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29 April 2021
Convicted Felon Pleads Guilty to Gun Possession after Drunken Car CrashRead the Press Release
Memphis, TN – Omar Fair, 31, pled guilty to being a felon in possession of a firearm. Acting U.S. Attorney, Joseph C. Murphy, Jr., announced the guilty plea today.
According to the information presented in court, on April 20, 2019, at 3:30 a.m., Memphis Police officers received a "man down" call at Walnut Grove and Humphreys Blvd. The officers and paramedics approached the vehicle and knocked repeatedly on the windows. When Fair awoke, he saw the officers and sped away in the vehicle. As the officers attempted to chase him, Fair struck two other vehicles and crashed in the median.
Again, the officers approached Fair; he got out of the car, smelled of intoxicants and spoke incoherently. The defendant was detained. Law enforcement inventoried his vehicle prior to towing and recovered a Rossi .357 Magnum revolver from the driver's side door. Fair was on probation.
Fair had previously been convicted of aggravated assault, a misdemeanor domestic violence involving physical injury, as well as three prior DUI charges. As a result of his prior convictions, Fair is prohibited by federal law from possessing firearms or ammunition.
Sentencing is scheduled for August 12, 2021, before U.S. District Judge Mark S. Norris, where he faces up to ten years in federal prison to be followed by three years supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods (PSN) Task Force. Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Special Assistant U.S. Attorney Samuel D. Winnig is prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Convicted Camden County Felon Admits Illegally Possessing Eight FirearmsRead the Press Release
CAMDEN, N.J. – A Camden County man today admitted illegally possessing eight firearms, Acting U.S. Attorney Rachael Honig announced.
Kareem McCargo, 38, of Camden, pleaded guilty to a superseding information charging him with one count of being a felon in possession of a firearm before U.S. District Judge Robert B. Kugler in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 31, 2018, Camden County Police officers encountered McCargo as he exited his vehicle. Upon seeing the officers, McCargo fled, but was ultimately apprehended. A search of McCargo’s vehicle revealed eight firearms and over 400 rounds of ammunition. McCargo admitted to knowingly possessing all eight firearms and ammunition. He further admitted that at the time he possessed these firearms, he knew that he was a convicted felon.
The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 8, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai; and the Camden County Police Department, under the direction of Police Chief Gabriel Rodriguez, with the investigation leading to today’s guilty plea. She also thanked the Camden County Prosecutor’s Office and the Drug Enforcement Administration for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Chicago Attorney Charged with False Statement and Tax Offenses in Connection with Funds Received from Failed Chicago BankRead the Press Release
CHICAGO — A Chicago attorney was indicted today on false statement and tax charges in connection with funds he received from Washington Federal Bank for Savings.
PATRICK D. THOMPSON, 51, is charged with five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp., according to an indictment returned in U.S. District in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Tamera Cantu, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; Joseph M. Ferguson, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, Jeremy Daniel, and Nicholas Eichenseer.
According to the charges, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments. He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received, the indictment states. Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans. When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement, when Thompson knew he had actually received $219,000 and that $110,000 of it was paid by the bank to a law firm as Thompson’s capital contribution, the indictment states.
The tax charges accuse Thompson of falsely representing on five years of income taxes that he paid interest on money he received from Washington Federal, even though he knew he did not pay interest in the amounts reported on the returns.
Ten other defendants, including several high-ranking former bank employees, were previously charged as part of the ongoing federal criminal investigation into the failure of Washington Federal.
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 false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Carjacking defendant who fled after bench trial sentenced to more than 12 years in prisonRead the Press Release
DAYTON – A Dayton man was sentenced in U.S. District Court today to 150 months in prison for using a firearm during and in relation to a crime of violence, carjacking and conspiring to commit carjacking.
A. Philip Thomas Christian Daugherty, 26, also known as “Fetty Too Federal,” pleaded guilty to the carjacking crimes but contested the firearm charge. Senior U.S. District Judge Thomas M. Rose found Daugherty guilty of the firearm charge following a bench trial.
Daugherty appeared in court for his final bench trial session on June 17, 2020, and fled from the federal courthouse after having his bond revoked and being told to turn himself in to the United States Marshals.
He was a fugitive for more than four months until he was apprehended in October 2020 in a private residence in Columbus by the U.S. Marshals Service’s special fugitive apprehension team (SOFAST).
According to court documents and trial testimony, Daugherty was one of four co-conspirators convicted federally for taking part in an armed, violent carjacking in Dayton on July 6, 2018.
Daugherty was originally indicted by a grand jury in November 2018 and pleaded guilty to the carjacking crimes prior to his bench trial on the gun charge.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Montgomery County Sheriff Rob Streck announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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California Man Sentenced to 121 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Jim Pham, 36, of Rowland Heights, California, was sentenced to 121 months in federal prison for participating in a conspiracy to distribute, and possess with intent to distribute, methamphetamine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in 2018, Pham met a drug trafficker from New Hampshire via the internet on the dark web. The trafficker purchased shipments of highly-pure methamphetamine from Pham, which he received in New Hampshire via Federal Express and other means. The drugs were distributed throughout New Hampshire and New England and the proceeds were used to purchase additional methamphetamine from Pham. Pham was typically paid by the trafficker using cryptocurrency. During the conspiracy, Pham shipped at least 30 kilograms of methamphetamine to the trafficker in New Hampshire.
“Methamphetamine is a very dangerous drug that is jeopardizing the health and safety of the citizens of New Hampshire,” said Acting U.S. Attorney Farley. “We are committed to working with our law enforcement partners to identify and prosecute the interstate drug traffickers who are shipping methamphetamine to New Hampshire. Methamphetamine traffickers who do business in the Granite State should understand that they will face substantial federal prison terms for their conduct.”
“As methamphetamine seizures are on the rise, DEA stands committed to keeping this highly addictive drug out of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s significant sentence not only holds Mr. Pham accountable for his crimes but serves as a warning to those who attempt to bring this poison to the Granite State.”
This matter was investigated by the Drug Enforcement Administration and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Browning man sentenced to prison for sexual abuse of a minor on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS – A Browning man convicted of sexual abuse of a minor on the Blackfeet Indian Reservation was sentenced on April 28 to 21 months in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said today.
Austin Kade Goings, 23, pleaded guilty on Oct. 13, 2020 to sexual abuse of a minor.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in November 2017, the victim, identified as Jane Doe, who was between the ages of 12 and 16, was driving around with Goings and others on the Blackfeet Indian Reservation. The group was drinking alcohol. At some point, Goings and the victim exited the vehicle and went to an abandoned trailer house. The victim alleged Goings hit her and forced her to have sexual intercourse. The victim reported the sexual assault, was examined and treated. Goings denied using force but admitted to having sexual intercourse with the victim.
Assistant U.S. Attorneys Jeffrey K. Starnes and Cassady Adams prosecuted the case, which was investigated by the Bureau of Indian Affairs and Blackfeet Law Enforcement Services.
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Boston Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Boston man was charged yesterday in federal court in Boston with receipt and possession of child pornography.
Robinson Alberto Baez-Nova, 37, of Jamaica Plain, was charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Following an initial appearance, Baez-Nova was detained pending a detention hearing schedule for May 5, 2021.
According to the charging documents, on Nov. 5, 2020, police received 13 National Center for Missing and Exploited Children CyberTipline reports associated with a Google account and email addresses linked to Baez-Nova. These reports indicated that the Google account uploaded suspected child pornography to Baez-Nova’s Google Photos between Nov. 14, 2018 and Aug. 27, 2020. A subsequent search of Baez-Nova’s cellphone revealed images and videos of child pornography. Specifically, Baez-Nova allegedly received child pornography on a WhatsApp group message on March 14, 2019.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Each charge also provides for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Valuable assistance was provided by the Suffolk County District Attorney’s Office; Nashua Police Department; Hillsborough County (N.H.) District Attorney’s Office; and Homeland Security Investigations in Boston. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Billings man sentenced to prison for meth trafficking, illegal possession of firearmRead the Press Release
BILLINGS – A Billings man convicted of trafficking methamphetamine and illegally possessing a firearm was sentenced today to six years in prison and to four years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Calvin Tyrone Bowens, 40, pleaded guilty on Dec. 9, 2020 to possession with intent to distribute meth and to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on April 7, 2020, Montana State Probation and Parole officers searched Bowens’ residence after law enforcement stopped him earlier and he admitted to possessing a firearm and narcotics at his home. Bowens was on state probation for felony convictions at the time and was prohibited from possessing firearms. During a search of Bowens’ residence, officers found a .45-caliber, semi-automatic pistol, numerous rounds of ammunition and 15 to 20 grams of meth. Bowens admitted in an interview with a federal agent to selling about one pound of meth. The investigation further determined that Bowen met with other known drug dealers in the Billings area. In a subsequent search of his residence, agents found meth and two loaded pistol magazines.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Drug Enforcement Administration and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
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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Arizona Man Arrested and Charged for Sexual Abuse of a Minor During a Flight to AlaskaRead the Press Release
ANCHORAGE – A Mesa, Arizona, man was indicted in Alaska today for abusive sexual contact with a minor female passenger on a flight from Phoenix to Anchorage on April 26.
The indictment alleges that Kepueli Talaiasi, 58, intentionally engaged in sexual contact with a 16-year-old girl who was seated next to him during the evening flight. According to court documents, the girl pushed his hand away several times and tried to move away from him in her seat. The minor, who was travelling with her father, wrote a note to him on her phone about Talaiasi touching her. The father immediately called the flight attendants, who quickly intervened to separate Talaiasi from the girl. Alaska Airport Police met the flight upon arrival at the gate and detained Talaiasi, who was later arrested by the FBI.
If convicted, Talaiasi faces a maximum sentence of up to two years in prison, followed by five years to lifetime supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Anchorage Airport Police and Fire Department conducted the investigation leading to the charges and indictment.
Assistant U.S. Attorneys Karen Vandergaw and James Klugman are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Appeals Court Upholds Conviction of Massachusetts Man Who Obtained Grenades and Weapons as Part of Murder PlotRead the Press Release
CONCORD- The First Circuit Court of Appeals has upheld the conviction of a former resident of Malden, Massachusetts who raised multiple challenges to his conviction for obtaining weapons and grenades as part of a plot to kill his ex-wife’s husband, a federal judge in Boston, and a former Massachusetts Attorney General.
Edward McLarnon, 72, was found guilty by a jury following six-day trial in January of 2018. Evidence presented at trial showed that in October of 2015, McLarnon made contact with a person he believed to be an arms dealer (who was actually an undercover FBI agent) for the purpose of buying illegal weapons. McLarnon negotiated with the undercover agent at a store in Chichester, New Hampshire and paid a total of $700 in cash to obtain the weapons. On November 6, 2015, the defendant took possession of a .22 caliber pistol with a silencer, an AK-47-style semi-automatic rifle, ammunition, and two hand grenades containing high explosives at a rest stop in Seabrook. He was taken into custody shortly after taking possession of these items. The evidence further showed that McLarnon intended to use the weapons to kill his ex-wife's husband, as well as a Boston federal judge, and a former Massachusetts Attorney General.
The First Circuit rejected all of McLarnon’s arguments on appeal and affirmed his conviction. He is serving a 300-month prison sentence.
“This defendant’s dangerous plot could have resulted in multiple deaths,” said Acting U.S. Attorney Farley. “Now that his appeal has been unsuccessful, he will remain incarcerated where he can no longer pose a danger to the community.”
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys John S. Davis and Matthew T. Hunter.
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Albuquerque investment broker indicted for mail and wire fraud, money laundering and failure to file tax returnsRead the Press Release
ALBUQUERQUE, N.M. – Richard Kessler, 49, of Albuquerque, who allegedly stole investment funds from his clients, was arraigned April 28 in federal court on an indictment for mail fraud, wire fraud, money laundering and failure to file tax returns. A federal grand jury indicted Kessler on March 12.
According to the indictment and other court records, Kessler allegedly failed to file federal income tax returns for tax years 2014 through 2017. Kessler operated as a financial advisor and investment broker under the business name Guardian Group Investments, LLC. From on or about Feb. 26, 2016, to Aug. 23, 2016, Kessler allegedly used his position to induce investors into providing him access to investment funds that he diverted to his own benefit and use. Kessler allegedly placed investors’ funds into a business savings account, which is specifically prohibited by New Mexico securities regulations. On several occasions, Kessler moved funds from that account into his personal checking account.
Kessler allegedly fraudulently converted over $123,000 from four victims. Kessler allegedly did not provide the victims with documentation of their investments that would have shown that their money had not been invested as they were told. Kessler allegedly used money from certain victims to pay others to conceal the fraud.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Kessler faces up to 20 years in prison.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Paul Schied is prosecuting the case.
12 Members and Associates of ‘Harlem World/12th Avenue’ Street Gang Charged in Drug Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Twelve people have been charged for their roles as members and associates of “Harlem World/12th Avenue,” a Paterson, New Jersey-based street gang involved in the distribution of drugs, including cocaine base, heroin, and fentanyl, Acting U.S. Attorney Rachael A. Honig announced today.
Michael Booker, 38; Kenron Boyd, 28; Ronald Hammond, 53; Damir Horne-Casper, 28; Marcell Jackson, 26; Roger Jacobs, 25; Damond King, 31; Naquis Martin, 24; Korri Muckle, 40; Troy Taylor, 35; and Shamir Thompson, 26, all of Paterson, New Jersey; and Tahj Smith, 20, of Haledon, New Jersey, are each charged by complaint with one count of conspiracy to distribute heroin, fentanyl and cocaine base.
King, who is already in custody on state charges, is additionally charged by complaint with one count of possession of a firearm by a convicted felon. Booker, Jackson, and Taylor are at large. The remaining eight defendants who were arrested today will appear by videoconference this afternoon before U.S. Magistrate Judge Mark Falk.
According to the documents filed in this case and statements made in court:
The defendants are members and associates of the Harlem World/12th Avenue street gang, which operates primarily around 12th Avenue and East 23rd Street in Paterson. Through numerous controlled purchases of drugs, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, the investigation uncovered evidence that from February 2020 through April 26, 2021, the defendants conspired to distribute heroin, fentanyl, and cocaine base.
Harlem World/12th Ave derives its name from a reference to an area in Paterson on
and around 12th Avenue. An individual is eligible to join Harlem World/ 12th Avenue if he resides within the gang's turf and is willing to participate in street level narcotics sales. Members of the gang distribute decks of heroin that are almost always stamped or labeled with various “brand names” in colored ink to allow dealers and purchasers alike to differentiate and market batches of heroin. For example, on various occasions, glassine envelopes were stamped “Coca Cola,” “Larry Bird,” “Kobe Bryant,” “Paid in Full,” “Best Buy,” and “K.O.,” and have since October 2020 been linked to over 10 fatal overdoses.
The count of conspiracy to distribute at least 28 grams of cocaine base and a quantity of heroin and fentanyl carries a maximum penalty of 40 years in prison and a fine of at least $5 million. The count of possession of a firearm by a convicted felon carries a maximum of 10 years in prison and a fine of $250,000.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; officers of the Paterson Police Department, under the direction of Police Director Jerry Speziale and Police Chief Ibrahim M. Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. She also thanked the U.S. Marshals Service for their assistance with the case.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Special Assistant U.S. Attorney Kendall Randolph of the Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
28 April 2021
Wilkes-Barre Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 27, 2021, Michael Jones, Jr, age 40, of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearms offenses.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that between December 2020 and March 14, 2021, Jones conspired with others to traffic at least 280 grams of crack cocaine and 40 grams of fentanyl. On March 14-15, 2021 Jones also possessed with intent to distribute crack cocaine, fentanyl, and methamphetamine. The indictment also alleges that on March 14-15, 2021, Jones possessed a stolen firearm in furtherance of his drug trafficking activities, and he is a person prohibited from possessing a firearm because of a prior felony conviction.
The case was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police and the Wilkes-Barre Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Virginia Man Pleads Guilty in $2.5 Million Scheme to Steal then Resell Mining EquipmentRead the Press Release
PITTSBURGH, PA - A resident of Beckley, West Virginia, pleaded guilty in federal court to charges related to five thefts of specialized mine equipment that occurred in Indiana and Armstrong Counties, Acting United States Attorney Stephen R. Kaufman announced today.
Eudell Dickerson, 46, pleaded guilty to two counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that five break-ins and thefts occurred in and around February 2017 through May 2017, at mining sites located in the Indiana and Armstrong counties, in the Western District of Pennsylvania. Dickerson admitted, in conjunction with his guilty plea, that he and other individuals, including his co-defendant David Stanley, stole high-value mining equipment, valued in excess of $2.5 million, from these sites and sold it to a company in the business of selling new and/or used mining equipment in Beckley, West Virginia. Special agents, the court was informed, located some of the stolen equipment at the reseller’s facility and also identified trucks operated by Dickerson and Stanley as those involved in the thefts. Dickerson also admitted that he, and other individuals, were involved in additional thefts at mining sites in Virginia and Kentucky.
Judge Hornak scheduled sentencing for Aug. 25, 2021 at 1:30 p.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation of this case.
Warrior Man Indicted for Making a ThreatRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury returned a one-count indictment yesterday charging a Warrior man with engaging in conduct with the intent to convey false and misleading information regarding the use of a weapon of mass destruction, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, Brian Steven Vest, 50, of Warrior, falsely reported that he had placed a bomb by a statue in Birmingham’s Linn Park on June 1, 2020.
If convicted, Vest faces a maximum of five years in prison, and a $250,000 fine.
The FBI, Birmingham Police Department, and Jefferson County District Attorney’s Office worked in partnership investigating the case. Assistant U.S. Attorney Henry Cornelius is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Virginia Attorney Charged with Sex Trafficking Minors and Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging an Arlington man with sex trafficking of minors, production of child pornography, and other commercial sexual exploitation offenses involving young adults.
“The defendant allegedly used his money and power to sexually exploit minors,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We remain steadfast in our commitment to holding accountable those who prey on and victimize children, and to seeking justice for society’s most vulnerable members.”
“Erausquin allegedly exploited and abused underage girls without regard for the impact on his victims,” said Albert Murray III, acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI is committed to stopping and holding accountable anyone who engages in the sexual exploitation of children. Together with our partners on the Child Exploitation and Human Trafficking Task Force, we are dedicated to investigating and bringing federal charges against those who commit these crimes.”
As alleged in court documents, Matthew Erausquin, 46, was a frequent commercial sex customer of six underage girls and three other young adults from June 2017 through at least August 2020. Erausquin met some of the girls on a “sugar daddy” website and a dating app, and in at least one instance pretended to be an 18 or 19-year-old teenager. Erausquin lured the girls into commercial sex arrangements, paying the girls between $500 to $800 each per sexual encounter and offering to pay at least $1,000 for threesome sexual activity. In addition to these payments, Erausquin gave the girls marijuana and expensive gifts, such as Tiffany’s purses.
As alleged in court documents, Erausquin secretly recorded some of the underage girls while he engaged in sexual activity with them. He also continued to engage in commercial sex with some of the girls after they turned 18 years old. After one victim moved out of state, he flew her back to Virginia for the holidays and paid her for sex.
Erausquin is charged with six counts of sex trafficking of minors, one count of production of child pornography, one count of transporting a person across state lines for purposes of prostitution, and three counts of coercion and enticement to travel in interstate commerce for prostitution. If convicted, Erausquin faces a mandatory minimum sentence of fifteen years in prison and a maximum penalty of life. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Albert Murray III, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement.
Assistant U.S. Attorney Maureen C. Cain and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from Northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-49.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Two Texas Men Plead Guilty in Odometer Fraud SchemeRead the Press Release
Two Texas men pleaded guilty today to for their roles in an odometer tampering scheme.
According to court documents, Nepthali Luna, 61, of San Antonio, pleaded guilty to one count of conspiracy to make false odometer statements and commit securities fraud, while his son, Devon Luna, 36, also of San Antonio, pleaded guilty to two counts of making false odometer statements and two counts of securities fraud.
As part of their plea agreements, the defendants admitted that between 2016 and 2018, they engaged in a scheme to sell high-mileage, used vehicles with false, low mileage readings entered on the vehicles’ odometers, titles and odometer disclosure statements. According to court filings, Devon Luna purchased high-mileage vehicles through his company, Pioneer Auto Finance. The defendants then caused the vehicles’ odometers and titles to reflect false, low mileages, and they sold the vehicles for inflated prices to unwitting consumers.
“The Department of Justice remains steadfast in its commitment to protect consumers against deceptive practices, including odometer fraud schemes,” said Acting Assistant Attorney General Brian Boynton of the Justice Department's Civil Division. “Consumers are entitled to truthful information about the vehicles they purchase, including the amount of miles that a used vehicle has been driven.”
In pleading guilty, the Lunas admitted that they caused at least 225 vehicles to be sold with “rolled back” odometers. The defendants admitted that the scheme resulted in consumer losses of more than $550,000.
Both defendants are scheduled to be sentenced on Aug. 3, 2021. Nepthali Luna faces a maximum sentence of five years in prison on the conspiracy charge. Devon Luna faces a maximum penalty of 10 years in prison on the securities fraud charges and three years on the false odometer statement charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA), assisted by the San Antonio Police Department, investigated the case.
Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch is prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Texas.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761. More information on odometer fraud is available on the NHTSA website at https://www.nhtsa.gov/odometer-fraud and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit https://www.justice.gov/usao-wdtx.
Two Inglewood Women Get Prison Sentences for Health Care Fraud and Fraudulently Billing Medi-Cal for Substance Abuse CounselingRead the Press Release
LOS ANGELES – An Inglewood woman and her mother-in-law, who both ran a South Los Angeles drug-and-alcohol abuse treatment program, were sentenced today to federal prison for scheming to defraud Medi-Cal out of over $500,000 for services to clients who did not medically need substance abuse treatment and for services that were never provided.
Mesbel Mohamoud, 48, was sentenced to 18 months’ imprisonment by United States District Judge Philip S. Gutierrez, who also sentenced Mohamoud’s mother-in-law, Erlinda Abella, 66, also of Inglewood, to one year and one day in federal prison. Each woman was ordered to pay $260,101 in restitution.
Mohamoud and Abella pleaded guilty in November 2020 to one count of health care fraud.
Mohamoud was the owner and executive director of The New You Center Inc. (TNYC), located in the Vermont Knolls neighborhood of South Los Angeles. Abella, who co-founded TNYC with Mohamoud in 2005, was the company’s program director. TNYC was authorized to provide medically necessary substance abuse treatment services through the Drug Medi-Cal program to adults and teenagers in Los Angeles County.
From January 2009 to December 2015, TNYC submitted false and fraudulent claims for counseling sessions that were not conducted at all, were not conducted at authorized locations, or did not comply with Drug Medi-Cal regulations regarding the length of sessions or the number of clients.
Mohamoud and Abella also caused TNYC to bill for clients who did not have a substance abuse problem, to falsify documents related to services supposedly provided to clients, and to forge client signatures on documents such as sign-in sheets.
In September 2013, TNYC submitted a fraudulent claim for Medi-Cal reimbursement in the amount of $62.15 for a three-hour counseling session for a client on August 17, 2013 – the same day when the client was hospitalized and did not receive any counseling from TNYC.
In her plea agreement, Mohamoud admitted she knew that Abella directed TNYC counselors to enroll clients in TNYC’s substance abuse treatment program even if the clients had used drugs or alcohol only occasionally or even just once.
TNYC submitted approximately $527,313 in false and fraudulent claims for group and individual substance abuse counseling services and was paid $260,101 on those claims.
The FBI, the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse, and the U.S. Department of Health and Human Services, Office of Inspector General investigated this matter.
Assistant United States Attorney Cathy J. Ostiller of the Major Frauds Section prosecuted this case.
Two Huntsville Men Charged with Multiple Robberies in North AlabamaRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury returned a 24-count indictment yesterday, charging two Huntsville men with committing a string of armed robberies across North Alabama, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, between August and October of 2019, Terrence Warren Jackson, 43, and Deonte Marquish Eddins, 25, committed 11 armed robberies at businesses across North Alabama. Jackson and Eddins robbed Family Dollar, Dollar General, MetroPCS, Verizon Wireless, and two GameStop stores. In a span of six days in October 2019, Jackson robbed Verizon Wireless, Marco’s Pizza, MetroPCS, and two GameStop stores. The indictment also charges the pair with brandishing a firearm and being felons in possession of a firearm.
The Hobbs Act prohibits actual or attempted robbery that affects interstate commerce and that involves the taking of property from another person by means of actual or threatened force or violence. If convicted of a Hobbs Act Robbery, the defendants face a maximum of 20 years in prison. If convicted of brandishing a firearm during and in relation to a violent crime, the defendants face a mandatory minimum of seven years in prison per count, to be served consecutively to any other sentence imposed for the crime. If convicted of being a felon in possession of a firearm, the defendants face a maximum of ten years in prison.
The FBI Violent Crimes Task Force, assisted by local law enforcement, investigated the case. Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Huntsville Men Charged with Multiple Robberies in North AlabamaRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury returned a 24-count indictment yesterday, charging two Huntsville men with committing a string of armed robberies across North Alabama, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, between August and October of 2019, Terrence Warren Jackson, 43, and Deonte Marquish Eddins, 25, committed 11 armed robberies at businesses across North Alabama. Jackson and Eddins robbed Family Dollar, Dollar General, MetroPCS, Verizon Wireless, and two GameStop stores. In a span of six days in October 2019, Jackson robbed Verizon Wireless, Marco’s Pizza, MetroPCS, and two GameStop stores. The indictment also charges the pair with brandishing a firearm and being felons in possession of a firearm.
The Hobbs Act prohibits actual or attempted robbery that affects interstate commerce and that involves the taking of property from another person by means of actual or threatened force or violence. If convicted of a Hobbs Act Robbery, the defendants face a maximum of 20 years in prison. If convicted of brandishing a firearm during and in relation to a violent crime, the defendants face a mandatory minimum of seven years in prison per count, to be served consecutively to any other sentence imposed for the crime. If convicted of being a felon in possession of a firearm, the defendants face a maximum of ten years in prison.
The FBI Violent Crimes Task Force, assisted by local law enforcement, investigated the case. Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Former Chick-fil-A Employees Indicted for Scheme to Steal FundsRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury yesterday indicted two former employees of a Birmingham-area Chick-fil-A restaurant franchise, alleging that they conspired to defraud their former employer, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
A 16-count indictment filed in U.S. District Court charges Larry James Black, Jr., 37, of Center Point, the former Director of Hospitality at Chick-fil-A Five Points, and Joshua Daniel Powell, 40, of Moody, a former Manager at the same location, with conspiracy to commit wire fraud and wire fraud. Black was also charged with bank fraud and misuse of a social security number.
According to the indictment, Black and Powell devised and implemented a scheme to divert hundreds of thousands of dollars in customer payments between April 2018 and January 2020. Black and Powell used fraudulent email and digital payment accounts to trick customers and divert payments for catering orders and other restaurant sales to bank accounts under their personal control.
Before and during this period, Black is also alleged to have made a series of fraudulent representations to financial institutions. In January 2020, for example, Black applied for a mortgage loan. In connection with his loan application, Black forged payroll records and made misrepresentations regarding his income from the Chick-fil-A franchise. Black also provided a fictitious social security number to banks and credit unions where he held accounts. Ultimately, proceeds from the scheme to defraud Chick-fil-A Five Points were deposited into accounts at these same financial institutions.
If convicted, Black and Powell face a maximum sentence of 20 years in prison for conspiracy to commit wire fraud, and a maximum of 20 years in prison for wire fraud. Black also faces a maximum of 30 years in prison for bank fraud, and a maximum of five years in prison for misuse of a social security number.
The U.S. Secret Service Cyber Fraud Task Force investigated the case, which Assistant U.S. Attorney Edward J. Canter is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Three Georgia men charged with federal hate crimes and attempted kidnapping in connection with the death of Ahmaud ArberyRead the Press Release
USA v. McMichael et al - indictment CR221-022 USA v. McMichael et al - indictment CR221-022 USA v. McMichael et al - penalty cert CR221-022 WASHINGTON - Three Georgia men were indicted today by a federal grand jury in the Southern District of Georgia and charged with hate crimes and the attempted kidnapping of Ahmaud Arbery. The indictment also charges two of the men with separate counts of using firearms during that crime of violence.Travis McMichael, 35; Travis’s father, Gregory McMichael, 65; and William “Roddie” Bryan, 51, were each charged with one count of interference with rights and with one count of attempted kidnapping. Travis and Gregory McMichael were also charged with one count each of using, carrying, and brandishing—and in Travis’s case, discharging—a firearm during and in relation to a crime of violence.
Counts One and Two of the indictment allege that the defendants used force and threats of force to intimidate and interfere with Arbery’s right to use a public street because of his race. Specifically, Count One of the indictment alleges that as Arbery was running on a public street in the Satilla Shores neighborhood of Brunswick, Georgia, Travis and Gregory McMichael armed themselves with firearms, got into a truck, and chased Arbery through the public streets of the neighborhood while yelling at him, using their truck to cut off his route, and threatening him with firearms. Count One also alleges that the offense resulted in Arbery’s death. Count Two alleges that William “Roddie” Bryan joined the chase and used his truck to cut off Arbery’s route.
In addition to the hate-crime charges, Count Three alleges that all three defendants attempted to unlawfully seize and confine Arbery by chasing after him in their trucks in an attempt to restrain him, restrict his free movement, corral and detain him against his will, and prevent his escape. Counts Four and Five allege that during the course of the crime of violence charged in Count One, Travis used, carried, brandished, and discharged a Remington shotgun, and Gregory used, carried, and brandished a .357 Magnum revolver.
All three defendants have also been charged in a separate state proceeding with malice murder, felony murder, aggravated assault, false imprisonment, and criminal attempt to commit a felony. No trial date has been set for the state case.
The announcement was made by Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division, Acting United States Attorney David Estes of the Southern District of Georgia, and Special Agent in Charge J.C. Hacker of the FBI.
This case was investigated by both the Federal Bureau of Investigation and the Georgia Bureau of Investigation and is being prosecuted by Assistant United States Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the DOJ’s Civil Rights Division.
An indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Three Georgia Men Charged with Federal Hate Crimes and Attempted Kidnapping in Connection with the Death of Ahmaud ArberyRead the Press Release
Three Georgia men were indicted today by a federal grand jury in the Southern District of Georgia and charged with hate crimes and the attempted kidnapping of Ahmaud Arbery. The indictment also charges two of the men with separate counts of using firearms during that crime of violence.
Travis McMichael, 35; Travis’s father, Gregory McMichael, 65; and William “Roddie” Bryan, 51, were each charged with one count of interference with rights and with one count of attempted kidnapping. Travis and Gregory McMichael were also charged with one count each of using, carrying, and brandishing—and in Travis’s case, discharging—a firearm during and in relation to a crime of violence.
Counts One and Two of the indictment allege that the defendants used force and threats of force to intimidate and interfere with Arbery’s right to use a public street because of his race. Specifically, Count One of the indictment alleges that as Arbery was running on a public street in the Satilla Shores neighborhood of Brunswick, Georgia, Travis and Gregory McMichael armed themselves with firearms, got into a truck, and chased Arbery through the public streets of the neighborhood while yelling at him, using their truck to cut off his route, and threatening him with firearms. Count One also alleges that the offense resulted in Arbery’s death. Count Two alleges that William “Roddie” Bryan joined the chase and used his truck to cut off Arbery’s route.
In addition to the hate-crime charges, Count Three alleges that all three defendants attempted to unlawfully seize and confine Arbery by chasing after him in their trucks in an attempt to restrain him, restrict his free movement, corral and detain him against his will, and prevent his escape. Counts Four and Five allege that during the course of the crime of violence charged in Count One, Travis used, carried, brandished, and discharged a Remington shotgun, and Gregory used, carried, and brandished a .357 Magnum revolver.
All three defendants have also been charged in a separate state proceeding with malice murder, felony murder, aggravated assault, false imprisonment, and criminal attempt to commit a felony. No trial date has been set for the state case.
The announcement was made by Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department's Civil Rights Division, Acting U.S. Attorney David Estes of the Southern District of Georgia, and Special Agent in Charge J.C. Hacker of the FBI.
This case was investigated by both the Federal Bureau of Investigation and the Georgia Bureau of Investigation and is being prosecuted by Assistant United States Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the Civil Rights Division.
An indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Tampa Man Sentenced to More Than Five Years in Federal Prison for Making and Passing Counterfeit CurrencyRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Simon Keith Angaran (50, Tampa) to five years and four months in federal prison for conspiracy to make and pass counterfeit Federal Reserve notes and for making counterfeit Federal Reserve notes.
Angaran had pleaded guilty on January 28, 2021.
According to court documents, from at least December 2016 through February 2020, Angaran was the ringleader of a conspiracy that made and passed counterfeit currency at locations across Tampa Bay. Law enforcement first identified the conspiracy in June 2019 after a co-conspirator had passed a counterfeit bill at a thrift shop in Tampa. In total, the conspirators passed counterfeit bills more than 1,000 times for a total loss of $135,010.
In February 2020, law enforcement executed a search warrant at Angaran’s residence and discovered that he was making and printing the counterfeit bills there. Angaran later admitted that he had taught his conspirators how to make and pass counterfeit bills.
On February 18, 2021, Judge Merryday sentenced Christina Shante Perez, one of Angaran’s co-conspirators, to three years’ imprisonment for making and passing counterfeit bills.
This case was investigated by the United States Secret Service, the Tampa Police Department, and the Seminole Police Department. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Tiffany E. Fields.
Sioux Falls Man Sentenced for Transportation of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Transportation of Child Pornography was sentenced on April 26, 2021, by U.S. District Judge Karen E. Schreier.
Joshua Lynn Lugert, age 38, was sentenced to 78 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lugert was indicted by a federal grand jury on September 1, 2020. He pled guilty on February 10, 2021.
The conviction stemmed from incidents between March 12, 2019, and March 6, 2020. Lugert searched the internet for child pornography and collected thousands of files using his cell phone and tablet.
This case was investigated by the National Center for Missing and Exploited Children, the Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation, and the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Lugert was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Methamphetamine TraffickingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 26, 2021, by U.S. District Judge Karen E. Schreier.
Ryan James Sandberg, age 19, was sentenced to 51 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Sandberg was indicted by a federal grand jury on September 1, 2020. He pled guilty on February 10, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing until on or about September 1, 2020, when Sandberg knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute a mixture and substance containing 500 grams or more of methamphetamine.
Sandberg voluntarily and intentionally joined in the agreement to distribute methamphetamine. Sandberg also knew the purpose of the agreement. Sandberg obtained over 500 grams of methamphetamine from a co-conspirator and re-distributed to other co-conspirators in the District of South Dakota and elsewhere. Sandberg knew the methamphetamine would then be distributed to drug customers. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force, the Department of Homeland Security, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Sandberg was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Assault by Striking, Beating, or WoundingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on April 27, 2021, by U.S. Magistrate Judge Mark A. Moreno.
Daniel James Farmer, age 25, was sentenced to 9 months in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Farmer was indicted by a federal grand jury on October 16, 2019. He pled guilty on April 27, 2021.
The conviction stemmed from an incident that occurred on December 10, 2017, in Todd County, South Dakota, wherein Farmer assaulted his intimate partner.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
Seattle Man Sentenced for Multi-State Identity Theft Crime SpreeRead the Press Release
LAS VEGAS, Nev. – A Seattle man was sentenced today to 4 years and eight months in federal prison for stealing victims’ identities, using those identities to steal vehicles from car dealerships in several states, and then selling these vehicles to unwitting buyers, 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, from February 2016 to March 2016, Justin Lee Tripp, 48, and others conspired to use personal identities without authorization to purchase more than $230,980 of vehicles in Washington, Oregon, California, and Nevada. As part of the scheme, Tripp and a co-conspirator obtained other peoples’ personal information, produced false identification cards that included Tripp’s and the co-conspirator’s photographs, and used fraudulent lines of credit to purchase electronics and vehicles – including a Ford F350 pickup truck, a 5th Wheel RV trailer; and a Dodge Ram pickup truck.
In March 2016, Tripp attempted to buy two jet skis and a trailer at a Las Vegas dealership using a counterfeit driver’s license, fraudulent credit card, and a fraudulent money order. Las Vegas Metropolitan Police Department officers attempted to arrest Tripp who resisted multiple commands, assaulted the officers, and attempted to flee. After a struggle, officers arrested Tripp. At the time of his arrest, Tripp possessed a forged driver’s license and two fraudulent credit cards. During a search of the stolen truck Tripp drove to the Las Vegas dealership, officers found two California license plates that were reported stolen, and a loaded 9mm semi-automatic pistol that was reported stolen in Washington. Officers also searched a stolen 5th Wheel RV trailer and found methamphetamine, multiple license plates, a backpack containing burglary tools, and a forgery lab used to produce counterfeit documents that were used to further the fraud scheme.
At the time of the crime spree, Tripp was a convicted felon serving a federal term of supervised release in the Western District of Washington.
Tripp pleaded guilty in September 2020, to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Tripp to three years of supervised release.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Kimberly Frayn prosecuted the case.
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Salem County Man Charged with Possession of Ammunition by Convicted FelonRead the Press Release
CAMDEN, N.J. – A Salem County man made his initial appearance today on charges of illegally possessing ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Sharif Hallman, 38, of Carneys Point, New Jersey, is charged by complaint with one count of possession of ammunition by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Karen M. Williams and was detained.
According to documents filed in this case and statements made in court:
On March 7, 2021, Penns Grove and Carneys Point police officers responded to an apartment complex in Carneys Point in response to a 911 call reporting a shooting. Officers encountered Hallman, a 13-time convicted felon, with a bicycle. Additional information from dispatchers reported that the suspected shooter was on a bike. Officers attempted to detain Hallman. A pistol became dislodged from Hallman and landed on the ground. The pistol had one round in the chamber, and an extended magazine containing another 22 rounds of ammunition.
The felon in possession of ammunition charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; 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 ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Acting Special Agent in Charge Craig B. Kailimai in Newark; officers of the Penns Grove Police Department, under the direction of Officer in Charge Lt. Jason G. Spera; officers of the Carneys Point Police Department, under the direction of Chief of Police Dale VanNamee; and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charge and allegation contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Rogers County Mother Pleads Guilty to Production of Child PornographyRead the Press Release
A Rogers County woman pleaded guilty today in federal court for producing child pornography involving her young child, announced Acting U.S. Attorney Clint Johnson.
Brittney Jo Wallace, 29, of Claremore, pleaded guilty to production of child pornography by a parent. Wallace admitted that she had the toddler touch her in a sexually explicit manner while she took photos using her cell phone on Sept. 26, 2015. Chief U.S. District Judge John E. Dowdell set sentencing for July 29, 2021.
“Detectives and agents with OSBI’s Internet Crimes Against Children Unit and Tulsa’s Homeland Security Investigations Child Exploitation Task Force doggedly pursue individuals, like Brittney Wallace, who harm the most innocent and vulnerable among us,” said Acting U.S. Attorney Clint Johnson. “This office and our law enforcement partners will continue our critical work to protect Oklahoma’s children.”
In 2016, Wallace’s children were taken from the home after a doctor found signs of severe child abuse. The defendant’s parental rights were later terminated. During the 2016 investigation conducted by the state of Oklahoma, authorities seized the defendant’s phone which was later suppressed. Recently, the Oklahoma Court of Criminal Appeals found the seizure and subsequent search of her phone were proper, and the phone was turned over to investigators. When authorities conducted a forensic examination of the phone, they discovered the child pornography.
On March 1, 2021, the U.S. Marshals Service arrested Wallace on a federal arrest warrant. The Oklahoma State Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Rogers County Sheriff’s Office, and Claremore Police Department conducted the investigation.
Assistant U.S. Attorneys Matilda M. Villalobos and Christopher J. Nassar are prosecuting the case. AUSA Villalobos is a prosecutor from the District of New Mexico. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
You can find the indictment press release here.
If you suspect a child is being sexually exploited, contact the National Center for Missing and Exploited Children immediately at 1-800-THE-LOST or cybertipline.org. You can also contact the OSBI ICAC Unit at (800) 522-8017 or [email protected].
Rochester Man Second to Plead Guilty in Ponzi Scheme That Bilked Investors Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY – U.S. Attorney James P. Kennedy, Jr. announced today that John Piccarreto, Jr., 38, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to commit mail fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that between 2017 and June 2018, the defendant conspired with co-defendants Perry Santillo, Christopher Parris and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. The scheme, which was conducted under the umbrella of a business entity called Lucian Development, involved the sale of fraudulent promissory notes that were issued under the names various entities that Santillo and Parris controlled, including Lucian Development, First Nationale Solutions, United RL Capital Services, and Percipience Global Corporation (the issuers), among others. These issuers had little to no substantial bona fide business activities, and other than monies obtained from defrauded investors, the issuers had no material revenue streams. The vast majority of financial activity for the issuers involved receiving money from new investors, and then redistributing that money to repay earlier investors, to pay the expenses of the scheme, and to finance the lifestyles of Santillo, Parris and others involved in the scheme.
Piccarreto began working for Lucian Development in March 2012, and initially was unaware that the business was, in fact, a Ponzi scheme. The defendant’s responsibilities included assisting with the completion of transaction paperwork for clients of Lucian Development, including checks and wire transfers, and other clerical responsibilities. As he gained experience with investments and obtained a securities license, Piccarreto’s responsibilities increased to include meeting with existing investors who had questions or complaints about Lucian Development and selling investment products, including promissory notes and other investments, to a few investors. By January 2017, the defendant realized that the Lucian Development business was, indeed, a Ponzi scheme after the company stopped paying promised returns to client investors whom he serviced. However, rather than severing his association with Lucian Development, Piccarreto continued to work for Santillo and Parris, knowingly lying to investors by falsely reassuring them that their investments were safe and secure, even though he knew this was not true, and encouraging investors to “reinvest” their fraudulent investments by signing new promissory notes.
For example, in May 2018, the defendant met with Victim 1 who over the years had invested approximately $93,199.75 with Lucian Development and First Nationle Solutions. Piccarreto represented to Victim 1 that his money was safe in an account, even though he knew that was untrue. Piccarreto also tried to convince Victim 1 to reinvest his principal and accrued interest in another fraudulent promissory note. In August 2014, the defendant accompanied co-defendant Parris to meet with a potential investor who would become another victim (Victim 2). Between 2014 and 2016, Victim 2 and his wife invested a total of approximately $660,250.00 in the Ponzi scheme, specifically, in fraudulent promissory notes issued by United RL Capital Services and Percipience Global Corporation. Piccarreto knew by January 2017 that Victim 2 and his wife had received fraudulent promissory notes but continued to lull the couple by falsely reassuring them that their investments were safe, and they would be fully repaid.
Piccarreto admitted that from January 1, 2017, and June 19, 2018, he was involved in defrauding approximately 400 investors out of approximately $18,081,556, which resulted in financial hardship to more than 25 of its investor victims. Piccarreto also admitted that, while working in Texas, he personally solicited and defrauded at least eight investors out of approximately $598,695.
In addition, on his 2017 tax return, the defendant claimed that he had taxable income in the total amount of $6,576. In fact, Piccarreto’s taxable income was approximately $538,548. As a result, the defendant avoided paying income taxes to the Internal Revenue Service in the amount of approximately $159,423.
Perry Santillo was previously convicted and is awaiting sentencing. Charges remain pending against Christopher Parris. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua McCallister, Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; and the Securities and Exchange Commission.
Sentencing is scheduled for July 29, 2021, at 3:00 p.m. before Chief Judge Geraci.
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Resident of Sabana Seca Indicted for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned an indictment charging Luis Antonio Visalden Arriaga with unlicensed firearms trafficking, 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, Luis Antonio Visalden Arriaga sold semi- and fully automatic weapons for prices ranging from $2,000 to $2,700 each. He arranged for the sale of AK-47 rifles and stated that he received shipments of fifteen machineguns at a time.
Assistant U.S. Attorney Jeanette Collazo of the Violent Crimes Section is in charge of the prosecution of the case. If convicted, the defendant faces a maximum sentence of five 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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Rapid City Woman Sentenced for Retaliation Against a WitnessRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, woman convicted of Retaliation Against a Witness was sentenced on April 26, 2021, by Chief U.S. District Judge Roberto A. Lange.
Whitney Bagola, age 27, was sentenced to 57 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bagola was indicted by a federal grand jury on December 8, 2020. She pled guilty on March 1, 2021.
The conviction stemmed from an incident on April 20, 2020, at a jail in South Dakota, when Bagola assaulted an individual for giving information to law enforcement.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Bagola was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on April 14, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Bruce Kline, age 52, was sentenced to 10 years in federal prison, followed by a lifetime supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $13,000 in restitution. Kline will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stems from Kline failing a parole-ordered polygraph in October 2019. Kline was convicted in state court in 2011 for child pornography charges and remained on parole. Forensic examination of Kline’s devices thereafter revealed thousands of images of child pornography downloaded by Kline.
The investigation was conducted by the South Dakota Department of Corrections, South Dakota Division of Criminal Investigation, Department of Homeland Security, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Kline was remanded to the custody of the U.S. Marshals Service.
Quincy Man Sentenced for COVID-19 Related OffenseRead the Press Release
BOSTON – A Quincy man was sentenced yesterday in federal court in Boston in connection with selling lanyards that falsely claimed to protect against viruses.
Jiule Lin, 38, was sentenced by U.S. District Court Magistrate Judge Jennifer C. Boal to one year of probation and a fine of $1,500. In December 2020, Lin pleaded guilty to one count of distribution and sale of an unregistered pesticide.
Beginning in March 2020, Lin listed for sale on eBay an unregistered pesticide, “Toamit Virus Shut Out,” to buyers across the United States. Based on Lin’s eBay listing, the pesticide took the form of a card-shaped device to be worn as a lanyard around the user’s neck. The eBay listing depicted the removal of germs or viruses through the wearing of the device. Other online listings for the same product included the explicit claim that the product would protect the buyer or wearer of the product from viruses or bacteria, stating that the product’s main ingredient was chlorine dioxide and showed images of the device’s purported removal of bacteria, germs and viruses.
Under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, including viruses. Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides.
Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of EPA-approved disinfectant products.
Acting United States Attorney Nathaniel R. Mendell; Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division in Boston; Joshua McCallister, Acting Special Agent in Charge of the U.S. Postal Inspection Service, Boston Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigation, New York Field Office; and Quincy Police Chief Paul Keenan made the announcement. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit prosecuted the case.
Queens Man Convicted of Threatening to Murder Members of CongressRead the Press Release
Earlier today, following a one-week trial before United States District Judge Pamela K. Chen, a federal jury in Brooklyn convicted Brendan Hunt, also known as “X-Ray Ultra,” of threatening to assault and murder members of the United States Congress to impede, interfere and intimidate with those members and to retaliate against them on account of their performance of their official duties. When sentenced on June 22, 2021, Hunt faces up to 10 years in prison.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“With today’s verdict, the defendant is now a convicted felon, not for his repugnant, racist rants, but because he threatened to attack and kill members of Congress to prevent them from carrying out their constitutional duties, and that is a federal crime,” stated Acting United States Attorney Lesko. “This Office will not tolerate threats of violence against public officials who are entrusted with upholding the Constitution.”
Mr. Lesko and Mr. Sweeney praised the outstanding work of the FBI’s New York Joint Terrorism Task Force on the case.
On January 8, 2021, two days after the violent assault on the U.S. Capitol in Washington, D.C., Hunt posted a video called “KILL YOUR SENATORS” that included the summary “Slaughter them all,” to BitChute, an Internet-based video sharing site. In the video, Hunt made additional threats, exhorting his viewers to violence and telling them that “[w]e need to go back to the U.S. Capitol when all of the Senators and a lot of the Representatives are back there, and this time we have to show up with our guns. And we need to slaughter these m-----f-----s.” Hunt also advocated for the violent overthrow of the federal government, claiming that “our government at this point is basically a handful of traitors . . . so what you need to do is take up arms, get to D.C., probably the inauguration . . . so called inauguration of this m-----f-----g communist Joe Biden . . . [T]hat’s probably the best time to do this, get your guns, show up to D.C., and literally just spray these m-----f-----s . . . put some bullets in their f------g heads.” Hunt stated, “If anybody has a gun, give me it, I’ll go there myself and shoot them and kill them . . . [W]e have to take out these Senators and then replace them with actual patriots. This is a [Zionist Occupied Government].”
The evidence at trial also showed that, between December 6, 2020 and January 8, 2021, Hunt made a series of posts on various social media websites in which he targeted Members of Congress, including Speaker of the House of Representatives Nancy Pelosi, Senate Majority Leader Charles Schumer, and Representative Alexandria Ocasio-Cortez. On December 6, 2020, Hunt posted two messages on his Facebook account, the first calling Speaker Pelosi, Senator Schumer, and Congresswoman Ocasio-Cortez “high-value target[s].” Hunt stated: “They really need to be put down. These commies will see death before they see us surrender.” A second message called on former President Donald Trump to hold a public execution of Pelosi, Schumer, and Ocasio-Cortez. “If you don't do it, the citizenry will. We’re not voting in another rigged election. Start up the firing squads, mow down these commies, and lets take America back,” Hunt stated.
The evidence included the defendant’s social media and video accounts, as well as videos, text messages, emails, and documents downloaded from the defendant’s electronic devices espousing white supremacist and anti-Semitic views, including Adolf Hitler’s “Mein Kampf” and accused mass murderer Dylan Roof’s manifesto.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler, Ian C. Richardson and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
BRENDAN HUNT (also known as “X-Ray Ultra”)
Age: 37
Ridgewood, QueensE.D.N.Y. Docket No. 21-CR-086 (PKC)
Previously Convicted Felon Sentenced for Possession of Firearm During Traffic Stop That Resulted in Death of Newport News Police OfficerRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to ten years in prison for being a previously convicted felon in possession of a firearm and felony possession of a controlled substance. Both charges stem from the defendant’s involvement in a January 2020 traffic stop that allegedly led to the death of Newport News Police Officer Katie Thyne.
According to court documents and statements made in court, on January 23, 2020, Vernon Evander Green II, 38, encountered Newport News Police at the Monitor Merrimac Overlook. Police responded to the area after reports of a vehicle with two occupants who appeared to be smoking marijuana. The officers found Green in the driver’s seat and asked him to exit the vehicle. He failed to comply with the officers’ requests and instead fled the scene in his vehicle.
A later search resulted in the recovery of marijuana in the vehicle, along with a soft cooler bag containing a firearm with Green’s fingerprint on the magazine. Green admitted he had previously been convicted of a felony and was not allowed to possess a firearm.
Today’s sentence in federal court consisted of ten years in prison for being a felon in possession of a firearm and two years in prison for the felony controlled substance offense, with both prison terms to run concurrently to each other. The Court, however, ordered that the federal sentence run consecutively to any sentence that may be imposed in the future for Green’s separate pending charges involving felony homicide in Newport News and bank robbery in North Carolina. With regards to the pending Newport News matter, Green has been charged under Virginia state law with felony homicide, in connection with the death of Officer Thyne, in the Newport News Criminal General District Court. The defendant is presumed innocent of the pending state charges until proven guilty.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Howard J. Zlotnick and Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-35.
Pendleton Man Sentenced to 30 Years for Sexual Crimes against a ChildRead the Press Release
INDIANAPOLIS - A Pendleton man was sentenced to 30 years for several counts of sexual exploitation of a child, coercion and enticement of a child, and possession of child pornography.
According to court documents, in January 2017, Jeffrey Kramer, 51, of Pendleton, used an online dating website to meet the minor victim. Kramer falsely represented to the victim that his name was "Michael", and that he was a wealthy foreigner. Kramer used the internet, including social media, and family heritage websites, to gain and verify information about the minor victim and her family. He knew that the victim was under the age of 18 and that her father had recently died. He promised to give her millions of dollars if she self-produced child pornography at Kramer’s direction.
For approximately a year, Kramer used the internet to groom and psychologically extort the victim to engage in sexually explicit conduct. Specifically, to produce and send violent child sexual abuse material (CSAM) over the internet, and to enter a bondage-discipline, dominance, submission, and sadism-masochism (BDSM) relationship with him.
“Adults who sexually exploit children are some of the worst in our society,” said Childress. “No amount of time behind bars seems adequate punishment for the monstrous behavior and harm Kramer knowingly caused this victim. We will continue to diligently work together with our law enforcement partners to identify these predators and bring justice to their victims.”
“Those who prey on the most vulnerable of our citizens, our children, will be held accountable for their heinous actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This lengthy sentence demonstrates our commitment to identify and investigate those who exploit innocent children to ensure they can never victimize anyone else.”
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Tiffany J. Preston, who prosecuted the case for the government said Kramer must pay $10,000 in restitution and serve the remainder of his life on supervised release after his imprisonment.
Owner of Diving School Admits Wire FraudRead the Press Release
CAMDEN, N.J. – The president and CEO of a commercial diving school today admitted fraudulently obtaining funding from the U.S. Department of Education (DOE) and the U.S. Department of Veterans Affairs (VA) for the school and its students, Acting U.S. Attorney Rachael A. Honig announced.
Tamara Brown, 57, of Haddon Heights, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of wire fraud.
According to documents filed in this case and statements made in court:
From January 2012 through July 2018, Brown owned a private, for-profit commercial diving school, which offered educational programs in commercial diving and underwater welding and salvage. As a for-profit institution, the diving school was required to be accredited through an approved accreditation body to be eligible to receive tuition funds from the DOE’s Higher Education Act’s programs. The VA also relies upon the accreditation in evaluating the eligibility of veteran students to receive student aid funding. Given that more than 80 percent of the diving school’s students received financial assistance from the Department of Education, the school stood to lose its largest source of tuition funding for its students if it lost its accreditation.
Prior to 2012, the diving school had been properly accredited. However, when renewing the diving school’s accreditation that year, Brown submitted fraudulent information to the accrediting authority. For example, Brown reported rates of employment of the school’s graduates of between 81 to 84 percent, when the employment rates were closer to 50 to 60 percent, significantly lower than the rate required to maintain accreditation. Brown also provided fraudulent information pertaining to the school’s holding of “advisory board” meetings required for accreditation to ensure that the school’s curriculum would educate students to meet the current demands of the industry and prospective employers. In the school’s accreditation application, Brown reported holding advisory board meetings on various dates and also submitted what purported to be minutes of nine such board meetings. The diving school did not have a formal advisory board and did not regularly conduct meetings as required. Brown submitted wholly fabricated meeting minutes for at least six of the nine dates listed in the school’s accreditation application and, therefore, did not satisfy the minimum accreditation requirements. The diving school nonetheless continued to regularly receive DOE funds via wire transfers, including a wire transfer which occurred on Jan. 18, 2017.
The wire fraud charge to which Brown pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Under the terms of the plea agreement, Brown must pay restitution of $1.1 million. Sentencing is scheduled for Aug. 30, 2021.
Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, the Philadelphia Resident Agency of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Terry V. Harris, and the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S Attorney’s Office in Camden.
Owner of Child Autism Services Agency Pleads Guilty to Health Care FraudRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that NICOLE M. BALKAS, 31, of Bridgeport, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of health care fraud.
According to court documents and statements made in court, Balkas owned and operated Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD). Helping Hands Academy enrolled as a participating provider in the Connecticut Medicaid Program (“Medicaid”) in approximately September 2018.
From December 2018 to October 2020, Balkas submitted and caused to be submitted fraudulent claims to Medicaid for applied behavior analysis services that were purportedly provided to Medicaid clients. Balkas submitted claims for dates of service when no applied behavior analysis services of any kind had been provided to the Medicaid clients identified in the claims, and she inflated the number of hours for certain claims even when applied behavior analysis had been provided to the Medicaid clients identified in the claims.
In addition, in September and October 2020, Balkas submitted, and was subsequently paid for, Medicaid claims in which she falsely claimed that a former Helping Hands Academy provider, who was a Board Certified Behavior Analyst (“Individual 1”), performed Medicaid-approved services when, in fact, Individual 1 was not employed by Helping Hands Academy on those dates of service, provided no such services to the clients identified on the claims, and was not aware that Helping Hands Academy or Balkas was billing Medicaid using Individual 1’s name and performing provider number. Individual 1 had resigned from Helping Hands Academy in July 2019.
In August 2020, the Connecticut Department of Social Services (DSS), which administers the Medicaid program in Connecticut, terminated Helping Hands Academy as a provider. In an effort to rescind the termination and to receive payment for previously submitted claims, Balkas made several false statements and submitted an altered document to DSS.
Medicaid suffered a loss of $551,311.85 as a result of Balkas’ conduct.
Judge Meyer scheduled sentencing for July 21, 2021, at which time Balkas faces a maximum term of imprisonment of 10 years. Balkas also will be ordered to make full restitution.
Balkas is released on a $50,000 bond pending sentencing.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
Acting U.S. Attorney Boyle acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Overland Park Man Pleads Guilty to Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – An Overland Park, Kansas, man pleaded guilty in federal court today to the robberies (and attempted robberies) of five businesses.
Joshua A. West, 28, pleaded guilty before U.S. District Judge Howard F. Sachs to five counts of robbery and two counts of brandishing a firearm in furtherance of a violent crime.
By pleading guilty today, West admitted that he robbed the CVS Pharmacy at 6300 Prospect Ave., Kansas City, Mo., on July 17, 2018. When West came around the counter, the cashier, who believed he was armed, opened the cash drawer. West took all of the cash and left the store. Investigators posted a bulletin using a photo from surveillance footage, and received a tip that identified West, who was on probation at the time.
West also admitted that he used a firearm to rob the Sprint Store at 4902 N. Oak Trafficway, Kansas City, Mo., on Aug. 10, 2018. West forced an employee to open the locked cabinets behind the counter so he could take all the iPhones, Apple Watches, and Samsung S-9 phones.
The next day, on Aug. 11, 2018, West robbed the Phone Shack at 6392 Troost Avenue, Kansas City, Mo., at gunpoint. West forced two employees to get on the ground, then stole phones and cash from the register.
On Aug. 15, 2018, a manager of a T-Mobile store sent a photo of West to all the managers of stores in the metropolitan area. On the same day, the manager of a T-Mobile store at 12400 S. US Hwy. 71, Grandview, Mo., spotted West in the parking lot outside the store. Because he had been alerted, the manager locked the door. West tried to open the door, then pointed a firearm at the manager from outside for a few seconds before walking away.
Immediately afterward, West entered the nearby AT&T store at 12346 U.S. Hwy. 71, Grandview, Mo. West pulled out a firearm and ordered the employees to give him all the iPhones. West ordered the two employees and a customer into a back room. Another customer stayed in the main showroom and ran out of the store after West went to the back room. That customer called 911. Once in the back room, an employee opened a closet that had all the iPhones. West ordered them to the ground and put the phones in a plastic bag.
West left the back room, going back through the main showroom. Before he reached the front door, however, two Grandview police officers confronted him in the main showroom. West attempted to run through the back room, but the door had locked behind him. The officers ordered West to get on the ground, but he refused, and a struggle ensued. During the struggle, a Taurus 9mm pistol fell from West’s waistband. More officers arrived and took West into custody.
Under federal statutes, West is subject to sentence of up to 20 years in federal prison without parole on each of the robbery charges, plus a consecutive sentence of at least 14 years in federal prison without parole, up to a sentence of life in federal prison without parole, for the firearm charges. 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 Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department, the Grandview, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omaha Man Sentenced for Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Daniel Zordell, 39, of Omaha, Nebraska, was sentenced today in federal court in Omaha for receiving child pornography. United States District Judge Brian C. Buescher sentenced Zordell to 70 months of imprisonment. There is no parole in the federal system. After his release from prison, Zordell will begin a five-year term of supervised release and will be required to register as a sex offender.
In March 2018, a task force office with the FBI’s Child Exploitation and Human Trafficking Task Force acquired 150 images of child pornography from a computer at Zordell’s Omaha residence. The images included pre-pubescent girls in sexually explicit poses. On June 7, 2018, agents entered the residence with a search warrant. Zordell admitted he was the only one home when his computer shared the 150 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
North Carolina Man Pleads Guilty to Production of Child PornographyRead the Press Release
A North Carolina man pleaded guilty Monday to production of child pornography.
According to statements made in connection with his plea, when allegations of child pornography came to light, Raul Ayala Jr., 72, of Harnett County, was interviewed by the Fuquay-Varina Police Department and admitted to molesting a prepubescent minor victim, as well as other victims as far back as the 1970s. A search warrant was thereafter executed at Ayala’s residence in Angier and multiple digital devices were seized. The devices contained numerous images and videos of child sexual abuse material (CSAM). In addition, the police found a briefcase in Ayala’s attic, suspended by a pulley system, that contained CSAM and Polaroid pictures of nude minor children, dating back to the late 1960s and early 1970s. Homeland Security Investigations (HSI) agents were able to track down and identify one of the boys depicted in the Polaroids. He is now in his 60s and disclosed that Ayala had sexually abused him when he was a minor, starting when he was 8 years old.
“This case demonstrates that child sex offenders too often engage in their offenses over great periods of time without detection,” said acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution resulted from the successful collaboration of diligent federal and local law enforcement officers in their efforts to pursue justice for children, regardless of the passage of time. Ayala committed egregious offenses for decades and his successful prosecution ensures that he now faces a sentence of no less than 15 years. The Department of Justice is committed to tirelessly tracking down and pursuing the prosecution of defendants like Ayala who victimize the most vulnerable members of our society.”
“Child pornography – the horrible exploitation of the most vulnerable among us – is one of the worst and most intolerable crimes we prosecute, and this plea reflects the Department of Justice’s deep and abiding commitment to removing these predators and restoring our children,” said Acting U.S. Attorney G. Norman Acker III of the Eastern District of North Carolina. “This case allows us to take another step in the right direction as we work to eliminate this crime and its terrible consequences for our communities.”
“As disturbing as these child sex abuse cases are, HSI is determined to prevent and punish those who sexually abuse innocent children,” said Special Agent in Charge Ronnie Martinez of HSI’s Charlotte Field Office. “Working together with our partners in the Fuquay-Varina Police Department and the Hartnett County Sheriff’s Office, these cases can be investigated thoroughly and expeditiously so children can continue to be rescued. There is nothing more meaningful than locating, identifying, and rescuing child sex abuse victims.”
Ayala faces up to 30 years of imprisonment, with a mandatory minimum term of 15 years of imprisonment, to be followed by supervised release for at least five years, and restitution. After release from prison, Ayala will be required to register as a sex offender.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office for the Eastern District of North Carolina prosecuted the case.
The HSI Raleigh Field Office investigated the case with assistance from the Fuquay-Varina Police Department and the Harnett County Sheriff’s Office. CEOS’s High Tech Investigative Unit provided substantial assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
New York Man Pleads Guilty to Hate Crime OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that CHRISTOPHER RASCOLL, 49, of Blauvelt, New York, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to federal hate crime offenses related to his making anti-Semitic death threats to a resident of Stratford, Connecticut.
According to court documents and statements made in court, in November 2019, Rascoll began making numerous threats to an individual, who is of Jewish faith, through text messages, voicemails and Facebook posts. In several text messages, which continued into June 2020, Rascoll threatened to murder or seriously injure the victim. He also threatened to blow up the victim’s house and car. Some of Rascoll’s threatening text messages contained anti-Semitic references to the Holocaust. On December 23, 2019, Rascoll sent a message that included the words “Suns about to go down. It would be a shame if your house were used to light the menorah. Or turned in a gas chamber.” On April 8, 2020, Rascoll wrote “I’m going to kill you. You better be gone because if you’re in [the victim’s housing community] Easter weekend I’m going to stick you in an oven. Or I’m going to shoot you.”
Rascoll pleaded guilty to one count of interference with the right to fair housing, a hate crime, which carries a maximum term of imprisonment of 10 years, and one count of sending threatening communications, which carries a maximum term of imprisonment of five years.
Judge Dooley scheduled sentencing for July 27, 2021.
Rascoll has been detained since his arrest on June 26, 2020.
This matter has been investigated by the Federal Bureau of Investigation with assistance from the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Amanda S. Oakes.
New York Felon Sentenced for Coercing Others to Purchase Firearms for HimRead the Press Release
ERIE, Pa. - A former resident of Jamestown, New York, has been sentenced in federal court to 46 months in jail on his conviction of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Deniro Hackett, 43.
According to information presented to the court, from March 9, 2020, to July 21, 2020, Hackett and two co-defendants conspired to violate federal straw purchase laws. The two co-defendants acquired firearms for Hackett who was prohibited from possessing firearms based on prior criminal convictions.
During the sentencing, the attorney for the United States described how Hackett had recruited, coerced, and intimidated straw purchasers without prior criminal histories to purchase firearms on behalf of Hackett. Judge Cercone, in sentencing Hackett, highlighted the role that the straw purchase of firearms has played in the rising instances of gun violence in the area.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Pennsylvania State Police, Conewango Police Department, and Homeland Security Investigations for the investigation leading to the successful prosecution of Hackett.
Nevada Man Sentenced to 10 Years in Prison for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
LAS VEGAS, Nev. – A Nevada resident was sentenced last Wednesday to 10 years in prison for his role in a methamphetamine drug trafficking conspiracy, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada.
According to court documents, on April 14, 2017, Las Vegas Metropolitan Police Department officers stopped a vehicle. Alejandro Jose Rojas, 38, was a passenger, and co-defendant Jonathan Ruiz, 35, was the driver. During the stop, officers observed a firearm protruding from underneath the front passenger seat. Officers found approximately 29 grams of methamphetamine in Rojas’ pocket and recovered three firearms under the passenger seat. 1.4 kilograms of methamphetamine was found in the vehicle’s trunk. During a subsequent search warrant executed on a hotel room Ruiz had rented, officers found an additional firearm and approximately 8.6 kilograms of methamphetamine.
Rojas pleaded guilty to one count of conspiracy to distribute methamphetamine, a Schedule II Controlled Substance. In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon sentenced Rojas to five years of supervised release.
Ruiz pleaded guilty to one count of conspiracy to distribute methamphetamine. He was sentenced to 78 months in prison, to be followed by five years of supervised release.
This case was investigated by the Drug Enforcement Administration.
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Montgomery Woman Charged with Covid-19 Loan FraudRead the Press Release
MONTGOMERY, ALABAMA – On April 26, 2021, Zsa Zsa Bouvier Couch, 52, from Montgomery, Alabama, was arrested on criminal charges related to federal small business loan fraud, announced Acting U.S. Attorney Sandra J. Stewart. Couch made her initial appearance in federal court yesterday, April 27, 2021.
The fraud allegations relate to aid received through the Coronavirus Aid Relief and Economic Security (CARES) Act, a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the Paycheck Protection Program, or PPP, which authorizes the disbursement of forgivable loans to small businesses for job retention and certain other expenses.
According to the indictment returned by a Middle District of Alabama Grand Jury, Couch is alleged to have submitted at least six fraudulent applications for loans under the U.S. Small Business Administration’s PPP program seeking over $1.6 million in funds. In each of the applications, Couch falsely inflated the number of employees who worked for her purported businesses as well as the average monthly payroll for the businesses, which resulted in her ability to qualify for larger PPP loan amounts. Couch is also alleged to have made other false statements in her application, such as failing to disclose that she had applied for multiple PPP loans for the same business and failed to disclose her common ownership of multiple businesses. In support of the inflated employee numbers and average monthly payroll claimed in the applications, Couch allegedly submitted falsified tax documents. As a result, Couch received an inflated amount of funds from PPP loans to which she was not entitled. Ultimately, Couch received a total of $609,687.47 of PPP funds. It is alleged that Couch then used the funds to pay money to herself, her husband, and other family members and to purchase luxury vehicles.
Couch is charged with multiple counts of bank fraud, making false statements to a federally insured bank, and money laundering. If convicted, Couch faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Bureau of Investigation, the U.S. Internal Revenue Service- Criminal Investigations, the Small Business Administration Office of Inspector General, and the Treasury Inspector General for Tax Administration, investigated this case. Assistant U.S. Attorneys Alice LaCour and Jonathan Ross are prosecuting the case.
For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721).
Monroe County Man Indicted for Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 27, 2021, Terrance Tyson, age 44, of East Stroudsburg, Pennsylvania, was indicted by a federal grand jury for bank robbery.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on September 24, 2019, Tyson committed a robbery of the NBT Bank located in East Stroudsburg and took approximately $5,226.
The case was investigated by the Stroud Area Regional Police Department and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, Tyson faces a maximum sentence of up to 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mississippi Man Indicted for Wire Fraud and Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury returned an eight-count indictment yesterday charging a Mississippi man with wire fraud and health care fraud and with conspiracy to commit wire and health care fraud, announced U.S. Attorney Prim F. Escalona and Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick Jackson.
According to the indictment, in October 2016, Phillip Anthony Minga, 55, of Amory, MS, was excluded from providing services to Medicare participants. Minga also signed an agreement which provided that Medicare would not pay claims submitted by anyone who employed Minga in a management or administrative role. The indictment charges, however, that Minga and others concealed his ownership interests and managerial roles in multiple pharmacies and caused the submission of millions of dollars in claims for reimbursement to Medicare, in violation of his exclusion agreement.
If convicted, Minga faces a maximum of twenty years in prison for wire fraud and ten years in prison for health care fraud, and a $250,000 fine.
The Department of Health and Human Services, Office of Inspector General, investigated the case along with the State of Mississippi’s Office of the Attorney General and the State of Alabama’s State Board of Pharmacy. Assistant U.S. Attorneys Lloyd Peeples and Don Long are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Man Pleads Guilty to Operating Nationwide Scheme to Steal Social Media Accounts and CryptocurrencyRead the Press Release
A Massachusetts man pleaded guilty today to conducting a scheme to take over victims’ social media accounts and steal hundreds of thousands of dollars in cryptocurrency.
According to court documents and statements made in connection with the plea proceeding, Eric Meiggs, 23, of Brockton, admitted that he and one or more co-conspirators targeted victims who appeared to have significant amounts of cryptocurrency and those who had high value or “OG” (slang for “original gangster”) social media account names. Using an illegal practice known as “SIM-swapping,” Meiggs and others conspired to hack into and take control of these victims’ online accounts to obtain things of value, including OG social media account names and cryptocurrency.
As alleged in the indictment, SIM-swapping attacks involve convincing a victim’s cellphone carrier to reassign the victim’s phone number from the SIM card (Subscriber Identity Module card) inside the victim’s cellphone to the SIM card inside a cellphone controlled by the cybercriminals. Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by them. The cybercriminals can then reset the victim’s account log-in credentials and use those credentials to access the victim’s account without authorization, or “hack into” the account.
According to the indictment, Meiggs and his coconspirators targeted at least 10 identified victims around the country. Members of the conspiracy stole, or attempted to steal, more than $530,000 in cryptocurrency from these victims. Meiggs also took control of two victims’ “OG” accounts with social media companies.
Meiggs pleaded guilty to each of seven counts in an indictment, charging him with conspiracy, wire fraud, computer fraud and abuse, and aggravated identity theft. He is scheduled to be sentenced on Sept. 15, and faces a mandatory minimum penalty of two years in prison, to be served consecutively to any other sentence. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts; Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office; and Acting Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation (IRS-CI) made the announcement.
The FBI and IRS-CI are investigating the case.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Seth Kosto of the U.S. Attorney’s Office in the District of Massachusetts are prosecuting the case.