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Thursday 1 April 2021
Fort Wayne Man Sentenced to 141 Months in PrisonRead the Press Release
FORT WAYNE—Paul Carter, age 45, of Fort Wayne, Indiana, was sentenced by United States District Judge Holly A. Brady after his plea of guilty to bank robbery and brandishing a firearm during a crime of violence, announced Acting U.S. Attorney Gary T. Bell.
Carter was sentenced to a total of 141 months in prison, followed by a total of 2 years of supervised release.
According to documents in this case, Paul Carter, wearing an orange traffic vest and mask, and armed with a black handgun, robbed the Three Rivers Federal Credit Union on East State Boulevard in Fort Wayne on the morning of March 13, 2020. After entering the credit union, Carter approached a teller, pointed the handgun at her, and demanded money. After getting money from the teller, Carter fled the credit union and ran down the alley adjacent to the credit union where Roland Ellington was waiting for him in his van. The pair then left the area.
Law enforcement soon located the getaway van being driven by Ellington. Ellington, however, did not stop when he saw police officers behind him with their lights and sirens on. Instead, he and Carter led officers on a chase that ultimately ended in front of Ellington’s mother’s house. After the van came to a stop, Ellington and Carter bailed out of the minivan and ran in opposite directions. Carter was located soon after in the backyard of a nearby residence and taken into custody. A search produced a plastic bag inside of an outdoor grill that was located next to Carter. Inside the plastic bag was a brown baseball hat, a reflective orange vest, sunglasses, an orange balaclava-style mask, loose U.S. currency, and a teller strap from the credit union. A Fort Wayne Police Department officer retraced the route that Carter took during the foot pursuit and located a loaded .380 caliber handgun approximately 50 feet from where Carter was apprehended. Ellington was also apprehended minutes later as he tried to kick in the back door of his mother’s house.
This case was investigated by the Federal Bureau of Investigation; the Indiana State Police Organized Crime and Corruption Unit; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
Fort Myers Correctional Officer Arrested in Connection with Plan to Smuggle Drugs into PrisonRead the Press Release
Fort Myers, Florida – Acting United States Attorney Karin Hoppmann announces the filing of a criminal complaint charging Leslie Spencer (48, Port Charlotte) with attempted possession with the intent to distribute controlled substances. If convicted, Spencer faces a maximum penalty of 20 years in federal prison.
According to the complaint, Spencer worked as a correctional officer at the Charlotte Correctional Institution’s offsite work camp located in Fort Myers. In March 2021, Spencer agreed to smuggle three ounces of methamphetamine, three ounces of MDMA, a small amount of synthetic marijuana, and two cellphones into the prison and provide it to an inmate in exchange for a payment of $400.
On March 31, 2021, shortly before his shift was to begin, Spencer met with an undercover employee of the FBI in the parking lot of a retail store located on Dr. Martin Luther King, Jr. Boulevard in Fort Myers. There, the undercover employee provided Spencer with sham drugs, two cellphones, and $400 in cash. Upon leaving the store, Spencer was arrested.
A complaint is merely a charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Michael V. Leeman.
Former Teacher's Aide Sentenced on Child Pornography Charges After Child Sex StingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christian Michael Stutes, 25, of Rochester, NY, who was convicted of receipt and distribution of child pornography, was sentenced to serve 78 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between April 12 and December 13, 2019, the defendant engaged in sexually explicit conversations via text message with an individual he believed to be the father of a 10-year-old male. The individual was actually an undercover FBI agent. During their conversations, Stutes discussed paying $150 to have sex with the 10-year-old male, and on December 13, 2019, the defendant was arrested after he went to Brighton in order to have sex with the child. In addition, the defendant knowingly received and distributed images of child pornography. On the date of his arrest, Stutes possessed approximately 61 videos and 450 images of child pornography. Some of the images included prepubescent minors, as well depictions of violence.
At the time of his arrest, the defendant was employed as a teacher’s aide at a local childcare facility and was previously employed at various children’s camps.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Former Member of Fitchburg Latin Kings Chapter Sentenced for Drug Distribution ChargesRead the Press Release
BOSTON – A former member of the Fitchburg Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on drug distribution charges.
Dairon Rivera, a/k/a “King Mafia,” 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years in prison and three years of supervised release. In December 2020, Rivera pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl.
Rivera admitted to selling over 40 grams of fentanyl to a cooperating witness in a series of audio/video recorded sales that took place between April and December of 2017.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. 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.
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. Rivera is the 22nd defendant sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction 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 Graber of Mendell’s Criminal Division prosecuted the case.
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.
This case 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.
Former Massachusetts Man Who Was Granted Compassionate Release Returned to PrisonRead the Press Release
CONCORD – Andrew Dufresne, 49, previously of Gardner, Massachusetts pleaded guilty in federal court to several violations of his term of special supervised release on Wednesday, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Dufresne had been incarcerated after pleading guilty to the April 2014 robbery of a bank in Manchester, New Hampshire. In October 2020, the Court granted his request for compassionate release as result of the COVID-19 pandemic. As a result, he was released from federal custody in advance of his original August 2023 release date and placed on special supervised release.
In a court proceeding on Wednesday, Dufresne admitted that he committed six violations of his conditions of special supervised release between January 3, 2021, and February 20, 2021. He was sentenced to 24 months in federal prison to be followed by an additional three years of supervised release.
“During the pandemic, many convicted criminals have been granted compassionate release from prison based upon health concerns,” said Acting U.S. Attorney Farley. “While compassionate release can be appropriate in some circumstances, it is imperative that prisoners who are granted the benefit of compassionate release comply with their release conditions. As this case demonstrates, those who are unable to comply with their release conditions will find themselves back in federal prison.”
The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Five D.C. and Maryland Men Facing Federal Indictment for Conspiracy to Kidnap at Gunpoint a Victim They Met at a Maryland CasinoRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment late yesterday charging five men with conspiring to commit a kidnapping, in connection with an incident on February 3, 2021. The defendants charged in the indictment are:
Darius Lawrence Young, a/k/a “Mup,” age 28, of Washington, D.C.;
Christopher Allen Young, a/k/a “40,” age 26, of Washington, D.C.;
Anthony Erik Hebron, a/k/a “Pain,” age 28, of Washington, D.C.;
Tray David Sherman, a/k/a “Racks,” and “Fat Det,” age 26, of Germantown, MD; and
Lamar Jamal Perkins, a/k/a “Lou,” age 27, of Washington, D.C.Christopher Young and Tray Sherman were arrested on March 31, 2021 on a criminal complaint filed on March 30, 2021 for the same charge. Darius Young was already in custody on a related charge. Hebron and Perkins are fugitives.
The federal charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment and the affidavit filed in support of the previous criminal complaint, on February 3, 2021, the five defendants conspired to kidnap at gunpoint an individual they had met at the MGM Grand Hotel & Casino in National Harbor, Maryland. As detailed in the affidavit, Sherman and Hebron were seen on surveillance footage leaving the MGM Grand Hotel & Casino in National Harbor, Maryland, with the victim. The three men then allegedly drove to Washington, D.C. in Sherman’s vehicle and the victim can be seen in surveillance footage getting out of the car and meeting with an unknown male. The victim and the man appear to give each other something and the victim then gets back in Sherman’s car and they drive away from the area.
A short time later, Hebron allegedly called C. Young. A minute after that, C. Young called D. Young and allegedly told him about an opportunity to participate in the kidnapping and robbery of a victim who had already been picked up by Hebron and Sherman. Perkins allegedly served as a lookout for the Youngs, while they held the victim at a location near the 600 block of 46th Place SE in Washington, D.C. In the meantime, Hebron and Sherman allegedly returned to the MGM Grand and were observed on surveillance footage appearing to enter the victim’s hotel room. As detailed in the affidavit, Sherman, wearing a backpack, and Hebron, pulling a roller suitcase behind him, appeared to exit from the victim’s hotel room and walk down the hotel hallway. When Sherman and Hebron were observed in the same hallway prior to entering the hotel room, they did not have a backpack or roller suitcase in their possession.
According to the affidavit, once the robbery was completed, officers saw C. Young and D. Young exiting the tree line directly behind the location where the victim was allegedly held and returning to their vehicle. Law enforcement also located the victim in the 500 block of 46th Place SE, with blood running down the front of his face from the top of his head, a cut on his mouth and eye, and a broken and swollen nose.
Court documents allege that the victim was kidnapped at gunpoint, then beaten and threatened to obtain information regarding the code to the safe in his hotel room. During the abduction, the defendants allegedly stole the victim’s hotel key, watch, wallet, identification, phone, and cocaine that the victim had purchased during the stop in Washington, D.C. In addition, the robbers allegedly took approximately $6,000 in cash, approximately $1,500 to $2,500 in poker chips, marijuana, an Xbox, a backpack, and a suitcase from the victim’s hotel room. The kidnappers also allegedly pointed a gun at the victim, placed a gun in the victim’s mouth, hit the victim in the face and head with a gun, and threatened to kill the victim’s family members if the victim contacted law enforcement.
If convicted, the defendants each face a maximum sentence of life in federal prison for conspiracy to commit kidnapping. 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. At t initial appearances yesterday in U.S. District Court in Greenbelt, U.S. Magistrate Judge Gina L. Simms ordered that Christopher Young and Sherman be detained pending detention hearings, which are scheduled for April 2, 2021. Darius Young is detained on a related charge and will have his initial appearance at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the FBI Washington and Baltimore Field Offices for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Jeffrey J. Izant, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal Drug Task Force Targets Southern California Ring that Distributed Fentanyl and Other Dangerous Narcotics Across U.S.Read the Press Release
LOS ANGELES – Members of the Los Angeles Strike Force this morning arrested eight defendants named in a federal grand jury indictment that alleges a drug trafficking organization operating in Los Angeles and Riverside counties distributed large quantities of methamphetamine, heroin, fentanyl and other narcotics across the United States.
The defendants arrested today – and nine others who are still being sought by authorities – are charged in a 20-count indictment that outlines an 18-month investigation that led to multiple seizures of narcotics, firearms and approximately $1.5 million in drug proceeds.
The indictment alleges that the drug ring was headed by Rigoberto Sanchez Martinez, 36, of Perris, who obtained wholesale quantities of narcotics, oversaw their storage, and coordinated distribution of the drugs to locations that included the states of Washington and New York. Martinez was one of the eight defendants arrested this morning.
The first major seizure in the investigation, according to the indictment, was on May 25, 2018, when authorities recovered approximately 54 kilograms of methamphetamine, nearly a kilogram of cocaine, and more than 25 kilograms of marijuana from a “stash house” near Whittier High School that was maintained by defendants Rogelio Barajas, 39, who is a fugitive, and Irene Equigua, 40, who was arrested this morning. Some of the narcotics seized by investigators were stored in coolers that had been buried in the backyard of the residence.
On the same day law enforcement seized the narcotics in Whittier, Martinez called the operator of another stash house and instructed him to take narcotics and drug proceeds and “wrap them and cover them with items such as Vicks VapoRub, coffee, pepper, and powdered soap, dig a deep hole, and bury the drugs in the ground,” the indictment alleges.
During the following year, investigators made several other seizures, including just over $240,000 in cash and numerous firearms seized from a drug courier returning from a trip to Washington; $1,041,970 in cash recovered from a residence in Long Beach; and $118,800 in cash seized from a drug courier who had travelled from New York with the intent to purchase five kilograms of cocaine from Martinez, the indictment states.
Authorities made additional seizures of narcotics that the indictment directly links to Martinez. On May 28, 2019, authorities seized 3.1 kilograms of methamphetamine, nearly 21 kilograms of cocaine, nearly 10 kilograms of fentanyl, and nearly 9 kilograms of heroin from a storage facility in Fontana, the indictment states. And, on September 13, 2019, at another stash house that Martinez had rented in Whitter, law enforcement seized more than 13 kilograms of methamphetamine and approximately $31,000 in cash.
The eight defendants arrested today are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The 17 defendants named in the indictment are charged in various counts in the indictment. Each defendant is charged in court one, which alleges a conspiracy to distribute and possess with intent to distribute controlled substances. That narcotics conspiracy charge carries a mandatory minimum sentence of 10 years in federal prison and potential sentence of life without parole.
This case is being investigated by the Los Angeles Strike Force, which was formed in 2014 to target Mexican drug cartels that use the Los Angeles metropolitan region as a primary hub for the distribution of narcotics across the United States. The goals of the Strike Force are to target high-level narcotics traffickers, disrupt and dismantle the cartels’ narcotics trafficking and related money laundering activities, and arrest and prosecute major drug traffickers.
A number of agencies provided substantial assistance to the Strike Force, including the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Marshals Service, U.S. Customs and Border Protection, Homeland Security Investigations, the United States Postal Inspection Service, the United States Coast Guard Investigative Service, and IRS Criminal Investigation. Local law enforcement agencies participating in the investigation included the Pasadena Police Department, the Whittier Police Department, the Torrance Police Department, the Fontana Police Department, the South Gate Police Department, the San Bernardino Police Department, the Downey Police Department, the Ontario Police Department, the Los Angeles Police Department, the Seal Beach Police Department, the Irvine Police Department, the Bakersfield Police Department, the Orange County Sheriff’s Department, the Riverside County Sheriff’s Department, the California Highway Patrol, the New York Police Department, the Spokane (Washington) Police Department, and the Oregon State Police.
This matter is being prosecuted by Assistant United States Attorneys Lindsay M. Bailey and Shawn Nelson of the International Narcotics, Money Laundering, and Racketeering Section, which is headed by AUSA Nelson.
Federal Court Enjoins Dallas Area Tax Preparer from Preparing Tax ReturnsRead the Press Release
A federal court in the Northern District of Texas, Dallas Division, has permanently enjoined a Dallas-area tax return preparer from preparing federal income tax returns for others pursuant to a stipulated permanent injunction.
The civil complaint filed in the case alleged that Keysha Briseño continually and repeatedly included false business losses and fabricated business expenses on some of her clients’ returns. According to the complaint, she and her spouse allegedly own and operate a tax preparation business known under the names Tax Genius LLC; Tax Genie; and K&J Tax Service. The complaint alleged that Briseño controls Tax Genius and has prepared over 4,200 tax returns between 2017 through 2019, more than 25% of which contained fabricated business losses. The complaint further alleged that after the IRS revoked her federal return preparer identification in 2012, Briseño continued to prepare tax returns using her sister’s preparer identification. According to the complaint, Briseño’s fraudulent return preparation activities have caused significant harm to her customers and resulted in millions of dollars in tax losses to the United States.
Briseño consented to the entry of the injunction, which permanently bars her from acting as a federal tax preparer either as herself or doing business as Tax Genius, Tax Genie, or K&J Tax Service. The injunction further bars her from assisting or advising anyone in connection with any tax matter and from having an ownership interest or working for any other entity that prepares tax returns or represents clients before the IRS.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Family members arrested for sex traffickingRead the Press Release
HOUSTON – Four Houston-area residents have been charged with sex trafficking and conspiracy to do so, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Botello, 54, her son - Edgar Botello, 28, her nephew - Arian Botello, 23 and her daughter - Yudy Lucatero, 31, are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy at 2 p.m. tomorrow.
The criminal complaint, filed March 30, alleges that from 2007 to 2020, the family members coerced waitresses working at the Houston bar Puerto Alegre to engage in commercial sex acts. The victims allegedly included adults and at least one minor.
The charges allege Maria Botello coordinated “dates” with clients who paid $70 for every 15 minutes with the girls. Edgar and Arian Botello were the enforcers who used weapons, threats and intimidation to keep the victims compliant, according to the complaint. The investigation also revealed Lucatero and Maria Botello discussed the rules and procedures in relation to the sex trafficking.
Authorities ultimately identified another victim who was brought to the United States specifically to work at Puerto Alegre, according to the allegations. While there, she was allegedly forced to engage in commercial sex. The charges allege she was only 17 at the time.
If convicted, the family members each face a minimum of 10 years and up to life in federal prison.
The Texas Alcoholic Beverage Commission (TABC) initiated the investigation with the assistance of the Houston Police Department (HPD) and Homeland Security Investigations (HSI).
Public cooperation is critical in the successful investigation of suspected human trafficking. Anyone victimized by suspected traffickers, or who has information about potential victims, may contact TABC’s Victims Services office at 1-713-494-5869 to make a report. Spanish speakers may contact HSI at 1-866-347-2423.
TABC, HPD and HSI are part of the Human Trafficking Rescue Alliance (HTRA) along with the FBI, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri Zack is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Ex-con who helped destroy evidence in murder investigation sentenced to 10 years in federal prisonRead the Press Release
SAVANNAH, GA: A former federal prison inmate has been sentenced to another prison term for helping destroy evidence in the murder of the wife of a Fort Stewart soldier.
Devin Ryan, 30, of Hardeeville, S.C., was sentenced to 120 months in prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Use of Fire in Commission of a Federal Felony, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Ryan will be required to pay $26,475.16 in restitution, and after completion of his prison term, he must serve three years of supervised release.
There is no parole in the federal system.
“Devin Ryan helped a cold-blooded murderer destroy evidence in a homicide investigation – and committed the heinous crime while on supervised release from a previous felony conviction,” said Acting U.S. Attorney Estes. “Our communities are safer with him and his co-defendant locked away.”
After months of lying to investigators in an attempt to hide his involvement in the case, Ryan eventually admitted that he assisted Stafon Jamar Davis, 28, of Savannah, in destroying a 2018 Honda Accord. The vehicle belonged to Abree Boykin, 24, a resident of post housing at Fort Stewart Army Reservation and the wife of a deployed U.S. Army soldier.
Davis, who is serving a 700-month prison sentence after pleading guilty to Premeditated Murder and to Possession of a Firearm by a Convicted Felon, shot Boykin twice as she slept in her apartment on July 9, 2018. To destroy evidence in the case, he enlisted the help of Ryan, whom he had met months earlier while the two were serving prison terms. A few hours after the murder, the two doused the vehicle with gasoline and set it on fire in a remote area of Hardeeville, S.C. The car exploded, and the burned vehicle later was hauled to a salvage yard and ultimately scrapped before investigators could track it down.
“Ryan’s sentence brings to an end a tragic story of cold-blooded murder and an attempted cover-up of a crime by two convicted felons,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Ryan joins his partner in the crime back in prison thanks to a determined investigation by the FBI, Army Criminal Investigation Command and the U.S. Attorney’s Office Southern District of Georgia.”
The case was investigated by the FBI and the Army Criminal Investigation Command, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard, and Middle District of Georgia Assistant U.S. Attorney Katelyn Semales.
Erie Man Indicted on Drug ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Steven Lamont Spearman, 52, as the sole defendant.
According to the Indictment presented to the court, on or about July 14, 2017, Spearman distributed more than twenty-eight grams of a mixture and substance containing a detectable amount of cocaine base.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, 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.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Erie Man Charged with Methamphetamine DistributionRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Marcus Dwayne Thompson, 34, as the sole defendant.
According to the Indictment presented to the court, on or about December 11, 2019, Thompson distributed more than fifty grams of a mixture and substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, 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.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Crowley Man Sentenced on Drug Trafficking ChargesRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Alex Simien, Jr., 42, of Crowley, Louisiana, was sentenced by United States District Judge Michael J. Juneau to 135 months (11 years, 3 months) in prison, followed by 4 years of supervised release, for possession with intent to distribute methamphetamine.
Simien was indicted by a federal grand jury on February 20, 2020 for possession with intent to distribute controlled substances. He pleaded guilty to the charge in U.S. District Court on October 23, 2020. Evidence introduced at the hearing revealed that law enforcement agents with the Drug Enforcement Administration (“DEA”) began an investigation into distribution of the dangerous drug, crystal methamphetamine, in the Acadiana area. During their investigation, DEA agents determined that Simien was a source of supply for crystal methamphetamine in the area.
On April 27, 2019, officers from the Crowley Police Department responded to a disturbance call on North Avenue. During the call, law enforcement officers cleared a bedroom and found a male subject laying on the floor with his hands out under the bed. Officers ordered the male to stay on the ground and while conducting a pat down of Simien’s outer clothing, the officer saw the handle of a pistol where Simien’s hands were previously located. The officer secured the weapon and also found an open black bag under the bed and observed a large amount of a white crystalline substance, consistent with methamphetamine and seized the narcotics. A laboratory analysis of the white crystalline substance confirmed that it was methamphetamine.
The DEA and Crowley Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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Court Authorizes Service of John Doe Summons Seeking Identities of U.S. Taxpayers Who Have Used CryptocurrencyRead the Press Release
A federal court in the District of Massachusetts entered an order today authorizing the IRS to serve a John Doe summons on Circle Internet Financial Inc., or its predecessors, subsidiaries, divisions, and affiliates, including Poloniex LLC (collectively “Circle”), seeking information about U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency during the years 2016 to 2020. The IRS is seeking the records of Americans who engaged in business with or through Circle, a digital currency exchanger headquartered in Boston.
“Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “The Department of Justice will continue to work with the IRS to ensure that cryptocurrency owners are paying their fair share of taxes.”
“Tools like the John Doe summons authorized today send the clear message to U.S. taxpayers that the IRS is working to ensure that they are fully compliant in their use of virtual currency,” said IRS Commissioner Chuck Rettig. “The John Doe summons is a step to enable the IRS to uncover those who are failing to properly report their virtual currency transactions. We will enforce the law where we find systemic noncompliance or fraud.”
Cryptocurrency, as generally defined, is a digital representation of value. Because transactions in cryptocurrencies can be difficult to trace and have an inherently pseudo-anonymous aspect, taxpayers may be using them to hide taxable income from the IRS. In the court’s order, U.S. Judge Richard G. Stearns found that there is a reasonable basis for believing that cryptocurrency users may have failed to comply with federal tax laws.
The court’s order grants the IRS permission to serve what is known as a “John Doe” summons on Circle. The United States’ petition does not allege that Circle has engaged in any wrongdoing in connection with its digital currency exchange business. Rather, according to the court’s order, the summons seeks information related to the IRS’s “investigation of an ascertainable group or class of persons” that the IRS has reasonable basis to believe “may have failed to comply with any provision of any internal revenue laws[.]” According to the copy of the summons filed with the petition, the IRS is requesting that Circle produce records identifying the U.S. taxpayers described above, along with other documents relating to their cryptocurrency transactions.
The IRS issued guidance regarding the tax treatment of virtual currencies in IRS Notice 2014-21, which provides that virtual currencies that can be converted into traditional currency are property for tax purposes. The guidance explains that receipt of virtual currency as payment for goods or services is treated as income and that a taxpayer can have a gain or loss on the sale or exchange of a virtual currency, depending on the taxpayer’s cost to purchase the virtual currency (that is, the taxpayer’s tax basis).
Convicted Sex Offender Arrested on Multiple Child Ponography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Geimer, 54, of Rochester, NY, was arrested and charged by criminal complaint with receipt, distribution, and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on December 31, 2020, an undercover law enforcement officer downloaded a video file containing child pornography from a peer to peer sharing network. The IP address that shared the file was traced to the defendant. Subsequently, a federal search warrant was executed at Geimer’s residence on Lake View Park in Rochester. During the search, investigators seized several digital devices that contained child pornography, including 1825 videos and 16,238 images. Some of the videos appear to have been taken from a “Go Pro” by an individual, believed to be Geimer, concealing the camera at an amusement park and capturing video of children at a water park. Another video depicts an individual, believed to be the defendant, concealing the camera walking through his place of employment, including a pool area, capturing children in their bathing suits. And another video depicts an individual, again believed to be Geimer, concealing the camera and walking into a certain grocery store directly towards a girl approximately 8 to 10 years old.
In June 1989, the defendant was convicted following a jury trial in New York State Court of Sexual Abuse 2nd and Acting in a Manner Injurious to a Child Less than 16 Years Old and sentenced to a conditional discharge.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing on April 6, 2021, at 11:00 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Convicted Felon Sentenced to 25 Years in Federal Prison for Gun CrimeRead the Press Release
A 46-year-old Dallas man was sentenced to 25 years in federal prison of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Keldric Walker Thomas pleaded guilty in February 2020 to possession of a firearm in furtherance of a drug trafficking crime. Mr. Thomas was sentenced on Monday by U.S. District Judge David C. Godbey. Mr. Thomas was convicted in 2003 of possession of a firearm in furtherance of a drug trafficking crime.
According to plea papers, in July 2018, Dallas police officers observed Mr. Thomas committing multiple traffic offenses while operating a Chevrolet Malibu. Law enforcement made contact with Mr. Thomas and he was placed under arrest.
During a subsequent search of Mr. Thomas’s person, law enforcement recovered a .45 caliber magazine containing rounds of ammunition, a green tipped rifle round, cocaine, and methamphetamine. Mr. Thomas also possessed $2,364 in U.S. currency.
Officers also obtained a search warrant for Mr. Thomas’ Chevrolet Malibu. Inside the vehicle, law enforcement located a semi-automatic pistol and large quantities of methamphetamine and heroin.
The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Renee Hunter prosecuted the case.
Colombian Soccer Star Sentenced in the Eastern District of Texas for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SHERMAN, Texas – A Colombian soccer star was sentenced to federal prison today for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jhon Eduis Viafara Mina, 42, a native of Robles, Colombia, pleaded guilty on Nov. 23, 2020, to conspiracy to import five kilograms or more of cocaine into the United States and was sentenced to 135 months in federal prison today by U.S. District Judge Amos Mazzant. Viafara Mina, an international soccer star, previously played for the Colombian National Team and Once Caldas football club, as well for the English football clubs Portsmouth and Southampton, among many others.
“The defendant in this case had it all, worldwide fame, wealth, and stature—despite all of this, he chose to use his talents to advance the evil of the drug trade,” said Acting U.S. Attorney Nicholas Ganjei. “The Eastern District of Texas will identify drug trafficking operations and dismantle them at their source, stopping deadly drugs before they reach our shores. Traffickers should take note, no matter who you are; no matter where in the world you live; the United States will prosecute you if you join in a conspiracy to send drugs to our country.”
According to information presented in court, in August 2017, DEA Dallas Field Division Group 3, in conjunction with the DEA Bogota Country Office, the DEA San Jose Country Office, and the Panama City Country Office began an investigation into a cocaine drug trafficking organization operating out of Colombia, which included Jhon Eduis Viafara Mina, also known as “Futbolista,” “Goleador,” and “Makelele.” Viafara was involved in the logistical preparations of dispatching large cocaine shipments by aircraft or boat from Colombia to Mexico via Central America for subsequent distribution within the United States. Based on this conduct, Viafara was indicted by a grand jury based on June 13, 2018.
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.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Claimed real estate investor charged with securities fraudRead the Press Release
ATLANTA - Richard J. Randolph, III, has been arraigned on federal charges of securities fraud. Randolph was charged in an information filed on April 1, 2021.
“Investors expect the companies that they invest in will operate with integrity,” said Acting U.S. Attorney Kurt R. Erskine. “The defendant allegedly went to great lengths to mislead potential clients, convincing some to invest over $1.5 million in the alleged scheme.”
“Creative fraud is still fraud,” said Special Agent in Charge Steve Baisel, U.S. Secret Service Atlanta Field Office. “Fortunately, the combined efforts of law enforcement partners are an effective way to stop bad actors.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Richard Randolph was the CEO, Chairman of the Board of Directors, and majority shareholder of Randolph Acquisitions, Inc., a company headquartered in Atlanta that publicly filed its financials with the Securities and Exchange Commission. He also controlled Gallagher Management Group and other related entities. In 2017 and 2018, Randolph sold over $1 million in Randolph Acquisition stock to various investors.
In 2017, Randolph began preparing to merge Gallagher Management Group into Randolph Acquisitions and sold Randolph Acquisitions shares to multiple investors. Gallagher Management also engaged an accounting firm to audit its 2016 financial statements. In connection with this audit, Randolph allegedly provided false information regarding Gallagher Management Group’s assets which were then reflected on the balance sheet of the 2016 financial statements:
- Randolph falsely claimed that Gallagher Management Group owned two buildings valued at a claimed $10 million combined. In reality, neither Gallagher Management Group, nor Randolph ever owned these properties.
- Randolph falsely valued a different property at $10.5 million with no associated liability. In reality, Gallagher Management Group purchased the property in or about September 2016 for $1.1 million with a $1.1 million mortgage loan secured by the property. It was sold in August 2017 for $1.2 million.
- Randolph falsely valued yet another property at $4.5 million that was acquired in January 2016 for $425,000 by an entity controlled by Randolph and was transferred to Gallagher Management Group in March 2017. In April 2018, the property was sold at auction for $687,500 after Gallagher Management Group defaulted on a $500,000 loan.
- Randolph provided a false bank statement showing a balance of over $2.5 million. The actual balance in this account was $58,198.78.
The audited financials included other misrepresentations such as falsely stating that Gallagher Management Group “has consistently maintained over $50 million dollars in assets, under management, annually.”
Gallagher Management Group also engaged a consultant to prepare a business valuation for the merger which relied upon Gallagher Management Group’s 2016 audited financial statements, alleged additional false property valuation information provided by Randolph, and false projections provided by Randolph. The report valued Gallagher Management Group at $31.3 million on an enterprise value basis and $33.8 million on an equity value basis.
In connection with the proposed merger between Randolph Acquisitions and Gallagher Management Group, Randolph Acquisitions made multiple filings with the Securities and Exchange Commission that attached the alleged false 2016 audited financial statements of Gallagher Management Group. Randolph directed investors to these filings. In addition to these documents, Randolph allegedly falsely claimed that Randolph Acquisitions owned EF Block when it did not. He allegedly falsely claimed that Randolph Acquisitions was close to securing a variety of large public and private contracts in the U.S. Virgin Islands, including hurricane remediation contracts and an agreement to manage the U.S. Virgin Islands public retirement fund, when in fact they never obtained any of those contracts.
These alleged misrepresentations materially increased Randolph Acquisitions’ apparent value and future prospects, when in reality, it was little more than a shell company with limited assets. Randolph allegedly induced 14 victims who relied upon the misrepresentations to invest over $1.5 million in Randolph Acquisitions.
Richard J. Randolph, III, 40, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Regina D. Cannon. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service, with assistance from the U.S. Securities and Exchange Commission. In a related civil matter, the U.S. Securities and Exchange Commission filed a complaint charging Randolph and he consented to entry of a judgment against him.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Central Indiana Man Faces Federal Fraud ChargesRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that George S. Blankenbaker Jr., 56, of Westfield, Indiana, was charged in federal court for two counts of wire fraud and one count of money laundering.
According to the information, between May 2008 and August 2016, Blankenbaker created three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC and Stargrower Asset Management, LLC (hereinafter the Stargrower Entities) and EDU Holding Trust (the Trust). He later used these entities, which he owned and managed, in the execution of a Ponzi and money laundering scheme.
“The victims of this scheme placed enormous trust in Mr. Blankenbaker to wisely manage and invest their hard-earned money,” said Childress. “Instead, he exploited their trust through deception and lies for his own personal gain.”
Blankenbaker persuaded more than 100 individuals to invest more than ten million dollars in the Stargrower Entities. He represented to investors that the funds they invested would be used to finance the use of shipping containers of food in the “international trade of fast moving consumer products similar to what you would find in a grocery store.” The investment funds received by Blankenbaker were deposited into Stargrower Entities bank accounts which he solely controlled and was the sole signatory.
Contrary to Blankenbaker promises to investors, he did not invest their money as he had described. On over 300 separate occasions between September 2016 and May 2019, Blankenbaker diverted the investment money he received to primarily make interest payments and return of principal payments to other Stargrower Entities investors, and to fund personal expenses and unrelated business ventures of his. Thirty-four investors lost over $1,400,000 in this scheme.
Blankenbaker other business entity known as EDU Holding Trust (the Trust), was designed to utilize investor funds to purchase life insurance policies on the secondary market at a price less than the face maturity amount of the policies. Investors in the Trust received a document created by Blankenbaker, entitled “life settlement purchase agreement” that they were beneficiaries of the Trust and that they would receive compensation from the profits generated when the life insurance policy matured, that is, when the insured died. In another document provided to investors, he said that a financial institution, the Bank of Utah, would serve as an escrow agent to receive the proceeds upon the maturity of the life insurance policies and then distribute the funds to the investors appropriately.
In August 2016, one of the policies purchased by the Trust died, and a proceeds check in an amount in excess of 2.5 million dollars was issued to the Trust by the life insurance company on which the policy was drawn. The check was not deposited into the Bank of Utah escrow account, but was rather deposited by Blankenbaker into an account he opened at PNC Bank in the name of EDU Holding Esc Acct. Although some of the funds from this deposit were appropriately transferred to investors in the Trust, others were transferred to another account he controlled at PNC Bank in the name of one of the Stargrower Entities. These funds were used, in part, for business and personal expenses of Blankenbaker unrelated to the purposes of the Trust. This scheme resulted in a loss of $110,200 to an investor in the Trust.
This case was investigated by IRS Criminal Investigation, the United States Postal Inspection Service, and the Securities and Exchange Commission.
“The Special Agents of Internal Revenue Service Criminal Investigation (IRS-CI) are experts at unraveling the fraudulent actions of those, such as George S. Blankenbaker Jr, who scheme to defraud investors,” said Acting Special Agent in Charge Tamera Cantu of IRS-CI’s Chicago Field Office. "We are committed to investigating money laundering as part of our mission to protect the financial well-being of honest, hard-working Americans. We will continue to work with our law enforcement partners to prosecute swindlers like Blankenbaker.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division stated, “The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to advance their fraud schemes. Crimes of these type bring grave financial and personal hardships to their victims. Criminal misuse of the U.S. Mail will not be tolerated, and our agency will continue to go after those who seek to exploit vulnerable victims. This case illustrates the benefit of a strong partnerships between U.S. Postal Inspectors and our colleagues in local, state, and federal law enforcement.
According to Assistant U.S. Attorney James M. Warden, who is prosecuting this case for the government, Blankenbaker faces up to 10 years imprisonment for the one count of money laundering charge, and up to 20 years for each wire fraud charge, a maximum fine of $250,000 as to each count, and up to three years of supervised release following any prison term. Also filed today was a petition to enter plea of guilty and plea agreement, whereby Blankenbaker has indicated that he intends to plead guilty to all the counts of the Information.
An information is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
Career Coach Pleads Guilty to Stealing More Than $68,000 from Federally Funded Workforce Development ProgramRead the Press Release
CHARLOTTE, N.C. – Jessica Anne Miller, 38, of Hickory, N.C., pleaded guilty to federal charges today for stealing more than $68,000 from a federally funded workforce development program, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David C. Keesler presided over the plea hearing.
Acting U.S. Attorney Stetzer is joined in making this announcement by Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General (DOL-OIG).
According to filed plea documents and today’s court hearing, from July 2016 to November 2019, Miller was employed as a career coach by an entity contracted by a nonprofit association of local governments to provide training to job seekers, using federal funds made available by the U.S. Department of Labor under the Workforce Innovation and Opportunity Act (WIOA). WOIA was signed into law in 2014, and it is designed to provide qualified individuals with access to training, education, and support services, and assistance with obtaining employment. As part of WOIA, qualified individuals can also be reimbursed for certain eligible expenditures such as mileage, costs and fees, and tools of the trade, among others.
According to court records, as career coach, Miller was responsible for providing career guidance, case management and follow up to participants in the youth program. As Miller admitted in court today, while serving as a career coach, she engaged in a scheme to divert more than $68,000 of government funds for her own benefit, by creating bogus documents, falsifying signatures, and making false and misleading statements to qualified individuals who were supposed to be the recipients of the WOIA funds.
According to court records, to perpetuate the scheme, in some instances Miller created fraudulent documents for mileage reimbursement on behalf of students enrolled in the program, and then cashed the checks and kept the proceeds for herself. When victims inquired about the status of their mileage reimbursement claims, Miller gave numerous bogus excuses, including that the program no longer had reimbursement funds available. In other instances, court records show that Miller created fraudulent documents that falsely indicated student-victims had received vaccines and were seeking reimbursements for the costs associated with those vaccines, when in truth and fact the student-victims had not received the vaccines, had no knowledge of the reimbursement forms submitted on their behalf, and did not receive the checks issued in their names. Instead, Miller kept the reimbursement checks, forging the signatures of the student-victims so that she could cash the checks and keep the proceeds for herself.
In other instances, Miller created fraudulent documents that falsely indicated that qualified individuals had made reimbursable purchases, such as tools of the trade, and were seeking reimbursement for those costs. Miller then submitted the fraudulent documents and cashed the reimbursement checks. Miller also created and submitted fraudulent documents, forging student-victims’ signatures, indicating that student-victims had successfully completed certain milestones that would have entitled them to gift cards. Instead of providing those gift cards to the student-victims, Miller kept them for herself.
As Miller admitted in court today, Miller also fraudulently opened bank accounts in the names of at least two student-victims and used those accounts to cash the fraudulent reimbursement checks. Additionally, Miller opened American Express accounts in the names of three student-victims, which she subsequently used to deposit some of the fraudulently obtained reimbursement checks. In total, Miller defrauded at least 40 individuals and diverted more than $68,000 in government funds for her own personal enrichment.
Miller pleaded guilty to wire fraud scheme, which carries a maximum prison term of 20 years and a $250,000 fine. Following today’s plea hearing, Miller was released on bond. A sentencing date for Miller has not been set.
In making today’s announcement, Acting U.S. Attorney Stetzer commended DOL-OIG for their investigation of the case and thanked the North Carolina State Bureau of Investigation and the Conover Police Department for their invaluable assistance.
Assistant United States Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Bristol-Myers Squibb to Pay $75 Million to Resolve False Claims Act Allegations of Underpayment of Drug Rebates Owed Through MedicaidRead the Press Release
PHILADELPHIA, PA – Deputy United States Attorney Louis D. Lappen announced that Bristol-Myers Squibb (“BMS”) has agreed to pay the United States and participating states a total of $75 Million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program. Of that amount, BMS will pay approximately $41 million, plus interest, to the United States, and the remainder to states participating in the settlement.
Pursuant to the Medicaid Drug Rebate Program (“MDRP”), drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the Average Manufacturer Prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. This settlement resolves allegations that BMS underreported AMPs for a number of its drugs by improperly reducing the reported AMPs for service fees paid to wholesalers, and by improperly excluding from the reported AMPs additional value it received pursuant to price appreciation provisions in its contracts with wholesalers. As a result, BMS allegedly underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
“The Department of Justice is committed to ensuring that pharmaceutical manufacturers comply with the requirements of programs such as the Medicaid Drug Rebate Program,” said Deputy United States Attorney Lappen. “It is critical that these companies report accurate pricing information used in the rebate calculations so that the government and taxpayers benefit from the program as Congress intended.”
This settlement resolves a lawsuit filed by Ronald J. Streck under the whistleblower provisions of the False Claims Act, which permit private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Eastern District of Pennsylvania and is captioned United States ex rel. Streck v. Bristol-Myers Squibb Co., Civil Action No. 2:13-CV-7547 (E.D. Pa.). The government declined intervention of this matter, and the relator and his counsel proceeded with the case. Relator Streck is represented by Dan Miller of Walden Macht & Haran LLP, Joy Clairmont of Berger & Montague, PC, Robert Jackson Martin of Martin Law, PC, and Peter Kohn of Faruqi and Faruqi.
“We thank Mr. Streck and his counsel for their efforts, which were critical to the favorable resolution of this case,” said Deputy U.S. Attorney Lappen. The settlement was a coordinated effort among the Department of Justice Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Pennsylvania, and the National Association of Medicaid Fraud Control Units. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorney Eric D. Gill and Assistant United States Attorney Charlene Keller Fullmer, Deputy Chief of the Civil Division.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Bartlesville Man Pleads Guilty for Downloading and Viewing More than 1200 Images of Child PornographyRead the Press Release
A 76-year-old Bartlesville man who downloaded and viewed more than 1200 images and 79 videos of child pornography on his electronic devices pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Clint Johnson.
Richard Lee Ryan Jr. pleaded guilty to possession of child pornography. U.S. District Judge John F. Heil III ordered the defendant to self-surrender to the U.S. Marshals Service on April 5, and set sentencing for June 30, 2021.
“Child pornography is not a victimless crime. For nearly a year, Richard Ryan Jr. hid behind a screen and downloaded images of children being exploited and raped. With every download and view, he revictimized those children again and again,” said Acting U.S. Attorney Clint Johnson. “Thanks to our partners at the FBI and Homeland Security Investigations, Mr. Ryan will be held accountable for his actions.”
Ryan Jr. admitted that from June 26, 2019, to June 6, 2020, he knowingly possessed and viewed child pornography, which involved at least one prepubescent minor and a minor that had not attained 12 years of age engaging in sexually explicit conduct.
Investigators initially discovered Ryan Jr. when he uploaded an image of child pornography to a chat on an online messaging app. On June 6, 2020, a federal search warrant was executed at the defendant’s home and numerous electronic devices were seized, five of which contained child pornography. Investigators discovered 79 videos and more than 1200 images depicting child rape and bestiality on the devices.
The FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Benjamin D. Hargrove and Christopher J. Nassar are prosecuting the case.
Allentown Man Sentenced to 70 Months’ Imprisonment for Filing Fraudulent Tax ReturnsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Julio Polanco Suarez, age 44, of Allentown, Pennsylvania, to 70 months’ imprisonment, for conspiring to defraud the government and for committing aggravated identity theft.
According to Acting United States Attorney Bruce D. Brandler, Suarez pleaded guilty to conspiring to defraud the government between March 2009 and September 2016. Suarez and his conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. The conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Suarez admitted that between $1.5 million and $3.5 million in losses to the U.S. Treasury occurred as a result of the criminal activity.
During the sentencing hearing, Judge Mariani highlighted the losses caused to the United States government by the scheme, and how Suarez, who is a citizen of the Dominican Republic, abused the rights and freedoms he enjoyed while living in the United States. Suarez faces deportation at the conclusion of his sentence of imprisonment. Judge Mariani also ordered Suarez to pay $1,189,256.50 in restitution.
Three other defendants were convicted and sentenced in the course of the investigation:
- Marien Torres-Acevedo, age 38, of Allentown, Pennsylvania, was sentenced to 75 months’ imprisonment and faces deportation;
- Francisco Rodriguez-Polanco, age 35, of New York, New York, was sentenced to 54 months’ imprisonment and faces deportation; and
- Alfred LiPuma, age 81, of Lake Harmony, Pennsylvania, was sentenced to three years of probation and paid $2.1 million in restitution and fines.
The matter was investigated by agents from the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service, Homeland Security Investigations, United States Postal Inspectors, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Acting U.S. Attorney Leif Johnson, the Confederated Salish and Kootenai Tribes and FBI Announce Completion of Tribal Community Response Plan to Address Missing and Murdered Indigenous PersonsRead the Press Release
PABLO — The U.S. Attorney’s Office for the District of Montana, the Confederated Salish and Kootenai Tribes (CSKT) of the Flathead Indian Reservation and the FBI today announced the completion of the nation’s first Tribal Community Response Plan (TCRP) as part of a pilot project to address cases of Missing and Murdered Indigenous Persons.
Acting U.S. Attorney Leif Johnson, CSKT Chairwoman Shelly R. Fyant and FBI Executive Assistant Director Terry Wade presented the TCRP to tribal representatives during a meeting today at tribal headquarters in Pablo.
The U.S. Attorney’s Office in Montana and CSKT on Dec. 1 launched the pilot project in accordance with the U.S. Department of Justice’s Missing and Murdered Indigenous Persons (MMIP) Initiative, and the President’s Operation Lady Justice Task Force, and in furtherance of the goals in Savanna’s Act.
CSKT, with participation from federal, tribal, state and local law enforcement representatives and community organizations, developed guidelines for the TCRP through a series of working group meetings.
“CSKT’s development of a community response plan is a historic milestone in addressing this serious national issue. CSKT’s initiative to join in this pilot project will help other tribes across the country as they develop their own TCRPs. I want to thank our office’s Missing and Murdered Indigenous Persons Coordinator, Ernie Weyand, CSKT Chairwoman Fyant, Council member and secretary, Ellie Bundy, CSKT policy analyst, Jami Pluff, and all of the partners and stakeholders who participated in this process,” Acting U.S. Attorney Johnson said.
“I’m honored to say that a lot of hard work went into reaching this milestone,” said CSKT Chairwoman Fyant. “By coming together in this effort, we have shown how true partnerships work, that by collaborating we can achieve incredible goals. We are not slowing down now. We will continue to bring light to this crisis as long as it is necessary and provide the essential law and order, victim services, media/public communications and community outreach work with all available resources. Thanks to everyone for their dedication and commitment to supporting the CSKT Community Response Plan.”
FBI Executive Assistant Director (EAD) Terry Wade, who oversees the Criminal, Cyber, Response, and Services Branch (CCRSB), stated: “The FBI has been dedicated to the Missing and Murdered Indigenous Persons (MMIP) Initiative since its inception and remains committed to the initiative. Working directly with forward leaning partners like the Confederated Salish & Kootenai Tribes (CSKT) is critical to improving the safety and security of our communities. The development of the Tribal Community Response Plan (TCRP) is yet another step in the right direction and will facilitate a coordinated response in these time sensitive investigations.”
After pilot projects are completed, Savanna’s Act directs the U.S. Attorney’s Office to continue working with other tribal governments to ensure guidelines are developed across Montana.
CSKT was selected for the pilot project in Montana because it had expressed an interest in participating, has worked on the MMIP issue, including establishing a tribal task force, and has significant community impact related to cases involving tribal members. In addition, CSKT was able to meet despite COVID-19 restrictions.
The working group meetings included representatives from the U.S. Attorney’s Office, CSKT, federal, state, tribal and local law enforcement (including the Flathead Tribal Police Department, Lake County Sheriff’s Office, Missoula County Sheriff’s Office, Flathead County Sheriff’s Office, Sanders County Sheriff’s Office, Polson Police Department, Ronan Police Department, FBI, U.S. Marshals Service, and the Montana Department of Justice) and community organizations.
Wednesday 31 March 2021
Westlake man sentenced to 13 years for possession with intent to distribute meth, cocaine, marijuana and firearms offensesRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Ryan Gallo, age 26, of Westlake, Ohio, was sentenced on Tuesday, March 30, to 157 months imprisonment by U.S. Judge John R. Adams. Gallo pleaded guilty in December of 2020 to possession with intent to distribute methamphetamine, cocaine, marijuana, felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime.
“Federal convictions for trafficking in methamphetamine, cocaine and marijuana, when coupled with a conviction for carrying a loaded firearm to further those drug dealing efforts, will result in a significant term of incarceration, like the sentence imposed here,” said Acting U.S. Attorney Bridget M. Brennan. “We are grateful for the hard work and diligent efforts of the Broadview Heights Police Department and Drug Enforcement Administration.”
“The sentencing of Gallo to more than 13 years in prison puts all drug traffickers on notice that they will be held accountable for their illegal conduct,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Throughout the course of this investigation, agents seized firearms, methamphetamines and marijuana from Gallo. DEA remains committed to protecting Ohioans from those who prey on our communities.”
On August 26, 2020, Gallo was stopped by an officer with the Broadview Heights Police Department after reports that he had left the scene of an accident and was driving erratically. The officer identified Gallo as the driver and noted recent damage to the front of his vehicle. After identifying alcohol and drug paraphernalia in the vehicle, Gallo was placed under arrest, and his person and vehicle were searched.
During the search, officers located approximately 473 grams of methamphetamine, 25 grams of cocaine, 1,134 grams of marijuana and a loaded .32 caliber revolver. Gallo is prohibited from possessing a firearm due to a 2018 drug trafficking conviction in the Cuyahoga County Court of Common Pleas.
This investigation was conducted by the Drug Enforcement Administration and the Broadview Heights Police Department. This case was prosecuted by Assistant U.S. Attorney Margaret A. Sweeney.
Wayne and Clarke County Men Sentenced for Methamphetamine Trafficking OffensesRead the Press Release
DES MOINES, IA – On Tuesday, March 30, 2021, United States District Court Senior Judge James E. Gritzner sentenced Jaime Morales Cisneros, age 27, of Corydon, to 126 months in prison for conspiracy to distribute five grams or more of actual methamphetamine announced Acting United States Attorney Richard D. Westphal. On the same date, Judge Gritzner sentenced Chad Andrew Moore, age 39, of Allerton, to 141 months in prison for conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine; and Seth Brian Miller, age 28, of Corydon, to four years of probation for conspiracy to distribute methamphetamine.
The above individuals were the last participants to be sentenced of the defendants charged in this methamphetamine conspiracy. On March 10, 2021, Judge Gritzner sentenced Travis Wesley Boyce, age 47, of Humeston, to 97 months in prison for conspiracy to distribute methamphetamine. On March 10, 2021, Judge Gritzner sentenced Ruben Rios-Sanchez, age 33, of Osceola, who was charged in a separate indictment, to 300 months in prison for conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine. Following each of the prison terms the defendants will serve several years of supervised release.
In 2017 and 2018, Osceola-resident Rios-Sanchez was supplying Morales with methamphetamine for re-distribution. Morales in turn supplied Moore, Boyce, and Miller with methamphetamine that they sold to customers in South Central Iowa. At times, Rios-Sanchez also directly supplied Moore, Boyce, and Miller with methamphetamine. The conspiracy involved drug transactions in several South-Central Iowa Counties, including Wayne, Clarke, and Lucas.
This case was investigated by the Wayne County Sheriff’s Office, Iowa Division of Narcotics Enforcement, South Central Iowa Drug Task Force, Osceola Police Department, Chariton Police Department, Centerville Police Department, Clark County Sheriff’s Office, U.S. Drug Enforcement Administration, Des Moines Police Department, Mid-Iowa Drug Task Force, and the Wayne County Attorney’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Washington Man Pleads Guilty to $244 Million Ghost-Cattle ScamRead the Press Release
A Washington man pleaded guilty today to defrauding Tyson Foods Inc. (Tyson) and another company (Company 1) out of more than $244 million by charging them under various agreements for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not actually exist.
According to court documents, Cody Allen Easterday, 49, of Mesa, used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and Company 1 under which Easterday Ranches agreed to purchase and feed cattle on behalf of Tyson and Company 1. Per the agreements, Tyson and Company 1 would advance Easterday Ranches the costs of buying and raising the cattle. Once the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced (plus interest and certain other costs), retaining as profit the amount by which the sale price exceeded the sum repaid to Tyson and Company 1.
Beginning in approximately 2016 and continuing through November 2020, Easterday submitted and caused others to submit false and fraudulent invoices and other information to Tyson and Company 1. These false and fraudulent invoices sought and obtained reimbursement from the victim companies for the purported costs of purchasing and growing hundreds of thousands of cattle that neither Easterday nor Easterday Ranches ever purchased, and that did not actually exist. As a result of the scheme, Tyson and Company 1 paid Easterday Ranches over $244 million for the purported costs of purchasing and feeding these ghost cattle.
Easterday used the fraud proceeds for his personal use and benefit, and for the benefit of Easterday Ranches, including to cover approximately $200 million in commodity futures contracts trading losses that Easterday had incurred on behalf of Easterday Ranches. In connection with his commodity futures trading, Easterday also defrauded the CME Group Inc. (CME), which operates the world’s largest financial derivatives exchange. On two separate occasions, Easterday submitted falsified paperwork to the CME that resulted in the CME exempting Easterday Ranches from otherwise-applicable position limits in live cattle futures contracts.
“For years, Cody Easterday perpetrated a fraud scheme on a massive scale, increasing the cost of producing food for American families,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Criminal Division’s prosecutors are committed to swiftly and thoroughly prosecuting frauds affecting our nation’s agricultural and other commodities markets, whether in the heartland or on Wall Street.”
“I commend the agents with the Federal Deposit Insurance Company Office of the Inspector General and the U.S. Postal Inspection Service for their dedication to investigating this case and tenacity in ferreting out the fraudulent activity to which the defendant has pleaded guilty,” said Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington.
“Today’s guilty plea holds the defendant responsible for his extensive and coordinated fraud over many years, resulting in more than $240 million of illicit gains,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “The defendant submitted false and fraudulent documentation, and then brazenly used the proceeds to cover his losses and for his personal benefit. This scheme was unraveled through rigorous and diligent investigative work with our law enforcement partners, and the FDIC-OIG remains committed to helping preserve the integrity of the banking sector.”
“Producing and providing false invoices and information on goods and services never delivered, were the fundamental key in defrauding an American multinational company out of hundreds of millions of dollars,” said Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service Criminal Investigations Group. “This case highlights the collaborative investigative work undertaken by the U.S. Postal Inspection Service and its law enforcement partners to protect consumers and businesses from duplicitous practices. Anyone who engages in these fraudulent and deceptive activities will be brought to justice.”
Easterday pleaded guilty to one count of wire fraud and agreed to repay $244,031,132 in restitution. He is scheduled to be sentenced on August 4 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Deposit Insurance Corporation Office of Inspector General and the U.S. Postal Inspection Service are investigating the case.
Acting Principal Assistant Chief Avi Perry and Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell E. Smoot of the Eastern District of Washington are prosecuting the case.
The Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.
Versailles Man Sentenced to 240 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. — A Versailles, Ky., man, David McKinney, 52, was sentenced to 240 months in federal prison on Wednesday, by U.S. District Judge Karen Caldwell, after previously pleading guilty to distribution of 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, McKinney admitted that, from November to December 2019, he distributed more than 50 grams of methamphetamine. On December 10, 2019, during traffic stop, law enforcement found McKinney in possession of methamphetamine and a handgun. The firearm was loaded with a round in the chamber. Law enforcement also located a digital scale in McKinney’s pocket. McKinney admitted that he possessed the handgun for his protection and to further his drug trafficking crimes.
McKinney pleaded guilty in October 2020.
Under federal law, McKinney name must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Lt. Colonel Phillip Burnett, Acting Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DEA and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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United States Attorney's Office District of Arizona February 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
190 individuals were charged in February with illegal reentry
A. 151 of those 190 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 151 individuals with non-immigration criminal records:
1. 44 had violent crime convictions, including:
2 individuals had homicide convictions
1 individual had a sex offense conviction
10 individuals had domestic violence convictions2. 5 had property crime convictions
3. 24 had DUI convictions
4. 78 had drug crime convictionsB. 83 of those 190 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
28 individuals were charged in February with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in February with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in March 2020 of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2021-019_February Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Union City Man Charged with Robbery in Connection with Series of Bay Area Commercial RobberiesRead the Press Release
OAKLAND - Nelson Enrike Ramirez was arraigned today on a federal criminal complaint charging him with robbery affecting interstate commerce, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The complaint charges Ramirez, 40 years old and from Union City, with a November 6, 2020, robbery of a 7-Eleven convenience store on Washington Boulevard in Fremont. According to the complaint, Ramirez entered the store wearing a black or grey inside-out hooded sweatshirt, a black COVID-19-style mask, and a grey glove. He allegedly told the clerk he needed a soda from the soda machine and as the clerk approached to help, Ramirez pulled what appeared to be a black handgun from his pocket. He ordered the clerk to walk to the cash register, where the clerk gave Ramirez approximately $200 from the register. Ramirez looked in another register and then left the store.
The criminal complaint also alleges that between May and November 2020, Ramirez committed 21 commercial robberies and two attempted commercial robberies in the San Francisco Bay Area, with 22 of them taking place in October or November 2020. According to the complaint, Ramirez committed his robberies in Fremont, Newark, Hayward, Union City, Campbell, Milpitas, Mountain View, Los Altos, and Sunnyvale.
Ramirez made his initial appearance in federal court today before United States Magistrate Judge Susan van Keulen. Ramirez remains in custody and his next scheduled appearance is on Friday, April 2, for status on his detention before United States Magistrate Judge Robert M. Illman.
A complaint merely alleges that crimes have been committed, and Ramirez is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Ramirez faces a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss inflicted on victims, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Noah Stern is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske and Kathleen Turner. The prosecution is the result of an investigation by the FBI, the Fremont Police Department, the Union City Police Department, the Newark Police Department, the Hayward Police Department, the Campbell Police Department, the Milpitas Police Department, the Mountain View Police Department, the Los Altos Police Department, and the Sunnyvale Police Department.
Thai National Charged with Fraudulently Selling Unapproved Chloroquine Phosphate as A Treatment for Covid-19Read the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Chinnapatr Chunhasomboon, age 41, of Bangkok, Thailand, was indicted on March 30, 2021, by a federal grand jury for fraudulently selling chloroquine phosphate to United States citizens as a treatment for COVID-19.
According to Acting United States Bruce D. Brandler, the indictment alleges that Chunhasomboon sold unapproved chloroquine phosphate to customers worldwide, including in the United States, as a treatment for both COVID-19 and for malaria. Chunhasomboon allegedly evaded and attempted to evade U.S. Customs inspectors by disguising his shipments of chloroquine phosphate as fish tank accessories and cell phone cases, among other things. Chunhasomboon also allegedly undervalued the shipments to be worth only $10 to $12, when in fact they often were worth several hundred dollars each. Chunhasomboon allegedly made tens of thousands of dollars from his scheme.
Chloroquine phosphate is not approved by the FDA as a COVID-19 treatment, and previously was approved on an emergency basis only in controlled hospital settings and from approved sources. The CDC previously reported that two individuals who ingested chloroquine phosphate they obtained for treating aquarium fish did so as a prophylactic measure against COVID-19. One of those individuals died, and one was left critically ill.
Chunhasomboon is charged with two counts of mail fraud and three counts of wire fraud for selling chloroquine phosphate to four customers located in Pennsylvania. He also is charged with two counts of smuggling chloroquine phosphate into the United States, two counts of introducing misbranded drugs into U.S. commerce, and two counts of introducing unapproved new drugs into U.S. commerce. Chunhasomboon further is charged with two counts of making false statements to federal agents, denying that he sold chloroquine phosphate as either a treatment for COVID-19 or for malaria.
The case was investigated by Homeland Security Investigations, with assistance from the Food and Drug Administration. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Criminal indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Texas Man Pleads Guilty to Conspiring with a Montgomery Doctor to Illegally Sell Prescription DrugsRead the Press Release
Montgomery, Alabama – On Tuesday, March 30, 2021, Deandre Varnel Gross, 36, of Converse, Texas, appeared in federal court and pleaded guilty to conspiring to unlawfully distribute oxycodone, announced Acting United States Attorney Sandra J. Stewart.
According to court documents, Gross conspired with Dr. D’livro Lemat Beauchamp, a Montgomery physician, to unlawfully distribute oxycodone, a Schedule II opioid controlled substance. Specifically, Gross and Beauchamp agreed that Gross would pay Beauchamp for writing prescriptions for medications containing oxycodone, despite there being no medical reason to do so. Pursuant to the arrangement, Beauchamp, who was practicing at Obelisk Healthcare at the time, wrote monthly prescriptions for 90 tablets containing 30-milligrams of oxycodone hydrochloride. After receiving the prescriptions, Gross would get them filled at a Montgomery-area pharmacy and sell the pills to others. Gross would then pay Beauchamp a portion of the money he received from selling the illegally obtained drugs.
During his plea hearing, Gross also admitted that he recruited others to participate in the above-described scheme. Gross would consult with Beauchamp and then direct other individuals to make appointments to see the doctor to get oxycodone prescriptions. The individuals recruited by Gross would get their prescriptions filled, give the pills to Gross or another individual acting at Gross’s direction, and receive payment for his or her services. Gross, or another individual acting at his direction, would then sell the illegally prescribed drugs. Additionally, the plea agreement revealed that after an individual recruited by Gross had an initial appointment with Beauchamp, he or she did not continue to see the physician each month. Instead, Beauchamp would give the prescriptions to Gross, who would pass them along to the individuals to take to pharmacies to be filled. After obtaining pills from a pharmacy, a participant in the scheme would then give the pills to Gross or another individual acting at Gross’s direction.
During the sentencing hearing, Gross acknowledged that this scheme operated from as early as 2014 through early 2020.
Gross’s sentencing hearing will occur on July 1, 2021. At that hearing, Gross faces a sentence of up to 20 years in prison and substantial financial penalties. Beauchamp pleaded guilty to conspiring to unlawfully distribute oxycodone in October of 2020. His sentencing hearing is scheduled for June 25, 2021.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad. The Shelby County Sheriff’s Office, the Montgomery Police Department, and the Alabama Board of Medical Examiners, and the United States Department of Health and Human Services – Office of Inspector General assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour are prosecuting the case.
Syracuse Man Pleads Guilty to Drug ChargeRead the Press Release
SYRACUSE, NEW YORK – Aaron Acevedo, 27, of Syracuse, New York pled guilty in federal court today to possessing with intent to distribute heroin and cocaine, announced Acting United States Attorney Antoinette T. Bacon, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his guilty plea, Acevedo admitted that in June 2020 he possessed, and intended to distribute, more than 40 grams of heroin and more than 120 grams of cocaine. Chief United States District Judge Glenn T. Suddaby scheduled sentencing for August 4, 2021 in Syracuse, New York. At sentencing, Acevedo faces a maximum sentence of 30 years in prison, a fine of up to $2,000,000, and a term of supervised release of at least six years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the Drug Enforcement Administration (DEA), the Syracuse Police Department, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Investigators from the Onondaga County District Attorney’s Office, the United States Postal Inspection Service, the New York State Police, and the Onondaga County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur and Special Assistant U.S. Attorney Adrian LaRochelle.
Swedish Actor Sentenced to More Than 15 Years for Enticing Florida Minor to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – United States District Judge Wendy W. Berger today sentenced Joaquin Nabi Olsson (46, Stockholm, Sweden) to 15 years and 8 months in federal prison for using the internet and social media to entice and persuade a minor to engage in sexual activity. Olsson was also ordered to serve a 5-year term of supervised release and was ordered to register as a sex offender. He was arrested on July 20, 2019, and has been detained since his arrest.
Olsson had pleaded guilty on July 14, 2020.
According to court documents, Olsson, who was an actor in Sweden, met the child victim online in mid-2018, when she was 14 or 15 years old. For months, Olsson engaged in frequent communications with the victim through various online platforms. During those conversations, he learned about the challenges in the victim’s home life and assumed the role of a rescuer to help her through those challenges.
Eventually, Olsson revealed his sexual interest in the child victim, and engaged her romantically through their online communications, calling her his “wife” and expressing his intention to move to Florida to marry her. In March 2019, Olsson traveled from Sweden to the United States to visit the child for two weeks. During that that visit, Olsson and the victim engaged in sexually explicit conduct together. Two months later, in May 2019, Olsson returned to the United States again to visit the victim and to have sex with her. He was arrested in July 2019, after being found together with the victim at a hotel in Brevard County.
“This child predator thought he could use international borders to abuse children and avoid law enforcement detection,” said Homeland Security Investigations (HSI) Orlando Assistant Special Agent in Charge David Pezzutti. “Thanks to HSI special agents and the Brevard County Sheriff’s Office, he will now understand how seriously we take this crime in the United States.”
This case was investigated by Homeland Security Investigations, the Brevard County Sheriff’s Office, and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Stratford Man Pleads Guilty to Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that LUIS COLON, also known as “Big Lou” and “Hitman,” 50, of Stratford, pleaded guilty yesterday to fentanyl distribution and gun possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert M. Spector occurred via videoconference.
According to court documents and statements made in court, between July and December 2020, Colon was involved in a conspiracy to distribute fentanyl disguised as oxycodone. Investigators seized approximately 300 fentanyl pills disguised as oxycodone that had been sold by Colon to a co-conspirator.
Colon was arrested on December 16, 2020, after a court-authorized search of his residence on Dover Street in Stratford revealed 11 firearms, numerous rounds of ammunition, approximately 60 fentanyl pills disguised as oxycodone, approximately 61 grams of cocaine with packaging, items used to process and package narcotics for distribution, and approximately $24,800 in cash.
Colon’s criminal history includes state convictions for conspiracy to commit murder, assault, weapons, robbery and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Colon pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a felon, which carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on June 22, 2021.
Colon is released on a $150,000 bond pending sentencing.
This matter is being investigated by the FBI’s Northern Connecticut Gang Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Brian Leaming, 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.
St. Louis tax preparer pleads guilty to tax fraudRead the Press Release
ST. LOUIS – Tiffany McAllister, 44, of St. Louis, Missouri, pleaded guilty to three counts of tax fraud. McAllister appeared, today, before United States District Court Judge Ronnie L. White.
McAllister began operating a tax preparation service in 2009 and continued the business through the 2019 tax year.
During that period, McAllister registered two companies with the Missouri Secretary of State and obtained employer identification numbers for them through the Internal Revenue Service even though she never transacted business nor employed anyone through either company. Nevertheless, between January 1, 2014 and December 31, 2016, McAllister prepared fraudulent tax returns claiming that she and some of her clients received wages and had taxes withheld with respect to the fictitious companies.
McAllister also knowingly prepared tax returns for clients that fraudulently claimed wages and withholdings from other fictitious businesses, self-employment business losses, and educational expenses in order to increase the federal tax refunds her clients obtained.
An investigation by the Internal Revenue Service revealed McAllister received payment for assisting in the fraudulent preparation of 39 tax returns for the tax years of 2014 through 2017.
McAllister admits her false representations for the tax years of 2014, 2015, 2016 and 2017 created tax losses to the Internal Revenue Service in the amount of $920,854.
Judge White has set sentencing for June 30, 2021 at 11:00 a.m.
“Today, Ms. McAllister admitted to preparing and submitting fraudulent returns to the IRS where she blatantly ignored the tax laws,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “IRS CI Special Agents will continue to ensure that all tax preparers and others in the tax preparer profession adhere to professional standards and follow the law.”
The Internal Revenue Service investigated the case. Assistant United States Attorney Tracy Berry is handling the case.
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Sioux Falls Man Sentenced for Heroin TraffickingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 8, 2021 by U.S. District Judge Karen E. Schreier.
Jonathan Edward Brown, age 34, was sentenced to 84 months in federal prison, followed by four years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brown was indicted by a federal grand jury on September 1, 2020. He pled guilty on December 14, 2020.
The conviction stemmed from incidents beginning on an unknown date and continuing until on or about September 1, 2020, when Brown knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute a mixture and substance containing 100 grams or more of heroin.
Brown voluntarily and intentionally joined in the agreement to distribute heroin. Brown also knew the purpose of the agreement. Brown obtained over 100 grams of heroin from a co-conspirator and re-distributed to drug customers in the District of South Dakota and elsewhere. Heroin is a Schedule I controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Distribution of a Controlled Substance Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury was sentenced on March 29, 2021, by U.S. District Judge Karen E. Schreier.
Jordan Daniel Ugalde, age 29, was sentenced to 240 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ugalde was indicted by a federal grand jury on August 17, 2020. He pled guilty on January 4, 2021.
The conviction stemmed from an incident on or about May 6, 2019, when Ugalde, knowingly and intentionally distributed heroin and said heroin resulted in the serious bodily injury of a victim. The victim self-injected the heroin provided by Ugalde and sustained an overdose which was reversed by the administration of Narcan. Heroin is a Schedule I controlled substance.
This case was investigated by the Sioux Falls Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Ugalde was immediately turned over to the custody of the U.S. Marshals Service.
Serial Fraudster Sentenced to 8 Years in Federal Prison for Conspiring to Steal Mail, Stealing Benefits Under the Cares Act, and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Nicholas Milano White, age 30, of Baltimore, Maryland, on March 30, 2021, to eight years in federal prison, followed by three years of supervised release, for the federal charges of conspiracy to steal mail, emergency benefits fraud, and aggravated identity theft. Judge Bennett also ordered White to pay restitution of $29,234, the full amount of the victims’ losses.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“It is crucial that funds available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act go to those who have been hit hardest by this global pandemic,” said Acting U.S. Attorney Jonathan F. Lenzner. “My office and law enforcement in Maryland are committed to bringing to justice fraudsters who are stealing taxpayer funds and preying on citizens during this public health crisis to personally benefit by stealing victims’ money and personal identifying information.”
“Stealing mail to commit identity theft and bank fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said U.S. Postal Inspector in Charge for the Washington Division Peter Rendina. “This is especially true in the world today when individuals are seeking to take advantage of American consumers during this pandemic. We will continue to work to bring these people to justice with our U.S. Attorney’s office and local, state and federal law enforcement partners.”
According to his guilty plea, between October 2019 and June 2020, White conspired to and engaged in various fraud schemes, theft of mail, counterfeiting of U.S. currency, production and possession of false identification documents and credit profiles, unemployment insurance fraud, and illegal possession of firearms and ammunition.
White admits that on October 11, 2019, he submitted a fraudulent application for financing to purchase a 2016 Maserati Ghibli vehicle. The credit application listed a false social security number for White and false employment and income information for White and his co-applicant. White also arranged to have fake paystubs created for attachment to the credit application as verification of his income. As a result, White secured financing of $30,227 to purchase the vehicle.
As detailed in his plea agreement, in February and March 2020, White devised schemes to defraud banks and to steal money from individuals by negotiating checks stolen from the United States mail. On March 8, 2020, law enforcement was able to monitor the movements of White and his co-conspirators through a GPS tracking device installed in a parcel stolen from the collection box at the Rosedale Post Office in Baltimore County. The conspirators’ movements were tracked to several other post offices and collection boxes in Baltimore County where they continued to steal mail. When Baltimore County Police officers approached, the conspirators fled in a white sedan registered to one of White’s co-conspirators. Officers located the vehicle in a residential area of Pikesville, Maryland. The vehicle was unoccupied and gloves, trash bags, and approximately 358 pieces of unprocessed U.S. mail were found on the ground outside the vehicle. Law enforcement found and arrested White at a nearby location with a co-conspirator and seized cell phones and USB storage devices from White. White was released from custody following his arrest. There were at least 136 postal customers whose mail was stolen. Approximately 48 victims reported that their stolen mail contained bank checks or other financial instruments totaling $48,938 in value.
A search warrant was subsequently executed on the cell phones and other electronic media seized from White. The cell phones contained text messages about White creating fake credit profiles and false identification documents for himself and others, and conducting fraudulent bank transactions, as well as the personal identifying information (PII) of identity theft victims. White’s phones also contained credit card “dumps,” and lists of sensitive information pertaining to at least 1,100 credit cards issued to other persons that could be used to create counterfeit copies of the cards. White had downloaded these lists from websites that illegally marketed and distributed them. White’s cell phones also revealed Internet searches for business and personal check refills, a credit card dump website and a personal data broker website, and photos of numerous stolen checks, among other things. Law enforcement also recovered text messages in which White negotiated prices for the purchase of multiple firearms. A search of White’s USB devices recovered images of U.S. currency in various denominations, which White admitted were used and/or intended to produce counterfeit U.S. currency. In at least one exchange of text messages, White attempted to sell $5,000 of counterfeit currency to another person, at one point claiming that he had purchased firearms with counterfeit currency.
Following White’s release from custody in March 2020, he continued to engage in fraud by submitting a false claim for Florida state unemployment benefits through the Internet in the name of a real person, using the victim’s personal information, but providing a false mailing address in Baltimore. As a result of this false application, the Florida Department of Economic Opportunity (DEO) issued at least two checks payable to the victim totaling $875 and mailed them to the Baltimore address. The victim, a resident of Florida was later contacted by Florida DEO and confirmed that the claim had been submitted without her knowledge or permission.
In addition, on a date no earlier than May 1, 2020, White unlawfully acquired an Economic Impact Payment (EIP) check issued by the U.S. Treasury and authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The EIP check, in the amount of $2,900, was intended for the benefit of M.H. and M.I., a married couple residing in Maryland. The EIP check had been placed in the mail and addressed to the former home address of the couple in Baltimore. On June 23, 2020, White fraudulently negotiated the stolen check by endorsing it with the forged signature of M.H. and depositing it into a bank account fraudulently opened on June 14, 2020, in M.H.’s name and using his social security number and date of birth.
On June 24, 2020, law enforcement executed search warrants at White’s residence and at another address used by White, and conducted a consent search of a storage unit used by White, all in Baltimore. Law enforcement recovered the following items: the stolen EIP check issued to M.H. and M.I.; two fake driver’s licenses listing M.H.’s name and former address, but each displaying a different person’s face; two debit cards issued in the name of M.H.; stolen mail pieces and sensitive financial documents belonging to multiple victims; several blank checks issued for a trust account; numerous fake photo identification cards; counterfeit U.S. currency; fraudulently altered money orders; credit and debit cards displaying different names, at least one of which was determined to be counterfeit; equipment used to print counterfeit currency, create counterfeit credit cards, and fabricate false identification cards, as well as check stock intended to fabricate blank checks and money orders; a .45-caliber pistol; a 9mm pistol with a 50-round-capacity magazine; two .223 caliber high-capacity magazines; and several rounds of ammunition.
Two cell phones and a desktop computer were seized and subsequently searched pursuant to federal search warrants. One of the phones was found to contain notes listing individuals’ names and identifying information, including M.H., as well as a U.S. Postal Inspector who was involved in the investigation of White’s mail thefts and arrest on March 8, 2020. Information stored on White’s desktop computer revealed a search of the Postal Inspector’s name on a personal data broker website on March 14, 2020, after White was released from custody.
Judge Bennett also ordered that White forfeit his interest in the following items seized during searches in March and June 2020: firearms, ammunition, and firearms magazines; laptop and desktop computers; cell phones; electronic storage devices; blank plastic cards with magnetic strips and/or chips; blank checks and check stock; printers; embossing machines; and magnetic stripe reader/writers or encoders.
Co-defendant Cedric Jonathan McNeal-Parker, age 29, of Randallstown, Maryland, pleaded guilty to conspiracy and theft of mail and was sentenced on March 10, 2021, to 18 months in federal prison.
Charges remain pending against Dominic Jerry Robinson, age 26, of Baltimore, who is scheduled to go to trial on September 20, 2021. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service, the U.S. Secret Service, and the Baltimore County Police Department for their work in the investigation and thanked the Office of the Treasury Inspector General for Tax Administration for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
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Searsport Man Sentenced for Attempting to Transfer Obscene Material to a MinorRead the Press Release
BANGOR, Maine: A Searsport man was sentenced in federal court today for attempting to transfer obscene material to a minor, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Nicholas Norwood, 35, to a year and a day in federal prison, followed by three years of supervised release. Norwood pleaded guilty on November 14, 2019.
According to court records, in April 2019, Norwood, formerly of Frankfort, used a mobile messaging service to send an image of his genitalia to an undercover federal agent posing as a 13-year-old girl.
The Department of Homeland Security’s Homeland Security Investigations, the Waldo County Sheriff’s Office and the Maine State Police investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Search Warrant Execution at Rashid PharmacyRead the Press Release
DAVENPORT, Iowa –On Wednesday March 30, 2021, federal search warrants were executed at Rashid Long Term Care Pharmacy and Rashid Pharmacy PLC, both in Fort Madison, Iowa. The searches at these locations were official law enforcement actions involving officers, agents, and investigators from the United States Department of Health and Human Services, Federal Bureau of Investigation, Iowa Medicaid Fraud Control Unit, Fort Madison Police Department, and Lee County Sheriff’s Office.
This is an ongoing investigation and no other information will be released at this time.
San Diego Business Leader Gina Champion-Cain Sentenced to 15 Years for Massive Ponzi Scheme and Obstruction of JusticeRead the Press Release
Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384 and Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – March 31, 2021
SAN DIEGO – Gina Champion-Cain, a long-time San Diego business leader, restauranteur, and real estate magnate, was sentenced in federal court today to 15 years in prison for masterminding a massive, years-long Ponzi scheme and obstructing justice by hiding and destroying evidence from federal investigators.
When she pleaded guilty on July 22, 2020, Champion-Cain admitted that she raised more than $350 million from investors by promising to use their money to make loans to business owners who were attempting to acquire California liquor licenses. The investors were unaware, however, that Champion-Cain was not keeping her promise.
According to court records, Champion-Cain and her co-conspirators instead used funds from new investors to pay back others whose investments would soon be redeemed, and embezzled funds to support her other businesses and her lifestyle. Champion-Cain and her co-conspirators kept the scheme going by, among other things, fabricating documents, forging signatures, and telling investors lies through fake email accounts so that when investors attempted to double-check on their investments with third parties, they were often really communicating with the defendant or her employees.
In handing down the sentence, U.S. District Judge Larry Alan Burns told the defendant that her scheme demonstrated “tremendous callousness” and “extreme avarice” in committing a “monumental crime.”
“This is a fitting sentence for a defendant who caused significant harm to hundreds of victims,” said Acting U.S. Attorney Randy Grossman. “This Ponzi scheme cost investors hundreds of millions of dollars while the defendant lived in luxury. We will continue our aggressive efforts to prosecute those who swindle, deceive and bring financial devastation to victims.”
“For years, Gina Champion-Cain used her status in the community to lie, cheat, and steal more than a staggering $350 million dollars - all from investors who trusted her with their hard-earned money and, in many instances, their life's savings,” said FBI Special Agent in Charge Suzanne Turner. “While the victims have suffered significantly from the defendant's betrayal, we hope today's sentence will bring some closure as they see Champion-Cain being held accountable for the damage she has caused. Let this serve as a warning that the FBI is dedicated to protecting the community from criminals, like Champion-Cain, who commit investment fraud.”
Crispin Torres, the former Chief Financial Officer of one of Champion-Cain’s companies, was sentenced on March 23, 2021 to four years in prison for using funds received from investors to prop up Champion-Cain’s other businesses.
Throughout her scheme, Champion-Cain made agreed-upon payments to her investors so that they would continue to believe that the supposed investment program was legitimate, according to court filings. This, in turn, helped her perpetuate the scheme and recruit more victims. Champion-Cain also stole tens of millions of dollars of investor funds to keep her other businesses afloat and enrich herself. Because many of Champion-Cain’s restaurant and retail businesses were failing or had negative cash flow, they needed funds to meet expenses. Time after time, Champion-Cain and Torres worked together to steal millions of dollars of investor funds to cover the shortfall. Champion-Cain also spent millions of investor dollars to pay for her own salary, box seats at professional baseball and football games, credit card bills, automobiles, jewelry, and other personal luxuries.
Champion-Cain’s plea agreement also describes her efforts to obstruct federal investigations into the scheme. Beginning in July 2019, after learning of investigations being conducted by federal agencies, she instructed her employees to destroy emails; not produce electronic calendar, messaging, and trash files; alter accounting records to hide the fact that investor funds were used to pay her personal expenses; and shred paper records. Champion-Cain even attempted to solicit an investment of $150 million in the hopes that she could use the funds to hide her scheme. Despite her efforts, investigators were able to recover a significant volume of the evidence Champion-Cain attempted to destroy.
Grossman praised the lead prosecutors on the case, Assistant U.S. Attorneys Aaron Arnzen and Andrew Galvin, as well as investigators and attorneys from the Federal Bureau of Investigation and the Securities and Exchange Commission, for their excellent work on this case
DEFENDANTS
Case Number 20CR2115-LAB
Gina Champion-Cain Age: 57 San Diego, CA
Case Number 20CR2114-LAB
Crispin Torres Age: 53 National City, CA
SUMMARY OF CHARGES
Securities Fraud, Title 15, U.S.C. Sections 77q and 77x (Champion-Cain)
Obstruction of Justice, Title 18, U.S.C. Section 1505 (Champion-Cain)
Conspiracy, Title 18, U.S.C. Section 371 (Champion-Cain and Torres)
AGENCY
Federal Bureau of Investigation
Philadelphia Attorney Charged with Mail Fraud and Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Olivetti, age 40, of Philadelphia, Pennsylvania, was charged by criminal information on March 30, 2021, with mail fraud and tax evasion.
According to Acting United States Attorney Bruce D. Brandler, the information alleges that Olivetti, a licensed attorney, stole approximately $91,991.28 from an estate that he represented. The information also alleges that between November 9, 2015 and July 15, 2020, Olivetti attempted to evade paying his taxes by hiding funds and providing false information to an Internal Revenue Officer.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 25 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Owner of A Plus Tax Experts and Financial Services Indicted on Tax ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury on Monday indicted the owner and operator of a Birmingham tax preparation service on tax charges, announced U.S. Attorney Prim F. Escalona, and IRS Criminal Investigations Atlanta Field Office Special Agent in Charge James Dorsey.
A 37-count indictment filed in U.S. District Court charges Ametra Q. Wooden, 33, of Birmingham, with 35 counts of aiding and assisting in the preparation of false and fraudulent tax returns and two counts of willfully failing to file personal income tax returns.
According to the indictment, Wooden owned and operated A Plus Tax Experts & Financial Services, a tax preparation firm with locations in Birmingham and Jasper, Alabama. The indictment alleges that Wooden knowingly and willfully aided and assisted in the preparation of 35 fraudulent tax returns on behalf of clients for the tax years 2014 through 2017. In 2014 and 2016, Wooden allegedly failed to file personal income tax returns despite being required to do so by law.
The penalty for aiding and assisting in the preparation of false and fraudulent tax returns is a maximum of three years in prison and a $250,000 fine. The penalty for willfully failing to file a tax return is a maximum of one year in prison and a fine of $100,000.
IRS Criminal Investigations Atlanta Field Office is conducting the investigation and Assistant U.S. Attorney Edward J. Canter is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Outlaws Motorcycle Club Regional President Sentenced for Firearms ChargesRead the Press Release
BOSTON – The regional president of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club was sentenced today for the possession of an unregistered firearm.
Bruce Sartwell, a/k/a “Monster,” 48, of East Bridgewater, was sentenced by U.S. District Court Judge Denise J. Casper to 27 months in prison and 3 years of supervised release. In July 2020, Sartwell pleaded guilty to one count of possession of an unregistered firearm and 153 rounds of 5.56 caliber ammunition.
On Oct. 19, 2019, agents intercepted a package originating in China and addressed to Sartwell that was declared as a “Fuel Filter” but actually contained a firearm silencer. A review of importation records revealed that Sartwell had received approximately 65 shipments from Asia (including over 55 from China), many of which were labeled as innocuous items that could have been more easily and cheaply purchased in the United States. During the investigation, law enforcement determined that Sartwell was the Regional President of the Brockton/East Bridgewater Chapter of the Outlaws Motorcycle Club.
During an Oct. 30, 2019 search of Sartwell’s residence, agents observed over a dozen airsoft guns in Sartwell’s garage that, despite their realistic appearance, were determined not to be firearms. Hidden in the garage was a homemade AR-15 styled “ghost gun” (a firearm without any manufacturing or serial numbers), and two empty 30 round magazines. Also within the garage were guides showing how to build an AR-15 rifle along with tools and additional parts to assemble the same. The AR-15 was later successfully test fired. An additional hidden compartment was located in Sartwell’s garage containing a firearm silencer and silencer parts.
In addition, a hide in Sartwell’s bedroom nightside table concealed 153 rounds of 5.56 caliber ammunition compatible with the AR-15 styled rifle, 20 knives, a black powder handgun and a flare gun. In the basement of the house, a floor-length mirror concealed the entrance to a hidden storage area that was found to contain a safe with silencer parts and a firearm assembly instruction book.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division made the announcement today. Valuable assistance was provided by the U.S. Postal Inspection Service; Customs and Boarder Protection; Massachusetts State Police; East Bridgewater Police Department; Bristol County Sheriff’s Office; and the Massachusetts Environmental Protection Agency. Assistant U.S. Attorneys Lindsey E. Weinstein and Kenneth G. Shine of Mendell’s Criminal Division prosecuted the case.
New Britain Man Sentenced to 3 Years in Federal Prison for Selling Fentanyl and CrackRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JORDAN FLYTHE, also known as “T,” 28, of New Britain, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and crack cocaine.
According to court documents and statements made in court, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department identified Flythe as a narcotics distributor who supplied various gang members in the Hartford’s South End. On February 3, 2020, after investigators conducted a controlled purchase of approximately six grams of crack cocaine from Flythe in exchange for $300 in Hartford, Hartford Police stopped Flythe’s vehicle and arrested Flythe on state narcotics charges. A search of Flythe’s vehicle and person at the time of his arrest revealed approximately 20 grams of crack, a digital scale and $3,450 in cash.
Shortly after Flythe was released on bond in his state case, investigators made controlled purchases from Flythe of approximately 12 grams of crack on February 12, 100 sleeves of fentanyl and approximately eight grams of crack on February 17, and approximately 7 grams of crack on February 25.
On February 26, 2020, investigators conducted a court-authorized search of a Hartford apartment Flythe used to store, process and package narcotics and seized more than 30 grams of fentanyl, 18 grams of crack, nine ounces of marijuana and $5,582 in cash. A search of Flythe’s New Britain residence revealed approximately 52 grams of heroin and $3,357 in cash.
Flythe has been detained since his federal arrest on February 26, 2020. On October 9, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl and cocaine base (“crack”).
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, West Hartford Police Department, New Britain Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Nassau Felon Sentenced to 10 Years in Federal Prison for Possession of Firearms and Illegal DrugsRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Justin Aaron Redding (37, Callahan) to 10 years in federal prison for possessing with the intent to distribute methamphetamine and possessing a firearm as a convicted felon. The court also ordered Redding to forfeit more than $31,000, two handguns, and ammunition which are traceable to proceeds of the offense.
Redding had pleaded guilty on October 22, 2020.
According to court documents, pursuant to an investigation regarding Redding, law enforcement officers located Redding walking outside a hotel on the Southside area of Jacksonville. At the time, Redding had several outstanding felony warrants. Following a foot pursuit of Redding, on his person and in his car, officers located two handguns with ammunition, more than $31,000, 205 grams of methamphetamine, 45 grams of cocaine, 4 grams of heroin, and 17 grams of marijuana.
Prior to these events, Redding had been convicted of various felony drug offenses. Therefore, he is prohibited from possessing firearms or ammunition under federal law. At the time of this offense, Redding had been out of prison for approximately one year.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez and Special Assistant United States Attorney Cyrus P. Zomorodian.
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 draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of Federal, State, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Mineral County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kendu Woodard, of Keyser, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Woodard, also known as “Kenneth Barmore,” 43, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Woodard, a person prohibited from having a firearm because of a prior conviction, has admitted to having a 9mm pistol in February 2019 in Mineral County.Woodard faces up to 10 years of incarceration and a fine of up to $250,000. 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 Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Meth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Tiffany Lynn Snider, 32, of Foley, Alabama, was sentenced today for her participation in an organization which distributed substantial amounts of methamphetamine ice in Baldwin County during 2017 through 2018. In May of 2020, Snider pled guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during and in relation to a drug trafficking felony.
Court documents show that Snider personally distributed methamphetamine ice on numerous occasions beginning in April of 2017 through April of 2018. During July of 208, investigators received consent to search Snider’s residence where many of the drug sales took place. They recovered methamphetamine, smoking devices used to ingest methamphetamine, scales and guns. Snider claimed one of the guns, which was later discovered to be stolen. Other members of the distribution conspiracy include Snider’s husband, Christopher Ryan Snider, who also entered a guilty plea to federal charges. His sentencing is presently set for May 13, 2021.
United States District Court Judge Terry F. Moorer imposed a 96-month sentence of imprisonment in Snider’s case this morning, consisting of 60 months on the gun charges consecutive to 36 months on the drug charge. The judge ordered that Snider serve a five-year term of supervised release when she is released from custody. She was also ordered to pay $200 in mandatory special assessments. No fine was imposed. The judge further entered a forfeiture order as to the firearms used in the commission of the crime.
The case was investigated by the Baldwin County Sheriff’s Office, the Foley Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
McLaughlin Woman Charged with Assault of Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury for Assault of a Federal Officer.
Valerie Red Fish, age 43, was indicted on February 8, 2021. She appeared before U.S. Magistrate Judge William D. Gerdes on March 26, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is eight years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 27, 2020, in McLaughlin, Red Fish assaulted a Bureau of Indian Affairs officer by spitting on her while she was performing her official duties.
The charge is merely an accusation and Red Fish is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Red Fish was released on conditions pending trial. A trial date has not been set.