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Thursday 25 February 2021
Goshen, Indiana Woman Entered Plea of GuiltyRead the Press Release
SOUTH BEND – Ronya Phillips, age 47, of Goshen, Indiana, entered a guilty plea before United States District Court Judge Damon R. Leichty for two counts of subornation of perjury, announced Acting U.S. Attorney Bell.
According to documents in this case, Ms. Phillips was formerly a bankruptcy petition preparer in the Northern District of Indiana. In that capacity she prepared bankruptcy petitions and other documents for debtors who filed cases in the United States Bankruptcy Court for the Northern District of Indiana.
As part of her guilty plea, Ms. Phillips admitted that she willfully suborned and procured two individuals to commit perjury by submitting material false declarations in federal bankruptcy proceedings. Both incidents were related to Ms. Phillips inducing the individuals to falsely state in forms related to their bankruptcy petitions that they had paid Ms. Phillips half of the amount that they had actually paid her for her services.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Northern District of Indiana. The case was investigated by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10. This case is being prosecuted by Assistant United States Attorney Luke N. Reilander and Special Assistant United States Attorney Jennifer W. Prokop from the U.S. Trustee’s Office.
“Together with Acting U.S. Attorney Gary Bell and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy J. Gargula, U.S. Trustee for Region 10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
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Georgia Man Is Sentenced to 6.5 Years for Defrauding the North and South Carolina Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. – Markuetric Stringfellow, 37, of Powder Springs, Georgia, was sentenced today to 78 months in prison and 3 years of supervised release for defrauding the North and South Carolina Medicaid programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina, and U.S. Attorney Peter M. McCoy, of the U.S. Attorney’s Office for the District of South Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered Stringfellow to pay $5,278,550 as restitution.
The North Carolina Scheme
According to filed court documents and today’s sentencing hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.
According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.
In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.
The South Carolina Scheme
In addition to executing a fraudulent scheme in North Carolina, Stringfellow defrauded the South Carolina Medicaid program. According to court documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid.
Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement. According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
In July 2020, the criminal case pending against Stringfellow in South Carolina federal court was transferred to the U.S. District Court for the Western District of North Carolina for further proceedings. On August 21, 2020, Stringfellow pleaded guilty to conspiracy to commit Medicaid fraud in connection with both federal prosecutions.
Stringfellow will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of federal facility.
In making today’s announcement U.S. Attorney Murray and U.S. Attorney McCoy commended the investigative work of the FBI field offices in Charlotte, Columbia and Atlanta, and the Medicaid Investigation Divisions in Raleigh, Columbia and Atlanta, and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.
Assistant U.S. Attorneys Michael Savage with the U.S. Attorney’s Office in Charlotte and Brook Andrews with the U.S. Attorney’s Office in Columbia prosecuted the case.
Fresno Man Is Indicted for Federal Firearms Offenses for Third TimeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Wendell Ladell Lafrance Moton, 30, of Fresno, charging him with being a felon in possession of ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 11, Moton was in possession of an assault rifle without serial numbers that had a partially loaded 200‑round magazine attached. In 2009, Moton was convicted of assault with a deadly weapon not a firearm, and in 2012 and 2014, was convicted in federal court for being a felon in possession of ammunition or a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, Moton faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fort Worth Doctor Sentenced to 10 Years in Health Care Fraud ConspiracyRead the Press Release
A Fort Worth osteopath who attempted to incinerate clinic records has been sentenced to 10 years in federal prison for his role in a $10 million healthcare fraud, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Mark Kuper, the 43-year-old owner of the Texas Center for Orthopedic and Spinal Disorders (TCOSD), was indicted in June 2020. Three months later, he pleaded guilty to one count of conspiracy to commit healthcare fraud. He was sentenced Thursday by U.S. District Judge Reed C. O’Connor.
According to plea papers, Mr. Kuper admitted he conspired with his wife, Melissa Kuper, and a TCOSD physical therapist, Travis Couey, to defraud Medicare, Medicaid, and TRICARE.
The defendant admitted he fraudulently billed insurers for services the clinic never actually rendered, including physical therapy and psychotherapy, and required patients to attend these bogus appointments in order to receive Schedule II controlled substance prescriptions.
He also admitted that he gave his wife access to the secure device and passcode he used to sign controlled substance prescriptions, allowing her to improperly dispense pain medications on her own initiative, without his input.
In plea papers, Mr. Kuper acknowledged that he submitted claims stating that TCOSD had developed individualized physical therapy plans of care for each patient, knowing full well that the clinic had simply issued a boilerplate template, and for one-on-one physical therapy, even though the patients were actually meeting in groups with an athletic trainer who was not qualified to perform physical therapy.
Mr. Kuper further admitted that although he billed insurers for professional 60-minute psychotherapy sessions, most patients actually spoke with unqualified professionals for just 15 to 20 minutes – often when Mr. Kuper was out of the office.
On multiple occasions, Mr. Kuper billed as though he’d provided more than 100 hours’ work in a single 24-hour day. From 2014 to 2017, he submitted more than $10 million in claims to Medicaid, Medicare, and TRICARE.
As the scheme unraveled, Ms. Kuper attempted to destroy TCOSD documents in an outdoor fireplace at their home. The blaze destroyed their residence, but firefighters were able to recover some of the charred records from the outdoor fireplace.
Mr. Kuper also tried to cover up evidence of the fraud by accessing hundreds of electronic patient records and altering the purported treatment notes to make them appear more comprehensive.
Both Ms. Kuper and Mr. Couey pleaded guilty in September 2020 to conspiracy to commit healthcare fraud. They were sentenced to 18 months and 36 months, respectively.
A civil investigation into TCOSD began after whistleblower Richard Brown filed a qui tam suit alleging that Dr. Kuper was committing fraud through his clinic.
On May 29, 2020, the Civil Division of the U.S. Attorney’s office filed a complaint in partial intervention against Dr. Kuper, Mr. Couey, and Dr. Kuper’s clinic. The Government’s False Claims Act complaint alleged that Dr. Kuper submitted fraudulent claims for physical therapy, psychotherapy, and pain injection services to federal healthcare programs.
In addition to his guilty plea, Dr. Kuper and his clinic agreed to settle the False Claims Act lawsuit by entry of an agreed judgment against Dr. Kuper and his clinic in the amount of $11,190,222. As part of the settlement, Dr. Kuper also agreed to liquidate his real estate portfolio and other assets to satisfy the civil judgment. The whistleblower, Richard Brown, will receive 17% of the government’s recovery.
The Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Texas Medicaid Fraud Control Unit, a division of the Texas Attorney General’s Office, conducted the investigation, with assistance from the Drug Enforcement Administration’s Dallas Field Division. Assistant U.S. Attorneys Lindsey Beran and Steve Fahey, NDTX Criminal Chief, prosecuted the criminal case. Assistant U.S. Attorneys Richard Guiltinan and Kimberly McCoy handled the False Claims Act case for the United States.
Former Second-in-Command of Boston Latin Kings Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former second-in-command of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today for racketeering charges.
Alexis Peguero, a/k/a “King Lexi,” a/k/a “King Looney,” 29, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 21 months in prison and three years of supervised release. In August 2020, Peguero pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members who reported to Alexis Peguero, who served as “Cacique” or the second-in-command of the Chapter. The Devon Street Kings, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state.
As described in court documents, Alexis Peguero produced various music videos touting his allegiance to the Latin Kings, distributed controlled substances and threatened rival gang members. During the investigation, various meetings were covertly recorded where Alexis Peguero and members of the Devon Street Kings discussed the business of the racketeering enterprise. In addition, Alexis Peguero was present during meetings where members were beaten and violence against rival gangs was discussed and decided upon.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Alexis Peguero is the 17th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Muscatine Man Sentenced to Prison for Child Pornography OffensesRead the Press Release
DAVENPORT, Iowa—On February 24, 2021, United States District Court Chief Judge John A. Jarvey sentenced Patrick Vincent Maddox, age 42, of Mobile, Alabama, formerly of Muscatine, to 180 months in prison for the production, receipt, and distribution of child pornography announced Acting United States Attorney Richard D. Westphal. Maddox was additionally ordered to serve five years of supervised release following his imprisonment.
The investigation of Maddox began in 2017, when Maddox moved out of a Muscatine residence he abandoned seven electronic storage devices. The electronic devices were reviewed and suspected child pornography was discovered. The items were turned over to law enforcement. After forensic review, law enforcement uncovered child pornography in six images and a video he produced. The video captured Maddox setting up his cellular phone concealed in a bathroom, videotaping a minor child nude.
This matter was investigated by the Federal Bureau of Investigation and the National Center for Missing and Exploited Children. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Cape Cod Bookkeeper Sentenced for Embezzlement Charges in Two Criminal CasesRead the Press Release
BOSTON – A Cape Cod woman was sentenced today in two separate criminal cases for embezzling more than $1.5million from two previous employers.
Jessica L. Greenan, 42, of Centerville, was sentenced by U.S. District Court Judge Allison D. Burroughs to 70 months in prison and five years of supervised release. Judge Burroughs also ordered Greenan to pay restitution of $1,528,128 to the fraud victims, $412,354 to the IRS and to forfeit two vehicles.
In November 2021, Greenan pleaded guilty to a September 2019 indictment charging five counts of wire fraud and five counts of filing false federal tax returns for embezzling $1.1 million from a previous employer. She also pleaded guilty to a December 2019 indictment charging seven counts of wire fraud, two counts of bank fraud and two counts of aggravated identity theft for embezzling more than $390,000 from a different employer. Several of the charges in the December indictment occurred after Greenan was released on conditions in the earlier prosecution.
Greenan admitted to embezzling funds from a Hyannis company for which she handled bookkeeping and payroll services. From October 2014 until she was terminated in March 2018, Greenan embezzled $1,135,460, including 536 occasions when she wired funds from the store’s operating bank account to pay her credit card bills. Greenan doctored the company bank statements and internal records to make the payments to her credit cards appear to be legitimate expenses, and also failed to report any of her illegal income to the IRS over the five year duration of the embezzlement scheme, thereby evading more than $325,000 in federal taxes.
After Greenan was fired by the first employer, she obtained employment as the bookkeeper for a Cape Cod construction company in August 2018 and immediately began stealing company funds. Until her new scheme was discovered, Greenan embezzled more than $287,000 by wiring payments from a company bank account to pay her credit cards, made more than $5,300 in unauthorized charges to a company credit card and converted more than $11,000 of company funds to pay auto loans. Greenan forged the company owner’s signature to transfer company funds, and then fraudulently obtained more than $6,300 in unauthorized payroll after her employment had been terminated.
United States Attorney Andrew E. Lelling and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Chatham Police Department provided assistance with the investigation. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit prosecuted the cases.
Former Air Force contractor pleads guilty to illegally taking 2,500 pages of classified informationRead the Press Release
DAYTON – A former contractor with the United States Air Force pleaded guilty in U.S. District Court today to illegally taking approximately 2,500 pages of classified documents.
Izaak Vincent Kemp, 35, of Fairborn, was charged on Jan. 25 by a Bill of Information.
According to court documents, Kemp was employed as a contractor at the Air Force Research Laboratory (AFRL) from July 2016 to May 2019, and later as a contractor at the U.S. Air Force National Air and Space Intelligence Center (NASIC). While working at AFRL and NASIC – both located on Wright-Patterson Air Force Base in Fairborn – Kemp had Top Secret security clearance.
Despite having training on various occasions on how to safeguard classified material, Kemp took 112 classified documents and retained them at his home.
Law enforcement discovered the more than 100 documents, which contained approximately 2,500 pages of material classified at the SECRET level, while executing a search warrant at Kemp’s home on May 25, 2019.
Unauthorized removal or retention of classified documents is a federal crime punishable by up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for the National Security Division of the Department of Justice; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Air Force Office of Special Investigations; and Fairborn Police Chief Terry Bennington announced the plea entered into today before U.S. District Judge Walter H. Rice. Deputy Criminal Chief Dominick S. Gerace and Trial Attorney Matthew J. McKenzie with the Department of Justice’s National Security Division are representing the United States in this case.
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Former Air Force Contractor Pleads Guilty to Illegally Taking 2,500 Pages of Classified InformationRead the Press Release
WASHINGTON – A former contractor with the U.S. Air Force pleaded guilty in the U.S. District Court, Southern District of Ohio today to illegally taking approximately 2,500 pages of classified documents.
Izaak Vincent Kemp, 35, of Fairborn, was charged on Jan. 25, 2021, by a Bill of Information.
According to court documents, Kemp was employed as a contractor at the Air Force Research Laboratory (AFRL) from July 2016 to May 2019, and later as a contractor at the U.S. Air Force National Air and Space Intelligence Center (NASIC). While working at AFRL and NASIC – both located on Wright-Patterson Air Force Base in Fairborn – Kemp had Top Secret security clearance.
Despite having training on various occasions on how to safeguard classified material, Kemp took 112 classified documents and retained them at his home.
Law enforcement discovered the documents which contained approximately 2,500 pages of material classified at the Secret level, while executing a search warrant at Kemp’s home on May 25, 2019.
Unauthorized removal or retention of classified documents is a federal crime punishable by up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
John C. Demers, Assistant Attorney General for the National Security Division of the Department of Justice; David M. DeVillers, U.S. Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge of the FBI Cincinnati Division; the Air Force Office of Special Investigations; and Fairborn Police Chief Terry Bennington announced the plea entered into today before U.S. District Judge Walter H. Rice. The Department of Justice’s Deputy Criminal Chief Dominick S. Gerace and Trial Attorney Matthew J. McKenzie of the National Security Division are representing the United States in this case.
Florida Man Sentenced for Conspiracy to Commit Wire Fraud and Money LaunderingRead the Press Release
United States Attorney Ron Parsons announced that a Bradenton, Florida, man convicted of Conspiracy to Commit Wire Fraud and Money Laundering was sentenced on February 22, 2021, by U.S. District Judge Karen E. Schreier.
Kent Duane Anderson, age 50, was sentenced to 51 months in federal prison, followed by two years of supervised release, restitution in the amount of $15,311,927.00, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Anderson was indicted by a federal grand jury on February 4, 2020. He pled guilty on November 5, 2020.
The conviction stemmed from incidents between 2012 and 2018, when Anderson owned and operated a business enterprise that exploited the organic grain market. Anderson purchased thousands of tons of small grain and seed products from non-organic suppliers and then re-sold those products as “organic” to wholesale distributors, brokers, and other buyers at marked-up prices. Those buyers, who believed the grain sold them to be organic, were defrauded.
Anderson carried out his fraud through a group of inter-related business entities formed in South Dakota, which he directed and controlled. These business entities included the Bar Two Bar Ranch and Green Leaf Resources Inc., and four other businesses with the Green Leaf name.
Much of Anderson’s business sales of the misrepresented products occurred through emails, phone calls, and electronically transmitted invoices. The sales transactions often originated in Florida, where Anderson’s business entities operated, with buyers located in other states, including, Minnesota and Illinois, and thus, caused electronic wire communications between those states. Other interstate electronic wire transmissions occurred when his business entities received payment via electronic transfer of funds. Some of those transactions involved the electronic transfer of money from purchasers with bank accounts in South Dakota.
“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the National Organic Program,” said Anthony Mohatt, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all that participate in the organic supply chain, that fraud will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs.”
“Over the course of 5 years, Mr. Anderson engaged in a multi-million dollar fraud scheme where he falsely labeled products as organic products unbeknownst to consumers and USDA inspectors,” stated Acting Special Agent in Charge David Talcott. “Individuals who commit fraud with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation along with the United States Attorney’s Office and its law enforcement partners remain vigilant in identifying, investigating, and prosecuting those individuals who seek to willfully defraud the American consumers.”
This case was investigated by the U.S. Department of Agriculture, the Federal Bureau of Investigation, and the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Anderson has been allowed to self-report to the custody of the U.S. Marshals Service by March 15, 2021.
Five Indicted for Conspiring to Distribute Cocaine and MarijuanaRead the Press Release
LYNCHBURG, Va.- A federal grand jury sitting in U.S. District Court in Charlottesville has indicted five individuals for conspiring to distribute and possess with the intent to distribute cocaine and marijuana, Acting United States Attorney Daniel P. Bubar, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s (DEA) Washington Division, Colonel Gary T. Settle, Superintendent of the Virginia State Police, and City of Lynchburg Police Chief Ryan Zuidema announced today.
The grand jury returned a 14-count superseding indictment yesterday charging Jeremel Lawrence Storey, Donnell Lamont Miller, Maggie Lee Smith, Ricky Donnell Abner, and Charay Lamont Trent each with conspiracy to distribute and possess with the intent to distribute cocaine and marijuana. According to allegations in the indictment, Storey was involved in distributing more than five kilograms of cocaine and Miller, Smith, and Abner were involved in distributing more than 500 grams of cocaine.
In addition, Storey, 43, of Charlotte, North Carolina, is charged with one count of possession with the intent to distribute cocaine, one count of distribution of cocaine, and one count of possession of a firearm in furtherance of drug trafficking, specifically a short-barreled rifle. Miller, 41, of Lynchburg, is charged with an additional count of possession with the intent to distribute cocaine
Smith, 27, of Lynchburg, is charged with an additional two counts of possession with the intent to distribute cocaine, and one count of distribution of cocaine. Trent, 41, of Lynchburg, is charged with five additional counts of distribution of cocaine, one count of possession with the intent to distribute cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Abner, 42, of Charlotte, North Carolina, is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, beginning around January 2016 and continuing through January 2021, the defendants conspired to distribute and possess with the intent to distribute cocaine and marijuana.
Court documents allege that Storey was the main source of supply for the conspiracy from his residence in Charlotte, North Carolina. Storey regularly traveled from Charlotte to Lynchburg to supply multiple individuals with kilogram quantities of cocaine and collect payment. Storey also directed couriers to perform these trips and invited distributors, such as Trent, Smith, and Miller, to travel to Charlotte, North Carolina, to obtain narcotics. The indictment also includes notice of the forfeiture of several vehicles, approximately $89,000 in United States currency, and 32 items of jewelry, purses, and shoes alleged to be the proceeds of drug trafficking.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Virginia State Police’s Central Virginia Drug and Gang Task Force, and the City of Lynchburg Police Department. Assistant United States Attorney Sean Welsh is prosecuting the case for the United States.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal Prison Inmate Sentenced to Additional Prison Time for Attempting to Obtain ContrabandRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CURTIS BRENT CARICO, 46, to an additional three months in prison for attempting to obtain a controlled substance in prison. CARICO, who pleaded guilty on September 9, 2020, was sentenced earlier today by Judge Eric C. Tostrud in U.S. District Court.
According to the defendant’s guilty plea and documents filed with the court, CARICO was an inmate at the Sandstone Federal Correctional Institution (Sandstone) on January 24, 2020, when he attempted to obtain synthetic cannabinoid, a prohibited Schedule 1 controlled substance. In order to bypass security protocols, CARICO conspired with a co-defendant to have a magazine mailed to him at Sandstone that contained a page that had been soaked with liquid synthetic cannabinoid.
This case was the result of an investigation conducted by the Federal Bureau of Prisons and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorney Chelsea A. Walcker.
Defendant Information:
CURTIS BRENT CARICO, 46
Inmate at Sandstone FCI
Convicted:
- Attempting to obtain contraband in prison, 1 count
Sentenced:
- Three months in prison
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Federal Jury Finds Ocala Man Guilty of Possessing Firearm/Ammunition as A FelonRead the Press Release
Ocala, Florida – A federal jury has found Xavier Sims (36, Ocala) guilty of possessing a firearm and ammunition as a convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for May 21, 2021.
According to testimony and evidence presented at trial, in February 2020, deputies from the Marion County Sheriff’s Office responded to a shooting at a residence. The victim and her three children had been sleeping when multiple gunshots hit their home. Sims, the victim’s ex-boyfriend, had threatened to “shoot up” her house earlier that day during an argument. Following the shooting, deputies observed Sims’s vehicle near the scene—he was the driver and sole occupant. During a search of the vehicle, deputies recovered a Glock .40 caliber pistol in the trunk along with 10 spent .40 caliber shell casings and 20 live rounds. Subsequent forensic analysis confirmed that the casings and a bullet fragment found at the scene of the shooting matched the firearm from Sims’s vehicle. DNA analysis also confirmed the presence of Sims’s DNA on the live .40 caliber rounds. Sims, a multi-convicted felon, is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Michael P. Felicetta.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Federal Inmate Pleads Guilty to Illegal Weapon PossessionRead the Press Release
ABINGDON, Va. - Anthony Meyers, an inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia, pleaded guilty yesterday in U.S. District Court in Abingdon to possession of contraband, specifically a prison-made shank, Acting United States Attorney Daniel P. Bubar announced.
Meyer, 37, pleaded guilty today to one count of possession of contraband and now faces a maximum penalty of an additional 60 months in prison. He will be sentenced on May 18, 2021.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Federal Indictment Charges Three Individuals with Setting Fire to Chicago Transit Authority VanRead the Press Release
CHICAGO — Three individuals have been charged with arson for allegedly setting fire to a Chicago Transit Authority van during a period of civil unrest last spring.
DENZAL STEWART, 24, of Chicago, LAMAR TAYLOR, 23, of Chicago, and DARION LINDSEY, 19, of Park Forest, are each charged with one count of arson, according to an indictment unsealed Wednesday in federal court in Chicago. The indictment accuses the three of maliciously damaging and destroying the CTA van by setting fire to it on May 30, 2020.
Stewart and Taylor were arrested Wednesday morning. They pleaded not guilty at their arraignments Wednesday afternoon before U.S. Magistrate Judge M. David Weisman. Detention hearings for Stewart and Taylor are scheduled for Friday at 10:30 a.m. Lindsey was already in law enforcement custody on an unrelated charge. Lindsey’s arraignment on the arson charge has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Chicago Transit Authority, U.S. Marshals Service, and U.S. Transportation Security Administration. The government is represented by Assistant U.S. Attorney Albert Berry III.
The arson charge is punishable by a minimum sentence of five years in federal prison and a maximum of 20 years. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Fairbanks Man Indicted on Child Pornography ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Jason Patzke, 47, has been indicted on charges of receipt and distribution of child pornography. Patzke was arrested on Feb 22, 2021 and was arraigned on the charges this morning in federal court.
The indictment alleges that on or about June 3, 2018, Patzke knowingly received and distributed child pornography involving prepubescent minors. Additionally, Patzke has prior State of Alaska felony convictions for Sexual Abuse of a Minor and First Degree Indecent Exposure involving minors.
If convicted, Patzke could face up to 40 years for the charges listed in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Daniel Doty.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Estherville Man Sentenced to Prison for MethRead the Press Release
A man who distributed methamphetamine in Lakes area was sentenced February 23, 2021, to 7 years in federal prison.
Chance Jacob Wetter, age 26, from Estherville, Iowa, received the prison term after a September 22, 2020, guilty plea to one count of conspiracy to distribute methamphetamine within 1000 feet of a protected location.
In a plea agreement, Wetter admitted he and others distributed methamphetamine in the Lakes area from October 2019 through February 2020.
On October 23, 2019, law enforcement conducted a controlled drug buy from Wetter utilizing an undercover officer in Spirit Lake, Iowa. Wetter sold the undercover officer approximately 2 ounces of methamphetamine at the public library and then another 2 ounces of methamphetamine at his apartment which was within 1,000 feet of Memorial Park in Spirit Lake.
Wetter was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Wetter was sentenced to 84 months’ imprisonment. He must also serve a 7-year term of supervised release after the prison term. There is no parole in the federal system.
Wetter is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4016.
Follow us on Twitter @USAO_NDIA.
El Dorado Man Sentenced to 7 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that, Justin Dewayne Johnson, 30, of El Dorado, was sentenced today to 84 months in federal prison, followed by four years of supervised release, for Possession with Intent to Distribute Heroin. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, in the United States District Court’s El Dorado Division.
According to court records, on December 22, 2019, at approximately 12:50 AM, an officer with the El Dorado Police Department was driving behind a black 2006 Honda Accord operated by Johnson. After establishing probable cause, the officer attempted to stop the vehicle by activating his emergency blue lights. After a vehicle pursuit resulting in Johnson wrecking the vehicle and fleeing on foot, he was apprehended and arrested by officers. A search of the vehicles trunk resulted in officers locating approximately 414.5 grams of heroin.
Johnson was indicted by a federal grand jury in March of 2020 and entered a guilty plea in August of 2020.
This case was investigated by the El Dorado Police Department and the FBI. Assistant United States Attorney Graham Jones prosecuted the case for the Western District of Arkansas.
Dover Man Sentenced to 60 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Preston Elliott, 25, of Dover, was sentenced to 60 months in federal prison for possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 6, 2019, a New Hampshire State Police trooper conducted a motor vehicle stop in North Hampton. In addition to the driver, Elliott was the sole passenger in the back seat of the vehicle. After the driver consented to a search of the vehicle, the trooper found over 503 grams of fentanyl in a bag at Elliott’s feet. Elliott also had $1,065 in cash.
Elliott previously pleaded guilty on November 19, 2020.
“Fentanyl traffickers are endangering our community by distributing a toxic substance that can take the life of anyone who uses it’” said U.S. Attorney Murray. “If the defendant had been successful in his efforts to distribute over 500 grams of fentanyl, the consequences could have been tragic. Thanks to the excellent work of the New Hampshire State Police and the DEA, a substantial amount of fentanyl was removed from the streets and significant drug trafficker is now behind bars.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Elliott accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Dominican National Admits Trafficking Fentanyl After Illegally Re-Entering the United StatesRead the Press Release
PROVIDENCE – A Dominican national deported in August 2016 to his native Dominican Republic after having been arrested twice for drug trafficking, and who later re-entered the United States illegally, pleaded guilty in federal court in Providence on Wednesday to trafficking fentanyl and illegal re-entry into the United States.
Franklin Carlos Soto, 33, admitted to a federal court judge that he sold an individual approximately 50 grams of fentanyl for $2,500 on June 9 and again on June 18, 2020, and that he sold the same individual approximately 25 grams of fentanyl for $1,250 on June 25, 2020.
According to information presented to the court, during the June 9th transaction which took place in Soto’s residence, the individual purchasing fentanyl from Soto observed Soto take the fentanyl from a larger bag of suspected fentanyl. Soto told the individual that he had sold 800 grams the prior day. During the arrangements for the June 25th delivery of fentanyl, Soto offered to sell crack cocaine to the individual.
On July 2, 2020, members of the SSTF arrested Soto and executed a federal court-authorized search warrant at Soto’s residence and at a second Providence residence used by Soto as a stash house. Agents and officers seized a total of approximately 136 grams of fentanyl and a loaded 9mm ammo clip.
Fingerprints taken from Soto upon his arrest confirmed his identity as Franklin Carlos Soto. The investigation revealed that Soto had been living in RI under the name of Luis E. Sanchezsoto. In a prior encounter with law enforcement in January 2020, Soto falsely identified himself to Rhode Island State Police as Luis Sanchezsoto, producing a Dominican Republic driver’s license in that name.
Appearing on Wednesday before U.S. District Court Judge William E. Smith, Franklin Carlos Soto pleaded guilty to three counts of distribution of fentanyl, possession of fentanyl with intent to distribute fentanyl, possession of ammunition by an illegal alien, and illegal re-entry, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Soto, who has been detained since his arrest on July 2, 2020, is scheduled to be sentenced on May 13, 2021. An immigration detainer has been lodged against Soto by Immigration and Customs Enforcement.
The case is being prosecuted by Assistant U.S. Attorney Stacey P. Veroni.
United States Attorney Aaron L. Weisman and FBI Special Agent in Charge Joseph R. Bonavolonta thank the DEA and the Rhode Island State Police High Intensity Drug Area Task Force for their assistance in the investigation of this matter.
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Death Penalty Sought for Murder of Fort Campbell SoldierRead the Press Release
PADUCAH, Ky. – The United States filed Notice of Intent to Seek the Death Penalty for Victor Everette Silvers, in connection with the death of Brittney Niecol Silvers, announced Acting United States Attorney Michael A. Bennett. Former Acting Attorney General Jeffrey A. Rosen authorized and directed the United States Attorney’s Office for the Western District of Kentucky to seek the death penalty.
According to the superseding indictment, returned on Tuesday, February 23, 2021, Victor Everette Silvers murdered Brittney Niecol Silvers on October 14, 2018, by shooting her with a firearm at the Fort Campbell, Kentucky military installation. Brittney Niecol Silvers was, at the time of her death, assigned to the 96th Aviation Support Battalion at Fort Campbell, Kentucky. The penalty for First-Degree Murder (Premediated) is Death or Life Imprisonment.
Victor Everette Silvers is also charged with Attempted First-Degree Murder, Domestic Violence, Violation of a Protection Order, Possession of a Firearm by a Prohibited Person, and two counts of the Use/Carry/Discharge of a Firearm During and in Relation to a Crime of Violence.
This case is being prosecuted by Assistant United States Attorneys Seth Hancock and Leigh Ann Dycus and Special Assistant United States Attorney Captain Joseph Murphy from the Office of the Staff Judge Advocate, Fort Campbell, Kentucky. The case is being investigated by the Federal Bureau of Investigation (FBI) and the United States Army’s Criminal Investigation Command (CID), with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Clarksville, Tennessee Police Department.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.DOC Inmate Faces Max 20-Year Federal Sentence for Conducting Large Meth Deals from PrisonRead the Press Release
ATHENS, Ga. – An inmate in the Georgia Department of Corrections system has pleaded guilty to conspiring to distribute methamphetamine from prison, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Frankie Baza, 33, of Flowery Brance, Georgia, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine before U.S. District Judge C. Ashley Royal on February 24, 2021. Baza faces a maximum sentence of 20 years in prison to be followed by four years of supervised release and a $1,000,000 fine. A sentencing date is scheduled for May 6, 2021. There is no parole in the federal system.
Law enforcement officers in Athens-Clarke County developed a Cooperating Source (CS) in January 2019 that explained Baza was its source of meth since 2018. Baza was an inmate in the Georgia Department of Corrections who used contraband cell phones to connect customers with his associates to distribute methamphetamine. On January 10, 2019, the CS placed a call to Baza and ordered a large amount of methamphetamine. Baza directed the CS to a Homewood Suites in Metro Atlanta to meet Baza’s associate, who would conduct the drug transaction as directed by Baza. Under surveillance, agents observed Baza’s associate walk to the parking lot carrying a bag to meet the CS as planned. The associate was taken into custody and a legal search of the motel room resulted in the seizure of a large amount of methamphetamine, more than two ounces of heroin, a cell phone and a shotgun. The associate admitted to renting the room and distributing the methamphetamine and heroin. Baza now admits he conspired to direct the distribution of one kilogram of methamphetamine mixture.
“Prisoners using contraband cell phones to direct criminal activities from behind bars will face severe consequences in the federal system, where there is no parole,” said Acting U.S. Attorney Leary. “The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to identify and bring to justice those inmates who brazenly disregard the law, putting both our communities and the prison community where they are housed in danger.”
“Keeping criminals like this drug trafficker behind bars is not only an accomplishment for law enforcement, but a victory for the community,” said the Special Agent in Charge of the DEA Atlanta Filed Division Robert J. Murphy. “Mr. Baza can no longer ‘push’ dangerous drugs while on the streets or while serving time in prison. This guilty plea was possible because of unified law enforcement cooperation.”
The case was investigated by the DEA and the Gwinnett County Sheriff’s Office. Assistant U.S. Attorney C. Tamara Jarrett is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Corpus Christi bank robber sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old felon has been ordered to federal prison for robbing the Kleberg Bank in Corpus Christi and brandishing a firearm during the robbery, announced U.S. Attorney Ryan K. Patrick.
Jesse Lemmons pleaded guilty Dec. 1, 2020.
Today, U.S. District Judge Drew B. Tipton handed Lemmons a 31-month sentence for the bank robbery. He also received a consecutive seven years for the firearms charge which must be served consecutively to the other sentence imposed. The total 117-month term of imprisonment will be immediately followed by five years of supervised release.
On Jan. 10, 2020, Lemmons entered the Kleberg Bank at 3945 Crosstown SH #286 in Corpus Christi. He proceeded directly to the teller stations where he demanded cash while holding bank employees at gunpoint. He yelled repeatedly at bank employees to hurry and threatened to shoot several of them during the robbery.
Authorities apprehended him shortly after attempting to flee the scene with the money.
Lemmons will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department and FBI conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Consultant Indicted on Federal Charges for Allegedly Providing Bribes to City of Chicago Officials to Benefit ClientsRead the Press Release
CHICAGO — A consultant has been indicted on federal charges for allegedly offering and providing bribes to City of Chicago officials in an effort to benefit his clients.
ROBERTO CALDERO in 2016 offered and arranged for bribes to be provided to a City of Chicago alderman and a Chicago Public Schools employee in exchange for them taking official actions to benefit Caldero’s clients, who were seeking a custodial services contract at CPS, an honorary street name designation in Chicago, and the renaming of a Chicago park, according to an indictment returned Wednesday in U.S. District Court in Chicago. The benefits Caldero allegedly offered the CPS employee included future employment, champagne, discounted event space for a family event, and admission to an annual benefit for a museum. To influence the alderman, Caldero arranged for campaign contributions to be made to political organizations affiliated with the alderman or his ward, the indictment states. Unbeknownst to Caldero, the alderman was cooperating with the FBI and acting at the direction of law enforcement in connection with Caldero’s bribery efforts, the indictment states.
The indictment charges Caldero, 68, of Chicago, with four counts of honest services wire fraud, two counts of federal program bribery, and two counts of using a facility in interstate commerce to facilitate bribery. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Public Schools Office of Inspector General participated in the investigation. The government is represented by Assistant U.S. Attorneys Matthew Kutcher and Michelle Kramer.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Honest services wire fraud is punishable by up to 20 years in federal prison. Federal program bribery is punishable by up to ten years. Using a facility in interstate commerce to facilitate bribery is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Construction Contractor Sentenced to 41 Months for Conspiring to Commit Mail and Wire Fraud and Defrauding the U.S. TreasuryRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Hugo Cruz-Medina (33, Jacksonville) to three years and five months in federal prison for conspiring to commit mail and wire fraud, conspiring to defraud the United States, and illegally reentering the United States after previously being deported. As part of his sentence, the court also ordered Cruz-Medina to pay his victims $3,266,506.33 in restitution and a money judgment of $1,408,712.08 was entered, the proceeds of the mail and wire fraud conspiracy.
Cruz-Medina had pleaded guilty on September 29, 2020.
According to court documents, Cruz-Medina acting with others, operated a construction contracting business in Jacksonville that partially paid workers “off the books.” By compensating employees with a mix of checks and cash, he and his co-conspirators avoided withholding the full amount of payroll taxes owed to the United States. This practice lead to a loss to the U.S. Treasury of approximately $1,857,794.25. Further, by underreporting the number of hours his laborers worked, Cruz-Medina defrauded his company’s workers’ compensation insurer and payroll management vendors, all of which relied on his false reporting to calculate the cost of their services and the amounts that they charged. This false reporting caused an additional loss of $1,408,712.08 to the insurer and the payroll companies.
Cruz-Medina is a citizen of Mexico and was previously deported from the United States in 2012. He later illegally reentered the country without the consent of the Attorney General or the Secretary of Homeland Security.
This case was investigated by the Internal Revenue Service – Criminal Investigation, U.S. Homeland Security Investigations, U.S. Department of Labor Office of Inspector General, and the Florida Department of Financial Services. It was being prosecuted by Assistant United States Attorney Michael J. Coolican.
Columbia Man Sentenced to 25 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Donnell Salethian Woodard, a/k/a “Tank,” age 33, of Columbia, South Carolina, was sentenced today in federal court to 25 years imprisonment after pleading guilty in September 2019 to conspiracy to sex traffic minors and benefiting from sex trafficking of minors.
Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website. An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Woodard and India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” age 26. Officers placed both Woodard and Cuyler under arrest. The investigation led to another nearby motel where a second minor, who was also involved in the illegal venture, was located. The investigation revealed Woodard and Cuyler were using a cell phone to post advertisements for commercial sex with the minors on a website and taking a portion of the proceeds. Woodard and Cuyler were both charged federally.
During the sentencing, United States District Court Judge J. Michelle Childs also ordered Woodard to make restitution to the victims involved. Following service of his term of imprisonment, Woodard will be on supervised release for 15 years and will be required to register as a sex offender.
Co-defendant India Cuyler previously pled guilty in federal court to using a facility of interstate commerce (a cell phone) to entice a minor under the age of 18 to engage in sexual activity. Her sentencing hearing is scheduled for March 17, 2021.
The case was investigated by the Federal Bureau of Investigation (FBI), the Lexington Police Department, and the West Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes.
It was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Charlotte Man Who Produced Child Pornography Is Handed Down A 30+ Year SentenceRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Ted D. Melton, 46, of Charlotte, to 365 months in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Melton was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Bell also ordered Melton to have no contact with victims of child pornography.
U.S. Attorney Murray is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.
On October 21, 2020, Melton pleaded guilty to production of child pornography and possession with intent to view child pornography containing a minor who had not attained 12 years of age. According to filed documents and statements made in court, in February 2015, officers with the Internet Crimes Against Children (ICAC) task force determined that an individual later identified as Melton was using a peer-to-peer file sharing program to distribute child pornography. According to court records, in June 2015, law enforcement officers executed a search warrant at Melton’s residence, and seized his computers, a camera and a cell phone. Over the course of the investigation law enforcement determined that Melton had also sexually abused two minor females and had produced child pornography. A forensic analysis of Melton’s devices revealed that he possessed more than 18,000 images and 850 videos containing sexually explicit conduct involving children, including the child victims Melton had sexually assaulted.
Melton was arrested on state charges in 2015. He was transferred to federal custody in November 2019 upon his indictment on federal charges. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended the FBI in Charlotte and the Iredell County Sheriff’s Office for their investigation of the case and thanked the Statesville Police Department for their invaluable assistance.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Charleston Man Sentenced to More Than Three Years in Prison for Federal Firearm CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Jymere Alan Pratt, 23, of Charleston, was sentenced to 37 months in prison for being a felon in possession of a firearm. He will begin serving this sentence after he has completed serving sentences on unrelated felony cases from Monongalia and Kanawha counties. Following his release from prison on this case, he will be subject to three years of supervised release.
Pratt previously pled guilty and admitted that he possessed a Smith and Wesson M&P Shield 9mm pistol in the early morning hours of May 24th, 2019, near the intersection of Tennessee Avenue and Randolph Street on Charleston’s west side. Law enforcement responded to the location after learning that the vehicle was parked across the sidewalk and into the bushes of a nearby business with all the occupants unconscious. Once officers arrived, they were able to observe Pratt, the driver, wearing a bag with a shoulder strap which he placed in the back seat prior to exiting the vehicle. Officers later searched the vehicle, finding a pistol and several rounds of ammunition inside the bag. Pratt was prohibited by law from possessing firearms due to a previous conviction for robbery in the second degree in Monongalia County Circuit Court on August 14, 2017. Pratt was still on probation from that conviction when this incident occurred.
The Charleston Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). United States District Judge Irene Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00049.
Follow us on Twitter: SDWVNews and USAttyStuart
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Cecil County Pimp Pleads Guilty to Federal Child Sex Trafficking ChargeRead the Press Release
Baltimore, Maryland – Xavier Lee, a/k/a “X,” age 41, of Elkton, Maryland, pleaded guilty today to the federal charge of sex trafficking of a minor.
The guilty 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; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Matthew J. Donnelly of the Elkton Police Department; Anne Arundel County Police Chief Amal Awad; and Cecil County State’s Attorney James Dellmyer.
According to his plea agreement, for the past decade Lee has operated an illicit prostitution business for financial gain, including operating the website, www.wehavefuntimes.com, where Lee posted advertisements of women whom he made available for commercial sexual acts with paying customers. That website was seized by the FBI, in conjunction with the United States Attorney’s Office and the Maryland State Police. For a time, Lee also operated a different website, where he offered a subscription pornographic service to paying customers.
As detailed in the plea agreement, Lee admitted that he had sexual contact with Minor Victim 5, beginning when Minor Victim 5 was 14 years old. Lee recorded his sexual contact with Minor Victim 5 when Minor Victim 5 was 15 and 16 years old. Investigators recovered eight separate videos from Lee’s electronic devices, each of which had been recorded by Lee and each of which documented the sexual abuse of Minor Victim 5, depicting Minor Victim 5 engaged in sexual acts with Lee or with another adult man. Lee admitted that he was aware of Minor Victim 5’s true age.
For approximately the past five years, Lee’s prostitution business was run almost exclusively out of a hotel located in Elkton, Maryland. Not only did Lee primarily use the same hotel in Elkton to prostitute women, Lee always used the same room to prostitute women. Lee ran his prostitution business according to a set pattern and protocol. Lee posted advertisements of women whom he made available for commercial sex acts with paying customers. The “profiles” of the females whom Lee was prostituting included photographs, descriptions, and fictitious names. The website also listed the cost of prostitution appointments, described services that were available, and allowed customers to post comments.
According to the plea agreement, a typical day proceeded as follows: Lee arrived at the hotel in Elkton at around 11:00 a.m. with a group of women in his car whom he would prostitute that day, rented his usual room, and if he had sufficient business, additional room(s) from the hotel staff. Lee remained on the premises of the hotel throughout the day, met with customers in the room as they arrived and collected the money due from the customer, then sat in his car in the parking lot. After the last customer, Lee and the women left, typically by 6:00 p.m. Lee often transported the women whom he prostituted to the hotel in Elkton, including transporting them across state lines to work for his prostitution business.
Finally, Lee admitted that in 2013, including in or about April 2013, Lee also had Minor Victim 4, who was sixteen to seventeen years old, do prostitution dates at Lee’s direction. These prostitution dates were arranged through Lee’s website. Lee was aware of Minor Victim 4’s true age during the time because Minor Victim 4 advised Lee of her true age.
Lee faces a mandatory minimum of 10 years and up to life in federal prison for sex trafficking of a minor. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Lee on April 30, 2021 at 2:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force, created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Maryland State Police, the Elkton Police Department, the Anne Arundel County Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr., Adam K. Ake, and Ayn B. Ducao, who are prosecuting the case
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Brothers Plead Guilty to Conspiracy to Commit Arson and Tax FraudRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Imad Dawara, 40, of Swathmore, PA, and Bahaa Dawara, 32, of Woodlyn, PA, both entered pleas of guilty today before United States District Court Chief Judge Juan R. Sanchez to charges of conspiracy to commit arson and conspiracy to defraud the United States.
In pleading guilty, the defendants admitted to planning and causing the arson of their business, RCL Management LLC, at 239-241 Chestnut Street in Philadelphia a little more than three years ago on February 18, 2018, and to evading the assessment of their income tax liabilities from 2015-2017. Imad Dawara also admitted to fraud in connection with his receipt of health care and other government benefits including Medicaid, SNAP and TANF.
From around December 2012 until February 18, 2018, the defendants owned and operated various restaurants and entertainment establishments in Philadelphia, including a restaurant and hookah lounge at 239-241 Chestnut Street. As detailed in the Indictment, the Dawara brothers were struggling in their Chestnut Street business and had a years-long history of fighting with their landlord. By October 2017, the Dawara brothers had ceased all business operations at the Chestnut Street location and attempted to sell the business, but as they had failed to renew their lease or pay rent, no one would buy it.
On January 31, 2018, their landlord directed the defendants to vacate the premises by February 2, 2018 and advised them that they owed over $64,000 in overdue payments. Nonetheless, the Dawaras failed to vacate the premises, and on February 2, 2018, RCL Management purchased a $750,000 insurance policy providing coverage in the event of an accidental fire at 239-41 Chestnut Street.
On February 18, 2018, a fire was intentionally started with gasoline in the basement of 239 Chestnut Street, which destroyed the entire building, displaced approximately 160 people, closed the 200 block of Chestnut Street for months, and closed numerous businesses. With today’s guilty plea, both Dawara brothers admitted to planning and causing this fire.
“Just over three years ago, the fire on Chestnut Street permanently altered many people’s lives, some losing their homes and livelihoods,” said U.S. Attorney Williams. “If not for the heroism of the Philadelphia Fire Department, the devastation from that night would have been unthinkable and much more extensive. Even though many victims of this fire can never be made completely whole, I hope that today’s admission of guilt by the defendants gives these individuals and the City of Philadelphia at large some sense of relief and justice.”
“Arson for profit or any other reason is a serious crime of violence that will not be tolerated,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “ATF’s partnership with the Philadelphia Fire Marshal’s Office and the Philadelphia Police Department, whose work was instrumental in the success of this investigation, will continue to ensure the safety of our communities. I would like to thank the United States Attorney’s Office for their diligent work in prosecuting this case.”
“Schemes designed to evade income tax, such as those perpetrated by the Dawara brothers, are unfair to every taxpayer who obeys the law and pays his or her fair share,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “The Dawara brothers set out to cheat and steal from the American public and the government. Their admission of guilt today is a victory for all Americans who play by the rules.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Philadelphia, the Philadelphia Fire Marshal, the Philadelphia Police Department, the Internal Revenue Service – Criminal Investigation, the U.S. Department of Health & Human Services - Office of the Inspector General, with assistance from the Philadelphia Parking Authority Taxi and Limousine Division, and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Katherine E. Driscoll.
Box Elder man sentenced for scheme to smuggle meth into Cascade County jailRead the Press Release
GREAT FALLS – A Box Elder man who admitted his role in scheme to smuggle methamphetamine into the Cascade County Detention Center by having inmates hide the drug inside their bodies was sentenced today to 42 months in prison and to three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Franklin Troy Caplette, 36, pleaded guilty on Oct. 22, 2020 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents that in May 2019, while Caplette was incarcerated at the Cascade County Detention Center, detectives began to investigate a drug smuggling scheme. Caplette arranged for people outside of the jail to bond out inmates, provide the defendants with drugs to conceal in their rectums and have the defendants smuggle the drugs back into the jail.
When defendants returned to the jail, they told detention officers who their enemies were at the jail so they could get placed into the right pod to distribute the drugs.
In June 2019, a judge temporarily released Caplette to attend a relative's funeral on the Rocky Boy's Indian Reservation and directed him to return by 5 p.m. the next day.
While on release, Caplette spoke by cell phone with jail inmates and told one inmate he was "coming in hot." Detectives waited at the jail for Caplette, who arrived late. While Caplette went to the booking area, Caplette's wife told detectives that they never made it to the funeral and instead went to other places before returning to Great Falls.
Detectives served a warrant on Caplette to search his body for drugs and took him to an emergency room for an x-ray. The x-ray showed three oblong-shaped objects in Caplette's abdomen. Caplette eventually passed the bags. An analysis determined that one of the bags contained meth, while two of the bags contained tobacco.
Other inmates told detectives that Caplette was in charge of contraband entering the jail and that he would use young inmates to be runners to bring back drugs into jail, where they would have parties at night.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Russell Country Drug Task Force, Drug Enforcement Administration, Great Falls Police Department and Cascade County Sheriff's Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Bioventus Agrees to Pay More Than $3.6 Million to Resolve False Claims Act ViolationsRead the Press Release
GREENSBORO, N.C. - Bioventus, LLC, a global medical technology company, has agreed to pay the government $3,609,087.00 to resolve allegations that Bioventus violated the False Claims Act by submitting improperly completed certificates of medical necessity (CMN) for medically unnecessary devices from October 1, 2012 through December 31, 2018, U.S. Attorney Matthew G. T. Martin for the Middle District of North Carolina announced.
This settlement results from a self-disclosure to the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), which was later transferred to the U.S. Attorney’s Office for the Middle District of North Carolina. Bioventus made the written self-disclosure on November 30, 2018 relating to its Exogen device, an ultrasonic bone growth stimulator. Bioventus disclosed that it had discovered its sales representatives were sometimes completing Section B of the CMN for Exogen devices from October 1, 2012 through September 30, 2018. Medicare requires that Section B of the CMN be completed by the treating physician or the physician’s office. Bioventus completed a review of such claims with improperly completed CMNs to verify the medical records supported the medical necessity of the Exogen devices. Bioventus fully cooperated with the government’s investigation of the self-disclosure.
“Medicare funds must only be appropriately dispensed for medically necessary purposes and to those who comply with all rules and regulations,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “We appreciate Bioventus’s disclosure of these issues and hope this matter reminds other Medicare enrollees that they must have internal controls in place to ensure proper compliance with Medicare. Better to catch it and self-disclose than for us to discover it and come calling”
The settlement in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of North Carolina and HHS-OIG.
“Medicare rules on medical necessity are enforced to protect patients and the integrity of this federal health care program,” said Derrick L. Jackson, Special Agent in Charge for HHS-OIG. “We encourage providers to voluntarily disclose evidence of potential fraud, as in this case, to resolve these matters.”
Medicare enrollees may self-disclose evidence of potential fraud to HHS-OIG. The Provider Self-Disclosure Protocol (SDP) provides Medicare enrollees with a framework for disclosing, coordinating, evaluating, and resolving potential instances of fraud involving Federal health care programs.
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Akwesasne Man Pleads Guilty to Driving Away from Port of EntryRead the Press Release
PLATTSBURGH, NEW YORK – Brennan J. Thompson, age 43, of Cornwall Island, Ontario, pled guilty today to driving away from the Massena Port of Entry while Customs and Border Protection (CBP) Officers attempted to search his vehicle.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Robert Dwyer, CBP Director of the Massena Port of Entry.
Thompson pled guilty to a high-speed flight from an immigration checkpoint. As part of his guilty plea, Thompson admitted that on May 13, 2020, he was operating a silver Lincoln sedan when he approached the Massena Port of Entry, seeking to enter the United States from Canada. When asked to open the vehicle’s trunk for inspection, Thompson quickly accelerated away from the inspection booth, made a U-turn and sped back into Canada. Thompson was arrested on June 28, 2020 and has been in custody since that date.
Chief United States District Judge Glenn T. Suddaby is scheduled to sentence Thompson on June 24, 2021. Thompson faces up to 5 years in prison, a $250,000 fine, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by CBP and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Aiken Resident Sentenced to 11 Years in Federal Prison on Meth ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced that Christopher J. Ford, 49, of Aiken County, was sentenced to 11 years in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine and for violation of his supervised release.
Evidence presented in court established that the Drug Enforcement Administration (DEA) initiated an investigation into the narcotics distribution activities of Kenneth Evans and Eddie Brockington, co-defendants in the case. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Ford and others were involved in purchasing and distributing methamphetamine in the Aiken County area for Evans.
United States District Judge J. Michelle Childs of Columbia sentenced Ford to ten years in federal prison, followed by eight years of supervised release. There is no parole in the federal system.
Ford had been on federal supervised release for a prior conviction for conspiracy to distribute methamphetamine when he committed this offense. Judge Childs sentenced Ford to a consecutive 12 months in prison for violating his previous supervised release.
The case was investigated by agents of the DEA and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon prosecuted the case.
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Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced KENNETH VANCE WALLOWINGBULL, 42, of Montana on February 12, 2021 for assault by strangulation. Wallowingbull was arrested in Billings, Montana. He received eighteen months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Indian Affairs and the Federal Bureau of Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced KELLER WENDLEY DURAN, Jr., 28, of Ethete, Wyoming on February 10, 2021 for assault by strangulation. Duran was arrested on the Wind River Indian Reservation. He received twenty-seven months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The INVESTIGATING AGENCY investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced RUSTY ROBERT WILSEY, 34, of Pinedale, Wyoming on February 19, 2021 for being a felon in possession of a firearm. Wilsey was arrested in Cheyenne, Wyoming. He received twelve months and one day of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $250.00 fine and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced MICHAEL A. GLOVER, 31, of Bronx, New York on February 22, 2021 for bank fraud and using counterfeit access devices. Glover was arrested in Pennsylvania. He received fifteen months of imprisonment on each count to be served concurrently, to be followed by thirty-six months of supervised release on each count also to be served concurrently. Glover was ordered to pay restitution in the amount of $5,577.05 and a $200.00 special assessment. The Federal Bureau of Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JOSE OMAR NUNEZ-HERNANDEZ,53, of Mexico on February 22, 2021 for illegal re-entry of a previously deported alien into the United States. Hernandez was arrested in Cheyenne, Wyoming. He received time served plus ten days to allow for deportation proceedings followed by thirty-six months of supervised release and ordered to pay a $100.00 special assessment. US Immigration and Customs Enforcement investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced JESUS DONICIO-SANCHEZ,30, of Mexico on February 17, 2021 for illegal re-entry of a previously deported alien into the United States. Hernandez was arrested in Gillette, Wyoming. He received time served and was ordered to pay a $100.00 special assessment. US Immigration and Customs Enforcement investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced RAMIRO QUINTERO-CABRAL,39, of Mexico on February 17, 2021 for illegal re-entry of a previously deported alien into the United States. Hernandez was arrested in Converse County, Wyoming. He received time served and was ordered to pay a $100.00 special assessment. US Immigration and Customs Enforcement investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced LAQUAN KYLE DUANE SHAKESPEARE, 23, of Arapahoe, Wyoming on February 24, 2021 for abusive sexual contact. Shakespeare was arrested in Arapahoe, Wyoming. He received two hundred ninety-three months of imprisonment, to be followed by one hundred eighty months of supervised release and ordered to pay restitution in the amount of $9,366.17 and a $100.00 special assessment. The Bureau of Indian Affairs Police and the FBI investigated this case.
235 Months in Federal Prison for Nashville Man Following 2019 Stand Off with PoliceRead the Press Release
NASHVILLE, Tenn. – February 25, 2021 – Justin Jerome Jones, 33, of Nashville, Tennessee, was sentenced yesterday by U.S. District Judge William L. Campbell Jr., to 235 months in prison, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Jones was charged on February 7, 2018, after residents of the Tony Sudekum public housing neighborhood called police when they saw Jones outside a residence, arguing with his 11-year-old daughter, before firing several gunshots into the ground near the young girl. When officers from the Metropolitan Nashville Police Department (MNPD) arrived, Jones barricaded himself inside an apartment. MNPD S.W.A.T. officers, as well as federal agents, responded to the scene and Jones then repeatedly fired at the officers. One round struck an MNPD officer. After several hours, Jones exited the apartment and was immediately taken into federal custody.
A search warrant was then executed at the apartment and officers recovered several spent shell casings, a cocked .357 caliber revolver; a .38 caliber revolver; and parts from a 9mm pistol. Additional firearms parts and boxes of ammunition were also recovered from the apartment the following day. The investigation also determined that Jones had previously brandished the 9mm pistol at another person.
Jones had previously been convicted of aggravated robbery in Davidson County, Tennessee, in 2007, and was also convicted of aggravated robbery in Hamilton County, Ohio, in 2009, relating to armed bank robbery. Jones was released from custody in Ohio in December 2016 and paroled to the State of Mississippi.
Jones pleaded guilty in November 2019 to three counts of being a convicted felon in possession of firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Sunny A.M. Koshy, Joseph Montminy and Ahmed Safeeullah prosecuted the case.
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11 Members and Associates of the “Bully Gang” Charged with Racketeering OffensesRead the Press Release
A third superseding indictment was unsealed today in federal court in Brooklyn charging 11 members and associates of the violent New York City-based street gang known as the “Bully Gang” with racketeering for their role in multiple crimes, including attempted murder, armed robbery, narcotics trafficking, bribery, extortion and money laundering. Charges against multiple co-conspirators were also unsealed, including a New York City Department of Correction (DOC) officer and a former DOC officer who are charged with participating in a drug trafficking conspiracy led by the founder and leader of the Bully Gang which trafficked drugs into DOC facilities. Six defendants were arrested in the New York area today and will be arraigned via videoconference this afternoon before United States Magistrate Judge Vera M. Scanlon. The remaining defendants will be arraigned at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the arrests and charges.
“For years, members and associates of the Bully Gang have committed brutal and wanton acts of violence while spreading the poison of dangerous and illicit drugs throughout communities and even correctional institutions,” stated Acting United States Attorney DuCharme. “Thanks to the tireless efforts of our law enforcement partners, today’s charges mark significant progress towards permanently neutralizing the Bully Gang and dismantling its destructive drug-trafficking network.”
“Today, a sophisticated criminal network, committing acts of violence, trafficking in firearms, and distributing dangerous narcotics across the east coast has been dismantled. Thanks to the unwavering efforts of the ATF/NYPD Joint Firearms Task Force, these Bully Gang members and their associates are off the streets and facing lengthy prison sentences, where they will no longer be a threat to public safety,” stated ATF Special Agent-in- Charge DeVito.
“This investigation deals a substantial blow to gang violence on our City streets and demonstrates the critical need to uphold integrity as a City employee and in all City operations. As charged, these current and former City Correction officers used the access and influence of their position to traffic dangerous drugs from the Bully Gang to inmates on Rikers Island in exchange for bribes, undermining the safety of the City's jails and that of their fellow officers. DOI is proud to partner with the U.S. Attorney for the Eastern District of New York, the ATF, and the NYPD on this important investigation and we will continue to work together to protect our City jails from contraband smuggling,” stated DOI Commissioner Garnett.
As set forth in the indictment and other court filings, the defendants used force and violence to promote their power, terrorize surrounding communities and enrich themselves and their members. For example, in June 2018, Moeleek Harrell, the founder and leader of the Bully Gang, conspired with Derrick Ayers, another member, to murder a perceived “rival” of the gang, whom Harrell later shot at multiple times on a street in Brooklyn. Harrell’s leadership of the gang continued even after his incarceration at Rikers Island, where he led a drug trafficking, bribery and money laundering scheme responsible for smuggling drugs into the jail through the use of conspirators and the payment of bribes to correctional officers.
As alleged, the defendants also operated a years-long, sophisticated drug trafficking network responsible for trafficking large quantities of dangerous drugs like cocaine base (“crack”), heroin and fentanyl through New York to Maine, and elsewhere. As alleged, the gang’s leaders sent Brooklyn-based drug dealers, including Bully Gang members and associates, from New York to Maine to operate “trap” houses where narcotics were stored and sold. The organization’s drug proceeds were collected on a regular basis and laundered through financial transactions and the purchase of high-value assets, including jewelry and cars. During the investigation, law enforcement seized more than $380,000 in cash, more than 15 firearms, six kilograms of cocaine, 600 grams of fentanyl, multiple luxury watches and four vehicles with concealed “trap” compartments installed.
In the summer of 2020, Bully Gang members Franklin Gillespie and Latrell Johnson committed a spree of gunpoint robberies, displaying firearms to victims on the street in lower Manhattan to overpower them. In 2020 and 2021, Johnson also extorted a local business in Brooklyn, brandishing a firearm as part of the extortion scheme.
Between June 2019 and June 2020, Johnny Chiles, currently employed by DOC as an officer, and then-DOC officer Darius Murphy accepted payments from gang associates in exchange for delivering papers soaked in synthetic cannabinoids to inmates at Rikers Island.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section and Public Integrity Section. Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow and Lindsey R. Oken and Special Assistant United States Attorney Virginia T. Nguyen, are in charge of the prosecution.
New Defendants:
KASSIN APPLING (also known as “Killa” and “Kassim”)
Age: 34
Brooklyn, New YorkJOHNNY CHILES
Age: 36
Brooklyn, New YorkRONALD DAVIS (also known as “Ronno”)
Age: 29
Brooklyn, New YorkBRITTANY DUNCAN
Age: 26
Bayonne, New JerseyNEHEMIE ERIL (also known as “Poca”)
Age: 24
Orange, New JerseyLARON ESTRADA (also known as “Yetta”)
Age: 27
Brooklyn, New YorkROBERT HOLT (also known as “Ricky” and “Ghost”)
Age: 33
Brooklyn, New YorkDARIUS MURPHY
Age: 24
Brooklyn, New YorkTERRELL RATLIFF (also known as “Rello”)
Age: 29
Brooklyn, New YorkJAMEL SMITH
Age: 23
Bronx, New YorkDefendants Previously Indicted:
JESSICA ALMEIDA
Age: 33
Detroit, MaineDERRICK AYERS (also known as “Dee” and “Mel”)
Age: 34
Rahway, New JerseyTYRONE BANKS (also known as “Ty Hitta”)
Age: 23
Brooklyn, New YorkJANET BLOOD
Age: 47
Troy, MaineDAYVON BOSTICK-SAMUELS (also known as “Daytoe”)
Age: 22
Brooklyn, New YorkBERMON CLARKE (also known as “G” and “Blue”)
Age: 28
Rahway, New JerseyMIKE GUSTAVO CONNOR (also known as “Gus”)
Age: 21
Brooklyn, New YorkRASHAAD CRAIG (also known as “Skeeno”)
Age: 25
Brooklyn, New YorkQUINTEN DELVALLE (also known as “Q”)
Age: 24
Brooklyn, New YorkELIZABETH DUECASTER
Age: 35
Searsport, MaineCHRISTINA ESTEVEZ
Age: 31
Queens, New YorkERICA FAGGIOLE
Age: 44
MaineANTONIO FULTON (also known as “Tone”)
Age: 23
Brooklyn, New YorkFRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 30
Newark, New JerseyROMEO GONZALES
Age: 22
Brooklyn, New YorkNIA GOVAN (also known as “Cam” and “V”)
Age: 29
Boston, MassachusettsKEON GRANT (also known as “Keys”)
Age: 34
Brooklyn, New YorkMOELEEK HARRELL (also known as “Moe Money”)
Age: 31
Brooklyn, New YorkPAUL HARRIS (also known as “Baldhead”)
Age: 31
Brooklyn, New YorkNADINE HEATH
Age: 54
Troy, MaineAMANDA HUARD
Age: 38
Raymond, MaineLATRELL JOHNSON (also known as “Barlie Buckz”)
Age: 27
Brooklyn, New YorkANTHONY KENNEDY (also known as “Biggie”)
Age: 34
Queens, New YorkTYQUAWN LANE (also known as “Bicks” and “Tah Tah”)
Age: 27
Brooklyn, New YorkJOANNE LYDEM
Age: 49
Garland, MaineJESSICA PELKEY
Age: 26
Presque Isle, MaineCHRISHAWN PENN (also known as “Prince”)
Age: 26
Brooklyn, New YorkMICHAEL PEREZ (also known as “White Mike”)
Age: 29
Brooklyn, New YorkJOELLE POCHE (also known as “Rico”)
Age: 21
Brooklyn, New YorkMICHAEL REID (also known as “Half”)
Age: 39
Brooklyn, New YorkISAIAH TERRY SANDIFORD
Age: 21
Brooklyn, New YorkCHINASA STRACHAN
Age: 33
Brooklyn, New YorkNICOLETTE TOMPKINS
Age: 22
Westfield, MaineAMANDA WALTON (also known as “A”)
Age: 32
Portland, MaineDANIELLE WHITE
Age: 47
Swanville, MaineE.D.N.Y. Docket No. 20-CR-239 (S-3) (BMC)
Wednesday 24 February 2021
West Virginia hospital to pay more than $300,000 for Medicare fraudRead the Press Release
CLARKSBURG WEST VIRGINIA – U.S. Attorney Bill Powell has announced that Grant Memorial Hospital in Petersburg, West Virginia, has agreed to pay $320,175.71 for false medical claims.
According the settlement, Grant Memorial Hospital filed false claims to Medicare, Medicaid, TRICARE, VA, and Railroad Retirement Programs from September 2014 to March 2016. The claims were for outpatient and inpatient services and items using the National Provider Identifier number and name of a credentialed physician, when, in fact, the services and items were actually provided by a non-credentialed physician.
“This case was the result of the hospital recognizing the mistake and bringing it to the attention of the federal government. I commend the hospital management for ensuring that this wrong was righted. All medical providers should take note, and when a mistake in billing is made, report the issue immediately,” said Powell.
The hospital disclosed the claims in February 2019, pursuant to the Office of Inspector General of the Department of Health and Human Services self-disclosure protocol.
Assistant U.S. Attorney Christopher J. Prezioso litigated the case on behalf of the government. Agencies involved in the investigation and settlement are the Office of Inspector General of the Department of Health and Human Services, the West Virginia Attorney General’s Office, the State of West Virginia Medicaid Fraud Control Unit, the West Virginia Bureau for Medical Services, the Defense Health Agency for TRICARE, and the U.S. Department of Veterans Affairs.
Vero Beach Man Sentenced to 15 Years in Federal Prison for More Than $40 Million in FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced David John Ridling (58, Vero Beach) to 15 years in federal prison for devising and executing a fraud scheme that resulted in the loss of more than $40 million. Ridling had pleaded guilty on October 20, 2020.
According to court documents, Ridling is a farmer. Over the course of three years, Ridling attempted to defraud five financial institutions, one financial services provider, and one local Orlando business out of over $50 million. Ridling’s scheme involved the use of false brokerage account statements, fabricated tax returns, and false financial statements to obtain loans and lines of credit.
As part of his scheme, Ridling falsely claimed that three individuals were his account representatives at a financial brokerage company and set up fake email accounts for two of those individuals without their consent or knowledge. Assuming the identities of those two individuals, Ridling sent emails from the fake email accounts in an effort to convince lenders that he had millions of dollars in his two brokerage accounts. In fact, Ridling only had one brokerage account, which never had more than $2,000 in it. During the last year of Ridling’s scheme, he was able to obtain three loans totaling more than $25 million, based in part on his claim that his brokerage accounts had millions of dollars. During that timeframe, Ridling’s brokerage account had less than $2.00.
In total, Ridling was successful in receiving over $40 million in proceeds from his scheme, and he attempted to receive another $15 million from another victim. Ridling used some of the proceeds that he obtained from his victims to pay amounts that he owed to other victims, prolonging his scheme.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
United States Attorney’s Office Mourns the Loss of Officer Hugh B. BennettRead the Press Release
SALT LAKE CITY- The United States Attorney’s Office mourns the loss of retired Unified Police Department Officer Hugh B. Bennett, after his courageous battle with Covid-19. Hugh was a loving husband to our United States Attorney’s Office Victim-Witness Coordinator, Candy Bennett, and had a distinguished 26-year career in law enforcement with the Unified Police Department and the Salt Lake County Sheriff’s Office.
Upon his retirement from local law enforcement, Hugh became a Federal Court Security Officer, where every member of the United States Attorney’s Office had the privilege of interacting with him on a daily basis.
“Hugh Bennett was a gentleman who had a long and distinguished career in law enforcement,” said United States Attorney John W. Huber. “We extend our deepest sympathies to Candy Bennett, the Unified Police Department, the United States Courthouse and Hugh’s entire family. We will always remember him.”
U.S. District Judge Jason Pulliam Addresses Employees of Eastern District as Part of New EDTX Distinguished Speaker SeriesRead the Press Release
BEAUMONT, Texas – The United States Attorney’s Office for the Eastern District of Texas is pleased to announce a new speaker series and welcomes as its first guest The Honorable Jason K. Pulliam, United States District Judge for the Western District of Texas.
When Judge Pulliam took his oath of office on August 9, 2019, he became the first African American judge appointed to the district court in the Western District of Texas. Judge Pulliam has previously served as Judge Advocate with the United States Marine Corps, a judge in Bexar County, and a Justice on the Texas Fourth Court of Appeals before his federal appointment. He was invited to address the employees of the U.S. Attorney’s Office about his path to judgeship and to share his perspective from the bench.
“The Eastern District of Texas strives to have an outsized, positive impact in our community, and to recognize the contributions of thought leaders across the state,” said Acting United States Attorney Nicholas J. Ganjei. “We are thrilled that Judge Pulliam could speak with us today, particularly as we honor the contributions of African Americans to our country during this year’s Black History Month.”
The annual celebration of Black History Month was made law in 1986 when Congress passed Public Law 99-244, designating February as National Black History Month. It is commemorated by the Association for the Study of African American Life and History, which establishes a national theme for each year. The theme for 2021 is “The Black Family: Representation, Identity, and Diversity,” and acknowledges the rich tapestry of the African American family.
Two Women Plead Guilty in Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – Two women pleaded guilty today in connection with a multi-million dollar Medicare fraud scheme.
Talia Alexandre, 30, of Palm Springs, Fla., pleaded guilty to one count of receiving kickbacks in connection with a federal health care program. Stefanie Hirsch, 51, of Los Angeles, Calif., pleaded guilty to violating the HIPAA statute. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled the sentencing hearings for June 24, 2021.
According to charging documents, co-conspirator Nathan LaParl and Alexandre sold Medicare patients’ personal and medical data to Juan Camilo Perez Buitrago. Alexandre and LaParl worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces “at little to no cost.” The call centers collected demographic and insurance information from Medicare patients, which Alexandre and LaParl sold to Perez Buitrago. Alexandre received more than $1.4 million from Perez Buitrago for the patient data. Perez Buitrago used that patient data to submit more than $109 million in false and fraudulent claims, submitting claims for DME that was not prescribed, not necessary, and, in many instances, never requested or received.
To perpetuate the scheme, Perez Buitrago and LaParl checked Medicare patients’ insurance eligibility by improperly accessing a patient eligibility tool provided by Hirsch. Hirsch owned EI Medical, Inc., a Medicare-enrolled wheelchair and scooter repair company that qualified for access to a health care clearinghouse that contains Medicare patients’ personal, medical and insurance information. Hirsch improperly gave LaParl and Perez Buitrago access to that clearinghouse and charged them about $0.25 per patient eligibility check. Using Hirsch’s credentials, LaParl accessed the personal and medical data of more than 350,000 patients and Perez Buitrago’s credentials were used for 150,000 patients.
LaParl pleaded guilty in January 2021 and is scheduled to be sentenced on May 20, 2021. In October 2020, Perez Buitrago pleaded guilty to health care fraud and paying kickbacks in connection with a federal health care program and is scheduled to be sentenced on May 5, 2021. Two other defendants, Jessica Jones and Elizabeth Putulin, pleaded guilty in January 2021 and are scheduled to be sentence on May 19, 2021.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Tucson Man Sentenced to Five Years in Prison for Possessing Illegal WeaponsRead the Press Release
TUCSON, Ariz. – Last week, U.S. District Court Judge Jennifer G. Zipps sentenced Raymundo Lopez Casillas, III, 20, of Tucson, to 60 months in prison for unlawful possession of three machineguns, six pipe bombs, and a firearm silencer. Casillas previously pleaded guilty to unlawful possession of unregistered firearms.
On June 7, 2019, Casillas discharged a firearm in his bedroom. The bullet traveled through the wall and struck his 17-year-old nephew in the head, killing him. While investigating this incident, law enforcement searched Casillas’ bedroom and found six pipe bombs, one fully automatic machinegun, two machinegun conversion devices, and a firearm silencer – all of which are unlawful to possess without the proper registration. Although not unlawfully possessed, officers also found thirteen additional firearms, a large amount of ammunition, and high capacity magazines in Casillas’ bedroom.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Pima County Sheriff’s Department, conducted the investigation in this case. Assistant United States Attorney Angela W. Woolridge handled the prosecution.
CASE NUMBER: CR19-1893-TUC-JGZ
RELEASE NUMBER: 2021-011_Casillas# # #
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.Three Mercer County Men Indicted in Pittsburgh for Violating Federal LawsRead the Press Release
PITTSBURGH – Three Mercer County men have been charged in separate indictments with violating federal firearms and/or drug laws, United States Attorney Scott W. Brady announced today.
The first indictment charges Diquan Crowder, 27, of Farrell, PA, with one count of violating federal firearms laws. According to the indictment, on Nov. 20, 2020, Crowder possessed a Zastava pistol after having been convicted of two drug-trafficking and gun felony crimes.
The second indictment charges Raymond Briskey, 35, of Sharon, PA, with violating federal drug and firearms laws. According to the indictment, on Oct. 21, 2020, Briskey possessed with intent to distribute cocaine and cocaine base, and possessed a firearm after a prior felony conviction and in furtherance of a drug trafficking crime on that date.
The third indictment, returned on Sept. 22, 2020 and unsealed yesterday, charges Dimetrius Morris, 36, of Farrell, PA, with violating federal drug and gun laws. According to the indictment, on Feb. 20, 2020, Morris possessed with intent to distribute cocaine, fentanyl and methamphetamine, as well as possessed a firearm after several felony convictions and in furtherance of a drug trafficking crime on that date.
Dimetrius Morris is a fugitive from justice. Anyone with information concerning his whereabouts should contact the FBI at 412-432-4000.
"Prosecuting drug dealers and those who illegally possess firearms has been a successful strategy for reducing crime in every western Pennsylvania county," said U.S. Attorney Brady. "District Attorney Peter Acker has been a valued partner in these efforts to remove violent offenders from our neighborhoods and make Mercer County a safer place."
"The Mercer County District Attorney’s Office and state and local law enforcement officials are extremely grateful for the assistance of U.S. Attorney Scott Brady and the Department of Justice in adopting these three cases and indicting these three individuals who were deeply involved in drug trafficking and related drug crimes. Raymond Briskey had been a fugitive from justice for over three years after failing to appear for sentencing for his earlier drug
dealing conviction," said Mercer County District Attorney Peter C. Acker. "We work closely with the U.S. Attorney’s Office and the FBI along with our Mercer County Drug Task Force and the PA Attorney General’s Narcotics Agents. That working relationship has been very beneficial to Mercer County and the federal penalties for convictions in these types of cases are far greater than the corresponding state penalties."
For Crowder, the law provides for a maximum total sentence of up to ten years in prison and a fine of up to $250,000. For Briskey, the law provides for a maximum total sentence of at least five years and up to life in prison and a fine of up to $1,500,000. For Morris, the law provides for a maximum total sentence of at least five years and up to life in prison and a fine of up to $2,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant(s).
Assistant United States Attorney Craig W. Haller is prosecuting these cases on behalf of the United States.
The Mercer County Drug Task Force and the Federal Bureau of Investigation conducted the investigation leading to the return of the Indictments naming Crowder and Briskey.
The Federal Bureau of Investigation, the Sharon Police Department, the Farrell Police Department, and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the return of the Indictment naming Morris.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Individuals Arrested for Involvement in Darknet Narcotics Trafficking Involving Pills Pressed with FentanylRead the Press Release
WASHINGTON – Luis Miguel Teixeira-Spencer, 31, Olatunji Dawodu, 36, both of South Florida, were arrested in Fort Lauderdale, Florida, after being indicted on Monday by a federal grand jury in the District of Columbia for illegal sales of opioids on the darknet. The indictment charges the defendants with Conspiracy to Distribute More than 400 Grams of a Mixture and Substance Containing Fentanyl. Additionally, Alex Ogando, 35, of Providence, Rhode Island, was also arrested February 23, 2021 and charged by complaint with Conspiracy to Distribute More than 400 Grams of a Mixture and Substance Containing Fentanyl. All three defendants will have initial appearances before a federal magistrate judge today.
The indictment alleges that, since early 2017, Spencer and Dawodu operated a vendor site that sold pills pressed with fentanyl on numerous darknet markets, including AlphaBay, Dream, Empire, and Wall Street, in exchange for bitcoin. Spencer also used encrypted messaging services to communicate directly with customers and sold pills directly over messaging services. Ogando was in communication with both Spencer and Dawodu as of the online drug trafficking conspiracy. On several occasions, the defendants sold fentanyl pills that they shipped via the U.S. Postal Service to buyers in the District of Columbia.
The FBI and the U.S. Postal Inspection Service executed multiple search warrants yesterday in South Florida and Rhode Island. At the Rhode Island location, agents recovered over $350,000 in cash, approximately 2,000 grams of pills containing fentanyl, and packaging materials. At the South Florida locations, agents recovered more than $12,000 in cash, approximately 1,400 grams of pills containing fentanyl, packaging material, and a firearm.
“The use of sophisticated technology and virtual currency may raise unique challenges to investigating these cases, but this investigation demonstrates that law enforcement can nonetheless root out the sale of dangerous opioids on the darknet,” said Acting U.S. Attorney Michael Sherwin. “We will not let the use of sophisticated cyber technology impair our ability to combat the problem of opioid abuse.”
“The three co-conspirators charged today exploited those suffering through an opioid epidemic to enrich themselves,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “This case demonstrates the FBI’s commitment to working with our law enforcement partners around the country to show these criminals and others like them that they can no longer hide behind the dark web to operate their online, illicit marketplaces, because we will infiltrate their networks, shut them down, and bring them to justice, no matter where they are.”
“The U.S. Postal Inspection Service is committed to shining a light on those trafficking fentanyl and other illicit drugs on the dark web”, said Inspector in Charge Peter R. Rendina, U.S. Postal Inspection Service, Washington Division. “Postal Inspectors, armed with advanced technology, digital forensics and data analytics, continue to work closely with law enforcement partners to thwart those using the U.S. Mail in furtherance of their crimes.”
“As the opioid epidemic continues, IRS-CI will continue to lend our cyber expertise in tracing virtual currency transactions and dissolving the perceived anonymity of the dark web,” said Kelly R. Jackson, IRS-CI Special Agent in Charge. “We look forward to continuing to work with our law enforcement partners to get these dangerous drugs and those who are trafficking them off our streets.”
“The tragedy of the opioid crisis continues to be fueled by those who use every method available, including the Dark Web, to sell their illicit pills to those with substance abuse addictions,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA will continue to work with its law enforcement partners to protect the public health by disrupting and dismantling counterfeit prescription drug manufacturing and distribution.”
The charges in the indictment and complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The charges carry a mandatory 10 years up to life in federal prison.
The FBI’s Hi-Tech Opioid Task Force, IRS-CI Cyber Crimes Unit (Washington, D.C.), and the U.S. Food and Drug Administration’s Office of Criminal Investigations investigated this case. The Hi-Tech Opioid Task Force is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, the Drug Enforcement Agency, U.S. Postal Inspection Service and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids. The case is being handled by Assistant U.S. Attorneys Laura Crane and Rachel Fletcher of the U.S. Attorney’s Office for the District of Columbia, Paralegal Specialist Katie Thomas, and Legal Assistant Peter Gaboton. Additional assistance has been provided by the United States Attorney’s Offices for the District of Rhode Island and for the Southern District of Florida (Fort Lauderdale and Miami offices) and the FBI’s Miami and Boston Field Offices.
Taney County Couple Indicted for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Merriam Village, Missouri, couple has been indicted by a federal grand jury for producing child pornography.
Mark John Millman, 36, a citizen of Great Britain and a legal alien resident, and his wife, Tara Sau Millman, 41, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Feb. 23. The indictment replaces a federal criminal complaint that was filed against Mark and Tara Millman on January 29, 2021. The Millmans have been in federal custody since their arrest, and remain detained without bail.
The federal indictment charges the Millmans together in one count of using a minor to produce child pornography and one count of receiving and distributing child pornography.
According to an affidavit filed in support of the original criminal complaint, the investigation began when agents with Homeland Security Investigations in San Diego, California, began investigating users of a cloud storage platform (identified in court documents as “Cloud Platform A”). The cloud platform provides encrypted, cloud-based services that enable private, secure online storage, communication, and collaboration for business and individuals. During the investigation, the agents accessed a weblink to an encrypted chat room with approximately 145 registered users. Files containing child pornography were uploaded/posted by participants in the chat room, the affidavit says, including Mark Millman.
A search warrant was executed at the Millmans’ residence in Taney County, Mo., on January 28, 2021. According to the affidavit, images and videos of child pornography were found on both Mark and Tara Millman’s cell phones. Among those photos, the affidavit says, were images of the Millmans’ sexual abuse of child victims.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Stroud Township Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON: The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Williams III, also known as “Dilly,” age 40, of Stroud Township, Pennsylvania, was indicted on February 23, 2021, by a federal grand jury on drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on March 29, 2018 and April 18, 2018, Williams distributed and possessed with intent to distribute cocaine within 1,000 feet of Stroudsburg High School, in Monroe County, Pennsylvania. The indictment further charges Williams with possession with intent to distribute 500 grams and more of cocaine on May 3, 2018. The indictment also alleges that Williams, a convicted felon, illegally possessed two firearms in furtherance of drug trafficking and one of the firearms was stolen.
The case was investigated by the U.S. Federal Bureau of Investigation, the Stroud Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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St. Albans Man Sentenced to Prison for Heroin DistributionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Karzell Rose, 29, of St. Albans, was sentenced to 24 months in prison for distribution of heroin.
“I commend MDENT’s relentless efforts to shut down poison peddlers throughout Kanawha County,” said United States Attorney Mike Stuart. “Our communities are safer as a result of their work.”
Rose previously pled guilty and admitted that on January 23, 2020, he sold approximately 3 grams of heroin to a confidential informant at his residence in St. Albans. On January 28, 2020, law enforcement executed a search warrant at that residence and located an additional amount of heroin, digital scales and two guns. Rose admitted that he intended to distribute the heroin.
United States District Judge Joseph R. Goodwin imposed the sentence. The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Monica Coleman 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. 2:20-cr-00082.
Follow us on Twitter: SDWVNews and USAttyStuart
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Spokane woman admits meth trafficking on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Spokane, Washington, woman suspected of being a longtime methamphetamine dealer in and around the Rocky Boy’s Indian Reservation today admitted trafficking charges, Acting U.S. Attorney Leif Johnson said.
Kristina Dawn Russette, 30, pleaded guilty to possession with intent to distribute meth. Russette faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 2 and continued Russette’s detention.
According to court documents filed by the government, law enforcement officers in 2019 and 2020 learned from multiple individuals that Russette was supplying methamphetamine from the Spokane area to individuals on the Rocky Boy’s Indian Reservation.
The documents allege that in May 2020, Russette was driving a vehicle stopped in Washington for traffic violations. The vehicle was searched pursuant to a tribal search warrant and Russette’s consent and probation conditions. In a purse in the rear seating area were multiple bags containing suspected methamphetamine. A passenger in the vehicle stated that he and Russette had picked up those drugs in Spokane. The DEA determined the drugs from this seizure contained about 746.8 grams, or about 1.6 pounds, of actual methamphetamine.
FBI investigators also obtained information from multiple Facebook accounts in which Russette had used slang or code to communicate about drugs and to arrange for the distribution of drugs.
Additional individuals interviewed by the FBI identified Russette as a longtime supplier of large quantities of meth to persons on and around the Rocky Boy’s Indian Reservation.
Assistant U.S. Attorney Ethan Plaut is prosecuting the case, which was investigated by the FBI, Chippewa Cree Law Enforcement Services, Tri-Agency Drug Task Force, Bureau of Indian Affairs, Kalispel Tribe Public Safety Department in Washington and the Airway Heights Police Department in Washington.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Silvis, Illinois Man Sentenced to Prison for Firearms OffensesRead the Press Release
DAVENPORT, Iowa — On Tuesday, February 23, 2021, United States District Court Chief Judge John A. Jarvey sentenced LaShawn DJames Hensley, age 28, originally of Silvis, Illinois, to 90 months in prison for Felon in Possession of a Firearm, announced Acting United States Attorney Richard D. Westphal. Following his prison term, Hensley will serve three years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
The investigation of Hensley began in 2018 when Hensley was driving eastbound on Interstate 74 in Bettendorf approaching the Mississippi River. While crossing the bridge, another vehicle pulled up beside Hensley’s vehicle. While alongside the vehicle, Hensley flashed a black pistol at the occupant of the second vehicle. The driver of the second vehicle slowed down, called 911, and reported what happened. Moline, Illinois police officers attempted to initiate a traffic stop on the vehicle, however Hensley fled at a high rate of speed back toward Bettendorf. Hensley continued to elude Bettendorf and Davenport police officers, as well members of the Iowa State Patrol while driving at high speeds. As the chase ended, Hensley lost control of his vehicle on Welcome Way just south of Kimberly Road in Davenport. Hensley then ran from the officers and threw a loaded Glock 22 .40 caliber pistol onto a commercial rooftop. Upon search of Hensley’s vehicle, officers found three cell phones, sandwich bags, a digital scale, 24 Alprazolam pills, and approximately one ounce of marijuana.
This matter was investigated by the Iowa State Patrol, Bettendorf Police Department, Davenport Police Department, and the Moline Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.