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Tuesday 16 March 2021
Slidell Man Charged with Failure to Account for and Pay TaxesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that SCOTT PELLISSIER (“PELLISSIER”), age 55, of Slidell, Louisiana, was charged on March 12, 2021 with failing to account for and pay federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.
According to the one count bill of information, PELLISSIER conducted a business as a limited liability company under the name Paint and Body Experts of Slidell, Inc. During the third quarter of the year 2016, PELLISSIER collected federal income taxes and FICA taxes in the approximate sum of $43,205.83 from his employees, but did not pay any of that money to the Internal Revenue Service.
If convicted, PELLISSIER faces a maximum sentence of five (5) years. Upon release from prison, PELLISSIER also faces a term of supervised release up to (3) three years, and/or a fine of $10,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the work of the Internal Revenue Service on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
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Six Charged with Crimes Related to Virtual Currency Exchange BusinessRead the Press Release
CONCORD: Six individuals were indicted by a federal grand jury in New Hampshire and charged with participating in a conspiracy to operate an unlicensed money transmitting business and other offenses, Acting United States Attorney John J. Farley announced today. Those charged in the indictment are:
Ian Freeman (formerly Ian Bernard), 40, of Keene
Colleen Fordham, 60, of Alstead
Renee Spinella, 23, of Derry
Andrew Spinella, 35, of Derry
Nobody (formerly Richard Paul), 52, of Keene
Aria DiMezzo (formerly James Baker), 34, of Keene
Freeman, Fordham, Renee Spinella, Andrew Spinella, and Nobody also are charged with wire fraud and participating in a conspiracy to commit wire fraud. Ian Freeman is charged with money laundering and operating a continuing financial crimes enterprise. Freeman and DiMezzo also are charged with operating an unlicensed money transmitting business.
According to the indictment, since 2016, the defendants have operated a business that enabled customers to exchange over ten million dollars in fiat currency for virtual currency, charging a fee for their service. They operated their virtual currency exchange business using websites, as well as operating virtual currency ATM machines in New Hampshire. The indictment alleges that the defendants knowingly operated the virtual currency exchange business in violation of federal anti-money laundering laws and regulations. In furtherance of their scheme, the indictment alleges that some defendants opened bank accounts in the names of purported religious entities. According to the indictment, some defendants then engaged in substantial efforts to evade detection of their unlawful virtual currency exchange scheme by avoiding answering financial institutions’ questions about the nature of the business and misleading financial institutions into believing their unlawful virtual currency exchange business was instead a religious organization receiving charitable contributions.
All of the defendants were arrested during a coordinated law enforcement action on Tuesday. They are scheduled for initial appearances before a United States Magistrate Judge on Tuesday afternoon.
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Postal Inspection Service in coordination with the Financial Crimes Enforcement Network. The case is being prosecuted by Assistant United States Attorneys Georgiana L. MacDonald and Seth R. Aframe.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Shaler Man Admits He Conspired to Distribute CocaineRead the Press Release
PITTSBURGH, PA - A Shaler Township resident pleaded guilty in federal court to a charge of violating federal narcotics trafficking laws, Acting United States Attorney Stephen R. Kaufman announced today.
David Pietropaolo, 23, of Scott Avenue in Glenshaw, PA pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including heroin, cocaine and methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Beginning in August of 2020 and continuing through November 2020, the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones. Pietropaolo was intercepted over co-defendant, Anthony Peluso’s cellular telephones, arranging to purchase cocaine from Peluso, his supplier.
In conjunction with his guilty plea, Pietropaolo admitted to conspiring to distribute and distributing cocaine from January to November of 2020. Pietropaolo regularly obtained ounce quantities of cocaine from Peluso that he then redistributed. For example, on September 19, 2020, Pietropaolo arranged to purchase, and did purchase, four ounces of cocaine from Peluso for $3,800. Later that day, Pietropoalo exchanged several communications with Peluso regarding the quality of that cocaine, complaining that the quality was sub-par.
Judge Colville scheduled sentencing for July 13, 2021 at 11:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics
Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
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.
Sanford Man Sentenced to 10 Years in Prison for Illegal Possession of a FirearmRead the Press Release
GREENSBORO, N.C. - A Lee County resident was sentenced today in federal court in Greensboro for knowingly possessing a firearm after previously being convicted of a felony, announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
BRANDON FRANCISCO GAMEZ, age 21, of Sanford, North Carolina, was sentenced to a 120-month term of imprisonment by United States District Judge William L. Osteen, Jr. In addition to prison time, GAMEZ was ordered to serve three years of supervised release and to pay a special assessment of $100.00. GAMEZ pleaded guilty on December 17, 2020, to knowing possession of a Glock .45 caliber pistol after having previously been convicted of a felony offense punishable by imprisonment for more than one year.
Court records show that GAMEZ was arrested during a traffic stop along Washington Avenue in Sanford on October 9, 2019. GAMEZ attempted to flee on foot but was quickly apprehended by the Sanford Police Department. GAMEZ had the gun on his person, along with cocaine base (crack) and oxycodone hydrochloride pills.
According to court records, the Sanford Police Department test-fired the gun in GAMEZ’s possession. The Sanford Police Department compared the shell casings from the test-firing to data stored in the National Integrated Ballistic Information Network (“NIBIN”). NIBIN is a national data program used by federal, state, and local law enforcement to investigate ballistic information contained in spent shell casings. According to the NIBIN analysis in this case, the gun in GAMEZ’s possession on October 9, 2019, was involved in four shootings, including one that occurred on October 8, 2019, the day before the arrest. The four shootings occurred over a three-month period in 2019 in Sanford.
GAMEZ was convicted in 2017 in Lee County Superior Court for discharging a weapon into an occupied property. He was then convicted of being a felon in possession of a firearm in Lee County Superior Court in 2018.
This case resulted from SAFE Lee County, a partnership of criminal justice, service agency, and community stakeholders that have implemented a comprehensive strategy to reduce violence
across Lee County. It is part of Project Safe Neighborhoods (PSN), a data-driven effort led by the U.S. Department of Justice that concentrates prevention, intervention, reentry, investigation, and prosecution efforts on those most prone to violence. SAFE Lee County involves the Lee County District Attorney’s Office, Broadway Police Department, Lee County Sheriff’s Office, Sanford Police Department, NC Department of Public Safety Adult Community Corrections (probation) and Juvenile Justice, researchers from UNC-Greensboro, the U.S. Attorney’s Office for the Middle District of NC, and the community.
The case was investigated by the Sanford Police Department, North Carolina Department of Public Safety Special Operations and Intelligence Unit, and United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Tanner L. Kroeger.
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Repeat Sex Offender to Serve 47 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
PEORIA, Ill. –U.S. District Judge James E. Shadid today sentenced Harold L. Williams, 40, of Pekin, Ill., a previously convicted sex offender, to serve 47 years in prison for sexual exploitation of a minor while he was on federal supervised release. The sentence consists of 45 years for enticing an out-of-state minor victim to engage in sexually explicit conduct to produce child pornography and an additional, consecutive two years in prison for violating the terms of his previously imposed lifetime supervised release. Judge Shadid ordered Williams to again remain on lifetime supervised release upon completion of his prison term.
Immediately prior to today’s sentencing, Williams formally entered his plea of guilty to the charge against him, which was committed from January 2019, when Williams was released from federal prison, to April 2019.
In 2010, Williams was convicted and sentenced to concurrent prison sentences for state and federal crimes. Williams was sentenced to six years in state prison for aggravated criminal sexual abuse in Peoria County, Ill., and to 10 years in federal prison for receipt of child pornography in the Central District of Illinois. He was released in January 2019.
Williams admitted that he violated the terms of his federal supervised release when he created a Facebook account shortly after his release from prison in January 2019. Williams used that account to communicate with a minor and trade child pornography with other Facebook users. Williams admitted that he solicited and enticed sexually explicit images from an out-of-state victim he knew was a minor. Williams also possessed several unauthorized devices without monitoring software, as required by the terms of his supervised release, to access the internet to trade child pornography.
Williams has remained in the custody of the U.S. Marshals Service since his arrest on April 9, 2019.
The U.S. Secret Service; Pekin Police Department; U.S. Probation Office; and, the Peoria County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Katherine Legge represented the government in the case prosecution.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Reno Man Convicted of Robbing Two Stores at GunpointRead the Press Release
RENO, Nev. – A Reno man was convicted by a federal jury yesterday for robbing a liquor store and a convenience store at gunpoint, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Edward Monet Knight, 32, of Reno, was found guilty of two counts of interference with commerce by robbery and two counts of use of a firearm during and in relation to a crime of violence. Chief U.S. District Judge Miranda M. Du presided over the five-day trial and scheduled a sentencing hearing for June 21, 2021.
According to court documents and evidence presented during trial, on July 7, 2019, Knight racked the slide of a firearm while threatening a clerk at a liquor store in Sparks, Nev. The next day, on July 8, Knight entered a convenience store and told a clerk: “what do you mean knock it off, with a real gun that’s a good way to get yourself killed.” Knight then pointed a semi-automatic handgun at the clerk and ordered the clerk to give him all the money in the cash register. After Knight fled the store with the stolen money, Sparks Police Department officers responded to the scene. A search of an abandoned vehicle (that was observed fleeing the convenience store) revealed: (a) a handgun matching the description of the gun used in the robbery; (b) Knight’s identification card; and (c) the stolen money.
Knight faces a mandatory minimum sentence of 14 years in prison for the use of a firearm and in relation to a crime of violence charges. He faces a statutory maximum penalty of 20 years in prison for the interference by robbery charges, a term of supervised release, and a monetary fine.
The case was investigated by the ATF and the Sparks Police Department. Assistant U.S. Attorneys Megan Rachow and Penelope Brady are prosecuting the case.
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Placer County Man Sentenced to 5 Years in Prison for a Fentanyl Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Steven Lawrence Robinson, 34, of Granite Bay, today to five years in prison for conspiring to possess and distribute fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Robinson conspired with Nathaniel Opondo Hubbert, 39, of Grass Valley, and others, to possess and distribute fentanyl in Placer County. Robinson and Hubbert were connected to at least one overdose of a victim who had to be given medical treatment after using drugs purchased from Hubbert.
Hubbert is charged with possession with intent to distribute methamphetamine, heroin and fentanyl. Charges against Hubbert are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration, the Placer County District Attorney’s Office, the Placer County Sheriff’s Department, and the Lincoln Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Pittsburgh Man Charged with Threatening Communications and Impeding FBI InvestigationRead the Press Release
PITTSBURGH – Khaled Miah, 27, a resident of Pittsburgh, Pennsylvania, and former student at the University of Pittsburgh, has been charged by Indictment with five counts of making interstate threatening communications, two counts of influencing, impeding or retaliating against a Federal law enforcement officer, and one count of destruction of records in a federal investigation, Acting United States Attorney Stephen R. Kaufman announced today.
According to the Indictment, from on or about December 27, 2020 through on or about December 31, 2020, Miah posted threats directed at individual FBI agents who were investigating him, as well as the FBI generally. In December 2020, FBI personnel identified a publicly visible Twitter account created by Miah. From the date of its creation to on or about January 1, 2021, Miah used this Twitter account to threaten, intimidate and harass FBI Pittsburgh Agents and the FBI. In addition, after posting the threatening statements, and with full knowledge of the FBI investigation into his conduct, Miah subsequently deleted those posts which impeded, obstructed, and influenced the FBI investigation.
Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, University of Pittsburgh Police Department, Pittsburgh Bureau of Police, Allegheny County Police Department, Allegheny County Port Authority Police, Pennsylvania State Police, Allegheny County Probation, and the Internal Revenue Service – Criminal Investigation.
The case is being prosecuted by Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Charged with Obstruction of Justice Relating to Attempts to Acquire RicinRead the Press Release
BOSTON – A Pennsylvania man was charged today with obstructing an investigation into his efforts to acquire the deadly toxin, ricin.
Dr. Ishtiaq Ali Saaem, 37, of Allentown, Penn., was charged with one count of obstruction of justice.
According to the charging document, Saaem held a Ph.D. in biomedical engineering, resided in Massachusetts and worked as the director of advanced research at a biotechnology firm based in Massachusetts. Saaem ordered 100 packets of castor beans, each containing eight seeds, online. Ricin is a poison that can be extracted from the seeds (i.e. beans) of the castor oil plant. It is alleged that Saaem falsely told law enforcement agents that he purchased castor beans for planting at his apartment for decoration and that he had accidentally purchased 100 packets instead of one. After he spoke to agents, Saaem allegedly researched tasteless poisons that could be made at home.
During a subsequent meeting with law enforcement personnel, Saeem stated that he only intended to purchase castor beans to plant for decoration when, in reality, it is alleged that he purchased them to use to extract ricin.
The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Texas Sport Supplement Company to Forfeit $3.5 Million; Sentenced for Unlawful Distribution of Steroid-like DrugsRead the Press Release
ABINGDON, Va.- Brett Becker, the owner of Accelerated Genetix, LLC, was sentenced yesterday in U.S. District Court in Abingdon to six months home confinement for introducing unapproved new drugs into interstate commerce, Acting United States Attorney Daniel P. Bubar announced today.
Becker, 32, currently of Concord, Michigan, and Accelerated Genetix, LLC, a sport supplement company based in Argyle, Texas, pleaded guilty in December 2020 to one count of distributing unapproved new drugs with the intent to mislead and defraud the FDA and consumers.
“For years, Becker and his company put their customers’ health at risk by unlawfully distributing drugs without FDA approval, which is a serious crime,” said Acting U.S. Attorney Bubar. “This case should serve as an additional notice that the marketing and distribution of unapproved SARMS will not be tolerated and that we will work with FDA to prosecute those who do.”
“Sports supplements that are manufactured and distributed outside the FDA’s oversight and that contain unapproved and possibly toxic ingredients endanger the health of unsuspecting consumers,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, FDA Office of Criminal Investigations. “Today’s actions represent our continued commitment to pursuing and bringing to justice those who mislead the public and intentionally attempt to subvert the regulatory functions of the FDA through the distribution of unapproved and potentially dangerous products.”
Becker admitted that from approximately January 2016 to March 2019, he and his company unlawfully distributed Selective Androgen Receptor Modulators (“SARMs”) and other substances that the FDA has not approved, including Ostarine and Ligandrol. SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. The FDA has long warned against the use of SARMs like those found in Accelerated Genetix products, including stating in a public 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions including liver toxicity, and have the potential to increase the risk of heart attack and stroke.
Becker also admitted that he intended to mislead and defraud the FDA and consumers by importing these ingredients even after learning they were mislabeled by the distributor when they were shipped from China to the United States; misrepresenting Accelerated Genetix products as “dietary supplements” to create the impression that they were safe and legal to use; and manufacturing a custom order of a SARMs product despite knowing it was illegal to introduce the unapproved new drug into interstate commerce.
In connection with his plea, Becker agreed to forfeit approximately $3.5 million, reflecting the amount of Accelerated Genetix products sold across the United States through retail outlets and over the internet.
Assistant United States Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations.
Owner of Fake Georgia Charitable Organizations Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of several bogus charitable organizations in Georgia pleaded guilty today to filing false tax returns.
Taressa Hightower, 60, of Grayson, Ga., pleaded guilty to two counts of filing false tax returns. U.S. District Court Judge William G. Young scheduled sentencing for July 12, 2021.
According to court documents, Hightower ran two non-profit organizations that purported to serve underprivileged children in the Atlanta, Ga. area. From approximately 2010 to 2015, Hightower received more than $650,000 in ostensible donations from a bank in Boston – where Palestine Ace, the wife of Hightower’s family member Jonathan Ace, worked. In reality, the monies Hightower was receiving as purported donations were the proceeds of a separate embezzlement scheme carried out by Palestine and Jonathan Ace. As a condition of receiving these “donations,” Hightower agreed to return approximately 25% to Palestine and Jonathan Ace as a secret kickback.
Rather than use the funds for charitable purposes, Hightower spent the majority on personal expenses unrelated to any charity work. For tax years 2013 and 2014, Hightower filed false personal and organizational tax returns in connection with the purported donations. Each year, Hightower reported significant amounts of non-existent and/or inflated business expenses, which ultimately lowered her personal tax liability.
In 2018, Palestine and Jonathan Ace were convicted of embezzlement and were sentenced to one year and two years in prison, respectively.
The charging statute provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge are based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Orlando Man Sentenced to Three Years for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton Jr. has sentenced Steven L. Rembert (48, Orange County) to three years in federal prison, to be followed by 3 years supervised release for filing a materially false statement in an application to the Federal Emergency Management Agency (FEMA) for disaster relief benefits.
Rembert had pleaded guilty on December on December 21, 2020.
According to court documents, in September 2017, Rembert falsified records concerning his primary residence when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Terry B. Livanos.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Orange Park Man Sentenced to Eight Years for Possessing Child Sexual Abuse Images and VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Andrew Vikash Kummeth (28, Orange Park) to eight years in federal prison for possession of images and videos depicting the sexual abuse of children. Kummeth was also sentenced to a 10-year term of supervised release and was ordered to register as a sex offender.
Kummeth had pleaded guilty on November 2, 2020.
According to court documents, in October 2018, the FBI conducted an undercover investigation to identify individuals who were involved in the downloading or sharing of images and videos depicting the sexual abuse of children over the internet. During an undercover session on October 24, 2018, and October 25, 2018, Kummeth’s computer was identified as being used to access child sexual abuse materials pornography. FBI agents executed a federal search warrant at Kummeth’s residence in Punta Gorda, Florida. During an interview with agents, Kummeth admitted to searching for and viewing child pornography over the internet. A subsequent forensic examination of Kummeth’s computer gaming tower and his solid state drive storage device revealed images depicting children being sexually abused that Kummeth had accessed and downloaded from the internet.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New York Man Arrested for Traveling to New Jersey to Have Sex with A MinorRead the Press Release
CAMDEN, N.J. – A New York man was charged with traveling to Atlantic County, New Jersey, to have sex with a minor, Acting U.S. Attorney Rachael A. Honig announced today.
Zachary Williams 33, of New York, is charged by complaint with one count of interstate travel to engage in illicit sexual conduct. Williams was arrested on March 13, 2021, after traveling a second time from New York to New Jersey to meet a minor. He is scheduled to appear today by videoconference before U.S. Magistrate Judge Ann Marie Donio.
According documents filed in this case and statements made in court:
In September 2020, Williams met the minor victim via SnapChat. He lied about his age, telling the victim that he was 17-years old. Williams asked the minor for nude photographs of the victim and, after receiving them, began to “sextort” the minor by threatening to send photographs to the victim’s friends and family. He ultimately convinced the victim to meet him at a hotel in Atlantic County and agreed to allow the victim to delete the photographs from Williams’ phone. On Oct. 2, 2020, Williams traveled to a hotel in Atlantic County and, two days later, engaged in sexual intercourse with the victim in his hotel room.
Williams continued to send messages threatening to expose the victim’s photographs, and when the victim would block him, he opened new social media accounts to continue to harass the victim., including “IWILLHURTYOU Iwilll_h2021,” “IWILLGETTHESWITCHBACK,” and “Makeadealormomfindsout.”
In March 2021, law enforcement officers took over the victim’s social media accounts and began communicating with Williams while posing as the victim. During those communications, Williams arranged to travel on March 13, 2021 to the same Atlantic County hotel to again have sex with the victim. Law enforcement arrested Williams as he arrived at the hotel.
Williams is charged with interstate travel to engage in illicit sexual conduct with a minor. If convicted of this offense, Williams faces a maximum of 30 years in prison, a $250,000 fine, or twice the gross gain or loss from the offense, and lifetime supervise release.
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, and officers of the Galloway Township Police Department, under the direction of Chief Donna A. Higbee. She also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Kensington Felon Charged with Illegal Possession of AmmunitionRead the Press Release
PITTSBURGH, PA – A former resident of New Kensington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Robert Kramer, age 49, as the sole defendant.
According to the Indictment, on August 2, 2019, Kramer, a convicted felon, was in possession of ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing ammunition.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and New Kensington Police Department conducted the investigation leading to the Indictment in this case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Indicted for Interstate Transportation of a Stolen Mack Drilling RigRead the Press Release
PITTSBURGH - A resident of Garfield, New Jersey, has been indicted by a federal grand jury in Pittsburgh on a charge of Interstate Transportation of a Stolen Motor Vehicle, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Angel Alfonso Arias-Miranda, age 51, as the sole defendant.
According to the Indictment, on October 11, 2020, Arias-Miranda transported a stolen motor vehicle, namely, a 2012 Mack drilling rig, in interstate commerce, knowing the vehicle was stolen.
The law provides for a maximum total sentence of not more than ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
The Pennsylvania State Police and Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Bedford Man Agrees to Plead Guilty to Conspiracy to Distribute CocaineRead the Press Release
BOSTON – A New Bedford man agreed to pleaded guilty yesterday to his role in a cocaine distribution conspiracy.
Victor Alejandro-Carrillo, 26, agreed to plead guilty to one count of conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of conspiring to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl. U.S. Senior District Court Judge Douglas P. Woodlock deferred accepting Alejandro-Carrillo’s plea until his sentencing hearing, which is scheduled for July 19, 2021. Alejandro-Carrillo was charged in December 2019, along with 12 co-defendants.
From at least June 2017 through December 2019, it is alleged that Alejandro-Carrillo was involved in a cocaine distribution conspiracy in which he agreed with others to receive parcels containing cocaine that had been shipped from Puerto Rico to Massachusetts. Upon receipt of the parcels, Alejandro-Carrillo made arrangements to deliver the cocaine to co-conspirators. Investigators intercepted a number of communications between the defendant and co-conspirators in furtherance of that conspiracy and seized multiple parcels containing kilograms of cocaine. In total, Alejandro-Carrillo possessed and conspired to distribute at least 17.9 kilograms of cocaine.
In addition, from at least February 2019 through December 2019, Alejandro-Carrillo was allegedly involved in another cocaine distribution conspiracy. As a part of that conspiracy, Alejandro-Carrillo communicated with co-conspirators to purchase varying quantities of cocaine on multiple occasions for re-distribution. In addition, from approximately February 2019 through April 2019, Alejandro-Carrillo was involved in a conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl. Investigators intercepted communications with respect to both of those conspiracies as well.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine provides for a minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl provides for a minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Natchez Man Sentenced to 18 Months in Prison under Project Eject for Possessing A Stolen FirearmRead the Press Release
Jackson, Miss – Damien Hayes, 24, of Natchez, was sentenced today by U.S. District Judge David C. Bramlette III to 18 months in federal prison, followed by 3 years of supervised release, for possessing a stolen firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On March 22, 2019, ATF agents and state and local law enforcement officers were conducting a detail in Natchez and the surrounding area in response to complaints of criminal activity. Officers smelled burning marijuana and approached Hayes who tossed a marijuana blunt onto the ground. When officers frisked Hayes, they discovered a .45 caliber pistol tucked into his pants. Further investigation revealed the firearm had been stolen from a local firearms dealer.
On January 29, 2020, Hayes was charged in a federal indictment with possessing a stolen firearm. Hayes pled guilty on October 27, 2020.
This case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Natchez Police Department. It was prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Natchez Man Pleads Guilty Under Project EJECT to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss – Roy Ray III, 20, of Natchez, pled guilty today before U.S. District Judge David Bramlette III to possessing a firearm after having been previously convicted of a felony crime, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On August 1, 2019, Adams County Sheriff’s deputies went to a Natchez home in search of a wanted person. At the home, the deputies encountered Roy Ray III. While not the person deputies were looking for, Ray was arrested based on a warrant that had been issued for him over probation violations. After Ray was placed in custody, deputies discovered he possessed a revolver.
Ray was indicted by a federal grand jury on January 15, 2020, for possessing a firearm as a convicted felon. Ray is currently in custody and will be sentenced on June 15, 2021, by Judge Bramlette. He faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Adams County Sheriff’s Office and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Middlesboro Man Sentenced to 300 Months for Child Pornography OffensesRead the Press Release
LONDON, Ky. – A former Middlesboro firefighter, Robert Christopher England, 36, was sentenced on Tuesday, to 300 months in federal prison, by U.S. District Judge Claria Horn Boom, after previously being convicted of receiving and possessing child pornography, on a Middlesboro Fire Department laptop.
According to the evidence at trial, England received child pornography on three separate occasions and possessed a collection of over 600 images, between April of 2017 and June 23, 2018. England’s fire department laptop was seized, on June 23, 2018, by the Middlesboro Police Department. At the time, England was serving as a Lieutenant within the Middlesboro Fire Department. A forensic review conducted by the Kentucky State Police Electronic Crimes Branch showed evidence of dark web access via Tor Browser and child pornography “playlists” created in ManyCam, a web conferencing program.
The Court found that England possessed images portraying sadistic conduct and children under the age of 12 years. England was also found to have engaged in a pattern of hands-on sexual abuse of a minor and the willful obstruction of justice for deleting his child pornography collection when confronted by law enforcement.
England was convicted in November 2020.
Under federal law, England must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, James R. Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Acting Commissioner Col. Phillip Burnette, Jr., Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI, with assistance from the Kentucky State Police Electronic Crimes Branch. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mexican National Sentenced to 12 Years in Federal Prison for Armed Robberies of Food Service BusinessesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Ramon Uziel Hernandez-Perez, 33, was sentenced to 12 years (144 months) in federal prison for his role in the armed robberies of two Denver food service businesses, including a food truck.
According to the facts in the plea agreement and court documents, Hernandez-Perez robbed a food truck operating in the parking lot of the 707 Flea Market on N. Federal Boulevard on September 26, 2019. At around 7:00 p.m., Hernandez-Perez parked his Ford Mustang in the parking lot. He entered the food truck, where a female employee was working inside. Hernandez-Perez pointed a black semi-automatic handgun at the woman and demanded money. In fear for her life, the victim retrieved cash from the register and handed it to Hernandez-Perez. The defendant ordered the victim to the floor, pressed the muzzle of the gun to her head, and threatened that if she alerted the police, he would kill her. Hernandez-Perez then fled in his Mustang.
On September 28, 2019, Hernandez-Perez and his co-defendant, Juan Carlos Aguirre-Rodriguez, robbed a food service business operated by two women in the parking lot of 5575 North Logan Street in Adams County. The defendants arrived in the parking lot early in the morning in Hernandez-Perez’s Mustang. They waited until two female employees arrived and began setting up their business. With guns drawn, the defendants approached the women and demanded money. One of the victims handed over a bag containing the business’s cash. The defendants then got back in the Mustang and fled.
Two days later, Hernandez-Perez’s Mustang was found and searched. Law enforcement found three firearms, including one fitting the description of a weapon used in the robberies. On October 3, 2019, Hernandez-Perez was arrested in Adams County, Colorado. A fully-loaded .40 caliber Smith and Wesson handgun was discovered in his waistband. Hernandez-Perez is a native and citizen of Mexico without lawful status in the United States and is therefore prohibited from possessing firearms.
“Taking dangerous criminals off the street is a core part of the mission of this office,” said Acting United States Attorney Matthew T. Kirsch. “Building off the great work of our law enforcement partners, the prosecutors in this office ensured that justice was done and made our community a safer place as a result.”
“The FBI Rocky Mountain Safe Streets Task Force is committed to combatting violent crime in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “Today’s sentence completes the judicial process for Mr. Hernandez-Perez, and we hope his victims feel safer knowing justice has been served. We thank our partners at the U.S. Attorney’s Office, Adams County Sheriff’s Office, Denver Police Department, Dacono Police Department, and Commerce City Police Department.”
On December 2, 2020, Hernandez-Perez pleaded guilty to two counts of Hobbs Act Robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of possessing a firearm by an alien unlawfully in the United States. United States District Court Judge Daniel D. Domenico sentenced Hernandez-Perez on March 16, 2021, in federal court in Denver. Co-defendant, Juan Carlos Aguirre-Rodriguez, previously pleaded guilty to two counts of Hobbs Act Robbery and is currently serving a sentence of four-and-a-half years in federal prison.
The investigation in this case was conducted by the Federal Bureau of Investigation Rocky Mountain Safe Streets Task Force, the U.S. Immigration and Customs Enforcement (ICE), the Adams County Sheriff’s Office, the Denver Police Department, the Dacono Police Department, and the Commerce City Police Department. Special Assistant U.S. Attorney Dorothy DiPascali and Assistant U.S. Attorney Emily Treaster handled the prosecution.
Case number: 19-cr-00524-DDD
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Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Two TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to eight months in federal prison.
Ramon Rodriguez-Perez, age 34, a citizen of Mexico illegally present in the United States and residing in Storm Lake, Iowa, received the prison term after a guilty plea on January 13, 2021, to one count of illegal reentry into the United States.
At the guilty plea, Rodriguez-Perez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Rodriguez-Perez was previously deported in November 2016 and April 2017. Rodriguez-Perez was convicted in a Texas federal court in April 2017 of illegal entry into the United States, a misdemeanor. He was also convicted in Iowa in 2014 and 2015 for operating a motor vehicle while intoxicated (OWI). Rodriguez-Perez most recently came to the attention of immigration agents following an arrest in Winneshiek County, Iowa, on state charges in November 2020.
Rodriguez-Perez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rodriguez-Perez was sentenced to eight months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez-Perez 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 Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2059.
Follow us on Twitter @USAO_NDIA.
Methamphetamine user convicted of possessing firearm sentenced to prisonRead the Press Release
BILLINGS – A methamphetamine user who admitted to brandishing a firearm at two individuals was sentenced today to 32 months in prison and to three years of supervised release, U.S. Acting Attorney Leif Johnson said.
Kenneth John Howard, 30, of Billings, pleaded guilty on Oct. 20, 2020 to possessing a firearm while being a user of a controlled substance as charged in an indictment.
U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the government alleged that from July to October of 2019 Howard possessed a firearm on three occasions while using a controlled substance. The most recent of these instances occurred on Oct. 15, 2019, when officers responded to the Sleep Inn in Billings for a report of an individual brandishing a firearm. Two witnesses reported they were leaving the hotel when Howard motioned them over, pulled a black handgun from a bag, showed it to them, and began using derogatory language. Howard then walked away and entered a room at the hotel. Officers located the gun, a semi-automatic pistol with 11 live rounds of ammunition, in a vehicle.
Howard initially denied having a gun but later admitted to officers he brandished the gun in front of the two witnesses. Howard acknowledged he was a regular meth user and that he was coming down from using when he displayed the firearm. Another witness confirmed Howard was a regular meth user and that he previously brandished the firearm to other individuals on July 16 and August 29.
Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering and drug charges.
Natanael Velazquez, a/k/a “King Nael,” 21, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 22, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Natanael Velazquez is the 41st defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan Chiropractor Arrested for Years-Long Health Care Fraud SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Thomas Licetti, New York Regional Director, U.S. Department of Labor Employee Benefits Security Administration (“DOL-EBSA”), announced today the unsealing of a complaint charging MELISSA PANAYIOTA KANES with health care fraud, money laundering, and aggravated identity theft in connection with a scheme to submit more than $800,000 in fraudulent health care claims, including by using, over the course of multiple years, the identities of three per diem chiropractors when submitting claims in an effort to hide the defendant’s association with the claims.
KANES was arrested this morning on Long Island, New York, and was presented earlier today before U.S. Magistrate Judge Sarah L. Cave.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Melissa Kanes filed numerous fraudulent health insurance claims for her chiropractic services. Indeed, as further alleged, Kanes filed so many claims that an insurer flagged her for suspicious billing, at which point she tried to circumvent scrutiny by filing claims in the names of other chiropractors without their knowledge. Now Melissa Kanes is in custody and facing federal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Kanes used the identities of three different chiropractors to reap more than $800,000 from fraudulent insurance claims. The crimes with which she is charged today are serious ones, which carry the possibility of a lengthy prison sentence. This case should serve as a warning to others unwilling to make adjustments to their illegal behavior – the federal criminal justice system could be just what the doctor ordered.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The offenses charged in this case are particularly troubling because once the fraudulent activities were detected, the defendant allegedly continued the activities using additional concealment methods. While the vast majority of health care providers are operating in good faith to take care of patient needs, it is the role of IRS CI and our law enforcement partners to bring to justice the small percentage of providers who are knowingly abusing the health care system for personal profit.”
DOL-EBSA New York Regional Director Thomas Licetti said: “This type of activity is detrimental to workers, employers and the entire healthcare system. EBSA is proud to partner with our fellow federal agencies in protecting hard-earned employee benefits.”
According to the allegations in the Complaint:[1]
MELISSA PANAYIOTA KANES, the defendant, worked as a licensed chiropractor in New York, New York.
Between 2014 and 2016, KANES submitted a high volume of insurance claims to one of the largest private health insurance companies in the country (“Insurer-1”). Insurer-1 served as the third-party claims administrator for various health plans, including a health plan covering the employees of a large consulting firm (“Victim Employer-1”). At the outset, KANES submitted the bills using companies publicly associated with her and her own identification number. But in 2016, Insurer-1 flagged KANES for improper billing and slowed or ceased payments to KANES. Thereafter, KANES continued to submit claims to Insurer-1, but took steps to hide KANES’s association with the bills. In particular, KANES submitted bills under the names and identification numbers of two newly incorporated companies (“New Company-1” and “New Company-2”), and three newly recruited per diem chiropractors (“Victim Chiropractor-1,” “Victim Chiropractor-2,” and “Victim Chiropractor-3”; together, the “Victim Chiropractors”), without the Victim Chiropractors’ knowledge or consent.
These claims to Insurer-1 – the vast majority of which related to services purportedly rendered to employees in the Manhattan office of Victim Employer-1, which was nearby KANES’s regular office in Manhattan – were false. The claims variously misrepresented the provider of the services (as one of the Victim Chiropractors), the location of the services (as somewhere other than KANES’s regular office), and which chiropractic services were in fact rendered (including whether any were rendered at all). More generally, the claims misleadingly omitted KANES’s involvement. The fraudulent claims that KANES submitted to Insurer-1 alone totaled more than $800,000.
Along with Insurer-1, KANES submitted claims to other private health insurance companies during the relevant time period. At least some set of those claims were also false. In particular, on certain dates for which KANES claimed to have provided the services billed, KANES was, in fact, traveling outside the United States.
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KANES, 50, of New Hyde Park, New York, is charged with one count of health care fraud, which carries a maximum sentence of 10 years in prison, one count of money laundering, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the FBI, IRS-CI, and DOL-EBSA.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Micah F. Fergenson is in charge of the prosecution.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Man from Smith Lake charged with murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Eric Garcia, 40, of Smith Lake, New Mexico, and an enrolled member of the Navajo Nation, was charged on March 15 in federal court with murder committed in Indian Country. Garcia will remain in custody pending a detention hearing scheduled for March 17.
According to a criminal complaint, on March 9, Garcia allegedly quarreled with the victim, identified in court records as John Doe, at a residence in McKinley County on the Navajo Nation. Garcia allegedly stabbed Doe in his chest, neck and abdominal area and fled. Doe died at the scene as a result of the attack. Navajo Police later located and arrested Garcia at his residence.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Garcia faces up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Criminal Investigation. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Lexington Man Sentenced to 83 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
FRANKFORT, Ky.— Darryl W. Stewart, Jr., 32, of Lexington, was sentenced to 83 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, after pleading guilty to possession of a firearm by a convicted felon.
According to Stewart’s plea agreement, he admitted that on September 3, 2019, law enforcement found him in possession of a handgun. Stewart admitted that he was a convicted felon and was prohibited from possessing a firearm.
Stewart was previously convicted of Reckless Homicide in Fayette Circuit Court, in December 2015. Stewart pleaded guilty to the current charge in December 2020.
Under federal law, Stewart must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the U.S. Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s targeted initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Joint Statement from the Departments of Justice and Homeland Security Assessing the Impact of Foreign Interference During the 2020 U.S. ElectionsRead the Press Release
Note: The joint report can be viewed here.WASHINGTON – The Department of Justice (DOJ) and the Department of Homeland Security (DHS), including the FBI and the Cybersecurity and Infrastructure Security Agency (CISA), released today key findings and recommendations from a joint report to the President issued last month on the impact of foreign governments and their agents on the security and integrity of the 2020 U.S. federal elections.
The Departments investigated multiple public claims that one or more foreign governments owned, directed or controlled election infrastructure used in the 2020 federal elections; implemented a scheme to manipulate election infrastructure; or tallied, changed or otherwise manipulated vote counts. The Departments found that those claims were not credible.
These conclusions are part of a classified report to the President prepared by DOJ and DHS pursuant to section 1(b) of Executive Order 13848, Imposing Certain Sanctions in the Event of Foreign Influence in a United States Election (the EO), issued on Sept. 12, 2018. Although the 1(b) report notes that Russian, Chinese, and Iranian government-affiliated actors materially impacted the security of certain networks during the 2020 federal elections, the Departments found no evidence that any foreign government-affiliated actor manipulated election results or otherwise compromised the integrity of the 2020 federal elections.
The 1(b) report relied on a classified assessment — prepared by the Office of the Director of National Intelligence (ODNI), pursuant to section 1(a) of the EO, about any information indicating that a foreign government acted with the intent or purpose of interfering in the 2020 U.S. federal elections. Whereas the 1(a) report discusses efforts to influence public perceptions and opinion, the scope of the 1(b) report only includes efforts to compromise the security or integrity of election infrastructure or infrastructure pertaining to political organizations, candidates or campaigns used in the 2020 U.S. federal elections. The 1(b) report does not discuss efforts to sway voters or influence opinion.
During the 2020 election cycle, federal, state, local, tribal, territorial, non-governmental and private sector partners nationwide worked together in unprecedented ways to combat foreign interference efforts and support election officials, political organizations, campaigns and candidates in safeguarding their infrastructure. The Departments remain committed to continuously strengthening the nation’s cybersecurity, critical infrastructure, supply chain risk management, public-private partnerships and public messaging to enhance the resiliency of our democratic institutions.
Jersey City Man Sentenced to Nearly 15 Years in Prison for Armed Robbery of Allentown Convenience StoreRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Brandon Garcia, 22, of Jersey City, NJ, was sentenced to 14 years and nine months (or 177 months) in prison, and 4 years of supervised release by United States District Court Judge Jeffrey L. Schmehl for the armed robbery of a Speedway gas station and convenience store in Allentown, PA on March 28, 2017.
In June 2019, the defendant pleaded guilty to multiple felonies arising from the 2017 robbery, including Hobbs Act robbery, and using, carrying or possessing a machine gun during a crime of violence. During the robbery, the defendant used a long gun to threaten store employees while robbing the store. Garcia poked one employee with the gun as he ordered him to “Get down!” and demanded employees provide him with cash and Newport cigarettes, which they did.
Meanwhile, a good Samaritan, who was coming to the Speedway to fill his car with gas, noticed the defendant wearing all black and running into the store with his hood up; he suspected something was amiss. His suspicions were confirmed when he saw Garcia display his gun in the store. He immediately called 9-1-1 to report the robbery. When he saw Garcia run out of the store, the witness told the dispatch operator that he would follow the defendant. The witness watched the robber get into a waiting silver vehicle parked in an alley and followed the car. As he did, he described where the car was driving to the 9-1-1 operator until law enforcement located both vehicles. When officers stopped the silver car, they found two men inside, Garcia and his co-defendant Daequon Benjamin, who was driving. The good Samaritan confirmed that the silver vehicle was the car he had followed from the Speedway, and officers found the black clothing, a sawed-off short-barreled rifle, cash and Newport cigarettes before arresting the defendants.
In pleading guilty to the charges associated with this incident, Brandon Garcia also admitted committing two additional, similar armed robberies in Allentown, PA (of a 7-11 convenience store and a Sunoco gas station and convenience store) a mere five days before the Speedway robbery. During both of these earlier incidents, the defendant brandished the same sawed-off short-barreled rifle he brandished during the Speedway robbery.
“Brandon Garcia robbed three businesses within a one week, all at gunpoint, terrorizing the employees and patrons of those stores and the surrounding community,” said Acting U.S. Attorney Williams. “His crime spree endangered many lives and demonstrated his complete disregard for other people and for the law. Thanks to the dedicated efforts of the investigators on this case and the brave actions of a concerned citizen, this defendant has been brought to justice.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Allentown Police Department, and is being prosecuted by Assistant United States Attorney Sarah Damiani.
Jefferson County man indicted on firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Aaron Patrick Stamets, of Charles Town, West Virginia, was indicted today on firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Stamets, 42, was indicted on two counts of “Unlawful Possession of a Firearm.” Stamets, a person prohibited from having a firearm, is accused of having two firearms in June and August of 2020 in Jefferson County.
Stamets faces up to 10 years of incarceration and a fine of up to $250,000 for each count. 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.
This charge is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Charles Town Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson County man admits to unlawful possession of a firearm silencer; Government will seek increased sentence for manufacture and transfer of machine gun conversion devicesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy John Watson, of Ranson, West Virginia, has admitted to unlawfully possessing a firearm silencer, Acting United States Attorney Randolph J. Bernard announced.
Watson, 30, pleaded guilty today to one count of “Possession of Unregistered Firearm Silencer.” Watson admitted to having an unregistered silencer in November 2020 in Jefferson County.
According to the plea agreement, the government will present evidence at the sentencing hearing that Watson’s conduct also involved his manufacture and transfer of hundreds of machinegun conversion devices for AR-15 style rifles, also known as “drop in auto sears,” to hundreds of individuals including individuals whom he had reason to believe were adherents to an extremist political movement referred to as “Boogaloo,” a term referencing an impending civil war or violent uprising against the government for perceived incursions on U.S. Constitutional rights, including the Second Amendment. Based on this additional conduct, the government states in the plea agreement that it will ask for an increased sentence of 57 to 71 months of imprisonment.
As a part of the plea agreement, Watson will forfeit all 3D-printed items that the government will argue are machinegun conversion devices, the 3D printers, 3D printer parts, and 3D printer supplies, as well as a U.S. Postal Service package containing the same conversion devices. All items were seized during a search in November 2020.
Watson faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher are prosecuting the case on behalf of the government. The FBI, the Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Postal Inspection Service continues its investigation.
This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
U.S. Magistrate Judge Robert W. Trumble presided.
Inmate at USP Lee Sentenced for Unlawfully Possessing a WeaponRead the Press Release
ABINGDON, Va.- Leonardo Acevedo-Vazquez, an inmate at the USP Lee in Jonesville, Virginia, was sentenced yesterday for unlawfully possessing a weapon inside the prison, Acting United States Attorney Daniel P. Bubar announced today.
Acevedo-Vazquez, 28, was sentenced yesterday to 33 additional months of incarceration and a 3-year term of supervised release.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Steven J. Luckie prosecuted the case for the United States.
Indiana, PA Man Indicted for Illegally Possessing a Weapon while Subject to a Domestic Violence Protection from Abuse OrderRead the Press Release
PITTSBURGH, PA – An Indiana County resident has been indicted by a federal grand jury in Pittsburgh on a federal firearms violation, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Todd Matthew Jakosh, 33, of Indiana, Pennsylvania, as the sole defendant.
According to the Indictment, on or about August 7, 2020 the Jakosh possessed a firearm and ammunition even though he knew that he was subject to a domestic violence protection order. Federal law prohibits anyone who is subject to a protection from abuse (PFA) order from lawfully possessing a firearm or ammunition while the order is under effect.
According to a state criminal complaint, on August 7, 2020 at 10:26 a.m. Indiana Borough Police were dispatched to a Taco Bell on Oakland Avenue in Indiana County for a report of a domestic incident with shots fired. The victim, an employee of the restaurant, told police that Todd Jakosh had exited his vehicle, shot at her and left the scene headed toward town. Within the hour, Jakosh was taken into custody by officers and later charged by the state with Aggravated Assault, Aggravated Assault with a Deadly Weapon, Carrying a Firearm without a License, Discharging a Firearm into an Occupied Structure, Reckless Endangerment, Terroristic Threats, and Criminal Mischief. At the time of the shooting, Jakosh was subject to an active PFA order from the victim.
"Federal law provides that persons subject to qualifying Protection from Abuse orders may not possess firearms," stated Acting U.S. Attorney Kaufman. "This important federal law protects victims of domestic violence, and it will be aggressively enforced against abusers who illegally possess guns."
"Domestic violence is inexcusable," said Indiana County District Attorney Robert F. Manzi, Jr. "In partnership with local, state and federal authorities, we will continue to stand up for the victims of domestic abuse with every tool available. While the U.S. Department of Justice prosecutes Mr. Jakosh for their charge, my office will continue to our prosecution for the assault charges."
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana Borough Police Department conducted the investigation leading to the Indictment in this case. This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illinois Felon Sentenced to Prison for Possessing GunRead the Press Release
A man who illegally possessed a gun was sentenced today to more than two years in federal prison.
Rajih Rafee Donley, age 33, from Chicago, Illinois, received the prison term after an October 2, 2020 guilty plea to possession of a firearm by a felon.
At the plea hearing, Donley admitted he possessed a firearm in 2018 despite having a prior felony conviction. Donley had previously been convicted of felony offenses involving marijuana and cocaine in Illinois. In 2019, Donley was convicted in Iowa of willful injury causing serious injury, intimidation with a dangerous weapon, going armed with intent, and two counts of possessing a firearm as a felon.
Donley was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Donley was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
Donley 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 by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2035.
Follow us on Twitter @USAO_NDIA.
Honduran Man Pleads Guilty to Transporting Illegal Aliens Within the United StatesRead the Press Release
Gulfport, Miss. – Jose Ceferino Guardado-Reyes, 38, and a citizen of Honduras who had been living in Texas, pled guilty today before U.S. District Judge Sul Ozerden, to transporting an illegal alien within the United States, announced Acting U.S. Attorney Darren J. LaMarca, Jack Stanton, Acting Special Agent-in-Charge of Homeland Security Investigations in New Orleans, and Michael J. Harrison, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Guardado-Reyes is scheduled to be sentenced by Judge Ozerden on June 16, 2021, at 9:30 a.m. He faces maximum penalties of 5 years in prison, a $250,000 fine, and $5,100 in special assessments.
On January 26, 2021, a U.S. Border Patrol Agent conducted a traffic stop on a 2010 white Ford F-150 on Interstate 10 eastbound near Mile Marker 50, in Jackson County. During the encounter, the Border Patrol Agent, who was speaking Spanish, determined that Guardado-Reyes and both of his passengers all were unlawfully present in the U.S. It also was determined that Guardado-Reyes was unlawfully transporting or smuggling his two passengers from Texas to Florida.
Acting U.S. Attorney LaMarca praised the cooperation exhibited by the Department of Homeland Security, United States Border Patrol, and Homeland Security Investigations. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Hazleton Man Sentenced to 84 Months’ Imprisonment for Heroin and Fentanyl TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced Yilber Rosario, age 32, of Hazleton, Pennsylvania, was sentenced to 84 months’ imprisonment followed by a four-year term of supervised release by United States District Court Judge Malachy E. Mannion for heroin and fentanyl trafficking offenses.
According to Acting United States Attorney Bruce D. Brandler, from approximately February 2018 through approximately July 2019, Rosario conspired with others to distribute approximately 200 grams of heroin (which is equivalent to approximately 2,000 individual doses) and approximately 350 grams of fentanyl.
The matter was investigated by the Drug Enforcement Administration (DEA) and its state and local partners, including the Pennsylvania State Police (PSP). Assistant U.S. Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Former mayoral candidate charged with stealing from the Paycheck Protection ProgramRead the Press Release
ATLANTA - Olivia Ware, a former candidate for Mayor of the City of Conyers, has been arraigned on federal charges of bank fraud and money laundering stemming from a scheme to use a company she started to steal over $323,000 from the Paycheck Protection Program (PPP).
“Authorities continue to examine Paycheck Protection Program loans for acts of fraud, as the charges against Ware demonstrate,” said Acting U.S. Attorney Kurt R. Erskine. “Those who would consider stealing from the Paycheck Protection Program should think twice.”
“It has been said that bad times bring out the best in people, this case is not an example of that. Ware tried to defraud the government out of money meant to help small businesses affected by the pandemic continue operations and take care of their employees. Instead of helping others through a difficult time as the money was intended, she used the money for personal gain,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Every time a fraudster steals money from the PPP fund another legitimate business is unable to get those funds to help real employees with real families. HSI’s OPERATION STOLEN PROMISE protects the country from the threat of COVID-19-related fraud and criminal activity.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: The PPP is an emergency funding program created to assist small business owners and their employees during the coronavirus pandemic. PPP loans are fully guaranteed by the Small Business Administration (SBA).
In 2020, Olivia Ware was the CEO of a Georgia company called Let’s Talk About the Family, Inc., but according to state records, it did not pay wages to any employees. Yet, Ware allegedly submitted a false application to a bank for a PPP loan for the company that included fictitious tax records purporting to show the company had 54 employees that were paid hundreds of thousands of dollars in salary.
As a result of this materially false information, the bank loaned over $323,000 in PPP funds to Ware’s company. Ware then allegedly spent the PPP loan for her own benefit, including to buy an in-ground swimming pool, furniture, and other home improvement items, and to pay down the principal on her mortgage.
Ware, 61, of Oxford, Georgia, faces charges of bank fraud and money laundering. She was arraigned on a criminal information on March 16, 2021.
Members of the public are reminded that the criminal information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Bernita B. Malloy and Trevor C. Wilmot are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Scott AFB Airman Sentenced to Prison for Distributing Child PornographyRead the Press Release
East St. Louis, Ill. – Jace Faugno, 25, of Paducah, Kentucky, has been sentenced to 78 months in
prison for two counts of distributing child pornography. Chief United States District Judge Nancy
J. Rosenstengel handed down the sentence, which includes 5 years of supervised release.
Faugno first came to the attention of law enforcement in September 2018, when a joint undercover
investigation by the Air Force Office of Special Investigations (OSI) and the FBI
caught him sending child pornography over Kik, a popular cell phone messaging application. At the
time, Faugno was living in St. Louis, Missouri, and serving as an active duty Senior Airman at
Scott Air Force Base in St. Clair County, Illinois.During chat discussions with two different undercover agents, Faugno sent them each a video
depicting a prepubescent girl being raped by an adult male. Faugno also solicited the agents to
send him videos of child pornography and expressed an interest in meeting up with one agent to
engage in sex acts with the undercover agent’s fictitious prepubescent daughter. Faugno ended his
contact with the agents when they refused to provide him with videos of child pornography.Faugno pled guilty to the charges in 2019. At his sentencing hearing, Faugno argued that his chats
were merely a fantasy that he never intended to act upon. Judge Rosenstengel observed that while
only Faugno was aware of his true intentions, “fantasy can turn into reality.”The case was investigated by Air Force OSI and FBI Springfield and was prosecuted by
Assistant United States Attorney Christopher Hoell.Former Owners of Telemarketing Company Agree to Pay at Least $4 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Two Florida men have agreed collectively to pay at least $4 million to resolve allegations that they violated the False Claims Act by engaging in schemes to generate prescriptions for compounded drugs and refer those prescriptions to pharmacies in exchange for illegal kickbacks. Many of those prescriptions were billed to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees, and military dependents.
Jack Lee Stapleton, of Gulf Stream, Florida, and Jack Hunter Stapleton, of Fort Lauderdale, Florida, formerly owned a marketing business in Fort Lauderdale, Florida, which operated under various names, including CV McDowell LLC, and J&J Tel Marketing LLC (the Stapleton Entities). The United States alleged that the Stapleton Entities, under the Stapletons’ direction, used telemarketing to solicit prospective patients to accept compounded drugs regardless of patient need, procured prescriptions for those patients, and then sent those prescriptions to compounding pharmacies that agreed to pay the Stapleton Entities half of the amount TRICARE reimbursed for each prescription. The Stapletons and Stapleton Entities worked with pharmacies to identify compounded drug formulas that maximized the level of reimbursement for the drugs, regardless of the medical need for the chosen formula. They then sought to procure large volumes of prescriptions for those formulas. In many cases, the Stapleton Entities procured prescriptions by paying telemedicine providers who prescribed expensive compounded drugs without ever seeing the patients or conducting any meaningful medical examination.
“Kickback arrangements undermine confidence in our health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This case demonstrates how kickback schemes often result in the provision of medically unnecessary services at the taxpayer’s expense. The department is committed to holding accountable those who engage in such unlawful conduct.”
“This is another in a long line of this office’s civil and criminal prosecutions of pharmacies, marketers, and prescribers – both individual and corporate – who exploited the TRICARE program for their personal gain and at substantial expense to taxpayers,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We will continue to use all available resources to pursue those who defraud this and other federal healthcare programs and to return monies to those programs.”
“The Defense Criminal Investigative Service (DCIS) protects the integrity of Department of Defense programs, such as TRICARE, by rooting out those who choose to divert into their own pockets American taxpayer dollars intended to support our men and women in uniform,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Individuals who unjustly enrich themselves will be held accountable.”
“We are grateful to those who came forward to expose these fraudulent practices and vow to continue our efforts to protect taxpayers from fraudsters siphoning money from the nation’s health care system,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
As part of the settlement, the Stapletons have agreed to pay additional amounts in the event of certain contingencies.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dwayne Thornton against the Stapletons. 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 the settlement if the government takes over the case and reaches a monetary agreement with the defendant. Mr. Thornton is a former employee of one of the pharmacies to which the Stapleton Entities referred prescriptions. The share to be awarded from this settlement has not yet been determined. The qui tam case is captioned United States ex rel. Thornton v. National Compounding Co. et al., Case No. 8:15-cv-2647 (M.D. Fla.).
The resolutions obtained in this matter were the result of a coordinated effort between the Department of Justice Civil Division’s Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the Middle District of Florida, the FBI, and DCIS.
The matter was investigated by Trial Attorney Nathan Green and Assistant U.S. Attorney Charles Harden.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Owners of Telemarketing Company Agree to Pay at Least $4 Million to Resolve False Claims Act AllegationsRead the Press Release
Two Florida men have agreed collectively to pay at least $4 million to resolve allegations that they violated the False Claims Act by engaging in schemes to generate prescriptions for compounded drugs and refer those prescriptions to pharmacies in exchange for illegal kickbacks. Many of those prescriptions were billed to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees, and military dependents.
Jack Lee Stapleton, of Gulf Stream, and Jack Hunter Stapleton, of Fort Lauderdale, formerly owned a marketing business in Fort Lauderdale which operated under various names, including CV McDowell LLC, and J&J Tel Marketing LLC (the Stapleton Entities). The United States alleged that the Stapleton Entities, under the Stapletons’ direction, used telemarketing to solicit prospective patients to accept compounded drugs regardless of patient need, procured prescriptions for those patients, and then sent those prescriptions to compounding pharmacies that agreed to pay the Stapleton Entities half of the amount TRICARE reimbursed for each prescription. The Stapletons and Stapleton Entities worked with pharmacies to identify compounded drug formulas that maximized the level of reimbursement for the drugs, regardless of the medical need for the chosen formula. They then sought to procure large volumes of prescriptions for those formulas. In many cases, the Stapleton Entities procured prescriptions by paying telemedicine providers who prescribed expensive compounded drugs without ever seeing the patients or conducting any meaningful medical examination.
“Kickback arrangements undermine confidence in our health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This case demonstrates how kickback schemes often result in the provision of medically unnecessary services at the taxpayer’s expense. The department is committed to holding accountable those who engage in such unlawful conduct.”
“This is another in a long line of this office’s civil and criminal prosecutions of pharmacies, marketers, and prescribers – both individual and corporate – who exploited the TRICARE program for their personal gain and at substantial expense to taxpayers,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We will continue to use all available resources to pursue those who defraud this and other federal healthcare programs and to return monies to those programs.”
“The Defense Criminal Investigative Service (DCIS) protects the integrity of Department of Defense programs, such as TRICARE, by rooting out those who choose to divert into their own pockets American taxpayer dollars intended to support our men and women in uniform,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Individuals who unjustly enrich themselves will be held accountable.”
“We are grateful to those who came forward to expose these fraudulent practices and vow to continue our efforts to protect taxpayers from fraudsters siphoning money from the nation’s health care system,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
As part of the settlement, the Stapletons have agreed to pay additional amounts in the event of certain contingencies.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dwayne Thornton against the Stapletons. 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 the settlement if the government takes over the case and reaches a monetary agreement with the defendant. Thornton is a former employee of one of the pharmacies to which the Stapleton Entities referred prescriptions. The share to be awarded from this settlement has not yet been determined. The qui tam case is captioned United States ex rel. Thornton v. National Compounding Co. et al., Case No. 8:15-cv-2647 (M.D. Fla.).
The resolutions obtained in this matter were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the Middle District of Florida, the FBI, and DCIS.
The matter was investigated by Trial Attorney Nathan Green and Assistant U.S. Attorney Charles Harden.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Newark High School Faculty Member Pleads Guilty to Production and Possession of Child Pornography, Faces up to 50 Years in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Holland, 29, of Newark, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to production of child pornography and possession of child pornography involving prepubescent minors. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 50 years, lifetime supervised release, and a $500,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between 2016 and 2020, the defendant, who was formerly employed as a Teaching Assistant in the Newark, NY, Central School District, and a teacher/assistant at the Canandaigua, NY, YMCA, engaged in a series of child exploitation and child pornography crimes, including coercing minors both known and unknown to him to produce child pornography via social media; surreptitiously recording minors in states of undress in their homes, surreptitiously recording minors in states of undress at a YMCA where he was employed, surreptitiously recording minors and others in states of undress at his Newark photography studio “Illumination Images,” and downloading and possessing hundreds of images and videos of pre-existing child pornography via the internet.
The defendant posed as a 14-16 year-old male and used the Snapchat account “Tjohnson755” and the Instagram account “TimJ755,” to engage minors in sexually explicit conversations. Holland would begin in neutral conversation, then would send pictures of an attractive teenaged boy, before transitioning the conversation to sexual topics and demanding that the minors produce and send to him nude or semi-nude photographs – to include the minors’ faces. The defendant often played upon his victims’ insecurities, paying them compliments and promising that he would delete their photos and would not share them. In some cases, once he obtained nude or semi-nude photographs, Holland would ask for more sexually explicit photographs involving sex acts. If a minor declined, the defendant threatened to share their previous images over the Internet. Since the defendant knew many of the minors through his employment with the Newark Central School District, he sometimes made specific threats involving the minors actual addresses, relatives, and schools, causing the minors, most of whom were 13 to 16 years old, to suffer extreme anxiety and fear.
The defendant’s conduct was first discovered when a minor victim in Virginia reported to police that Holland had coerced her into sending him sexually explicit photographs and videos. An investigation by the Loudoun County, Virginia, Sheriff’s Office led to the discovery of dozens of victims in the Western District of New York, and coordination with the Newark Police Department, the Wayne County Sheriff’s Office, the Canandaigua Police Department, and the Department of Homeland Security.
In addition to coercing minors to produce child pornography via social media and the internet, Holland also engaged in the following conduct:
• Between October 2019, and February 14, 2020, while employed as a teacher/assistant at the before and after school childcare program at the Canandaigua YMCA, the defendant was responsible for supervising children 3 to 12 years old. On at least one occasion, Holland entered the family locker room and photographed approximately 5 female children in his care as they were changing out of their swimsuits after swimming in the YMCA pool.
• Between February 18, 2019, and February 20, 2020, Holland surreptitiously recorded a 10-11 year-old girl in various stages of undress in the bathroom of her home in Newark.
• On April 17, 2016, the defendant surreptitiously recorded a 10 year-old female in various stages of undress in the bathroom of her home in Marion, NY.
• Prior to his arrest in May 2020, Holland was also the owner and operator of Illumination Images located in Newark. Using this business, the defendant surreptitiously recorded minors in various states of undress by placing a hidden recording device inside of the studio changing room.
The defendant also possessed hundreds of images and videos of child pornography that he obtained via the Internet, including images and videos depicting the sexual abuse of prepubescent minors, to include toddlers, and children being subjected to violence.
The plea is the result of an investigation by the Loudoun County, VA, Sheriff’s Office, under the direction of Sheriff Michael L. Chapman; the Newark, NY Police Department, under the direction of Chief Mark Thoms; the Wayne County Sheriff’s Office, under the direction of Sheriff Berry Virts; the Canandaigua, NY Police Department, under the direction of Chief Stephen Hedworth; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 17, 2021, at 9:15 a.m., before Judge Siragusa.
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Former Echo Housing Corporation Executive Director Sentenced on Three Counts of TheftRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Stephanie TenBarge, 73, of Evansville, Indiana, was sentenced to two years’ probation by U.S. District Judge Richard Young. TenBarge previously worked as the Executive Director at Echo Housing Corporation, where she embezzled more than $102,000 of funds over a three-year period from the organization which received federal, state, and local tax dollars.
Echo Housing Corporation is a non-profit organization based in Evansville. Echo’s mission is to create and sustain safe and affordable housing, provide supportive services, and promote community development for homeless men, women, children, and veterans.
“The citizens of Vanderburgh County and the State of Indiana deserve better from officials in positions of trust,” said Childress. “Citizens should be confident that taxpayer funds are used to help those in need, not line the pockets of those in power.”
TenBarge served as Executive Director of Echo Housing Corporation and in that role had the primary responsibilities of bookkeeping, balancing bank statements, and preparing finance reports and records for Echo’s Board of Directors to approve. TenBarge maintained and controlled Echo’s checking accounts and had the ability to direct funds from the organization’s accounts to herself and other individuals.
From January 1, 2015 through December 31, 2017, TenBarge embezzled funds from Echo Housing Corporation by making unauthorized payments to herself and issuing unauthorized payroll checks to herself. In addition, TenBarge used Echo funds to pay property taxes for her personal residence; purchase a heat pump for her home; and pay individuals to perform maintenance inside her home and the surrounding property. During this time period, Echo received federal funds from the U.S. Department of Housing and Urban Development, the U.S. Department of Justice, and the U.S. Department of Labor.
This investigation was a collaborative effort between the Federal Bureau of Investigation, Evansville Police Department, U.S. Department of Housing and Urban Development Office of Inspector General, Indiana State Board of Accounts, and United States Secret Service.
“Ms. TenBarge abused her official position to pad her pockets with taxpayer funds for nothing more than simple greed and, in doing so, victimized those she should have been serving,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will continue our mission to root out public officials who commit federal crimes and ensure they are held accountable for their actions.”
“This case should serve as a reminder that the American people will not stand for those in power to take advantage of their position and take from those they have been charged to help,” said Eric Reed, Special Agent in Charge of the Indianapolis Field Office. “The Secret Service is proud to work with the Federal Bureau of Investigation, Housing and Urban Development Office of Inspector General, Evansville Police Department and the U.S. Attorney’s Office, especially on cases as important as this one.”
“This sentencing represents our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to illegally benefit from them.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, TenBarge must also pay $90,513.95 in restitution to Echo Housing Corporation.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and violate the public trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.3.
Former Chief Investment Officer Admits Bank Fraud Relating to $91.5 Million Commercial LoanRead the Press Release
NEWARK, N.J. – A former chief investment officer of a medical property management company pled guilty today to a bank fraud conspiracy involving a $91.5 million commercial mortgage loan, Acting U.S. Attorney Rachael A. Honig announced.
Barton Schack, 65, of Ringwood, New Jersey, was charged by information with one count of conspiracy to commit bank fraud. United States District Court Judge Madeline Cox Arleo accepted the guilty plea.
According to documents filed in this case and statements made in court:
Schack was the chief investment officer of Regent Medical Properties (“Regent”), a property management company located in Glen Rock, New Jersey. Sovereign Medical Services, and affiliates (“Sovereign”), was a network of multi-specialty, out-patient medical practices headquartered in Glen Rock, New Jersey, with various practice locations. Co-conspirator 1 was the founder and chief executive officer of both Regent and Sovereign.
In April 2016, Schack and Co-conspirator 1 used fraudulent representations to obtain a $91.5 million loan (the “Mortgage Loan”) from Lender 1 and others secured by thirteen medical office buildings in New Jersey, New York, and Florida (the “Medical Properties”). The borrowers in the Mortgage Loan were thirteen separate special purpose entities—majority-owned by Co-conspirator 1—one for each collateral property (collectively, the “Borrowers”).
Schack and Co-conspirator 1 exploited the fact that, through Sovereign, Co-conspirator 1 controlled approximately half of the tenants in the Medical Properties. Schack and Co-conspirator 1 misrepresented to Lender 1 the physical occupancy status of certain affiliated tenants and the Medical Properties’ true rental income.
After the Mortgage Loan closed, Schack and Co-conspirator 1 continued their scheme to conceal the actual financial status of the Medical Properties by submitting fraudulent financial statements to the loan servicer on a monthly basis. Those misrepresentations allowed Schack and Co-conspirator 1 to avoid accelerated payment on the Mortgage Loan.
Finally, after the Mortgage Loan closing, Schack and Co-conspirator 1 diverted rent payments owed through the “lockbox” account procedure specified in the Mortgage Loan agreement. Instead, Schack and Co-conspirator 1 used the funds for both Regent’s operating expenses and Co-conspirator 1’s personal expenses, including credit card bills of up to approximately $80,000 per month and private jet payments. Through such means, Co-conspirator 1 diverted millions of dollars in rental payments from the “lockbox” account over the course of the Mortgage Loan for his own personal use.
Shortly after the closing of the Mortgage Loan in April 2016, Lender 1 sold its interest into two commercial mortgage-backed security loans. By 2019, approximately three years after the closing of the Mortgage Loan, the Borrowers were sixty days behind on loan payments, and administration of the loan was referred to a special servicer. In February 2020, the Borrowers declared bankruptcy.
The conspiracy to commit bank fraud count carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch, Jr., and IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Shawn Barnes of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Brent Culpepper, Esq.
Former Bank Teller Sentenced to Fifteen Months in Jail for Stealing from Wells Fargo Bank CustomersRead the Press Release
WASHINGTON – Tiara Langston, 29, of District Heights, Maryland, was sentenced Thursday in the United States District Court for the District of Columbia to 15 months of incarceration for her role in a scheme that bilked Wells Fargo customers of $124,000 from their accounts. United States District Court Judge Royce C. Lamberth imposed the sentence, also ordering Langston to pay restitution to Wells Fargo which incurred losses on behalf of its customers.
Langston pleaded guilty on November 30, 2020. In entering her plea, Langston admitted to participating in a scheme to steal from Wells Fargo’s customers while she was employed at the bank as a teller during 2017. According to the government’s evidence, Langston used Wells Fargo’s systems to check the account balances of customers without customers’ knowledge. Langston would then share with a confederate the customer’s name and account balance. The confederate then entered the bank and withdrew funds from the customer’s account by presenting a forged signature for the customer. The conspirators used this scheme to steal $124,000 in cash and an $80,000 cashier’s check from two of the bank’s customers. Wells Fargo was able to detect the theft and stop payment of the $80,000 cashier’s check, thus incurring total losses on behalf of its customers in the amount of the $124,000 in cash that Langston and others stole.
In announcing the sentence, Acting U.S. Attorney Channing D. Phillips commended the work of the Federal Bureau of Investigation, Washington Field Office, which investigated the case. He also acknowledged the work of those who are handling the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Frijas and Assistant U.S. Attorney John W. Borchert.
Former Background Investigator for Federal Government Pleads Guilty to Making a False StatementRead the Press Release
WASHINGTON – Lucia Rose DiEmidio, 28, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from her falsification of work on background investigations of federal employees and contractors, announced Acting U.S. Attorney Channing D. Phillips.
DiEmidio, of Bohemia, New York, pled guilty in the United States District Court for the District of Columbia to making a false statement. The Honorable Trevor N. McFadden scheduled sentencing for June 1, 2021. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000.
According to the government’s evidence, DiEmidio was employed by a private contractor that had a contract to supply background investigations on behalf of OPM’s Federal Investigative Services, which subsequently became known as OPM’s National Background Investigations Bureau (NBIB). DiEmidio admitted that, between approximately March 2017 and August 2017, she submitted Reports of Investigation for background investigations in which she falsely represented, about 26 times, that she had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, DiEmidio had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
On October 1, 2019, the functions and personnel of National Background Investigations Bureau were transferred to the Defense Counterintelligence and Security Agency (DCSA). DeEmidio’s conduct occurred prior to the transition and while conducting work on behalf of OPM.
The false representations by DiEmidio have required OPM and DCSA to reopen and rework numerous background investigations that were assigned to her during the time period of her falsifications, at an estimated cost of at least $86,562 to the federal government.
OPM’s Federal Investigative Services and National Background Investigations Bureau had a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to DiEmidio, more than 30 other background investigators have been convicted of charges.
In announcing the plea, Acting U.S. Attorney Phillips commended the efforts of Special Agent Christopher J. Sulhoff, Office of the Inspector General, OPM; and Dale A. Walker, Office of the Inspector General, Defense Counterintelligence and Security Agency. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Angeline Thekkumthala, Assistant U.S. Attorney Joshua Rothstein, and former Assistant U.S. Attorney Bianca Forde, who investigated and prosecuted the matter.
Floridian Pleads in Cross-Country Marijuana Trafficking Conspiracy that Distributed on Western PA College CampusesRead the Press Release
PITTSBURGH - A Florida resident pleaded guilty in federal court to a charge of conspiracy to distribute marijuana, Acting United States Attorney Stephen R. Kaufman announced today.
Ryan Hendrix, age 32, of Lighthouse Point, Florida, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration and other agencies conducted a multi-year investigation of the marijuana trafficking conspiracy of Hendrix and his co-conspirators. From 2012 through 2017, Hendrix and his co-conspirators arranged for marijuana to be supplied from the West Coast and mailed to the Pittsburgh area through the United States Postal Service. Hendrix’s co-conspirators would then distribute the marijuana in the Western District of Pennsylvania, primarily on college campuses, such as Indiana University of Pennsylvania.
Judge Cercone scheduled sentencing for July 22, 2021. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Indiana Borough Police conducted the investigation that led to the prosecution of Hendrix. 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.
Florida drug trafficker caught with 78 pounds of meth in a traffic stop near Columbus sentenced to 11 years in prisonRead the Press Release
BILLINGS – A Florida man who admitted trafficking methamphetamine after the Montana Highway Patrol found 78 pounds of the drug during a traffic stop in one of the state’s largest seizures was sentenced today to 11 years in prison and to five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Nicholas James Imhoff, 30, of Cape Coral, Florida, pleaded guilty on Sept. 9, 2020 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
“With this traffic stop of Mr. Imhoff’s vehicle, the Montana Highway Patrol prevented a staggering amount of nearly pure methamphetamine from hitting the streets and harming communities. The U.S. Attorney’s Office is dedicated to dealing with the problem of meth in our communities. We need to reduce both supply and demand. One way to reduce supply is demonstrated by this case. Meth traffickers caught in Montana will be investigated and prosecuted to the full extent of the law,” Acting U.S. Attorney Johnson said.
"Meth is the driving force behind the surge in violent crime across our state in recent years. One Highway Patrol trooper’s vigilance resulted in one of the largest drug interdictions in state history and kept a massive amount of meth off the streets. The Highway Patrol and entire Montana Department of Justice will continue to pursue and crack down on the people who are flooding our communities with dangerous drugs,” Montana Attorney General Austin Knudsen said.
The government said in court documents filed in the case that on Feb. 11, 2020, a Montana Highway Patrol trooper stopped a vehicle for speeding on Interstate 90 near Columbus. Imhoff, the driver and sole occupant, told the trooper he was headed back to work in the oilfields in North Dakota. Imhoff's explanations and other observations led the trooper to suspect Imhoff was transporting drugs.
Imhoff's vehicle was impounded and the officer obtained a Montana search warrant. During a search of the vehicle, officers seized about 78 pounds of meth, which is the equivalent of 282,672 doses. The meth was located under a floor storage compartment in the second seat area and was in white plastic garbage bags. Some of the meth was packaged in vacuum sealed plastic bags and some was wrapped in duct tape. An analysis by a Drug Enforcement Administration lab determined the meth was 98 percent pure. The street value of the meth was estimated at between $624,000 to $1,248,000. The seizure was one of the largest meth seizures in Montana.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the Drug Enforcement Administration and the Montana Highway Patrol.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Florida Man Sentenced to 10 Years for Distributing FentanylRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard has sentenced Wendell Mario Roy (39, Taylor, MI), a/k/a Chico, to 10 years in federal prison for conspiracy to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and conspiracy to commit money laundering. He was also ordered to serve a 5-year term of supervised release.
Roy had pleaded guilty on September 3, 2020.
According to court documents, Roy utilized different “trap houses” in Jacksonville to distribute heroin and fentanyl. As part of a Drug Enforcement Administration investigation, agents learned that a package was deposited into the U.S. mail and addressed to one of Roy’s trap houses. The package was intercepted in Jacksonville, where a law enforcement drug canine alerted to the presence of drugs inside the package. A federal search warrant executed on the package revealed a toy truck with a small package taped to the underside of the truck, and containing a white compressed powdery substance, later determined to be fentanyl (92 grams).
Further investigation uncovered the full extent of the distribution network, resulting in Roy being held responsible for over 400 grams of fentanyl. The investigation also revealed bank accounts that Roy used to launder thousands of dollars in drug proceeds.
“Fentanyl destroys lives, wrecks families, and threatens communities. The fight against the opioid scourge is real,” stated Assistant Special Agent in Charge Ronald Loecker of IRS Criminal Investigation. “IRS Special Agents are firmly resolved to lend their financial expertise to track down those who profit from the sale of this and other illicit drugs.”
This case was investigated by Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Beatriz Gonzalez and Frank Talbot.
Final Defendant Sentenced to 284 Months in Methamphetamine Trafficking ConspiracyRead the Press Release
COVINGTON, Ky. – A Florence man, John P. Darnell, 65, was sentenced on Friday to 248 months in federal prison, by U.S. District Judge David Bunning, for conspiring with others to distribute methamphetamine and possession of a firearm by a convicted felon.
According to his guilty plea agreement, Darnell conspired with others to distribute 500 grams of more of methamphetamine, between March 1, 2019 and December 11, 2019. Specifically, Darnell admitted that law enforcement executed a search warrant on a residence and located three firearms and four baggies of methamphetamine that belonged to him. Darnell further admitted that he was a convicted felon and was prohibited from possessing a firearm.
Darnell pleaded guilty in July 2020.
Darnell’s co-defendants were previously sentenced. Buddy J. Pauly received 72 months in prison and three years of supervised release. Lori A Wilson received 30 months in prison and five years of supervised release.
Under federal law, Darnell and his co-defendants must serve 85 percent of their prison sentences. Darnell will be under the supervision of the U.S. Probation Office for five years, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; and Robert Brown, Special Agent in Charge, FBI, Louisville Field Division, jointly announced the sentencing.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Tony Bracke.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the U.S. Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s targeted initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
Federal Jury Convicts Ocala Man for Narcotics and Firearm ChargesRead the Press Release
Ocala, Florida – A federal jury has found Michael Kendrick (35, Ocala) guilty of possession of a controlled substance with intent to distribute, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a convicted felon. Kendrick faces a mandatory minimum penalty of 15 years, and up to, life in federal prison. His sentencing is scheduled for June 21, 2021.
Kendrick was originally indicted on February 5, 2020.
According to testimony and evidence presented at trial, on July 6, 2019, at approximately 1:30 a.m., an Ocala Police Department officer stopped Kendrick for committing a traffic offense. Kendrick immediately fled from the vehicle, discarding a plastic bag containing 29 individual packets of eutylone, a controlled substance. The officer gave chase and apprehended Kendrick. A search of the vehicle revealed a loaded handgun, along with paraphernalia used for distributing narcotics. Kendrick also had three cellphones and $1,844 in currency on his person. Kendrick’s DNA was also found on the recovered firearm.
As a multi-convicted felon, a career offender and armed career criminal, Kendrick is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Tyrie K. Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.