution of Methamphetamine within 1000 Feet of a Protected Location” and two counts of “Distribution of Methamphetamine.” Washington is accused of selling methamphetamine, sometimes near McNinch Primary School, in Marshall County and Ohio County in February and March 2021.
Washington is facing at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for the protected location charge, and up to 20 years of incarceration and a fine of up to $1,000,000 for each of the distribution charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Northborough Nurse Charged with Tampering with Liquid MorphineRead the Press Release
BOSTON – A registered nurse was arrested yesterday in connection with tampering with morphine prescribed to a nursing home resident in her care.
Gwen Rider, 41, of Northborough, was indicted on one count of tampering with a consumer product and one count of obtaining a controlled substance by fraud and deception. Rider was released on conditions after making an initial appearance in federal court in Worcester yesterday afternoon.
According to the indictment, Rider was a registered nurse employed by a Worcester county nursing home. From approximately 11:00 p.m. on Nov. 6, 2020 until 7:00 a.m. the following morning, Rider was on duty in a unit specializing in care for residents suffering from dementia. During her shift and while entrusted with the care of a resident suffering from dementia, Rider allegedly tampered with a bottle of morphine sulfate prescribed to the patient by removing some of the morphine and tampering with the remaining supply. Morphine sulfate is a Schedule II controlled substance under federal law.
The charge of tampering with a consumer product provides for a sentence up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of obtaining a controlled substance by fraud and deception provides for a sentence of up to four years in prison, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and Monica Bharel MD, MPH, Commissioner of the Massachusetts Department of Public Health made the announcement today. Valuable assistance was also provided by the Northborough Police Department.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Naples Man Charged with Child Exploitation Crimes Involving 13-year-old GirlRead the Press Release
Miami, Florida – South Florida federal prosecutors have charged 49-year-old Jeffrey Keith Holcombe in a criminal complaint that accuses him of coercing a 13-year-old girl from Miami into taking and sharing with him sexually explicit pictures and videos of herself.
The criminal complaint unsealed yesterday charges Holcombe with producing and attempting to produce child pornography and with transferring obscene material to a minor. The complaint affidavit makes the following allegations against Holcombe: Holcombe met the minor on an internet based social media application in approximately March 2020. During early exchanges, Holcombe sent the child a picture of a penis and she sent him nude pictures and videos of herself, some of which showed her face. When the minor told Holcombe that she would not send additional photographs or videos of herself, he responded: “No,” and, “you belong to me.” According to the allegations, Holcombe threatened the minor: If she did not continue to send sexually explicit images to him, he would sell those he already had of her online, make posters of her images and post them around the neighborhood where she lived, and would find her and her family.
Law enforcement was alerted to the conduct and an investigation led agents to Holcombe. Holcombe was arrested on Saturday, April 3, 2021 in Collier County, Florida. He made his initial appearance in federal district court in Fort Myers, Florida yesterday. Holcombe will be transferred to the Southern District of Florida for prosecution.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami, in particular, FBI Miami’s Child Exploitation Task Force, investigated the case. FBI Tampa and Collier County Sheriff’s Department assisted, as did the U.S. Attorney’s Office for the Middle District of Florida. The case is being prosecuted by Assistant U.S. Attorney Dayron Silverio of the Southern District of Florida.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
A criminal complaint contains allegations. A defendant is presumed innocent unless and until found guilty.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-mj-02598.
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McKeesport Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, pleaded guilty in federal court to a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Stephen R. Kaufman announced today.
Michael Brooks, age 54, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on March 25, 2020, in connection with the execution of a search warrant at his residence, Brooks was found in possession of more than 540 still images in computer graphics and digital files depicting the sexual exploitation of minors, many of whom were under the age of 12 years.
Judge Horan scheduled sentencing for July 27, 2021 at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Brooks remain on bond and that he immediately register in Pennsylvania as a sex offender under the provisions of the Sex Offender Registration and Notification Act (SORNA).
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Brooks.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maryland Man Pleads Guilty to Federal Arson Charge for a 2017 Fire That Destroyed a Pasadena BarRead the Press Release
Baltimore, Maryland –Jamie Clemons, age 36 of Pasadena, Maryland, pleaded guilty today to malicious destruction of a property by fire, in connection with the fire on July 28, 2017, at Coconut Charlie’s, a bar in Pasadena. As a result of the arson, Coconut Charlie’s sustained over $500,000 in damage; the building was razed and the business was forced to permanently close.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; the Anne Arundel County Fire Chief Trisha L. Wolford; and the Anne Arundel County Fire Marshal Division Chief John Lane.
“This defendant not only caused devastating damage to a longtime Maryland business, he also endangered our brave firefighters who responded to the arson that he set,” said Acting U. S. Attorney Jonathan F. Lenzner. “I’d like to thank ATF and our partners in Anne Arundel County for their impressive investigative work in solving this arson. Arsons are often difficult crimes to uncover and prove in court, and I am grateful to our investigative and prosecution teams for their dedication and persistence.”
According to the indictment and the government’s plea letter, on July 28, 2017, Clemons maliciously damaged and destroyed by fire a bar known as Coconut Charlie’s, located in the 9100 block of Fort Smallwood Road in Pasadena, in order to conceal evidence of an assault he had committed there on July 22, 2017.
As detailed in the statement of facts filed as part of the government’s plea letter, on July 22, 2017, at approximately 1 a.m., Clemons assaulted his girlfriend on the patio area of Coconut Charlie’s. An Anne Arundel County Police officer witnessed the assault and it was also captured on Coconut Charlie’s video surveillance system. As a result, Clemons was charged with second degree assault and theft of less than $100 in the District Court for Anne Arundel County, and was served with a summons for the case on July 27, 2017.
Clemons admitted that in the early morning hours of July 28, 2017, Clemons assembled multiple incendiary devices akin to Molotov cocktails, then lit the wicks for the devices on fire, and threw them at the exterior of Coconut Charlie’s in an attempt to burn the structure and destroy the video surveillance system, which had captured his assault on his girlfriend the week prior.
Due to the size of the fire, several agencies responded in an attempt to control and extinguish the fire, and a firefighter sustained injuries due to the force of a backdraft that caused him to fall off a ladder. A fire scene examination was conducted, and the area of origin of the fire was determined to be the west exterior of the restaurant. Investigators reviewed the exterior camera footage from the video recording system, which remained operational after the fire, and were able to observe multiple flashes of light (at least three), followed by a sustained fire on the west exterior of the structure.
Charred melted plastic cups, which had been filled with gasoline, and a burnt cloth used as a wick material were located on the roof and exterior grounds of the building, and most were found to contain the presence of gasoline. Clemons admitted that he set the wicks on fire prior to throwing the devices on the roof. An accelerant detection K9 also alerted to the presence of gasoline on the west side of the exterior just on the other side of the fence surrounding Coconut Charlie’s. This is the area where Clemons launched the devices at Coconut Charlie’s. A short distance away, along the north side of the exterior of the property fence line, a glove was found which tested positive for the presence of an ignitable liquid and contained Clemons’ DNA.
On November 30, 2017, a federal search warrant was obtained for Clemons’ text messages on his cell phone. The contents of those messages revealed that after the assault and in the days leading up to the fire, Clemons sent multiple text messages expressing concern as to whether police would obtain the video surveillance of the assault, and what the video had captured.
Clemons faces a mandatory minimum of five years in federal prison and a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 13, 2021, at 1:30 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the Anne Arundel County Fire Department, and the Anne Arundel County Fire and Explosives Investigation Unit for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, who are prosecuting the case.
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Martinsburg man admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shane Lee Dirting, of Martinsburg West Virginia, has admitted to his role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Dirting, 54, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base.” Dirting admitted to working with others to distribute the drugs from October 2019 to April 2020 in Berkeley and Jefferson Counties.Dirting faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Mandan, ND, Man Sentenced to 4 years in Federal Prison for Bank Fraud and Interstate Transportation of Stolen LivestockRead the Press Release
Bismarck – Acting United States Attorney Nicholas W. Chase announced, on April 6, 2021, United States District Judge Daniel M. Traynor sentenced Kelly Anthony Glatt, age 39, of Mandan, ND, for the offenses of Bank Fraud and Interstate Transportation of Stolen Livestock. On October 13, 2020, after a multi-day trial, a federal jury found Glatt guilty of these offenses. The jury found Glatt not guilty of a single count of Interstate Sale of Stolen Livestock. Judge Traynor sentenced Glatt to serve 48 months’ imprisonment on the Bank Fraud charge and 36 months’ imprisonment on the Interstate Transportation of Stolen Livestock charge to run concurrent with one another; serve a three year term of supervised release on both counts to run concurrent with one another; pay $1,839,846.30 in restitution; and pay a $200 special assessment.
On February 20, 2014, Glatt, a rancher, took out a loan from a North Dakota financial institution in the amount of $1,500,000 to purchase cattle and livestock-related supplies. The financial institution obtained a security interest in the cattle, which were left in Glatt’s custody. Additionally, Glatt took custody of multiple other individuals’ cattle as either cattle caretaker, cattle manager, or cattle partner. Evidence introduced at trial demonstrated, between 2014 and 2017, Glatt took affirmative steps to hide collateral from the financial institution; hid assets from the financial institution and other victims; fraudulently filed an agricultural statutory lien in another person’s name with the intent to deprive the financial institution of future foreclosed funds; and finally, transported stolen cattle belonging to the financial institution and the other victims from North Dakota to South Dakota.
"The defendant took advantage of, and defrauded, both hard-working ranchers and a North Dakota financial institution," said Acting United States Attorney Nick Chase. "The United States Attorney's Office is committed to identifying, investigating, and prosecuting financial and agricultural based crimes."
This case was investigated by the Federal Bureau of Investigation, the North Dakota Stockmen’s Association, and the Morton County Sheriff’s Department, and was prosecuted by Assistant United States Attorneys Jonathan J. O’Konek and Eric Lundberg and Department of Justice Trial Attorney Joseph McFarlane.
This trial was completed during the COVID-19 pandemic and utilized COVID-19 safety protocols.
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Manchester Man Charged with Unlawfully Possessing FirearmsRead the Press Release
CONCORD - Raheem Taylor, 28, of Manchester, has been charged in federal court with unlawfully possessing firearms, Acting United States Attorney John J. Farley announced today.
According to court documents, Taylor was arrested on Friday following the execution of a search warrant in Manchester. He initially was charged in state court with the possession of firearms while being a convicted felon and possession of a controlled drug. Taylor has prior felony convictions that prohibit him from possessing firearms.
Taylor was taken into federal custody today and charged in a federal criminal complaint with unlawfully possessing firearms. Federal law prohibits convicted felons from possessing firearms. The complaint alleges that two handguns were seized from Taylor’s residence, including one with an extended high capacity magazine capable of holding 17 rounds of ammunition.
Taylor is scheduled to appear for a United States Magistrate Judge later today.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, New Hampshire State Police and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to 12 Years for Attempting to Purchase Chemical Weapon on the Dark WebRead the Press Release
WASHINGTON – A Missouri man was sentenced to 12 years in federal prison without parole today for attempting to purchase a chemical weapon, capable of killing hundreds of people, on the dark web with Bitcoin.
Jason William Siesser, 46, of Columbia, Mo., pleaded guilty to one count of attempting to acquire a chemical weapon and one count of aggravated identity theft on Aug. 4, 2020. According to court documents, Siesser admitted that he attempted to acquire a chemical weapon on two occasions between June 14 and Aug. 23, 2018. He provided a shipping address in the name of a juvenile, whose identity he used without authorization, to place the orders for a highly toxic chemical in amounts capable of killing many people. Siesser paid for the chemical weapon with the digital cryptocurrency known as Bitcoin.
Siesser ordered two 10 mL units of the chemical on July 4, 2018, and paid with Bitcoin. The seller did not ship the chemical weapon at that time. Siesser continued to contact the seller. On July 19, 2018, Siesser told the seller that, “I plan to use it soon after I receive it.”
Siesser ordered three 10 mL units of the chemical weapon on Aug. 5, 2018. Siesser again paid for the order with Bitcoin, the equivalent of $150, and provided a shipping address in the name of a juvenile. This quantity of the chemical weapon has the capacity to kill approximately 300 people.
A controlled delivery of a package that contained an inert substance was made to Siesser’s residence on Aug. 23, 2018. Siesser believed the package contained the chemical weapon he had ordered, signed for the package and took it inside the residence.
Law enforcement officers then executed a search warrant at Siesser’s residence. On top of a shelf in the garage, officers located the inert substance Siesser believed to be a chemical weapon. Officers also located two separate and seemingly unopened shipping boxes on the shelf next to it. They contained approximately 10 grams of cadmium arsenide, a toxic compound, which can be deadly if ingested or inhaled; approximately 100 grams of cadmium metal; and approximately 500 mL of hydrochloric acid. An invoice for these products showed they had been ordered together on March 30, 2018.
Writings located within the home articulated Siesser’s heartache, anger and resentment over a breakup, and a desire for the person who caused the heartache to die.
Supervisory Assistant U.S. Attorney Michael S. Oliver and Assistant U.S. Attorney Brian Casey prosecuted the case. The FBI with assistance from the Columbia Police Department investigated the case.
Man Facing Federal Charges for Enticement of a Minor and Possession of Child Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Derrell Lamar Hooker Orange (“Hooker Orange”) age 36, of Brandywine, Maryland, with enticement of a minor and possession of child pornography. The criminal complaint was filed on April 1, 2021 and unsealed at Hooker-Orange’s initial appearance on April 2, 2021.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police and Sheriff Michelle Cook of Clay County Sherriff’s Office.
According to the affidavit filed in support of the criminal complaint, the Clay County Sheriff’s Office (“CCSO”) of Green Cove Springs, Florida, responded to a sex offense call in which an adult female discovered sexually explicit messages on her 12-year-old daughter’s cell phone. CCSO spoke with the victim at her residence and discovered the victim had been communicating with “Lamar Thompson” of Washington, whom she believed to be a 16-year old male, from approximately July 2020 through October 2020. The victim stated she met “Thompson” on a video creation application and continued to communicate with him, primarily through text message and cellular phone calls.
Based on reports by CCSO, CCSO observed sexually explicit text messages and images on the victim’s phone. With the adult female’s consent, the cell phone was placed into evidence at the CCSO. On October 22, 2020, the Clay County State’s Attorney allegedly received information that identified Hooker Orange as the subscriber who had been communicating with the victim.
The affidavit alleges that further review of text messages exchanged between Hooker Orange (allegedly posing as Lamar Thompson, a 16-year-old male) and the victim revealed that the minor victim not only disclosed her age to Hooker Orange but also informed him that she was attending junior high school at the time. Hooker Orange’s number was allegedly saved in the victim’s phone as “Bsf Forever.” According to the affidavit, Hooker Orange sent the victim sexually explicit messages and requested that the victim send him sexually explicit images and videos of herself.
The affidavit further alleges that Hooker Orange told the victim he wanted to see her and mentioned traveling to meet the underaged victim. The victim allegedly advised Hooker Orange that she would like to see him, but he’d have to “wait a few years”.
According to the affidavit, on March 16, 2021, law enforcement executed a search warrant at Hooker Orange’s residence, where he resides with two other individuals. Law enforcement seized Hooker Orange’s tablet and cellular telephone and interviewed the other residents. The other residents allegedly advised law enforcement that Hooker Orange was constantly on the phone with individuals whom they believed to be minors. Forensic review of Hooker Orange’s devices allegedly revealed images and videos of child pornography.
If convicted, Hooker Orange faces a mandatory minimum sentence of 10 years in federal prison and maximum of life in prison for enticement of a minor and a maximum of 20 years in prison for possession of child pornography. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Hooker Orange had a detention hearing in U.S. District Court in Greenbelt on April 5, 2021 and was ordered to be released under the supervision of U.S. Pretrial Services pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police, the Prince George County Police Department and the Clay County, Florida Sheriff’s Office for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Special Assistant U.S. Attorney Craig Fansler, who are prosecuting the federal case.
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Man Facing Federal Charges for Enticement of a Minor and Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Derrell Lamar Hooker Orange (“Hooker Orange”) age 36, of Brandywine, Maryland, with enticement of a minor and possession of child pornography. The criminal complaint was filed on April 1, 2021 and unsealed at Hooker-Orange’s initial appearance on April 2, 2021
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police and Sheriff Michelle Cook of Clay County Sherriff’s Office.
According to the affidavit filed in support of the criminal complaint, the Clay County Sheriff’s Office (“CCSO”) of Green Cove Springs, Florida, responded to a sex offense call in which an adult female discovered sexually explicit messages on her 12-year-old daughter’s cell phone. CCSO spoke with the victim at her residence and discovered the victim had been communicating with “Lamar Thompson” of Washington, whom she believed to be a 16-year old male, from approximately July 2020 through October 2020. The victim stated she met “Thompson” on a video creation application and continued to communicate with him, primarily through text message and cellular phone calls.
Based on reports by CCSO, CCSO observed sexually explicit text messages and images on the victim’s phone. With the adult female’s consent, the cell phone was placed into evidence at the CCSO. On October 22, 2020, the Clay County State’s Attorney allegedly received information that identified Hooker Orange as the subscriber who had been communicating with the victim.
The affidavit alleges that further review of text messages exchanged between Hooker Orange (allegedly posing as Lamar Thompson, a 16-year-old male) and the victim revealed that the minor victim not only disclosed her age to Hooker Orange but also informed him that she was attending junior high school at the time. Hooker Orange’s number was allegedly saved in the victim’s phone as “Bsf Forever.” According to the affidavit, Hooker Orange sent the victim sexually explicit messages and requested that the victim send him sexually explicit images and videos of herself.
The affidavit further alleges that Hooker Orange told the victim he wanted to see her and mentioned traveling to meet the underaged victim. The victim allegedly advised Hooker Orange that she would like to see him, but he’d have to “wait a few years”.
According to the affidavit, on March 16, 2021, law enforcement executed a search warrant at Hooker Orange’s residence, where he resides with two other individuals. Law enforcement seized Hooker Orange’s tablet and cellular telephone and interviewed the other residents. The other residents allegedly advised law enforcement that Hooker Orange was constantly on the phone with individuals whom they believed to be minors. Forensic review of Hooker Orange’s devices allegedly revealed images and videos of child pornography.
If convicted, Hooker Orange faces a mandatory minimum sentence of 10 years in federal prison and maximum of life in prison for enticement of a minor and a maximum of 20 years in prison for possession of child pornography. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Hooker Orange had a detention hearing in U.S. District Court in Greenbelt on April 5, 2021 and was ordered to be released under the supervision of U.S. Pretrial Services pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police, the Prince George County Police Department and the Clay County, Florida Sheriff’s Office for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Special Assistant U.S. Attorney Craig Fansler, who are prosecuting the federal case.
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Local Felon Charged with Illegal Possession of a FirearmRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on a charge of violating federal firearms law, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Tyler Goodnight, age 23, as the sole defendant.
According to the Indictment, on November 27, 2020, Goodnight was found to be in possession of a firearm. Goodnight is prohibited to possess a firearm due to a previous conviction.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kanawha County Man Faces up to Life in Prison After Pleading Guilty to Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to two federal gun crimes. Tevin Williams, 27, of Charleston, pled guilty to being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on June 5, 2019, Williams was driving on Rt. 60 in Belle when he was pulled over and removed from the car by law enforcement officers. A K-9 unit alerted to the presence of drugs in the car. During a search of his car, officers located a Ruger 9mm pistol, ammunition and a small black safe. Officers also located $2,293 in U.S. currency, over 100 empty plastic baggies and approximately 93 grams of methamphetamine. Williams admitted he was carrying the firearm to protect his drugs and cash.
On November 6, 2019, Williams traveled to a home in Putnam County and knocked on the door. After being turned away at the door, Williams turned around and fired three to four shots at the residence and then drove away. Nine days later on November 15, 2019, Williams was driving in South Charleston when he was pulled over and removed from the car by law enforcement officers. At that time, he was wearing two shoulder holsters. Officers located two firearms under the front seat of the car, both of which were Hi Point 9mm pistols. Williams is prohibited from possessing firearms as a result of his 2013 first degree robbery conviction in Kanawha County Circuit Court. The pistols seized from Williams on November 15 were examined at the West Virginia State Police Laboratory and one of those pistols was identified as matching one of the shell casings recovered by law enforcement from the Putnam County residence on November 6, 2019.
Williams faces at least five years and up to life in prison when sentenced on July 8, 2021.
“Excellent work by all the law enforcement agencies involved,” said Acting United States Attorney Lisa G. Johnston. “This conviction is the result of a joint investigation conducted by the South Charleston Police Department, the Putnam County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Belle Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).”
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00038 and 20-cr-00048.
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Jury Trial in Federal Court Ends with Guilty VerdictRead the Press Release
SHREVEPORT, La. – A federal jury in the Western District of Louisiana has returned a guilty verdict against Dale Wayne Green, Jr., 39, of Shreveport, on drug trafficking and firearms charges, announced Acting United States Attorney Alexander C. Van Hook. United States District Judge Donald E. Walter presided over the trial.
After a full day of trial testimony, the jury began their deliberations yesterday afternoon and came back with a verdict finding Green guilty of being a convicted felon in possession of a firearm and possession of cocaine with intent to distribute. Evidence presented at the trial revealed that on June 11, 2019, the Shreveport/Caddo Narcotics Task Force received information that illegal narcotics were being sold at a residence on Harrison Street in Shreveport. Law enforcement agents began conducting surveillance and observed multiple vehicles parked in and around the residence, as well as suspicious activity by individuals visiting the residence.
Law enforcement approached the residence and observed Green drop an item on the ground and walk away from the area to the rear of a vehicle in the driveway. Agents later discovered the dropped item to be cocaine in a sandwich bag which contained individually wrapped packaged bags containing cocaine. Green also had a large amount of cash and car keys in his pocket that went to a car parked across the street. A K-9 officer conducted a sniff search of the vehicle and the K-9 officer alerted to the presence of narcotics. Green gave consent to search the vehicle and agents found a loaded handgun in the console. Also found in the car were numerous personal documents belonging to Green. His previous felony conviction was for manslaughter in Caddo Parish in 2002. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
Green faces up to 20 years in prison and up to a $1,000,000 fine on the drug charge, and up to 10 years in prison and a $250,000 fine on the firearm charge. Sentencing is set for August 5, 2021 at 10:30 a.m.
The ATF, Shreveport Police Department and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Mike T. Shannon prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Judge sentences Sikeston man to 144 months for distribution of methamphetamineRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr. sentenced Jimmy Warf to 144 months in prison today. The 46-year-old Sikeston, Missouri, resident pleaded guilty to one count of distribution of methamphetamine in January.
On August 18, 2020, Warf sold 55 grams of methamphetamine to a DEA confidential informant at a parking lot in Cape Girardeau, Missouri and was arrested.
This case was investigated by the Drug Enforcement Administration, SEMO Drug Task Force and Cape Girardeau Police Department. Assistant United States Attorney Tim Willis handled the prosecution.
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Houston man sent to prison for hijacking interstate freight shipmentRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Houston man has been ordered to federal prison after stealing a large load of electronics originally set for delivery to a local college, announced Acting U.S. Attorney Jennifer B. Lowery.
Maksims Klopovs pleaded guilty Jan. 4.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Klopovs to serve a 30-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard Klopovs had entered the United States less than 60 days before his arrest. However, in that short time, he had already been involved in at least three similar freight hijackings in the Houston area. As part of the scheme, Klopovs created and used at least 12 fraudulent ID cards and rented multiple storage units to store the hijacked goods until they could be sold. The court determined the value of the goods involved in the four hijackings was in excess of $400,000. In handing down the sentence, Judge Ramos noted the extent and nature of the criminal conduct in this case justified the sentence.
“This individual brazenly hijacked an interstate freight shipment of computer and electronic equipment that was destined for students at a local university,” said Assistant Special Agent in Charge Brad Scott of Homeland Security Investigations (HSI). “Using the unique investigative authorities that HSI possesses we were able to disrupt his scheme and work with prosecutors to put him in federal prison.”
On June 17, 2019, authorities suspected a shipment of approximately $100,000 worth of computers and other electronics might be stolen. They were bound for Del Mar College in Corpus Christi.
After the shipment left the warehouse in Illinois, someone had changed the delivery instructions using an online system. Rather than deliver it directly to Del Mar College, the shipping company was asked to hold the load at their Corpus Christi warehouse for pickup.
Del Mar College did not request the change.
Klopovs arrived at the warehouse driving a rented U-Haul truck. He presented a fraudulent Texas driver’s license bearing his photo, but with the name Martin Smith. He also showed what was determined to be a fraudulent Del Mar College ID card with the title of Operations Manager also bearing his photograph and with the Smith name. He also had a Del Mar College business card in the name of Martin Smith.
Authorities arrested him after he claimed the shipment and began to load the electronics into the rental truck.
Klopovs has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Health Net Federal Services Pays over $97M for Overstated Billings to the VARead the Press Release
SACRAMENTO, Calif. — Health Net Federal Services LLC has paid $97,237,391 to resolve duplicate and inflated claims submitted to the Department of Veterans Affairs, Acting U.S. Attorney Phillip A. Talbert announced.
In 2013, Health Net entered a $5.05 billion contract with the VA under the Patient-Centered Community Care program, which offered private health care to veterans when VA facilities could not do so in a timely manner. The Veterans Access, Choice and Accountability Act of 2014 expanded the services to cover veterans who waited more than 30 days for care or lived more than 40 miles away from a VA medical facility. Under this contract, Health Net served as the third-party administrator that secured private health care for veterans, reimbursed these providers for services to veterans, and in turn billed the VA for the services.
In 2017, the VA Office of Inspector General (VA OIG) audited Health Net and found evidence suggesting the company had billed the VA for duplicate claims amounting to approximately $30 million and failed to reduce billings to the VA for approximately $1 million in provider rate savings, as contractually required. The ensuing investigation confirmed the conduct, and Health Net ultimately repaid $93,682,428 in overpayments, as well as $3,554,963 in interest.
“Providers must be held to the highest standard of care and must rigorously comply with their contractual obligations,” said Acting U.S. Attorney Talbert. “This office is committed to assisting the VA and other agencies of the United States to ensure the integrity of important federal programs, such as those reimbursed by this settlement that will help our veterans.”
“The VA Office of Inspector General is strongly committed to promoting fiscal accountability throughout VA,” said VA Inspector General Michael J. Missal. “This settlement will return funds to VA programs and services that directly benefit our nation’s veterans. I applaud the teamwork and dedication that led to this significant recovery.”
This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California and the Civil Division’s Commercial Litigation Branch, with help from the Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Harrison County woman admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amber Ramos, of Hepzibah, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Ramos, also known as “Amber Finch,” 32, pleaded guilty today to one count of “Distribution of Methamphetamine.” Ramos admitted to selling methamphetamine in July 2018 in Harrison County.
Ramos is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harper Woods Man Using Prosthetic Facemasks Pleads Guilty to Wire and Identity FraudRead the Press Release
A Harper Woods man, who wore prosthetic facemasks to hide his identity, pleaded guilty today to wire fraud and identity fraud in a scheme to defraud and obtain money from the accounts of Global Payments Gaming Services Inc. (GPGS)’s VIP Preferred Program patrons, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
John Christopher Colletti, 56, entered his guilty plea before United States District Judge Linda V. Parker in United States District Court in Detroit this afternoon.
“This defendant went to extraordinary lengths to hide his identity in order to steal others identities and money,” stated Acting US Attorney Mohsin. “I commend the work of the FBI agents for tracking Colletti down and helping bring him to justice.”"John Colletti stole the identities of dozens of innocent people, dragging them all into his criminal scheme," said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “The impacts of identity theft are serious and far-reaching for victims, and the FBI will work hard to ensure anyone who engages in this type of conduct is held accountable.”
According to court records, in or around April 26, 2019, and continuing through March 12, 2020, Colletti, with the intent to defraud, unlawfully accessed accounts in the names of several individual victims using GPGS’s kiosks located within various casino properties in at least two states, including the MGM Grand in Detroit. Colletti used names, driver’s license numbers, and the last four digits of Social Security Numbers assigned to known individuals in order to access one or more account in those individuals’ names. Upon gaining access to these accounts, Colletti initiated numerous transactions, withdrawing thousands of dollars from these accounts. Colletti made these withdrawals with both the intent to defraud and knowledge of the fact that he was not entitled to the money in the victims’ accounts. Further, in making these withdrawals, Colletti attempted to disguise himself by wearing one or more full prosthetic facemasks. Colletti defrauded his victims out of approximately $125,740.00 dollars.
Colletti had in his possession pieces of personally identifiable information (PII) for approximately 300 identities, as well as several full prosthetic facemasks.
GPGS assumed the loss on behalf of its VIP Preferred Program patrons, who were the individual victims. As part of his guilty plea, Colletti will be required to pay restitution to GPGS in the full amount of $125,740.00.
Colletti faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud and a mandatory minimum sentence of 2 years imprisonment on the charge of identity fraud.
Colletti will be sentenced on July 7, 2021, at 11:00AM.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ryan Particka.
Fultondale Doctor, Demopolis Pharmacist, Tuscaloosa Sales Representative Sentenced in Health Care Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A Tuscaloosa pharmaceutical sales representative was sentenced yesterday after pleading guilty to conspiracy to commit mail fraud in a scheme designed to fraudulently bill health insurance plans, announced U.S. Attorney Prim F. Escalona, DEA Assistant Special Agent in Charge Towanda R. Thorne-James, and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Annemarie C. Axon sentenced Brett Taft, 47, of Tuscaloosa, Ala., to 12 months in prison and 6 months of home detention and ordered him to pay a fine of $1,000 and restitution of approximately $2.2 million. Taft was the owner and sole member of the sales company BTAFT Medical, LLC. He pleaded guilty to one count of conspiracy to commit mail fraud related to a June 2019 Superseding Indictment involving Paul Roberts, M.D., of Fultondale, and pharmacist Stanley Reeves of Demopolis.
“This case is another unfortunate example of some in the medical field putting greed over patients’ welfare,” said U.S. Attorney Escalona. “We thank the many medical professionals who place patient health and ethical integrity first and will continue to prosecute those who instead choose to engage in criminal conduct for financial gain.”
“The FBI and our partners will continue to work tirelessly to ensure public and private health care dollars are used as intended, to promote the health and safety of all Americans and safeguard continued access to critical health care services,” FBI SAC Sharp said.
According to his plea agreement, Taft, along with Reeves, owner of F&F Drugs in Demopolis, and Roberts, a physician and co-owner of Southeast Urgent Care in Fultondale, participated in a scheme to fraudulently bill health insurance plans for medically unnecessary compounded drugs. To induce Roberts to issue prescriptions for these medically unnecessary drugs, Taft provided Roberts with pre-written prescription forms for the compounded drug recipes. Roberts then issued the prescriptions, sometimes without patients’ knowledge, and sent them to F&F Drugs, which then filled the prescriptions and billed the cost to health insurance plans. Reeves would then pay Taft a portion of the billing proceeds from these insurance plans, with Taft using some of those proceeds to make payments to Roberts. In addition, as part of the conspiracy and to induce patients to accept these medically unnecessary drugs, F&F Drugs would waive patient co-pays in violation of the health insurance plan rules. To maximize profit from each prescription, the co-defendants agreed that F&F Drugs would automatically refill the compounded drugs that Roberts referred regardless of whether patients needed those drugs. Between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $2.2 million for medically unnecessary compounded drugs issued as part of the conspiracy.
Roberts and Reeves previously pleaded guilty and were both sentenced in September 2020. Roberts pleaded guilty to 12 counts of prescribing controlled substances without a legitimate medical purpose, two counts of health care fraud conspiracy, and two counts of participating in a health care fraud scheme. Roberts stipulated to a 72-month sentence and agreed to surrender his Alabama medical license. He also agreed to pay a fine of $100,000 and restitution of $2.2 million.
Reeves pleaded guilty to one count of conspiring to commit the above-described compounded drug health care fraud scheme. According to his plea agreement, between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $10.5 million for medically unnecessary compounded drugs issued by various doctors, including those issued under the scheme involving Taft and Roberts. Reeves received a 38-month sentence and agreed to surrender his pharmacist license to the Alabama Board of Pharmacy. He also agreed to pay a fine of $100,000, restitution of $10.5 million, and forfeiture of $900,000 with $300,000 due on the date he was sentenced.
FBI and DEA investigated the cases, which Assistant U.S. Attorneys Lloyd C. Peeples, Austin Shutt, Kristen Osborne, and former AUSA Chinelo Dike-Minor prosecuted.
Fredonia Man Going to Prison for Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nathaniel Gates, Jr, 47, of Fredonia, NY, who was convicted of possessing with intent to distribute, and distributing, 28 grams or more of crack cocaine, was sentenced to serve 84 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Seth T. Molisani and Charles E. Watkins, who handled the case, stated that in April 2015, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration began investigating the drug trafficking activities of the defendant in Chautauqua County, NY. During the investigation, investigators made three controlled purchases of narcotics from Gates. Investigators also executed a search warrant at the defendant’s Brigham Road apartment in Fredonia and recovered illegal narcotics and items commonly used in drug distribution.
The sentencing is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of the Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Four local individuals charged in separate pandemic relief fraud schemesRead the Press Release
CINCINNATI – Four local individuals have been charged federally with defrauding COVID-19 pandemic relief funding programs. In separate cases, the four are alleged to have lied about owning businesses and employing others. Some defendants allegedly applied multiple times for relief funding and some allegedly spent the funding they received on lavish personal items and vacation travel.
Kelli Prather, 48, of Cincinnati, appeared in federal court in Cincinnati this afternoon. According to court documents, she applied for six Paycheck Protection Program (PPP) loans as part of the CARES Act COVID-19 pandemic relief.
Prather allegedly purported to be the owner of six businesses – Enhanced Healthcare Solutions, Life Skills Enhancement, Prather Property Management, Reliable Ambulette Services, Rich Glo Management Services and Tots R Us. It is alleged that the bank discovered a number of errors with Prather’s loan applications and also identified that there were six different, pending applications.
According to the criminal complaint, Prather sought more than $600,000 in fraud relief and fraudulently received approximately $19,800.
She is charged with bank fraud (up to 30 years in prison), aggravated identity theft (at least two years in prison consecutive to any other sentence imposed), making false statements (up to five years in prison), making false statements in connection to credit or loan applications (up to 30 years in prison) and false representation of a social security number (up to five years in prison).
Toni Wright, 34, of Cincinnati, allegedly received $349,000 in fraudulent PPP relief loans. Court documents say she made false statements as the purported sole owner of Poshedbar (a hair and nail salon), Beautiful Beginnings Doula Service and Jerry’s Electronics.
Wright allegedly used the same Employer Identification Number for more than one of the purported businesses and listed residential addresses as the business locations. She allegedly submitted numerous applications despite being denied initially.
The criminal complaint filed against Wright claims she used the PPP funds for various personal purchases, such as to restaurants through Door Dash, retail establishments including Michael Kors, Louis Vuitton, Kay Jewelers and vacation activities like King’s Island, Luxury Rentals Miami, and American Airlines. Wright also allegedly spend more than $10,000 of relief funds at Sono Bello, a facility that advertises laser liposuction and body contouring.
Wright is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison), making false statements in connection to credit or loan applications (up to 30 years in prison) and false representation of a social security number (up to five years in prison).
Melissa McGhee, 37, of Cincinnati, was arrested last night by Sycamore Township Police officers. McGhee, also known as Melissa Batton, came to the attention of law enforcement when she allegedly lied regarding an FHA loan for a new home. Through this investigation, agents discovered McGhee had allegedly applied for seven different pandemic relief loans and received three.
Court documents specify that McGhee used the business names M&MM Realty Group and M&M Realty Group to submit the fraudulent applications.
McGhee allegedly received $186,000 in fraudulent relief funds, which she used, in part, to purchase real estate.
She is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison) and making false statements in connection to credit or loan applications (up to 30 years in prison).
Jon Alan Bader, 50, of Dayton, allegedly received more than $120,000 in fraudulent pandemic relief funds by lying on applications. Bader allegedly registered the business JB Auto Wholesale, LLC with the state of Ohio via LegalZoom in June 2020, after the cutoff eligibility date for the loans.
An affidavit filed in support of the criminal complaint says Bader spent the relief money on various food deliveries through Door Dash, transportation through Uber, and purchases that appear to be for travel in Indiana, Kentucky and Florida. Bader allegedly made purchases at various retail stores such as Puma, Lacoste and Saks, and paid for travel in Sarasota, Florida. Bank records indicate Bader was spending between $55,000 and $67,000 in the summer of 2020.
He is charged with bank fraud (up to 30 years in prison), committing fraud in connection with major disaster or emergency benefits (up to 30 years in prison), wire fraud (up to 20 years in prison), making false statements (up to five years in prison) and making false statements in connection to credit or loan applications (up to 30 years in prison).
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, Cincinnati Field Office; and Wayland Quon, Acting Special Agent-in-Charge, Social Security Administration Office of Inspector General, Chicago Field Division, announced the charges. Assistant United States Attorneys Ebunoluwa Taiwo and Anthony Springer are representing the United States in these cases. The four cases have been investigated by members of the Financial Crimes Working Group Pandemic Fraud Committee.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Latin Kings East Coast Leader Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – The former East Coast leader of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering and drug charges.
Michael Cecchetelli, a/k/a “King Merlin, 41, of Springfield, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 8, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
As stated during the plea hearing, Cecchetelli led the Latin Kings’ criminal activity in the Eastern Region and held the title of Supreme Regional Overseer for the East Coast. Cecchetelli is the conduit between each of the Eastern Region states and the Latin Kings national leadership in Chicago. In this position, thousands of Latin Kings members fell under his authority. Cecchetelli developed a leadership approach to the gang which became a model for other Latin Kings regions across the country. Cecchetelli also organized conspiracies to murder two members of the Latin Kings who accused him of cooperating with law enforcement.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Cecchetelli is the 43rd defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Ft. Bragg Private Sentenced to More Than 12 Years After Taking 12-Year-Old “Girlfriend” Across State Lines in Fake KidnappingRead the Press Release
NEW BERN, N.C. – A South Carolina man was sentenced today to 151 months in prison for transportation of a minor with intent to engage in criminal sexual activity.
According to court documents and statements made during hearings, on the morning of October 21, 2018, a New Bern woman found that her 12-year-old granddaughter was missing from the child’s bedroom. The window was open, and a hand-written ransom note demanded $20,000 for her return. Investigators found mulch from a flower bed on the granddaughter’s bed and smudges on the window but no sign of forced entry. They reviewed the granddaughter’s Facebook account and found a page that identified the defendant James Murdoch Peele as a boyfriend.
The Federal Bureau of Investigation (FBI) determined that Peele was enlisted in the US Army and stationed at Ft. Bragg. They traced him to a barracks room, where the same afternoon they found Peele together with the minor victim. A forensic examination confirmed that Peele had recently had sexual intercourse with the minor.
Law enforcement interviewed a friend of Peele’s, also a soldier stationed at Ft. Bragg. The friend described how a week before the apparent kidnapping, Peele had asked for a ride to his “girlfriend’s” house in New Bern. Peele had shown a photo of the victim and claimed that she was 18 years old. When they arrived, however, Peele instructed the friend to park at a vacant neighboring house, and Peele entered the home through a window. The friend also entered the room and became concerned about the girl’s age after noticing childlike décor, including middle school photographs and a hamster. The friend explained to investigators that he had become disgusted and left the room when Peele and the minor began kissing.
Investigators determined that on the morning of October 21, after leaving New Bern, Peele drove the minor victim to his parents’ home in South Carolina. During a brief stay, he introduced the 12-year-old to his parents as his girlfriend and claimed that she worked in a sewing shop. They stayed for less than a half-hour before Peele’s sergeant called and Peele had to return to base.
Back at Fort Bragg, Peele’s barracks roommate was present when Peele arrived with the minor shortly before noon. As the roommate later recounted to investigators, the minor stayed in the room as Peele left to meet his sergeant. Later, Peele returned and asked his roommate to turn up his music, which the roommate understood to mean that Peele planned to have sex with the girl behind a sheet that had been hung across the room for privacy. The roommate left, and the FBI arrived soon after.
During a forensic interview, the minor victim stated that she and Peele had been involved in a sexual relationship. She had told Peele her true age, and he responded that age is just a number. She admitted that she had not been kidnapped but denied coming up with the idea to stage a kidnapping.
After his arrest, Peele made a videotaped confession. He admitted to having sexual intercourse with the minor victim. He also admitted to writing the ransom note, although he stated that the victim had asked to leave with him and had come up with the idea of staging a kidnapping. Peele claimed that he believed the victim was 18 years old, but he admitted that he saw her at a sleepover with friends who looked very young, including one girl whose age he had seen to be 12 years old.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Craven County Sheriff’s Office and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jake D. Pugh and Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-0096-FL.
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Former Cold Spring Public Official and Teacher Sentenced to 5 Years in Prison for Attempted Receipt of Child Pornography from Former StudentRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CHARLES HUSTIS, a former town trustee and substitute teacher in Cold Spring, New York, was sentenced to five years in prison for attempted receipt of child pornography from a former student. CHARLES HUSTIS previously pled guilty before U.S. District Judge Cathy Seibel, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Charles Hustis used his social media account to persuade a minor victim and former student to meet with him and perform sexual acts. In doing so, Charles Hustis repeatedly solicited pornographic pictures from the victim. This predatory behavior was a betrayal of the trust that the Cold Spring community placed in Charles Hustis, both as a former teacher and as a public official. Today, he has been sentenced to federal prison. Our Office will continue to work with our law enforcement partners at all levels of government to keep our children safe.”
According to the Information, other court filings (including the complaint), and statements made during court proceedings:
Between at least on or about December 8, 2019, and December 16, 2019, HUSTIS, a former teacher and public official in Cold Spring, New York, communicated over Facebook Messenger with a 16-year-old victim (“Victim-1”). During these communications, HUSTIS sent Victim-1 sexual images, including photographs of himself, and attempted to arrange a meeting with Victim-1 with the understanding that HUSTIS and Victim-1 would perform various sexual acts. HUSTIS repeatedly solicited pornographic pictures from Victim-1 while arranging his planned meeting. HUSTIS was arrested by law enforcement officers on December 16, 2019, after he arrived at a meeting location that he had arranged with Victim-1, expecting to bring Victim-1 back to his apartment for sexual activity.
In addition to the prison term, CHARLES HUSTIS, 37, of Cold Spring, New York, was sentenced to seven years of supervised release. On November 19, 2020, HUSTIS pled guilty to one count of attempted receipt of child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and (b)(1).
Ms. Strauss praised the outstanding investigative work of the FBI, the Putnam County Sheriff’s Department, and the Cold Spring Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
Former Business Administrator at Westminster Presbyterian Church Sentenced on Tax ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court in Pittsburgh to 30 months in prison and ordered to pay restitution of $1,407,649 to the Internal Revenue Service on charges of tax fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on David Reiter, age 52, currently serving a state sentence of five to 10 years in prison. The federal sentence will be served concurrently with his state sentence.
According to the information provided to the court, beginning in and around 2011, until his termination from employment in 2018, Reiter as business administrator at Westminster Presbyterian Church located in Upper St. Clair, PA, engaged in a pattern of deception and fraud by regularly embezzling and converting to his personal use $1.2 million in funds belonging to church. The court was further informed that Reiter failed to pay over employment taxes and filed false personal income tax returns relating to the embezzlement, which materially underreported his personal income.
"David Reiter embezzled more than a million dollars of church funds and used them for his own benefit, all the while committing business and personal tax fraud," said U.S. Attorney Kaufman. "Federal tax law violations have serious consequences, which we have witnessed today."
"In his role as the Church’s Business Administrator, Mr. Reiter abused his position of power by embezzling funds that could have otherwise been used by the Church to carry out their mission", said Thomas Fattorusso, Special Agent in Charge of IRS-Criminal Investigation . "By fraudulently failing to report the embezzled funds on his personal tax returns as income, Mr. Reiter violated a fundamental rule of taxes which states that gross income means all income from whatever source derived. Mr. Reiter also committed the crime of failing to pay over the employment taxes that were withheld from the employees of the Church, which is a serious offense that results in the lack of significant tax revenue to the Unites States government. IRS-CI will continue to pursue anyone who collects employment taxes and fails to remit those taxes."
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the prosecution of David Reiter.
Florida Counseling Center Owner and Provider Convicted of Medicaid Fraud, Conspiracy, False Statements, and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, today announced the convictions of Stephanie Lynn Fleming, 42, and Helen Elizabeth Storey, 37, both of Waldorf, Maryland, and both formerly of Tallahassee, Florida. Both defendants were found guilty of health care fraud conspiracy, health care fraud, and aggravated identity theft. Fleming was also found guilty of making false statements in connection to health care matters. The convictions came yesterday after a 3-day federal bench trial that involved testimony from more than 15 witnesses and over 125 exhibits introduced into evidence.
“These convictions demonstrate that the United States Attorney’s Office is committed to aggressively and diligently prosecuting those who commit healthcare fraud,” said Acting U.S. Attorney Coody. “The concerted and cooperative effort of our federal and state law enforcement partners was critical to bringing these defendants to justice. We will continue to work toward our common goals of protecting our community members and preserving the integrity of our federally-funded healthcare programs.”
Storey owned and operated North Florida Mental Health (NFMH), a Tallahassee-based counseling center, and employed Fleming as a licensed mental health counselor. Evidence presented in court showed that between April 15, 2016 and December 31, 2017, Storey and Fleming improperly obtained, or attempted to obtain, more than $250,000 from Florida Medicaid by submitting fraudulent claims through NFMH.
“Convicted fraudsters Storey and Fleming fraudulently billed the Medicaid program for bogus claims. The pair ignored an exclusion from all federal health care programs, thus stealing from this taxpayer-funded safety net program that is designed to provide legitimate health services to vulnerable patients,” said Special Agent in Charge Omar Pérez Aybar. “Our investigators will continue to aggressively investigate such bad actors to hold them accountable and to send a warning to others tempted to loot from federal health care programs.”
Fleming, who provided psychotherapy, psychiatric diagnostic evaluations, and therapeutic behavioral services to patients of NFMH, agreed to a five-year debarment from participating in any state Medicaid program as a result of a 2016 felony conviction involving Medicaid fraud in the state of New Jersey. Evidence presented in court proved that Fleming falsely claimed on an application to become a Florida Medicaid provider that she had not been convicted of, or pled guilty or no contest to, a felony. Additional evidence demonstrated that Storey knew of Fleming’s conviction and debarment, and that Fleming was therefore ineligible to participate as a Florida Medicaid provider.
During the trial, evidence showed that Fleming caused to be submitted – and that Storey submitted – multiple fraudulent Medicare claims by means of aggravated identity theft. In doing so, some of the false Medicare claims reflected that another eligible and licensed NFMH therapist performed services that, in reality, were provided by Fleming during the period of time that she was under debarment from participation in any state Medicaid program. The court heard evidence of additional instances in which the names and personal identification information of NFMH patients, many of whom were children, were used to submit fictitious Medicare claims for services that were not performed at all.
“These convicted criminals defrauded the Florida Medicaid program out of approximately a quarter of a million dollars,” said Florida Attorney General Ashley Moody. “They fled to Maryland, but through great investigative work by my Medicaid Fraud Control Unit and collaboration with federal officials, they were brought back to Florida to answer for their crimes—and today were found guilty on a myriad of charges. I look forward to seeing this criminal duo sentenced.”
Both defendants face a maximum sentence of 20 years in prison for conspiracy to commit health care fraud and 10 years in prison for each of the health care fraud convictions. They both also face 2 years in prison as a mandatory minimum sentence, consecutive to any other sentence imposed, for each count of aggravated identity theft. Fleming’s conviction for making false statements in connection to health care matters carries a maximum sentence of 5 years in prison. Sentencing is scheduled for August 20, 2021, at 1:30 p.m. at the United States Courthouse in Tallahassee.
Assistant United States Attorney Justin M. Keen prosecuted the case, which was jointly investigated by the Department of Health and Human Services - Office of Inspector General and the Florida Attorney General Office’s Medicaid Fraud Control Unit.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Storey and FlemingFive Jackson Men Sentenced to Federal Prison for Hobbs Act RobberiesRead the Press Release
Jackson, Miss – Five Jackson men have been sentenced to federal prison by U.S. District Judge Henry T. Wingate for their roles in multiple Hobbs Act Robberies committed in the Jackson area, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Jackson Federal Bureau of Investigation.
Joshua Cowards, Christopher Delaney, Cortez Kyles, Tyreik Lackey and Marquarius Rogers were indicted by a federal grand jury on November 27, 2018 for armed robberies of three Jackson businesses. The businesses robbed by the men were Community Choice Financial, Speedee Cash, and Dollar General. All five men were detained without bond pending trial. Four pleaded guilty and one was found guilty by a jury.
On April 2, 2021, Cortez Kyles, 25, was sentenced by Judge Wingate to serve 14 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in one of the armed robberies.
On March 12, 2021, Tyreik Lackey, 24, was sentenced by Judge Wingate to serve 10 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in one of the armed robberies.
On March 12, 2021, Marquarius Rogers, 20, was sentenced by Judge Wingate to serve 17 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in one of the armed robberies.
On March 11, 2021, Christopher Delaney, 24, was sentenced by Judge Wingate to serve 23 years in federal prison, followed by 5 years of supervised release, after pleading guilty to his role in the armed robberies.
On May 11, 2020, Joshua Cowards, 29, was sentence by Judge Wingate to serve 15 years in federal prison, followed by 5 years of supervised release, after a jury found him guilty of his role in one of the armed robberies.
In addition, Judge Wingate ordered the men to pay restitution totaling more than $85,000.00.
The armed robberies, coordinated by Delaney, occurred in August and September 2018. Delaney provided transportation to each robbery and served as a look-out while monitoring police radio traffic during the robberies. While Delaney served as the look-out, others went inside of the businesses. Those who went inside of the businesses were armed and held employees at gun point. During one of the robberies, an employee was injured when dragged across the floor. In another robbery, one of the men pointed a handgun at a Jackson police officer.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry, and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Federal Jury Convicts West Texas Man of Child Pornography CrimesRead the Press Release
A federal jury has convicted a Muleshoe, Texas man of child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After approximately forty minutes of deliberation, a federal jury on Tuesday found 25-year-old Felipe Mata-Benavidez guilty of production of child pornography.
According to evidence presented at trial, Mr. Mata-Benavidez attempted to sexually assault an 11-year-old relative at her home in Muleshoe. During the assault, the victim’s mother walked in on Mr. Mata-Benavidez attempting to have sexual intercourse with minor.
The young girl’s mother stopped the assault and fled the residence with her young daughter. A short time later, a concerned neighbor notified law enforcement after hearing about the incident.
The Muleshoe Police Department interviewed Mr. Mata-Benavidez after receiving a report that he had attempted to sexually assaulted the 11-year-old girl. During an interview Mr. Mata-Benavidez, he showed detectives his cell phone, which contained his messages with the girl.
In those messages, Mr. Mata-Benavidez told the 11-year-old to send him explicit photographs of herself. When she refused, Mr. Mata-Benavidez bullied the girl until she conceded, texting Mr. Mata-Benavidez a lewd and lascivious image. He then commented saying the girl was beautiful and telling the her not to “share with anybody else… because it’s mine.” Mr. Mata-Benavidez then continued to ask for the 11-year-old to send more explicit images.
Mr. Mata-Benavidez now faces up to 30 years in federal prison. A sentencing hearing has been set for July 8, 2021.
The Federal Bureau of Investigation Lubbock Resident Agency, the Muleshoe Police Department, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Matthew McLeod prosecuted the case. U.S. District Judge James Wesley Hendrix presided over the trial.
Fayette County Resident Indicted on Drug ChargeRead the Press Release
PITTSBURGH, PA – A resident of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Kwame Eddings, 41, formerly of Republic, PA 15475, as the sole defendant.
According to Indictment, on or about March 17, 2021, Kwame Eddings possessed with the intent to distribute 28 grams or more of cocaine base and a quantity of heroin.
At each count, the law provides for a maximum total sentence of not less than five years to a maximum of 40 years in prison, a fine of not more than $5,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Export, PA Man Pleads Guilty in IRS Impersonation Fraud SchemeRead the Press Release
PITTSBURGH, PA – A resident of Westmoreland County, Pennsylvania, pleaded guilty to one count of conspiracy to commit wire fraud, Acting U.S. Attorney Stephen R. Kaufman announced today.
Michael Galanis, 32, of Export, Pennsylvania, pleaded guilty before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that from in or around March 2016 to in or around August 2017, Galanis participated in an IRS impersonation fraud conspiracy. The IRS impersonation fraud scheme involved call centers located in India that would use phone numbers to make their calls appear to originate in the United States. The calls would provide recorded information to individuals in the United States and fraudulently claim that the call was from the IRS concerning the individual’s failure to pay taxes. The call would provide a U.S.-based telephone number for the individual to call in order to resolve the matter. Calls to these U.S.-based telephone numbers would be automatically forwarded to call centers in India, and those who answered would tell callers that they owed money to the IRS and demand immediate payment via gift card or other means.
The court was further advised that Galanis was involved in activating cell phones in the United States to assist in this fraud scheme. Galanis knew that the cell phones that he programmed were used for a fraud scheme. At all times, Galanis activated these cell phones in the Western District of Pennsylvania. The government estimated that the total loss in this case is between $150,000 and $250,000.
Judge Haines scheduled sentencing for August 13, 2021. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The matter was investigated by United States Treasury Inspector General for Tax Administration, United States Department of Homeland Security, and the United States Postal Inspection Service.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
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Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national previously residing in Malden was sentenced today in federal court in Boston for passport fraud.
Jairo Antonio Feliz, 35, was sentenced by U.S. District Court Judge Douglas P. Woodlock to six months in prison and three years of supervised release. Feliz will face deportation proceedings upon completion of his sentence. In December 2020, Feliz pleaded guilty to two counts of making a false statement in a passport application.
In November 2011, Feliz applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a U.S. citizen. In October 2012, Feliz again applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a different U.S. citizen.
Acting United States Attorney Nathaniel R. Mendell and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Division made the announcement. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, and Assistant U.S. Attorney Charles Dell’Anno prosecuted the case.
Deputy constable arrested on drug and money laundering chargesRead the Press Release
HOUSTON – A Harris County deputy constable has been charged with conspiring with his girlfriend to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a three-count indictment April 1 against Alexsander S. Reyes, 47, and his girlfriend, Priscilla Yvette Cervantes, 44, both of Huffman. They were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Andrew M. Edison tomorrow at 2 p.m.
The indictment alleges Reyes laundered what he believed was $350,000 in drug proceeds over a four-month-period. At the time of the offense, Reyes was a deputy constable with Harris County Precinct 1 Constable’s Office.
Reyes and his girlfriend are charged with one count of conspiracy to possess with the intent to distribute cocaine. If convicted, they face a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine. Reyes also faces up to 20 years if convicted of either of the two counts of money laundering.
The FBI conducted the investigation with Harris County Constable Precinct 1 as part of the FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Dajuan Williams and Multiple Others Charged in Nationwide Drug and Money Laundering ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on December 3, 2020, a federal grand jury returned a sixteen-count indictment charging (1) eight people with conspiracy to distribute controlled substances between September 2019 and November 2020 and (2) five people with conspiracy to launder monetary instruments. Dajuan Williams, 28, of Detroit, Michigan, is the lead defendant in the indictment. As of April 6, 2021, seven of the eight charged individuals have been arraigned in federal district court in Vermont.
In the drug conspiracy, in addition to Dajuan Williams, the government charged Mohamed Luhizo, 23; Jaylinn Lenoir, 22; Stephen Alexander, 31; Rendell Perkins, 21; Jessica Elwell, 30; Juwon Robinson, 26; and another defendant who remains a fugitive. In the money laundering conspiracy, the government charged Williams, Elwell, Luhizo, Alexander, and another defendant who remains a fugitive. The indictment also contains two forfeiture notices – one associated with the drug charges and one associated with the money laundering charges.
According to Court records, Williams—who is also known by a variety of aliases, including “D,” “Detroit,” “Big Bro,” “Corn,” and “Sosa” — supervised the distribution of controlled substances to various locations in Vermont, North Dakota, Montana, and elsewhere. Williams and others under Williams’s supervision distributed a variety of controlled substances, including dangerous opiates, as well as highly addictive stimulants such as cocaine base and methamphetamine. Some of the drugs involved were fentanyl pills created to resemble prescription opiate medications.
Williams also supervised the laundering of drug proceeds via cash deposits into bank accounts followed by the transfer of proceeds using a variety of methods, including mobile payment services such as Cash App, Zelle, and Venmo. In addition, Williams laundered drug proceeds through the purchase of numerous luxury vehicles.
Williams was arrested on January 13, 2021 in Los Angeles, California at his residence. On the same day, law enforcement agents executed search warrants at another residence in Los Angeles and a storage locker associated with Williams’s drug trafficking organization. During the searches, agents located an assault rifle and approximately two pounds of methamphetamine. Law enforcement also arrested the following defendants on January 13, 2021 – Luhizo and Robinson in Vermont; Lenoir in Los Angeles, California; Alexander in Gary, Indiana; Elwell in Owl’s Head, Maine; and Perkins in Grand Rapids, Michigan.
In addition to the drug conspiracy charges, defendants Mohamed Luhizo, Jaylinn Lenoir, Stephen Alexander, Rendell Perkins, and Juwon Robinson have been charged with distributing controlled substances, including fentanyl, cocaine base, and cocaine all in violation of the Controlled Substances Act. In addition to the money laundering conspiracy charge, the government has charged Williams with three counts of money laundering based on his purchase of a black 2016 Maserati Ghibli; a white 2017 Audi A7; and a grey 2017 BMW X6. Alexander has also been charged with one count of money laundering.The United States Attorney emphasizes that the charges in the indictment are merely an accusation, and that each defendant is presumed innocent unless and until proven guilty. Williams, Alexander, and the fugitive defendant all face a five-year mandatory minimum sentence based on the drug conspiracy charge. The actual sentence for each defendant, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
This indictment follows a twelve-month investigation conducted by state and federal agencies which was led by Homeland Security Investigations. HSI was assisted in this investigation by agents from IRS-Criminal Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, troopers from the Vermont State Police Drug Task Force, Burlington Police Department, and South Burlington Police Department. The coordinated law enforcement effort focusing on Williams and his drug trafficking organization was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Acting United States Attorney Jonathan Ophardt commended the concerted efforts of law enforcement throughout the year-long transcontinental investigation. “Astounding profits from illicit drug trafficking funneled through this expansive drug trafficking organization. While we work to reduce demand for illicit drugs through prevention and treatment efforts, federal authorities will continue to pursue those who profit from the peddling of poison in our communities.”
“Homeland Security Investigations is pleased that Dajuan Williams and his codefendants will face justice in Vermont,” stated acting Special Agent in Charge William Walker of the Homeland Security Investigations Boston Office. “As referenced in this press release, a committed effort by HSI and our law enforcement partners has removed dangerous narcotics traffickers from communities not only in Vermont but across the country.”
The United States is represented in this matter by Assistant U.S. Attorneys John Boscia and Nikolas Kerest. Robert Katims represents Dajuan Williams. Ernest Allen represents Juwon Robinson. Richard Bothfeld represents Mohamed Luhizo. Jordana Levine represents Jaylinn Lenoir. David Sleigh represents Jessica Elwell. Robert Behrens represents Rendell Perkins. Kevin Henry represents Stephen Alexander.
Charleston Man Sentenced to Five Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
CHARLESTON, W.Va. – Jawhar Baruti Jones, 41, of Charleston, was sentenced to 60 months in prison to be followed by four years of supervised release for distribution of methamphetamine. Jones pleaded guilty to the charge in January 2021.
According to the plea agreement and statements made in court, Jones sold methamphetamine to a confidential informant in Charleston on three separate occasions in May 2017. In total, Jones distributed approximately 161 grams of 98% pure methamphetamine during the investigation. A search warrant was executed at Jones’ residence shortly after the third transaction and law enforcement officers found several bills of United States currency with serial numbers matching those previously utilized by the confidential informant to purchase methamphetamine from Jones.
The Drug Enforcement Administration (DEA) conducted the investigation with the assistance of the West Virginia State Police. Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00070.
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Bristol, Virginia Woman Sentenced on Conspiracy to Defraud ChargesRead the Press Release
ABINGDON, Va. – Kathleen Littleford, a Bristol, Virginia, woman who fraudulently opened several bank accounts, deposited counterfeit checks, and shipped large quantities of cash to various individuals across the country in a scam involving a man with whom she was involved in an online relationship, was sentenced today in U.S. District Court here to three years’ probation, four months of which must be spent in home confinement, Acting United States Attorney Daniel P. Bubar announced today.
Littleford, 77, previously pleaded guilty to one count of conspiracy to execute a scheme to defraud financial institutions to obtain money by false pretenses.
According to court documents, beginning in 2018, Littleford opened a series of bank accounts for the purpose of depositing counterfeit checks and receiving fraudulent transfers of funds from other banking institutions. She did so to assist a man she met online calling himself Frank Peterson. Beginning with his introduction and continuing to the present day, Littleford engaged in an amorous relationship with “Peterson”, engaging in frequent emailing, text messaging, Facebook messaging, and phone call communications.
“Peterson” made representations to Littleford over the course of their relationship that he made a lot of money in a trade deal in Dubai, that those funds were encumbered by the IRS due to taxes he owed, that he had a lot of money tied up in stocks, and that he needed Littleford’s help receiving funds from banking institutions because he could not transfer money himself, due to the IRS claims on his accounts.
Littleford admitted today that premised on Peterson’s representations and enticed by a reciprocal love and devotion he showed her, Littleford undertook extraordinary measures to comply with Peterson’s fraudulent financial requests. Littleford knew what she was doing was wrong, but knowingly and willfully engaged in the conduct anyway.
Over the course of the scheme, Littleford opened accounts with at least five local banks and fraudulently received more than $190,000 in funds to which she was not entitled.
The investigation of the case was conducted by the Internal Revenue Service and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.
Box Elder man sentenced to prison for distributing meth to minorRead the Press Release
GREAT FALLS – A Box Elder man who admitted providing methamphetamine to a minor girl was sentenced today to 51 months in prison and to six years of supervised release, Acting U.S. Attorney Leif Johnson said.
James Dean Stump, 34, pleaded guilty on Dec. 8, 2020 to possession with intent to distribute meth to a person under 21.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris ordered Stump detained.
In court documents filed in the case, the government alleged that from about July 2018 to July 2020 Stump provided a minor girl, who was under the age of 21 and identified as Jane Doe, with methamphetamine. Jane Doe tested positive for meth and said she had received the drug from Stump.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI, Chippewa Cree Law Enforcement Services and Hill County Sheriff’s Office.
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Beverlywood Man Arrested for Allegedly Bilking Investors by Falsely Claiming to License Latin American Film Rights to Netflix and HBORead the Press Release
LOS ANGELES – A Beverlywood man was arrested this morning on a federal criminal complaint alleging that victims put $227 million – investment principal that has yet to be repaid – into a scheme based on false claims their money would be used to acquire licensing rights to films that HBO and Netflix had agreed to distribute abroad, particularly in Latin America.
Zachary Joseph Horwitz, 34, who has used the screen name “Zach Avery,” was taken into custody by special agents with the FBI. The criminal complaint was unsealed during Horwitz’s initial appearance this afternoon in United States District Court.
The criminal complaint filed Monday charges Horwitz with wire fraud, a crime that carries a statutory maximum penalty of 20 years in prison.
According to the affidavit in support of the complaint, over the course of about five years, Horwitz solicited investors to invest in his company – 1inMM Capital LLC – which he claimed would use the funds to purchase regional distribution rights to films and then license the rights to online platforms such as Netflix and HBO. Horwitz provided promotional materials to investors that claimed 1inMM Capital offered “safe” investments because “we receive confirmation from each of our outputs indicating their desire to acquire the rights to any title we purchase PRIOR to us releasing funds for the film,” according to the affidavit.
However, instead of using the funds to acquire films and forge distribution deals, Horwitz allegedly operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund his own lifestyle, including the purchase of his $6 million Beverlywood residence.
The scheme allegedly began in 2015, when investment firms began entering into a series of 6-month or 12-month promissory notes with 1inMM Capital based on Horwitz’s statements. The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film. To convince investors he was legitimate, the affidavit states, Horwitz provided investors with fake license agreements, as well as fake distribution agreements with Netflix and HBO, all of which contained forged or fictional signatures. Despite Horwitz’s claim of “solid relationships” with online platforms, representatives for Netflix and HBO have denied that their companies engaged in any business with Horwitz or 1inMM Capital, the affidavit states.
Investors started to complain after 1inMM Capital began defaulting on notes at various times in 2019, the affidavit states. To prolong the scheme in the wake of mounting defaults, Horwitz provided excuses that were purportedly given by Netflix and HBO, forwarding to investors spoofed correspondence with Netflix and HBO in which Horwitz again fraudulently used the identities of Netflix or HBO employees.
According to the affidavit, private investment firms have transferred approximately $227 million to 1inMM Capital pursuant to promissory notes since late 2018. Horwitz, through 1inMM Capital, allegedly has defaulted on all these underlying notes.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
During this afternoon’s initial appearance, a United States Magistrate Judge set Horwitz’s bond at $1 million, but he will not be released from custody until the bond is approved. An arraignment in this matter was scheduled for May 13.
The FBI is investigating this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
This case is being prosecuted by Assistant United States Attorneys Alexander B. Schwab and David H. Chao of the Major Frauds Section.