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29 April 2021
Randolph County woman sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Melissa Ann Slayton, of Elkins, West Virginia, was sentenced today to 100 months of incarceration for methamphetamine distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Slayton, 36, pleaded guilty to one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine” in October 2020. She admitted to having more than five grams of methamphetamine, also known as “crystal meth” and “ice,” in November 2019 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Pass Christian Man pleads guilty to being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Mississippi – A Pass Christian, Mississippi man pleaded guilty today to being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Mason Charles Brown, 32, when encountered by law enforcement officers on November 10, 2020, knowingly possessed a firearm, and had previously been convicted of a crime which is punishable by imprisonment for a term exceeding one year.
Brown pleaded guilty to the one-count indictment alleging he was a previously convicted felon knowingly possessing a firearm. He is scheduled to be sentenced on July 29, 2021, and faces a maximum penalty of not more than 10 years in prison. If the Court deems Brown qualifies as an Armed Career Criminal, however, he faces a maximum penalty of not less than fifteen (15) years imprisonment to life. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Harrison County Sheriff’s Office Narcotics Division and The Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Operation Second Wave Update: Huntington Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Huntington man was sentenced to 36 months in federal prison for conspiracy to distribute methamphetamine. Jimmie Lee Coleman, 35, was prosecuted as part of “Operation Second Wave,” which dismantled a poly-drug network operating in Kanawha and Fayette counties.
According to court documents, Coleman admitted selling more than a 1.5 pounds of methamphetamine as part of his role in the organization.
Other defendants, including Carol Belton, Sammy Joe Fragale, Sr., Larry Martin, Rashawn Miller, and Jason Terrell have pleaded guilty and are awaiting sentencing. Gregory Woods was sentenced to 184 months in federal prison on February 8, 2021. Sammy Joe Fragale, II, was sentenced on January 6, 2021 to 42 months in federal prison. Steven Matthew Bumpus, Roger Jarea Drake, and Tonya Simerly are awaiting court dates to enter guilty pleas. Craig Redman and Ronald Lee Thomas III are scheduled for trial on June 1, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force (CWVDTF), the Kanawha County Sheriff’s Department, the Charleston Police Department, the United States Postal Inspection Service (USPIS) and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation with assistance from the Drug Enforcement Administration (DEA), who led the investigation of Sammy Joe Fragale, Sr., and Sammy Joe Fragale II, also prosecuted as part of the Second Wave investigation.
Senior United States District Judge David A. Faber imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00045 (Miller), 2:20-cr-00153 (Woods), and 2:20-cr-00154 (Terrell et al).
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O'Fallon Man Pleads Guilty to PPP Loan FraudRead the Press Release
O’Fallon, Ill. – Jason Spengler (45), of O’Fallon, Illinois, pleaded guilty today to one count of making a false statement on a federal loan application. According to court documents, Spengler committed the felony offense last year when he filed for assistance from the Paycheck
Protection Program (“PPP”) without disclosing that his business, Spengler Plumbing Company, was in bankruptcy.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in March 2020 to provide emergency financial assistance to Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the federal PPP loan program. Administered by the Small Business Administration (SBA), the program provided loans to help qualifying businesses during the COVID-19 crisis.Debtors in bankruptcy were not eligible for PPP loans. The first question on the loan application asked, “Is the Applicant ... presently involved in any bankruptcy?” Above this question, the application explained that the loan would not be approved if the applicant answered
“Yes.”When Spengler applied for a PPP loan last year, Spengler Plumbing was in bankruptcy. But Spengler checked “No” on the application, falsely certifying to the lender and the SBA that Spengler
Plumbing was not in bankruptcy. Because of this false statement, Spengler Plumbing was awarded a
$487,095 PPP loan in April 2020.As a debtor in bankruptcy, Spengler Plumbing was also required by law to obtain prior authorization from the bankruptcy court before incurring any new unsecured debt. But Spengler applied for the government loan without notifying the bankruptcy judge, thereby evading the safeguards put in place by both the SBA and the bankruptcy court.
“Together with U.S. Attorney Steve Weinhoeft and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy J. Gargula, U.S. Trustee for Region
10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.Sentencing is set for August 18, 2021, at the federal courthouse in East. St. Louis. The charge carries a maximum sentence of five years in prison and a fine of up to $250,000.
This case was referred to the U.S. Attorney’s Office for prosecution by the U.S. Trustee for Region
10, in collaboration with the Southern District of Illinois Bankruptcy Fraud Working Group.
The investigation was conducted by the Small Business Administration – Office of the Inspector
General. The case is being prosecuted by Assistant United States Attorney Peter T. Reed.Northern Nevada Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
RENO, Nev. – A Fernley resident pleaded guilty today to using encrypted applications and online aliases to distribute child pornography, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
According to court documents, Benjamin D. Morrow, 36, used various encrypted messaging applications and numerous online aliases and email address, including foreign email service providers, to distribute unsolicited images and videos of minors engaged in sexually explicit conduct. He used encrypted applications to conceal his identity and avoid detection by law enforcement. Morrow distributed child pornography to at least 182 recipients. The images and videos depict prepubescent minors under 12 years old engaged in masochistic and sadistic material.
During the execution of a search warrant at Morrow’s residence, law enforcement seized several electronic devices belonging to him. A forensic analysis of the seized devices revealed approximately 119,371 images of child pornography and 4,945 videos of child pornography.
Morrow pleaded guilty to two counts of distribution of child pornography. He is scheduled to be sentenced on August 16, 2021. The maximum statutory penalty for each count is 20 years in prison.
The case was investigated by the FBI, Nevada Attorney General’s Office, Washoe County Sherriff’s Office, Lyon County Sherriff’s Office, Reno Police Department, Carson City Sherriff’s Office, and the Naval Criminal Investigative Service. Assistant U.S. Attorney Andolyn Johnson is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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North Pole Man Sentenced for Illegal Hunting and Fraudulent Subsistence PermitsRead the Press Release
FAIRBANKS – Robert J. Albaugh, 58, of North Pole, Alaska, was sentenced yesterday in U.S. District Court in Fairbanks for violating the Lacey Act and other federal laws stemming from the illegal hunting of caribou and moose after fraudulently obtaining federal subsistence permits.
Albaugh previously pled guilty to a misdemeanor violation of the Lacey Act and another federal law prohibiting false statements on subsistence hunting permit applications. Albaugh was sentenced by Senior U.S. District Judge Ralph R. Beistline to pay a fine of $5,000 and serve 30 months of federal probation, during which Albaugh is prohibited from hunting, fishing or trapping anywhere in the world.
According to the plea agreement, between 2002 and 2018, the defendant and his wife applied for and received a combined sixty-three federal subsistence hunt permits for Game Management Unit (GMU) 13, located south of Delta Junction, Alaska, by falsely certifying to the Bureau of Land Management (BLM) that he and his wife were “rural residents” of Delta Junction. In truth, the defendant knew that he and his wife were residents of North Pole and thus did not qualify as rural residents eligible to obtain federal subsistence hunt permits. The defendant and his wife took and transported a combined 23 caribou and one moose in violation of the Lacey Act and other federal regulations.
In 1980, Congress passed the Alaska National Interest Lands Conservation Act (ANILCA), which protects the subsistence needs of rural Alaskans. The Federal Subsistence Management Program is a multi-agency effort to provide the opportunity for a subsistence way of life by rural Alaskans on federal public lands and waters while maintaining healthy populations of fish and wildlife. Subsistence fishing and hunting provide a large share of the food consumed in rural Alaska. Nowhere else in the United States is there such a heavy reliance upon wild foods. This dependence on wild resources is cultural, social and economic. Alaska’s indigenous inhabitants have relied upon the traditional harvest of wild foods for thousands of years and have passed this way of life, its culture and values down through generations. Subsistence has also become important to many non-Native Alaskans, particularly in rural Alaska.
In issuing the sentence, Judge Beistline noted the importance of protecting Alaska’s natural resources and “respecting the wildlife in our state.” He also noted the importance of deterring the defendant and others from similar future violations.
The Bureau of Land Management Office of Law Enforcement and Security conducted the investigation following a separate investigation of the Albaughs by the Alaska Wildlife Troopers for Taking of Wildlife Closed Season. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey for the U.S. Attorney’s Office, District of Alaska.
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New York Man Pleads Guilty to $4 Million Extortion SchemeRead the Press Release
WASHINGTON – Robert Evans, 33, of New York, N.Y., pled guilty today to participating in a $4 million extortion, fraud, and money laundering scheme with his ex-common-law wife and members of his family, including his parents. The guilty plea was announced by Acting U.S. Attorney Channing D. Phillips and James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division.
In April 2018, a federal grand jury indicted Evans, his common-law ex-wife Gina Rita Russell, his brothers Tony John Evans and Corry Blue Evans, and his parents Archie Kaslov and Candy Evans on various charges related to the scheme. With the exception of Corry Blue Evans, each defendant has pled guilty.
As part of the scheme, a New York woman conspired with Robert Evans, Russell, Tony John Evans, Corry Blue Evans, and Kaslov to extort money and gold bars from a Maryland man, which caused the man to embezzle funds from his employer between January 2017 and March 2017. The man converted embezzled funds to cash and gold bars. He delivered the money and gold bars to New York drop-off locations, including a hotel room, believing the funds were going to mobsters to whom the New York woman owed money. At one point during the scheme, Tony John Evans spoke to the man on the phone and threatened him by asking if he needed to remind the man where his kids went to school and where the man lived.
In reality, all of the funds the man embezzled and delivered to New York went to members of the Evans-Kaslov family. Among other things, Robert Evans arranged the logistics of a $500,000 cash payment, which involved renting hotel rooms, retrieving the cash after the Maryland man delivered it, and taking the cash to a co-conspirator’s residence.
Like Robert Evans, Tony John Evans and Russell pled guilty to interference with interstate commerce by extortion, in violation of 18 U.S.C. § 1951. Tony John Evans was sentenced to five years in prison and is currently serving his sentence. Russell has not yet been sentenced.
Kaslov pled guilty to conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, and admitted to driving family members around New York with cash obtained from the scheme, selling gold bars for cash, and traveling to Texas to purchase a Rolls Royce Phantom Drophead for more than $300,000 in cash. In January 2020, Kaslov and Candy Evans sold that Rolls Royce in New Jersey for $120,000.
Candy Evans pled guilty to tampering with a witness by corrupt persuasion or misleading conduct, in violation of 18 U.S.C. § 1512(b)(3). As part of her guilty plea, she admitted that once the FBI launched its investigation, she counseled the New York woman whom the Maryland man met on Backpage to lie to people, including the FBI. In October 2017, two days after the FBI executed search warrants at various Evans-Kaslov family members’ residences, Candy Evans called an FBI special agent who was investigating the case and told him that Kaslov and two of her other sons had not done anything illegal, which she acknowledged was false, and that it was just Tony John Evans, Russell, and the New York woman who had committed the crimes. In November 2017, Candy Evans also instructed Russell to lie to the FBI. Kaslov and Candy Evans are scheduled to be sentenced on June 10, 2021.
The maximum sentence for interference with interstate commerce by extortion is twenty years in prison. Under federal sentencing guidelines, however, the likely recommended sentence for Robert Evans on that charge is 57 to 71 months in prison. The Honorable Emmet G. Sullivan, who accepted his guilty plea, scheduled sentencing for September 30, 2021.
In announcing the guilty plea, Acting U.S. Attorney Phillips and Special Agent in Charge Dawson commended the work of those who investigated the case from the FBI’s Washington Field Office. They expressed appreciation for assistance provided by the U.S. Department of Justice Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Arvind Lal, who are assisting with forfeiture issues, Paralegal Specialist Stephanie Frijas, former Paralegal Specialists Brittany Phillips, Joshua Fein, Jessica Mundi, and Kristy Penny, and Forensic Accountant Bryan Snitselaar.
Finally, they commended the work of Assistant U.S. Attorneys David Kent and Kondi Kleinman, who investigated and are prosecuting the case.
New Jersey Man Sentenced to More Than Five Years in Federal Prison for $3.5 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Mehul Khatiwala, age 37, of Voorhees, New Jersey, to 63 months in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud and for three counts of bank fraud, in connection with schemes to fraudulently obtain a total of approximately $15 million in loans from Cecil Bank to purchase hotels and a multifamily residential property, resulting in losses of more than $3.5 million. Judge Chasanow also ordered Khatiwala to pay a $50,000 fine and to forfeit and pay restitution of $3,593,801.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency (FHFA), Office of Inspector General; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General(FDIC-OIG); Special Inspector General Christy Goldsmith Romero of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration - Office of Inspector General.
“Mehul Khatiwala will now serve more than five years in federal prison for fraudulently obtaining more than $15 million in loans. Khatiwala’s criminal behavior stole millions of dollars from the victims, which included not only the bank that made the loans, but the American taxpayers whose tax dollars guaranteed the loans,” said Acting U.S. Attorney Jonathan F. Lenzner. “All of us in federal law enforcement are committed to investigating and prosecuting this type of costly fraud.”
According to his plea agreement, from February 2011 through January 2014, Khatiwala and two co-conspirators executed a scheme to defraud Cecil Bank, the Small Business Administration (SBA), and other financial institutions by misrepresenting material facts in order to obtain financing for the purchase of two hotels and a multifamily residential property. Khatiwala defaulted on the loans, causing losses to Cecil Bank and the SBA of more than $3.5 million. According to the indictment and information presented at today’s plea hearing, on December 23, 2008, Cecil Bank’s holding company, Cecil Bankcorp, Inc., received an $11.5 million bailout from the Troubled Asset Relief Program (TARP).
Specifically, beginning in approximately April 2011, Khatiwala and Conspirator A made plans to apply for a $5 million loan at Cecil Bank to purchase the Memphis Airport Hotel in Memphis, Tennessee, as well as a $1.6 million loan to renovate that hotel. In order to obtain a loan, Khatiwala concealed Conspirator A’s 80% ownership of the borrowing entity because Conspirator A had already reached his legal lending limit at Cecil Bank. In May 2011, Cecil Bank’s Board of Directors approved the $5 million loan, with the condition that it be guaranteed by the SBA. The SBA required Khatiwala, as the purported 100% owner of the borrowing entity, to show that he had equity in the borrowing entity, or cash on hand of approximately $1.8 million. Conspirator B, who was an employee at another bank, falsely verified that Khatiwala had over $2 million on deposit at the co-conspirator’s bank. Khatiwala admitted that he signed and submitted this statement, which he knew to be false. The SBA approved its 75% guarantee of the $5 million loan funded by Cecil Bank. The loan went into default in January 2015.
In 2007, Khatiwala and the other owners of the Best Western Hotel in York, Pennsylvania, refinanced a loan for the property in the amount of $6.635 million. In early 2010, Khatiwala and his co-owners became delinquent on the loan and began discussions with the loan servicing company. In August 2011, Khatiwala reached an agreement with the loan servicer to accept a discounted payoff of $3.625 million on the unpaid principal balance of approximately $6.6 million. Khatiwala submitted fraudulent documentation and a fraudulent settlement statement to the loan servicer showing that the funds were being provided by a private lender. In fact, Khatiwala had arranged for the sale of the hotel to related parties for the sum of $4.3 million.
As early as April 2011, prior to the time Khatiwala made the misrepresentations to the loan servicer to negotiate the payoff, he began implementing the second step of his short-sale fraud scheme by arranging the sale of the hotel to Person B and one of Khatiwala’s employees. Khatiwala fraudulently obtained a $3.225 million loan from Cecil Bank, which was guaranteed by the SBA. During the loan application review and underwriting process performed by Cecil Bank and the SBA, Khatiwala submitted false documents as to the ownership of the selling and purchasing entities, as well as false financial statements for the purchasers. Khatiwala knew that the funds paid at closing would come from Khatiwala’s own personal bank account and other businesses, not from the purchasers, as was falsely represented to the bank and the SBA, in order to obtain approval of the loan. As a result of this short-sale fraud, the original holder of the note on the Best Western Hotel lost $675,000, which instead went to Khatiwala.
Finally, Khatiwala admitted that beginning in February 2011, he negotiated the purchase of a multifamily residential property in Perryville, Maryland. In order to obtain the loan, he established a company to serve as the borrowing and purchasing entity, representing to Cecil Bank that Persons A and B, a husband and wife, were the 100% owners of the company, and Khatiwala was the manager. In fact, Conspirator A owned 50% of the company and agreed to serve as guarantor on the loan. The bank approved a $7,122,500 loan for the purchase of the property with Persons A and B as the 100% owners of the purchasing entity. On about March 28, 2011, several days before settlement, Khatiwala e-mailed to Conspirator A an Amended and Restated Operating Agreement reflecting Conspirator A’s 50% interest in the property and his agreement to indemnify Persons A and B for any loss, cost, liability or expense arising in connection with any enforcement of Cecil Bank’s rights under the loan guarantee agreement. Khatiwala, Conspirator A, and Persons A and B signed the Amended Agreement; however, that material fact and document were never disclosed to Cecil Bank before or after the settlement, thus concealing Conspirator A’s ownership interest in the property. As early as February 2012, the loan payments of approximately $29,000 per month became delinquent and the loan went into default. Cecil Bank ultimately sold the note to a private lender for $3.252 million in lieu of foreclosure, incurring a loss of $3,583.170.
Acting United States Attorney Jonathan F. Lenzner commended the FHFA, the FDIC-OIG, SIGTARP, and the SBA-OIG, for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who prosecuted the case.
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Navajo man sentenced to three years in prison for assaultRead the Press Release
ALBUQUERQUE, N.M. – Mark Anthony Hill, 33, of Smith Lake, New Mexico, and an enrolled member of the Navajo Nation, was sentenced on April 28 in federal court to three years in prison for assault resulting in serious bodily injury in Indian Country. Hill pleaded guilty to the crime on Dec. 14, 2020.
According to the plea agreement and other court records, Hill assaulted the victim on Aug. 23, 2020, in McKinley County, New Mexico, on the Navajo Nation. Hill pushed the victim to the ground and struck him with his fists. Hill then retrieved a baseball bat and struck the victim in the head and torso causing serious injuries, including fractures to the victim’s jaw, skull and nasal passage, a torn left ear and a dislocated shoulder. After being airlifted to a Level 1 Trauma Center in Albuquerque, the victim needed surgery and two days of medical care for injuries sustained in the assault.
Upon his release from prison, Hill will be subject to three years of supervised release.
The Crownpoint District of the Navajo Nation Police Department investigated the case. Assistant U.S. Attorney Thomas J. Aliberti prosecuted the case.
Natchez Man Pleads Guilty to Possessing a Firearm as a Convicted Felon Under Project EJECTRead the Press Release
Jackson, Miss – A Natchez man pleaded guilty today to possessing a firearm after having previously been convicted of a felony, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Albert Burnell Chatman, 26, pled guilty to house burglary on May 20, 2019, in Adams County Circuit Court. He was sentenced to 7 years in the custody of the Mississippi Department of Corrections, but those 7 years were suspended, and Chatman was ordered to supervised probation. On July 24, 2019, Chatman’s truck was searched by his probation officer and a Glock handgun was found. On June 10, 2020, Chatman was indicted by a federal grand jury for possessing a firearm as a convicted felon.
Chatman is scheduled to be sentenced on July 29, 2021, and faces a penalty of up to 10 years in prison and up to $250,000 in fines. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Mississippi Department of Corrections, Natchez Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
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.
Multiple Defendants Sentenced in a Major Compounding Pharmacy Fraud ConspiracyRead the Press Release
TUSCALOOSA, Ala. – This week, Chief U.S. District Judge L. Scott Coogler sentenced two dozen defendants who were part of a major conspiracy to commit health care fraud, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division, Adrian Gonzalez, and Internal Revenue Service Criminal Investigation Special Agent in Charge James E. Dorsey.
The defendants sentenced included an array of company executives and managers, a prescriber, billers, and sales representatives. Among those sentenced this week were:
John Jeremy Adams, 40, of Panama City Beach, Florida, the president and CEO of Global Compounding Pharmacy (Global), who directed the fraud and made millions from it, was sentenced to 170 months in prison on one count of conspiring to commit health care fraud and mail fraud, 19 counts of health care fraud, one count of conspiring to pay kickbacks to a prescriber, and 8 counts of spending the proceeds of health care fraud. Adams pleaded guilty to the charges in May 2020.
James A Mays, III, 45, of Winfield, Ala., was sentenced to 102 months in prison on one count of conspiring to commit health care fraud and mail fraud, twelve counts of health care fraud, and three counts of money laundering based on spending the proceeds of health care fraud. Mays was the pharmacist who handled Global’s compounding operation and made millions during the conspiracy. Mays pleaded guilty to the charges in February 2021.
Jessica Linton, 38, of Clearwater, Florida, was sentenced to 132 months in prison on one count of conspiracy, thirteen counts of health care fraud, three counts of mail fraud, and seven counts of aggravated identity theft. Linton was the manager in charge of Global’s billing center; she altered and added prescriptions, billed insurers for medically unnecessary prescriptions, and helped hide the fraud from auditors. In February 2021, a federal jury convicted Linton of these charges.
John Gladden, 51, of Tallahassee, Florida, was sentenced to 64 months in prison on one count of conspiracy, six counts of health care fraud, one count of mail fraud, and one count of aggravated identity theft. Gladden, a district manager for Global during most of 2015, directed his sales representatives to get medically unnecessary prescriptions for themselves and their family members and profited from the scheme. In February 2021, a federal jury convicted Gladden of these charges.
Phillip Marks, 52, of St. Augustine, Florida, was sentenced to 36 months in prison on one count of conspiracy and twelve counts of health care fraud. Marks served as a manager of the sales managers and, in 2015, pressured subordinates to get unnecessary prescriptions for themselves and their family members. Marks made more than $400,000 during his time at Global. He pleaded guilty to the charges in September 2018.
“The health care fraud conspiracy and scheme executed by these defendants caused health insurance companies to lose millions of dollars,” U.S. Attorney Escalona said. “These defendants manipulated the system for their own personal gain without regard for patient need or medical necessity. I applaud our prosecutors and law enforcement partners for their commitment and hard work on this complex investigation and prosecution.”
The sentencings came after an extensive investigation into a prescription drug billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy, doing business as Global Compounding Pharmacy. More than two dozen defendants pleaded guilty to charges, and two additional defendants went to trial in February 2021.
From 2013 to 2016, this large-scale conspiracy billed insurers for massive quantities of medically unnecessary prescription drugs. The scheme involved directing employees to get medically unnecessary drugs for themselves, family members, and friends, changing prescriptions to add non-prescribed drugs because insurance would pay for them, automatically refilling prescriptions regardless of patient need, routinely waiving and discounting co-pays to induce patients to get and keep medically unnecessary drugs, and billing for drugs without patients’ knowledge. When prescription drug administrators attempted to police this conduct, the conspirators hid their fraud and obstructed detection efforts—including by lying to auditors and diverting their billing through affiliated pharmacies. The scheme targeted multiple health insurance plans, including the pharmacy’s Blue Cross Blue Shield of Alabama plan, as well as plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others.
The scheme resulted in pharmacy benefit managers paying Global nearly $50 million in claims in just a two-year period. Global received more than $13 million from prescriptions written by prescribers who were either paid cash to write them or whose spouses worked as Global sales reps. One nurse practitioner who wrote prescriptions was paid kickbacks in paper bags filled with thousands of dollars in cash and left in her car. Global also received over $8.4 million for prescriptions Global employees got for themselves—including from doctors they had never seen as patients. In some cases, Global was paid as much as $30,000 or more for a single tube of compounded cream.
The FBI, HHS-OIG, DCIS, USPIS, and IRS-CI investigated the cases. Assistant U.S. Attorneys J.B. Ward, Edward Canter, and Don Long prosecuted the case. The U.S. Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, aided in the investigation.
Member of New Bedford Latin Kings Sentenced for Being a Felon in Possession of a Firearm Following Robbery and Shooting InvestigationsRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced yesterday for being a felon in possession of a firearm and ammunition following an investigation into an armed robbery in New Bedford and a shooting in Boston in April 2020.
Ramon Martinez, a/k/a “King Razor,” 26, was sentenced by U.S. District Court Judge Denise J. Casper to 40 months in prison and three years of supervised release. In November 2020, Martinez pleaded guilty to being a felon in possession of a firearm.
On April 30, 2020, an individual in New Bedford was robbed and punched by two men who were in a black Ford Fusion. The men put a knife to the victim’s back and stole his wallet and motorized scooter. Martinez was later identified as one of the robbers.
Also on April 30, 2020, police responded to a report of shots fired in the area of Callender Street in Boston where three .45 caliber casings were recovered. Martinez’s SnapChat account included postings related to this shooting incident.
On May 7, 2020, police witnessed Martinez exit a residence on Crapo Street in New Bedford and walk to the rear of a black Ford Fusion. They observed Martinez open the trunk and quickly close it, and then get into a nearby vehicle. Officers stopped the vehicle, placed Martinez under arrest for the April 30 armed robbery and located a set of keys for the Ford Fusion. In the trunk of the Fusion, police recovered a Glock Model 30S .45 caliber firearm with four rounds of ammunition. Ballistics testing matched the Glock Model 30S to the casings recovered on Callender Street.
Due to prior felony convictions, Martinez is prohibited from possessing firearms.
A plea hearing pertaining to the New Bedford armed robbery charges is scheduled for May 19, 2021 in Bristol County Superior Court. The case is being prosecuted by the Bristol County District Attorney’s Office.
Acting United States Attorney Nathaniel R. Mendell; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; New Bedford Police Chief Joseph C. Cordeiro; and Boston Police Acting Commissioner Gregory Long made the announcement. Valuable assistance was also provided by the Bristol County District Attorney’s Office. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Organized Crime and Gang Unit prosecuted the case.
McKeesport Grocery Store Owner Sentenced to Prison for Food Stamp Fraud and Money Laundering ConspiracyRead the Press Release
PITTSBURGH, PA - A resident of Glassport, PA, has been sentenced in federal court to 27 months’ imprisonment, to be followed by a two-year term of supervised release, on his conviction of Conspiracy, Food Stamp Fraud, and Money Laundering Conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman imposed the sentence on Sin Y Sit, 46, of 502 Marie Street, Glassport, PA 15045.
According to information presented to the court, beginning in and around March 2014, and continuing until May 2017, the defendant engaged in acts of food stamp fraud and money laundering conspiracy. Sin Y Sit and his wife Qiao Jiang owned and operated Mei A. Asian Grocery in McKeesport, PA. Sit and Jiang allowed customers to unlawfully exchange food stamp credits under the USDA’s S.N.A.P. program for cash (the defendants paid out fifty cents on a dollar) and other ineligible grocery items, such as tobacco. The amount of fraud during the term of the conspiracy is between $250,000 and $550,000. The defendant also engaged in financial transactions involving cash withdrawals of money which had been transferred into the store’s business account by the USDA to reimburse the defendant and his store for the food stamp credits which had been scanned by the defendant and his customers at the store during the fraudulent transactions. The cash withdrawn by the defendant was then used by the defendant at his store to pay more customers in the unlawful use of the food stamp credits..
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the U.S. Department of Agriculture Office of Inspector General, Department of Homeland Security Investigations, and Internal Revenue Service Criminal Investigation for the investigation leading to the successful prosecution of Sin Y Sit.
Massachusetts Woman Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – Arnetta Harris, 60, of Fitchburg, Massachusetts, pleaded guilty in federal court on Tuesday to one count of aiding and abetting the distribution of a controlled substance, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on April 14, 2018, Harris sold crack cocaine to another individual who in turn sold the crack cocaine to an undercover officer. Shortly after the sale, officers conducted a traffic stop of the vehicle Harris was driving and a search revealed crack cocaine in a DVD case located in the footwell of the car. After her arrest, Harris admitted that she drove another individual to conduct the drug transaction. She further confirmed the DVD case was used in the drug transaction.
Harris is scheduled to be sentenced on August 31, 2021.
Harris is one of eleven individuals charged in this drug trafficking case. All have pleaded guilty. Several members of the conspiracy have received substantial prison sentences. Melvin Nooks, Jr. was sentenced on April 2, 2020, to 120 months. George Cruz was sentenced on July 30, 2020, to 63 months. Mallory Nooks was sentenced on February 25, 2020, to 60 months. Marvin Morrison was sentenced on May 13, 2020, to 15 months. Don Johnson was sentenced on February 13, 2020, to 42 months. Isaiah Kinard pleaded guilty on December 18, 2019, Lawrence Fortenberry pleaded guilty on January 7, 2020, William Greenleaf pleaded guilty on January 14, 2020, and Melvin Stanford pleaded guilty on April 9, 2021. They are all awaiting sentencing.
“Drug trafficking endangers public health and safety in our communities,” said Acting U.S. Attorney Farley. “Working closely with our law enforcement partners, we are targeting the organizations that distribute dangerous drugs in Nashua and throughout the Granite State. While this organization has been dismantled, we continue to work each day to identify and target other criminal organizations that threaten our citizens.”
“Arnetta Harris and her criminal cohorts thought they were above the law and could traffic crack cocaine in the neighborhoods of Nashua without getting caught. The hard work of the NH Safe Streets Gang Task Force in dismantling this organization and disrupting the flow of dangerous drugs to our area has paid off, but there is much more work to be done to ensure that other criminal enterprises don’t try to fill the void left by this one,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case was a collaborative investigation that involved the FBI New Hampshire Safe Streets Gang Task Force; the Nashua Police Department; the New Hampshire State Police; the Manchester Police Department; New Hampshire Probation and Parole; DEA; Massachusetts State Police Department; Portsmouth Police Department and the Federal Protective Service. The United States Marshals Service also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Georgiana MacDonald and Anna Krasinski.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Maryland Tax Preparer Sentenced to More Than Two Years in Federal Prison for Preparing False Returns and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Maria Espinal, age 53, of Montgomery Village, Maryland, yesterday to 27 months in federal prison, followed by one year of supervised release, for aiding and assisting in filing false tax returns and for aggravated identity theft. Judge Chuang also ordered Espinal to pay restitution in the amount of $106,066.
The sentence was announced by Acting U.S. Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Comptroller Peter Franchot.
According to court documents and statements made in court, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From 2011 through 2017, Maria Espinal prepared and filed fraudulent tax returns on behalf of her clients with the Internal Revenue Service (IRS) and the Comptroller of Maryland that claimed tax refunds to which the clients were not entitled. To generate a fraudulent refund, Espinal altered legitimate Forms W-2 in the names of third parties and replaced the third party’s name with her client’s name. As a result, her client claimed the third-party’s withholdings as his or her own, which generated fraudulent tax refunds.
In addition, Espinal displayed a sign on her office wall that read in Spanish “If you have lost your [identification] number or passport we have these people” and which listed the identifying information for several individuals. Espinal used the personal identifying information for one of those individuals to obtain a fraudulent refund on behalf of another client. Espinal also filed a tax return using another individual’s personal identifying information to generate a fraudulent refund that Espinal deposited into her own personal bank account.
Acting U.S. Attorney Lenzner and Acting Deputy Assistant Attorney General Goldberg thanked IRS - Criminal Investigation and the Office of the Comptroller of Maryland for their work in the investigation, and commended Assistant United States Attorney Erin Pulice and Carl Brooker, formerly a Trial Attorney with the Tax Division and now an Assistant United States Attorney in the Southern District of California, who prosecuted the case.
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Manchester Man Pleads Guilty to Access Device FraudRead the Press Release
CONCORD - Hayder Lefta, 24, of Manchester, pleaded guilty in federal court to six counts of access device fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, while working as a customer service representative at the Manchester Boston Regional Airport in 2018 and 2019, Lefta copied the credit card numbers of customers he served at the airport. He then used those credit card numbers, without authorization, to purchase airline flights and meals for himself and for friends, to pay for hotels for his personal leisure travel, and for other personal expenses.
Lefta is scheduled to be sentenced on August 17, 2021. The defendant’s plea agreement requires him to pay restitution to the victims of the offense.
“Crimes that involve the theft of credit card numbers or other personal information have serious consequences for their victims,” said Acting U.S. Attorney Farley. “In order to seek justice for victims, we will work closely with our law enforcement partners to identify and prosecute those who commit fraud crimes.”
“This individual stole customer information he was entrusted with safeguarding through his employment to commit fraud, stealing from unsuspecting members of the public. Homeland Security Investigations takes financial fraud schemes seriously and is committed to working with our law enforcement partners to investigate and seek prosecution,” said acting Special Agent in Charge William S. Walker for the Homeland Security Investigations Boston field office.
This matter was investigated by Homeland Security Investigations, the Federal Air Marshal Service, and the Londonderry Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Man Pleads Guilty to Selling Counterfeit VapesRead the Press Release
A Texas man pleaded guilty today to selling counterfeit vape pens imported from China, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Christopher Andrew Reyes, 23, of The Colony, pleaded guilty Thursday to conspiracy to import drug paraphernalia.
“This defendant imported thousands of potentially dangerous black-market vaping devices,” said Acting U.S. Attorney Prerak Shah. “Given the alarming incidence of lung injuries stemming from unregulated THC vapes, we knew could not allow any more of these devices onto our streets.”
“The distribution of these black-market vaping devices is not only illegal, but could prove lethal to those who consume vape materials purchased from unregulated sources, said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “These illicit items are a significant health threat in our communities and should not be available in the open market.”
According to court documents, Mr. Reyes admitted that he allowed employees of a vaping shop on Harry Hines Boulevard to order counterfeit THC vaping products online using his bank card. (Tetrahydrocannabinol, or THC, is the psychoactive compound found in marijuana.)
In September 2019, U.S. Customs & Border Protection agents intercepted a shipment of 2,400 counterfeit THC vaping devices addressed to Mr. Reyes and bound for his home. The vaping devices, which were sent from China and routed through DFW International Airport, bore the counterfeit trademark of a popular THC vape brand, “Cookies.” Agents estimated that at least five additional shipments of vaping products had been sent to Mr. Reyes.
In plea papers, the defendant admitted that after receiving the packages, he sold the contents back to the vaping shop for profit. His bank statements, which show large purchases from Chinese e-commerce company Alibaba (an online retailer similar to Amazon), backed up his admissions.
Mr. Reyes now faces up to three years in federal prison. His sentencing is set for Thursday, Aug. 26.
Following a rash of lung injuries related to counterfeit vaping devices, the CDC urged the public to avoid THC-containing vapes, especially those purchased from unreliable online retailers. For more information, consult the CDC’s E-Cig FAQ.
Homeland Security Investigations and the Food & Drug Administration’s Office of Criminal Investigations conducted the investigation with the assistance of Customs & Border Protection. Assistant U.S. Attorney Phelesa Guy prosecuted the case alongside Trial Attorneys Patrick Runkle and Speare Hodges of the Justice Department’s Consumer Protection Branch.
Law Firms Representing Purdue Pharma Agree to Relinquish $1 Million in Settlement with U.S. Trustee ProgramRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a settlement with three law firms representing Purdue Pharma (Purdue) in its ongoing bankruptcy cases. The firms are Skadden, Arps, Slate, Meagher & Flom LLP; Wilmer Cutler Pickering Hale and Dorr LLP; and Dechert LLP (the Firms).
The settlement, which is subject to approval by the Bankruptcy Court for the Southern District of New York, resolves the USTP’s concerns about the adequacy of the Firms’ disclosures in the Purdue bankruptcy cases. Under the settlement, the Firms, collectively, will relinquish $1 million in fees earned in the cases and are required to supplement their prior disclosures so that the court and other parties can make a determination as to their sufficiency.
According to the USTP, the Firms failed to adequately disclose a Joint Defense and Common Interest Agreement (the Agreement) between Purdue and the Sackler families that created obligations for the Firms to the Sacklers related to the defense against hundreds of lawsuits involving potentially billions of dollars of liability related to the manufacture, sale, and distribution of the prescription pain medication OxyContin. During the course of the bankruptcy cases, Purdue invoked the Agreement to avoid turning over documents to the official committee of unsecured creditors as it conducted its review of the debtors’ conduct.
“These disclosure violations are particularly concerning because a central question in these cases has been the independence of Purdue from the Sackler families,” said USTP Director Cliff White. “This agreement reflects the USTP’s ongoing efforts to police law firms and other bankruptcy professionals who fail to disclose connections that may raise questions about their ability to perform their duties free of conflicts of interest.”
Due to the multiplicity of interests in a bankruptcy case, the Bankruptcy Code and Bankruptcy Rule 2014 mandate that law firms and other professional firms disclose their connections to other parties in a case. The USTP reviews applications to employ firms that seek payment from a chapter 11 bankruptcy estate under sections 327 and 1103 of the Bankruptcy Code and advocates for strict compliance with the law to ensure that the interests of all stakeholders are protected. Where there has been a failure to disclose a connection in an application, even when inadvertent, the bankruptcy court may remedy the failure to disclose by, among other remedies, requiring all or part of the fees earned by counsel to be disgorged. In this settlement, the parties have agreed to disgorgement.
The USTP’s work on this matter has been handled by U.S. Trustee William Harrington, Assistant U.S. Trustee Linda Riffkin, Associate General Counsel for Chapter 11 Practice Nan Eitel, and Trial Attorney Paul Schwartzberg.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Las Vegas Woman Sentenced for Unemployment Benefits SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman was sentenced today to 12 months and a day in federal prison for fraudulently applying for and receiving nearly $23,000 in unemployment benefits debit cards, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region.
According to court documents, Deandra Michelle Smith, 36, used another person’s personal identification information — without that person’s consent — and fraudulently applied for unemployment insurance benefits with the Nevada Department of Employment, Training and Rehabilitation (DETR). Around February 2017, Smith falsely claimed that the victim had been laid off, when in fact the victim was employed. Smith also listed her own address on the benefits application, so she would receive the benefits debit card issued by DETR. In carrying out her fraudulent scheme, Smith used the same victim’s personal information to renew the unemployment claim several times. Between March 2017 and August 2018, Smith used the DETR-issued unemployment benefits debit cards in multiple states, including Nevada, California, Texas, and Hawaii. In total, Smith fraudulently received $22,490 from DETR.
Smith pleaded guilty in November 2020 to one count of mail fraud. In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon sentenced Smith to three years of supervised release.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Judges sentences St. Louis man to nearly 20 years for brandishing firearms and armed robberiesRead the Press Release
ST. LOUIS – United States District Judge Ronnie L. White sentenced Lonzo Patrick to 228 months in prison today. The 56-year-old St. Louis, Missouri resident pleaded guilty, in September 2019, to three counts of robbery and two counts of brandishing a firearm in furtherance of a crime of violence in connection with the armed store robberies committed in October 2017.
During the evening of October 21, 2017, Patrick entered the O’Reilly Auto Parts located in the 1100 block of N. Kingshighway. After inquiring about purchasing items, Patrick pointed a firearm at the store clerk and instructed the clerk to open the cash register. Patrick took money from the register drawer.
During the evening of October 25, 2017, Patrick entered the Phillips 66 located in the 4200 block of Lindell Boulevard. He approached the store clerk in order to purchase an item. When the cash register drawer opened, Patrick reached over the counter to remove money from the drawer. When the clerk attempted to close the register drawer, Patrick pulled a firearm and pointed it at the clerk. Patrick then took money from the register drawer.
During the afternoon of October 30, 2017, Patrick entered the Walgreens store located in the 2900 block of S. Kingshighway. Patrick approached the counter to purchase some candy. During the transaction, Patrick pulled a firearm and pointed it at the store clerk. The clerk ran from behind the counter, and Patrick took money from the cash register.
The Federal Bureau of Investigation and the St. Louis Metropolitan Police Department investigated the case. Assistant United States Attorney John Bird is handling the case.
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Jackson Man Pleads Guilty under Project EJECT to Being a Felon in Possession of a FirearmRead the Press Release
Jackson, Mississippi – A Jackson man pleaded guilty today to being a felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Ledrick Simmons, 38, had been charged in Madison, Mississippi, for felony fleeing law enforcement. On January 29, 2020, Madison Police Officers obtained an arrest warrant for Simmons. Officers were able to locate Simmons, in a vehicle, at the intersection of President and Amite Street, in downtown Jackson. When officers approached Simmons, he attempted to evade arrest and rammed another vehicle with his car. Officers recovered a handgun from Simmons’s waistband during the arrest. At the time of the arrest, Simmons was a convicted felon and has multiple felony convictions in Hinds County.
Simmons pleaded guilty to being a felon in possession of a firearm. He is scheduled to be sentenced on July 22, 2021, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jackson Police Department, the Madison Police Department, the Mississippi Bureau of Investigations and the United States Marshal Service are investigating the case.
Assistant U.S. Attorney Chris Wansley is prosecuting the case.
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.
Inmate Gets More Than 15 Years Tacked onto Sentence for Attacking BOP EmployeeRead the Press Release
A prison inmate has been sentenced to more than 15 additional years in federal prison for attacking a Bureau of Prisons employee, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following a two-day trial in January, a jury found 44-year-old William Lee Terrell guilty of assault of a federal officer resulting in bodily injury. He was sentenced today to 188 months’ imprisonment by U.S. District Judge James Wesley Hendrix.
According to evidence presented at the trial, Mr. Terrell was convicted in 2010 of bank robbery and ordered to serve his 235-month sentence at FCI Big Spring. On March 23, 2019, Mr. Terrell, who was on suicide watch, was placed under the observation of Human Resource Specialist Krista Coccozza.
As HR Specialist Coccozza attempted to retrieve trash from a meal he had just eaten, Mr. Terrell reached through the food slot in the door, grabbing Specialist Coccozza. He struggled with her, attempting to free the keys to the cell attached to her belt.
Additional guards responded to Coccozza’s calls for help and they were able to free the keys from Terrell and secure his cell.
Specialist Coccozza suffered a bruised lung, bruised ribs, sprained wrist, sprained elbow, sprained fingers, skin abrasions, pain, and redness on her body, and was unable to return to work for a period of time due to her injuries.
Per the Court, Mr. Terrell will serve the 188-month sentence handed down today consecutive to the 235 month sentence he received in the bank robbery case for a total of 423 months, or a little over 35 years.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Stephen Rancourt are prosecuting the case. U.S. District Judge James Wesley Hendrix presided over the trial.
Individual Indicted for Price GougingRead the Press Release
SAN JUAN, Puerto Rico – The United States Attorney’s Office, District of Puerto Rico filed an Information charging Tonatiuh Antonio Leal-Matos with two counts of violating the Defense Production Act (50 U.S.C. § 4512) in relation to price gouging personal protective equipment (“PPE”), face masks and disinfecting wipes, during the COVID-19 national public health emergency, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation.
According to the Government’s allegations, from approximately April to July 2020, Tonatiuh Antonio Leal-Matos sold PPE face masks and disinfecting wipes at a substantial markup and at prices in excess of the prevailing market price. Leal-Matos operated the online Facebook profiles “Pide Que Hay”, “COVID Plaza”, “Miami Collection PR”, and “Club Gafas” which were used to advertise and sell PPE. The defendant accumulated over 5,000 face masks that covered the user’s nose and mouth. Some of the face masks that the defendant accumulated offered protection from particulate materials at an N95 filtration efficiency level while others did not. The defendant sold the masks that he acquired for between $10 and $35 per mask; these sales prices were at least two times his acquisition cost.
Tonatiuh Antonio Leal-Matos also sold most of the clinical grade disinfecting wipes he accumulated in several transactions. The defendant purchased containers of clinical grade disinfecting wipes for $6.95 per container and subsequently sold those disinfecting wipes for approximately $39 per container, at an approximately 461% markup. The manufacturer’s price for each container was approximately $6.75 to $8.45.
“The defendant knew that the price he charged for face masks and disinfecting wipes exceeded prevailing market prices. He saw the devastating COVID-19 pandemic as an opportunity to make illegal profits on needed PPEs,” said U.S. Attorney Muldrow. “Federal and State law enforcement authorities will continue to intervene whenever profiteers and scammers break the law by capitalizing on the public’s fear to enrich themselves.”
Assistant U.S. Attorney Marie Christine Amy of the Financial Fraud and Corruption Unit is in charge of the prosecution of the case. If convicted of both counts, the defendant faces up to two (2) years of imprisonment and a fine of up to $20,000.
The U.S. Department of Justice created the COVID-19 Hoarding and Price Gouging Task Force, led by Rachael A. Honig, Acting U.S. Attorney for the District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on CARES Act fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/cares-act-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Huntington Man Pleads Guilty to Federal Methamphetamine ChargeRead the Press Release
CHARLESTON, W.Va. – A Huntington man pleaded guilty today to a federal methamphetamine charge.
According to court documents, Deshawn Derese Nelson, 51, admitted that he possessed more than 18 grams of methamphetamine and a small amount of fentanyl on December 26, 2018 on Broadway Avenue in Parkersburg. Officers with the Parkersburg Police Department stopped Nelson for speeding and found the drugs hidden in the leg of his pants when they arrested him for a capias issued by the Cabell County Circuit Court.
Nelson pleaded guilty to possession with intent to distribute methamphetamine and faces up to 20 years in prison when he is sentenced on August 11, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Narcotics Task Force and the Parkersburg Police Department. Assistant United States Attorney Joshua C. Hanks is prosecuting the case.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-0062.
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Heroin Dealer Who Caused the Death of a Young Woman Convicted After Three-Day TrialRead the Press Release
A Chicago man who distributed heroin to a person who died from using it, was convicted by a jury today, after a three-day trial in federal court in Cedar Rapids.
Eric DeAngelo Griggs, age 40, from Chicago, Illinois, was convicted of one count of distribution of heroin that resulted in the death of a young Cedar Falls woman on August 31, 2018, one count of using Facebook Messenger to facilitate the heroin distribution, and one count of using a cellular telephone to facilitate another heroin distribution on September 1, 2018. Griggs was found not guilty of possession with intent to distribute heroin for heroin seized from a vehicle in which he was traveling on September 1, 2018. The verdict was returned today following about nine hours of jury deliberations.
The evidence at trial showed that Griggs was a source of supply of heroin for some individuals in Waterloo, Iowa, area during the summer of 2018. On August 31, 2018, Griggs arranged to distribute $100 worth of heroin to a young Cedar Falls woman via Facebook messenger. She subsequently returned to a residence in Cedar Falls, used the heroin, and then died of acute heroin intoxication. Within a few hours after her body was found, officers were able to text Griggs using her phone to set up another heroin transaction. Griggs came to the location agreed upon with the undercover officer and was identified as the same person who had communicated with the young woman the day before.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Griggs remains in custody of the United States Marshal pending sentencing. Griggs faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, and three years of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and Special Assistant United States Attorney Dillan Edwards and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Waterloo Police Department, the Cedar Falls Police Department, the Tri-County Drug Task Force, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-02062.
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Hendersonville Man Is Sentenced to 22 Years for the Sexual Exploitation of A ChildRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Jeffrey Allen Buley, 58, of Hendersonville, N.C., to 22 years in prison for the sexual exploitation of a child, announced Acting U.S. Attorney William T. Stetzer. Judge Reidinger also ordered Buley to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $7,602.23 as restitution to his victim.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief C. Blair Myhand of the Hendersonville Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, law enforcement learned that Buley was using the Discord messaging app to communicate with a minor male. Court records show that the communications were sexual in nature, and, on at least one occasion, Buley instructed the minor to transmit live video of himself engaging in sexually explicit conduct. On July 30, 2019, HSI agents executed a search warrant at Buley’s residence, seizing Buley’s cell phone and other electronic devices. A forensic analysis of the devices revealed that Buley used the internet to distribute and receive child pornography and to engage in sexually explicit online chats concerning minors. On June 22, 2020, Buley pleaded guilty to sexual exploitation of a child.
Buley is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
In making todays’ announcement, Acting U.S. Attorney Stetzer thanked HSI and the Hendersonville Police Department for their investigation of the case.
The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
Hartford Man Sentenced to 9 Years in Federal Prison for Violent RobberiesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ISAIAH HALLIDAY, 21, of Hartford, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 108 months of imprisonment, followed by three years of supervised release, for committing violent robberies that victimized several individuals who sought to purchase items over mobile classifieds web apps.
According to court documents and statements made in court, between September and November 2017, Halliday and others committed several robberies in Hartford during they lured would-be customers with real or nonexistent items posted to mobile classifieds web apps, such as Offer Up, Letgo and Craigslist, through the use of a fake account. Upon arrival, the customers were robbed of money and cell phones. On each occasion, Halliday threatened the victims with a handgun or what appeared to be a handgun.
On November 11, 2017, Hartford Police officers responded to a location on Blue Hills Avenue in response to a report of a male suffering from a gunshot wound. Upon arrival, the victim stated that he had traveled to Mansfield Street in Hartford to meet with an individual he contacted on Offer Up to purchase an iPhone. When he arrived, Halliday approached the front passenger door of his vehicle and pointed a black handgun at him. After the victim attempted to drive away, Halliday fired one round at him, striking him in the right forearm.
Also, in September 2017, three victims were shot at as they fled the scene of a robbery. During a robbery in October 2017, Halliday put a gun, or what appeared to be a gun, to a victim’s chest and demanded the victim’s money and cell phone.
Halliday has been detained since his arrest on November 17, 2017. On February 16, 2021, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Hartford Man Pleads Guilty to Drug Distribution and Gun Possession OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KENDALL JONES, also known as “Wolf,” 32, of Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, in September and October 2020, the Drug Enforcement Administration’s Hartford Task Force, along with state and local law enforcement officers, conducted an operation in response to a recent spike in drug-related violence in Hartford’s North End. Jones was identified during the operation as an active drug seller.
On October 7, 2020, investigators sought to arrest Jones on a state arrest warrant and observed him at a gas station on Albany Avenue in Hartford engaging in what appeared to be drug transactions. As task force officers approached Jones, Jones ran and discarded a black leather shoulder bag. Jones was apprehended after a short chase. A search of Jones’ person revealed approximately eight grams of crack cocaine and a quantity of marijuana, and the discarded shoulder bag contained a loaded .22 caliber Ruger semiautomatic handgun.
The handgun has been reported stolen in North Carolina in July 2020.
Jones’ criminal history includes state convictions for drug, firearm, robbery and larceny offenses.
Jones pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years.
Judge Thompson scheduled sentencing for July 22, 2021.
Jones, who was released on bond in this federal case, was arrested on state narcotics charges on April 9, 2021, after he was again observed making drug sales in Hartford. He has been detained since his arrest.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Gunfight over fake meth deal sends Billings man to prison for 10 years on trafficking, firearms crimesRead the Press Release
BILLINGS – A Billings man who admitted to drug trafficking crimes after a fake methamphetamine deal led to a gunfight at the seller’s residence was sentenced today to 10 years in prison and to three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
James Armstrong Higgins, 41, pleaded guilty on Oct. 29, 2020 to conspiracy to possess with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on June 3, 2019, co-defendant Gregg Johnson introduced Higgins to a man in a Billings Walmart parking lot. Higgins paid the man $3,000 for a package wrapped in black plastic, which the seller said was meth. Everyone went their separate ways. Instead of meth, the seller had provided Higgins with a brick of rock salt.
When Higgins realized he had been cheated, he, a friend and Johnson went to the seller’s house to recover the money. Higgins, Johnson and the friend all were carrying firearms. No one answered when they pounded on the door. Higgins’ friend went to a rear door and as he began to enter, the shooting started. The friend and Johnson both fired their weapons. Several people were shot and wounded. There was no evidence Higgins brandished or fired his gun. Johnson was sentenced to seven years and 10 months in prison for conviction in the case.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. Through these initiatives, 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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Grovetown, Ga., man sentenced to federal prison for possession of child pornographyRead the Press Release
AUGUSTA, GA: A Grovetown, Ga., man has been sentenced to nearly six years in federal prison after admitting to possession of child pornography.
Johnathan Malone, 23, of Grovetown, was sentenced to 68 months in prison by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to one count of Possession of Child Pornography, said Acting U.S. Attorney David H. Estes. He also was ordered to pay a total of $21,000 in restitution to victims in the case. After completion of his prison sentence, Malone will be required to serve 25 years of supervised release, and register as a sex offender.
There is no parole in the federal system.
“Protection of our most vulnerable citizens is essential for a safe and secure society,” said Acting U.S. Attorney Estes. “Our law enforcement partners perform outstanding work in monitoring cyber networks to protect children from exploitation – and hold accountable those who do them harm.”
As described in court documents and testimony, the Georgia Bureau of Investigation (GBI) received information from the National Center for Missing and Exploited Children that led to the execution of several search warrants. Agents found hundreds of images and videos of child pornography on devices belonging to Malone.
“The GBI will continue to work tirelessly to protect innocent child victims of online exploitation,” said GBI Director Vic Reynolds. “We are grateful for the relationships we maintain with our federal partner agencies to bring these offenders to justice.”
The cases were investigated by the GBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara Lyons.
Georgia Man Charged with Sending Anonymized Emails Threatening Violence Against Executive Officer of New Jersey CompanyRead the Press Release
NEWARK, N.J. – A Georgia man was arrested today on charges that he made interstate threats to an executive officer of a New Jersey based company, Acting U.S. Attorney Rachael A. Honig announced.
Alan Wallace, 58, of Cumming, Georgia, is charged by criminal complaint with two counts of making interstate threats. He is scheduled to appear today before U.S. Magistrate Judge Russell G. Vineyard in Atlanta federal court.
According to the complaint:
From January 2021 to March 2021, Wallace, a former employee of Company-1, sent threatening email communications to Victim-1, an executive officer of Company-1, a publicly traded company with headquarters in New Jersey. Victim-1’s Company-1 email account received the emails every few days beginning on Jan. 11, 2021, and continuing through early March 2021, with more sporadic emails arriving thereafter. The emails were sent to Victim-1 from an anonymous email service.
The emails threatened violence to Victim-1 and to Victim-1’s family if Company-1’s stock did not exceed a certain share value within 30 days. The threats contained ominous subject lines such as, “Gun or Knife,” “Blood Bath,” and “You about sealed your family’s fate,” and content consistent with those subject lines. For example, an email received on Jan. 31, 2021, read: “[Victim-1] - you are about to lose family due to your actions hurting others and inaction to elevate the stock price. Weep and remember.”
The counts of making interstate threats each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greater.
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 Special Agent in Charge Chris Hacker in Atlanta, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys David W. Feder and Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is are considered innocent unless and until proven guilty.
Gary Man Convicted of Conspiracy to Distribute HeroinRead the Press Release
HAMMOND- Lamont Coleman, age 39, of Gary, Indiana, was convicted after a jury trial in the Hammond District Court of conspiracy to distribute heroin, possession with intent to distribute heroin, and possessing a firearm as a felon, announced Acting United States Attorney Bell.
U.S. District Court Judge Jon E. DeGuilio presided over this three-day jury trial.
The evidence at trial showed that from November 2017 and continuing into 2018, Coleman conspired with other individuals in Gary, Indiana, to distribute heroin from a property owned by him in the 4100 block of Madison Street in Gary. On August 28, 2018, law enforcement executed search warrants on multiple properties associated with Coleman and recovered heroin, three firearms including a loaded firearm under the mattress of Coleman’s bed, and approximately $20,000 in cash.
According to documents in the case, Coleman has a prior felony conviction for possession of a controlled substance in 2012 in the Circuit Court of Cook County, Illinois.
Four other members of the conspiracy have been convicted of conspiracy to distribute heroin in this case.
Coleman’s sentencing is set for August 12, 2021.
This case was investigated by the Drug Enforcement Administration and the Porter County Drug Task Force. This case was prosecuted by Assistant United States Attorneys Jennifer Chang and Molly Kelley.
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Fresno Woman Who Managed Her Husband’s Orthodontics Practice Charged with Tax and other Financial CrimesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Pilar Rose, 58, of Fresno, charging her with tax evasion, obstructing an IRS tax audit, bank fraud, and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rose, who managed her husband’s orthodontics practice, evaded over $400,000 in taxes in 2014 and 2015. She then altered and produced financial records to the IRS during an audit to make personal expenses appear to be deductible business expenses.
In addition, Pilar Rose committed bank fraud by submitting false financial information to obtain a $1.4 million home refinance and a loan for a BMW. She committed aggravated identity theft by using an acquaintance’s Social Security number for the latter loan.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted of evading taxes, Rose faces a maximum penalty of five years in prison and a fine of up to $250,000. If convicted of obstructing an IRS audit, she faces a maximum penalty of three years in prison and a fine of up to $250,000. If convicted of bank fraud, she faces a maximum penalty of 30 years in prison and a fine of up to $1 million. If convicted of aggravated identity theft, she faces a penalty of two years in prison consecutive to any other sentence she may receive and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Youth Director at Fort Leonard Wood Pleads Guilty to Child Sexual AbuseRead the Press Release
SPRINGFIELD, Mo. – A former soldier in the Army National Guard pleaded guilty in federal court today to sexually abusing four minors over several years while he was director of the youth ministry at Fort Leonard Wood U.S. Army Base.
David J. McKay, 42, of Waynesville, Missouri, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of transporting a minor to engage in criminal sexual activity and four counts of sexually abusing a minor.
McKay, at the time an Army National Guard First Sergeant, was the youth ministry director for the Religious Services Office at Fort Leonard Wood. McKay is not currently serving as a member of the National Guard. By pleading guilty today, McKay admitted that he sexually abused four victims, ranging in age from 11 to 17 years old, on dozens of occasions from 2010 to 2017.
According to today’s plea agreement, the sexual abuse occurred at Fort Leonard Wood and various other locations within Pulaski County, Mo. The victims also reported being abused during the youth group’s ski trips to Colorado and on camping trips at Fort Leonard Wood.
Under federal statutes, McKay is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the U.S. Army Criminal Investigation Command at the Fort Leonard Wood Army Base, the Pulaski County, Mo., Prosecutor’s Office, and the Waynesville, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former West Virginia Law Enforcement Officer Charged with Federal Civil Rights OffenseRead the Press Release
A federal grand jury in West Virginia returned an indictment Tuesday charging a former West Virginia police officer with a civil rights offense against an arrestee.
According to court documents, Everett Maynard, 44, was indicted Tuesday by a federal grand jury in Charleston for using excessive force against an arrestee while Maynard was a police officer with the Logan, West Virginia, Police Department.
The indictment charges Maynard with one count of deprivation of rights under color of law. The indictment alleges that Maynard used unreasonable force when he assaulted arrestee R.W., resulting in bodily injury to R.W.
The count carries a maximum penalty of 10 years of imprisonment.
Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Lisa G. Johnston for the Southern District of West Virginia; and Acting Special Agent in Charge Carlton Peeples of the FBI Pittsburgh Field Office made the announcement.
This case was investigated by the Charleston Resident Agency of the FBI Pittsburgh Field Office with the support of the West Virginia State Police and is being prosecuted by Trial Attorney Kathryn E. Gilbert of the Civil Rights Division and Assistant U.S. Attorney Nowles Heinrich.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Shreveport Police Department Officer Indicted for Assaulting an ArresteeRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook, Principal Deputy Assistant Attorney General Pamela S. Karlan of the Department of Justice’s Civil Rights Division, and FBI New Orleans Acting Special Agent in Charge Daniel R. Genck, announced that a federal grand jury in Shreveport has returned an indictment charging former Shreveport Police Department officer Dylan Hudson, 34, of Shreveport, with assaulting an arrestee in Caddo Parish. The indictment charges Hudson with willfully depriving an individual of his right to be free from the use of unreasonable force during an arrest.
The indictment alleges that on August 5, 2019, Hudson, while acting in his official capacity as an officer of the Shreveport Police Department, used unreasonable force against an arrestee by punching him in the face and head, kneeing him in the stomach, tasing him in the neck and head, pistol-whipping him in the head, slamming his head into the ground, and kicking him in the face. The indictment further alleges that Hudson’s assault caused bodily injury to the arrestee, and that the assault involved the use of dangerous weapons (a Taser, a pistol, and a shod foot).
Hudson made his initial appearance in the Western District of Louisiana today and entered a plea of not guilty to the charge.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
If convicted, Hudson faces a maximum sentence of 10 years in prison, three years of supervised release, and a fine of up to $250,000.
The case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Mary J. Mudrick and DOJ Civil Rights Trial Attorney Thomas Johnson.
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Former School Bus Driver from Oswego Arrested for Sexual Exploitation of a ChildRead the Press Release
SYRACUSE, NEW YORK – Frederick J. Haresign, age 61, of Oswego, New York, was arrested today on a federal criminal complaint charging him with sexual exploitation of a child, announced Acting United States Attorney Antoinette T. Bacon, and Kevin Kelly, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
The criminal complaint alleges that in or about 2017 Haresign, a school bus driver, provided a minor child who rode on Haresign’s bus with nicotine, cash, and other gifts in exchange for the child taking sexually explicit self-images and videos and providing those to Haresign. The company that employed Haresign removed him from active service as a driver upon receiving notice of the investigation and has now terminated his employment.
The charge against Haresign carries a minimum sentence of 15 and a maximum sentence of 30 years in prison, a fine of up to $250,000, a term of supervised release of at least five years and up to life, and registration as a sex offender. A defendant’s sentence is imposed by a Judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Haresign appeared before United States Magistrate Judge Miroslav Lovric for an initial appearance today and was detained pending further proceedings. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty
Individuals who believe they have information relevant to this investigation should contact the New York State Police at 315-366-6000 (Inv. Lazarek).
Haresign’s case is being investigated by the Department of Homeland Security Investigations (HSI), and by the New York State Police: Fulton Bureau of Criminal Investigation, and Troop D Computer Crimes Unit. It is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian in coordination with Oswego County District Attorney Gregory Oakes as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to 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 https://www.justice.gov/psc.
Former Sacramento Resident Sentenced to over 3 Years in Prison for Identity Theft Involving a Rancho Cordova Veterinary ClinicRead the Press Release
SACRAMENTO, Calif. — Rose Marie Segale, 42, of San Jose, formerly of Sacramento, was sentenced today to three years and nine months in prison for access device fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Segale used her employment at a veterinary clinic and her pet‑sitting work to obtain clients’ personal and financial information. She provided that information to Marie Antoinette Alcanter, 49, of Sacramento, who used it to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. One of the credit card numbers that Segale gave to Alcanter belonged to a client who used it to pay for euthanasia and cremation of a dog. Between December 2016 and March 2018, Alcanter obtained over $40,000 worth of items and cash using victims’ identities some of which she provided to Segale.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Miriam R. Hinman and Mira Chernick prosecuted the case.
On Sept. 24, 2020, Alcanter was sentenced to four and a half years in prison.
Former National Guard Member Pleads Guilty to Using the Internet to Commit Sexual Exploitation Offenses While Stationed in QatarRead the Press Release
SACRAMENTO, Calif. — Jaziz Jesahias Cea, 23, formerly of Galt, pleaded guilty today to transportation of child pornography and receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cea used internet communications platforms and social media to commit the offenses. In particular, on May 13, 2018, Cea uploaded to his YouTube channel child pornography videos showing prepubescent girls being abused by adult males. Cea also separately used his Skype account to receive child pornography videos depicting prepubescent minor females being sexually exploited, to share links to such material, and to communicate with others about his interest in sexually exploiting children.
Between September 2017 and July 2018, Cea was a member of the California National Guard serving on active duty with the United States Army in Qatar. He was discharged from the California National Guard on July 23, 2020, under other than honorable conditions.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, the Sacramento Internet Crimes Against Children (ICAC) Task Force, and the Galt Police Department. Assistant U.S. Attorneys Rosanne Rust and Christina McCall are prosecuting the case.
Cea is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on July 22. The two counts to which Cea pleaded guilty carry a mandatory minimum five-year prison sentence, a maximum sentence of 20 years in prison, and a fine of up to $250,000 for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former Louisiana Police Officer Indicted for Assaulting an ArresteeRead the Press Release
A federal grand jury in Shreveport, Louisiana, returned an indictment charging a former Shreveport police officer with assaulting an arrestee in Caddo Parish.
According to court documents, on Aug. 5, 2019, defendant Dylan Hudson, 34, while acting in his official capacity as an officer of the Shreveport Police Department, used unreasonable force against an arrestee by punching him in the face and head, kneeing him in the stomach, tasing him in the neck and head, pistol-whipping him in the head, slamming his head into the ground, and kicking him in the face. The indictment further alleges that Hudson’s assault caused bodily injury to the arrestee, and that the assault involved the use of dangerous weapons (a Taser, a pistol, and a shod foot).
The one-count indictment charges Hudson with willfully depriving an individual of his right to be free from the use of unreasonable force during an arrest.
Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana and FBI New Orleans Special Agent in Charge Daniel R. Genck made the announcement.
If convicted, Hudson faces a maximum sentence of 10 years in prison, three years of supervised release, and a fine of up to $250,000.
The case is being investigated by the FBI New Orleans Field Office and is being prosecuted by Trial Attorney Thomas Johnson of the Civil Rights Division and Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Former Insurance Broker Pleads Guilty to Defrauding Insurance Companies and Individual Investors Out of More Than $1-MillionRead 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 Brian Bartz, 39, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to wire fraud and aggravated identity theft. The charges carry a mandatory minimum term of 2 years imprisonment and a maximum of 22 years imprisonment.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between January 2015, and January 2020, the defendant was employed as an insurance broker at several different life insurance companies, selling and servicing policies and receiving commissions and bonuses for selling such policies. In connection with his employment, Bartz submitted approximately 105 fraudulent policy applications in various individuals’ names without their knowledge, utilizing actual names, social security numbers, and dates of birth. As a result, life insurance policies were issued, and the defendant was paid a total of $382,740.63 in commissions and bonuses he was not entitled to receive. Bartz also used approximately $70,579.83 that he fraudulently withdrew from various bank accounts of unsuspecting clients in order to pay policy premiums on the fraudulent life insurance policies he obtained.
In addition, Bartz defrauded his insurance clients and potential clients by falsely claiming to also be an investment advisor, persuading individuals to invest funds that he never invested nor intended to invest. Rather than investing such funds on behalf of his clients, Bartz used them for himself, by gambling with them or paying back prior investors. To prevent victims from inquiring about their investments, Bartz issued fake account statements. The victims included a widow who “invested” a $332,500 payout from her deceased husband’s life insurance policy with the defendant. Bratz stole all but $10,000 of that widow’s investment.
In total, the loss amount for Bartz’s schemes is approximately $1,026,668.46.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell.
Sentencing is scheduled for July 29, 2021, before Judge Siragusa.
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Former City of Chicago Alderman Charged with Using Money from Political Fund to Pay Personal ExpensesRead the Press Release
CHICAGO — A federal grand jury today indicted former City of Chicago Alderman RICARDO MUNOZ on fraud charges for allegedly using money from a political fund to pay personal expenses.
A 16-count indictment returned in U.S. District Court in Chicago alleges that while serving as Alderman of the 22nd Ward in Chicago, Munoz used money from a political action committee formed by the Chicago Progressive Reform Caucus (CPRC) to pay a relative’s college tuition and other personal expenses, including jewelry, clothing, cell phones, vacations, sports tickets, and airline tickets. Munoz obtained the money through cash withdrawals and debit card charges from the CPRC’s bank account or by transferring funds from CPRC to another political fund he controlled – Citizens for Munoz (CFM) – and then on to his personal checking account, the indictment states. Munoz attempted to conceal the fraud scheme by making materially false representations to the Illinois State Board of Elections and staff members and contractors of the CPRC, the indictment states.
CPRC was a political organization whose voting membership consisted of certain Aldermen in the Chicago City Council. Munoz, who was a member of the City Council from 1993 to 2019, served as chairman of the CPRC and performed the duties of its treasurer. Public officials were prohibited by law from receiving payments from the CPRC for personal expenditures.
Munoz, 56, of Chicago, is charged with 15 counts of wire fraud and one count of money laundering. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Morris Pasqual and Jared Hasten.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in federal prison, while the money laundering count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Bookkeeper Pleads Guilty in Federal Court to Embezzling More Than $1,000,000 from Charleston Real Estate CompanyRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that Karen Rhett, 58, of Mount Pleasant, pled guilty to federal charges involving the embezzlement of over $1,000,000 from Simmons Realty Company and its owners, while Rhett served as the Charleston real estate company’s bookkeeper.Evidence presented in court showed that, from the mid-1990s, Rhett managed and controlled the finances, payroll, and tax preparation for Simmons Realty and all related entities. During the course of her employment, Rhett engaged in a complex embezzlement scheme – starting by falsifying the business ledgers to move money to her personal accounts and evolving into augmenting her salary, stealing directly from other employee’s paychecks, and stealing from the other Simmons Realty related entities.
According to a review by the Federal Bureau of Investigations (FBI) and the Internal Revenue Service (IRS) of bank records, checks, and other financial documents, including the hard drive Rhett used during the course of her employment, Rhett stole more than $1 million from Simmons Realty Company, its owners, and related entities. On the hard drive, agents recovered detailed spreadsheets Rhett maintained regarding the amount of money she was stealing, where the money came from, and how she falsified the business ledgers.
In addition to the money stolen with the embezzlement scheme, evidence presented showed that Rhett never reported the income on her taxes and failed to pay more than $380,000 in taxes during the course of the scheme.
Rhett faces a statutory maximum of 20 years in prison on the charges and potential financial penalties. With the guilty plea, Rhett has also agreed to forfeit over $640,000.
The case was investigated by the FBI and the IRS. Assistant United States Attorney Emily Limehouse is prosecuting the case.
Federal Search Warrant Executed in Treynor, IowaRead the Press Release
COUNCIL BLUFFS, Iowa – On Thursday, April 29, 2021, a federal search warrant was executed at a home on the 100 block of Ehrig Avenue in Treynor, Iowa. The search at this residence was an official law enforcement action involving agents from the Federal Bureau of Investigation. The U.S. Attorney’s Office and the Federal Bureau of Investigation are unaware of any safety risk to the public.
This is an ongoing investigation and no other information will be released at this time.
Federal Judge Sentences Suburban Chicago Man to Nine Years in Prison for Illegally Possessing Numerous FirearmsRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to nine years in federal prison for illegally possessing a semi-automatic rifle and numerous semi-automatic handguns.
MARIO PRADO, 28, illegally possessed the firearms on Feb. 14, 2019, in his residence in South Elgin, Ill. Law enforcement on that date conducted a court-authorized search of the residence and discovered the rifle and eight handguns. Prado had previously been convicted of a felony firearm offense in the Circuit Court of Kane County and was not legally allowed to possess a firearm.
Prado pleaded guilty on Nov. 20, 2020, to a federal charge of illegal possession of a firearm by a convicted felon. U.S. District Judge Sharon Johnson Coleman imposed the nine-year sentence Monday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Brendan F. Kelly, Director of the Illinois State Police. The government was represented by Special Assistant U.S. Attorney Niranjan Emani.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Charges Brought Against Four Madera Men for Trafficking Fentanyl and MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury indicted three Madera residents today, charging Emilio Hernandez Yesca, 27; Jorge Perez, 24; and Jorge Luis Hernandez Gonzalez, 30, with trafficking fentanyl and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
An associate of the trafficking ring, Eli Quiroz Hernandez, 26, also of Madera, was indicted in a related case on April 1.
According to court documents, the charges arose out of a months-long investigation into a drug trafficking organization. At the center of the organization were Hernandez and Perez. Between October 2020 and March 2021, the two conspired to distribute thousands of fentanyl pills and pounds of methamphetamine. As part of their plan, they sold 1,400 fentanyl pills in two separate drug deals in October and November 2020. Then, in February 2021, they sold a pound of methamphetamine. On March 2, law enforcement stopped the drug-dealing partners in a vehicle on their way to deliver 5,000 fentanyl pills and 3 pounds of methamphetamine. A loaded firearm was found under the driver’s seat of the car. The two other defendants are charged with selling methamphetamine: Eli Quiroz Hernandez sold a quarter pound of methamphetamine on December 10, 2020, and Jorge Gonzalez distributed a pound of methamphetamine in February 2021.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Madera County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Chowchilla Police Department, the Madera Police Department, and the Madera Narcotics Enforcement Team. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted of the charged offenses, Perez, Hernandez and Gonzalez each face a statutory mandatory minimum penalty of 10 years in prison up to a maximum of life in prison, and a $10 million fine. Eli Quiroz Hernandez faces a statutory mandatory minimum penalty of five years in prison up to 40 years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 www.justice.gov/OCDETF.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Couple sentenced for laundering over $500,000 on behalf of India-based phone scammersRead the Press Release
ATLANTA – Husband and wife Mehulkumar Manubhai Patel and Chaitali Dave have been sentenced for laundering over $500,000 on behalf of India-based phone scammers.
“International call centers continue to victimize the elderly and most vulnerable members of our community,” said Acting U.S. Attorney Kurt R. Erskine. “The defendants worked with call centers to prey on and steal from these vulnerable victims. This case exists as an example of our commitment to investigating and prosecuting those who facilitate foreign-based scams. Citizens are reminded never to provide money or personal information to callers they don’t know and trust.”
“These convictions should stand as a warning that my office will aggressively investigate and work to hold those accountable who collect and transmit money from Social Security imposter scam victims,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the U.S Attorney’s Office for its leadership in bringing scam perpetrators and facilitators to justice, and our law enforcement partners who provided valuable assistance throughout this investigation.”
“We applaud all of the people who investigated and prosecuted this scam case,” said Andrew Saul, Commissioner of Social Security. “Never provide money or personal information to unknown callers when you receive a suspicious call. Just hang up and then go online to https://oig.ssa.gov/ to report these scams to Social Security.”
“We are duty bound to combat fraud schemes that victimize the public,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “Efforts to purposely target the elderly are particularly heinous. We take great pride in working collaboratively to catch these kinds of offenders.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Criminal India-based call centers defraud U.S. residents, including the elderly, by misleading victims over the telephone utilizing scams such as Social Security and tech support scams.
As part of their Social Security scam, India-based callers posed as federal agents in order to mislead victims into believing their Social Security numbers were involved in crimes. Callers threatened arrest and the loss of the victims’ assets if the victims did not send money. The callers directed victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
As part of the tech support scam, callers induced victims to send money in exchange for supposed technical support for their computers. The callers then provided nothing in return. At times, callers misled the victims into providing remote access to their computers and the callers would access the victims’ bank accounts. The callers routinely misled the victims by making it appear as though the caller added money to the victims’ bank accounts. The callers then instructed the victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
Based on misrepresentations made during the calls, the victims, including Georgia residents, mailed money to a network of individuals that laundered funds on behalf of the overseas fraud network. From on or about May 2019, to on or about January 2020, Patel and Dave laundered over $500,000 sent by dozens of scam victims.
- Chaitali Dave, 36, of Lamar, South Carolina, was sentenced on April 28, 2021, to one year, eight months to be followed by three years of supervised release and ordered to pay $320,550 in restitution.
- Mehulkumar Manubhai Patel, 36, of Lamar, South Carolina, was sentenced on December 1, 2020, to two years, six months, to be followed by two years of supervised release and ordered to pay $259,217 in restitution.
The Social Security Administration - Office of the Inspector General investigated the case with the assistance of the U.S. Secret Service, El Dorado Task Force (New York), Aiken Department of Public Safety (South Carolina), Naperville Police Department (Illinois), Lexington County Sheriff’s Department (South Carolina), Rocky River Police Department (Ohio), Polk County Sheriff’s Office (Florida) and Henrico County Police Division (Virginia).
Special Assistant U.S. Attorney Diane Schulman prosecuted the case. Assistant U.S. Attorney Jolee Porter, the former Elder Justice Coordinator previously prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.gov.
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.
- Chaitali Dave, 36, of Lamar, South Carolina, was sentenced on April 28, 2021, to one year, eight months to be followed by three years of supervised release and ordered to pay $320,550 in restitution.
Couple Indicted for Possessing Machinegun That Was Fired in Front of Police Officer’s Residence in UtuadoRead the Press Release
SAN JUAN, Puerto Rico –A federal grand jury returned an indictment charging Joshua Meléndez-Rivera and Joyce Torres-Vivas with the possession of a machinegun, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation.
According to the Government’s allegations, Joshua Meléndez-Rivera and Joyce Torres-Vivas parked in front of a police officer’s residence in Utuado on April 26, 2020. When the officer asked if they needed anything, the occupants of the car—Meléndez-Rivera and Torres-Vivas—responded angrily and Meléndez-Rivera pointed a gun. After the officer withdrew into her house, shots were fired. Meléndez-Rivera and Torres-Vivas were subsequently detained in the car and a pistol modified to be fully automatic was found inside.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes Section is in charge of the prosecution of the case. If convicted, the defendants face a maximum sentence of ten years in prison.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Correctional officer sentenced for sexual abuse of a ward, accepting bribes and smuggling contraband into the Northeast Ohio Correctional CenterRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Barbara Davis, 47, of Youngstown, Ohio, was sentenced to five months imprisonment and five months of home confinement by U.S. Judge Sara Lioi. Davis, a former Northeast Ohio Correctional Center (NEOCC) correctional officer, pleaded guilty in January of 2021 to sexual abuse of a ward, accepting bribes and providing a cell phone and tobacco to an inmate.
“Exploiting a position of trust by sexually abusing an inmate and receiving bribe payoffs for smuggling contraband into a correction center threatens to undermine the public’s trust in our criminal justice system,” said Acting U.S. Attorney Bridget M. Brennan. “Let this matter be a reminder to the public that anyone who seeks to harm and exploit inmates or detainees can and will be held accountable.”
"This sentence demonstrates those that are criminally responsible are held accountable," said FBI Special Agent in Charge Eric B. Smith "Ms. Davis, a former corrections officer, will now be on the other side of the incarceration bars for her deviant unlawful behavior."
“Davis sexually abused an inmate and accepted bribes for smuggling contraband into a federal prison. Today’s sentencing shows that when correctional officers abuse their authority, the Department of Justice Office of the Inspector General will ensure they are held accountable,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Chicago Field Office.
According to court documents, from on or about November 13, 2017, to November 7, 2018, Davis engaged in sexual conduct with an inmate at the NEOCC. During this same time, Davis smuggled contraband, specifically a cell phone and tobacco, to the inmate at the NEOCC. In return, Davis received payments made from other parties through a mobile payment application.
This investigation was conducted by the Cleveland Federal Bureau of Investigation and Department of Justice, Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
Convicted Felon and Gang Member Plead Guilty in Firearm CasesRead the Press Release
COLUMBUS, Ga. – Two convicted felons with lengthy criminal histories, one of whom is a validated gang member, pleaded guilty in separate illegal possession of firearms cases, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Jermichael Bellamy, 28, of Columbus, pleaded guilty to one count possession of a firearm by a convicted felon before U.S. District Judge Clay Land today. On Monday, April 26, Maurice Toney, 47, of Columbus, pleaded guilty to one count possession of a firearm by a convicted felon. Both defendants face a maximum sentence of ten years in prison and a $250,000 fine. There is no parole in the federal system.
“Repeat violent criminals and gang members who disregard federal law by illegally possessing firearms will face federal prosecution,” said Acting U.S. Attorney Peter D. Leary. “Our office is working closely with our law enforcement partners to apprehend the most egregious offenders creating havoc in the Columbus community and bring them to justice.”
“Gang members like Bellamy continue to plague our communities even after being charged and convicted of serious crimes,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That’s why federal law provides for serious prison time for criminals who refuse to learn from their mistakes and continue to possess firearms and endanger others. And that’s why we continue to work with our state and local partners to make sure these criminals get the stiffest sentences.”
“Convicted felons who traffic firearms pose a serious risk to public safety,” said John Schmidt, Assistant Special Agent in Charge of ATF’s Atlanta Field Division. “ATF will continue to aggressively pursue those individuals who have little regard for the law. The federal prosecution of these crimes demonstrates ATF’s dedication to working with the U.S. Attorney’s Office, to ensure violent individuals like Toney are deprived of the ability to terrorize our community.”
“I am pleased to see the successful prosecution of these violent repeat offenders. As we continue to work with our federal partners, I look forward to seeing these types of cases even more,” said Freddie Blackmon, Police Chief of the Columbus Police Department.
According to court documents, Bellamy was arrested on outstanding warrants on October 15, 2020. Inside Bellamy’s vehicle, law enforcement located a loaded pistol and four loaded magazines, as well as cocaine and a digital scale. Investigators also found poster boards with “ABG,” “852” and gorilla images drawn on them. Bellamy was also wearing a “852” necklace and a “852” tattoo. Bellamy is a member of local hybrid gangs Alleyboy Gang and 852. Bellamy is also a validated member of the Gangster Disciples. Bellamy has prior convictions of possession of a firearm during the commission of a crime, gang act violation and aggravated assault in the Superior Court of Muscogee County, Georgia.
Toney was under investigation by ATF in August and September 2020 for trafficking firearms and methamphetamine in the Columbus area. In a recorded controlled buy operation, Toney sold methamphetamine and three firearms to a confidential informant (CI). The firearms were a 20-guage pump-action shotgun, a .38SPL revolver and a semi-automatic rile with one magazine and fifteen rounds of ammunition. Toney was previously convicted of multiple felonies in the Superior Court of Muscogee County, Georgia and the Chattahoochee Judicial Circuit, including two separate convictions of possession of a firearm by a convicted felon.
The Bellamy case was investigated by FBI and the Columbus Police Department.
The Toney case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Christopher Williams is prosecuting both cases.