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14 April 2021
Canadian Company Sentenced for Violating Clean Water ActRead the Press Release
The Algoma Central Corporation (Algoma), headquartered in St. Catharines, Ontario, was fined $500,000 after pleading guilty to dumping wastewater into Lake Ontario.
Algoma operated a fleet of dry and liquid bulk carriers on the Great Lakes. One of the vessels in the defendant’s fleet was the M/V Algoma Strongfield (Strongfield). Built in China, the Strongfield was delivered to Canada on May 30, 2017, by a crew from Redwise Maritime Services, B.V. (Redwise), a vessel transport company based in the Netherlands.
“The Great Lakes are our nation’s largest source of fresh water, and this prosecution shows the Administration’s commitment to preserving a natural resource that will be crucial for generations to come,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD).
“The very purpose of the Clean Water Act is to protect our natural resources, including one of our nation’s greatest natural treasures, the Great Lakes, from harm,” said U.S. Attorney James P. Kennedy for the Western District of New York. “This conviction and the fine imposed sends a strong message that those who violate the Clean Water Act will be held accountable for their actions. This penalty also ensures that this defendant will be monitored in the future and will be strictly obligated to comply with those environmental laws and regulations that protect our waters, our fisheries, our wildlife, and each of us.”
During the Strongfield’s delivery voyage, while manned by a Redwise crew, the oily water separator and oil content monitor malfunctioned or failed on multiple occasions, which resulted in an accumulation of unprocessed oily bilge water. On May 5, 2017, an Algoma employee directed Redwise to transfer and store the unprocessed oily bilge water in the Strongfield’s used wash water tank to avoid an overboard discharge of unprocessed bilge water into the Pacific Ocean. The wash water tank was intended to store deck and cargo hold wash water and is not listed on the Strongfield’s International Oil Pollution Prevention certificate. Between May 5, 2017, and the Strongfield’s arrival in Canada, the Redwise crew made several additional transfers of unprocessed oily bilge waste into the wash water tank to avoid overboard discharges of untreated bilge water.
On May 19, 2017, as the Strongfield was transiting the Panama Canal, an Algoma employee boarded the vessel and remained onboard until the vessel’s arrival in Canada, where he assumed the duties of Chief Engineer. On May 30, 2017, the Strongfield arrived in Sept-Iles, Quebec, Canada, where the Redwise crew handed over operation of the vessel to an Algoma crew. Although some of the Algoma crew were advised that the wash water tank contained unprocessed oily bilge water, Algoma acted negligently in failing to inform all onboarding Algoma crewmembers and the inspectors of the contents of the wash water tank.
On June 6, 2017, the Stongfield was transiting Lake Ontario. While in the waters of the United States within the Western District of New York, the 3rd officer on board the Strongfield requested permission to empty the contents of the wash water tank into Lake Ontario, and the captain approved the discharge. Because Algoma had negligently failed to inform the 3rd officer and the captain what the wash water tank contained, approximately 11,887 gallons of unprocessed oily bilge water were released into Lake Ontario. The discharge was stopped when another Algoma employee learned of the discharge and informed the 3rd officer and captain that the wash water tank contained unprocessed oily bilge water and instructed them to stop the discharge immediately. After the incident, Algoma contacted Canadian and U.S. authorities to report the discharge.
In addition to the fine, Algoma was put on probation for a period of three years during which it must implement an environmental compliance plan.
The sentencing is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Cindy C. Buckley, Buffalo, New York, and Resident Agent in Charge Edward L. Songer, Detroit, Michigan.
Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango of the Western District of New York are prosecuting the case.
Cameroon Man Sentenced to Four Years in Prison for Defrauding Bourbonnais Bank, OthersRead the Press Release
PEORIA, Ill. –A citizen of Cameroon, Lovette Namatinga, 34, has been sentenced to serve 48 months in federal prison for defrauding a Bourbonnais, Ill., bank of nearly $300,000. At the sentencing hearing, on April 13, 2021, Senior U.S. District Judge Michael M. Mihm further ordered that Namatinga pay restitution in the amount of $278,201 to the bank and numerous other individual and business victims of the defendant’s fraud scheme.
Namatinga, of Owings Mills, Md., has remained in the custody of the U.S. Marshals Service since he was arrested on Oct. 7, 2019, at Washington Dulles International Airport by FDIC Office of Inspector General agents.
On Sept. 21, 2020, immediately prior to jury selection before his trial, Namatinga pleaded guilty to all counts of the indictment, four counts each of bank and wire fraud, as charged, related to his defrauding Municipal Trust and Savings Bank, Bourbonnais, Ill. Namatinga admitted that he carried out the fraud from about February to April 2019, by falsely representing to the bank that the secretary of one of the bank’s customers requested that cashier’s checks be sent to Namatinga’s fraudulent company known as Keiko San Products Alimenticious, LLC. Namatinga is the registered agent for Keiko, and the four checks were mailed to his home address. Once the checks were deposited into Keiko bank accounts, Namatinga then transferred money from those accounts to his personal account or withdrew cash from those accounts.
In addition to the fraud committed through Municipal Trust & Savings Bank, Namatinga used his fraudulent business and multiple associated bank accounts to deposit and launder fraud proceeds from various other victims throughout the United States. Namatinga’s scheme, known as a business e-mail compromise scam, was just one such scheme in 2019 that resulted in more than 23,000 victims nationally, with an average loss of $75,000 per complaint, according to FBI crime statistics.
The FDIC Office of Inspector General conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
Colorado Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that NATHANIEL TSOSIE, 34, of Denver, Colorado was indicted by a federal grand jury on March 25, 2021, for being a felon in possession of a firearm. The indictment alleges that on or about February 12, 2021, in Johnson County, Wyoming, Tsosie who is a prior convicted felon, knowingly possessed firearms and brought them across state lines.
He appeared before United States Magistrate Judge R Michael Shickich on April 13, 2021 and pleaded not guilty to the sole charge of the Indictment. A jury trial has been set for June 14, 2021 in Cheyenne before Federal District Court Nancy D. Freudenthal.
A conviction for being felon in possession of a firearm carries a maximum penalty of 10 years in prison, $250,000 in fines, a $100 special assessment, and three years of supervised release. The charge against Tsosie is merely an accusation, and he is presumed innocent until proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Wyoming Division of Criminal Investigation, Johnson County Sheriff’s Office, Johnson County Attorney’s Office, Buffalo Police Department, and the Wyoming Highway Patrol. Assistant United States Attorney Timothy W. Gist is prosecuting the case.
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, download the memo.
Casper Man Charged with Possession of Child PornographyRead the Press Release
Acting United States Attorney Bob Murray announced today that KYLE DOUSSETT, 49, of Casper Wyoming was indicted by a federal grand jury on March 25, 2021, for one count of possession of child pornography. The Indictment alleges that on January 2, 2021, Doussett possessed a cell phone that contained digital images depicting prepubescent minors engaged in sexually explicit conduct.
He appeared before United States Chief Magistrate Judge Kelly H. Rankin on April 5, 2021 and pleaded not guilty to the sole charge in the Indictment. A jury trial has been set for May 24, 2021, in Cheyenne before Federal District Court Judge Alan B. Johnson. The maximum penalty upon conviction is 20 years in prison, a $250,000 fine, a $100 special assessment, a $5,000 special assessment pursuant to the Victims of Sex Trafficking Act of 2015, a $17,000 special assessment, and mandatory restitution of $3,000 per requesting victim pursuant to the Amy, Vicky And Andy Child Pornography Victim Assistance Act Of 2018, and five years to life supervised release.
The investigation is being conducted by U.S. Homeland Security Investigations Special Agent Nicole Bailey. Assistant United States Attorney Christyne M. Martens is prosecuting the case. The charge against Doussett is merely an accusation, and he is presumed innocent until proven guilty.
Businessman Charged with Failure to Pay Employment Taxes and Attempt to Obstruct the IRSRead the Press Release
A federal grand jury in Atlanta, Georgia, returned an indictment yesterday charging a Georgia man with failing to pay employment taxes and with obstructing the collection efforts of the IRS.
According to the indictment, from 2009 through 2018, Douglas Mittleider, of Adairsville, was in charge of several long-term care facilities located throughout the United States, and was responsible for withholding and paying employment taxes on behalf of his employees. Notwithstanding his obligations, Mittleider allegedly did not fully pay over these withholdings, resulting in an outstanding balance of more than $10,000,000 being owed to the IRS. From approximately November 2011 to the present, Mittleider allegedly attempted to obstruct IRS efforts to collect employment taxes that were due by filing false employment tax returns and directing payment of corporate funds to his family members instead of to the IRS.
The defendant’s initial court appearance will be scheduled at a later date in the U.S. District Court for the Northern District of Georgia. If convicted, he faces a maximum penalty of three years in prison on the obstruction charge and five years in prison on each of the other charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Guappone and Mitchell Galloway of the Justice Department’s Tax Division and Assistant U.S. Attorney Alana Black of the Northern District of Georgia 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.
Buffalo Man Pleads Guilty to Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Malik Matthews, 22, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorneys Meghan E. Leydecker and Paul C. Parisi, who are handling the case, stated that between June 2018 and October 2019, the defendant sold cocaine to an individual over 50 times. In addition, Matthews sold crack cocaine to an undercover police officer. On June 4, 2019, Buffalo Police Officers executed a search warrant at the defendant’s Grey Street residence. During the search they seized three loaded firearms, ammunition, two bags of suspected crack cocaine, five digital scales, a bottle of a cutting agent, and a box of sandwich bags.
The plea is the result of an investigation by the Buffalo police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for August 11, 2021, before Judge Sinatra.
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Billings drug trafficker involved in fake meth deal, shootout sentenced to more than seven years in prisonRead the Press Release
BILLINGS – A Billings man who admitted trafficking and firearms crimes after a fake methamphetamine drug deal led to a shootout was sentenced today to seven years and 10 months in prison and to five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Gregg Allen Johnson, 42, pleaded guilty on Oct. 29, 2020 to conspiracy to possess with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided. Johnson was detained.
In court documents filed in the case, the government alleged that on June 3, 2019, Johnson introduced co-defendant, James Higgins, to another individual in the parking lot of a Walmart in Billings so Higgins could buy a large quantity of meth from the individual. Higgins paid the individual $3,000 and received a package wrapped in black plastic that the individual said was meth. The individual, however, had provided Higgins with a brick of rock salt.
When Higgins realized he had been cheated, he, a friend and Johnson went to the individual’s residence to recover his money. Higgins, Johnson and the friend all were armed. No one answered when they pounded on the door. Shortly after the friend began to enter through a rear door, shooting started. Video from security cameras at the residence showed the friend firing his pistol into the home. Johnson later admitted firing his weapon and numerous shell casing found matched the caliber of the firearm he was carrying. There was no evidence that Higgins brandished or fired his firearm. Higgins has pleaded guilty in the case and is awaiting sentencing.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Austin Man Indicted for Transporting Aliens Resulting in DeathRead the Press Release
In Del Rio today, a federal grand jury returned an indictment charging 24-year-old Austin resident Sebastian Tovar with transporting illegal aliens resulting in death, announced U.S. Attorney Ashley C. Hoff and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
The indictment charges Tovar with one count of conspiracy to transport illegal aliens resulting in death, one count of transporting aliens resulting in death, one count of conspiracy to transport illegal aliens resulting in serious bodily injury and one count of transporting illegal aliens resulting in serious bodily injury.
According to court documents, on March 15, 2021, Tovar was traveling in a maroon pickup truck on FM 2523 near Del Rio when a Texas Department of Public Safety trooper attempted to stop him for speeding. Tovar failed to stop and a pursuit ensued. Tovar led the trooper on a chase for approximately 50 miles, at times reaching speeds over 100 miles per hour. Traveling north into the southbound lane on Highway 277, Tovar collided with another vehicle head-on, resulting in the death of eight illegal aliens that had been in Tovar’s pickup truck.
Border Patrol agents on the scene following the crash encountered a beige pickup truck stopped in traffic on Highway 277 near the crash site. While agents were directing traffic, multiple occupants jumped out of the beige pickup and fled the scene. Agents subsequently apprehended twelve illegal aliens who fled that truck. Four of the illegal aliens, all Mexican citizens, confirmed they were part of a failed human smuggling attempt in which the group illegally crossed into the U.S. and were divided between the maroon and beige pickup trucks for transport purposes.
Tovar, who remains in federal custody, faces up to life in federal prison upon conviction.
HSI and the Texas Department of Public Safety, with the assistance of the U.S. Border Patrol, conducted this investigation. Assistant U.S. Attorney Joshua B. Banister is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
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Appleton Restaurant Owner Indicted for Violations of Federal Tax LawsRead the Press Release
Acting U.S. Attorney for the Eastern District of Wisconsin Richard G. Frohling announced that on April 13, 2021, a federal grand jury returned an indictment charging Paul R. Vanderlinden (age: 42) of Appleton, Wisconsin, with violating federal tax laws.
The indictment alleges that Vanderlinden, as owner and operator of Muncheez Pizzeria in Appleton, skimmed approximately $800,000 from his business’s receipts between 2012 and 2016. According to the indictment, most of these receipts were deposited into Vanderlinden’s personal bank account, and Vanderlinden failed to report or pay taxes on this income. He is charged with four counts of filing false individual tax returns for calendar years 2012 through 2015.
The indictment further alleges that Vanderlinden used a large portion of these receipts to pay cash wages to his employees. Federal law requires employers to collect payroll taxes, and Vanderlinden is charged with failing to withhold and pay over the payroll taxes associated with these cash wages from the first quarter of 2014 through the fourth quarter of 2016.
Acting U.S. Attorney Frohling stated “As we approach the tax filing deadline, those who would seek to defraud the United States and cheat their hard-working fellow taxpayers should think twice. The Department of Justice and IRS-CI are fully committed to holding those who file false returns or seek to cheat on their taxes fully accountable for their criminal conduct.”
"Fulfilling individual and employee tax obligations is a legal requirement and those who willfully evade that responsibility will be prosecuted," said IRS Criminal Investigation Acting Special Agent in Charge Tamera Cantu, Chicago Field Office. “Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS. When employers fail to do so, it affects revenue to the United States government, but more importantly, it affects their employees Medicare and Social Security benefits.”
This investigation was undertaken by Special Agents from the Internal Revenue Service’s Criminal Investigation. It will be prosecuted by Assistant U.S. Attorney Farris Martini.
An indictment is only a charging document and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Angola Inmate Found Guilty on Drug Conspiracy ChargeRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Damione Brock, 42, was found guilty yesterday by a federal jury of conspiracy to possess with intent to distribute methamphetamine. United States District Judge Donald E. Walter presided over the trial.
Evidence introduced at the two-day trial revealed that in 2018, law enforcement agents with the Drug Enforcement Administration (DEA) began an investigation into drug trafficking activities in the Plain Dealing and Springhill areas of Louisiana. During their investigation, DEA agents sought approval to use wiretaps and were able to intercept phone calls and text messages between Brock and one of his co-defendants wherein they discussed having methamphetamine delivered to Brock at Angola. Brock, who was serving a lengthy sentence at Angola for possession of cocaine, was using a contraband cell phone to communicate with his co-defendant. Brock had arranged for the methamphetamine to be brought to him at Angola, using two couriers, one which was a female who worked at the prison as a corrections officer.
DEA agents surveilled the transportation of the methamphetamine, which was hidden in fake soda cans and was driven from Bossier City to Alexandria by one of Brock’s co-defendant/couriers. The courier put the package into the female officer/co-defendant’s vehicle, who then took the methamphetamine hidden in fake soda cans with the plan to take them with her into Angola when reporting for work. DEA agents alerted Louisiana Department of Corrections investigators to expect the female officer to try and enter the facility with the hidden narcotics. Agents were able to stop her at the gate at Angola and search the vehicle and found the methamphetamine and seized it prior to her entry into the facility.
Brock faces 10 years to life in prison and up to a $10,000,000 fine on the drug charge. Sentencing is set for August 18, 2021 at 10:30 a.m.
The DEA conducted the investigation. Assistant U.S. Attorneys J. Aaron Crawford and Brandon B. Brown prosecuted the case.
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After Two Years as a Fugitive, Former Teller at URW Credit Union in Danville Arrested on Federal Charges of Embezzling $617,000Read the Press Release
DANVILLE, Va. - Authorities in Durham County, North Carolina arrested Jorge Navarro, a former teller at URW Community Federal Credit Union in Danville, after two years of flight on federal charges of embezzling $617,000, Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Gerald W. Page of the Secret Service’s Richmond Field Office, announced today.
Navarro, 30, of Danville, was charged in a sealed indictment in October 2019 with one count of embezzlement and one count of passing counterfeit U.S. currency to URW Credit Union. The indictment was unsealed last week following Navarro’s arrest in North Carolina.
According to court documents, Navarro was the head teller at a branch of URW Community Credit Union. Between July 2017 and September 2018 Navarro allegedly embezzled $617,000 from the credit union, replacing the money he stole with counterfeit bills.
Following the illegal activity alleged in the indictment, Navarro fled and remained a fugitive until his arrest on March 31, 2021 in North Carolina. According to court documents filed in the Middle District of North Carolina, on March 31, 2021, Durham, N.C. police responded to a report of gunshots. When officers arrived, they encountered Navarro, who was using a fake name. Navarro was covered in blood and fleeing the scene of the reported gunfire. Police searched an apartment being used by Navarro and discovered cocaine and several firearms. They also found multiple forms of false identification, leading to Navarro’s arrest.
The investigation of the case was conducted by the Secret Service and Danville Police Department. Assistant United States Attorney Rachel Swartz is prosecuting the case for the United States.
Acting U.S. Attorney Juan Antonio Gonzalez Invites Community to Virtual Town HallRead the Press Release
Miami, Florida – As we near the end of the Derek Chauvin trial, the former Minneapolis police officer charged with killing George Floyd, the U.S. Attorney’s Office for the Southern District of Florida will be hosting a District-Wide, Virtual Town Hall Discussion on Monday, April 19, 2021, starting at 6:00 p.m.
During the live-streamed, virtual conversation, participants will have the opportunity to engage the Acting U.S. Attorney for the Southern District of Florida, Juan Antonio Gonzalez, and various police and civic leaders about the social justice issues we currently confront. Acting U.S. Attorney Gonzalez encourages all members of the community to join the conversation.
“At this pivotal point for our country, it is important for the public to have a forum where they can ask questions and raise concerns, whether those are about the Chauvin trial and its possible outcomes or the path forward for policing and society.” said Acting U.S. Attorney Gonzalez. “The purpose of this Virtual Town Hall is to provide this forum and openly address these topics.”
Those who wish to join the April 19th Virtual Town Hall will have the opportunity to submit questions and comments during the discussion.
The public can join the town hall by visiting http://bit.ly/usaotownhall. If prompted, the meeting ID is 199 372 5333 and the password is townhall.
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13 April 2021
Woodsboro Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Jeffrey John White, age 53, of Woodsboro, Maryland, pleaded guilty today to the federal charge of possession of child pornography. At the time of his federal offense, White was on supervised probation for a previous conviction for similar conduct in Montgomery County Circuit Court.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith III.
According to his guilty plea, White was previously convicted of two counts of possession of child pornography in the Circuit Court of Montgomery County on September 25, 2014. The conviction arose from White’s possession of almost 10,000 files of child sex abuse material. For that conviction, White was sentenced to five years imprisonment, suspended and five years of supervised release. On September 30, 2015, White was found to have violated his probation and was sentenced to five years in prison with all but 18 months suspended, followed by four years of supervised probation.
From April 14, 2020 through July 2020, while on supervised probation for his previous child pornography conviction, White began to use a peer-to-peer file sharing network to access, distribute and possess child pornography. On three separate dates during April 2020, investigators with the Frederick County Sheriff’s Office were able to establish twenty direct connections with a device, later determined to be White’s laptop and SD card, to view and download known files of child pornography, including a one hour and thirty-nine second video depicting a prepubescent 12-year-old victim displaying her genitals.
On July 6, 2020 investigators from the Frederick County Sheriff’s Office and the Federal Bureau of Investigation executed a search warrant at White’s Woodsboro residence and seized White’s laptop and SD card. At that time, White claimed ownership of his laptop, however he claimed he did not know how to access the encrypted laptop. White also claimed to have no knowledge of child pornography activity on the file sharing network. Additionally, a child-sized sex-doll with an anal and vaginal opening was located during the execution of the search warrant.
Federal agents were able to decrypt White’s laptop and forensically examine its hard drive, recovering 7,000 unique images and more than 240 unique videos of child pornography. Child pornography found on White’s laptop was similar to the images investigators initially downloaded from White’s IP address. In addition, thousands of child erotica files were also discovered on White’s laptop and SD card.
As part of his plea agreement, White will be required to continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
White faces a mandatory minimum sentence of 10 years in federal prison and a maximum of 20 years in federal prison for possession of child pornography. U.S. District Judge Stephanie A. Gallagher has not yet scheduled a sentencing date for White.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, Frederick State’s Attorney’s Office, the Frederick Sheriff’s Office, and the Frederick County Cyber Crimes Task Force for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland, Jr. and Special Assistant U.S. Attorney Joyce King, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Wheeling woman admits to failing to registerRead the Press Release
WHEELING, WEST VIRGINIA – Bobbi Jo Starry, of Wheeling, West Virginia, has admitted to a sex offender registry charge, Acting United States Attorney Randolph J. Bernard announced.
Starry, 55, pled guilty today to one count of “Failure to Register.” Starry, who is required to register as a sex offender, admitted to failing to update her registry from January to August 2020 in the Northern District of West Virginia and elsewhere.
Starry faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Wheeling man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Devon Alexander Bertram, of Wheeling, West Virginia, was sentenced to 15 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Bertram, also known as “VON,” 31, pled guilty to one count of “Distribution of Cocaine Base within 1000 Feet of a Protected Location” in January 2021. Bertram admitted to selling cocaine base or “crack” near The Linsly School in March 2020 in Ohio County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Wausau Man Sentenced to 30 Months for Tax EvasionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Leonard Kersten, 55, Wausau, Wisconsin, was sentenced on April 9 by U.S. District Judge William M. Conley to 30 months in federal prison, followed by three years of supervised release, for tax evasion. Kersten pleaded guilty to the charge on January 22, 2021. He was ordered to report to federal prison on May 24, 2021. He was also ordered to pay restitution of $347,979.96 to the Internal Revenue Service.
Kersten evaded taxes by failing to report as income $1.7 million he embezzled from his employer between 2007 and 2017. He used his position as a company accountant to embezzle funds by issuing checks to himself or his spouse. He then altered the company’s accounting records to make it appear that the checks were issued to pay legitimate company suppliers.
Under federal law, even embezzled funds are considered income for tax purposes. Kersten admitted at his guilty plea hearing that he knew the tax returns he filed were false because he knew the funds he embezzled were supposed to be included as income. By willingly failing to report the additional embezzled income on his tax returns, Kersten and his spouse paid approximately $350,000 less in taxes than they should have. This created a tax due and owing under federal tax law.
The charges against Kersten were the result of an investigation conducted by IRS Criminal Investigation. The United States also recognizes the assistance of the Office of the U.S. Trustee for the Western District of Wisconsin. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Utah Man Admits Illegal Sale of Sexual Enhancement DrugsRead the Press Release
NEWARK, N.J. – A Utah man today admitted illegally selling erectile dysfunction pills that he falsely marketed as herbal supplements for men, Acting U.S. Attorney Rachael A. Honig announced.
Robert Zeng, 55, of Salt Lake City, Utah, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of introducing a misbranded drug into interstate commerce with intent to defraud and mislead consumers.
According to documents filed in this case and statements made in court:
Zeng was the owner of various businesses, including NutopiaUSA, which sold purported natural supplements online and through e-commerce websites. On Feb. 29, 2020, Zeng imported three kilograms of sildenafil, an active ingredient in the brand name prescription drug Viagra, which is approved by the FDA for the treatment of erectile dysfunction. Zeng used the sildenafil to manufacture an unapproved and misbranded drug named “Mr. Richard Rocks.”
Zeng falsely marketed and labeled Mr. Richard Rocks as a dietary supplement containing only natural ingredients that treated erectile dysfunction, enhanced sexual performance, improved mood, and reduced blood sugar and cholesterol. The labeling for Mr. Richard Rocks did not disclose the presence of sildenafil, reveal the potentially adverse health consequences that may result from using a product containing sildenafil, nor provide adequate directions for use. Zeng sold Mr. Richard Rocks on the Nutopia website and on e-commerce platforms to consumers across the United States, including in New Jersey, without requiring a prescription.
The felony misbranding charge to which Zeng pleaded guilty carries a maximum penalty of three years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss, whichever is greater. Sentencing is scheduled for Aug. 26, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the FDA Office of Criminal Investigations’ New York Field Office, under the direction of Special Agent in Charge Jeffrey J. Ebersole, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office, District of Utah, under the direction of Acting U.S. Attorney Andrea T. Martinez, and the FBI-Utah, under the direction of Special Agent in Charge Dennis W. Rice in Salt Lake City, Utah.
This case originally arose out of the COVID-19 Hoarding and Price Gouging Task Force led by the U.S. Attorney’s Office for the District of New Jersey, which is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Hidden active pharmaceutical ingredients have been identified in products promoted not only for sexual enhancement, but also for weight loss, bodybuilding and pain relief. The FDA has issued hundreds of public warnings and recall announcements related to these types of fraudulent products. The FDA’s Tainted Products database can help consumers identify some of these potentially harmful products. Even if a product is not included in the list, consumers should be cautious about using these products.
Union County Man Arrested for Robbing BankRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today for robbing a bank in Rutherford, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Senenca Wilson, aka “Seneca Wilson,” 42, of Clark, New Jersey, was arrested today and charged by complaint with one count of bank robbery. He is scheduled to make his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
On April 7, 2021, at 4:12 p.m., Wilson entered Victim Bank-1 in Rutherford wearing a thin windbreaker over a dark t-shirt with a white logo. Wilson was also wearing a dark New York Yankees baseball cap, sunglasses, a neck gaiter over his face, and a glove on his left hand.
Wilson handed the teller a note demanding money with no straps on the bills. The teller put currency into a white plastic bag that Wilson provided. Wilson took the bag of cash and walked out of the bank. Moments later, a doorbell video camera on a nearby residence recorded footage of Wilson running south down the sidewalk away from Victim Bank-1. A few seconds later, a car registered to Wilson was seen driving away from the area, and .the Yankees baseball cap that Wilson wore during the robbery was found by law enforcement in a recycling bin near Victim Bank-1
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Government and State of Illinois Announce Agreement with ExxonMobil’s Joliet Refinery to Reduce Air PollutionRead the Press Release
The Justice Department, U.S. Environmental Protection Agency (EPA) and the State of Illinois have announced an amendment to the 2005 Clean Air Act (CAA) consent decree signed with ExxonMobil Oil Corporation to resolve violations at its petroleum refinery in Joliet.
“This new agreement requires ExxonMobil to clean up its act and pay penalties for its past violations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “EPA and our Illinois state partner deserve credit for policing ExxonMobil’s compliance with the Clean Air Act and our prior settlement with the company.”
“I’m pleased that the agreement announced today with ExxonMobil will reduce air emissions from their Joliet refinery,” said Acting Assistant Administrator for Enforcement and Compliance Assurance Larry Starfield of the EPA. “The result will be cleaner air for communities in Illinois and lower environmental impacts.”
The consent decree amendment will reduce air pollution through upgrades and improvements and address violations of the 2005 consent decree and the CAA. ExxonMobil will make physical and operational changes to its sulfur recovery plant that will reduce emissions of hydrogen sulfide and sulfur dioxide and will meet a lower sulfur dioxide emission limit at its north sulfur recovery unit. ExxonMobil will also make physical and operational changes to the emission controls for its fluidized catalytic cracking unit, also referred to as the FCCU, and it will meet lower emission limits for sulfur dioxide and nitrogen oxides at the FCCU.
To address leak detection and repair violations, ExxonMobil will update its program to include procedures for properly monitoring valves that are covered in insulation or that are located inside fireboxes. ExxonMobil will also use an optical gas imaging camera to monitor its open-ended lines for leaks. To address continuous emissions monitoring system violations, ExxonMobil will develop a comprehensive plan to ensure implementation and compliance with regulatory requirements.
Under the consent decree amendment, ExxonMobil will pay $1,515,463 in penalties, $1,086,640 to the federal government and $428,823 to the State of Illinois. The amendment also includes an estimated $10 million of improvements to reduce air emissions from the facility.
Today’s settlement, lodged with the U.S. District Court for the Northern District of Illinois, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree amendment or to submit a comment, visit the Justice Department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the 2005 consent decree and the consent decree amendment with ExxonMobil: https://www.epa.gov/enforcement/exxonmobil-refinery-settlement.
Two Southern Illinois Amtrack Stations Part of $2.25 Million Justice Department SettlementRead the Press Release
Patrons of two Amtrak stations in the Southern District of Illinois may be eligible for compensation as part of a recent Justice Department settlement. On January 29, federal authorities announced that a $2.25 million fund had been established to compensate travelers with a mobility disability who were harmed physically or emotionally because of accessibility issues at 78
Amtrak stations nationwide between 2013 and 2020. Included in the settlement were Amtrak stations in Centralia and Effingham, Illinois. According to Justice Department officials, those stations did not meet the accessibility requirements of the Americans with Disabilities Act (ADA).
The stations in Centralia and Effingham were on a long list of stations where passenger platforms were not readily accessible to individuals with disabilities. Although the specific issues were not disclosed, examples include steep slopes, no detectable warnings at the platform edges, and ground surfaces that were not stable, firm, and slip resistant. The Effingham station was also cited for not having accessible bathrooms. Some of the violations at other stations covered in the settlement include inaccessible parking, lack of directional signs, high ticket counters, and deteriorated platforms.In total, nine Amtrak stations in Illinois were cited by the Justice Department as non-ADA compliant, more than any other state. Aside from the stations in Centralia and Effingham, the others were located in Gilman, Homewood, Mattoon, Plano, Princeton, Rantoul, and Summit.
Three Missouri stations were also included in the settlement: Kirkwood, La Plata, and Poplar Bluff.To be eligible for monetary compensation, travelers must have a mobility disability and must have been harmed due to inaccessibility issues at one or more of the affected stations from July 23, 2013 to December 2, 2020. All claims must be submitted no later than May 29, 2021. Other restrictions may apply. Questions about the claims process should be directed to the settlement administrator by any of the following methods:
• Visit AmtrakDisabilitySettlement.com
• Email your name, address, and phone number to [email protected]
• Call the Fund Administrator at (888) 334-6165 or TTY: (866) 411-6976.
Help is available for those who are unable to complete the claim form due to a disability.As part of the settlement agreement, Amtrak has committed to make its intercity rail stations accessible, prioritizing stations with the most significant barriers to access. Over the next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at
90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on
ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. In demonstrating its commitment, Amtrak has already established an Office of the Vice President of
Stations, Properties & Accessibility to coordinate its compliance with the ADA.
The settlement agreement with Amtrak was negotiated as part of a lawsuit filed by the Disability
Rights Section of the Justice Department’s Civil Rights Division. A copy of the complaint can be found by visiting www.ada.gov/amtrak_comp.html. The settlement agreement is also available online at AmtrakDisabilitySettlement.com. For more information on the Civil Rights
Division, visit www.justice.gov/crt. For more information on the ADA, please call the toll-free
ADA Information Line at 800-514-0301 (TTY 800-514-0383) or visit www.ada.gov.Twelve Individuals Indicted and Arrested for Unemployment Benefits and Pandemic Unemployment Assistance (PUA) FraudRead the Press Release
SAN JUAN, P.R. – On April 7 and 8, 2021, the Federal Grand Jury in the District of Puerto Rico returned eleven separate indictments charging twelve (12) individuals with fraud against the Unemployment Insurance and Pandemic Unemployment Assistance Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. These cases were investigated by various federal agencies, including the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS), the United States Department of Labor Office of Inspector General (USDOL-OIG), the Social Security Office of Inspector General (SSA-OIG), and the United States Postal Service Office of Inspector General (USPS-OIG), with the assistance of local law enforcement officials from the Puerto Rico Police Bureau (PRPB), Puerto Rico Department of Labor and Human Resources, Puerto Rico Office of Inspector General (PR-OIG), and the Puerto Rico Department of Treasury (Hacienda).
According to the indictments, the defendants engaged in schemes to defraud the Puerto Rico Department of Labor and Human Resources (Departamento del Trabajo y Recursos Humanos, “DTRH”) by submitting fraudulent applications for unemployment insurance benefits, including Pandemic Unemployment Assistance (PUA) benefits. The false information submitted included false social security numbers and false employment information. The loss associated with these cases totals $419,580.
Under the PUA provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a person who is a business owner, self-employed worker, independent contractor, or gig worker qualified for PUA benefits administered by the DTRH if he/she previously performed such work in Puerto Rico and was unemployed, partially unemployed, unable to work, or unavailable to work due to a COVID-19 related reason.
To obtain these federal benefits, individuals could apply online through the DTRH’s web site—www.trabajo.pr.gov. Claimants answered various questions to establish their eligibility. Furthermore, claimants were required to provide personal identifying information, which included their name, mailing address, gender, email, phone number, social security number, and date of birth (collectively referred to as personal identification information). Moreover, claimants had to identify a qualifying occupational status and COVID-19 related reason for being out of work. Claimants could also submit several documents as evidence of their income.
If the DTRH approved the claimant’s application, the DTRH would send a check to the claimant via United States Postal Service for qualified benefits which could contain regular Unemployment Insurance (UI) benefits and federal funds in the form of Pandemic Emergency Unemployment Compensation (PEUC), PUA, and Federal Pandemic Unemployment Compensation (FPUC) benefits.
Ten indictments charge nine individuals with theft of government property and mail fraud. The defendants engaged in deceptive conduct designed to fraudulently obtain multiple unemployment checks from the DTRH by using false social security numbers. The defendants received UI benefits from the DTRH via mail in the form of checks that they were not qualified or authorized to receive. The defendants negotiated the various check fraudulently obtained from the DTRH.
The defendants charged in nine related indictments are: Millisen M. Martínez-Medina, who fraudulently obtained $54,870; her consensual partner Luis Cruz-Reyes, who fraudulently obtained $64,992; Jonathan Rivera-Gutiérrez, who fraudulently obtained $44,148; Jennifer Hernández-Romero, who fraudulently obtained $36, 222; Mary L. Benitez-Ortiz, who fraudulently obtained $32,628; Daniel Colón-Díaz, who fraudulently obtained $68,250; Gabriel A. Robles-Guzmán, who fraudulently obtained $33,030; Denisse Sánchez-Ortiz, who fraudulently obtained $23,172; and Luis A. Flores-Díaz, who fraudulently obtained $20, 910.
Defendant Millisen M. Martínez-Medina is also facing two counts of aggravated identity theft for using other people’s Social Security numbers without their authorization, during and in relation to a felony, that is, the mail fraud scheme.
In another indictment, defendants José Daniel Le Hardy-Figueroa, a U.S. Postal Employee, and Christoffer Pérez-Vélez, are charged with conspiracy to commit mail fraud, mail fraud and theft of government moneys in an amount of $11,388. The defendants conspired to fraudulently represent to the DTRH that José Daniel Le Hardy-Figueroa was an unemployed barber, when in fact he was a mail carrier employed by the United States Postal Service.
In the final indictment, defendant Félix R. Cruz-Santana, who fraudulently obtained $29,970, is charged with mail fraud, theft of government money, and misuse of a social security number.
“These defendants participated in a scheme to capitalize on the pandemic by filing fraudulent PUA applications and illegally enriching themselves at the expense of the government and taxpayers,” said U.S. Attorney Muldrow. “The United States Department of Justice, along with our state and federal counterparts, will continue to aggressively pursue those who seek to illegally exploit the ongoing national emergency for their own benefit. We commend the outstanding work and collaboration of our law enforcement partners in the investigation of these cases.”
Special Assistant U.S. Attorney (SAUSA) Vanessa D. Bonano-Rodríguez from the Social Security Administration; SAUSA Camille García-Jiménez from the United States Postal Service, and Assistant U.S. Attorney Victor Acevedo are in charge of the prosecution of these cases. If convicted, the defendants are facing the following sentences: 20 years of imprisonment for mail fraud and conspiracy to commit mail fraud; 10 years of imprisonment for theft of government money; and 5 years of imprisonment for misuse of Social Security number, a fine of up to $250,000 and three years of supervised release. Defendant Millisen M. Martínez-Medina also faces a two-year mandatory term of imprisonment for the aggravated identity theft charge.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
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Three Auburndale Men Each Sentenced to Fourteen Years in Prison for Brandishing Firearms During Convenience Store RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Eddrick Wright (25, Auburndale), Kaylob Davis (23, Auburndale), and Amere Benjamin (22, Auburndale) each to 14 years in federal prison for brandishing firearms while they were robbing convenience stores in Lutz and New Port Richey. The court also ordered the defendants to forfeit the firearms and make restitution to the victims.
Wright, Davis, and Benjamin each had previously pleaded guilty to two counts of brandishing a firearm during and in relation to a robbery.
According to court documents, during the early morning of December 14, 2019, Wright, Davis, and Benjamin robbed two convenience stores, about an hour apart. In each case, they entered the store, pointed firearms at the clerks, ordered them to open the registers, and took cash. They also took products from the stores and personal property from the store employees. During the robberies, the defendants wore masks, including a Darth Vader mask.
Approximately two hours after the second robbery, Florida Highway Patrol pulled over a vehicle that Wright was driving and in which Davis and Benjamin were passengers. During a search of the vehicle, the FHP trooper found firearms, a Darth Vader mask, credit cards, and a driver license belonging to the convenience store employees.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Hillsborough County Sheriff’s Office, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Texas Tax Preparer Charged with Filing False ReturnsRead the Press Release
A federal grand jury in Waco, Texas, returned an indictment today charging a Texas tax preparer with 11 counts of assisting in the preparation of false tax returns.
According to the indictment, Rossalynn Thomas operated TaxPros, a tax return preparation business in Temple. Between November 2014 through January 2017, Thomas allegedly falsified clients’ tax returns by claiming, among other things, false business income and education credits in order to generate tax refunds. The indictment further alleges that one of Thomas’s clients was an IRS agent acting in an undercover capacity. Thomas allegedly prepared a tax return for the IRS agent that falsely claimed charitable contributions and unreimbursed business expenses.
If convicted, Thomas faces a maximum sentence of three years in prison for each count. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert A. Kemins and Matthew C. Hicks of the Justice Department’s Tax Division 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.
Tarentum Felon Charged with Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Sean Marcus Talley, 21, formerly of Tarentum, PA, as the sole defendant.
According to Indictment, on or about January 28, 2020, Sean Marcus Talley, a convicted felon, possessed a firearm and ammunition. Federal law prohibits a convicted felon from possessing a firearm.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Kensington Police Department conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Springfield Man Pleads Guilty to Racketeering Offenses Relating to ProstitutionRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to racketeering offenses relating to the promotion of commercial sex.
Kevin Smoot, 59, pleaded guilty to one count of conspiracy to use a facility of interstate commerce to promote prostitution offenses and seven counts of use of a facility of interstate commerce to promote prostitution offenses. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 19, 2021. On June 26, 2020, Smoot was arrested and charged by complaint. He was indicted in July 2020.
Between February 2019 and June 2020, Smoot conspired with others to promote commercial sex involving several women. Smoot promoted prostitution by transporting women to and from commercial sex appointments, recruiting and encouraging women to engage in commercial sex acts for money, and helping to procure illegal drugs for use by drug-addicted women engaged in commercial sex. Smoot promoted prostitution by providing a residential location for commercial sex acts between female victims of sex trafficking and male customers, taking actions to collect money from male customers, and benefiting from the proceeds of commercial sex acts performed by female victims of sex trafficking.
The charging statutes provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Massachusetts Attorney General Maura Healey; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner Cheryl Clapprood made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
Spencerport Man Going to Prison Following Child Sex StingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Greco, 25 of Spencerport, NY, who was convicted of attempted receipt of child pornography, was sentenced to serve 70 months in prison and 15 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that in January 2020, the defendant engaged in online conversations with an individual who Greco believed was a mother engaged in the prostitution of her 13-year-old daughter. In fact, the “mother” was an undercover New York State Police (NYSP) investigator. Between January 2 and January 7, 2020, the defendant exchanged text messages and phone calls with the investigator, during which Greco agreed to pay $100 in order to have sex with the 13-year-old child.
On January 7, 2020, the defendant traveled to a pre-arranged destination, expecting to meet the child for sex. Instead, Greco was taken into custody by the NYSP and Homeland Security Investigations. The defendant was in possession of $100, which was the price he negotiated to have sex with the child, as well as condoms and candy for the child. A subsequent search of his cell phone revealed that Greco attempted to receive child pornography via the Internet.
The sentencing is the result of an investigation by the NYSP Troop E Major Crimes Unit, Canandaigua, under the direction of Major Barry Chase, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Second Managing Partner of Investment Advisory Firm Pleads Guilty to Defrauding Clients and Investors in over $100 Million Ponzi-Like Fraud SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that MARTIN SILVER, a managing partner and the chief operating officer of the New York-based investment advisory firm International Investment Group (“IIG”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to investment adviser fraud, securities fraud, and wire fraud offenses in connection with an over $100 million scheme to defraud IIG’s investment advisory fund clients and investors. Throughout the course of more than 10 years, SILVER perpetrated the scheme by, among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. In connection with his plea agreement, SILVER has also agreed to cooperate with the Government’s ongoing investigation.
Manhattan U.S. Attorney Audrey Strauss said: “Today, Martin Silver admitted to participating in a sophisticated, decade-long scheme to defraud IIG funds and investors, abandoning his fiduciary responsibilities to IIG’s clients, and causing millions of dollars of losses. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.”
According to the allegations contained in the Information and based on statements made in Manhattan federal court:
Background of IIG
SILVER and a co-conspirator (“CC-1”) founded IIG in 1994. SILVER was a managing partner and the chief operating officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”), (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”), and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”). IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.
IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products. IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.
Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG and, in turn, SILVER, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
The Scheme
From approximately 2007 to 2019, SILVER conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.
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MARTIN SILVER, 63, of New Jersey, pled guilty to one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution.
San Diego Woman Pleads Guilty to Conspiracy to Launder Almost $600,000 from Department of Defense Bribery SchemeRead the Press Release
Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Carling Donovan (619) 546-4343
NEWS RELEASE SUMMARY – April 13, 2021
SAN DIEGO – Liberty Gutierrez pleaded guilty today to conspiring to launder the proceeds of a bribery scheme involving a former employee of the Naval Information Warfare Center in San Diego, California, and various defense contractors.
According to Gutierrez’s plea agreement, the Naval Information Warfare Center employee, identified in court documents as “Individual-1,” solicited and accepted things of value from various defense contractors, including three defense contractors identified in her plea agreement as Contractor-1, Contractor-2, and Contractor-3.
Among these gifts were jobs for friends and family, tickets to premier sporting events, and expensive dinners. Gutierrez further admitted that Individual-1 solicited jobs for Gutierrez from these contractors. Although Gutierrez was employed full-time at a real estate and mortgage company in San Diego from April 2015 to February 2021, Individual-1 nonetheless obtained “full-time” jobs for Gutierrez at Contractor-1 from approximately October 2015 to September 2018; Contractor-2 from approximately April 2017 to July 2019; and Contractor-3 from approximately October 2018 to December 2019.
As part of her plea agreement, Gutierrez admitted to doing only minimal work at each of these jobs, and then falsely billing her time as if she were working full time on a government contract. Each of the contractors then passed along Gutierrez’s fraudulent labor charges to the United States Government for payment. Gutierrez further admitted that she agreed to give Individual-1 half of her salary from Contractor-2, or approximately $2,000 every month, in cash, some of which Individual-1 stashed in his golf bag. In total, Gutierrez kicked back over $60,000 in cash to Individual-1 under this arrangement. As part of the conspiracy, Individual-1 additionally secured a job for his wife at Contractor-1 in approximately January 2017.
As alleged in the Information, in exchange for these and other gifts, Individual-1, who was certified as a Contracting Officer Representative as part of his job at Naval Information Warfare Center, used his position to steer millions of dollars of contracts to his favored contractors. For example, Individual-1 ensured that Contractor-1 was awarded a $3 million “Other Transaction Authority,” a federal procurement vehicle, at the same time he was soliciting a job for Gutierrez from Contractor-1.
Similarly, Individual-1 ensured that Contractor-2 was awarded a $300 million ceiling task order, while working with an executive vice-president at Contractor-2 to create the “job” for Gutierrez at the company. After Gutierrez was employed by Contractor-1, Contractor-2, and Contractor-3, Individual-1 continued to ensure that the companies received lucrative Department of Defense contracts and subcontracts. As further alleged in the Information, Individual-1 knew that Gutierrez’s labor charges for each of the contractors was false, but nonetheless approved invoices containing the fraudulent charges.
Gutierrez admitted that as part of the conspiracy she received $593,210.09 in salary payments from Contractor-1, Contractor-2, and Contractor-3, which were intended to promote the bribery scheme and conceal and disguise the nature, source, and ownership of the proceeds of the bribery.
“Bribery and public corruption have no place in government contracting, and will be aggressively investigated and prosecuted,” said Acting United States Attorney Randy S. Grossman. Grossman praised federal prosecutors Michelle Wasserman and Carling Donovan, as well as agents and investigators from Defense Criminal Investigative Service, Naval Criminal Investigative Service, Small Business Administration – Office of Inspector General, Internal Revenue Service Criminal Investigation, Department of Health and Human Services – Office of Inspector General, Naval Audit Service and Defense Contract Audit Agency for their outstanding work on this case.
Defense Criminal Investigative Service (DCIS) Special Agent in Charge Bryan Denny, Western Field Office, stated “This case offers an especially egregious example of corruption and the abuse of a position of public trust. The DCIS is committed to working with our law enforcement partners and the Department of Justice to ensure that all such crimes are discovered and fully prosecuted.”
“This should serve as a warning that those who seek to defraud the Department of the Navy will always be uncovered and brought to justice,” said NCIS Economic Crimes Field Office Special Agent in Charge Eric Maddox. “Ms. Gutierrez’s deliberate actions to perpetuate this scheme by accepting hundreds of thousands of dollars meant to support Department of Defense contracts wasted American taxpayer money, damaged the integrity of the procurement process, and squandered valuable investigative resources that could have been directed elsewhere. NCIS and our investigative partners remain committed to rooting out fraud that threatens the readiness of the warfighter.”
“Conspiring to fraudulently use government programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG will aggressively root out fraud to protect the integrity of these programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Derrick Franklin, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Special Investigations Branch, stated, “We will continue to support our law enforcement partners in this investigation to preserve the integrity of government contracts.”
“Ms. Gutierrez and her co-conspirators exploited illegal avenues to benefit themselves with taxpayer dollars meant for military programs,” said IRS Criminal Investigation, Special Agent in Charge Ryan L. Korner. “They cheated honest, hardworking contractors out of jobs with their corruption. Our special agents will use their financial expertise to trace the proceeds of bribery back to these criminals, and we are proud to work alongside our law enforcement partners in that effort.”
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
DEFENDANT Case Number
Liberty Gutierrez Age: 61 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Money Laundering – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the property involved in the transaction, whichever is greater
AGENCY
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
Naval Audit Service
Defense Contract Audit Agency
San Diego Chiropractor Sentenced to Three Years in Prison for Multi-million Dollar Workers’ Compensation, Medicare, and TRICARE SchemesRead the Press Release
Assistant U. S. Attorney Valerie H. Chu (619) 546-6750
NEWS RELEASE SUMMARY – April 13, 2021
SAN DIEGO - Irvine resident Joserodel Zavala Candelario was sentenced in federal court yesterday to 36 months in federal custody for his participation in two huge health care fraud schemes, and for concealing income he received from those multi-million dollar schemes.
According to court documents, Candelario was a chiropractor licensed by the State of California Board of Chiropractic Examiners. He was the owner of Candelario Chiropractic, a Professional Corporation, and R.I.S.E. Medical Center, a Professional Corporation, dba R.I.S.E. Wellness Center ("RISE Wellness"), which operated at multiple locations in the Southern District of California, including at 5030 Bonita Road, Suite B, in Bonita and at 3231 Waring Road, Suite N, in Oceanside.
On January 21, 2020, the defendant pleaded guilty to a three-count superseding information, charging Conspiracy in violation of 18 U.S.C. § 371, Conspiracy to Commit Health Care Fraud in violation of 18 U.S.C. § 1349, and False Statement on Tax Return in violation of 26 U.S.C. § 7206(1). Separately, the defendant has been charged and has pleaded guilty in San Diego Superior Court case SCD281328 to Concealing an Event Affecting an Insurance Claim, in a violation of California Penal Code 550(b)(3).
The government’s sentencing papers reflect that, between approximately 2012 and July 2016, Candelario carried out a scheme to defraud Medicare and TRICARE out of millions of dollars by using physical therapy codes to bill for supposed physical therapy services performed on patients by individuals who were not licensed to provide physical therapy, including chiropractors, massage therapists, physical therapy aides, and an acupuncturist. As a result, patients who thought they were receiving medical treatment were instead receiving substandard care, all so Candelario could bill Medicare and TRICARE.
Candelario and his co-conspirators told patients that RISE Wellness offered an “integrated” approach to wellness, to convince patients to accept physical therapy, acupuncture, chiropractic, and diagnostic services at RISE Wellness, in order to fraudulently bill for non-covered services provided by unauthorized individuals, and collect as much money as possible from health care benefit programs.
Candelario specifically targeted TRICARE beneficiaries as patients, despite knowing that TRICARE did not cover many of the services rendered by providers at RISE Wellness. The main page for RISE Wellness’s website made this goal plain. It featured a photograph of an individual in a military uniform, saluting, with the message, “Supporting spinal health . . . You’ve only got one spine. Take great care of it with supportive chiropractic care,” even though TRICARE, the DoD health care program for uniformed service members, did not cover chiropractic treatment.
Once patients came in the door, the defendant pushed his staff to conduct diagnostic tests on every patient, regardless of medical necessity, to increase billing and payment, and he also demanded that staff meet quotas for the minimum number of diagnostic tests, and recommendations for durable medical equipment, or DME, massages and other services, regardless of whether specific patients needed the items and services. He also imposed quotas for the minimum number of patients with specific types of insurance coverage at RISE Wellness, e.g., “60 Tricare patients per day,” regardless of whether those patients needed treatments.
For example, on June 6, 2014, Candelario instructed a staff member, “I need you to do 5 axonii [diagnostic tests] a day no matter what for now on.” The following month, on July 7, 2014, Candelario texted, “OK team you are receiving 2 new diagnostic testing devices this month. I need 20 patients to be tested on each one this month no matter What [sic].”
Defendant then, knowing that TRICARE and Medicare did not pay for chiropractic, acupuncture, massages, and other services, mischaracterized those services as physical therapy in bills submitted to TRICARE and Medicare.
To increase billing and payment, the defendant pushed the schedulers to cram in as many as 50 patients per day for each provider. He complained when staff fell short of this goal, noting, on June 11, 2015, certain “front desk issues” including: “No[one] has called any patients to fill empty slots in provider schedules or grab patients in lobbies to put into provider schedules.”
Candelario fired or marginalized staff who disagreed with his efforts to prescribe, recommend, provide, or bill in a manner primarily intended to increase the billing and payment to RISE Wellness, and contrary to Medicare and Tricare rules and the medical need of the patients. On October 1, 2015, Candelario instructed that the chiropractors were “not allowed to treat” patients unless they first prescribed X-rays and three other diagnostic tests, plus DME. Eventually, on October 19, 2015, Candelario informed a co-conspirator, “I am finding it very difficult what needs we have [to retain the PA] moving forward.” About a week later, the PA was fired.
If a patient failed to show up for an appointment, Candelario directed staff to bill the health care benefit program for the visit, even though no visit had occurred and no service had been provided. For example, on March 9, 2015, Candelario wrote, about late reimbursements, that “the only solution is to start billing the missed appointments like i asked following the system.”
It was part of the scheme that, using the mean and manners described above, and others, the co-conspirators submitted and caused to be submitted at least $7,260,327.20 in false and fraudulent bills to TRICARE and Medicare. Of those fraudulent bills, TRICARE paid a total of $3,450,596.43 and Medicare paid $37,843.04.
In addition, between March 2012 and November 2015, Candelario carried on an unlawful cross-referral scheme, in which he would receive new Workers’ Compensation (“WC”) patients for RISE Wellness. In return for new patients, Candelario agreed to meet a quota for the “value” of ancillary services and DME he was expected to prescribe for each patient sent to him by co-conspirators, with a “value” -- such as $30-$50 per MRI referral -- set by those conspirators. As part of the scheme, Candelario, who could function as a WC primary care provider, dictated the same treatment plan for all WC patients, regardless of their individual medical needs, so he could fraudulently bill WC insurers. The defendant admitted that he violated his duty of honest services to his patients. He received approximately 529 new WC patients as a result of the scheme, and he submitted approximately $6,605,364 in bills to insurers for services rendered to those patients. Of those billed amounts, he was paid $771,000 by WC insurers
In addition to fleecing taxpayer-funded government programs out of millions of dollars, Candelario failed to pay his fair share of taxes on the funds he fraudulently took, resulting in $505,000 in tax losses just for tax year 2013.
Judge Bashant credited the rehabilitative efforts the defendant has made since his conviction to improve his circumstances. Statements in sentencing papers and in court reflect that the defendant has been teaching as an adjunct instructor at West Coast University, Canyon College, Santa Ana College, Orange Coast College, and National University, in such topics as human anatomy, human physiology, biology, Medical Ethics and Medical Billing. But in aggravation, the Court noted that Candelario “put profits over the medical needs of patients,” which warranted punishment.
“With so many health care systems and personnel strained due to the pandemic, we cannot afford the financial and physical costs of fraud,” Acting U.S. Attorney Randy Grossman noted. “Doctors are especially culpable as they are violating the sacred trust they should have with their patients. We are working hard every day to protect patients, taxpayers and ratepayers who are being exploited by those members of the medical community who prefer purchasing power over principle.” Mr. Grossman commended the work of AUSAs Valerie H. Chu and Michelle Wasserman, forensic auditor Robbin Ganicliffe, and paralegal Joan Carter, and the case agents from the FBI, DCIS, and IRS-CI.
“With this sentence, the defendant has now been held accountable for the years of lies and deceit in defrauding our healthcare system,” said FBI Special Agent in Charge Suzanne Turner. “Let this sentence serve as a warning to those who intentionally try to line their pockets through fraud schemes rather than provide the honest service and care people deserve.”
The defendant requested a delay of the self-surrender date until after grades are due to be submitted for the current school term he is teaching. The defendant is scheduled to self surrender on or before July 14 at noon. A hearing to address forfeiture and restitution will be held on May 19 at 2 p.m. The United States is seeking restitution of $3,450,596.43 to TRICARE, $37,843.04 to Medicare, and a personal money judgment of $1,300,899.63.
DEFENDANT Case Number 18CR3057-BAS, 18CR3058-BAS
Joserodel Zavala Candelario Age: 48 Irvine, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: Ten years’ imprisonment and $250,000 fine
Subscribing to a False Tax Return - 26 U.S.C. §7203(1)
Maximum penalty: Three years’ imprisonment and $100,000 fine
AGENCIES
Federal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service – Criminal Investigations
California Department of Insurance
Rochester Man Sentenced to Five Years for Participating in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD – William McKay, 48, of Rochester, was sentenced to 60 months in federal prison for participating in a conspiracy to possess with the intent to distribute, and to distribute, methamphetamine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, McKay conspired with James Nesbit and Haley Hansler to distribute crystal “ice” methamphetamine. In 2018, McKay ordered three packages totaling approximately 742 grams of “ice” methamphetamine from vendors on the Dark Web that were intended for McKay’s personal use and for McKay, Nesbit and Hansler to distribute to drug customers in New Hampshire.
McKay previously pleaded guilty on October 23, 2020. In April 2020, Hansler was sentenced to 60 months in federal prison. James Nesbit was sentenced in November 2020 to 120 months in federal prison.
“Methamphetamine is a dangerous and addictive drug that can ruin lives and damage communities,” said Acting U.S. Attorney Farley. “We are working closely with our law enforcement partners to identify and prosecute the drug traffickers who are distributing methamphetamine in the Granite State. As this case demonstrates, those who choose to sell methamphetamine in New Hampshire will face substantial consequences for their unlawful conduct.”
“DEA stands committed to keeping highly addictive drugs like methamphetamine and fentanyl off the streets of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. McKay accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in America. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the DEA’s Tactical Diversion Squad, the New Hampshire State Police, the United States Postal Inspection Service, and the Strafford County Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Rhode Island Man Allegedly Swindled Victims Who Thought They Were Investing in Las Vegas Show Based on 'Magic Mike' FilmsRead the Press Release
LOS ANGELES – A Rhode Island man was arrested this morning on federal charges alleging that he defrauded investors out of more than $4.2 million in connection with “Magic Mike Live,” a stage show at the Hard Rock Hotel and Casino in Las Vegas based on two Magic Mike films that chronicle the life of a male stripper.
John A. Santilli Jr., 47, of East Greenwich, Rhode Island, is named in a 10-count indictment unsealed today that charges him with one count of securities fraud, eight counts of wire fraud, and one count of aggravated identity theft. Santilli made his initial court appearance this morning in United States District Court in Rhode Island, where a judge ordered his release on a $100,000 bond.
According to the indictment, Santilli managed and partly owned Aloris Entertainment, LLC, which acquired an interest – through securities called “Class A Units” – in Mike’s Mobile Detailing, LLC, the company that operates the Magic Mike Live show in Las Vegas. Santilli raised funds from victims by soliciting investments in “Aloris Magic Mike LP,” a different business that he falsely told investors owned the Class A Units. Santilli allegedly lied to investors, telling them that, in return for their investment, they would receive “shares” in Aloris Magic Mike LP that corresponded to a particular number of Class A Units and entitled them to a percentage of the profits from “Magic Mike Live.” To bolster his false claims, the indictment states, Santilli used a doctored a legal document that made it appear that Aloris Magic Mike LP was a member (i.e., a shareholder) of Mike’s Mobile Detailing.
The indictment also states that Santilli misappropriated a significant portion of his victims’ investments, including withdrawing more than $1 million at casinos across the United States. To raise more funds, Santilli falsely told his victims that new investment opportunities had arisen, resulting in Santilli selling shares in his businesses that corresponded to nearly double the number of Class A Units of Mike’s Mobile Detailing that his company actually owned, the indictment alleges.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of all charges, Santilli would face a statutory maximum sentence of 182 years in prison.
The FBI is investigating this matter.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section is prosecuting this case.
Quincy Man Charged with Meth TraffickingRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Ill., man made his initial appearance in federal court today after he was charged by criminal complaint for alleged possession of methamphetamine with intent to distribute. Robert L. Tallent, 39, of the 500 block of S. 19th St., Quincy, Ill., was arrested shortly after midnight on Saturday, April 10, 2021, in Quincy.
During today’s audio/videoconference hearing, before U.S. Magistrate Judge Tom Schanzle-Haskins, Tallent waived a detention hearing and was ordered to remain detained in the custody of the U.S. Marshals Service. A preliminary hearing has been scheduled on April 15.
The complaint and supporting affidavit allege that on March 13, 2021, Tallent possessed approximately 19 grams of a crystal substance in six baggies, when Quincy police conducted a traffic stop on a vehicle driven by Tallent. At the time, Tallent had an outstanding Adams County warrant for a charge of possession of methamphetamine. According to the affidavit, the substance tested positive for methamphetamine in a field test.
If convicted, the statutory penalty for the offense is five to 40 years in prison.
The charge is the result of an investigation by the Illinois State Police West Central Illinois Task Force; the FBI – Springfield Division; the Quincy Police Department; and the Adams County Sheriff’s Office. Assistant U.S. Attorney Sarah Seberger represents the government in the federal case prosecution with the cooperation of the Adams County State’s Attorney’s Office.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
Pittsburgh Man Indicted for Possessing Fentanyl and a Fentanyl AnalogueRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Frederick Allen, 39, as the sole defendant.
According to the Indictment, on February 10, 2021, Allen is alleged to have possessed with the intent to distribute a quantity of fentanyl and fluorofentanyl.
The law provides for a maximum total sentence of 20 years in prison, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and DEA conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Obstruction of Justice Relating to Attempts to Acquire RicinRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty yesterday in federal court in Boston to obstructing an investigation into his efforts to acquire the deadly toxin, ricin.
Dr. Ishtiaq Ali Saaem, 37, of Allentown, Penn., pleaded guilty to one count of obstruction of justice. U.S District Court Judge Richard G. Stearns scheduled sentencing for Aug. 18, 2021.
According to court records, Saaem held a Ph.D. in biomedical engineering, resided in Massachusetts and worked as the director of advanced research at a biotechnology firm based in Massachusetts. Saaem became interested in acquiring ricin from castor beans as well as convallatoxin, a poison found in lily of the valley plants, after watching “Breaking Bad,” a popular television show. Saaem ordered online 100 packets of castor beans, each containing eight seeds. Saaem falsely told law enforcement agents that he purchased castor beans for planting at his apartment for decoration and that he had accidentally purchased 100 packets instead of one. After he spoke to agents, Saaem researched tasteless poisons that could be made at home.
During subsequent meetings with law enforcement personnel, Saeem stated that his interest in buying castor beans related to an interest in gardening. He also made misleading statements about his knowledge of ricin.
The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Owner of Southern Arizona Health Care Equipment Company Sentenced to 36 Months for Defrauding MedicareRead the Press Release
TUCSON, Ariz. – On April 9, Frances Jones, 52, of Chandler, Arizona, was sentenced to 36 months in prison by U.S. District Court Judge John C. Hinderaker. Jones previously pleaded guilty to health care fraud.
Jones, a licensed Medicare provider of durable medical equipment and the owner and operator of Oxicheck Northwest, admitted that she fraudulently billed Medicare between 2011 and March 2018 for durable medical equipment that was not provided to patients. Jones also used Medicare patient and medical provider identification without their knowledge or consent.
The Court ordered Jones to pay $862,762.32 in restitution for losses incurred by the Medicare Program as a result of her fraudulent scheme.
“This sentencing demonstrates the seriousness of Ms. Jones’ actions. Stealing Medicare funds and patients’ medical identities is not a victimless crime,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With the aid of our law enforcement partners, we will continue protecting federal health care programs.”
The U.S. Attorney’s Office reminds Medicare recipients to monitor their Medicare billing statements to ensure that the services documented were provided. To report any suspected Medicare Fraud, call 1-800-MEDICARE (1-800-633-4227).
The Department of Health and Human Services-Office of the Inspector General and the Federal Bureau of Investigation conducted the investigation in this case. The prosecution was handled by Assistant U.S. Attorney Lori Price for the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR18-00821-JCH-DTF
RELEASE NUMBER: 2021-026_Jones# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Orange County Man Agrees to Plead Guilty to Tax Evasion for Failing to Report Interest from Millions of Dollars in Foreign Bank AccountsRead the Press Release
SANTA ANA, California – A South Korean national who lives in Orange County has been charged with tax evasion for failing to report on a federal income tax return interest income he earned from deposits in bank accounts he controlled in Hong Kong and Singapore.
Jean Guy Minn, 56, of Irvine, who is residing in the United States as a legal permanent resident, was named in a criminal information filed late Monday that charges him with one count of tax evasion.
The information specifically accuses Minn of filing a personal tax return for the year 2016 that failed to report $552,454 in interest income he earned from a foreign bank account. As a result, Minn failed to pay $162,369 in federal income tax that year.
In conjunction with the information, prosecutors on Monday also filed a plea agreement in which Minn agreed to plead guilty to the felony tax offense. In the plea agreement, Minn admitted that he failed to report a total of $2,365,427 of interest income for the tax years 2010 through 2017.
In his plea agreement, Minn agreed to pay $573,916 in back taxes for the eight years and an as-yet-undetermined amount of penalties. For example, because he also failed to report the existence of the accounts to U.S. authorities, the plea agreement calls for Minn to pay a 50 percent penalty on one of his foreign accounts that held up to approximately $18 million.
Minn has been directed to make his initial court appearance in this case in United States District Court in Santa Ana on April 26.
The statutory maximum sentence for the tax evasion offense is five years in federal prison.
This case was investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Lawrence E. Kole of the Santa Ana Branch Office.
Online Vendor Pleads Guilty to $5 Million Postage Fraud SchemeRead the Press Release
Assistant U.S. Attorney Daniel C. Silva (619) 546-9713
NEWS RELEASE SUMMARY – April 13, 2021
SAN DIEGO – Cuong H. Nguyen pleaded guilty in federal court today to conspiring to engage in a wide-ranging postage counterfeiting, forging, and tampering scheme that, over the course of multiple years and more than 160,000 packages, deprived the U.S. Postal Service of approximately $5 million of postage due and owing.
Special Agents from U.S. Postal Inspection Service, IRS Criminal Investigation, and the Financial Investigations and Border Crimes Task Force (the “FIBC” - a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture) led the investigation.
As admitted in the plea agreement entered today before U.S. Magistrate Judge Allison H. Goddard, Cuong digitally altered, counterfeited, forged, and tampered with various “postage evidencing systems”—i.e., postage meters. These postage meters are intended to expedite the delivery and shipment of USPS packages by allowing mailers to purchase and affix postage labels in advance of depositing them into the mail. Nguyen primarily used the postage evidencing system known as Click-N-Ship® when sending packages of beverages and food products from his businesses in San Diego.
As stated in his plea agreement, Cuong admitted that he misrepresented information appearing on postage labels attached to packages in several ways—including misstating the weight, size, destination, and origin of the packages—that were intended to, and in fact did deceive, the USPS as to the underpayment of postage. Accordingly, when the USPS received the packages with labels that Nguyen and others had altered, forged, and counterfeited, they paid much less to the USPS than was owed, but the packages—approximately 162,221 between 2015 and 2019—were delivered anyway.
“Those who defraud the Postal Service are effectively stealing from the U.S. Treasury and the nation’s taxpayers,” said Acting U.S. Attorney Randy S. Grossman. “We are committed to vigorously investigating and prosecuting these profiteers.” U.S. Attorney Grossman commended Assistant U.S. Attorney Danny Silva and the U.S. Postal Inspection Service and IRS-Criminal Investigation agents who unraveled this complex, digital crime.
As a result of the conspiracy, Nguyen acknowledged that the underpayment of postage to the USPS was approximately $5,127,712.88, resulting in net profits to Nguyen, his businesses, and others of $862,374.00.
“Postal Inspectors protect the U.S. mail from criminal misuse in a variety of ways, including efforts to root out postage fraud,” stated Inspector in Charge Melisa Llosa of the U.S. Postal Inspection Service Los Angeles Division. “Scammers who selfishly deprive the USPS of revenue place an undue strain on America’s most trusted service. I would like to thank our law enforcement partners, the U.S. Attorney’s Office for the Southern District of California, IRS Criminal Investigation, and the Financial Investigations and Border Crimes Task Force for their assistance in a successful resolution.”
“IRS Criminal Investigation is proud to have worked alongside our law enforcement partners at the USPIS Inspection Service and the FIBC to crack this complex web of digital crime and theft,” said IRS-CI L.A. Field Office Special Agent in Charge Ryan L. Korner. “No matter the venue, stealing money from the U.S. government is stealing money from American taxpayers. Our talented team of special agents and professional staff will continue to work tirelessly to overcome all challenges, including the current pandemic, to ensure that financial crimes will never pay.”
Sentencing is scheduled to occur on July 12, 2021 at 9 a.m. As part of his agreement to plead guilty, Nguyen agreed to forfeit $862,374.00 to the United States, as profits, proceeds, and property obtained directly or indirectly, as the result of the postage fraud conspiracy.
DEFENDANT Case Numbers 21-CR-1131-BAS
Cuong H. Nguyen San Diego, CA Age: 37
SUMMARY OF CHARGES
Criminal Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, forfeiture, and $250,000 fine
AGENCIES
United States Postal Inspection Service
IRS Criminal Investigation—Financial Investigations and Border Crimes Task Force
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Omaha Man Sentenced to Prison for Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, Iowa – On April 12, 2021, Jacob Benjamin Tuttle, Age 42, of Omaha, Nebraska, was sentenced for being a prohibited person in possession of a firearm by District Court Judge Rebecca Goodgame Ebinger to 84 months in prison announced Acting United States Attorney Richard D. Westphal. In addition, Tuttle was ordered to serve 3 years of supervised release following his prison term and pay a $100 special assessment to the Crime Victims Fund. Tuttle pleaded guilty to the offense on August 11, 2020.
On November 26, 2019 Tuttle was driving a stolen car on a rural two-lane highway in Mills County, IA. when Tuttle saw a Sheriff’s patrol vehicle behind him. Tuttle accelerated to 100 mph before he crashed the car on the side of the road and ran from the scene. He was arrested a short time later.
On the front passenger seat of the stolen vehicle, officers found a Taurus .357 Magnum, S# LP70893, along with 12 grams of methamphetamine. Tuttle is a convicted felon and drug user, therefore, prohibited from possessing firearms.
The investigation was conducted by the Mills County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Northern California Man Sentenced for Illegal Receipt of FirearmsRead the Press Release
LAS VEGAS, Nev. – A charged felon from California has been sentenced today to 14 months in federal prison for receiving four firearms, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Taisia Soloai Fauolo, 24, of Oakley, California (within the San Francisco Bay Area), pleaded guilty to one count of illegal receipt of a firearm by a person under indictment. In addition to the term of imprisonment, Chief U.S. District Judge Miranda M. Du sentenced Fauolo to three years of supervised release.
According to court documents, on or about January 18, 2018, Fauolo’s co-defendant James Williams Jr. bought four firearms: a FN Five-Seven pistol, a Glock 42 .380 caliber pistol, a Glock 19C 9mm pistol, and a Glock 30S .45 caliber pistol from a gun store in Las Vegas, Nevada. Later that same day, Fauolo received these guns from Williams. The FN pistol and Glock 19C pistols are semiautomatic firearms capable of accepting large capacity magazines. At the time he received those firearms from Williams, Fauolo knew he was charged with two felony offenses in San Francisco County.
Williams, of Las Vegas, Nevada, was sentenced to 28 months in prison in February 2020, following a jury conviction for making a false statement during a purchase of a firearm. Between May 2017 and May 2018, Williams purchased 35 firearms, mostly handguns, and many of the same make, model, and caliber from various Las Vegas firearms dealers over approximately a one-year period.
This case was the product of an investigation by the ATF, with assistance by the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jared Grimmer prosecuted the case.
The public is urged to report illegal firearms activity to the ATF at 1-800-ATF-GUNS (1-800-283-4867).
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 ATF 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, visit https://www.justice.gov/projectguardian.
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Northborough Man Sentenced for Aiding Romance and Lottery Schemes Targeting ElderlyRead the Press Release
BOSTON – A Northborough man was sentenced today in federal court in Worcester for assisting in fraud schemes targeting elderly victims and agreeing to launder the proceeds of such schemes and other criminal activity, which totaled more than $600,000.
Austin Nedved, 29, was sentenced by U.S. District Court Judge Timothy S. Hillman to 97 months and 17 days in prison (12 months of which is to run consecutively to a sentence Nedved is serving for a separate fraud conviction in the Eastern District of Kentucky), three years of supervised release and restitution of $569,750. In December 2020, Nedved pleaded guilty to one count of aiding and abetting wire fraud and one count of money laundering conspiracy.
Nedved ran a business in which he bought and sold digital currencies, including Bitcoin, for cash. Nedved advertised his services under the screen name “USMC1991” over LocalBitcoins.com and Paxful.com, two online businesses that matched Bitcoin buyers and sellers and facilitated their transactions.
From at least 2017 through 2019, Nedved aided and abetted romance and lottery schemes targeting elderly victims. In romance schemes, fraudsters convince victims to send money abroad to purported love interests, while in lottery schemes fraudsters convince victims that they can obtain lottery winnings or sizeable government grants by forwarding cash for administrative fees or expenses. Despite knowing or being willfully blind to the fact that his customers were fraud victims, Nedved sold Bitcoin to them so that they could send money overseas to the fraudsters.
For instance, in late 2017, an individual posing as “Jonathan G.” over social media led a 78-year old victim to believe that he was a Weston, Mass. businessman who owned an oil company. Without ever meeting “Jonathan G.” in person, the victim fell in love and agreed to marry him. “Jonathan G.” then falsely told the victim that his oil company had experienced an accident abroad in which people had died, and that he needed money to settle financial obligations arising from the accident with a foreign government. “Jonathan G.” claimed that until he did so, he would not be able to return to the United States to marry the victim. “Jonathan G.” told the victim to pay him via Bitcoin. The victim, who had never before purchased digital currency, agreed to send him money and contacted Nedved by phone and text message in Massachusetts to arrange a cash-for-Bitcoin transaction.
On June 25, 2018, in a parking lot in Kittery, Maine, the victim gave Nedved a cashier’s check to purchase approximately $100,000 in bitcoin. Nedved then released approximately $100,000 in Bitcoin, less his commission, to a Bitcoin wallet controlled by “Jonathan G.” When Nedved accepted $100,000 from the victim, Nedved knew or was willfully blind to the fact that the payor was the victim of a scam. On June 29, 2018, in Leominster, Nedved and a co-conspirator took another $40,000 from the victim for the same purpose.
In total, Nedved and his co-conspirators converted more than $630,000 of fraud and other criminal proceeds to Bitcoin. They then either returned the Bitcoin to the victims of the fraud or forwarded it to unidentified third parties.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, prosecuted the case.
New York Man Sentenced to 10 Years on Federal Drug ChargeRead the Press Release
PORTLAND, Maine: A Brooklyn, New York man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute cocaine base and heroin, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge Jon D. Levy sentenced Melquan Jordan, aka “Squirrel,” 31, to 10 years in prison and four years of supervised release. Following a four-day trial, a jury returned a guilty verdict against Jordan and a co-defendant, Edward Canty III, on October 24, 2019.
According to trial evidence, between September 2016 and December 2016, Jordan and others conspired to distribute and possess with the intent to distribute cocaine base and heroin transported from outside Maine for distribution in Portland. Jordan’s distribution involved more than 100 grams of heroin.
Following the jury’s guilty verdict, Canty, 31, also of Brooklyn, was sentenced to 66 months imprisonment and three years of supervised release. The other conspirators pleaded guilty, and all but one have been sentenced. Lamale Lawson, 29, of Brooklyn, was sentenced to 84 months imprisonment and four years of supervised release; Christopher Rickett, 33, of Portland, was sentenced to three years of probation; and Sierrha Frisbie, 29, of Portland, also was sentenced to three years of probation. Akeem Cruz, 31, of Brooklyn, awaits sentencing.
The Portland and South Portland Police Departments; the Maine Drug Enforcement Agency; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.
New York Man Convicted of Conspiracy and Attempt to Engage in Sex Trafficking of A MinorRead the Press Release
Tampa, FL – A federal jury has found Michael Davis (37, Jamaica, NY) guilty of conspiring and attempting to engage in the sex trafficking of a minor. He faces a minimum mandatory of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 9, 2021.
Davis had been indicted on August 13, 2019.
According to evidence presented at trial, in August 2017, Davis began using a social networking website to recruit young women to engage in commercial sex. In December 2017, Davis used the website to send a message to an individual whom he believed was a 17-year-old girl living in Denver, Colorado. Unbeknownst to Davis, however, he was communicating with an undercover agent who specialized in child sex trafficking investigations.
Over the course of several weeks, Davis conspired with another individual to attempt to recruit, entice, transport, and obtain the purported child to travel to the Tampa Bay area so that he could cause her to engage in commercial sex. In an effort to persuade the child, Davis talked about the lavish lifestyle she would have and sent photos of large amounts of cash and marijuana. Davis orchestrated the purchase of a one-way bus ticket for the child and promised to pick her up from the bus station. The day before the child was expected to arrive in Tampa, federal agents coordinated with local law enforcement officers to detain Davis, who admitted he had communicated with the child and purchased a bus ticket for her.
This case was investigated by Federal Bureau Investigation, with assistance from the Largo Police Department and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case resulted from the U.S. Attorney’s Office’s efforts to collaborate with local, state, and federal law enforcement agencies to detect, investigate, and prosecute coercive human trafficking in the Tampa area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
New Jersey Man Sentenced to 141 Months in Prison for Armed Robbery of BarbershopRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 141 months in prison for robbing a Camden barbershop at gunpoint, Acting U.S. Attorney Rachael A. Honig announced.
Benjamin Daye, 34, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye fled and was apprehended shortly thereafter next to a bag containing the handgun and the stolen items.
In addition to the prison term, Judge Kugler sentenced Daye to three years of supervised release and ordered Daye to pay restitution in the amount of $1,672 to the victims of his offenses.
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 ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s sentencing. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Navajo man sentenced to five years in prison for assaulting a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Kevin Ernest Lewis, 32, from Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, was sentenced April 12, 2021, in federal court to five years in prison for assault of a minor resulting in substantial bodily injury in Indian Country.
Lewis pleaded guilty on Feb. 5, 2020. In his plea, Lewis admitted to hitting his then-girlfriend while she was holding their four-month-old child. During the attack, Lewis knocked the child onto the ground, causing the infant to suffer a skull fracture and intracranial bleeding. The crime occurred on the Navajo Nation in McKinley County, New Mexico.
Upon his release from prison, Lewis will be subject to three years of supervised release.
The Navajo Nation Tribal Police Department investigated this case. Assistant U.S. Attorney Allison C. Jaros prosecuted this case.
Mount Lookout Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Brian Jacob Taylor, 34, of Mount Lookout, pleaded guilty today to being a felon in possession of a firearm. A federal grand jury indicted Taylor in February 2021.
According to court documents and statements made in court, an officer with the Nicholas County Sheriff’s Department arrived at Taylor’s residence to serve Taylor with a warrant for his arrest concerning an unrelated charge. Taylor asked the officer if he could put a shirt on and secure his dog before being transported to the police station. While inside Taylor’s residence, the officer observed a loaded shotgun and marijuana in plain view. Later that same day, officers obtained and executed a search warrant for Taylor’s residence and located two loaded firearms as well as several controlled substances, including methamphetamine, a heroin-fentanyl mixture and marijuana. Taylor was prohibited from possessing firearms by virtue of a prior felony conviction in the Circuit Court of Nicholas County for delivery of a controlled substance.
Taylor faces up to ten years in prison when sentenced on July 26, 2021.
The Nicholas County Sheriff’s Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00019.
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Morgantown woman admits to her role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Morgan Janes, of Morgantown, West Virginia, has admitted to drug distribution, Acting United States Attorney Randolph J. Bernard announced.
Janes, 23, pled guilty today to one count of “Distribution of Cocaine Base.” Janes admitted to selling cocaine base, also known as “crack,” in February 2020 in Monongalia County.Janes faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Monroe Man Charged with Child Exploitation Offenses Related to His Alleged Sexual Abuse of Three GirlsRead 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, announced that HECTOR TORRES, 32, of Monroe, was arrested today on a federal criminal complaint charging him with child exploitation offenses related to his alleged sexual abuse of three minor girls.
Following his arrest, Torres appeared via videoconference before U.S. Magistrate Judge S. Dave Vatti and is detained.
As alleged in the criminal complaint, Torres used Snapchat, FaceTime and text messaging to communicate with three minor girls, ages 11 and 12, to persuade, induce, entice or coerce them to send him naked pictures of themselves and to engage in sexual activity with him. On multiple occasions in February 2021, Torres picked up the girls in his car and brought them to a shopping plaza parking lot in Hartford, where they each engaged in sexual activity with Torres at his direction. Torres promised to give the girls money, sneakers, vaping supplies and/or food if they sent him photos of their bodies and/or engaged in sex acts with him. In March 2021, investigators reviewed at least three videos of Torres’s sexual abuse of the girls, one of which shows the right side of his face as well as distinctive tattoos on his hands.
The complaint charges Torres with coercion and enticement of minors to engage in sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and with production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Acting U.S. Attorney Boyle noted that investigators are seeking to identify additional victims and encouraged victims, witnesses and anyone with helpful information to call 1-800-CALL-FBI (225-5324).
This matter is being investigated by the Federal Bureau of Investigation, the Hartford Police Department, the Monroe Police Department and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.
For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Mob Associate Sentenced to 4+ Years for Real Estate Fraud SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Stephen Sharkey, 51, of Swedesboro, NJ, was sentenced to four years and one month in prison, three years of supervised release, and was ordered to pay $296,000 restitution, and to forfeit the same amount of money by United States District Court Judge John R. Padova for wire fraud, aggravated identity theft and money laundering.
In September 2020, the defendant pleaded guilty to two counts of conspiracy to commit wire fraud, eight counts of wire fraud, one count of aggravated identity theft and, one count of money laundering in connection with three brazen and predatory frauds which greatly harmed innocent victims and netted the defendant more than $385,000. Sharkey engaged in two mortgage-closing schemes to defraud potential home buyers – stealing money that the victims had intended to use to purchase residences for themselves and their families. In the third scheme, the defendant stole all of the proceeds of the sale of a house by secretly going to closing without telling the seller.
Sharkey and his associate, Antonio Ambrosio, convinced their victims to provide Sharkey with the down payment funds in advance of the dates set for the real estate closings, with the promise that Sharkey would provide full financing for the purchases. Rather than finance the deals, Sharkey and Ambrosio simply stole the down payment money supplied by the victims and made excuses when the deals did not close. As part of the scam, Sharkey and Ambrosio even defrauded Ambrosio’s own brother-in-law out of $208,000. After receiving this money, Sharkey immediately cut checks to ARMM Investments, LLC, a company owned by George Borgesi. Borgesi and Sharkey were both convicted in United States v. Merlino, et al., 99 CR 363, an early 2000s RICO case in which the Philadelphia La Cosa Nostra was named as the enterprise. Borgesi was named as a capo of the Philadelphia LCN in that Indictment, and Sharkey was identified as a bookmaker for the mob.
After Sharkey and Ambrosio stole the down payment from Ambrosio’s brother-in-law, they proceeded to lure a second victim to use Sharkey to finance his mortgage, and the victim wired Sharkey $100,000, which Sharkey promptly converted to his own use. The deal for this property fell through, but Sharkey and Ambrosio induced the victim to send the seller an extra $25,000 to hold the deal open, claiming Sharkey would get the deal done. The victim sent the seller the $25,000, but Sharkey had already disposed of the earlier $100,000 and the deal never closed.
Finally, in the real estate fraud perpetrated on the seller victim, Sharkey promised the victim that Sharkey would sell the house belonging to the estate of the victim’s deceased parents and, after going to a closing the victim knew nothing about, Sharkey deposited all of the proceeds of the sale into his own bank account, stealing over $52,000 from the victim in the process.
“Sharkey’s greed impacted the lives and security of multiple families, and his shameful actions had severe consequences for these innocent people,” said Acting U.S. Attorney Williams. “Not only did he and his associate steal mortgage down payments, but he also sold a different family’s house right out from underneath them and pocketed all of the cash. For his actions, he will now spend years in prison.”
“Real estate fraud was just the latest racket for Stephen Sharkey,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He blatantly preyed on innocent victims here, destroying two families’ plans of buying homes and stealing a third person’s inherited property. A chunk of these fraudulent proceeds was diverted to a longtime Philadelphia mob figure, underscoring Sharkey’s continued association with organized crime. The FBI and our partners are going to keep investigating and locking up those committed to making money through illicit means.”
“This investigation once again reveals how members and associates of the Philadelphia La Cosa Nostra Organized Crime Family are constantly looking to make illicit financial gains by infiltrating legitimate business or exploiting regulatory rules as well as federal and state laws,” said Brandon Corby, Eastern Organized Crime Task Force Commander, Pennsylvania State Police. “The Pennsylvania State Police with our FBI partners are committed to eradicating this type of criminal behavior and hold those engaged in such activities accountable. “
The case was investigated by the Federal Bureau of Investigation’s Organized Crime Task Force and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.
Mexican Businessman, His Wife and Two Others Indicted in Million Dollar Investment Fraud SchemeRead the Press Release
In San Antonio, a federal grand jury has indicted a Mexican businessman, his wife and two other individuals for a scheme to defraud business investors of $1 million, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Christopher Combs, San Antonio Field Office; IRS Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; and, Texas State Securities Board Commissioner Travis J. Iles.
A federal grand jury indictment unsealed yesterday charges 45-year-old Juan Enrique Kramer, a Mexican national businessman residing in San Antonio; his 46-year-old wife Adriana Pastor; 41-year-old Noel Olguin of Victoria; and 40-year-old Mexican national Karina Hernandez with one count of conspiracy to commit wire fraud. The indictment charges Kramer with four counts of wire fraud. Pastor, Olguin, and Hernandez are each charged with one count of wire fraud.
The indictment alleges that from December 2015 to January 2019, the defendants conspired to promote a “turn-key” business venture to Mexican nationals, consisting of a chain of Mexican food restaurants throughout Texas called “Las Quesadillas.” Olguin and Hernandez marketed the operation to potential buyers and were paid between $20,000 and $25,000 for each contract they secured. Kramer and Pastor charged buyers a set fee ranging from $105,000 to $250,000, and promised to perform all tasks necessary for establishing a fully functional restaurant, including: finding and renting a suitable location, obtaining all permits, providing assistance in obtaining visas for buyers, completing construction, training employees, and handling all legal fees and incorporation issues.
The indictment alleges that the defendants took funds from buyers and failed to provide the promised services. Instead, they used the funds for personal gain or to provide partial payments to previous customers who were demanding their money back. In addition to partial refunds, Kramer would also offer stakes in other businesses as an alternative to repayment. If buyers refused, the indictment alleges that Kramer and Pastor would threaten to sue them for breach of contract. The indictment alleges that the defendants perpetrated their scheme on at least eight different victims resulting in a total loss of more than $1 million.
Each count upon conviction calls for up to 20 years in federal prison. FBI agents arrested the defendants on April 9, 2021. Kramer, Pastor and Hernandez remain in federal custody awaiting their arraignment and detention hearings before U.S. Magistrate Judge Richard B. Farrer, which are scheduled to occur in the next two weeks.
The FBI, IRS Criminal Investigation and Texas State Securities Board conducted this investigation with assistance from U.S. Immigration and Customs Enforcement. Assistant U.S. Attorneys Justin Chung and Matthew W. Kinskey are prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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McKean County Man Charged with Impersonating a US MarshalRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of false impersonation of officer or employee of the United States, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Ernest Lathrop, Sr., 59, as the sole defendant.
According to the Indictment presented to the court, on January 31, 2021, Lathrop falsely pretended to be an officer and employee of the United States in that he activated emergency lights on his vehicle at the scene of a traffic accident, and falsely stated to others at that accident that he was a United States Marshal.
The law provides for a maximum total sentence of 3 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.