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Thursday 25 March 2021
Harlem man sentenced for domestic abuseRead the Press Release
GREAT FALLS – A Harlem man who admitted a domestic abuse crime after beating a woman on the Fort Belknap Indian Reservation was sentenced today to 30 months in prison and to two years of supervised release, Acting U.S. Attorney Leif Johnson said.
Jeremy Leo Tincher, 39, pleaded guilty on Nov. 10, 2020 to domestic abuse by habitual offender.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that Tincher attacked and injured the victim, identified as Jane Doe, on Aug. 9, 2019 as she was driving on the Fort Belknap Indian Reservation. The victim drove directly to the police station seeking help and was treated for injuries.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Tribal Police.
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Grand Jury Indicts Level 1 Sex Offender on Charges of Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Zachary Feeterman, 26, of Tonawanda, NY, with receipt and possession of child pornography. Based on the defendant’s prior conviction, the charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment and a previously filed complaint, on August 8, 2019, two Erie County Probation Officers were conducting a routine home visit at the defendant’s residence where they discovered a cellular telephone. In November 2015, Feeterman was convicted of Attempted Possession of a Sexual Performance by a Child less than 16 years old and was a Level 1 Sex Offender on probation. As a result, he is prohibited from possessing a cell phone. During a search of the phone, the probation officers discovered several anonymous chatting and social media applications. One of the applications was KEEPSAFE, a vault storage application that looks like a calculator. The application contained files with images and videos of child pornography. Investigators also found numerous other images and videos of child pornography on the phone. Some of the images and videos included prepubescent children and depictions of violence.
Feeterman will be arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. on March 26, 2021, at 1:00 p.m.
The indictment is the result of an investigation by members the Erie County Probation Department, under the direction of Commissioner Brian McLaughlin; the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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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Former Oil Trader Pleads Guilty to Commodities Price Manipulation ConspiracyRead the Press Release
A California man pleaded guilty Wednesday to a multiyear conspiracy to engage in commodities price manipulation.
According to court documents and statements made in court, Emilio Jose Heredia Collado, 49, of Lafayette, was employed as a trader at Company A, an oil trading company, and later at Company B, a multinational commodity trading company, after it had acquired Company A. Between approximately September 2012 and August 2016, Heredia conspired with other employees at Company A, and later at Company B, to manipulate the price of fuel oil bought from, and sold to, a particular counterparty, Company C, through private, bilateral contracts.
“The defendant and his co-conspirators unlawfully manipulated the fuel oil market for their own gain by creating artificial prices that undermined the legitimate forces of supply and demand in one of our nation’s key commodity markets,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution demonstrates the department’s commitment to working with our law enforcement partners to identify and prosecute individuals who would seek to manipulate commodities benchmark prices while trading in the open market.”
“Individuals profiteering, through the manipulation of daily price assessments of a valuable commodity, fuel oil, prior to the purchasing or selling of it, goes against the most fundamental concepts of a supply-and-demand market economy,” said Assistant Inspector in Charge Raimundo Marrero of the U.S. Postal Inspection Service Criminal Investigation Group. “These fraudulent practices have no place in the international marketplace. This guilty plea showcases the U.S. Postal Inspection Service’s tenacity to hold individuals accountable for their dishonest actions and the resolve to continue to protect consumers and businesses. To criminals out there, the U.S. Postal Inspection Service and our federal partners will ensure your criminal endeavors are brought to justice.”
Heredia and his co-conspirators sought to unlawfully enrich themselves, Company A, and Company B by increasing profits and reducing costs on the fuel oil contracts with Company C. The price terms of the contracts were set by reference to the daily benchmark price assessment published by S&P Global Platts (Platts) for intermediate fuel oil 380 CST at the Port of Los Angeles (Los Angeles 380 CST Bunker Fuel) on a certain day or days plus or minus a fixed premium. As part of the price manipulation conspiracy, Heredia directed his co-conspirators to submit orders to buy and sell (bids and offers) to Platts during the daily trading “window” for the Platts Los Angeles 380 CST Bunker Fuel price assessment with the intent to artificially push the price assessment up or down.
For example, if Company A or Company B had a contract to buy fuel oil from Company C, Heredia directed his co-conspirators to submit offers during the Platts “window” for the express purpose of pushing down the price assessment and hence the price of fuel oil bought from Company C. The bids and offers were not submitted to Platts for any legitimate economic reason by Heredia’s and his co-conspirators, but rather for the purpose of artificially affecting the Platts Los Angeles 380 CST Bunker Fuel price assessment so that the benchmark price, and hence the price of fuel oil that Company A or Company B bought from, and sold to, Company C, did not reflect legitimate forces of supply and demand.
The U.S. Postal Inspection Service is investigating the case.
Acting Principal Assistant Chief Avi Perry and Trial Attorney Matthew F. Sullivan of the Justice Department’s Fraud Section are prosecuting the case.
The Criminal Division’s 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.
Former Mexican governor and presidential candidate convicted of money launderingRead the Press Release
HOUSTON - The former governor of Tamaulipas, Mexico, has admitted he accepted over $3.5 million in illegal bribe money and used it to fraudulently purchase property in the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Tomas Yarrington Ruvalcaba, 64, was also a former candidate for president of Mexico. Today, he admitted to a charge of conspiracy to commit money laundering in a pay to play type of scheme.
As part of the plea, Yarrington admitted he accepted bribes from individuals and private companies in Mexico to do business with the state of Tamaulipas while he served as governor. Yarrington was in that position from 1999 to 2005. He was also an Institutional Revolutionary Party candidate for president of Mexico in 2005.
Yarrington used the bribery money he received while governor to purchase properties in the United States. He had prestanombres - nominee buyers - purchase property in the United States to hide Yarrington’s ownership of the properties and the illegal bribery money used to purchase them.
Yarrington admitted one of the illegally purchased properties was a condominium in Port Isabel. He also acknowledged he knew it was against the law in Mexico to take the bribes and to hide the over $3.5 million in illegal bribe money in the United States by buying real estate, cars and other personal items.
U.S. District Judge Hilda G. Tagle accepted the plea and will set sentencing at a later date. At that time, Yarrington faces up to 20 years in federal prison. He has also agreed to forfeit the Port Isabel condominium.
In April 2017, authorities captured Yarrington in Italy while traveling under an assumed name and false passport and other identification documents. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested extradition, Italian authorities eventually authorized his extradition to the United States. He arrived in April 2018 where he has remained in custody.
Homeland Security Investigations (HSI) led the Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed Operation Green Tide with the assistance of IRS – Criminal Investigation, Drug Enforcement Administration, FBI and Texas Attorney General’s Office. It included agents and officers in Brownsville, San Antonio, Houston, Corpus Christi and New York. The Justice Department’s Office of International Affairs handled the extradition in this matter. The U.S. government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.
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 on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jody Young, Jon Muschenheim and Karen Betancourt are prosecuting the case.
Former Kauai JROTC instructor arrested for sexual exploitation of former studentRead the Press Release
HONOLULU – VICTOR AGUILAR, a 65-year-old resident of Kauai, was arrested on two counts of sexual exploitation of a child under the age of 18 for the purpose of producing child pornography. Judith A. Philips, Acting United States Attorney for the District of Hawaii, John F. Tobon, Special Agent in Charge of the Honolulu Field Office of Homeland Security Investigations (“HSI”), and Todd Raybuck, Chief of the Kauai Police Department (“KPD”), announced that the charges were contained in a criminal complaint filed in federal court and unsealed today upon the arrest. AGUILAR will make his first court appearance in United States District court on March 29 2021,at 9:30 before United States Magistrate Judge Rom Trader.
The complaint and affidavit allege that AGUILAR was his victim’s Junior Reserve Officers’ Training Corps (“JROTC”) instructor, and that he sexually exploited the minor victim in his home, in his vehicle, and at the high school at which he worked. Also included in the information contained in those documents is the following:
Beginning in or around 1995, AGUILAR acted as a JROTC instructor at Waimea High School on Kauai, a position from which he recently resigned. The program at has included anywhere from 49 to 205 cadets, at times encompassing as much as 20 percent of the student population. One of AGUILAR’s former JROTC students was the victim in the complaint. Photographs and videos recovered from AGUILAR’s work-issued laptop and portable hard drive reveal that in 2020, AGUILAR sexually exploited the victim and created videos of this sexual exploitation, which videos form the basis for the federal criminal charges in the complaint. An examination of AGUILAR’s work-issued laptop and portable hard drive also revealed that AGUILAR compiled subfolders of students and/or former students of Waimea High School’s JROTC, which appear to date from in or about 2009 until recently, consisting mainly of images that appear to have been pulled from social media websites.
If indicted and convicted of the offenses in the complaint, the defendant would face a mandatory minimum of 15 years’ imprisonment and a statutory maximum of 30 years’ imprisonment on each count. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the sentencing judge. The complaint also notes that on or about March 11, 2021, AGUILAR was arrested on a state indictment, brought by the County of Kauai Office of the Prosecuting Attorney, charging him with having sexually assaulted a former student. The charges and information contained in the federal complaint and state indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty, which, as to the federal charges, also requires the filing of the charges in an indictment.
Acting U.S. Attorney Philips praised the outstanding investigative work of HSI and the Major Crimes Section and the Crime Scene and Laboratory Section of KPD. She also thanked the County of Kauai Office of the Prosecuting Attorney, Waimea High School, the State of Hawaii Department of Education Equity Specialist for the Kauai District, the State of Hawaii Department of Education, the Hawaii Department of Education JROTC Command, and the Hawaii Department of Human Services, Child Welfare Services for their assistance.
“Our main focus is the victims of these heinous crimes,” says Special Agent in Charge of HSI Honolulu John F. Tobon. “Prosecuting predators hopefully brings some comfort to those victimized and to the community in general.”
The State of Hawaii Department of Education’s Kauai District is working to identify individuals whose images were stored on AGUILAR’s devices or who otherwise may have been affected by AGUILAR’s conduct, and is preparing a letter that will be sent to notify those individuals. If you believe you or anyone else may have been affected, you may contact David Dooley, Equity Specialist, at (808) 379-5299, or at 3060 Eiwa Street, Room 305, Lihue, Hawaii 96766.
The prosecution is handled by Assistant U.S. Attorneys Micah Smith and Morgan Early.
Former Green Valley Fire Captain Sentenced to 90 Months in Prison for Child ExploitationRead the Press Release
TUCSON, Ariz. – Nathanael Dougall, 39, of Tucson, Arizona, was sentenced yesterday by United States District Judge James Soto to 90 months in prison. Dougall previously pleaded guilty to Distribution of Child Pornography.
On November 8, 2018, Dougall was arrested for sharing child sex abuse images on a messaging application with an individual he believed to be a 14-year-old girl. Dougall used the same application to engage in sexually explicit chats with the girl, who was actually an undercover law enforcement officer. Dougall worked as the Captain for the Green Valley Fire Department until his arrest.
Upon release from prison, Dougall will be placed on lifetime supervised release. He will be required to register as a sex offender and to complete a sex offender treatment program. Dougall was also ordered to pay restitution to several victims depicted in the child sex abuse images he possessed and distributed.
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. Attorney’s Offices and CEOS, 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.
Homeland Security Investigations (HSI), Douglas, conducted the investigation in this case. Carin C. Duryee and Nathaniel Walters, Assistant U.S. Attorneys, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 18-02526-TUC-JAS
RELEASE NUMBER: 2021-017_Dougall# # #
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.Former General Manager of Sioux Center Cooperative Sentenced to Prison in Grain Blending SchemeRead the Press Release
The former general manager of a Sioux Center grain cooperative who directed subordinate managers to blend oats into soybeans was sentenced March 24, 2021, to three months in federal prison.
Kenneth Ehrp, age 76, from Dakota Dunes, South Dakota, received the prison term after a November 2, 2020 guilty plea to one count of conspiracy to commit a prohibited grain practice.
In a plea agreement, and at guilty plea and sentencing hearings, Ehrp admitted he was the General Manager at a large, federally licensed grain warehouse that is headquartered in Sioux Center but has satellite locations in Iowa and elsewhere. No later than July 2015, Ehrp agreed with Calvin Diehl and others to add lower value oats to soybeans and sell the mixture as soybeans. As part of the grain blending scheme, Diehl and other individuals acting at Ehrp’s direction made false statements and executed false certificates to USDA inspectors, layered soybeans on top of oats in both storage bins and trucks to deceive USDA inspectors and customers about the quality and quantity of the grain, and made false entries and adjustments in reports provided to the grain warehouse’s bank.
In March 2017, one of Ehrp’s subordinate managers instructed a warehouse manager in Worthing, South Dakota, to blend more oats with soybeans. As a result, approximately 30 truckloads of soybeans were “spiked” with oats. After the customer happened to discover the badly “slugged” or “spiked” loads, one of the customer’s managers called Diehl and told him to stop blending oats into soybeans. The manager warned Diehl that “someone can go to jail for this.” Diehl feigned surprise, apologized, and falsely promised that the practice would not happen in the future. However, at Ehrp’s direction, Diehl and others continued to blend oats into soybeans (even directing subordinates to remix one of the “slugged” loads) and sell them to the same unwitting customer. Ehrp himself drove to the location manager’s office in Worthing and ordered him to continue blending oats. As a result, the Worthing location manager designed a new system for blending oats into soybeans, involving an auger and a conveyer, which sprinkled oats into the semi-trucks’ hoppers and ensured the loads leaving Worthing would remain hidden.
After learning of the conspiracy, the USDA conducted a search of grain bins at the cooperative’s various locations in Iowa and South Dakota. Of the estimated 87,996 bushels of grain in the bins at these locations, the bins actually contained only 34,354 bushels of soybeans even though all of these bins had been certified as soybeans.
Ehrp was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ehrp was sentenced to three months’ imprisonment and fined $50,000. He was ordered to pay $4,089.73 in costs of prosecution, and he also must serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Ehrp was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. Earlier this year, Diehl was also sentenced to three months’ imprisonment for his role in the grain blending scheme.
The case was prosecuted by Assistant United States Attorneys Timothy L. Vavricek and Matthew J. Cole and investigated by the United States Department of Agriculture - Office of Inspector General, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4093.
Follow us on Twitter @USAO_NDIA.
Former Evansville Plastics Company Executives Sentenced for Securities Fraud SchemeRead the Press Release
EVANSVILLE – Acting U.S. Attorney John E. Childress announced today that Kevin Kuhnash, 59, of Ohio, and Jason Jimerson, 46, of Alabama, were sentenced to federal prison by U.S. District Judge Richard L. Young. Kuhnash received a 36-month prison sentence, and Jimerson received a 24-month sentence.
A federal grand jury indicted Kuhnash and Jimerson in December 2018, and both were later arrested by the FBI and IRS-Criminal Investigation. In mid-2020, both men pleaded guilty to charges of securities fraud and money laundering. Jimerson also pleaded guilty to lying to federal agents.
“Those who choose fraud over fair dealing must be held accountable,” said Childress. “That is particularly true for corporate leaders like Kuhnash and Jimerson whom society relies on to ensure the fairness and integrity of business and the marketplace.”
Both men admitted that they concealed critical defects in Lucent’s business when they orchestrated the sale of the company to a private equity firm in late 2013 for over $64 million. Kuhnash and Jimerson claimed that Lucent could produce specialized plastics products that consistently met or exceeded customer specs at very low prices by using low-cost, recycled materials.
Lucent’s internal testing showed that many of its most profitable products often failed to meet specifications. This information was hidden from customers and Lucent shipped the products with a fabricated set of test results that falsely claimed the product was within specifications.
Kuhnash and Jimerson became aware of all of this in the months leading up to the sale of the company. Both men admitted to being aware of an email from a whistleblower employee who disclosed what he described as “ethical/conscience issues” and “a level of dishonesty” at Lucent. The email described the fraud that Lucent was perpetrating on its customers, including the manipulated test results, and lying to customers. Jimerson agreed with Kuhnash to not forward the email or let anyone know they received it.
Kuhnash and Jimerson never disclosed the fraud during their company sales pitches or the due diligence process leading up to Lucent’s sale to the private equity firm. After the company was sold, both Kuhnash and Jimerson lied to the private equity firm’s outside auditor about whether they were aware of any fraud at Lucent.
As executives, both men owned stock in Lucent. From selling the company, Kuhnash personally received approximately $1,393,000 and Jimerson received approximately $632,000.
The private equity firm that bought Lucent later sold it to a publicly traded plastics company. Lucent’s fraud on its customers was later discovered by that publicly traded company. On the day that Lucent’s fraud was publicly disclosed to investors, the company’s stock price fell by over 20%, or over $175 million in shareholder value.
This investigation was a collaborative effort between the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
“These two men knew of the fraudulent practices at the company they led, but chose to let it continue out of sheer greed, going even further by remaining silent as the company was sold for the sole purpose of enriching themselves,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This case demonstrates the strong partnerships the FBI has and the diligent work of all involved to combat significant fraud schemes such as this.”
“Internal Revenue Service Criminal Investigation (IRS-CI) is relentless in unraveling the fraudulent actions of those, such as Kevin Kuhnash and Jason Jimerson, who schemed to defraud customers and potential future owners of their business,” said Acting Special Agent in Charge Tamera Cantu of IRS-CI’s Chicago Field Office. “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior, and our Special Agents are determined in their efforts to uphold the justice system.”
According to Assistant United States Attorneys Nick Linder and Kyle Sawa, who prosecuted this case for the government, Kuhnash will also serve 1 year of supervised release following his imprisonment and pay a $10,000 fine. Jimerson will serve 2 years of supervised release following his imprisonment and pay a $10,000 fine.
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.
Former Bar Harbor Postal Employee Pleads Guilty to Stealing MailRead the Press Release
BANGOR, Maine: A Hancock man pleaded guilty today in federal court to theft of mail by a postal employee, Acting U.S. Attorney Donald E. Clark announced.
According to court records, Daniel Hindes, 35, worked as a rural carrier associate out of the Bar Harbor Post Office. From November 2019 through March 2020, he opened mail addressed to customers on his route and stole cash and gift cards. He then discarded the opened mail into the garbage rather than delivering the items. When interviewed by federal investigators, he admitted to opening 20 to 30 letters and taking cash and gift cards inside them.
Hindes faces up to five years in prison, three years of supervised release and a fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Postal Service Office of Inspector General investigated the case.
Financial Advisor of Global Investment Bank Sentenced in Federal Court in Maryland to Five Years in Prison for $6 Million Wire Fraud and Investment Adviser Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Michael Barry Carter, age 47, of Potomac Falls, Virginia, to five years in federal prison, followed by three years of supervised release, on charges of wire fraud and investment adviser fraud, in connection with a scheme to steal more than $6 million. Judge Grimm also ordered Carter to pay a money judgment in the amount of the net proceeds he obtained from the scheme, which was at least $4,355,110.39.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“For more than 12 years, Michael Carter perpetrated a brazen scheme that defrauded victim account holders at a global bank of their life savings,” said Acting U.S. Attorney Jonathan F. Lenzner. “When his fraud was discovered, Carter repaid some victims by stealing money from other victim accounts, and ultimately he stole close to $5 million. This case reflects the reality that large-scale fraud can still occur at a global institution with a robust compliance program, and it also reflects our commitment to holding bad actors accountable in order to provide restitution to victims and restore confidence in our system. The U.S. Attorney’s Office will continue to work closely with our federal law enforcement partners and the Securities and Exchange Commission to hold accountable financial advisors who defraud victims whose investments they are supposed to protect.”
According to his guilty plea, from August 7, 2006 to April 29, 2011, and again from November 16, 2011 to July 29, 2019, Carter was employed by a financial institution and worked primarily out of the financial institution’s Tysons Corner, Virginia location. In 2012, Carter was promoted to financial adviser in the wealth management section of the financial institution and was registered to sell securities and act as an investment adviser in Maryland and Virginia, among other locations. Carter managed and had authority over multiple investment accounts maintained by Victims 1 through 5 (as listed in the indictment) with the financial institution, which contained a mix of assets including securities and cash deposits. As a financial adviser, Carter was required to manage the victim accounts in the best interests of his clients, consistent with their investment objectives, and not for his personal benefit.
As detailed in the statement of facts, from at least October 2007 to at least July 2019, Carter made numerous unauthorized transactions from the victim accounts for his personal benefit, defrauding Victims 1 through 5 of at least $5 million. To effect the unauthorized wire transfers, Carter caused the submission of an internal bank authorization form that falsely stated that Carter had received verbal client instructions from each victim authorizing the transfer at a specific date and time. Carter caused the wire transfers to be sent to his personal accounts and used the money to pay for his lifestyle expenses, including Carter’s mortgage, credit card bills, and country club membership fees.
Carter’s fraud was first discovered when Victim 1 and her adult daughter attempted to obtain a bridge loan from the financial institution to cover relocation expenses to an assisted living facility in Florida until the sale of Victim 1’s home in Columbia, Maryland, was completed. When they applied for the loan, Victim 1 and her daughter discovered that an $800,000 loan had already been obtained in Victim 1’s name, without Victim 1’s knowledge or permission. The financial institution determined that the disbursement of the loan proceeds went to Carter’s personal bank account and that Carter used his personal e-mail address in furtherance of the fraud. The financial institution then learned that Carter had transferred approximately $5 million in unauthorized funds associated with clients of the financial institution.
On July 29, 2019, Carter was fired from the financial institution. On August 2, 2019, during a call with employees from the financial institution, Carter admitted that he had defrauded the five victims over a period of years, that he had forged clients’ signatures on bank authorization forms, that he had created false financial statements to disguise his theft, and in some cases had mailed those financial statements. With respect to Victim 1, Carter further admitted that he had met with the victim at her home and answered Victim 1’s phone in order to authorize the transactions, unbeknownst to Victim 1. Carter did this in order to overcome the financial institution’s multi-factor verification system required to execute the transactions.
According to the plea agreement, during the course of the scheme, Carter made at least 53 unauthorized transfers from his clients’ accounts to his own accounts. In addition, Carter admitted that he embezzled more than $50,000 from a non-profit sports organization located in Loudoun County, Virginia. In all, Carter stole at least $6,149,162.77. Prior to his offenses being detected, Carter caused $1,794,052.38 to be returned to the victims. After learning that his fraud had been discovered, in October 2019, Carter also repaid the non-profit organization for its loss. Of the total amount repaid, $1,118,318.52 was repaid through transfers Carter made from other victim accounts.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for their work in the investigation and recognized the Securities and Exchange Commission, which has filed a related civil proceeding. Mr. Lenzner thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who prosecuted the criminal case.
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Felon Sentenced for Possessing A Firearm and AmmunitionRead 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 Javarus Payne, 34, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to serve 37 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that the defendant was arrested on August 29, 2020, after officers from the Rochester Police Department and troopers from the New York State Police conducted a traffic stop of a car defendant was driving on East Main Street in Rochester. As officers spoke with Payne, they smelled alcohol coming from inside the car, and also noticed a black semiautomatic handgun on the driver’s floor. The officers seized the loaded handgun, which had been reported stolen in Pennsylvania.
Payne was convicted in federal court in February 2012 of possessing a firearm in furtherance of a drug trafficking crime, and was under the supervision of the United States Probation Department at the time of this arrest. As a result, he is legally prohibited from possessing firearms and ammunition.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the New York State Police, under the direction of Major Barry Chase; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Federal Judge Hands Down 30-Month Prison Sentence to Charlotte-Area Tax Return Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced late yesterday former tax return preparer, Aminta Smith, 34, of Charlotte, to 30 months in prison, followed by one year of supervised release, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Smith to pay $171,017 as restitution. In May 2019, a federal jury convicted Smith of filing false tax returns for her clients and herself.
Brian G. Thomas, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax & Insurance Group, LLC. According to court records, between 2011 to 2016, Smith prepared fraudulent income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2011 to 2015, and in some years failing to disclose that she was in engaged in the operation of a tax preparation business. In total, Smith caused more than $1 million in tax loss to the IRS.
In May 2019, a federal jury convicted Smith of aiding and assisting in the filing of false tax returns and filing false tax returns for herself. Following the sentencing hearing, Smith was released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement Acting U.S. Attorney Stetzer commended special agents of IRS-Criminal Investigation for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case. Acting U.S. Attorney Stetzer also thanked the Department of Justice’s Tax Division for their invaluable assistance in this case.
Federal Contractor Indicted for Stealing over $1.2 Million from the U.S. Postal ServiceRead the Press Release
A federal grand jury indicted a construction contractor for stealing over $1.2 million from the United States Postal Service through a more than three-year scheme to defraud through false invoices, Acting United States Attorney Saima S. Mohsin announced today.
Mohsin was joined in the announcement by Steven Suller, Director of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.
Michael Rymar, 59, of Rochester Hills, stands charged with embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.
As part of the Indictment, the government is seeking recovery of at least $1.2 million in embezzled funds from Rymar.
Acting United States Attorney Mohsin stated, “Today’s indictment underscores our commitment to safeguarding taxpayer funds and to prosecute those individuals who use fraudulent schemes to line their pockets with the people’s money.”
“The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities,” said Director Steven Stuller, U.S. Postal Service Office of Inspector General. “Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum of ten years in prison and a fine of up to $250,000.
An indictment is only a charge and is not evidence of guilt.
The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
A federal grand jury indicted a construction contractor for stealing over $1.2 million from the United States Postal Service through a more than three-year scheme to defraud through false invoices, Acting United States Attorney Saima S. Mohsin announced today.
Mohsin was joined in the announcement by Steven Suller, Director of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.
Michael Rymar, 59, of Rochester Hills, stands charged with embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.
As part of the Indictment, the government is seeking recovery of at least $1.2 million in embezzled funds from Rymar.
Acting United States Attorney Mohsin stated, “Today’s indictment underscores our commitment to safeguarding taxpayer funds and to prosecute those individuals who use fraudulent schemes to line their pockets with the people’s money.”
“The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities,” said Director Steven Stuller, U.S. Postal Service Office of Inspector General. “Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum of ten years in prison and a fine of up to $250,000.
An indictment is only a charge and is not evidence of guilt.
The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Erie Man Admits Selling Fentanyl that Caused an Overdose DeathRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Derrick Lamont Hemphill, Sr., 30, pleaded guilty to one count of possession with intent to distribute a mixture and substance containing a detectable amount of fentanyl before United States District Judge David S. Cercone.
In connection with the guilty plea, Hemphill acknowledged that he sold fentanyl that caused the death of K.A.J. on November 26, 2017. The indictment also alleged that on November 26, 2017, Hemphill possessed with intent to distribute fentanyl and a heroin/fentanyl mixture.
Judge Cercone scheduled sentencing for August 9, 2021 at 1:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Erie County District Attorney’s Office County Detective Bureau, the Erie County District Attorney’s Office Drug Task Force, the Millcreek Township Police Department, and the Erie Police Department, with assistance from the Drug Enforcement Administration conducted the investigation that led to the prosecution of Hemphill.
Discord user pleads guilty to distributing child pornography involving infants and toddlersRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Corpus Christi man has admitting to sending videos depicting the sexual exploitation of children, announced Acting U.S. Attorney Jennifer B. Lowery.
In August 2020, authorities had linked Krystian Dari Ayala to a Discord account found to be sending child pornography. Discord is an application where users can chat, send pictures and videos to others and allows them to join chat rooms for specific topics.
The investigation resulted in a search of Ayala’s Discord account. It confirmed he had sent videos of child pornography to other Discord users. The investigation led authorities to Corpus Christi residence where they conducted a search and seized numerous electronic devices, some of which contained child pornography.
Ayala admitted he had utilized his cellphone to access the Discord application to distribute child pornography, some of which depicted the sexual abuse of infants and toddlers.
Sentencing has been set for June 16 before U.S. District Judge Nelva Gonzales Ramos. At that time, Ayala faces a mandatory minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine.
Ayala has been and will remain in custody pending that hearing.
The Washington State Police, Corpus Christi Police Department Internet Crimes Against Children Task Force and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sara Popejoy is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Cranston Man Admits Incinerating Providence Police Cruiser During Providence RiotRead the Press Release
PROVIDENCE – A Cranston man admitted to a federal court judge today that he sprayed a flammable liquid into a Providence Police Department cruiser causing a fire to intensify and destroy the vehicle moments after he and others unsuccessfully attempted to flip-over the cruiser during the June 2020 riots in downtown Providence.
Nicholas L. Scaglione, 31, admitted to the court that he climbed on top of the unoccupied marked Providence Police cruiser, threw an object at the vehicle, joined with others in an unsuccessful attempt to flip it onto its side, and then ultimately sprayed a flammable liquid into the cruiser.
Scaglione admitted that after another individual had poured an accelerant into the passenger side of the vehicle and applied a flame to the accelerant with only minimal success in starting a fire, Scaglione then sprayed a flammable liquid accelerant into the passenger compartment. Soon after, flames engulfed and destroyed the vehicle, rendering it unrecognizable.
According to information presented to the court, the FBI, Rhode Island State Police, and Providence Police, used a variety of investigative methods to identify Scaglione and determine the specifics of his crime,, including a review of video taken at the scene, witness statements, and cellphone records including text messages from Scaglione admitting that he burned the police cruiser. Scaglione said he did so because of anger towards law enforcement, and that he was willing to do it again.
Appearing today before U.S. District Court Judge Mary S. McElroy, Scaglione pleaded guilty to malicious attempt to damage or destroy a vehicle, announced Acting United States Attorney Richard B. Myrus, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Providence Police Chief Colonel Hugh T. Clements, Jr.
Scaglione is scheduled to be sentenced on June 16, 2021.
Attempted malicious destruction of a vehicle by fire is punishable by a statutory penalty of up to twenty years in federal prison, with a mandatory minimum term of five years of imprisonment, and a term of supervised release of three years.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Crack ring indicted for selling drugs in Galveston CountyRead the Press Release
GALVESTON, Texas – Seven members of a local drug distribution ring will now face federal charges for the preparation and sale of cocaine base to residents of La Marque and Texas City, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities arrested Smith Henry Jones, 40, and wife Lekisha Marie Jones, 42, both of Houston; and Harold Damon Brown, 43, and Dejon Nicole Thomas, 38; both of La Marque, today. They are expected to make their initial appearances before U.S. Magistrate Judge Sam Sheldon in Houston as early as 2 p.m. today.
Latoya Vonea Worthy, 30, La Marque, is also charged. Shane Alan Flores, 39, League City, was previously in custody and appeared via Zoom today. He is set for a detention hearing before U.S. Magistrate Judge Andrew Edison March 29 at 2 p.m. Ronnie LaShawn Allen, 41, Hitchcock; was also in custody and will be transferred to face the charges in this indictment in the near future.
A federal grand jury returned the seven-count indictment under seal March 16, which was unsealed today. It alleges all seven individuals conspired to possess with intent to distribute cocaine powder and crack between Feb. 16, 2017, and Feb. 26, 2019. Five of the counts allege Allen and Thomas possessed with intent to distribute either cocaine or crack. The Joneses are also charged with conspiracy to commit money laundering.
All face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine if convicted in the conspiracy. Those charged with the substantive drug counts could also receive up to 20 years and another $1 million maximum fine. The money laundering conspiracy carries a potential punishment of 20 years and a fine not to exceed $500,000 or twice the value of the property involved in the transaction.
The FBI conducted the investigation as part of the Coastal Safe Streets Task Force with the assistance of the LaMarque Police Department. Assistant U.S. Attorney Kenneth Cusick is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Columbus Resident Pleads Guilty to Robbing Wells Fargo BankRead the Press Release
COLUMBUS, Ga. – The man who robbed a Columbus Wells Fargo bank is facing a maximum 20 years in prison for his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Emory Fredrick, 57, of Columbus, pleaded guilty to one count bank robbery before U.S. District Judge Clay D. Land on Tuesday, March 23. Fredrick is facing a maximum 20 years imprisonment to be followed by three years of supervised release and a $250,000 fine. There is no parole in the federal system. Sentencing has been scheduled for July 14, 2021 in Columbus, Georgia.
“Robbing banks puts employees, community members and even the bank robber in danger. Such actions will not be tolerated,” said Acting U.S. Attorney Leary. “I want to thank the Columbus Police Department and the FBI for quickly apprehending the defendant and helping restore order to the Columbus community.”
“Fredrick's actions traumatized both bank employees and customers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to the FBI, Columbus Police Department and the public he was apprehended quickly and unable to threaten anyone else.”
“I am pleased with the successful prosecution of this case and I really appreciate the dedicated work of our officers and FBI. We will continue our partnership as we work to make Columbus a safe place to live,” said Chief Freddie Blackmon, Columbus Police Department.
On March 11, 2019, Fredrick entered the Wells Fargo Bank at 5538 Whittlesey Boulevard in Columbus, Georgia. He walked up to a teller and said, “This is a stickup.” Fredrick then instructed the teller to give him all large bills. The teller believed that Fredrick could have been armed because he kept messing with one of his pockets. The defendant collected the money into a grey bag he brought, a total of $1138, and walked out of the bank. The Columbus Police Department and FBI apprehended Fredrick within a few hours of the robbery, utilizing both images captured on security cameras at the scene as well as photos and verbal descriptions from bystanders leading to his quick capture.
The case was investigated by the Columbus Police Department and FBI. Assistant U.S. Attorney Amy Helmick is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Clarksburg man indicted on firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher M. Vickers, of Clarksburg, West Virginia, appeared today before a federal magistrate judge on a firearms charge after being indicted last week, Acting United States Attorney Randolph J. Bernard announced.
Vickers, 31, was indicted on one count of “Unlawful Possession of a Firearm.” Vickers, a person prohibited from having a firearm because of a prior drug conviction, is accused of having a 5-shot revolver in June 2020 in Harrison County.
Vickers 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Shinnston Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge Michael John Aloi presided.
Cedar Rapids Man Sentenced to Federal Prison for Possessing Drugs and Guns Near a SchoolRead the Press Release
A Cedar Rapids man, responsible for possessing over 130 grams of marijuana and two guns near a Cedar Rapids school, was sentenced today to 61 months in prison.
Sinqez Juanya Ray, age 19, from Cedar Rapids, Iowa, received the prison sentence after an October 21, 2020 guilty plea to possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Information disclosed at sentencing and at his plea hearing showed that in February 2020, Ray was stopped by Cedar Rapids police officers while he was walking near Prairie Ridge Elementary School and Kirkwood Community College. Ray was wearing a backpack. Officers immediately observed the magazine of a firearm and marijuana sticking out of the backpack. Officers searched the backpack and located 139.4 grams of marijuana, a ski mask, digital scales, and two guns, one of which was loaded. Ray admitted that he planned to sell the marijuana and that he carried the firearms in furtherance of his drug distribution activities. Ray has two prior weapons convictions, both from 2019.
Ray was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ray was sentenced to 61 months’ imprisonment. He was ordered to make payment of $200 to the special assessment fund. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also 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; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-31.
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Brockton Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Brockton man pleaded guilty today to distributing fentanyl throughout southeastern Massachusetts.
Eric Marques, 29, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more fentanyl. U.S. District Court Judge Patti B. Saris scheduled sentencing for July 14, 2021.
In 2019 and 2020, law enforcement conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. A cooperating witness and undercover police officer purchased a total of 180 grams of fentanyl and 260 pressed fentanyl pills from Marques. Marques was arrested on March 16, 2020. A search of residences tied to Marques in Brockton and Bridgewater resulted in the seizure of $10,700 in cash, bags of fentanyl, a digital scale and other drug packaging materials.
The charging statute provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; East Bridgewater Police Chief Paul O’Brien; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Armed Career Criminal Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Larnerd, age 47, of Lebanon, Pennsylvania, was convicted yesterday by a federal jury for possession with the intent to distribute methamphetamine; for being a previously convicted felon in possession of a firearm; and maintaining a drug involved premises, after a three-day trial held before United States District Court Judge Jennifer Wilson. Larnerd faces a potential 15 year mandatory minimum sentence as a result of three prior convictions for serious drug offenses.
According to Acting United States Attorney Bruce D. Brandler, the jury returned the guilty verdict after approximately two hours of deliberation. The evidence at trial showed that during May of 2019, the North Cornwall Township Police received information that Larnerd was selling drugs and possessed firearms at his residence in Lebanon County. Based on that information, the North Cornwall Police applied for and obtained a search warrant for Larnerd’s residence in June 2019.
During execution of the warrant, the police found a Highpoint 9mm C9 Luger handgun in Larnerd’s second floor bedroom, and a Highpoint Model CF380 ACP handgun in a downstairs closet. There were also small amounts of marijuana and methamphetamine scattered about the house. Witnesses testified that Larnerd sold them methamphetamine from the residence and possessed the firearms.
The case was investigated by the North Cornwall Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Johnny Baer and Christian Haugsby are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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 a term of life 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. Larnerd’s conviction for illegal firearm possession carries a 15-year mandatory sentence.
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Alien Pleads Guilty to Transporting and Harboring Illegal AliensRead the Press Release
Jackson, Miss. – Dennis Omar Escobar-Castro, age 29, a Honduran national, pled guilty today before U.S. District Judge Carlton Reeves to transporting and harboring illegal aliens, announced Acting United States Attorney Darren J. LaMarca and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New Orleans Field Office.
“Interstate human trafficking remains a major threat,” said Acting U.S. Attorney Darren LaMarca. “These arrests affirm the Department of Justice’s commitment to prosecuting those who prey on the desperate and vulnerable to exacerbate violations of our immigration laws.”
On March 19, 2019, Escobar-Castro was traveling eastbound on Interstate I-20 in a Chevy Suburban when a Rankin County Sheriff’s Deputy made a traffic stop for careless driving. Escobar-Castro could produce no driver’s license, and none of the eleven passengers had identification or driver’s licenses, other than South American IDs. HSI agents interviewed Escobar-Castro and the eleven passengers. Escobar-Castro admitted that he believed all his passengers were foreign nationals and that he had been driving them from Houston, Texas, to Atlanta, Georgia to take them to work.
Escobar-Castro was charged in a federal criminal indictment on April 16, 2019 with transporting and harboring aliens. During his guilty plea hearing today, Escobar-Castro admitted to being paid for driving the passengers whom he knew to be aliens unlawfully present in the United States.
Escobar-Castro will be sentenced by Judge Reeves on July 8, 2021 and faces a maximum penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with HSI’s Jackson Division who investigated the case, and the Rankin County Sheriff’s Office who assisted with the discovery and arrest of defendants. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Additional Charges for Fresno Man for Illegal Possession of a Machine Gun and AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count superseding indictment today against Steven Eric Cabrera, 25, of Fresno, adding one count of illegally possessing a machine gun and one count of being a felon in possession of ammunition to the original Feb. 11 indictment that charged him with one count of being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2017, Cabrera was convicted of assaulting a person with a firearm, a felony that makes it illegal for him to possess firearms or ammunition. In May 2020, he possessed a firearm that was hidden wrapped in a towel in a bag inside a car. About nine months later, he possessed a handgun that had been converted into a machine gun and over 300 rounds of ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Cabrera faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Acting U.S. Attorney Phil Talbert offers a statement of support for the Asian American Pacific Islander Community (AAPI) amidst rising Anti-AAPI hate crimes and incidents.Read the Press Release
Acting U.S. Attorney Phillip A. Talbert and FBI Sacramento Field Office Special Agent in Charge Sean Ragan condemn racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders and urge members of the community to report hate-based crimes and incidents to law enforcement. The Eastern District of California is one of the most diverse regions in the country, and federal law enforcement is committed to protecting our diverse communities.
“We stand together with the Asian American and Pacific Islander community during this difficult time. Acts of hate and racism have no place in our community and will not be tolerated,” said Acting U.S. Attorney Talbert. “We want to ensure that all those who call this region their home feel safe regardless of their race, ethnic origin, color, religion, gender, sexual orientation, or disability. Prosecuting hate crimes continues to be a top priority for our office and our law enforcement partners and our Hate Crimes Task Forces remain active. If you see something, please say something by contacting law enforcement so that we can do everything we can to help stop hate crime and protect the community.”
The United States Attorney’s Office has been in regular and ongoing contact with Asian American and Pacific Islander community leaders and our local and federal law enforcement partners regarding potential hate crimes directed at persons of Asian descent. Tonight, Acting U.S. Attorney Talbert will be joining other federal and local law enforcement leaders and elected representatives to speak at a town hall to address anti-Asian hate crimes. Acting U.S. Attorney Talbert also released a Public Service Announcement encouraging community members to report hate crimes and incidents: https://www.justice.gov/usao-edca/pr/acting-us-attorney-phil-talbert-offers-statement-support-asian-american-pacific.
“The FBI has been reaching out to and working with the API community to increase understanding of our role in investigating hate crime, encourage reporting of hate crimes, and continue to increase diversity and inclusion within our work force,” said Special Agent in Charge Ragan. “A criminal act committed against a person because of their ethnicity or national origin is a hate crime. Such investigations are a high priority for the FBI’s civil rights program because of the profound and lasting impact such acts have on entire communities. We affirm our commitment to thoroughly investigating the facts of alleged hate crimes and continue to work closely with our law enforcement partners and the U.S. Attorney’s Office to ensure offenders face justice.”
If you are a victim of a hate crime and are in immediate danger, call 911 first. Once you are safe, please also report the hate crime to the FBI by calling 916-746-7000. This FBI tip line offers language translation services in many languages spoken in our region, including Chinese, Korean, Tagalog, and Vietnamese. When calling, please provide basic information to help us investigate— the who, what, when, where, and why. If you wish, you can make your tip anonymously.
Wednesday 24 March 2021
Zuni man pleads guilty in federal court to sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Byron Calavaza, 33, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, pleaded guilty March 23 in federal court to four counts of committing sexual abuse of a minor in Indian Country.
According to the plea agreement, Calavaza sexually abused the victim between Dec. 25, 2017, and Jan. 21, 2018, at a home on the Pueblo of Zuni. Calavaza admitted in the plea agreement to committing intentional and unlawful sexual abuse of the victim, who was between the age of twelve and fifteen, with the intent to gratify his sexual desires.
Calavaza is currently in custody awaiting sentencing. He faces five years in prison under the terms of his plea agreement. Additionally, should the court accept the plea agreement, Calavaza will be required to register as a sex offender upon his release from prison.
The Zuni Police Department investigated the case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Waterbury Felon Sentenced to 42 Months in Prison for Possessing Handgun on Federal Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DESI WILLIAMS, 40, of Waterbury, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 42 months and one day of imprisonment, followed by three years of supervised release, for illegally possessing a firearm while on federal supervised release.
According to court documents and statements made in court, in the afternoon of January 28, 2019, Waterbury Police officers attempted to stop a car Williams was driving at the intersection of Brass Mill Drive and Union Street for motor vehicle violations. When an officer approached the car on foot, Williams accelerated and fled from the scene. During a subsequent pursuit, Williams rammed three police vehicles before crashing his car into a utility pole on Walnut Street. Williams ran from the car, jumped over a fence and was eventually apprehended on Ives Street. A search of Williams’s car revealed a loaded Smith & Wesson .22 caliber revolver.
In 2016, Williams was convicted in federal court of possession of a firearm by a convicted felon, and he was on federal supervised release in January 2019. Prior to 2016, Williams was convicted in state court of felony robbery, burglary and failure to appear offenses.
Williams has been detained since January 28, 2019. On June 11, 2020, he pleaded guilty to possession of a firearm by a convicted felon.
Judge Hall sentenced Williams to 30 months of imprisonment for the new firearm offense, and a consecutive 12 months and one day of imprisonment for violating the conditions of his supervised release.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterbury Police Department. This case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Peter D. Markle.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Valley felon headed back to prison for alien smuggling and firearmsRead the Press Release
McALLEN, Texas – A 46-year-old Edinburg resident has been ordered to federal prison for conspiring to harbor illegal aliens and possessing a firearm as a convicted felon, announced Acting U.S. Attorney Jennifer B. Lowery.
Noe Garza pleaded guilty Nov. 2, 2020.
Today, U.S. District Judge Micaela Alvarez ordered Garza to serve a total of 63 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information related to his criminal record to include prior convictions for aggravated assault and aggravated robbery. In handing down the sentence, Judge Alvarez noted Garza had been breaking the law since he was 17. She added that she was particularly troubled Garza committed these crimes while having a pending alien transportation case from 2016 and failed to appear for sentencing.
On Feb. 28, 2020, law enforcement conducted a traffic stop on Garza, but he fled the scene. Authorities soon apprehended him, at which time he admitted to being the caretaker of a stash house in Edinburg and helping coordinate transportation of illegal aliens further north. A search of the residence revealed five illegal aliens and two firearms. Law enforcement also found an additional firearm in the area of the traffic stop. Garza took ownership of all three firearms.
As a previously convicted felon, federal law prohibits him of possessing firearms or ammunition.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Edinburg Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Two Raleigh Men Pled Guilty to Bank FraudRead the Press Release
RALEIGH, N.C. –Rahne Cooper, age 31, and Darius Hinton, age 31, pled guilty to bank fraud before Magistrate Judge Robert T. Numbers, III, in federal District Court today.
Both men admitted using synthetic identities to obtain loans from financial institutions. A synthetic identity, often referred to as a CPN or credit privacy number, looks like a nine-digit social security number. Often, the CPN was actually issued by the Social Security Administration to a real individual. Individuals with poor credit scores use CPNs to build fresh credit by adding the CPN to their names and dates of birth. To enhance the credit worthiness, the new credit profile is added as authorized users on credit accounts belonging to individuals with good credit.
Cooper used a synthetic identity to finance the purchase of a car and Hinton used one to purchase John Deere lawn equipment from Quality Equipment. Each man faces a maximum penalty of 30 years’ in prison, a $1,000,000 fine, restitution and forfeiture.
Cooper and Hinton were charged along with Durham Attorney Tiffany Russell in a 26-count Indictment. Russell’s arraignment is scheduled for the May 17, 2021 term of court before District Judge James C. Dever III.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, Social Security Administration, and Raleigh Police Department have jointly investigated the case and Assistant U.S. Attorney Susan Menzer is prosecuting the case.
Two Luzerne County Men Indicted for Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lee Crawford, age 59, of Wilkes-Barre, Pennsylvania and John Williams, age 41, of Kingston, Pennsylvania, were indicted on March 23, 2021, by a federal grand jury for conspiring to distribute more than 40 grams of fentanyl in Luzerne County.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Crawford and Williams conspired to distribute more than 40 grams of fentanyl in the Luzerne County area between July 2020 and February 2021. The indictment also charges Crawford with nine counts of distributing fentanyl and charges Williams with one count of distributing fentanyl.
The case was investigated by the Kingston Police Department, the Bureau of Alcohol Tobacco and Firearms, and the Luzerne County Drug Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and 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.
Under federal law, Crawford faces a mandatory minimum sentence of ten years in prison, up to a maximum sentence of life in prison, a term of supervised release following imprisonment, and a fine. Williams faces a mandatory minimum sentence of five years in prison, up to a maximum sentence of forty years in prison, 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 $24 Million COVID-Relief Fraud SchemeRead the Press Release
A Texas man pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.
According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans. Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications. Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”
“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”
“We will continue to vigorously investigate cases involving attempts to defraud the Paycheck Protection Program and other crimes against the financial institutions the FDIC insures and regulates,” said Special Agent in Charge Anand M. Ramlall of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “Sah’s egregious fraud committed to fund his luxurious lifestyle is unacceptable under any circumstances, but especially so when done against a program designed to help Americans recover from the ongoing pandemic. We appreciate the cooperation and coordination of our law-enforcement partners on these types of investigations.”
Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah agreed to forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government has seized to date.
Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.
Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sumrall Man Sentenced for Tax FraudRead the Press Release
Gulfport, Miss. – Charles Chandler Smith, 43, of Sumrall, Mississippi, was sentenced today by U.S. District Judge Keith Starrett to five years’ probation for filing a false tax return, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge James E. Dorsey of the Internal Revenue Service Criminal Investigation, Atlanta Field Office. Smith was also ordered to pay a $494,444 in restitution.
Smith pled guilty before Judge Starrett on December 14, 2020. According to the facts revealed at this plea hearing, Smith took advantage of a tax deduction strategy suggested by a financial adviser to deduct money on his tax return and thereby reduce his taxable income. Smith admitted to transferring a total of $1,305,090 from an account held by his business, Lil Mad, to another company and falsely claiming it as a business expense deduction on his 2014 tax return. Smith falsely claimed that his income with Lil Mad was only $143,070. Smith admitted to knowing this act was unlawful or deliberately blinded himself to suspicious aspects of the deduction, particularly the fact that the money was soon transferred back to an account that was available to Smith for his personal use.
The case was investigated by IRS Criminal Investigation and the FBI. It was prosecuted by DOJ Health Care Fraud Trial Attorney Sara Porter and Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Springfield Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute large amounts of methamphetamine.
Richard G. Wacker, 61, was sentenced by U.S. District Judge Stephen R. Bough to 20 years in federal prison without parole.
On Jan. 10, 2020, Wacker pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Missouri, from March 30 to Aug. 30, 2017.
Wacker admitted that he traveled to Kansas City on several occasions to purchase a half-pound of methamphetamine. After making two trips with co-defendant Ronald A. Stone, 53, of Springfield, Wacker directed Stone to make the trips alone every two to three days. Stone purchased two pounds on each trip, one pound for himself and one pound for Wacker.
Wacker also admitted that he drove to Oklahoma City on at least three occasions, each time to purchase five kilograms of methamphetamine for $45,000.
Springfield police officers executed search warrants at Stone’s residence twice in 2017. On each occasion, officers seized firearms and methamphetamine. On Aug. 29, 2017, Missouri State Highway Patrol troopers stopped Stone’s vehicle and seized three large bags that contained a total of approximately 6.8 pounds of methamphetamine.
Wacker is the third and final defendant to be sentenced in this case. Stone was sentenced on Sept. 25, 2020, to 20 years in federal prison without parole after pleading guilty to the drug-trafficking conspiracy, to possessing methamphetamine to distribute, and to possessing firearms in furtherance of drug trafficking. Carol A. Hardy, also known as Carol A. Johnson, 51, of Mountain Grove, Mo., also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Dec. 14, 2018, to 20 years in federal prison without parole. Law enforcement officers executed a search warrant at Hardy’s residence and found 1.766 kilograms of methamphetamine in a safe on the floor of a bedroom closet.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Snowmobile Rider Sentenced to Federal Prison for Assaulting HomeownerRead the Press Release
Acting United States Attorney Bob Murray announced today that CHARLES CHRISTOPHER LAMBERT, a.k.a. Charlie Lonedog Jr., 31, was sentenced in U.S. District Court. Lambert was charged with assault with a dangerous weapon with intent to do bodily harm and assault resulting in serious bodily injury, pleading guilty to the later charge. Lambert was sentenced to twenty-six months in prison. Chief Federal District Judge Scott W. Skavdahl handed down Lambert’s sentence.
On April 12, 2020, Lambert had been snowmobiling in Arapahoe, Wyoming near the victim’s house and initially left the area when asked, but later returned. When Lambert was again confronted and asked to stop riding the snowmobile behind the residence, he got off the snowmobile and used his helmet as a weapon to strike the victim twice in the side of the face and head. The assault caused serious facial and eye damage which required surgery to avoid life-long consequences.
Acting United States Attorney Bob Murray said, “Something as seemingly harmless as asking someone to stop riding their snowmobile on your property should not result in a violent assault. Everyone has the right to live in peace and safety. The Officers of the Bureau of Indian Affairs and the Special Agents of the Federal Bureau of Investigation work tirelessly to keep the reservation community safe and our office will always support those efforts.”
Upon Lambert’s release from prison he will be on supervised release for thirty-six months and was ordered to pay a $100.00 special assessment with restitution to remain open for ninety days. Assistant United States Attorney Kerry Jacobson represented the government and the case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and Fremont County Sherriff’s Office.
Rural/Metro Corporation Agrees to Pay $650,000 to Settle Civil False Claims Relating to Ambulance ServicesRead the Press Release
Orlando, FL – Acting United States Attorney Karin Hoppmann announces today that Rural/Metro Corporation has agreed to pay the United States $650,000 to resolve allegations that it violated the False Claims Act by submitting fraudulent claims to Medicare for ambulance transports.
According to the settlement agreement, from January 1, 2010, through December 31, 2016, Rural/Metro submitted claims to Medicare for basic life support, non-emergency services performed in the Middle District of Florida, which the United States contends lacked medical necessity because the patients who were transported either did not qualify for such services or did not require ambulance transport. As such, these services were non-reimbursable by Medicare. The United States also contends that the reasons for these transports was improperly documented.
“Ambulance transportation services are often necessary, and sometimes critical, for seniors and other Medicare beneficiaries,” said Acting U.S. Attorney Karin Hoppmann. “We will continue to protect the integrity of our federal health care programs by ensuring that the services rendered, and billed for, are actually necessary and appropriate under the law.”
This settlement resulted from an investigation coordinated by Assistant U.S. Attorneys Jeremy R. Bloor and Kelley Howard-Allen, with assistance from the U.S. Department of Health and Human Services, Office of Inspector General. The settlement resolves the United States’ claims. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Rochester Man Pleads Guilty to Failing to Pay Thousands of Dollars Owed to the IRSRead 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 Jonathan Botier, 47, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that from January 2012 through March 2016, the defendant worked at Unity Health System in Rochester. Botier then worked for other medical facilities in the New York City area. While working at Unity Health System and the other facilities, the defendant submitted fraudulent W-4 forms to his employers stating that he was exempt from having taxes withheld from his income or that he should have a reduced amount of taxes withheld based on a fraudulent number of allowances reported on the W-4 forms. This resulted in Botier’s employers not withholding or significantly under-withholding federal income taxes from the defendant’s wages and thus not forwarding the appropriate amount of federal income taxes to the Internal Revenue Service on behalf of Botier.
For the years 2012 through 2018, the defendant received total wages of approximately $832,032 and owed the Internal Revenue Service approximately $181,911 in federal income taxes. However, Botier failed to file a federal income tax return for each of those years and failed to pay the vast majority of federal income taxes he owed to the Internal Revenue Service.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for June 10, 2021, before Judge Geraci.
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Rochester Fentanyl Dealer Pleads GuiltyRead 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 Devonnte White, 29, of Huntersville, North Carolina, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possessing with intent to distribute 400 grams or more of fentanyl. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that the defendant was arrested January 15, 2021, following the execution of a federal search warrant at an apartment on Court Street in Rochester. When law enforcement officers entered the apartment, which was occupied only by White, the defendant dropped two bags of fentanyl to the floor. Investigators recovered a total of 1.5 kilograms of fentanyl, 979 grams of cocaine, and 571 grams of heroin from inside the apartment, as well as scales, bags, diluents for processing narcotics for distribution, five cell phones, and $3,954 in U.S. currency.
The plea was the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for June 23, 2021, at 2:00 p.m. before Judge Wolford.
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Readout of U.S. Attorney General Merrick B. Garland’s Participation in the Virtual Ministerial with Home Affairs Ministers of the G6 CountriesRead the Press Release
Earlier today, U.S. Attorney General Merrick B. Garland met virtually with the Home Affairs Ministers of France, Germany, Italy, Poland, Spain, and the United Kingdom to advance cooperation against transnational crime, terrorism, and malign foreign interference. During the constructive dialogue, leaders discussed enhancing international sharing of law enforcement information, including through INTERPOL, and also addressed particular threats such as online child sexual exploitation and abuse, and trafficking and smuggling of humans. The ministerial was the Attorney General’s first international engagement in office.
U.S. Attorney General Garland was joined by U.S. Department of Homeland Security (DHS) Secretary Alejandro Mayorkas. The meeting was hosted and chaired by United Kingdom Home Secretary Priti Patel. Other G6 attendees included French Interior Minister Gerald Darmanin, German Interior Minister Horst Seehofer, Italian Interior Minister Luciana Lamorgese, Polish Interior Minister Mariusz Kamiński, Spanish Interior Minister Fernando Grande-Marlaska, EU Vice-President Margaritis Schinas, and EU Commissioner Ylva Johansson.
Attorney General Garland addresses officials of the G6 CountriesRaleigh Woman Pleads Guilty to Filing False Priority Mail Insurance ClaimsRead the Press Release
RALEIGH, N.C. – A Raleigh woman pleaded guilty today to Mail Fraud, in violation of Title 18, United States Code, Section 1341.
According to court documents, Jasmine Shyann Frederick, 32, of Raleigh, admitted to carrying out a scheme to profit from the filing of false Priority Mail insurance claims.
The Criminal Information, to which the defendant pled guilty, states that the United States Postal Service (USPS) insures Priority Mail packages up to $100. To qualify for payment, the addressee or sender must send proof of the cost or value of the lost or damaged item, either online or by mail. Applicants for insurance payments must certify the truthfulness of their submissions.
The Criminal Information further alleges that between December of 2017, and continuing to July of 2019, the defendant submitted and caused to be submitted hundreds of false insurance claims for Priority Mail packages shipped by the USPS. Using USPS.com accounts in her name, and that of her sister, the defendant uploaded stock pictures of allegedly lost or damaged merchandise. The defendant also supplied Priority Mail tracking numbers acquired online.
The Criminal Information further alleges that the USPS mailed numerous insurance claim checks to the defendant’s home in Raleigh. The defendant deposited these checks into her bank accounts or cashed them through her sister’s accounts. In total, the defendant negotiated and caused to be negotiated $38,614.74 in claim checks she received through the scheme.
Frederick pleaded guilty to Mail Fraud, in violation of Title 18, United States Code, Section 1341, and faces a up to 20 years in prison when sentenced in June of 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the plea. The United States Postal Inspection Service is investigating the case and Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00080-D-1.
Popular Instagram Personality Known as “Jay Mazini” Charged with Wire FraudRead the Press Release
A complaint was filed in federal court in Brooklyn yesterday charging Jegara Igbara, also known as “Jay Mazini,” with wire fraud related to a scheme in which the defendant allegedly induced victims to send him Bitcoin by falsely claiming to have sent wire transfers of cash in exchange for the Bitcoin. In reality, Igbara never sent the money, and stole at least $2.5 million worth of Bitcoin from victims. Igbara is currently being held on state charges in New Jersey and will make his initial appearance in the Eastern District of New York at a later date.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the charge.
“As alleged, Igbara used his immense social media popularity to dupe his followers into selling him Bitcoin,” stated Acting United States Attorney Lesko. “This Office will continue to work closely with its law enforcement partners to stop fraudsters like the defendant from perpetrating social media scams that prey on innocent victims.”
“As we allege, Igbara’s social media persona served as a backdrop for enticing victims to sell him their Bitcoin at attractive, but inflated, values. A behind-the-scenes look, however, revealed things aren’t always as they seem. There was nothing philanthropic about the Bitcoin transactions Igbara engaged in with his victims. A quick search of the Interwebs today will reveal an entirely different image of this multimillion-dollar scammer.” stated FBI Assistant Director-in-Charge Sweeney. “If anyone out there has information about this case, we urge you to file a complaint online at tips.fbi.gov.”
“Buyer beware when making purchases of Bitcoin or any other cryptocurrency over social media,” stated IRS-CI Special Agent-in-Charge Larsen. “This defendant allegedly used his online popularity to defraud those seeking to exchange Bitcoin for cash above the market value. Always be on your guard and don’t fall prey to these cryptocurrency schemes.”
As set forth in the complaint, up until March 2021, Igbara, under the name “Jay Mazini,” maintained a popular Instagram account with nearly one million followers where he would post videos depicting himself handing out large amounts of cash to individuals as gifts. Beginning in or around January 2021, Igbara began posting videos to his Instagram account offering to buy Bitcoin from other Instagram users at prices 3.5% to 5% over market value. Igbara claimed that he was willing to pay above-market prices because the traditional Bitcoin exchanges were limiting how much Bitcoin he could purchase. When victims agreed to transact in Bitcoin with Igbara, he sent them documents that included images of purported wire transfer confirmation pages that falsely confirmed Igbara had sent a wire transfer for the promised amounts. In response, the victims supplied Igbara with the Bitcoin, but the promised wire transfers never arrived. Bank records showed that, as to at least one victim, Igbara did not have funds in the account identified in the wire transfer receipt that were sufficient to cover the wire transfer he had promised to make.
This investigation remains ongoing, and anyone who thinks they may have been a victim of this scheme is asked to file a complaint online with the FBI at tips.fbi.gov.
The charge in the indictment is an allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Igbara faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Nathan Reilly and Lauren Howard Elbert are in charge of the prosecution.
The Defendant:
JEBERA IGBARA (also known as “Jay Mazini”)
Age: 25
Edgewater, New JerseyE.D.N.Y. Docket No.: 20-MJ-356
Pflugerville Woman Sentenced to Federal Prison for Fraud and Tax Evasion SchemeRead the Press Release
In Austin, a federal judge sentenced 50-year-old Nicky Osborne, a former Pflugerville trucking company Chief Financial Officer, to 46 months in federal prison and to pay more than $8 million in restitution for a fraud and tax evasion scheme, announced U.S. Attorney Ashley C. Hoff; Special Agent in Charge Richard D. Goss, Internal Revenue Service Criminal Investigation (IRS CI), Houston Field Office; and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the 46-month prison term handed down yesterday afternoon, U.S. District Judge Robert Pitman ordered Osborne to pay $7,479,179.39 in restitution to ProBilling and Fund Service of Alabama and $596,425 in restitution to the IRS. Judge Pitman also ordered that Osborne be placed on supervised release for a period of five years after completing her prison term.
On February 25, 2020, Osborne pleaded guilty to one count of wire fraud and one count of making a false statement on an income tax return. By pleading guilty, Osborne admitted that while employed at Bison Global Logistics of Pflugerville between 2012 and 2017, she schemed to submit false and inflated receivables to financing companies. Osborne also earned a substantial income at Bison and failed to report commissions from her fraud scheme as income.
“The role of IRS Criminal Investigation becomes even more important in investigating wire fraud schemes due to the complex financial transactions that can take time to unravel,” said IRS CI Special Agent in Charge Goss. “Additionally, federal tax laws are also typically violated in these types of cases which can add to additional jail time. IRS CI Special Agents are skilled at investigating all types of tax and related financial crimes and this sentencing is a testament to that hard work and commitment.”
“The FBI is committed to fight fraud at every level. This case is the result of patient, detail-oriented, hard work. I'd like to thank our dedicated team as well as our IRS partners for their continued support to the FBI mission,” said FBI Special Agent in Charge Combs.
The IRS CI and FBI investigated this case. Assistant U.S. Attorney Michelle Fernald prosecuted this case.
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Owner of Plumbing Businesses Pleads Guilty to Employment Tax FraudRead the Press Release
A Montana businessman pleaded guilty today to employment tax fraud.
According to court documents, Thomas O’Connell owned and operated three plumbing businesses, Quality Plumbing and Heating, Orbit Plumbing and Heating, and Orbit PHC, each based in Great Falls. From at least 2005 through 2016, O’Connell did not pay employment taxes for several quarters, despite being obligated to ensure such taxes were paid to the IRS. Instead, he directed payments to other creditors and to his own personal expenses. The total tax loss to the IRS from O’Connell’s conduct is more than $550,000.
O’Connell is scheduled to be sentenced on June 24, 2021, and faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Leif M. Johnson for the District of Montana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Mark S. Determan of the Justice Department’s Tax Division and Assistant U.S. Attorney Ryan G. Weldon of the District of Montana are prosecuting the case.
Owner of Anaheim-Based Company Faces Additional Charges Related to Nearly $30 Million in Payroll Taxes Owed to IRSRead the Press Release
SANTA ANA, California – The owner of Orange County-based temporary staffing companies, who previously was charged with failing to pay more than $29 million in payroll taxes, was indicted today on six additional federal charges that he caused one of his companies to file false tax returns that failed to report an additional $29.6 million in payroll taxes.
Luis E. Perez, 52, who has maintained residences in Anaheim Hills, Yorba Linda, and Dove Canyon, was charged with six counts of aiding and assisting in the preparation of false tax returns. The charges carry an additional penalty for being offenses committed while Perez was free on bond after the initial tax evasion count was filed against him. Perez initially was charged in this case in early 2018 and a May 11 trial date is on calendar. His arraignment on today’s indictment is scheduled for April 5.
Perez’s companies – which include Checkmates Staffing Inc.; Staffaid Inc.; BaronHR, LLC; BaronHR West Inc.; and Fortress Holding Group LLC – were required to withhold taxes from employee wages and to pay the withheld amounts to the IRS on a periodic basis. These withheld taxes, sometimes known as “trust fund taxes,” include income taxes and Federal Insurance Contributions Act (FICA) taxes that fund Social Security and Medicare. In additional, Perez’s companies, as employers, were required to pay matching FICA taxes imposed at the employer level. Collectively, trust fund taxes and employer FICA taxes are generally referred to as “payroll taxes.”
According to a second superseding indictment that a federal grand jury returned today, Perez caused the Anaheim-based temporary staffing company BaronHR West Inc. to substantially underreport employee wages and other compensation, which resulted in the company’s failure to report and pay $29,633,516 in payroll taxes to the IRS. From October 2018 to August 2019, Perez willfully aided and assisted in the preparation of false tax returns that substantially understated the wages paid to BaronHR West employees from January 2018 through June 2019, the indictment alleges.
Perez allegedly committed these crimes while charged with tax evasion. According to a previous indictment in this case that a federal grand jury returned in August 2019, for the tax years 2001, 2002, 2003, 2006, 2007, 2008 and 2010, Perez’s companies failed to pay the IRS the payroll taxes, including trust fund taxes that Perez’s companies withheld from employees’ paychecks. Beginning in June 2007, the IRS attempted to collect Perez’s outstanding tax liability, including penalties and interest. By February 2017, the outstanding balance had grown to $29,593,378, which included the unpaid taxes, interest and the “Trust Fund Recovery Penalty.”
Perez allegedly attempted to thwart the IRS’s collection efforts by purchasing luxury items – including numerous cars and a boat – and concealing his ownership by placing the titles of these items in the names of his businesses and other individuals. Those luxury items included a 2005 Ferrari 360 Spider F, a 2007 Rolls Royce Phantom, a Duffy D 22 Bay Island boat, a 2011 Mercedes-Benz SLS, a 2015 Mercedes-Benz G-Class, and a 2014 Lamborghini Aventador, according to the indictment.
As part of his efforts to impede the IRS, Perez allegedly made false statements to IRS revenue officers during interviews and failed to include material information in documents submitted to the IRS.
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.
If convicted of all charges, Perez would face a statutory maximum sentence of 33 years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Brett A. Sagel of the Santa Ana Branch Office and James C. Hughes of the Major Frauds Section are prosecuting this case.
Ocean Springs Men Sentenced to Federal Prison for Conspiring to Commit Health Care FraudRead the Press Release
Hattiesburg, Miss. – Dempsey “Bryan” Levi, 51, and Jeffrey Wayne Rollins, 44, of Ocean Springs, were sentenced today by U.S. District Judge Keith Starrett for their role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their family members, as well as private health care benefit programs, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation in Mississippi.
Both Levi and Rollins were sentenced to serve 84 months in federal prison, followed by three years of supervised release, and pay $16,333,583 in restitution to Medicare, Tricare and Express Scripts. Additionally, the government received a forfeiture of $924,114.40.
Rollins and Levi previously pled guilty to conspiracy to commit health care fraud. At their guilty plea hearings, the defendants admitted to operating The Gardens Pharmacy, LLC, an open-door retail pharmacy that specialized in the production of compound medications, and in their positions, they solicited recruiters to obtain prescriptions for high-adjudicating compounded medications that were often ordered with numerous refills. The recruiters were paid a percentage of the reimbursements that health care benefit programs paid to the pharmacy, including for Medicare and TRICARE beneficiaries, even though it is unlawful to pay commissions to distributors on referrals to federal programs. Rollins and Levi assisted in formulating compound medications that were targeted to maximize reimbursements, irrespective of medical necessity. They also admitted to soliciting and incentivizing doctors to authorize prescriptions for the high-adjudicating compounded medications.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk, and Trial Attorneys Dustin Davis and Sara Porter from the DOJ Criminal Division’s Fraud Section.
Northridge Man Sentenced to 33 Months in Prison for Sales of Black Market Drugs to Unsuspecting Prescription Drug CustomersRead the Press Release
SAN FRANCISCO – Hakob Kojoyan was sentenced today in United States District Court to 33 months in prison and ordered to forfeit his Palm Springs house for participating in a scheme involving the unlicensed wholesale distribution of prescription drugs, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable Richard Seeborg, United States District Judge.
Kojoyan, 29, of Northridge, California, admitted that he engaged in a scheme from February 2017 to April 2018 to distribute illegally obtained prescription drugs to unsuspecting purchasers. In his plea agreement, Kojoyan stated that he and his associates used a Pennsylvania company, Mainspring Distribution LLC (Mainspring), to pose as legitimate prescription drug wholesalers. They then obtained prescription drugs from unlicensed, black market sources in California. They sold the drugs through Mainspring to unknowing wholesale customers, falsely representing that the drugs were legitimately sourced from licensed suppliers. Kojoyan and his co-defendants avoided dealing in generic drugs and instead specialized in expensive name-brand prescription drugs used to treat HIV, such as Atripla. Kojoyan himself also supplied prescription drugs for such resale, though he had no license to do so.
In a memo filed for the sentencing, the government pointed out that to combat prescription drug fraud, Congress mandated prescription drug wholesalers provide their customers with detailed information about the drugs they sell, including a transaction history tracing the drugs back to their licensed manufacturer. The government asserted Kojoyan and his co-conspirators knew about these federal regulations designed to protect vulnerable patients, and they worked diligently to evade them. They stole the identity of a licensed prescription drug company supplier in California and prepared paperwork falsely suggesting their drugs came from that supplier. The government described how they further mimicked the appearance of a legitimate supply chain by opening bank accounts in names misleadingly similar to the licensed supplier and routing the proceeds of their fraudulent sales through the accounts.
The government further asserted that bank accounts under the control of Kojoyan received approximately $2.2 million from Mainspring-associated accounts, much of which was laundered and distributed to co-conspirators. Kojoyan’s earnings were invested into a house in Palm Springs, which the Court ordered forfeited to the government.
The government filed a superseding information on July 6, 2020, charging Kojoyan with unlicensed wholesale distribution of prescription drugs, in violation of 21 U.S.C. §§ 331(t), 333(b)(1)(D), 353(e)(1). On July 15, 2020, Kojoyan entered a guilty plea to the charge.
In addition to sentencing Kojoyan to a prison term of 33 months and ordering the forfeiture of his Palm Springs house, U.S. District Judge Richard Seeborg also sentenced Kojoyan to a three-year period of supervised release to follow his prison term. The defendant remains out of custody on bond and was ordered to surrender to begin his sentence on June 2, 2021.This case is being prosecuted by the Corporate Fraud Strike Force of the United States Attorney’s Office. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
New London Man Sentenced to Prison for Drug OffensesRead the Press Release
DAVENPORT, Iowa — On Friday, March 19, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jason Earl Davis, age 43, of New London, to 240 months in prison for Conspiracy to Distribute Controlled Substances announced Acting United States Attorney Richard D. Westphal. Following his prison term, Davis was ordered to serve five years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
The investigation on Jason Earl Davis began in 2018 when law enforcement identified Davis as a supplier of methamphetamine in the southeast Iowa area. As part of his drug trafficking activities, Davis maintained a premise for the purpose of manufacturing and distributing controlled substances. Davis has a prior federal conviction related to drug trafficking.
This matter was investigated by the Henry County Sheriff’s Office and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Multiple felony charges land Coastal Bend meth trafficker in prisonRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Coastal Bend woman has been ordered to federal prison for a conspiracy to distribute 243 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jennifer Saldana pleaded guilty June 17, 2020.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Saldana to serve an 84-month sentence to be immediately followed by five years of supervised release.
On May 30, 2019, Saldana and Willie James Sorrell III traveled on a Greyhound bus from McAllen to the Corpus Christi area. At the Border Patrol checkpoint near Falfurrias, authorities discovered a backpack near Sorrell’s feet that contained nearly 250 grams of meth and a firearm.
The investigation revealed Sorrell and Saldana had traveled from Corpus Christi to the Rio Grande Valley to obtain distribution amounts of meth.
Sorrell, 48, Corpus Christi, was previously sentenced to more than 10 years in federal prison.
Saldana has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation along with Customs and Border Protection and Texas Department of Public Safety. Assistant U.S. Attorney Reid Manning prosecuted the case.
Member of Tulalip Tribes sentenced to 3 years in prison for sexual abuse of a minorRead the Press Release
Seattle – A 32-year-old enrolled member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 3 years in prison for sexual abuse of a minor, announced Acting U.S. Attorney Tessa M. Gorman. Brandon Charles Hatch was 30 years old in 2018, when he sexually abused a 14-year-old female tribal member. Judge John C. Coughenour ordered Hatch to be on supervised release for 5 years following prison and to register as a sex offender.
At the sentencing hearing, the minor’s guardian spoke eloquently about how Hatch’s actions harmed a member of the next generation of his Tribal community. The guardian directed her comments to Hatch stating, “You groomed, seduced, and sexualized a child and created a chaos that will take years, a lifetime to undo…took one of your own people, our Indigenous girls after you were told to stop and used her for your own sexual gratification.”
According to records filed in the case, between March and November 2018, Hatch sexually abused the female teen, who was just 14 years old. Hatch knew the teen’s age and lured her with heroin and meth to continue to have access to her. He was confronted by his mother and others about the abuse, and he ignored them. Hatch was arrested in May 2019. He pleaded guilty in December 2020.
Hatch is prohibited from having contact with the victim or other children during the period of supervised release.
The case was investigated by the FBI and the Tulalip Police Department.
The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Chantelle Dial.
Manitowoc Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on March 22, 2021, Timothy J. Tetzlaff (age: 59) of the Town of Mishicot, Wisconsin, pled guilty to one count of interstate travel with the intent to engage a minor in criminal sexual activity, and another count of production of child pornography.
According to the plea agreement, Tetzlaff will receive a sentence of at least 15 years’ imprisonment and up to a life sentence when he is sentenced before Senior U.S. District Judge William C. Griesbach on June 28, 2021.
This case was investigated by the Manitowoc County Sheriff’s Office, the Manitowoc County District Attorney’s Office, and the Green Bay office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
The Victim Services division of the U.S. Attorney’s Office may be reached at (800) 680-8949 for further information and support.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
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For further information contact: Public Information Officer Kenneth Gales
414-297-1700
Louisiana Woman Guilty in $4.8 Million Elder Fraud SchemeRead the Press Release
TYLER, Texas -- A Shreveport, Louisiana woman has pleaded guilty for her role in an elder fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Monica Ruiz, 45, pleaded guilty to wire fraud today before U.S. Magistrate Judge John D. Love.
“Schemes that target elderly victims are particularly troubling,” said Acting U.S. Attorney Nicholas J. Ganjei. “Ruiz manipulated a vulnerable victim, exploited his trust, and stole much of his hard-earned life savings. Protecting senior citizens from exploitation has been, and will remain, a priority in the Eastern District.”
According to information presented in court, Ruiz enlisted a variety of false and fraudulent pretenses, representations, and promises in a scheme to defraud an elderly victim from Bullard, Texas. Among the various misrepresentations Ruiz made in order to obtain money from the victim were the following:
- That Ruiz had been in a coma;
- That Ruiz had brain surgery;
- That Ruiz was falsely arrested and imprisoned;
- That Ruiz had bribed a judge and prosecutor;
- That Ruiz’s son died in a car accident in Pennsylvania;
- That Ruiz was in a car accident;
- That Ruiz had a kidney transplant;
- That Ruiz’s daughter was committed to a mental institution;
- That Ruiz was incarcerated; and
- That Ruiz’s grandmother died.
At times, Ruiz impersonated other people in communications with the victim. At other times, she created and used false personas in communications with the victim. Over the course of her scheme, Ruiz obtained more than $4.85 million from the victim.
A federal grand jury returned an indictment charging Ruiz with federal violations on Nov. 19, 2020. Under federal statutes, Ruiz faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. In March of last year, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
In August of 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud. This EDTX initiative is designed to combat these criminal organization, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. Eastern Time. English, Spanish, and other languages are available.
This case is being investigated by the U.S. Secret Service with the assistance of the Tyler Police Department and the Louisiana State Police – Gaming Enforcement Division and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.