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Newest first across public DOJ and U.S. Attorney press releases.
3 May 2021
South King County man sentenced to five years in prison for gun dealing and drug traffickingRead the Press Release
Tacoma – A 35-year-old Federal Way, Washington, man was sentenced today in U.S. District Court in Tacoma to 61 months in prison for drug and gun trafficking, announced Acting U.S. Attorney Tessa M. Gorman. Michael G. McPherson was indicted in May 2019 and pleaded guilty in November 2020 to trafficking in stolen firearms, possession of methamphetamine and heroin with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Benjamin H. Settle ordered four years of supervised release to follow the prison term.
"Our community, like much of the country, is strugging with an epidemic of gun violence," said Acting U.S. Attorney Gorman. "This defendant sold guns - some of them stolen - to someone who claimed to be providing the firearms to drug cartel and gang members. Such disregard for community safety requires significant punishment."
According to records filed in the case, McPherson was first on the radar of local law enforcement in September 2018 when a Court-authorized search warrant served at his residence in Bonney Lake resulted in the seizure of significant quantities of heroin, methamphetamine, and multiple firearms. Federal agents from the Bureau of Alcohol, Firearms, Tobacco & Explosives joined the investigation. An ATF undercover officer arranged to purchase firearms from McPherson. The men met at a storage unit McPherson owned, and the undercover agent purchase four firearms—three semi-automatic pistols and a revolver. Two of the guns had been reported stolen.
Within days of the sale, Court-authorized search warrants were issued for McPherson’s residence in Federal Way, the storage unit, and his two vehicles. Multiple firearms were recovered as well as dealer quantities of methamphetamine and heroin.
McPherson has been in custody since his arrest.
The case was investigated by the Kent Police Department, King County Sheriff’s Office, ATF, and the FBI.
The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Recent Federal Tax Prosecutions Serve as A Reminder to Accurately File and Pay Taxes by May 17 DeadlineRead the Press Release
MINNEAPOLIS – As this year’s tax filing season comes to an end, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division urge all taxpayers to file correct and accurate tax returns by the Monday, May 17 deadline. Due to COVID-19, the original filing deadline and tax payment due date was postponed from April 15 to May 17. For people facing hardships, including those affected by COVID-19, who cannot pay in full, the IRS has several options available on IRS.gov/payments.
“As the May 17 deadline approaches, Minnesotans should remain vigilant and take care to protect their personal information. Remember, the IRS will not contact you by phone, email, or social media,” said Acting U.S. Attorney Anders Folk. “Scammers, fraudsters and predatory tax preparers looking to take advantage of law-abiding taxpayers will be held accountable.”
“I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” says Tamera Cantu, Acting Special Agent in Charge of the IRS Criminal Investigation Division Chicago Field Office, who oversees the state of Minnesota. “We all pay when others cheat the government. IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
The following court actions serve as a reminder to taxpayers, to think before filing a false or fraudulent tax return and to be wary of any schemes that falsify your income or deductions.
In November 2020, Muhumed Ali and Faysal Sayid were sentenced to prison for income tax evasion. Ali and Sayid were also ordered to pay a total of more than $1 million in restitution to the IRS. Ali and Sayid were co-owners of a company that provided adult day care services to individuals enrolled in the Minnesota Medicaid program. Between 2012 and 2014, Ali and Sayid removed approximately $1.3 million from the company’s operating accounts and used those funds to pay for personal, non-business expenses, such as clothing, rent for personal residences, vehicles, funds transfers to other parties, and international wire transfers. Ali and Sayid willfully attempted to evade and defeat income taxes due and owing on that money for tax years 2012, 2013, and 2014. This case was prosecuted by Assistant U.S. Attorney Matthew S. Ebert.
In March 2021, Daren Wradislavsky pleaded guilty to one count of making and subscribing a false return. According to his guilty plea, Wradislavsky was the general manager of a hotel in Owatonna, Minnesota, and was exclusively responsible for the employee payroll. For tax years 2014 through 2017, Wradislavsky included commissions and mileage reimbursement amounts on his personal paychecks but failed to report more than $350,482 in reimbursements on his individual income tax returns. This case is being prosecuted by Assistant U.S. Attorney Angela M. Munoz.
In April 2021, Shoua Isabelle Yang, the owner and operator of a staffing agency, was indicted on 13 counts of filing a false employer’s quarterly federal tax return and four counts of filing a false United States corporation income tax return. According to the allegations in the indictment, during tax years 2015 through 2018, Yang, employed workers but caused her staffing agency not to properly withhold, account for and pay over accurate payroll taxes, including federal income taxes and Social Security and Medicare taxes. This case is being prosecuted by Assistant U.S. Attorney Matthew S. Ebert. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In April 2021, Gospel Kordah pleaded guilty to one count of preparation of a false individual income tax return. According to his guilty plea, Kordah prepared tax returns on behalf of his clients that falsely and fraudulently represented, among other things, that the taxpayers incurred deductible medical and dental expenses. Kordah also prepared false and fraudulent income tax returns on behalf of himself and his wife. Kordah prepared and filed approximately 68 false tax returns seeking a total of approximately $237,432 in fraudulent federal and state income tax returns. This case is being prosecuted by Assistant U.S. Attorneys Allison K. Ethen and Kimberly A. Svendsen.
Repeat Violent Offender Sentenced to 30 Months for Assaulting Correctional OfficersRead the Press Release
Acting United States Attorney Bob Murray announced today that BENJAMIN ROBERT DMITRY DELANY, age 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson for assaulting a correctional officer at the Platte County Detention Facility and for assaulting a correctional officer at the Scotts Bluff Detention Center. The government argued for an upward variance and requested a sentence of 54 months in prison. The court denied that request and sentenced Delany to 30 months of imprisonment, followed by 3 years of supervised release on both counts, to run concurrently. He was also ordered to pay $396.50 in restitution and a $200 special assessment fee.
Previously, on January 23, 2020, Chief Federal District Court Judge Scott W. Skavdahl sentenced Delany for assault with a dangerous weapon on a federal employee for his attack with a baseball bat at the Cheyenne Veterans Affairs Medical Center. For that offense, he received 42 months of imprisonment, to be followed by 4 years of supervised release, and ordered to pay a $100 special assessment. The court granted the government’s request that this 42-month sentence run consecutively to the 30-month sentence imposed for Delany’s assaults on correctional officers.
While in federal custody on that charge, Delany was detained at the Scotts Bluff Detention Center in Gering, Nebraska, during which time he assaulted a correctional officer. The United States Attorney’s Office for the District of Nebraska indicted Delany in February 2020, and the case was later transferred to the District of Wyoming.
While in federal custody on the Nebraska assault, in October 2020, Delany assaulted a Sergeant at the Platte County Detention Facility in Wheatland, Wyoming. In November 2020, Delany was indicted by a Wyoming federal grand jury for that attack.
“Our office values the important work law enforcement performs, and we’re dedicated to aggressively prosecuting violent attacks against law enforcement who assist in the detention of federal inmates,” said Nicole M. Romine, Chief of the Criminal Division. “We are committed to prosecuting repeat violent offenders—such as Delany—and arguing for appropriate sentences to ensure the safety of our Wyoming communities.”
Delany’s assaults were investigated by the U.S. Marshals Service. Delany was prosecuted by Assistant United States Attorney Nicole M. Romine.
Providence Contractor Charged in Murder-For-Hire PlotRead the Press Release
PROVIDENCE – A Providence man has been ordered detained in federal custody in an alleged murder-for-hire plot. It is alleged that Agustin Vinas, 51, attempted to hire a person to kill two men, one a contractor he claimed owed him $8,500 and who threatened to harm his family if he did not stop his repeated requests for payment, and the second an employee of the contractor.
It is alleged in court documents that on April 19, 2021, Vinas had a chance meeting with an acquaintance. Vinas told that person of his unsuccessful attempts to collect money he was owed by a contractor, of the contractor’s threat against his family, and that he wanted to hire someone to kill the contractor and another man. Vinas’s acquaintance told him that he might know of someone interested in the job and that he would be in touch shortly.
The next day, while under surveillance by members of the FBI Rhode Island Safe Streets Task Force, the two met again in a parking lot in Providence. In a recorded conversation, Vinas allegedly repeated that he wanted the contractor and another person killed. Vinas offered to pay $3,000 for the killings and an additional $500 to make the bodies “disappear.” Vinas explained that he would like to have the victims tortured before they are killed.
It is alleged in court documents that two days later Vinas’s acquaintance arranged to meet with Vinas to introduce him to a “hitman.” They arranged to gather in a parking lot in Pawtucket and then follow Vinas to a second Pawtucket location. Once there, they moved to a third location and met in Vinas’s vehicle. During the meeting, Vinas identified the intended targets, and provided the “hitman” with the contractor’s cellphone number, address, and a description of the vehicle the contractor drives. Vinas told the “hitman,” who was actually an undercover law enforcement officer, that the contractor was the primary target and that he wanted him killed first. Vinas specified that the second victim was not as important but that he would be an easy person to kill. Vinas offered to pay the undercover law enforcement officer $3,000 to kill both individuals. Vinas agreed to provide a deposit for the killings, and stated, “I’m not dying until this guy is dead.”
On April 26, 2021, Vinas provided the officer with a $100 deposit for the killings with a promise of an additional $300 at their next meeting. At the meeting, Vinas showed the officer two checks made payable to his son totaling $2,700. Vinas said the checks would be cashed and the proceeds provided as payment once the murders occurred. Three days later, Vinas and the undercover officer met again, and Vinas provided the undercover officer an additional $200 in cash. Vinas was asked on several occasions at that meeting if he was certain he wanted the murders committed. He responded, “I am one hundred percent sure,” and offered to sign a contract.
Vinas was arrested by members of the FBI Rhode Island Safe Streets Task Force on Friday on a federal criminal complaint charging him with use of interstate commerce facilities in the commission of murder-for-hire. He was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond.
The FBI Safe Streets Task Force is comprised of officers from the Providence Police Department, Cranston Police Department, Pawtucket Police Department, Central Falls Police Department, Woonsocket Police Department, West Warwick Police Department, Rhode Island State Police, and the United States Marshals Service. The arrest and detention of Vinas is announced by Acting United States Attorney Richard B. Myrus and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Ponciana Woman Sentenced for Making False Statements to the Social Security AdministrationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today ordered Isis Baldwin (39, Ponciana) to pay $11,754.76 in restitution for making false statements to a federal agency. In addition, the court also sentenced Baldwin to three years’ probation and required her to perform 45 days of work duty at the Brevard County Sheriff’s Office Work Farm.
Baldwin had pleaded guilty on February 8, 2021.
According to court documents, Baldwin, a Social Security Administration (SSA) employee, applied for Supplemental Security Income (SSI) benefits on behalf of her minor child. The application was approved by SSA, and Baldwin was appointed as the representative payee for her child’s benefits. In April 2019, SSA initiated a redetermination of continuing eligibility to determine whether Baldwin’s child remained eligible for benefits. During the redetermination inquiry, Baldwin made false statements to SSA. Specifically, Baldwin made material misrepresentations regarding her child’s living arrangements during an interview with an SSA employee. Baldwin subsequently submitted a statement to SSA in which she falsely represented that her child had moved to a different address. Baldwin also provided a falsified lease agreement in support of her false claim regarding her child’s new living arrangements.
This case was investigated by the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Omaha Man Sentenced to 15 years for Production of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Christopher Wagner, 46, of Omaha, Nebraska, was sentenced in federal court today in Omaha for production of child pornography. Senior United States District Judge Joseph F. Bataillon sentenced Wagner to 15 years of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Wagner will begin a 15-year term of supervised release and will be required to register as a sex offender. Senior Judge Bataillon ordered Wagner to pay a $17,000 fine and $3,000 in restitution.
On November 12, 2019, officers executed a federal search warrant at Wagner’s residence in Omaha. Officers collected Wagner’s cellular phone. Wagner admitted to viewing child pornography on the internet. Agents forensically examined Wagner’s cellular phone and located about 1,668 images of child pornography with the minors ranging from about 3 to 16 years old.
Four of the images of child pornography on Wagner’s phone showed a naked female who was about six years old. Location data showed the images were created at Wagner’s apartment complex in Omaha. The data showed they were created with Wagner’s cellular phone. Wagner took these images.
Wagner was previously convicted in California of burglary in the first degree (1993), burglary in the first degree (1995) for which he was sentenced to 4 years of imprisonment, and residential burglary (1999) for which he was sentenced to 12 years of imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
The case was investigated by the Omaha Police Department and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
New Mexico Man Sentenced to 10 Years in Federal Prison for Stalking and Threatening to Kill Ex-Wife and FamilyRead the Press Release
PORTLAND, Ore.—An Albuquerque, New Mexico man was sentenced to federal prison today after spending years abusing, terrorizing, and threatening to kill his ex-wife, former mother-in-law, and young daughters.
Oscar Adrian Marquez, 46, was sentenced to 120 months in federal prison and three years’ supervised release.
“Oscar Marquez is a serial abuser and perpetrator of domestic violence. Over a period of many years, he physically and emotionally tormented his spouses, daughters, and their extended families. I applaud the Portland Police Bureau’s quick and heroic efforts to arrest Marquez before he could inflict further and potentially deadly harm on his family,” said Scott Asphaug, Acting U.S. Attorney for the District of Oregon.
“I’m grateful that this violent abuser is being held accountable for his actions,” said Portland Police Chief Chuck Lovell. “My thanks go to the Portland officers who acted so quickly and professionally, and to the FBI and the U.S. Attorney’s Office for their hard work investigating and bringing this case to successful prosecution.”
“The stalking and violent threats were purely about control for Mr. Marquez, just as the abuse had been. His ex-wife and children suffered for years, and despite every effort to escape, they lived with the fear that he would find them. I am hopeful that today's lengthy sentence will, hopefully, allow them the peace to move forward with their lives,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, Marquez’s history of abusing women spans more than 20 years, including the physical and emotional abuse of his first wife and their young daughter. This abuse continued into his daughter’s adolescent and young-adult years when Marquez would lock her in her bedroom for hours and beat her with a belt. As an adult, his daughter went to great lengths to hide from her father and, in 2018, secured a 40-year protective order against him.
Marquez remarried in 2001 and has two teenage daughters with his second wife. Marquez continued his abuse with his new family. In 2007, Marquez was convicted on two domestic violence charges after punching his second wife in the face while she was holding their then-three-year-old daughter. The final straw for his second wife came in August 2013, when Marquez physically assaulted her and trapped her and her daughters in separate bedrooms. In their divorce proceedings, Marquez’s second wife was given sole custody of their children and Marquez’s limited visitation rights were later revoked.
In the summer of 2014, Marquez kidnapped his two youngest daughters and fled to Mexico, resulting in an international amber alert. Marquez and the children were found several days later at a U.S.-Mexico border crossing. He was arrested and later convicted for the kidnapping. A new protective order was issued in October 2014, barring Marquez’s contact with his second wife and youngest daughters. Marquez repeatedly violated this new order. Thereafter, from January 2014 through July 2019, Marquez engaged in an increasingly aggressive course of conduct to intimidate and harass his second wife and her family.
In 2017, Marquez’s second wife changed her name and moved to Portland with her teenage daughters after learning of Marquez’s intent to murder her and her family. She provided a picture of Marquez to her daughters’ new school and advised them of the threat he posed to their family. In July 2018, Marquez posted a note on his mother-in-law’s fence in New Mexico threatening that he was on his way to find her daughter. In July 2019, Marquez obtained his second wife’s new name and Portland address via an online people-finding service.
On July 29, 2019, Marquez’s second wife observed him driving slowly past her Portland home in a vehicle with New Mexico license plates. She barricaded her teenage daughters into a room, contacted the Portland Police Bureau, and prepared for a confrontation with Marquez. While a Portland police officer was writing a report at their home, Marquez again drove past the residence. Several Portland police officers quickly conducted a traffic stop and arrested Marquez. Inside his vehicle, they located a replica Glock handgun, a face mask, gloves, several digital devices, and more than $2,000 in cash.
On January 14, 2020, a federal grand jury in Portland returned a five-count indictment charging Marquez with cyberstalking, stalking, and interstate violation of a protection order. In November 2020, Marquez was convicted at trial on all charges.
During his trial, prosecutors learned that Marquez attempted to intimidate a government witness while in custody and lied under oath during his trial testimony. Prosecutors sought and obtained sentencing enhancements for this conduct.
During sentencing, U.S. District Court Judge Michel W. Mosman ordered Marquez to pay $10,818 in restitution to his victims.
Acting U.S. Attorney Asphaug made this announcement with Chief Lovell and Special Agent in Charge Ramsey.
This case was jointly investigated by the Portland Police Bureau and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
All forms of stalking, including cyberstalking, are serious crimes prohibited by the federal Violence Against Women Act (VAWA). In 2013, an amendment to VAWA made it illegal to use any computer or electronic communication service to conduct activity placing a person in reasonable fear of death or serious bodily injury, or that causes substantial emotional distress.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
For immediate threats to life and safety, please call 9-1-1.
New Jersey Woman Going to Prison for Her Role in Major Jamestown Area Methamphetamine RingRead 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 Alexis Hall, 26, of Harrison, NJ, who was convicted of conspiring to possess with intent to distribute, and distributing, five grams or more of methamphetamine, was sentenced to serve 60 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Misha A. Coulson and Brendan T. Cullinane, who handled the case, stated that between March 2017 and October 2018, the defendant conspired with 15 other co-defendants to operate a drug trafficking organization, primarily involving the distribution of methamphetamine, in the Jamestown area. During the execution of search warrants throughout the investigation, law enforcement officers recovered 10 firearms and multiple rounds of ammunition, over 20 cellular telephones, drug paraphernalia, and U.S. currency.
All 16 defendants charged in this case have been convicted. Hall is the 7th defendant to be sentenced.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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 Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Belongia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Jamestown Police Department, under the direction of Chief Timothy Jackson; the New York State Police, under the direction of Major James Hall; the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Timothy Whitcomb; the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.; and the U.S. Postal Inspection Service, under the direction of Acting Boston Division Inspector-in-Charge Joshua W. McCallister.
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Neurosurgeon and Two Affiliated Companies Agree to Pay $4.4 Million to Settle Healthcare Fraud AllegationsRead the Press Release
WASHINGTON – Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, South Dakota, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.
Medical Designs and Sicage agreed to pay an additional $100,000 in penalties to settle allegations that they violated the Open Payments Program by failing to report to the Centers for Medicare & Medicaid Services (CMS) Asfora’s ownership interests and payments made to Asfora.
Under the terms of the settlement agreement, Asfora, Medical Designs, and Sicage each will be excluded from participation in federal healthcare programs for a period of six years.
“Physicians who accept kickbacks and perform unnecessary surgeries put their patients at risk and increase healthcare costs for everyone,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to hold physicians and medical device companies accountable for unlawful financial arrangements that undermine the integrity of federal healthcare programs.”
The settlement announced today resolves allegations that over the course of nearly a decade, Asfora, Medical Designs, and Sicage knowingly and willfully engaged in three kickback schemes to allow Asfora to profit from his use of over a dozen devices in his medical procedures. First, the United States alleged that Medical Designs and Sicage paid Asfora profit distributions in exchange for Asfora using Medical Designs’ and Sicage’s devices in his spine surgeries. Second, the United States alleged that Medical Designs acted as a distributor, reselling other manufacturers’ spinal devices and splitting the profits with Asfora when he used those devices in surgeries. Third, the United States alleged that Asfora solicited and received kickbacks from medical device manufacturer Medtronic USA Inc. in exchange for using its SynchroMed II infusion pumps, which are implantable devices used to deliver medication to patients. At Asfora’s request, Medtronic allegedly paid the kickbacks to Asfora through a restaurant he owned with his wife, called Carnaval Brazilian Grill, in the form of lavish meals and alcohol for Asfora and his friends, colleagues, and business partners.
In addition, the settlement resolves allegations that Asfora knowingly submitted false claims to federal healthcare programs for medically unnecessary procedures using the devices in which he had a financial interest. Despite receiving numerous warnings that he was performing medically unnecessary procedures – including warnings from his own physician colleagues – Asfora allegedly continued to perform such procedures while personally profiting from his use of devices sold by Medical Designs, Sicage, and Medtronic.
“Fraud in the healthcare arena is taken very seriously by the Department of Justice,” said Acting U.S. Attorney Dennis R. Holmes for the District of South Dakota. “South Dakota is fortunate to have many honest and dedicated healthcare providers who strive daily to provide high quality services. Dr. Asfora and his companies violated the trust that so many others have worked hard to earn.”
“Kickback dollars can corrupt the high quality medical care patients deserve and taxpayers fund,” said Special Agent in Charge Curt L. Muller of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We have excluded Dr. Asfora and his two medical distributorships from receiving Medicare, Medicaid, and other federal health program dollars.”
This settlement also resolves Medical Designs’ and Sicage’s liability under CMS’ Open Payments Program, which was established by the Affordable Care Act and requires medical device companies to disclose to CMS physician ownership interests and certain payments or other transfers of value to a physician.
The civil settlement includes the resolution of claims that Drs. Carl Dustin Bechtold and Bryan Wellman brought under the qui tam or whistleblower provisions of the False Claims Act against Asfora and Medical Designs. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any settlement. The qui tam case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The whistleblowers will receive $880,000 of the settlement proceeds.
This settlement was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Dakota, with assistance from HHS-OIG. As a result of its efforts, the United States has recovered a total of more than $33 million relating to conduct involving Asfora, including a False Claims Act settlement with Sanford Health entities for $20.25 million in October 2019 and a False Claims Act and Open Payments settlement with Medtronic for $9.21 million in October 2020. This matter and the related matters were investigated by Trial Attorneys Christopher Terranova and Harin C. Song and Assistant U.S. Attorneys Meghan K. Roche and Ellie J. Bailey.
Neurosurgeon and Two Affiliated Companies Agree to Pay $4.4 Million to Settle Health Care Fraud AllegationsRead the Press Release
Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, South Dakota, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.
Medical Designs and Sicage agreed to pay an additional $100,000 in penalties to settle allegations that they violated the Open Payments Program by failing to report to the Centers for Medicare & Medicaid Services (CMS) Asfora’s ownership interests and payments made to Asfora.
Under the terms of the settlement agreement, Asfora, Medical Designs, and Sicage each will be excluded from participation in federal health care programs for a period of six years.
“Physicians who accept kickbacks and perform unnecessary surgeries put their patients at risk and increase health care costs for everyone,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to hold physicians and medical device companies accountable for unlawful financial arrangements that undermine the integrity of federal health care programs.”
The settlement announced today resolves allegations that over the course of nearly a decade, Asfora, Medical Designs, and Sicage knowingly and willfully engaged in three kickback schemes to allow Asfora to profit from his use of over a dozen devices in his medical procedures. First, the United States alleged that Medical Designs and Sicage paid Asfora profit distributions in exchange for Asfora using Medical Designs’ and Sicage’s devices in his spine surgeries. Second, the United States alleged that Medical Designs acted as a distributor, reselling other manufacturers’ spinal devices and splitting the profits with Asfora when he used those devices in surgeries. Third, the United States alleged that Asfora solicited and received kickbacks from medical device manufacturer Medtronic USA Inc. in exchange for using its SynchroMed II infusion pumps, which are implantable devices used to deliver medication to patients. At Asfora’s request, Medtronic allegedly paid the kickbacks to Asfora through a restaurant he owned with his wife, called Carnaval Brazilian Grill, in the form of lavish meals and alcohol for Asfora and his friends, colleagues, and business partners.
In addition, the settlement resolves allegations that Asfora knowingly submitted false claims to federal health care programs for medically unnecessary procedures using the devices in which he had a financial interest. Despite receiving numerous warnings that he was performing medically unnecessary procedures – including warnings from his own physician colleagues – Asfora allegedly continued to perform such procedures while personally profiting from his use of devices sold by Medical Designs, Sicage, and Medtronic.
“Fraud in the health care arena is taken very seriously by the Department of Justice,” said Acting U.S. Attorney Dennis R. Holmes for the District of South Dakota. “South Dakota is fortunate to have many honest and dedicated health care providers who strive daily to provide high quality services. Dr. Asfora and his companies violated the trust that so many others have worked hard to earn.”
“Kickback dollars can corrupt the high quality medical care patients deserve and taxpayers fund,” said Special Agent in Charge Curt L. Muller of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We have excluded Dr. Asfora and his two medical distributorships from receiving Medicare, Medicaid, and other federal health program dollars.”
This settlement also resolves Medical Designs’ and Sicage’s liability under CMS’ Open Payments Program, which was established by the Affordable Care Act and requires medical device companies to disclose to CMS physician ownership interests and certain payments or other transfers of value to a physician.
The civil settlement includes the resolution of claims that Drs. Carl Dustin Bechtold and Bryan Wellman brought under the qui tam or whistleblower provisions of the False Claims Act against Asfora and Medical Designs. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any settlement. The qui tam case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The whistleblowers will receive $880,000 of the settlement proceeds.
This settlement was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Dakota, with assistance from HHS-OIG. As a result of its efforts, the United States has recovered a total of more than $33 million relating to conduct involving Asfora, including a False Claims Act settlement with Sanford Health entities for $20.25 million in October 2019 and a False Claims Act and Open Payments settlement with Medtronic for $9.21 million in October 2020. This matter and the related matters were investigated by Trial Attorneys Christopher Terranova and Harin C. Song and Assistant U.S. Attorneys Meghan K. Roche and Ellie J. Bailey.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Maryland man sentenced for firearms offenseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Lemonte Green, of Hagerstown, Maryland, was sentenced today to 60 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Green, 37, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime” in September 2020. Green admitted to having a 9mm pistol while trafficking drugs in October 2019 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland U.S. Attorney’s Office Seizes Domain Name Falsely Purporting to Provide COVID-19 VaccinesRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “freevaccinecovax.org” which purported to be the website of an actual biotechnology company developing a vaccine for the COVID-19 virus but instead was allegedly used to collect the personal information of individuals visiting the site, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting the site will now see a message that the site has been seized by the federal government and be redirected to another site for additional information.
The seizure of the domain name was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations - Baltimore.
“This is the ninth fraudulent website seeking to illegally profit from the COVID-19 pandemic that we have seized,” said Acting U.S. Attorney Jonathan F. Lenzner. “Members of the public should not provide personal information or click on links in unsolicited e-mails and should remember that the COVID-19 vaccine is not for sale. The Federal government is providing the vaccine free of charge to people living in the United States. Working with our partners at HSI, we will continue to aggressively prosecute fraudsters who seek to prey on unsuspecting residents and their families.”
“It’s a scary thought but what HSI wants the public to understand is all a bad guy needs to defraud thousands of Americans in search of COVD-19 information is the ability to create a website combined with malicious intent, “said James Mancuso, Special Agent in Charge for the HSI Baltimore Field Office. “We must make an example of these perpetrators in order to deter others from committing these crimes against an unsuspecting and vulnerable Internet user.”
According to the affidavit filed in support of the seizure, the HSI Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”) discovered an apparent fraudulent website, named “freevaccinecovax.org.” A domain analysis conducted by HSI indicated the domain name was created on April 27, 2021, using an IP address located in Strasbourg. The registrant country was listed as Russia.
The HSI Cyber Operations Officer (COO) conducting domain analysis noted that the trademarked logos for Pfizer, the World Health Organization (WHO) and the United Nations High Commissioner for Refugees (UNHCR) appear on the homepage for the fraudulent site. Specifically, the fraudulent website contained a “Select your city” drop down and “Apply” and “Upload application” buttons. Upon selecting a city and clicking on “Apply” a PDF file is downloaded to your computer. This PDF file is written in Cyrillic. Once the PDF is completed, it then can be uploaded to the website by clicking on the “Upload application” button.
By seizing the site, the government has prevented third parties from acquiring the name and using it to commit additional crimes, as well as prevented third parties from continuing to access the site in its present form.
Federal law enforcement agencies are united in our efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud. If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or for more information visit justice.gov/coronavirus.
Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in this investigation. Mr. Lenzner recognized the U.S. Food and Drug Administration’s Office of Criminal Investigations, the U.S. Postal Inspection Service and the Baltimore County Police Department for their assistance and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are handling the case.
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Man Sentenced to More Than Nine Years in Prison for Illegally Possessing Ammunition in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on Chicago’s West Side.
RODNEY BURNETT, 25, of Chicago, illegally possessed four rounds of .40-caliber ammunition on May 15, 2018. Burnett, driving a stolen vehicle and fleeing the area where a shooting had recently occurred, led Chicago Police on a high-speed chase that ended when he crashed his car at the intersection of Hamlin and Jackson Boulevards near Garfield Park. Burnett and two passengers in his vehicle then fled on foot and discarded two firearms. CPD officers apprehended them a short time later.
Burnett pleaded guilty to a federal charge of illegal possession of ammunition by a convicted felon. He had previously been convicted in state court of a felony criminal offense and was not legally allowed to possess ammunition or a firearm.
U.S. District Judge John Z. Lee on April 27, 2021, imposed a 110-month federal prison sentence. Judge Lee found that, in addition to possessing the ammunition, the government met its burden in proving that Burnett possessed a firearm and was involved in the nearby shooting that preceded the vehicular chase.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Katie M. Durick.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Sentenced for Producing Images of Child Sexual AbuseRead the Press Release
NEWPORT NEWS, Va. – A Mathews County man was sentenced today to life in prison for engaging in a conspiracy to produce child pornography in connection with a purported “teen modeling” endeavor.
“As the evidence at trial demonstrated, the defendant preyed on, manipulated, and abused defenseless young girls,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its gratitude to the trial and law enforcement team for their relentless efforts in bringing the defendant to justice and holding him accountable for repeatedly victimizing children.”
According to court documents and evidence presented at trial, William Wellington Hooper, Jr., 54, conspired with Jennifer Hutchens, 54, of Gloucester, to produce images of child sexual abuse of Jane Doe #1, a 15-year-old girl, and her 14-year-old friend, Jane Doe #2. During the months of April and May 2019, Hooper and Hutchens coerced Jane Doe #1 to engage in sexually explicit conduct in Gloucester County and Mathews County.
“Every case involving child sexual exploitation is difficult, but the level of manipulation and abuse carried out in this case is especially disturbing,” said Special Agent in Charge Raymond Villanueva for the HSI Washington, D.C. Field Office. “This individual deserved nothing less than a life sentence and HSI will continue to diligently investigate these crimes against children and rid our communities of these atrocious offenders.”
Hutchens, at the request of Hooper, also recruited other minor girls to pose for sexually explicit photographs in what Hooper called a “teen modeling” endeavor. Hooper promised these children, whose families were struggling financially, that they would be compensated. He specifically promised that Jane Doe #1 could make almost $3 million if she obeyed him completely. Hooper also asked Hutchens to find younger children for his photographs. In explaining his request, Hooper said that “[l]egal doesn’t matter” and suggested that Hutchens could get access to younger children by running a daycare, for which she could “[s]pecialize in problem[] girls between the ages of 8 and 12.”
A jury convicted Hooper at trial of conspiracy to produce child pornography, production of child pornography, and coercion and enticement of a child. Hutchens previously pleaded guilty to producing child pornography and was sentenced to 23 years’ imprisonment on October 13, 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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.justice.gov/psc.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; L. Mark Barrick, Mathews County Sheriff; Darrell W. Warren, Jr., Gloucester County Sheriff; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Lisa R. McKeel, Howard J. Zlotnick, and Brittany M. Fisher prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-18.
Man Involved in 2014 Drug Robbery Found Guilty in Federal CourtRead the Press Release
A man who robbed and murdered his drug dealer was convicted by a jury today after a nine-day trial in federal court in Cedar Rapids.
Matthew Barrett Robbins, age 48, from Cedar Rapids, Iowa, was convicted of robbery affecting interstate commerce, conspiracy to commit robbery affecting interstate commerce, and using, carrying, brandishing, and discharging a firearm during a crime of violence resulting in murder. The verdict was returned this morning following more than nine hours of jury deliberations.
The jury found that Robbins and others planned to rob a local drug dealer, and then robbed the dealer on May 31, 2014. The jury also found that Robbins used a firearm during the robbery, and that the firearm was fired, killing the victim.
“Matthew Robbins used a gun to steal drugs and money,” said Acting United States Attorney Sean R. Berry. “Robbins’s actions resulted in the death of the man he robbed. Today’s verdict holds him accountable for that death. This verdict was made possible by the extraordinary cooperation and hard work of more than a dozen law enforcement agencies.”
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Robbins remains in custody of the United States Marshal pending sentencing. Robbins faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $750,000 fine, and 11 years’ of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Emily K. Nydle and was investigated by the Marion Police Department, the Iowa Department of Criminal Investigation, the Linn County Sheriff’s Office, the Drug Enforcement Administration, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa City Police Department, the United States Marshals Service, the Davenport Police Department, the Iowa Division of Narcotics Enforcement, the Benton County Sheriff’s Office, the Cedar County Sheriff’s Office, the Madison County Sheriff’s Office, and the Daytona Beach Shores Florida Police Department. Assistance was also provided by the Waypoint Services Survivor's Program in Cedar Rapids, Iowa.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-53.
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Man Convicted of Trafficking Methamphetamine and Possessing a Gun Sentenced to over 20 Years in PrisonRead the Press Release
A man who sold methamphetamine out of his residence in Fairfax, Iowa, and possessed firearms was sentenced today to more than 24 years in federal prison.
Jason Richard Corey, age 54, formerly from Fairfax, Iowa, was convicted of conspiracy to distribute a controlled substance, distribution of a controlled substance, two counts of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime during a November 2020 jury trial.
The evidence at trial showed that Corey sold a quarter pound of methamphetamine to an individual in August 2019 at his home in Fairfax, Iowa. Shortly after the sale, Corey was in a car that was stopped and found to have more than 70 grams of methamphetamine hidden in the bottom of a disinfectant wipes container and a bag inside the car. Law enforcement then searched Corey’s home and found a half pound of methamphetamine and two firearms. Additional evidence showed that Corey dealt more than 25 pounds of methamphetamine during 2019 and that one of his methamphetamine sources gave him two firearms for his protection.
Corey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Corey was sentenced to 295 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Corey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department, the Marion Police Department, the Hiawatha Police Department, the Linn County Sheriff’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-00029.
Follow us on Twitter @USAO_NDIA.
Maimonides Medical Center in Brooklyn Agrees to Settle Claims of Employment Discrimination by U.S. Army ReservistRead the Press Release
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced today a settlement with Maimonides Medical Center (Maimonides) in Brooklyn to resolve a lawsuit filed on behalf of Lieutenant Colonel Louis Rego, a U.S. Army Reservist and former Maimonides pharmacist. Maimonides is the largest hospital in Brooklyn and is an affiliate of Northwell Health, New York State’s largest health care provider and private employer. According to the United States’ complaint, Maimonides violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by terminating Lieutenant Colonel Rego’s employment in the Pharmacy Department after he was called up to active military duty status. USERRA prohibits discrimination in employment based on an individual’s prior service in the uniformed services; current service in the uniformed services; or intent to join the uniformed services. Under the terms of the settlement, Maimonides will pay Lieutenant Colonel Rego $195,000 to compensate him for lost wages and other damages. The settlement also requires Maimonides to provide annual training to hospital officials and human resources staff on the rights of service members under USERRA.
“Lieutenant Colonel Rego’s honorable service to his country cost him his job as a pharmacist, even though USERRA flatly prohibits employers from discriminating against employees on account of their military service,” stated Acting U.S. Attorney Lesko. “This Office is firmly committed to enforcing USERRA’s requirements and to holding employers like Maimonides accountable for their failure to comply.”
Rego was ordered to full-time active duty with the U.S. Army Reserves on July 17, 2017, when he was deployed for a tour of duty with U.S. Army Medical Materiel Agency at Fort Detrick in Maryland. Rego took a leave of absence from Maimonides in order to perform his military service. Rego returned to work at MMC on October 2, 2017. Just seven weeks later, on November 21, 2017, Rego was informed by a supervisor that his position was being eliminated and that he was being terminated as part of a reduction in force designed to save money at the hospital. Rego was the only employee terminated of the more than 100 employees in the Pharmacy Department. After Rego was fired, Maimonides promoted and gave pay raises to two mid-level managers in order to cover some of Rego’s duties, used non-managers to perform other duties and paid those non-managers overtime. Maimonides also hired new Pharmacy Department employees immediately before and after it fired Rego and had posted an opening for his job on a job search website one week before he was dismissed.
The claims resolved by the settlement are allegations only; there has been no determination of liability and Maimonides denies that it has violated USERRA.
The case is being handled by Assistant U.S. Attorney Sean P. Greene-Delgado of the Office’s Civil Division.
The protection of servicemembers’ rights is a priority for the U.S. Attorney’s Office. Individuals who believe they may have experienced discrimination, harassment or retaliation on account of their military service should contact the United States Attorney’s Office by emailing [email protected] or the Department of Justice Civil Rights Division by e-mailing [email protected]. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
E.D.N.Y. Docket No.: 21-CV-2448
Lumberton Man Sentenced to 20 Years for Hobbs Act Robberies, Carjacking, and KidnappingRead the Press Release
WILMINGTON, N.C. – A Lumberton man was sentenced today to 240 months in prison for robbery, carjacking, and kidnapping. On June 16, 2020, Trenton Pearson pled guilty to charges of robbery, carjacking, and kidnapping.
According to court documents and other information presented in court, Trenton Pearson, 35, committed a series of violent criminal conduct in November of 2018 and August thru September of 2019.
On November 24, 2018, Robeson County Sheriff’s Office deputies responded to an armed robbery at the Dollar General Store located at 2656 Lombardy Village Road, Lumber Bridge, N.C. Upon arrival, deputies met with a Dollar General Store clerk who advised that a male approached his checkout counter and asked him to open the cash register. The suspect walked behind the counter with a knife in his hand. The suspect demanded money and threatened to stab him. The suspect stole approximately $320 from the register and exited the store.
On November 26, 2018, Red Springs Police Department investigators responded to the Sun-Do Gas Station located at 902 East Avenue, Red Springs, N.C., about an armed robbery. On arrival, investigators met with the store clerks, who stated that the suspect entered the store, walked behind the counter, and pointed a silver knife at one clerk’s side. He then stole approximately $1,539.00 from the cash register and exited the store.
On November 27, 2018, St. Pauls Police Department responded to the Dollar General located at 584 W. Clark Street in St. Pauls, N.C., about an armed robbery. Upon arrival, officers met Dollar General store clerks who reported that the suspect kept his hand inside his coat as if he had a weapon and demanded money. The suspect stole approximately $4,461 from the register and left the business on a bicycle. The clerks immediately called 911 and described the suspect. An officer observed the suspect and found him in possession of the stolen money and a knife. The suspect was identified as Trenton Pearson, and he was arrested. He agreed to speak with law enforcement and admitted to the robberies. At the time of the offenses, Pearson was on post-release supervision and revoked back to state prison for a term of months.
On August 30, 2019, St. Pauls Police Department officers responded to an armed robbery at the Family Dollar located at 407 East Broad Street, St. Pauls, N.C. Upon arrival, officers met with the store clerk who advised that a male rushed behind her counter with a knife and demanded that she stay quiet. The suspect stole the entire cash register before exiting the business. Approximately $210 and other store items were stolen during this robbery.
On August 31, 2019, at approximately 10:00am, Hope Mills Police Department officers responded to the Dollar General Store located at 2477 Hope Mills Road, Fayetteville, N.C., about a robbery. Upon their arrival, officers met with the store clerk who stated that a male suspect rushed behind her counter and tackled her to the ground when she opened the cash register. The suspect stole money from the cash register that contained approximately $216.
On September 1, 2019, at approximately 9:05pm, Robeson County Sheriff’s Office Deputies were dispatched to 14389 N.C. 71, Shannon, N.C., about a carjacking call. Upon their arrival, they met the victim, who stated that she entered David’s General Store for a brief moment and returned to her Dodge Journey. Shortly thereafter, she placed her vehicle into drive and felt someone place a sharp object against her throat. The suspect told her not to stop. She complied and asked him what he wanted. He responded that he wanted her keys. The victim then jumped out of the vehicle and fled.
On September 3, 2019, at approximately 8:30 pm, a female victim returned to her black Chrysler 200 after shopping at a store located at 3708 Sycamore Dairy Road in Fayetteville, N.C. As she returned to her vehicle, an individual entered her vehicle, placed a knife to her neck, and asked whether she had any money. When she told him no, he demanded the victim drive her to an ATM and forced her to withdraw $100. The ATM withdrawal was caught on video surveillance, and Trenton Pearson could clearly be seen on the video. According to the victim, Pearson then drove them to Red Springs, N.C. Pearson drove to an unknown location on a dirt road and purchased crack cocaine. When she tried to escape, he put her in a headlock and cut her with a knife. Pearson utilized the victim’s cell phone to further the kidnapping. The victim was ultimately able to jump out of the vehicle and seek help at a gas station.
On September 4, 2019, Lumberton Police Department officers responded to an armed robbery at the Sun-Do Kwik Stop gas station located at 6697 Elizabethtown Road in Lumberton, N.C. 28358. Upon arrival, officers met with the store clerk who stated that a male approached her behind the checkout counter with a knife and demanded that she open the cash register. The male grabbed the cash register drawer and exited the business, stealing approximately $500.00 from the Sun-Do. Surveillance footage captured Pearson on video and observed him driving the kidnapping victim’s Chrysler 200.
Investigators linked Pearson to all the robberies, and he was taken into custody on September 4, 2019. He later confessed to committing the robberies.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Robeson County Sheriff’s Office, Red Springs Police Department, St. Pauls Police Department, Lumberton Police Department, and Fayetteville Police Department investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00008-M.
Klamath Falls Man Pleads Guilty to Cashing More than 40 Years' Worth of Deceased Relative's Social Security ChecksRead the Press Release
MEDFORD, Ore.—A Klamath Falls, Oregon man pleaded guilty today after cashing more than $458,000 worth of social security checks issued in the name of his deceased aunt.
George Doumar, 74, pleaded guilty to one count of theft of government funds.
According to court documents, in February 2020, the Social Security Administration’s (SSA) Office of Anti-Fraud Programs identified a 114-year-old supercentenarian who appeared to be the second-oldest living person in the U.S. receiving Social Security retirement benefits. The last known update to the recipient’s SSA benefit record was in July 1989, when the recipient’s address was updated to Frontier Parcel & Fax Service on S. 6th Street in Klamath Falls.
In March 2020, an investigator with SSA-OIG interviewed two of the benefit recipient’s nieces. Both nieces claimed that their aunt died in the 1960s or 1970s and recalled attending her funeral in Brooklyn, New York, where she had reportedly lived her entire life. According to one niece, their aunt did not have any children and was not married. She recalled that Doumar was named the sole beneficiary of her aunt’s insurance payout.
Investigators soon discovered that Doumar himself was an active Social Security beneficiary and received his checks at the same address on S. 6th Street in Klamath Falls. According to SSA records, Doumar purchased the property on S. 6th Street seven days prior to the address on his aunt’s benefit record being changed to the same address.
On June 16, 2020, SSA-OIG investigators obtained a copy of the aunt’s death certificate from the New York City Department of Health & Mental Hygiene, confirming that she had died on March 7, 1971 in Brooklyn. Investigators determined that Doumar had added his aunt to he and his wife’s shared checking account in 1989. His aunt’s Social Security checks were often bundled in deposits with other checks made payable to Doumar.
Investigators obtained bank surveillance footage from February 2020 that showed a man, who appeared to match Doumar’s physical description, depositing one of his aunt’s retirement checks. On July 14, 2020, investigators from SSA-OIG and USPIS interviewed Doumar at his Klamath Falls residence. When asked about his aunt, Doumar sighed, slumped his head, and stated, “that’s a long story…what happened was, well she’s passed and yes, I’ve been collecting her Social Security.”
On August 11, 2020, Doumar was charged by criminal complaint with theft of government funds and mail theft.
Doumar faces a maximum sentence of ten years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 3, 2021 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Doumar has agreed to pay $458,992 restitution to the SSA and $1,200 to the IRS.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The SSA-OIG and USPIS jointly investigated this case. It is being prosecuted by Special Assistant U.S. Attorney Rachel Sowray.
Judge Detains Coral Springs Man Charged with Attempted Murder and Drug TraffickingRead the Press Release
MIAMI, FL. – Today, a federal magistrate judge in Ft. Lauderdale ordered Horvin McKenzie, Jr., 28, detained pending his federal trial on attempted murder, narcotics, and firearms charges. McKenzie is one of the two men arrested last month after shots were fired at law enforcement officers working a drug trafficking investigation in Dania Beach, Florida.
According to court documents, McKenzie and his co-defendant, David Johnathan Ventura, 32, of Miami, conspired to sell two kilograms of cocaine to another person. The criminal complaint affidavit alleges the following: McKenzie, Ventura, and the buyer met at a retail store parking lot in Dania Beach on Friday, April 23, to make the deal. Law Enforcement Officers (LEOs) learned of the scheduled deal and went to the meeting location. After confirming that McKenzie and Ventura had arrived at the parking lot, LEOs activated the emergency lights on their vehicles. While wearing protective vests that identified the LEOs as such, LEOs approached the defendants, who were in separate cars. As they neared Ventura’s car, Ventura produced a firearm and began shooting at the approaching LEOs, hitting a detective in his arm and his bullet-proof vest. LEOs returned fire, hitting Ventura. McKenzie and Ventura were taken into custody. Ventura is currently in the hospital in stable condition. LEOs found a bag containing approximately two kilograms of cocaine and a Beretta .9mm semi-automatic handgun in Ventura’s car. They also found a loaded Glock .40 caliber semi-automatic handgun in McKenzie’s car.
McKenzie and Ventura are charged with Attempted Murder of a Person Assisting DEA Agents in Performance of Their Duties; Conspiracy to Distribute 500 Grams or More of Cocaine; Possession with Intent to Distribute 500 Grams or More of Cocaine; and Possession of a Firearm During and Furtherance of a Drug Trafficking Crime. If convicted, both men face up to life in prison with a mandatory minimum term of imprisonment of 10 years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; and La Verne Hibbert, Acting Special Agent in Charge of DEA’s Miami Field Office, made the announcement.
DEA Miami investigated this narcotics case, with assistance from Broward Sheriff’s Office, Fort Lauderdale Police Department, Margate Police Department, Coconut Creek Police Department, Plantation Police Department, and Wilton Manors Police Department. Florida Department of Law Enforcement is investigating the shooting.
Assistant U.S. Attorney Ajay J. Alexander is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-MJ-6264.
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Illegal Alien admits to reentry chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jose Luis Roberto Osornio-Ortega, a citizen of Mexico, has admitted to an illegal reentry charge, Acting U.S. Attorney Randolph J. Bernard announced.
Osornio-Ortega, 27, pleaded guilty today to one count of “Reentry of Removed Aliens.” Osornio-Ortega admitted to being in the U.S. illegally after being removed once before in February 2012. Osornio-Ortega was in Hardy County in December 2018.
Osornio-Ortega faces up to two 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 cases on behalf of the government. The Department of Homeland Security Immigration & Customs Enforcement investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to 24 months in federal prison for possession with intent to distribute heroin.
According to court documents, Harold Arthur Thompson, 30, previously admitted that on September 14, 2019, he was in a vehicle that was pulled over by a Putnam County Sheriff’s Deputy. During the traffic stop, Thompson exited the vehicle and attempted to conceal a plastic bag that contained 2.9 grams of methamphetamine and 2.5 grams of heroin after he removed it from his pants pocket by kicking it underneath his vehicle. Thompson admitted to possession of the heroin and methamphetamine and that both substances were packaged in individual plastic bags for sale. Thompson also admitted that he possessed digital scales and packaging materials.
The Putnam County Sheriff’s Department and West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Courtney L. Cremeans handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00151.
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Houston Man Sentenced to over Ten Years in Federal Prison for Massive Credit Card Fraud SchemeRead the Press Release
NEW ORLEANS, LA – United States District Judge Eldon E. Fallon sentenced EDWARD TOLIVER, age 47, a New Orleans native who had been living in Houston, Texas, to 124 months in federal prison for his role in a massive credit card fraud scheme, announced U.S. Attorney Duane A. Evans. The sentencing was held on April 29, 2021. In addition to 124 months imprisonment, TOLIVER received 3 years supervised release, to be served following his release, and he must pay a mandatory $200 special assessment fee ($100 per count).
According to the court records, TOLIVER previously pleaded guilty to a credit card fraud charge, as well as aggravated identity theft. This was his third federal conviction for credit card fraud, and he began the conduct for this conviction while he was still on probation from his previous conviction.
In a sworn factual basis, TOLIVER admitted that shortly after finishing a prison term in 2012, TOLIVER rented office space in an office park in Houston. He outfitted the space with equipment used to make fraudulent credit cards. Over the next several years, TOLIVER and his co-defendant, Maurice Durio, who also operated a card manufacturing plant in the same office park, obtained hundreds of thousands of stolen credit card numbers from a variety of sources, including a computer hacker TOLIVER had met in prison and by purchasing them on the dark web.
TOLIVER and Durio, with the assistance of several co-conspirators, created and/or downloaded credit card templates on laptop computers and transferred the stolen credit card numbers into the templates, which were then used to create tens of thousands of fraudulent access devices. The cards would generally be printed in batches with the same name appearing on numerous cards. The name was typically the real name of a co-conspirator. The cards were embossed with numbers, and corresponding account information was encoded on the strips on the back of the cards. The names of the co-conspirators/users of the fraudulent cards did not correspond to the actual account holders, who had not given permission for their accounts to be used. TOLIVER and Durio distributed thousands of fraudulent access devices to numerous individuals who then used them to fraudulently obtain things of value, including merchandise and gift cards.
The Secret Service, with the assistance of local law enforcement, investigated numerous instances in which individuals were caught with cards manufactured at the Houston plants operated by TOLIVER and Durio. Agents were able to tie these card seizures to the plants through several means.
In July 2014, a federal search warrant was executed at the Houston office park and agents seized device making equipment, including embossers, scanners, and high-end printers, thousands of cards, and a laptop computer. The computer had approximately 80,000 card numbers in files, as well as spreadsheets used to move the card numbers from the text files they came in when obtained through the dark web to the actual credit cards. Agents also obtained other laptops used by TOLIVER and Durio that contained approximately 300,000 additional card numbers.
The scheme used various methods to monetize the fraudulent credit card production. First, TOLIVER and Durio would simply sell cards. The buyer would pay them a set amount and then get to keep whatever the buyer could purchase with the cards. Second, TOLIVER and Durio would provide cards with the idea that the person getting the cards would buy merchandise and then sell the merchandise at a discount for cash and kick back some of the cash. Third, TOLIVER and Durio would provide cards and the person getting the cards would buy gifts cards, some of which were kicked back.
“I would like to commend the hard work of the dedicated prosecutors and investigators who helped bring to an end Mr. Toliver’s nearly two decade long criminal enterprise,” said Leslie Pichon, US Secret Service New Orleans Special Agent in Charge. “This sentencing should serve as a signal of the commitment between my office, the US Attorney’s Office and our Louisiana law enforcement partners to aggressively pursue and prosecute individuals who commit financial crimes like the ones perpetrated by Mr. Toliver and his associates.”
This case was investigated by Special Agents of the United States Secret Service. The prosecution is being handled by Assistant United States Attorney David Haller.
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Hampshire County man sentenced to more than 10 years for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jamie Lee Sirbaugh, of Springfield, West Virginia, was sentenced today to 121 months of incarceration for a methamphetamine charge, Acting U.S. Attorney Randolph J. Bernard announced.
Sirbaugh, 42, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Fifty Grams or More of Methamphetamine” in January 2021. Sirbaugh admitted to having more than 50 grams of methamphetamine, also known as “ice,” in February 2019 in Hampshire County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force includes the FBI, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, and the Keyser Police Department.
Chief U.S. District Judge Gina M. Groh presided.
Greensboro Man Sentenced to Five Years in Prison for Possessing Multiple Stolen Firearms in Furtherance of a Drug-Trafficking CrimeRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Demetrius O’Neill Bryant, 33, of Greensboro, Alabama, was sentenced in federal court for possessing multiple stolen firearms in furtherance of a drug-trafficking crime. Bryant pleaded guilty to the charge in January of 2021.
In connection with his guilty plea, Bryant admitted that on December 21, 2019, he possessed three loaded firearms in his residence in Greensboro. Two of the firearms recently had been reported stolen from gun stores in Demopolis, Alabama and Tuscaloosa, Alabama. In close proximity to the firearms, agents recovered marijuana, two sets of digital scales, and a box of plastic baggies. In a garbage can outside of Bryant’s residence, agents also recovered sales tags corresponding to stolen firearms and observed several large vacuum seal bags emitting the odor of marijuana. Bryant admitted that he frequently has sold marijuana from his Greensboro residence, that he possessed the marijuana, scales, and related paraphernalia recovered from his residence, and that he possessed the firearms recovered from his residence in furtherance of a drug-trafficking crime. Additional undisputed evidence introduced at Bryant’s sentencing hearing established that during his December 2020 arrest on the federal warrant in this case, agents recovered additional firearms, narcotics, and a stolen firearm silencer.
United States District Court Judge Terry F. Moorer imposed a sentence of 60 months’ incarceration, to be followed by a five-year term of supervised release. During that time, Bryant will undergo testing and treatment for substance abuse. The court did not impose a fine, but the judge ordered Bryant to pay a $100 special assessment.
This case was investigated by the Greensboro and Tuscaloosa Police Departments, the Hale County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin Roller.
Former Union Official Sentenced for Violent ExtortionRead the Press Release
An Indiana man and former business agent of Iron Workers Local 395 was sentenced today to more than four years in prison for conspiracy to commit Hobbs Act extortion.
Thomas Williamson Sr., 70, of Schererville, pleaded guilty on Jan. 24, 2020. According to court documents, Williamson organized and led an assault on a group of non-union ironworkers as part of an attempt to obtain a contract to perform construction work on the Plum Creek Christian Academy, a school affiliated with the Dyer Baptist Church in Dyer, Indiana.
In January 2016, Williamson learned that a non-union ironworking company was performing work for the Dyer Baptist Church, which he considered to be in Local 395’s “territory.” On Jan. 6, 2016, Williamson visited the construction site and made threats to the workers to get them to stop work on the site. Upon being rebuffed, Williamson then visited the church and attempted to persuade church officials to use Local 395 for the project instead of the non-union workers.
The day after these efforts failed, Williamson returned to the construction site along with then-Local 395 president Jeffrey Veach and a group of rank-and-file union members. At Williamson’s direction, the union members executed a coordinated and brutal assault on the non-union workers, beating their victims with loose pieces of hardwood, punching them and kicking them. The attack left one of the non-union workers with a broken jaw that required several surgeries and prolonged hospitalization.
Veach also pleaded guilty to conspiracy to commit Hobbs Act extortion and was separately sentenced to 42 months in prison in September 2020. Under federal law, both Williamson and Veach will be barred from holding any union position for at least 13 years following the end of their prison sentences.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division made the announcement.
The FBI’s Indianapolis Field Office and the Department of Labor, Office of Inspector General, Chicago Regional Office investigated the case with assistance from the Dyer Police Department in Indiana.
Trial Attorneys Alexander Gottfried and Robert Tully of the Criminal Division’s Organized Crime and Gang Section prosecuted the case. Assistant Chief for Labor-Management Racketeering Gerald Toner provided invaluable assistance in the prosecution of this case. Through its Labor Unit, the Organized Crime and Gang Section supports federal criminal prosecution in cases involving labor-management relations, internal union affairs, and the operation of employee pension and health care plans.
Former Tennessee Correctional Officer Sentenced Following Staff Assault of InmateRead the Press Release
A former Tennessee correctional officer was sentenced Friday to two years in prison and two years of supervised release for his involvement in a staff assault of an inmate.
Jonathan York, a former Tennessee Department of Corrections (TDOC) Officer at the Northwest County Correctional Complex in Tiptonville, Tennessee, was sentenced April 30. During the federal investigation, six former TDOC officers ultimately pleaded guilty to federal offenses arising out of the assault of the inmate and the cover up that followed. York is the second of the six to be sentenced.
“The defendant was held accountable for abusing his power and for violating the public’s trust in him as a correctional officer,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously prosecuting all who commit civil rights violations.”
“The United States Attorney’s Office is committed to the prosecution of criminal civil rights violations committed by corrections officers, who have a responsibility to treat those in their custody in a manner consistent with the U.S. Constitution and federal civil rights statute,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “This case is an example of that commitment.”
"This sentencing should be a reminder that wearing a badge does not make one above the law,” said Acting Special Agent in Charge Matthew Foster of the FBI Memphis Field Office. “Law enforcement officers or any other government employees who abuse their authority and use unlawful force will be vigorously investigated and prosecuted. The FBI will always work to bring to justice those who violate the civil rights of others."
On June 9, 2020, York pleaded guilty to using unlawful force while acting under color of law and conspiring to cover up the incident. With his guilty plea, York admitted that, on Feb. 1, 2019, he and other correctional officers entered the cell of R.T., an inmate in the mental health unit. Inside the cell, York asked a fellow officer to cover the surveillance camera and he then punched R.T. Although R.T. did not pose a threat to the officers, York punched R.T. approximately 30 times. York then stood by and watched as two other correctional officers punched R.T. After the assault of R.T., York spoke with other correctional officers and they conspired to tell a false cover story about what happened to R.T.
This case was investigated by the Memphis Division of the FBI with the support of the TDOC, and was prosecuted by Trial Attorney Rebekah J. Bailey of the Civil Rights Division and Assistant U.S. Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
Former Tennessee Correctional Officer Sentenced Following Staff Assault of InmateRead the Press Release
Memphis, TN – A former Tennessee correctional officer was sentenced Friday to two years in prison and two years of supervised release for his involvement in a staff assault of an inmate.
Jonathan York, a former Tennessee Department of Corrections (TDOC) Officer at the Northwest County Correctional Complex in Tiptonville, Tennessee, was sentenced April 30. During the federal investigation, six former TDOC officers ultimately pleaded guilty to federal offenses arising out of the assault of the inmate and the cover up that followed. York is the second of the six to be sentenced.
"The defendant was held accountable for abusing his power and for violating the public’s trust in him as a correctional officer," said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. "The Justice Department is committed to vigorously prosecuting all who commit civil rights violations."
"The United States Attorney’s Office is committed to the prosecution of criminal civil rights violations committed by corrections officers, who have a responsibility to treat those in their custody in a manner consistent with the U.S. Constitution and federal civil rights statute," said Acting U.S. Attorney Joseph C. Murphy Jr., for the Western District of Tennessee. "This case is an example of that commitment."
"This sentencing should be a reminder that wearing a badge does not make one above the law," said Acting Special Agent in Charge Matthew Foster of the FBI Memphis Field Office. "Law enforcement officers or any other government employees who abuse their authority and use unlawful force will be vigorously investigated and prosecuted. The FBI will always work to bring to justice those who violate the civil rights of others."
On June 9, 2020, York pleaded guilty to using unlawful force while acting under color of law and conspiring to cover up the incident. With his guilty plea, York admitted that, on Feb. 1, 2019, he and other correctional officers entered the cell of R.T., an inmate in the mental health unit. Inside the cell, York asked a fellow officer to cover the surveillance camera and he then punched R.T. Although R.T. did not pose a threat to the officers, York punched R.T. approximately 30 times. York then stood by and watched as two other correctional officers punched R.T. After the assault of R.T., York spoke with other correctional officers and they conspired to tell a false cover story about what happened to R.T.
This case was investigated by the Memphis Division of the FBI with the support of the TDOC and was prosecuted by Trial Attorney Rebekah J. Bailey of the Civil Rights Division and Assistant U.S. Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
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Former Operator of Waterville Medical Marijuana Business Sentenced on Federal Drug and Firearm ChargesRead the Press Release
BANGOR, Maine: A Benton man was sentenced today in federal court for distribution of cocaine and marijuana, possession of marijuana with intent to distribute and possession of firearms by an unlawful user of controlled substances, Acting U.S. Attorney Donald E. Clark announced.
Senior U.S. District Judge John A. Woodcock, Jr. sentenced Daniel Hall, 32, to 27 months in prison and three years of supervised release. Judge Woodcock also entered an order requiring Hall to forfeit almost $16,000 in cash, two shotguns, one handgun and ammunition. Hall pleaded guilty on January 5, 2021.
According to court records, on January 29, 2020, Hall distributed cocaine and marijuana to a confidential informant at Green Thumb Organics (GTO), Hall’s Waterville medical marijuana store. The informant did not have a medical marijuana patient card.
On February 19, 2020, investigators executed federal search warrants at GTO and Hall’s residence in Benton. At GTO, agents seized approximately three pounds of processed marijuana and “edible” marijuana items that in total weighed less than 50 kilograms. Agents also seized records, approximately $16,000 in cash proceeds, a video surveillance system and items of paraphernalia. At Hall’s residence, agents seized personal use quantities of drugs, drug paraphernalia, two shotguns, a handgun and ammunition.
“This was a great collaborative effort that resulted in the successful investigation and prosecution of Daniel Hall,” said Waterville Chief of Police Joseph Massey. “This was an important case because Mr. Hall owned and operated a medical marijuana business in Waterville where he illegally sold marijuana and other illegal drugs.”
The U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Waterville Police Department and the Somerset County Sheriff’s Office investigated the case.
Felony Lane Gang Member Sentenced in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Fort Lauderdale, Florida man was sentenced to federal prison today for his role in a bank fraud and identity theft scheme targeting female victims in the Portland Metropolitan Area.
Damian Fletcher, 27, was sentenced to three years in federal prison and three years’ supervised release.
According to court documents, Fletcher is a member of the Felony Lane Gang, an interstate criminal organization based in Florida that travels to locations throughout the U.S. to commit vehicle break-in and fraud sprees. The organization targets female victims who leave their purses, wallets, and valuables in parked cars. After victims exit their vehicles—often to drop off children, run errands, or visit a gym—Felony Lane Gang members break into the vehicle to steal targeted items. After the theft, conspirators quickly deploy associates to conduct fraudulent bank or merchant transactions using stolen identification, checks, and credit or debit cards.
In the fall of 2019, Fletcher and five co-conspirators traveled to Portland to target local victims. Once Fletcher and his partners stole items from a vehicle, they checked to see if one of several female co-conspirators resembled the victim. If one of their female co-conspirators could impersonate the victim, they would attempt to cash fraudulent checks written in the impersonated victim’s name. The conspirators would cash checks at various local banks, using the outer-most lane of each bank’s drive-up teller window to avoid detection.
Investigators identified 32 vehicle thefts and 22 instances of bank fraud committed during Fletcher’s most recent known Oregon crime spree. In total, this spree resulted in a financial loss of more than $98,000. Fletcher was arrested on March 9, 2020 in Florida.
On June 6, 2020, a federal grand jury in Portland returned a 14-count superseding indictment charging Fletcher and five co-defendants with conspiring to commit bank fraud, bank fraud, and aggravated identity theft.
On January 7, 2021, Fletcher pleaded guilty to conspiring to commit bank fraud and aggravated identity theft.
During sentencing, U.S. District Court Judge Michael W. Mosman ordered Fletcher to pay $98,733 in restitution.
Co-defendants Delvin Mills, 29, of Lauderdale Lakes, Florida; Megan Spurlock, 27, a Washington State resident; and Linda Marie Lupo, 52, of Deerfield, Florida; have all pleaded guilty and are awaiting sentencing.
Co-defendants Justin Curry, 28 of Fort Lauderdale, and Treveon Donte Jordan, 23, of Lauderdale Lakes, are on pre-trial release pending a four-day jury trial scheduled to being on June 15, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the West Linn Police Department, Tualatin Police Department, and Clark County Sheriff’s Office. It was prosecuted by Seth D. Uram and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.
Federal charges filed against operators of Houston stash houseRead the Press Release
HOUSTON – Five individuals in the United States illegally have been taken into custody following the discovery of nearly 100 undocumented aliens in a suburban Houston residence, announced Acting U.S. Attorney Jennifer B. Lowery.
The criminal complaint charges Marina Garcia-Diaz, 22, El Salvador; Henry Licona-Larios, 31, Copan, Honduras; Kevin Licona-Lopez, 25, Santa Barbara, Honduras; Marco Baca-Perez 30, Michoacan, Mexico; and Marcelo Garcia-Palacios, 21, Oaxaca, Mexico. All are noncitizens of the United States residing here illegally. They are expected to make their initial appearances before U.S. Magistrate Judge Christina Bryan at 2 p.m. today.
The criminal complaint, filed Saturday, alleges all five harbored, concealed and shielded illegal aliens for the purpose of commercial advantage or private financial gain.
The investigation began after authorities allegedly received a call from a woman reporting her brother had been kidnapped. She had paid several thousand dollars for him to be smuggled into the United States, according to the charges. However, the smugglers had allegedly demanded additional money before they would release her brother. They also threatened to kill him, according to the charges.
The investigation led to a residence on Chessington Drive in Southwest Houston, according to the complaint. Authorities ultimately found 97 undocumented noncitizens allegedly being held in two rooms of the residence. The charges allege the rooms had deadbolts on the doors facing the outside which prevented escape.
All of the male individuals were in their undergarments, according to the complaint.
The charges also allege at least one was told if the money was not paid, he would be put in “4 pieces of wood.”
Several of the held individuals allegedly identified Garcia-Diaz, Licona-Larios, Licona-Lopez, Baca-Perez and Garcia-Palacios as those conducting the smuggling operation.
If convicted, each faces up to 10 years in federal prison and a possible $250,000 maximum.
Homeland Security Investigations conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Drug Trafficker Is Sentenced to Nine YearsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced today Juan Jose Benton, 46, of Charlotte, N.C. to 108 months in prison to be followed by a term of supervised release for possession of a firearm in furtherance of a drug trafficking crime, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Johnny Jennings, Chief of the Charlotte-Mecklenburg Police Department, join U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, from at least 2013 to 2018, Benton was the leader of a drug trafficking ring operating in Mecklenburg County. Over the course drug conspiracy, Benton regularly purchased multiple kilograms of cocaine, which he distributed in bulk quantities to other drug traffickers in the greater Charlotte area. Court records show that on March 13, 2018, law enforcement executed a search warrant at Benton’s residence in Waxhaw, N.C., where they seized approximately $2 million in cash from the defendant’s basement. Elsewhere in the residence, law enforcement recovered two firearms and more cocaine. On the same date, law enforcement conducted a traffic stop of the vehicle Benton was driving, from which they recovered more than $76,900 in cash. Also on that date, a second search warrant was executed at a storage unit rented by the defendant at a facility in Charlotte, in which they found more than four kilograms of cocaine, over eight pounds of marijuana, and more than $315,000 in drug proceeds.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the DEA, and Charlotte-Mecklenburg Police Department for handling the investigation.
Assistant U.S. Attorneys William Bozin and Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Drug Gang Member Pleads Guilty and Gets 7+ Year Federal Prison SentenceRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a drug-trafficking charge in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, Acting United States Attorney Stephen R. Kaufman announced today.
Anthony Jetter, age 32, pleaded guilty to one count of conspiring to distribute more than 40 grams of fentanyl and more than 100 grams of heroin before United States District Judge William S. Stickman IV. Jetter was immediately sentenced following his guilty plea to 87 months’ imprisonment and four years’ supervised release.
According to the information presented to the court, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a large-scale narcotics and firearms investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of the investigation, the United States received authorization to intercept wire communications of several of the suspected members of the conspiracy through June of 2019. Communications intercepted established Jetter’s role in distributing heroin and fentanyl obtained from his codefendant Christopher Highsmith, one of the highest members of the drug-trafficking organization.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Don’t Be A Victim: Join Us May 12 for a Free Senior Outreach Event on Protecting Yourself from Financial Fraud and Potential ScamsRead the Press Release
PITTSBURGH - On May 12, 2021 at 10:00 a.m., the United States Attorney’s Office for the Western District of Pennsylvania, the Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI) Pittsburgh Division, and the Allegheny County Area Agency on Aging (AAA) are holding a virtual town hall event on protecting seniors from financial fraud and potential scams during the COVID-19 pandemic, Acting U.S. Attorney Stephen R. Kaufman announced.
One of the best ways to protect yourself or a loved one from financial fraud is to remain informed. The U.S. Attorney’s Office, the SEC, the FBI, and AAA have partnered to raise awareness and educate seniors in Pennsylvania about the latest financial scams.
The free virtual town hall will be live on the SEC’s website, www.sec.gov, between 9:55 a.m. and 11:00 a.m. on Wednesday, May 12, 2021 ET. Attendees are also able to call in using the dial-in: 415-527-5035, with the event ID 199 557 2341.
Participants may submit questions for the speakers in advance to: [email protected].
The DOJ Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educating older adults on how to identify scams; and promoting greater coordination with law enforcement partners. The DOJ provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov. Elder fraud complaints may be sent to the U.S. Attorney’s Office at [email protected] or to the IC3 at www.ic3.gov.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national who previously resided in Bronx, N.Y., was sentenced on April 29, 2021 in federal court in Boston for fentanyl distribution.
Yamel Cuevas Gonzalez, 35, was sentenced by U.S. District Court Judge Indira Talwani to 10 years in prison and five years of supervised release. Upon completion of his sentence, Gonzales will face deportation to the Dominican Republic.
On Jan. 19, 2021, Gonzalez pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and three counts of distribution of and possession with intent to distribute 400 grams or more of fentanyl.
Over the course of approximately six months in 2019, Gonzalez made three separate sales of fentanyl to an individual in Massachusetts. Gonzalez drove to Massachusetts from New York and met the individual at a pre-arranged location, where they exchanged drugs for money. On August 5, 2019, Gonzalez and another individual, who is pending trial, allegedly drove from New York to Walpole to meet with a buyer. The sale was surveilled by federal agents, who subsequently arrested Gonzalez and his companion. The money from the sale was found in the vehicle.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Walpole and Dedham Police Departments. Assistant U.S. Attorney Nadine Pellegrini of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
DEA and Partners Announce Results of 20th National Prescription Drug Take Back DayRead the Press Release
NEW ORLEANS – DEA’s National Prescription Drug Take Back Day collected 829,543 pounds (419.7 tons) of unused, expired, and unwanted medications across the country. The New Orleans Field Division (NOFD) collected 45,603 pounds of that grand total. Americans once again showed their dedication toward helping prevent addiction and potential overdose by removing prescription pills from their homes. Our April event included 4,425 community partners at 5,060 collection sites throughout the country.
“DEA’s biannual Take Back Day events are critical to helping reduce overdose deaths and alleviate addiction by safely disposing of prescription medications that sit idle in the home,” said DEA Acting Administrator D. Christopher Evans. “DEA is committed to providing a safe and secure method for the public to rid their homes of potentially dangerous drugs.”
DEA Special Agent in Charge Brad L. Byerley said, “DEA’s National Prescription Drug Take Back Day events continue to remove even-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen or abused. Residents in this region took a vital step in reducing the risk of prescription drug diversion by turning in over 45,600 pounds of medications. DEA thanks the citizens and community partners for their vast support in this crucial event.”
DEA, along with its law enforcement partners, has now collected 14,670,240 million pounds of medications since the inception of the National Prescription Drug Take Back Initiative in 2010. On Oct. 24, 2020, the public turned in a record 985,392 pounds – almost 493 tons – of medication to DEA and 4,153 of its community partners at 4,587 collection sites nationwide, including 33 Bureau of Indian Affairs sites.
DEA’s NOFD, which covers Louisiana, Mississippi, Alabama and Arkansas, collected 45,603 pounds of potentially dangerous expired, unused and unwanted prescription drugs for disposal at collection sites throughout the division. The amounts collected for each state within the division was the following: Louisiana – 6,050 pounds; Mississippi –5,748 pounds; Alabama – 5,100 pounds; and Arkansas – 28,705 pounds.
For those who could not make it to a Take Back location, DEA reminds the community that every day is Take Back Day with more than 11,000 year-round authorized collection sites across the country. For more information, visit: https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1.
DEA also encourages the public to reach out to their local law enforcement to find out if they have any permanent drug disposal locations throughout their local community.
Complete results for DEA’s April 2021 Take Back Day are available at www.deatakeback.com.
Photos and video from Take Back Day are available at https://flic.kr/s/aHsmVkw4ra.
Cotulla man sentenced for trafficking over 1000 pounds of marijuanaRead the Press Release
LAREDO, Texas – A 37-year-old local man has been ordered to federal prison for his role in a conspiracy to possess with intent to distribute marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.
Al Lopez pleaded guilty Feb. 8.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a 60-month sentence to be immediately followed by five years of supervised release.
On March 5, 2019, Lopez arrived at the Border Patrol (BP) Checkpoint on Highway 83 north of Laredo, driving a truck with a trailer attached. After a K-9 alerted to the trailer, law enforcement conducted a searched and found 43 bundles wrapped in black tape hidden under the floor of the trailer.
The bundles contained a total of 465.5 kilograms of marijuana with a street value of approximately $300,000.
Lopez 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 with the assistance of BP. Assistant U.S. Attorney David Fawcett prosecuted the case.
Convicted Fraudster Awaiting Sentencing Charged Again in New Embezzlement SchemeRead the Press Release
BOSTON – A Canton woman convicted of embezzling more than $1.3 million from her employer has agreed to plead guilty to a new fraud scheme.
Nicole Lescarbeau, a/k/a “Nicole Coulibaly”, 53, was charged by information with wire fraud and bank fraud. A plea hearing has not yet been scheduled by the Court.
In December 2019, Lescarbeau pleaded guilty to wire fraud, bank fraud, and aggravated identity theft in connection with a similar embezzlement scheme. While out on pre-trial release in the prior case, Lescarbeau was hired as an administrator at a small, Brookline-based non-profit organization. It is alleged that Lescarbeau did not tell the non-profit about her pending indictment and applied for the position using her married name in an effort to conceal the prior charges. From August 2019 until February 2020, Lescarbeau allegedly used her position to steal funds from the non-profit for her personal use. Specifically, Lescarbeau diverted checks to herself that the non-profit had issued for legitimate business by altering the name of the payee on the checks and then depositing them into her personal bank account. It is also alleged that Lescarbeau opened a PayPal account in the non-profit’s name to make unauthorized wire transfers from the non-profit’s bank account and made transfers directly from the non-profit’s bank account to pay for her personal rent. In total, as a result of this scheme, Lescarbeau allegedly embezzled nearly $57,000 from the non-profit’s bank account.
Pursuant to the plea agreement, the government will recommend a sentence of at least 18 months in prison, five years of supervised release, a fine within the guidelines range, restitution and forfeiture.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant United States Attorney Justin D. O’Connell of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Company Owner Pleads Guilty to Falsifying Pension Contribution ReportsRead the Press Release
BOSTON – An owner of a New Hampshire asbestos abatement company pleaded guilty on Friday, April 30, 2021 in federal court in Boston to making false statements to employee pension plans.
Richard Quinn, 58, of Sterling, Mass., pleaded guilty to one count of making false statements to a pension plan covered by the Employee Retirement Security Act (ERISA). U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 30, 2021.
According to the court documents, Quinn and another individual, Gary McCaffrey, owned and operated Absolute Environmental Inc., an asbestos abatement company. Between November 2014 and May 2017, Quinn and McCaffrey allegedly continued to employ several undocumented individuals after being notified of their status. During this time period, McCaffrey and Quinn are alleged to have knowingly falsified reports to pension plans about the work performed by the undocumented individuals, failing to make required pension contributions of over $337,000. McCaffrey has also agreed to plead guilty. His plea hearing is scheduled for May 25, 2021.
Pursuant to Quinn’s plea agreement, the government will recommend that Quinn serve a sentence of two years of supervised release, six months of home confinement and a fine of $10,000 to $25,000.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Nathaniel R. Mendell; Michael C. Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of the Inspector General, Office of Investigations Labor Racketeering and Fraud, New York Region; and Carol Hamilton, Boston Regional Director of the Employee Benefits Security Administration made the announcement. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Central Texas Lawyer Sentenced for Swindling Colombian Drug Trafficking ClientsRead the Press Release
SHERMAN, Texas – A Central Texas criminal defense lawyer was sentenced to federal prison today for an international fraud scheme involving his Colombian cocaine trafficking clients, announced Acting U.S. Attorney Nicholas J. Ganjei.
James Morris Balagia, 65, of Manor, Texas was found guilty by a jury on Oct. 29, 2019, of five federal charges and was sentenced to 188 months in federal prison today by U.S. District Judge Amos Mazzant. Balagia was also ordered to forfeit his law office building in Manor, Texas, and a money judgment of $1.5 million.
According to information presented in court, Balagia, also known as Jamie Balagia, also known as “The DWI Dude,” had a law practice with offices in San Antonio and Manor, specializing in defending clients charged with violations such as driving while intoxicated and drug possession. In 2014, Balagia conspired with Florida private investigator Chuck Morgan, and Colombian attorney, Bibiana Correa Perea to swindle Colombian drug traffickers under the guise of bribing officials in the United Sates. During meetings in Colombia and in Collin County, Texas, the group represented that in exchange for inflated “attorney fees,” they were in contact with government officials in the United States who would accept bribes resulting in either the dismissal of their criminal charges or significant reductions in their U.S. federal prison sentences. In reality, there were no bribes or government officials.
The Office of Foreign Assets and Control (OFAC) had previously designated Balagia’s Colombian clients as “Specially Designated Narcotics Traffickers.” These individuals were considered some of the biggest drug traffickers in the world. As such, they were on an OFAC list, essentially freezing their assets and prohibiting U.S. persons from engaging in any financial transactions or dealings with them unless they had received an OFAC license. In order to comply with federal requirements under the “Kingpin Act,” Balagia was advised to obtain an OFAC license on multiple occasions but failed to do so.
As part of the scheme, Balagia provided Colombian co-conspirators with his personal bank account number and routing number. Evidence at trial showed multiple deposits over several months into the account in amounts intended to avoid federal cash transaction reporting requirements. The cash deposits were made at bank counters across the United States by anonymous individuals with daily deposits totaling just under the $10,000 reporting threshold. Additionally, at least four bulk cash payments were made to Balagia in amounts ranging from approximately $70,000 to $120,000. Balagia admitted to driving from his San Antonio office to a mall parking lot in Katy, Texas, where he was given a shopping bag filled with bundles of cash from either an unknown individual, or an individual who identified himself only as “Coco.” In an attempt to conceal these payments, Balagia failed to report the payments as required by federal law.
Balagia was indicted by a federal grand jury on Dec. 15, 2016. Bibiana Correa Perea pleaded guilty and was sentenced to 84 months in federal prison on June 29, 2018. Chuck Morgan pleaded guilty and was sentenced to 72 months in federal prison on Mar. 8, 2018.
Balagia was found guilty following a two-week trial of conspiracy to commit money laundering; obstruction of justice, violation of the Kingpin Act; conspiracy to commit wire fraud; and conspiracy to obstruct justice.
“We live in a country with the greatest system of justice in the world,” said Acting U.S. Attorney Nicholas Ganjei. “That system, however, cannot function when officers of the court are corrupt. The evidence in this case demonstrated that Balagia had been shaking down his clients for years by claiming that he was able to purchase favorable deals from prosecutors and judges alike. The Department of Justice will defend our Justice system vigorously and will prosecute predatory lawyers like Balagia every single time they are discovered.”
“The FBI combats public corruption at all levels and will protect and defend the U.S. justice system from those who attempt to diminish its integrity,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Today’s sentence demonstrates that officials who misuse their influence for personal financial benefit will be held accountable.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys Heather H. Rattan and Jay Combs.
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Berkeley County woman sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jacqueline L. Krsul, of Falling Waters, West Virginia, was sentenced today to 24 months of incarceration for cocaine possession, Acting U.S. Attorney Randolph J. Bernard announced.
Krsul, 31, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base” in January 2021. Krsul admitted to having cocaine base or “crack” in April 2020 in Morgan County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Morgan County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bergen County Man Admits Engaging in Conspiracy to Defraud Former EmployersRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted engaging in a conspiracy to divert to his personal use over $516,000 in customer payments owed to his former employers, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Spaccavento, 41, of Ramsey, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From February 2013 through September 2018, Spaccavento conspired with a former co-worker, Melissa Corso, to divert customer payments owed to their former employers for their own use and benefit. Corso instructed certain customers of the victim companies to submit their payments to a PayPal account (the “Scheme Account”) registered in Spaccavento’s name and associated with Corso’s work email address. The account was not authorized by the victim companies.
Spaccavento and Corso caused withdrawals to be made from the Scheme Account and diverted the funds to the personal PayPal accounts of Spaccavento, Corso, and others. Spaccavento and Corso also caused transfers of funds from the Scheme Account to various commercial retailers to pay for personal expenses. Purchases from these commercial retailers were shipped to the home and work addresses of Spaccavento, Corso, and others. The victim companies lost $516,857.
Corso was arrested on Feb. 5, 2021, and charged by complaint with two counts of wire fraud for diverting customer payments owed to the victim companies to the Scheme Account for personal use. Those charges and allegations against Corso contained in the complaint, which is still pending, are merely accusations, and Corso is presumed innocent unless and until proven guilty.
The conspiracy to commit wire fraud count is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. Sentencing is scheduled for Sept. 9, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Alexandria Man Pleads Guilty to Methamphetamine Trafficking and Firearm ChargesRead the Press Release
CONCORD - Robert Adkins, 33, of Alexandria, pleaded guilty in federal court to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 25, 2019, the Andover Police Department was investigating the theft of logging equipment. While at the suspect’s home, the suspect arrived home in his truck with Adkins as his passenger. While executing a search warrant for the suspect’s truck, they located a backpack belonging to Adkins. Inside the backpack they located identification for Adkins, a digital scale and a locked case.
After obtaining another search warrant for the backpack and locked case, investigators found a handgun, a loaded magazine, 36 grams of methamphetamine, and drug packaging materials. The handgun had been reported stolen from Ashland, New Hampshire.
Adkins is scheduled to be sentenced on August 10, 2021.
“Armed drug traffickers pose a serious danger to public health and safety,” said Acting U.S. Attorney Farley. “Thanks to excellent police work and law enforcement collaboration, this armed drug dealer is no longer able to sell methamphetamine. As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute the drug traffickers who threaten the citizens of the Granite State.”
This matter was investigated by the Andover Police Department, Danbury Police Department, and Alexandria Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
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Akron Man Pleads Guilty to Role in Federal Methamphetamine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio, man pleaded guilty today in connection with his role in a methamphetamine conspiracy.
According to court documents, Tionte Lavon Blanchard, 25, admitted that from the fall of 2018 to June 2019, he and others participated in a conspiracy to distribute methamphetamine that was frequently shipped from Akron to various locations in West Virginia. During the conspiracy, Blanchard utilized a residence on 25th Street in Huntington to store methamphetamine after it arrived from Akron. On June 6, 2019, investigators executed a search warrant at the residence and seized over 1.7 kilograms of 100% pure methamphetamine. Blanchard admitted that he possessed the methamphetamine and intended to distribute it in the Huntington area.
Blanchard pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine and faces a mandatory minimum of at least 10 years and up to life in federal prison when he is sentenced on August 9, 2021.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Joseph F. Adams is handling the prosecution. United States District Judge Robert C. Chambers presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-000245.
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"John Doe" Charged in Superseding Indictment with Identity Theft and Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Charlestown man whose identity is unknown was charged last week in connection with an alleged scheme to fraudulently claim COVID-19-related unemployment assistance and commit other frauds, all in connection with his use of a stolen identity.
An individual referred to as “John Doe”, was charged in a superseding indictment with three counts of wire fraud, one count of false representation of a Social Security number and one count of aggravated identity theft. The original indictment charged Doe with one count of making a false statement in a passport application.
As alleged in the superseding indictment, Doe applied for and received Massachusetts unemployment benefits totaling over $15,000 using the name and personally identifiable information of a resident of Puerto Rico. Doe allegedly requested that the benefits be paid to a prepaid debit card, which he used for cash withdrawals at ATM machines and for the purchase of goods and services.
The indictment also alleges that Doe used the Social Security number of the Puerto Rican victim on an application for a duplicate driver’s license Doe submitted to the Massachusetts Registry of Motor Vehicles in 2017.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of passport fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for two years in prison to be served consecutive to the term for the underlying felony, which in this case is the false representation of a Social Security number. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation is being conducted by the U.S. Department of State's Diplomatic Security Service together with Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew F. O’Brien, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Mikulka Michael, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud made the announcement today. Assistant U.S. Attorneys James D. Herbert of Mendell’s Health Care Fraud Unit and Alathea Porter of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
2 May 2021
Felix Verdejo-Sanchez Arrested for Kidnapping and Carjacking Resulting in Death, and Intentionally Killing an Unborn ChildRead the Press Release
SAN JUAN, Puerto Rico – Today, federal authorities arrested Felix Verdejo-Sanchez for federal crimes arising from the murder of Keishla Rodriguez Ortiz, announced United States Attorney W. Stephen Muldrow, Federal Bureau of Investigation (FBI), Assistant Special Agent in Charge Felix Alvarado, and Alexis Torres, Secretary of the Puerto Rico Department of Public Safety. The FBI is in charge of the investigation with the close collaboration and support of the Puerto Rico Police Bureau and the Puerto Rico Department of Justice.
Specifically, Felix Verdejo-Sanchez was arrested on a federal criminal complaint charging him with: (1) kidnapping resulting in death, in violation of Title 18, United States Code, Section 1201; (2) carjacking resulting in death, in violation of Title 18, United States Code, Section 2119(3); and (3) intentionally killing an unborn child, in violation of Title 18, United States Code, Section 1841, also known as the “Unborn Victims of Violence Act of 2004” or “Laci and Conner’s Law.” The statutory penalties for violations of the kidnapping and carjacking statutes include life imprisonment or the death penalty, and life imprisonment for the intentional killing of an unborn child.
“I commend our partners in the FBI, the Puerto Rico Police Bureau, and the Puerto Rico Department of Justice for their dedicated and tireless efforts that led to the charges and arrest of the defendant,” said United States Attorney Muldrow. “We will continue working towards the ending of gender-based violence, and we offer our deepest condolences to the family of the victim.”
“Our hearts go out to the family and friends of the victim,” said Felix Alvarado, Assistant Special Agent in Charge of the FBI San Juan Field Office. “It is important to note that the quick turnaround in this investigation could not have been possible without the amazing efforts of our colleagues of the Puerto Rico Police Bureau’s CIC Division,” ASAC Alvarado added.
“Puerto Rico mourns Keishla Rodríguez's death. Our deepest condolences to her family and friends. The Puerto Rico Police Bureau and the federal agencies have worked long hours collaborating as a team to solve this cold murder expeditiously. Our police officers' dedication, passion and experience were essential in solving this murder in 48 hours. It demonstrates how the collaboration of efforts is essential for our public safety. We'll keep on working together and we will seek justice for Keishla,” said Alexis Torres, Secretary of the Department of Public Safety.
“We are proud of the work done by each of the Justice Department prosecutors, who worked day and night together with the team of the Puerto Rico Police Bureau and the Institute of Forensic Sciences to gather all the pieces that allow the prosecution of those responsible for the crime. We trust that the work of our prosecutors in this case will begin to restore the people's trust in justice,” said Domingo Emanuelli, Secretary of the Puerto Rico Department of Justice.
“I congratulate the policemen, prosecutors and forensic sciences personnel, who, as a single team, tirelessly and with the greatest of commitments, put their hearts to solve Keishla's case in an agile and precise way. Our commitment to her family, from day one, was to do justice to Keishla and we have already begun to do so,” said Antonio López, Puerto Rico Police Bureau Commissioner.
As noted above, the FBI and U.S. Attorney’s Office worked in close collaboration with the Puerto Rico Police Bureau and the Puerto Rico Department of Justice in this case. The case is being prosecuted by Assistant United States Attorney Jonathan Gottfried, Chief of the Violent Crimes and National Security Section at the U.S. Attorney’s Office.
The public is reminded that criminal complaints and indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
1 May 2021
U.S. Attorney’s Office and Federal Public Defender Announce Post-Conviction Reentry ProgramRead the Press Release
SAN JUAN, Puerto Rico – The United States Attorney’s Office, District of Puerto Rico, in partnership with Federal Public Defender and the U.S. Probation Office, announced a joint initiative to establish a post-conviction reentry pilot program: RESCATE (Reentry Supervised Released Court Alternative). On April 30, 2021, Chief U.S. District Judge Gustavo A. Gelpí issued a Standing Order announcing the Court’s sponsorship of the program.
The program aims to eliminate re-arrest rates of qualifying participants, control danger to the community using intensive supervision, and provide qualifying participants with opportunities to improve their living conditions in order to reduce recidivism. The program will serve participants who were previously convicted and sentenced in the United States District Court for the District of Puerto Rico and who are or will be serving a term of supervised release. The first pilot group will begin with 8 participants, whose cases will be reassigned temporarily to the docket of the reentry judge overseeing the program, U.S. District Judge Silvia Carreño-Coll. The one-year program will be divided into three phases: early recovery, four months; continued care, five months; and relapse prevention, 3 months. The participants will attend monthly court hearings where their progress reports prepared by the U.S. Probation Office will be discussed and goals will be set. Upon successful completion of the one-year program, participants will receive reductions in their supervised release terms.
“The RESCATE program will offer participants the tools to succeed once they reenter the community, promote public safety and reduce the costs incurred in revocation proceedings,” stated U.S. Attorney W. Stephen Muldrow. “We commend the efforts of our colleagues at the Federal Public Defender and the U.S. Probation Office, who have joined us in the development and implementation of this initiative, along with the steadfast support from the U.S. District Court. It is our firm commitment to turn this pilot program into a permanent post-conviction program in the District of Puerto Rico.”
“We are excited to work with the Court, United States Probation and the United States Attorney’s Office to better the lives of our clients as they embark on re-entering society and becoming happier and more productive citizens,” said Eric Vos, the Chief Defender for the Federal Public Defender’s Office for the District of Puerto Rico.” “The Program demonstrates the government and court’s commitment to servicing our citizens and we are proud to join forces to better serve the Federal Defender’s clients.”
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30 April 2021
Westborough Man Pleads Guilty to Trafficking in Contraband Smokeless TobaccoRead the Press Release
BOSTON – A Westborough man pleaded guilty on Wednesday, April 28, 2021 in federal court in Worcester to trafficking contraband smokeless tobacco into Massachusetts.
Muhammad Mushtaq Balaparaya, 60, pleaded guilty to two counts of trafficking in contraband smokeless tobacco. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 20, 2021.
According to court documents, between December 2014 and October 2016, and again between July 2017 and April 2018, Balaparaya transported more than 500 units of contraband smokeless tobacco in violation of federal law. Balaparaya imported the contraband smokeless tobacco into Massachusetts from Pennsylvania, where he had obtained it. At no time was Balaparaya licensed to sell or distribute tobacco products in Massachusetts, nor had Balaparaya paid the required excise tax on the smokeless tobacco products that agents seized from him.
The charging statute provides for a sentence of up to five years in prison for each count, up to three years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Mendell’s Worcester Branch Office are prosecuting the case.
United States Attorney’s Office Announces 18th Annual Project Safe Neighborhoods Logo Contest WinnersRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today the winners of the United States Attorney’s Office’s 18th Annual Project Safe Neighborhoods (PSN) Logo Contest, which was open to all South Carolina grade school students.
The theme of this year’s contest was “Preventing Gun Violence in Our Schools.” Judges sought logos that demonstrated a successful collaboration between schools, communities, and law enforcement to reflect (1) warning signs that students should be looking for related to gun violence; (2) resources to help students who have concerns about gun violence; and (3) general messages to prevent gun violence in South Carolina schools.
“Stopping gun violence, particularly in our schools, is imperative,” said Acting U.S. Attorney DeHart. “This year’s contest is one way to enhance the necessary dialogues in our schools to end gun violence and ensure school safety. The United States Attorney’s Office thanks all students, teachers, and schools that participated in the contest and congratulates this year’s winners.”
The overall winning logo will be used in publications distributed statewide and displayed on the United States Attorney’s Office website. The winner from each grade division and overall winner are named below:
Winner 9th-12th grade Division/ OVERALL WINNER
Alyssa Earnhardt, C.A. Johnson High School
Columbia, SC
Winner 6th-8th grade Division
Jasmine Lucas, William J. Clark Middle School
Orangeburg, SC
Winner 3rd-5th grade Division
Sanjana Kumar, Fairfield Magnet School
Winnsboro, SC
Winner K-2nd grade Division
I’Yanna Bryant, Wilder’s Elementary School
Sumter, SC
The winning entries were chosen by a select group of young leaders at the South Carolina Department of Juvenile Justice who act as role models for the other youth throughout the entire department. The South Carolina Law Enforcement Officers’ Association Foundation will provide $50.00 awards to each division winner; and the overall winner, Alyssa Earnhardt, a student at C. A. Johnson High School in Columbia, will receive an additional $50.00 award. All students who participated will receive a Certificate of Appreciation for their submissions.
The annual logo contest is a long-running part of the district’s PSN program and an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. PSN focuses on reducing violent crime in our communities through prevention, enforcement, and reentry initiatives.
View this year’s winning submissions and learn more about the contest at http://www.justice.gov/usao/sc/programs/logowinners.html.
Two Tulsa Men Sentenced in Separate Methamphetamine Distribution CasesRead the Press Release
Two men were sentenced late this week for possessing with intent to distribute multiple kilos of methamphetamine in the Tulsa-Metro area, announced Acting U.S. Attorney Clint Johnson.
“In these two cases, large quantities of methamphetamine were confiscated and removed from the illegal drug market,” said Acting U.S. Attorney Clint Johnson. “Federal prosecutors and our law enforcement partners are intent on holding traffickers accountable for distributing deadly methamphetamine and other narcotics in Oklahoma’s communities.”
U.S. District Judge John F. Heil III sentenced Marco Antonio Zavala- Cervantes, 27, of Tulsa, to 210 months in federal prison followed by five years of supervised release. Zavala-Cervantes pleaded guilty for possessing with intent to distribute 6 kilograms of pure methamphetamine and to unlawfully reentering the United States. Zavala-Cervantes was previously removed from the country on April 21, 2018.
After coordination between the Drug Enforcement Administration and the Oklahoma Highway Patrol, a trooper stopped Zavala-Cervantes for a traffic violation on June 2, 2020. The defendant claimed he was returning from a construction job in Muskogee. During the stop, a K-9 was deployed and positively alerted to the presence of narcotics inside the vehicle. Officers then conducted a probable cause search of the vehicle and discovered six gallon sized bags filled with pure methamphetamine that had an estimated street value of $78,000. Pure methamphetamine can be diluted into even larger quantities for resale. In a subsequent search of his phone, investigators discovered that in one day, the defendant had engaged in multiple drug sales worth in excess of $10,000.
The Drug Enforcement Administration and Oklahoma Highway Patrol conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
In a separate case, U.S. District Judge Gregory K. Frizzell sentenced drug distributor Richard Howard Barnett III, 25, of Tulsa, to 240 months in federal prison followed by five years of supervised release.
Barnett III, pleaded guilty in January 2021 to two counts of possession of methamphetamine with intent to distribute; possession of heroin with intent to distribute; and two counts of possession of firearms in furtherance of drug trafficking crimes.
On Feb. 5, 2019, the Tulsa Police Department Special Investigations Division’s Narcotics Unit executed a probable cause warrant on Barnett’s residence in Tulsa. After announcing their presence, a male identified as Richard Barnett attempted to flee from a door along the side of the garage. Officers subdued Barnett, and as he was being taken into custody, a Taurus semi-auto pistol fell from his waistband. During a search of the home, officers found Barnett’s photo identification and tribal citizenship paperwork. They also discovered 1,837 grams of methamphetamine, 13 grams of heroin, multiple firearms and ammunition, and items used in the distribution of narcotics such as digital scales and baggies. Three others were also taken into custody.
Just weeks after his arrest, Barnett bonded out of custody and immediately resumed his drug operation by obtaining another stash of methamphetamine and another firearm. On March 15, 2019, officers executed a search warrant at the same residence, where they found methamphetamine, numerous pills in baggies, and a loaded .25 caliber pistol. Four others were also taken into custody.
The Tulsa Police Department and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force in the Northern District of Oklahoma.