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Friday 5 February 2021
Statement from U.S. Attorney Maria Chapa Lopez on the Deaths of FBI Special Agents Dan Alfin and Laura SchwartzenbergerRead the Press Release
Our deepest condolences to our FBI family and to the family and friends of FBI Special Agents Dan Alfin and Laura Schwartzenberger in the wake of their deaths on February 2, 2021, in Sunrise, Florida. We especially feel the loss here in the Middle District of Florida, as we were fortunate to have worked with SA Alfin during our recent Operation Pacifier cases. SA Alfin and SA Schwartzenberger are heroes. They devoted their lives and careers to protecting our most vulnerable citizens, our children. They worked tirelessly to protect our State, our District, and our communities from these horrible predators. We are grateful for their service and their ultimate sacrifice. We will never forget them, and, to honor them, here in the MDFL USAO, we will continue with our commitment to keep our children safe from those who seek to harm and exploit them.
Southeastern Physical Therapy and Owner to Pay $152,000 to Settle False Claims Allegations for Submitting Claims for Medically Unnecessary Durable Medical Equipment to Veterans AdministrationRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Asheville-based Southeastern Physical Therapy (SEPT) and owner Darren Cady have agreed to resolve allegations that Cady received illegal kickbacks and violated the False Claims Act by submitting claims for reimbursement for certain durable medical equipment to the Veterans Affairs (VA) while participating in the VA “Choice Provider” program.
The Veterans Access, Choice, and Accountability Act of 2014 provided veterans with expanded access to third-party providers outside the VA system. In 2018, the program was replaced by the VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018 (“Mission Act”). The Mission Act provided for the same access to third-party providers. Under the 2014 Act and the Mission Act, veterans could use third-party providers like SEPT for certain services. Provider participation in the program was memorialized in contracts with third-party administrators. The contracts required providers to comply with applicable local, State, and federal laws, rules, regulations and institutional and professional standards of care.
The United States alleges that, among other things, SEPT and Cady made materially false, fictitious, and fraudulent statements and representations, or material omissions, regarding the medical necessity of a medical device and received illegal kickbacks from the device manufacturer for prescribing the devices to VA patients. The United States alleges that Cady entered into a contract with the device manufacturer, which paid Cady for prescribing the devices. The United States also alleges that Cady gave a copy of his signature to a medical device salesperson, who used Cady’s signature to complete at least some medical necessity forms for VA patients, which forms accompanied invoices to the United States for payment for the devices. The United States alleges that Cady did not examine or personally treat the VA patients for whom he prescribed the devices, and further alleges that the patients were not instructed on how to safely or effectively use the product.
“Prescribing devices to VA patients that are not medically necessary is dangerous and wastes important resources intended to help our nation’s veterans,” said U.S. Attorney Murray. “My office will vigorously pursue providers and other actors that seek to take advantage of VA benefits through the submission of false claims that promote fraud and abuse in these critical government programs.”
This settlement resolves allegations investigated by the government under the False Claims Act. The settlement is a result of the coordinated effort between the VA Office of Inspector General and the U.S. Attorney’s Office for the Western District of North Carolina.
The claims resolved in this settlement are allegations only and there has been no determination of liability against SEPT, Cady, or any other entity.
Sioux Falls Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on February 1, 2021, by U.S. District Judge Karen E. Schreier.
John Thin Elk, age 43, was sentenced to 160 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Thin Elk was indicted by a federal grand jury on March 20, 2020. He pled guilty on October 29, 2020.
The conviction stemmed from an incident on or about February 8, 2019, when Thin Elk knowingly and intentionally possessed with intent to distribute 50 grams or more of actual methamphetamine. On that same date, an officer with the Yankton Sioux Tribe was patrolling an area of the reservation when he came upon Thin Elk’s car. The officer approached the vehicle and found Thin Elk and a female passenger passed out. A search of the vehicle located drugs which field-tested positive for methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the Yankton Sioux Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Thin Elk was immediately turned over to the custody of the U.S. Marshals Service.
Shrewsbury Woman Pleads Guilty to Perjury Charge in Connection with Tax Fraud InvestigationRead the Press Release
BOSTON – A Shrewsbury woman pleaded guilty today in federal court in Worcester to lying about her role with a Worcester-based employment agency while testifying before a federal grand jury.
Linda Le, 42, pleaded guilty to one count of falsely testifying before a grand jury. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 25, 2021. Le was charged in December 2020.
According to the charging documents, in late 2017 and early 2018, Le assisted with the transition of several client companies from one employment agency to UT Services, a Worcester-based employment agency. Thereafter, Le performed various tasks on behalf of UT Services, including reviewing and analyzing client invoices and maintaining a spreadsheet that tracked invoice amounts and profit. Le received cash payments in exchange for her work for UT Services.
In May 2018, Le testified before a federal grand jury and falsely stated under oath that she did not know anyone who was involved with UT Services and did not know anything about a specific client company using temporary workers from UT Services. In March 2019, Le testified again before a federal grand jury and falsely stated under oath that she did not know anything about UT Services and that she did not have any role with UT Services. At the time, investigators were conducting an investigation into fraudulent UT Services tax filings and insurance audits.
In August 2019, Tam Vuong was indicted on fraud and tax charges in connection with his oversight of UT Services and Prime Labor, another Worcester-based employment agency. Vuong is scheduled for trial on Sept. 7, 2021.
The charge of lying to a grand jury provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Lelling’s Major Crimes Unit, and Ian Stearns, of Lelling's Securities, Financial & Cyber Fraud Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serbian Man Extradited to U.S., Charged with $70 Million Fraud in North TexasRead the Press Release
A Serbian man has been extradited from Serbia to the United States to face allegations that he and others duped investors out of more than $70 million, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Serbian authorities arrested Antonije Stojilkovic, 32, pursuant to a U.S. provisional arrest request on July 24, 2020 in Belgrade. Stojilkovic subsequently consented to extradition. On Feb. 4, 2021, the FBI completed the removal of Stojilkovic from Serbia to the Northern District of Texas.
Mr. Stojilkovic and more than a dozen other alleged fraudsters were indicted by a Dallas-based federal grand jury on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in July 2020. His coconspirators include Kristijan Krstic, Xenia Faye Atilano Krstic, Marko Pavlovic, Uros Selakovic, and Nenad Krstic, all arrested during the Serbian police operation in July. One U.S. based coconspirator, Haojia Miao, was arrested in California in October 2020.
“This $70 million scam spanned several continents, targeting American citizens and foreigners alike,” said Acting U.S. Attorney Prerak Shah. “We are proud to bring Mr. Stojilkovic to Dallas to face justice in an American courtroom. The U.S. Department of Justice will not relent in our fight against cybercrime.”
“Mr. Stojilkovic and his partners are charged with executing a global con that allegedly bilked investors out of millions of dollars,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “The FBI is uniquely equipped to work with our offices and law enforcement partners worldwide to investigate and dismantle these elaborate schemes. Whether investing with cash or virtual currency, investors should exercise due diligence and report suspicious activity to the authorities.”
According to the indictment, the defendants allegedly helped create and market more than 20 fraudulent investing platforms, including Options Rider, Bancde Options, Start Options, Dragon Mining, BTC Mining Factor, and Trinity Mining.
From their home bases in China, Serbia, and elsewhere, the defendants allegedly targeted investors around the globe – including several in north Texas – soliciting “investments” in binary options and cryptocurrency mining.
Online, they billed their binary options platforms as “the world’s market leader in binary options,” boasted an average payout of 80 percent, and promised 20 percent refunds on every lost trade. On the cryptocurrency mining platforms, meanwhile, they claimed investors could “purchase bitcoin at half market price!!” due to a “24-7 mining” at facilities “worldwide.”
The defendants concocted profiles – complete with names and photographs, mostly female – for these non-existent investing companies’ officers and chair people, and even used fake names during video conference calls in order to convince potential investors the company was legitimate.
After instructing investors to wire money through an international bank account, the defendants allegedly provided logins for a bogus online investment portal, which consistently showed positive returns on investments. They allegedly fabricated trading activity, withdrawal history, and wire receipts. In actuality, no actual trading had occurred and the so-called “investment” money was used to cover defendants’ personal expenses, to pay commissions, and to further the scheme.
Overall, the conspiracy allegedly duped investors worldwide out of more than $70 million.
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are innocent unless and until proven guilty in a court of law.
If convicted, Mr. Stojilkovic and his codefendants face up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The United States acknowledges and expressed appreciation for the cooperation of the Government of Serbia. The Justice Department’s Office of International Affairs provided valuable assistance in this matter. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Seattle contract bookkeeper and accountant indicted for Wire Fraud, Aggravated Identity Theft, and Destruction of RecordsRead the Press Release
Seattle – A Seattle woman who was employed as a contract bookkeeper and accountant for a high-end mountain bike company appeared in federal court today, indicted for her embezzlement of at least $188,000 from the company, announced U.S. Attorney Brian T. Moran. JOAN C. TROWER, 50, is charged with nine counts of wire fraud, four counts of aggravated identity theft, and one count of destruction of records. Trial before Chief U.S. District Judge Ricardo S. Martinez is scheduled for April 12, 2021.
According to the indictment, TROWER worked as a contract bookkeeper and accountant for the mountain bike company from July 2015 to May 2018. Her contract was terminated when the embezzlement was discovered. TROWER used a variety of schemes to steal from company accounts: creating checks using the company software system, forging signatures, claiming expenses and compensation she did not earn, and making transfers from company accounts to accounts she controlled in the names of phony tax accounting businesses. For example, while most employees received at most three checks per month (two for salary and one for expenses), TROWER wrote as many as thirteen checks to herself in one month. TROWER put false descriptions in the memo line, sometimes falsely claiming the funds were to reimburse her for an outside tax accounting firm she claimed to have hired. TROWER transferred money from company accounts to accounts she controlled—transferring more than $26,000 to her account in the span of just a few months in 2015. TROWER and her boyfriend used the money to, among other things, gamble at area casinos.
The indictment alleges that TROWER committed aggravated identity theft when she forged the signature of company executives on fraudulent checks and when she submitted false invoices in the name of a third-party tax accountant to justify reimbursements to TROWER.
Finally, TROWER allegedly attempted to destroy and alter company records in the company’s accounting software to hide her embezzlement from law enforcement.
Wire fraud and destruction of records are both punishable by up to 20 years in prison. Aggravated identity theft is punishable by a mandatory minimum two‑year prison term to run consecutive to any term imposed on other charges.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney William Dreher.
trower_indictment.pdfRochester Man Going to Prison for 4 1/2 Years for Defrauding Holiday InnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Henry Williams, 55, of Rochester, NY, who was convicted of wire fraud, was sentenced to serve 55 months in prison by U.S. District Chief Judge Frank P. Geraci, Jr. He was also sentenced to serve 12 months in prison for violating the terms of supervised release imposed in connection with an earlier conviction for fraud, and pay restitution totaling $5,649.98.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant was on supervised release following a 2016 conviction for bank fraud in the Western District of New York, when he began working at the front desk of the Holiday Inn Rochester Downtown. In January 2020, Williams began using the hotel’s point of sale machine fraudulently to load and attempt to load hundreds of thousands of dollars onto credit/debit cards that he controlled. The defendant impersonated various hotel managers while making phone calls to the hotel’s card payment processor in furtherance of his scheme. Williams also attempted to cover his tracks and conceal his involvement in the fraud by impersonating a hotel employee and making false complaints of criminal activity by another hotel employee.
The defendant successfully stole approximately $4,871.58 in fraudulent funds. He also attempted over a period of time to obtain more than $840,000 in additional fraudulent funds.
The sentencing is the result of an investigation by Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the U.S. Probation Department, under the direction of Chief Probation Officer Timothy Englerth.
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Roanoke Woman Sentenced to Prison for Failing to Disclose Ownership of Show Ponies as Part of Bankruptcy ProceedingsRead the Press Release
ROANOKE, Va. – A Roanoke woman, who failed to disclose her family’s ownership stakes in a series of show ponies as part a bankruptcy proceeding, was sentenced today in U.S. District Court to six months in federal prison to be followed by two years of supervised release, six months of which must be spent on home confinement, Acting United States Attorney Daniel P. Bubar made the announced today.
Laura Wright, 53, pleaded guilty in October 2020 to concealing property in relation to a bankruptcy proceeding.
According to court documents, on September 2, 2014, Laura Wright, and her husband Stacey Wright, filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the Western District of Virginia in the Roanoke Division. At the time of the filing, Laura Wright was an attorney with prior bankruptcy experience and a member of the Virginia State Bar.
Prior to filing bankruptcy, and continuing throughout the bankruptcy proceedings, the Wrights incurred substantial expenses associated with the sport of pony jumping, an activity their then-minor child was participating in, and they bought, sold, and maintained ownership interests in several show ponies.
For example, approximately six weeks before filing bankruptcy, and after retaining bankruptcy counsel and completing a credit counseling course in anticipation of their bankruptcy filing, Laura Wright sold two show ponies for approximately $15,000. In August 2014, Laura Wright and others traveled to Maryland where Laura Wright purchased a show pony for $18,000. Laura Wright later bought and sold additional show ponies while the bankruptcy proceeding was pending. Although required to do so, the Wrights failed to disclose to the bankruptcy court any ownership interest in or costs associated with show ponies.
In the course of the bankruptcy proceeding, Laura Wright falsely testified under oath concerning her ownership interest in various show ponies, as well as the source of funds used to purchase the $18,000 show pony in August 2014, just prior to the Wrights’ bankruptcy filing. She further provided a notarized affidavit to the bankruptcy trustee, knowing the affidavit to be materially false.
The matter was referred to the United States Attorney by the United States Trustee. The investigation of the case was conducted by the Federal Bureau of Investigation with substantial assistance from the Roanoke Office of the United States Trustee Program. Assistant United States Attorney Kristin B. Johnson prosecuted the case for the United States.
Reno Man Sentenced to 10 Years in Prison for Fentanyl OffenseRead the Press Release
SACRAMENTO, Calif. — Saybyn Borges, 30, of Reno, Nevada, was sentenced Thursday to 10 years and one month in prison for possession with intent to distribute fentanyl, U.S. Attorney McGregor W. Scott announced.
Borges pleaded guilty on Aug. 6, 2020. According to court documents on May 21, 2018, in Placer County, Borges sold a confidential source 493 counterfeit oxycodone 30 milligram pills. The pills weighed 52.6 net grams and contained 1.6% fentanyl. Borges thereafter arranged to sell an additional 7,000 counterfeit oxycodone pills to the confidential source. On June 7, 2018, Borges arrived at the agreed-upon location in possession of the 7,000 fentanyl pills. Agents surrounded Borges’ vehicle and attempted to arrest him. Borges used his car to break containment by ramming an unmarked law enforcement vehicle. The car struck a CHP officer, injuring his hand. Borges then drove up to 100 miles-per-hour on a two-lane road, throwing tablets out the window as he fled. He was eventually apprehended. Agents located 3,440 counterfeit oxycodone pills scattered along the road and inside Borges’ vehicle. The pills weighed 367 net grams and contained 1% fentanyl.
This case was the product of investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Raleigh Man Sentenced to 33 Months for Conspiracy to Commit Bank FraudRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced yesterday to 33 months in prison for conspiring with others to defraud financial institutions of approximately $393,875.
According to court documents, Jacques Maurico Anderson, 32, and a close friend purchased synthetic identities from an individual they met on Craig’s List. Anderson used this nine-digit-number, commonly referred to as a CPN, on credit applications instead of the social security number issued to him by the Social Security Administration because his credit was poor. Anderson and his friend enhanced the credit worthiness of their new credit profiles by adding the CPN coupled with their names as authorized users to credit cards issued to individuals with high credit scores. As a result, lenders and credit card issuers were scammed into believing Anderson and his friend had good credit and the ability to pay off indebtedness.
Between February 17, 2017 and March 8, 2017, Anderson and his friend went on a month-long shopping spree with their new synthetic identities. They also substantially inflated their income and provided false residential addresses. In total, they purchased or attempted to purchase five automobiles, eight All-Terrain Vehicles (ATVs), one covered wagon trailer and obtained seven credit cards. Anderson and his friend attempted to sell some of the ATVs that they fraudulently obtained to others.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General investigated the case and Assistant U.S. Attorney Susan Menzer prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00266-D-1.
Providence Man Indicted for Torching a Providence Police Cruiser During June 2020 RiotsRead the Press Release
PROVIDENCE – A federal grand jury today returned a one-count indictment charging a Providence man with arson, alleging that he intentionally set a Providence Police Department cruiser on fire during a riot in downtown Providence during the early morning hours of June 2, 2020.
It is alleged that Luis Joel Sierra, 36, leaned inside a Providence Police cruiser to ignite a fire. The cruiser was quickly engulfed in flames and destroyed.
According to court documents, the investigation into the circumstances surrounding the torching of the police vehicle was bolstered by video from surveillance cameras, cell phones, and social media, and from information provided via email to law enforcement tip lines, including the Boston FBI tip line.
Additionally, as alleged in court documents, Sierra told another that he was one of the individuals responsible for the arson of the Providence Police Department vehicle by applying a flammable liquid to the interior of the vehicle and then using a lighter to ignite the fire. Law enforcement was also provided with several videos allegedly taken on Snapchat off Sierra’s phone and a recorded conversation with Sierra during which Sierra allegedly detailed his actions igniting the fire.
On August 14, 2020, members of the FBI Joint Terrorism Task Force executed a court-authorized search of Sierra’s residence and seized matching clothing allegedly worn by Sierra on the evening of June 1, 2020 and early morning of June 2, 2020, including a black Caterpillar jacket; white Adidas sweatpants; a camouflage mask; two black gloves, one with a logo on the back of the hand; and two one-handed windshield-style lighters.
A federal grand jury today returned an indictment charging Sierra with malicious attempt to damage or destroy a vehicle, in whole and in part owned and possessed by the Providence Police Department, an organization receiving Federal financial assistance, by means of fire, thereby causing a substantial risk of injury to any person, including any public safety officer performing duties (arson), announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Providence Police Chief Colonel Hugh T. Clements, Jr.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted as charged, Sierra faces statutory penalties of 7- 40 years imprisonment, up to five years of supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
United States Attorney Aaron Weisman, FBI Boston Division Special Agent in Charge Joseph R. Bonavolonta, and Providence Police Chief Colonel Hugh T. Clements, Jr., thank the Rhode Island Fusion Center, Rhode Island State Police, and Cranston Police Department for their assistance in this investigation.
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Over $1.1M in Civil Settlements Reaffirm DOJ’s Commitment to Preventing Opioid AbuseRead the Press Release
The United States Attorney’s Office has collected $792,000 in civil penalties as two more civil Controlled Substances Act (CSA) investigations have settled, announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division. These civil settlements, coupled with the Town & Country Drug, Inc. settlement, total $1,112,000.00 in agreed civil penalties obtained in the district in the past two months stemming from investigations in Austin, San Antonio and Odessa. These settlements reflect DOJ’s ongoing commitment to addressing the opioid crisis by preventing, detecting and investigating the diversion of controlled pharmaceuticals from legitimate sources.
“We depend on pharmacies and medical providers following the CSA’s recordkeeping requirements so that the DEA can carry out its critical mission of preventing the diversion of controlled substances,” said U.S. Attorney Sofer. “This office recognizes the devastating impact the diversion and improper use of controlled substances has on communities throughout this district. These cases affirm our commitment to using all avenues of enforcement to protect the health and safety of our citizens.”
“These settlements should remind pharmacies and medical providers that they, too, must adhere to federal laws designed to ensure the safe and legal dispensation of pharmaceutical drugs,” said DEA Special Agent in Charge Whipple. “These cases demonstrate DEA’s commitment to using all available tools to combat our nation’s opioid overdose crisis and reduce the illegal diversion of pharmaceutical opioids.”
MedMark Treatment Centers of Texas Pays $412,500.00
MedMark Treatment Centers of Texas, Inc., dba MedMark Treatment Centers San Antonio Military (MedMark), has paid a $412,500.00 penalty under a civil settlement to resolve allegations that it violated certain provisions of the CSA. MedMark is registered as a Narcotic Treatment Program in Schedules II and III controlled substances. MedMark operates outpatient treatment centers for opioid addiction in Texas, including a location on Military Drive West in San Antonio.
After undertaking an investigation of the Military Drive West facility in 2019, the United States contended that it had claims against MedMark for civil penalties under the CSA, including that MedMark allowed non-medical staff to repeatedly dispense controlled substances to patients in violation of the CSA. Further, the DEA contended that MedMark was in violation of recordkeeping provisions, including failing to maintain complete and accurate records, failing to maintain a current power of attorney, and failing to keep its records in a readily retrievable manner. These requirements are intended to prevent the diversion of controlled substances for illegal purposes. MedMark has made no admission of civil liability.
The DEA’s Diversion Group in the San Antonio District Office led this investigation. Assistant U.S. Attorney John Deck handled this affirmative civil enforcement matter on behalf of the government.
Ascension Seton Pays $379,500.00
Ascension Seton, on behalf of Ascension Seton Medical Center-Austin (ASMC-Austin), has paid a $379,500.00 penalty under a civil settlement to resolve allegations that it violated certain provisions of the CSA. ASMC-Austin is a hospital with advanced specialty care services.
Following a 2018 theft of controlled substances from the ASMC-Austin facility located on West 98th Street in Austin, DEA conducted an inspection and found inventory shortages, discrepancies in the facility’s pharmacy records and deficiencies in recordkeeping practices. The United States contended it had claims against ASMC-Austin for civil penalties under the CSA for record keeping violations, failure to maintain effective controls, and failure to timely report any theft or significant loss of controlled substances. ASMC-Austin has made no admission of civil liability.
The DEA’s Diversion Group in the San Antonio District Office conducted this investigation while Assistant U.S. Attorney Erin M. Van De Walle handled this affirmative civil enforcement matter on behalf of the government.
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Orlando Man Charged with Unlawfully Operating Drone in Restricted Airspace Related to Super Bowl LVRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Henry Alejandro Jimenez (33, Orlando) with violating national defense airspace. If convicted, Jimenez faces a maximum penalty of one year in federal prison.
According to the complaint, on February 3, 2021, the Federal Aviation Administration (FAA) issued a temporary flight restriction (TFR) covering an area extending outward from downtown Tampa. This TFR, along with others, was issued as part of a comprehensive security plan designed to protect and secure the events leading up to, and including, Super Bowl LV. That day, FBI agents saw an unmanned aircraft system (UAS), commonly referred to as a “drone,” flying near the Barrymore Hotel Tampa Riverwalk—an area within the TFR. The FBI agents then located Jiminez, the operator of the drone, nearby in downtown Tampa. Jimenez stated that he is an FAA-licensed remote pilot UAS operator and that he was aware that a TFR was in place for the Super Bowl. A review of his drone’s flight path showed that it had traveled over Julian B. Lane Waterfront Park, which was hosting public events related to the Super Bowl. Jimenez also appears to have operated his drone without maintaining an uninterrupted visual line of sight for the entire flight, as required by FAA regulations. Furthermore, Jimenez flew his drone over people and moving vehicles.
“This is a perfect example of the serious consequences drone operators face when they choose to ignore the temporary flight restrictions,” said FBI Tampa Special Agent in Charge Michael McPherson. “The TFRs are in place for your safety during Super Bowl week. Be aware of the NO DRONE ZONES and report any suspicious activity to the FBI or local law enforcement.”
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Oregon Biotech Consultant Charged in Insider Trading SchemeRead the Press Release
BOSTON – An Oregon biotechnology consultant was charged today in federal court in Boston in connection with his role in an alleged insider trading scheme involving the acquisition of a Cambridge biotechnology company in 2017.
Mark Joseph Ahn, 58, of Lake Oswego, Ore., was charged with two counts of securities fraud. Ahn will make an initial appearance in federal court in Boston at a later date.
As alleged in the charging document, from April to August 2017, Ahn, a long-time senior corporate executive and board director for biotech companies, worked as a consultant for a New York firm, and advised it during its efforts to acquire Dimension Therapeutics, Inc., a biotech firm formerly headquartered in Cambridge, Mass. In the course of his work for the New York firm, Ahn learned Dimension’s intention to be acquired by another biotech firm, the details and the timing of his employer’s proposals to acquire Dimension and gained access to confidential information about Dimension’s business. Ahn thereafter bought Dimension stock while in possession of that nonpublic information. When Dimension announced that it would be acquired in August 2017, its stock increased 262% in one day.
Today, the SEC filed a separate civil action against Ahn in federal court in Boston.
The charging statute provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Kriss Basil of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Oakland Woman Charged in Million Dollar Scheme to Defraud Pandemic Relief Programs for Struggling BusinessesRead the Press Release
OAKLAND – Christina Burden was arrested today on a federal criminal complaint charging her with bank fraud in connection with a scheme to illegally obtain more than $4.5 million in pandemic relief loans, announced United States Attorney David L. Anderson; Treasury Inspector General for Tax Administration J. Russell George; Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair; and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Michael Daniels.
Christina Burden, 31, of Oakland, is charged in the complaint with one count of committing bank fraud on or about June 20, 2020, when she applied for and later received $684,375 in a forgivable loan from the government’s Paycheck Protection Program (PPP) for her shell entity “Blessing Box Co LLC.” The complaint further describes a scheme in which Burden submitted nine other fraudulent applications for PPP loans between April and June of 2020, one of which resulted in her receiving an additional $307,916 in PPP funds. In total, Burden attempted to obtain over $4.5 million in PPP forgivable loans for four different shell entities.
During this time, Burden also submitted one fraudulent Economic Injury Disaster Loan Program (EIDL) application for one of the same shell entities, for which she received $150,900 in funds. The four entities had recently been created by Burden, according to the complaint, and do not appear to engage in any legitimate business nor to have any employees. Loan applications for both PPP and EIDL loans are required to be certified by the applicant as true, and the criminal complaint describes how Burden’s applications contained false information and misleading statements as well as doctored bank statements and fictitious tax forms.
Burden ultimately obtained a total of over $1 million in fraudulent pandemic relief loans, including almost $1 million in PPP funds. The PPP requires that its funds be used for legitimate business and payroll expenses, and the complaint describes how Burden spent the bulk of the loan money on personal indulgences, including private jet travel, hotel stays, boat rentals, expensive automobiles, luxury goods purchased from Louis Vuitton and Neiman Marcus, and specialty items purchased from the Sunglass Hut and the San Francisco Giants Dugout Store.
“The Paycheck Protection Program provides a financial lifeline to needy businesses and their employees,” said U.S. Attorney Anderson. “We allege that Christina Burden obtained PPP funds by fraud, submitting false business information, false employee numbers, false bank statements, and false tax returns. She used those funds for a spending spree on entertainment, luxury goods, and high end excursions, including travel by private jet.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during these unprecedented times,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”
“As we begin a second round of PPP loans for small businesses who are struggling during this pandemic, we will be on alert for fraudsters who seek to take advantage of the program,” said FBI San Francisco Special Agent in Charge Craig Fair. “Those who wish to defraud programs designed to help those in need should know that the FBI and our partners will pursue every investigative tool available to us to ensure the integrity of those programs and that they remain available to our community’s small business owners.”
“Christina Burden allegedly used fraudulently obtained funds from the Paycheck Protection Program and Economic Injury Disaster Loan program to unjustly enrich herself. According to the criminal complaint, she submitted false documents and records to banks showing that she had employees, paid wages to those employees, and paid employment tax payments to the IRS – none of which is true,” said Michael Daniels, Acting Special Agent in Charge of IRS Criminal Investigation's Oakland Field Office. “IRS-CI is proud to work with our law enforcement partners by lending our expertise in complex financial cases like this one.
As outlined in the complaint, the PPP is administered by the U.S. Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. PPP loan proceeds must be used by the business on certain permissible business expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on a PPP loan to be entirely forgiven if the business spends the loan proceeds on these business expense items within a designated period of time and uses at least 60% of the PPP loan proceeds on payroll expenses. Loans made through the PPP are 100% guaranteed by the SBA.
Similarly, the EIDL Program provides low-interest non-forgivable loans to small businesses, among others, in regions affected by disasters. In March 2020 the President of the United States extended the availability of EIDL funds to all states and territories due to the magnitude and severity of the COVID-19 pandemic.
According the complaint, Burden’s loan applications contained multiple false statements certified as true. Among those, Burden falsely affirmed that each business was in operation before February 15, 2020, and her businesses had up to 89 employees and monthly payroll expenses of over $700,000. The complaint alleges, however, that the entities’ tax records reveal that none of them paid payroll taxes nor submitted any payroll tax forms. Bank records submitted in Burden’s applications as evidence of the four shell entities’ payroll expense payments were revealed to be doctored when compared against the actual bank records, per the complaint’s allegations.
The complaint lastly alleges that once Burden received the funds, she did not use the money to pay allowable PPP business expenses but instead spent it on personal indulgences: $184,000 on airfare, private jet travel, and hotel expenses; $124,000 on luxury purchases from Louis Vuitton and Neiman Marcus as well as purchases from Nordstrom, the San Francisco Giants Dugout Store, Sunglass Hut, Tumi, and Wayfair; $16,000 on boat and car rentals; and $14,000 on various restaurant and entertainment expenses, among other purchases. In addition, the complaint alleges Burden wired hundreds of thousands of dollars to friends and family, $150,000 of which was spent in part on Mercedes and Land Rover vehicles.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.
Burden is charged with one count of bank fraud, in violation of 18 U.S.C. § 1344. Burden faces a maximum penalty of 30 years in prison and a one million dollar fine, if convicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Burden was arrested this morning in Austin, Texas. Her initial appearance in United States District Court will be in the Western District of Texas on Monday, February 8, 2021, before United States Magistrate Judge Mark Lane, who sits in Austin. It is anticipated that Burden will be ordered at that hearing to appear in the United States District Court in Oakland, California, to face the charge in the federal complaint. The date for her initial appearance in Oakland federal court is as yet unscheduled.
Abraham Fine is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske and Laurie Worthen. The prosecution is the result of an investigation by TIGTA, IRS-CI, and the FBI.
Norwalk Felon Admits Possessing Loaded Rifle with Obliterated Serial NumberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYROME SAWYER, also known as “Tyrone Sawyer” and “Crack,” 30, of Norwalk, pleaded guilty today before U.S. District Judge Stefan R. Underhill to unlawful possession of a firearm by a convicted felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, on April 19, 2019, Sawyer was arrested after Norwalk Police executed a search warrant at his apartment and located a Hi-Point model 995, 9mm carbine rifle with an obliterated serial number and a loaded magazine.
Sawyer’s criminal history includes state convictions for felony firearm, drug and escape offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for April 30, 2021, at which time Sawyer faces a maximum term of imprisonment of 10 years.
Sawyer has been detained since his arrest.
This investigation is being conducted by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New Hampshire Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
BOSTON – A New Hampshire man pleaded guilty yesterday in federal court in Boston to traveling to have sex with a minor and child pornography offenses.
Donald Gibson, 38, of Nashua, N.H., pleaded guilty to traveling with intent to engage in illicit sexual conduct with a person under 18 years of age, distribution of child pornography and transportation of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for June 11, 2021. Gibson was arrested and charged by criminal complaint in February 2020.
Gibson communicated via various text messaging applications with an undercover agent and devised a plan to meet the agent and his purported 13-year-old daughter in a hotel room in Tewksbury on Feb. 5, 2020. During the conversations, Gibson distributed child pornography to the undercover agent. On Feb. 5th, Gibson drove from New Hampshire to the Tewksbury hotel. Law enforcement agents intercepted Gibson as he was entering the hotel and found him in possession of a newly-purchased, unopened box of condoms, $90 cash, and a cell phone. The forensic analysis of the phone Gibson had on his person revealed child pornography organized in several folders.
During a consensual interview with agents, Gibson admitted that, during their conversations, he had given the undercover agent suggestions for how the undercover agent could start having sexual contact with his daughter, and that they had discussed meeting at the hotel so that they three of them (Gibson, the undercover agent and the 13-year-old daughter) could have sex. Gibson indicated that he planned to give the undercover agent more child pornography.
The charge of traveling with intent to engage in illicit sexual conduct with a person under 18 years of age provides for a sentence of up to 30 years in prison. The charges of distribution and transportation of child pornography both provide for a mandatory minimum term of five years and up to 20 years in prison. All three charges carry a term five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Tewksbury Police Chief Ryan M. Columbus; and Nashua (N.H.) Police Chief Michael Carignan made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
NDTX Round-Up: January 29 – February 4Read the Press Release
SENTENCING – BRANDON DOUGLAS DURGIN
On January 29, Brandon Douglas Durgin, 24, was sentenced to 51 months in federal prison for possession of a firearm by a felon. According to a criminal complaint, in July 2020, Arlington Police Department initiated an investigation for a stolen sport utility vehicle. According to the victim, Durgin had taken the SUV without permission along with a 9mm caliber pistol. APD tracked and relayed the location of the vehicle to the Fort Worth Police Department. Officers found the stolen SUV in a parking lot with Durgin seated in the driver’s seat. FWPD officers removed Durgin from the driver’s seat, and placed handcuffs on him. At that time, Durgin told the officers that he had a handgun in his front waistband. When Durgin was placed in the back of the patrol unit, he advised law enforcement that he is a convicted felon. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Arlington Police Department and the Fort Worth Police Department. Assistant U.S. Attorney Mark Nichols prosecuted the case.
GUILTY PLEA – BERTHA GARAY
On February 2, Bertha Garay, 47, plead guilty to theft of government funds. Beginning in 2007, Garay had in her care the child of a deceased parent. She received mother with child in care benefits through the Social Security Administration. In 2013, the child left Garay’s care and she knowingly failed to disclose the change to Social Security Administration. Garay admits that from June 2013 to September 2015, she defrauded the Social Security Administration of approximately $40,000. Garay faces up to 10 years in federal prison for her crimes. This case was investigated by the Social Security Administration. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
SENTENCING – RODNEY DISMUKE
On February 4, Rodney Dismuke, 29, was sentenced to 54 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. Dismuke and co-conspirators operated a Dallas apartment as a drug trafficking location. On more than one occasion, Dismuke sold cocaine to a confidential source at the apartment. Additionally, Dismuke was in possession of a firearm which he utilized to further his drug trafficking purposes. This case was investigated by the FBI and the Dallas Police Department.
SENTENCING – GUILLERMO ZARCO VILLASENOR
On February 4, Guillermo Zarco Villasenor, 28, was sentenced to 150 months in federal prison for possession with intent to distribute a controlled substance. According to a complaint, a confidential source provided an address to Villasenor under the guise that it belonged to a potential new client in the Dallas area that wanted to establish a relationship with a drug trafficking network. On April 30, 2018, Villasenor had 443 grams of methamphetamine shipped to a location in Addison, Texas to be sold for approximately $6,000. This case was investigated by the FBI. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
Mission Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 1, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Robert James Riley, age 40, was sentenced to 11 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Riley was indicted by a federal grand jury on March 9, 2020. He pled guilty on November 5, 2020.
The conviction stemmed from Riley possessing a handgun in March 2019 near the South Antelope Community on the Rosebud Sioux Indian Reservation while he was a user of, and addicted to, methamphetamine. Riley admitted to law enforcement he possessed the handgun before he sold it to a methamphetamine trafficker. The handgun was seized by law enforcement during a traffic stop, which also uncovered methamphetamine, drug paraphernalia, and a large amount of U.S. currency.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Riley was immediately remanded to the custody of the U.S. Marshals Service.
Mexican National Residing in Turlock Sentenced to 6 Years in Prison on Gun ChargeRead the Press Release
FRESNO, Calif. — Fernando Valencia, 31, of Turlock, was sentenced Thursday to six years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 30, 2019, Valencia was in possession of a loaded firearm in a vehicle in Turlock. He was previously convicted of multiple felonies, including a violent assault, and was therefore prohibited from possessing firearms and ammunition. At the time of Valencia’s arrest, he was on federal probation in the Southern District of California following a 2014 conviction.
This case was the product of an investigation by the Federal Bureau of Investigation, the Turlock Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GUADALUPE HERRERA-PEREZ, age 41, a citizen of Mexico, pled on February 3, 2021 today to a one-count Bill of Information for illegal reentry of a removed alien after deportation, in violation of 8 U.S.C. '' 1326(a) and (b)(2).
According to the Bill of Information, GUADALUPE HERRERA-PEREZ reentered the United States on or about November 26, 2017, after having been previously removed therefrom on or about January 28, 1998.
GUADALUPE HERRERA-PEREZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for May 12, 2021. 2018.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican Drug Traffickers Charged with Conspiring to Import Large Quantities of Narcotics into the United States Based on Seizure of 2.5 Tons of Methamphetamine and 100,000 Fentanyl PillsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Division of Homeland Security Investigations (“HSI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced that JOSE LORETO GASTELUM‑TORRES and FREDY ALEJANDRO GASTELUM‑VEGA were charged in a criminal complaint in Manhattan federal court with conspiring to import approximately 2.5 tons of methamphetamine and 100,000 fentanyl pills into the United States. The charge arises from a January 29, 2021, seizure of approximately 2.5 tons of methamphetamine and 100,000 fentanyl pills in Sinaloa, Mexico.
Manhattan U.S. Attorney Audrey Strauss said: “Thanks to the DEA, HSI, the NYPD, and the rest of our OCDETF New York Strike Force partners, a major shipment of potentially lethal drugs was interdicted before it could addict, poison, and potentially kill untold numbers of people in the United States.”
DEA Special Agent in Charge Raymond P. Donovan said: “There is a tidal wave of fentanyl and methamphetamine being pushed from Mexico into the United States. Case in point, these two traffickers were allegedly caught red-handed with over $90 million dollars’ worth of fentanyl and methamphetamine. Traffickers see opportunities when drug overdoses rise, and they are trying to flood American markets with these synthetic, highly addictive, and dangerous drugs. DEA and our law enforcement partners will continue to target drug networks to keep Americans safe and save lives.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Those arrested allegedly sought to traffic thousands of fentanyl pills and multiple tons of methamphetamine, which would only exacerbate the plague currently devastating our community while steadily increasing addictions and overdose deaths. The Strike Force has been a proven model for success in dismantling transnational narcotics trafficking organizations. HSI showcased our unique value at the Strike Force in this case by leveraging our border resources to not only effectively address threats and vulnerabilities but moreover promote collaboration in furthering these investigations, making timely and significant arrests, and stopping deadly drugs from flooding our streets.”
Police Commissioner Dermot Shea said: “Today’s charges demonstrate that the investigative efforts of the NYPD in coordination with our law enforcement partners are far-reaching and focused. As long as individuals, wherever they may be, are involved in illegal narcotics trafficking, the NYPD and our partners will relentlessly work to end the threat to public safety. I commend and thank the NYPD investigators, members of the Organized Crime Drug Enforcement Strike Force Initiative, agents from the New York Division of the U.S. Drug Enforcement Administration, and the attorneys at the United States Attorney’s Office, Southern District, for their dedication to this investigation.
As alleged in the Complaint unsealed in federal court[1]:
On or about January 29, 2021, Mexico’s Secretaría de Marina (the “Mexican Navy”) located and began tracking an outboard‑powered boat traveling from Las Arenitas, Sinaloa, Mexico, northwest through the Gulf of California. Approximately several hours later, the Mexican Navy interdicted the vessel in or around Topolobampo, Sinaloa, Mexico, and arrested GASTELUM‑TORRES and GASTELUM‑VEGA. Mexican Navy officers seized approximately 960 plastic containers from the boat, which contained approximately 2.5 tons of methamphetamine and 100,000 pills of fentanyl.
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GASTELUM‑TORRES, 53, and GASTELUM‑VEGA, 33, of Mexico, are each charged with conspiring to import at least 500 grams of methamphetamine and at least 400 grams of fentanyl into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
This case is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
This investigation was conducted by the OCDETF New York Strike Force in partnership with the DEA’s law enforcement partners. The OCDETF New York Strike Force comprises federal, state, and local law enforcement agencies supported by OCDETF and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, NYPD, New York State Police, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
Ms. Strauss praised the outstanding investigative work of the OCDETF New York Strike Force.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Alexander Li, Benjamin Woodside Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Complaint is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Meridian Man Pleads Guilty under Project EJECT to Being a Convicted Felon in Possession of AmmunitionRead the Press Release
Jackson, Miss. – Todrian Kwame Laphand, 27, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to possession of ammunition by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 10, 2019, Laphand, who was under surveillance by the Lauderdale County Sheriff’s Office, purchased 40 rounds of .223 caliber ammunition from a pawn shop in Meridian Mississippi. Laphand also purchased a large sheath or holster for a large semi-automatic pistol capable of firing .223 caliber ammunition. After Laphand left the pawn shop, in the company of three other people, officers of the Sheriff’s Office conducted a traffic stop and took Laphand into custody.
Laphand was found in possession of the ammunition he purchased, along with a firearm and the sheath that contained that firearm. Also found in the vehicle were two other firearms and several different suspected controlled substances. Laphand has prior felony convictions for felony fleeing from a law enforcement officer, sale of marijuana and possession of a firearm by a convicted felon. As a convicted felon, it is contrary to federal law for Laphand to possess any ammunition.
Laphand was indicted by a federal grand jury on November 19, 2019. He is currently in custody and will be sentenced on May 12, 2021 by Judge Jordan. Laphand faces a maximum penalty of ten years in prison and up to a $250,000.00 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Lima man sentenced to 12 years for selling substance that caused overdoseRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that Loyd T. Turks, Jr., 26, of Lima, Ohio, was sentenced to 144 months imprisonment by U.S. District Court Judge Jack Zouhary. Turks pleaded guilty to one count of distribution of fentanyl, methylfentanyl, heroin and cocaine; one count of distribution of methylfentanyl; one count of distribution of cocaine and two counts of distribution of U47700, a Schedule I controlled substance.
“This case illustrates that our message bears repeating: fentanyl and fentanyl analogues are mixed into other drugs, including heroin and cocaine, which increases the likelihood that fatal overdoses will result,” said Acting U.S. Attorney Bridget M. Brennan. “We will continue to seek significant prison sentences for those who distribute this poison in our communities.”
On August 22, 2017, law enforcement agents received information from two individuals, Person #1 and Person #2, that Loyd Turks was a drug dealer in Lima, Ohio, who sold large quantities of illegal narcotics. Person #1 and Person #2 then conducted a controlled buy of cocaine from Turks and the next day, unbeknownst to law enforcement, Person #1 contacted Turks and purchased what was believed to be heroin. Person #1 ingested the suspect-heroin and subsequently overdosed. Person #2 found Person #1 unconscious and called 911. Emergency crews arrived and administered Narcan and Person #1 was revived and transported to the hospital. A sample amount of the drug ingested was retrieved and turned over to law enforcement, as well as a blood sample from Person #1.
Person #1 interviewed with law enforcement following the incident and informed the officer that Turks had forced Person #1 to ingest the substance in order to prove that he was not working with law enforcement. Person #1 agreed to recontact Turks and request to buy the same substance that had caused the overdose.
On August 24, 2017, a meeting was arranged to complete the transaction, and upon his arrival, Turks was arrested. Investigators searched Turks and found in his possession a white powdery substance. The substance found on Turks, the sample taken from the scene of the overdose and the blood sample of Person #1 all tested positive for a mixture of U47700 and fentanyl analogues.
Turks pleaded guilty to all five counts of the indictment in October of 2020.
This matter was investigated by the Federal Bureau of Investigation and the West Central Ohio Crime Task Force. The case was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman and Michael J. Freeman.
Lawrence Man Sentenced for Fentanyl and Firearms ChargesRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for fentanyl conspiracy and unlawful possession of firearms, including an AR-15 rifle.
Ariel Pagan-Romero, 31, was sentenced by U.S. District Court Judge Leo T. Sorokin to 12 years in prison and five years of supervised release. In October 2020, Pagan-Romero pleaded guilty to conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; distribution and possession with intent to distribute 40 grams or more of fentanyl; and being a felon in possession of firearms.
Over the course of several months, a federal investigation involving an undercover officer identified Pagan-Romero’s fentanyl distribution operation. During a search of Pagan-Romero’s residence, agents seized pistols, an AR-15 rifle, ammunition, fentanyl and cocaine base.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by Homeland Security Investigations in Boston; the Massachusetts State Police; and the Andover, North Andover, Billerica, Chelmsford, Lowell and Lawrence Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Kern County Man Sentenced to over 5 Years in Prison for Check and Credit Card Fraud, Identity Theft, and Firearms OffensesRead the Press Release
FRESNO, Calif. — Rogelio Benavides, 35, of Arvin, was sentenced Thursday to five years and five months in prison for bank fraud, aggravated identity theft, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Benavides was also ordered to pay over $20,000 in restitution and forfeit another $20,000 as part of his sentence.
Benavides pleaded guilty on Nov. 12, 2020. According to court documents, between November 2018 and September 2019, Benavides obtained hundreds of pieces of stolen mail that included checks, checkbooks, and personally identifiable information belonging to other individuals and businesses. He then altered and forged checks and either cashed or deposited the checks into his own bank accounts. He used personally identifiable information to apply for credit cards, which he used to make purchases and cash advances. He accessed bank accounts belonging to the other individuals and businesses and made payments for credit cards, loans, and insurance policies in his own name and the names of his associates. Benavides’ scheme caused more than $95,000 in fraudulent charges to be made to other individuals’ bank accounts and credit cards.
During the scheme, Benavides was found to have possessed a Glock Model 19, 9 mm pistol, which was illegal given his prior felony convictions.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
Judge sentences ‘Doctors on the Go’ owner to nine years in prison for fraud and receiving kickbacksRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Denis Mikhlin to 108 months in prison today. The judge also ordered Mikhlin to pay restitution. The 41-year-old St. Louis County, Missouri resident pleaded guilty, in August, to four felony counts of conspiracy, obtaining oxycodone and other opioid drugs by fraud and deceit, receiving illegal kickbacks in return for sending urine specimens to Central Diagnostic Laboratory for medically unnecessary testing, and causing the Medicare and Medicaid programs to pay $4,704,568 for medically unnecessary prescription drugs and drug tests.
Mikhlin conspired with Dr. Jerry Leech and others to issue and distribute illegal prescriptions for opioids and other controlled substances to patients. Mikhlin and his co-conspirators knew the patients did not have a legitimate medical need for drugs and instead were abusing the drugs or selling them.
Additionally, Mikhlin recruited individuals and paid them for the use of their names on the fraudulent prescriptions. Once the prescriptions were filled, some of the drugs were returned to Mikhlin and the rest were kept by the individuals or sold to others. To conceal this illegal activity, Mikhlin and others created patient files, falsely indicating the patients had been examined by the prescribing doctors and the patients were regularly monitored and tested.
On February 2, 2021, co-defendant Dr. Jerry Leech pleaded guilty to four felony counts for his actions related to this conspiracy and fraud scheme. His sentencing is scheduled for May 11, 2021.
Co-defendants Erin Herman, Vladimir Kogan, Ebony Price, Tijuana Spates, and Erica Spates have also pleaded guilty. All are scheduled for sentencing in May 2021.
The case was investigated by the Office of the Inspector General, U.S. Department of Health and Human Services, Federal Bureau of Investigation, Missouri Medicaid Fraud Control Unit, Missouri Attorney’s General Office and the U.S. Department of Defense. Assistant United States Attorney Dorothy McMurtry is handling the case.
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Judge sentences former head of St. Louis-Area Charter School for $2.4 Million FraudRead the Press Release
ST. LOUIS – United States District Audrey Fleissig sentenced Michael Malone to 12 months and 1 day in prison today. Malone was also ordered to make restitution to the Missouri Department of Elementary and Secondary Education in the amount of $2,362,761.33. The 42-year-old St. Louis, Missouri resident pleaded guilty, in August, to three counts of wire fraud connected to a scheme to defraud and obtain education funds from the State of Missouri relative to the operation of the St. Louis College Prep Charter School from 2011 through 2018.
The St. Louis College Prep Charter School (“SLCP”) was a Missouri Charter School located in St. Louis, Missouri. From April 2011 through June 2015, it operated out of leased premises located in the 2900 block of South Grand Avenue, at which time it purchased a building in the 1200 block of Grattan Street, where it operated until the school’s closing in May 2019. During its final school year of 2018-2019, SLCP served students in grades six through twelve. As a Missouri Charter School, SLCP was tuition free and funded by Missouri and federal education funds. SLCP received its state funding through Missouri’s Department of Elementary and Secondary Education (“DESE”) based upon SLCP’s reported student attendance. Per-student funding is based on average daily attendance, how often students are reported to be in the school, rather than enrollment. Malone founded SLCP and served as the Executive Director of SLCP from the school’s inception during 2011 until his resignation on November 1, 2018. Malone was actively involved in the day-to-day management and administration of SLCP, maintained his office in the primary school building and was responsible for reporting the SLCP student attendance numbers to DESE in order for DESE to calculate SLCP’s state funding.
As part of his scheme, Malone falsely inflated SLCP students’ average daily attendance in his reports to DESE. For four of the seven school years between 2011-2012 and 2017-2018, Malone reported students’ average daily attendance in excess of SLCP’s actual enrollment. For example, during the 2013-2014 school year, Malone reported average daily attendance of 220, when actual enrollment at SLCP was only 191 students. During the 2016-2017 school year, Malone reported average daily attendance of 326, when actual enrollment at SLCP was only 290 students. These falsely inflated average daily attendance numbers reported by Malone to DESE resulted in increased state funding to SLCP.
SCLP operated on a year-long school schedule and an extended school day with no summer school and no remedial classes. However, as part of his scheme, Malone inflated student attendance numbers by falsely claiming regular school days and hours as summer school or remedial hours, increasing the state funding received from DESE. Malone also falsely inflated actual student daily attendance. For example, during the 2016-2017 school year, Malone inflated the daily attendance records of 81 out of 333 students, or 24% of the actual SLCP student body. During the 2017-2018 school year, Malone inflated the daily attendance records of 188 out of 319 students, or 59% of the actual SLCP student body. Inflated hours totaled approximately 10,044 hours for the 2016-2017 school year and approximately 13,255 hours for the 2017-2018 school year.
Malone used the fraudulently obtained increase in state funding, approximately $2,400,000, to maintain SLCP’s ongoing operations during a period when costs to operate the school were increasing significantly. Malone also used the increased state funding to give SLCP a competitive advantage over St. Louis Public Schools and other St. Louis Charter Schools when recruiting students. As Missouri state funding follows the student, each St. Louis resident student successfully recruited to SLCP meant an increase in funding for SLCP and a decrease in funding for St. Louis Public Schools. The additional funds provided to SLCP were used to pay for resources which were not equally accessible to St. Louis Public Schools and other St. Louis Charter Schools.
This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of the Missouri Department of Elementary and Secondary Education and the Missouri State Auditor’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
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Iowa Man Sentenced to 10 Years in Prison for Plot to Harm Federal OfficialsRead the Press Release
United States Attorney Joe Kelly announced that Justin Lee Fletcher, 39, of Des Moines, Iowa, was sentenced on February 4, 2021 in Council Bluffs, Iowa, by Senior United States District Judge Joseph F. Bataillon to 120 months’ imprisonment for four counts of solicitation to commit a crime of violence. Fletcher was also sentenced to 21 months for failing to register as a sex offender and 21 months for a supervised release violation. There is no parole in the federal system. Fletcher will begin a lifetime term of supervised release upon his release from prison. The time will run concurrent for all three cases.
An investigation conducted by the Federal Bureau of Investigation determined that from May 15, 2019, through August 8, 2019, in the Southern District of Iowa, Fletcher was an inmate at the Polk County Jail, Des Moines, Iowa, facing federal charges for failing to register as a sex offender. While at the Polk County Jail, Fletcher communicated with numerous other inmates. Fletcher believed that one of these inmates had gang contacts that would harm individuals in exchange for payment. During the course of communications with this inmate, Fletcher solicited the inmate’s gang contacts to physically assault officials in the Southern District of Iowa to include a United States District Court Judge, an Assistant United States Attorney, a former Assistant United States Attorney, and a United States Probation Officer. Specifically, Fletcher solicited the inmate’s gang contacts to have the United States District Court Judge's eyes and nose injured. Fletcher solicited inmate’s gang contacts to have Assistant United States Attorney’s fingers cut-off. Fletcher solicited the inmate’s gang contacts to have the United States Probation Officer’s knee and tongue injured. Fletcher also solicited the inmate’s gang contacts to have the former Assistant United States Attorney’s back injured.
The FBI became aware of Fletcher’s intentions in June 2019. The FBI intercepted a coded letter handwritten by Fletcher to an individual located outside of the Polk County Jail. The FBI was able to decrypt the letter, which stated “THEY CUT FIVE OF HIS FINGERS OFF.”
During the course of continued communications with the inmate, Fletcher was recorded discussing the specific injuries he wanted done to the United States District Court Judge, Assistant United States Attorney, former Assistant United States Attorney, and United States Probation Officer. Fletcher and inmate also discussed payments to be made to the inmate’s gang contacts.
The FBI determined that Fletcher’s threats to assault the aforementioned individuals were with the intent to retaliate against those individuals because of their performance of official duties during their respective term of service.
FBI Omaha Special Agent in Charge Eugene Kowel said, “After 10 years in federal prison, Fletcher will spend the rest of his life under federal supervision. His case serves as a reminder that the FBI and our law enforcement partners will bring all of our investigative resources to bear on those who threaten the lives of federal officials.”
The United States Attorney’s Office for the District of Nebraska was specially appointed to handle the prosecution of Fletcher in the Southern District of Iowa after the United States Attorney’s Office for the Southern District of Iowa was recused as a result of a conflict. Senior United States District Judge Joseph F. Bataillon was appointed to preside over the prosecution of Fletcher in the Southern District of Iowa after the formerly assigned United States District Court Judge determined there was a conflict.
This case was investigated by FBI Des Moines – Central Iowa Gang Task Force (CIGTF), which is a Safe Streets Task Force focusing on violent crime, assisted by the U.S. Marshal’s Service in Des Moines.
Illegal Alien Sentenced on Federal Meth and Firearm ConvictionsRead the Press Release
A man, illegally in the United States, who conspired to distribute methamphetamine while possessing a firearm was sentenced February 3, 2021, in federal court in Sioux City.
Oscar Pena-Solis, 30, from Mexico, pleaded guilty on September 16, 2020, to conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a prohibited person.
At the plea and sentencing hearings, evidence showed that on July 2, 2020, law enforcement conducted a traffic stop of the vehicle Pena-Solis was driving, just south of Sioux City. At the time of the stop, Pena-Solis did not have a valid driver’s permit and was in the United States illegally. During an initial search of Pena-Solis, law enforcement seized a user quantity of methamphetamine plus a methamphetamine pipe in Pena-Solis’ pocket. During a search of the vehicle, law enforcement located a loaded .22 caliber revolver under the driver’s seat. Law enforcement also seized 11 pounds of methamphetamine, in one-pound packages hidden in the vehicle and in the trailer attached thereto. Evidence further showed that Pena-Solis, at the request and direction of another co-conspirator in Des Moines, Iowa, travelled to California with a large amount of cash provided to him, obtained the methamphetamine and travelled back to Iowa to distribute the methamphetamine to persons in Sioux City and Des Moines. Pena-Solis was prohibited from the possession of a firearm due to being an unlawful user of methamphetamine as well as his illegal status in the United States.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Pena-Solis was sentenced to 180 months’ of imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Pena-Solis remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by 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 20-4061. Follow us on Twitter @USAO_NDIA.
High School Ex-Coach Sentenced for Stalking Teenage StudentRead the Press Release
A former high school track coach has been sentenced to more than 10 years in federal prison for stalking a student and possessing child pornography, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Rickey Badley, a 45-year-old former Timber Creek High School teacher and coach, was indicted in September 2020, making him the first defendant prosecuted for stalking in the Northern District of Texas. In October 2020, he pleaded guilty to one count of stalking and one count of possession of child pornography. He was sentenced today by U.S. District Judge Reed O’Connor to 131 months in federal prison.
According to court documents, Mr. Badley admitted that he stalked a 16-year-old student, calling her his “new favorite” and “little girl” and circulating false and vulgar messages about her to her family and friends.
He admitted that from December 2019 to April 2020, he anonymously mailed the victim, her parents, and her classmates numerous letters detailing fabricated sexual encounters between the victim and her teenage boyfriend. He also attempted to anonymously mail out 13 copies of a graphic haiku, which was intercepted by law enforcement before it reached addressees.
The defendant further admitted he sent the victim’s parents an anonymous letter demanding she produce two TikTock videos with sexual undertones. The letter threatened to release false and disparaging information about the victim if the videos were not posted by a certain time.
Mr. Badley was asked by the school to submit his resignation in January 2020, when administrators became aware of his conduct. That same month, the victim’s mother observed Mr. Badley driving by the family home. Six months later, in June 2020, the victim noticed Bradley pulling into a parking spot at her private athletic practice before speeding away.
The ensuing investigation into Mr. Badley uncovered pornographic images of a toddler stored on his laptop. In court documents, Mr. Badley admitted he knew the images depicted actual minors engaged in sexually explicit conduct.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
Healthcare Company and Lab Pay $845K to Resolve Federal and State False Claims Act AllegationsRead the Press Release
U.S. Attorney John H. Durham and Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that SECON OF NEW ENGLAND, LLC, d/b/a SECON LABORATORIES, and STERLING HEALTHCARE OPCO, LLC, d/b/a CORDANT HEALTH SOLUTIONS (collectively, “Cordant”) have entered into a civil settlement agreement with the federal and state governments and have paid $845,108 to resolve allegations that they violated the federal and state False Claims Acts.
Cordant Health Solutions, which is based in Denver, Colorado, provides healthcare testing and monitoring services nationwide, including laboratory services for drug testing. Cordant’s subsidiary, Secon Laboratories, is a laboratory located in Worcester, Massachusetts. Secon’s client, Crossroads, Inc., was a behavioral health residential treatment center located in New Haven, Connecticut. Many of the residents of Crossroads were enrolled in the Connecticut Medicaid program.
In 2015, Crossroads implemented a policy requiring its residents to submit to regular urine drug testing, largely for residential monitoring purposes. Crossroads ordered presumptive (screening) drug tests and definitive (confirmatory) drug tests for each resident weekly. In many cases, Crossroads ordered duplicative tests for its residents more than two times a week, and as often as three, four, or five times a week. These drug tests were performed by Cordant, and were billed by Cordant to Connecticut Medicaid.
The government alleges that Cordant knew or should have known that the tests that Crossroads ordered for its residents more than two times a week were not medically necessary. The United States and the State of Connecticut contend that Cordant failed to report and return overpayments for the claims Connecticut Medicaid paid Cordant for performing these medically unnecessary tests.
To resolve allegations under the federal and state False Claims Acts, Cordant has paid $845,108 to the government for overpayments occurring between October 6, 2015, and February 8, 2017.
“Government funded tests must be ordered based on each patient’s medical needs,” said U.S. Attorney Durham. “Laboratories have a responsibility to ensure that the claims they submit to government health care programs are for medically necessary testing services. If a laboratory discovers that it has performed and billed for tests that were not medically necessary, it has a duty and to report and return any overpayments, and to modify its practices.”
“This settlement demonstrates OIG’s commitment to ensuring that taxpayer dollars are not wasted on medically unnecessary services,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “I appreciate the continued partnership between our Office, the Connecticut U.S Attorney's Office and the Connecticut Attorney General’s Office to investigate fraud and to protect public funds.”
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek, and by Assistant Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.
Head of Merchant Bank Sentenced to 24 Months in Prison in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CRAIG ZABALA, the chairman, chief executive officer, and president of Concorde Group Holdings Inc. (“Holdings”), was sentenced today to 24 months in prison for participating in a scheme to defraud investors in Holdings, a purported merchant banking firm. Among other illicit activity, ZABALA fraudulently induced at least 17 investors to invest approximately $4.38 million based on false and misleading statements, by failing to use investors’ funds as promised, and by converting investors’ money to his own use. ZABALA pled guilty to conspiracy to commit securities fraud and wire fraud on October 22, 2020, before U.S. District Judge J. Paul Oetken, who also imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Craig Zabala defrauded investors out of more than $4 million through a purported financial services firm he controlled. He lied to investors about how much money had been raised, who had invested, how close the firm was to an IPO, and how he would use investors’ money. Zabala appropriated most of the money for his own use or to pay off investors in a Ponzi-like fashion. Now he has been sentenced to prison for his crimes.”
According to the allegations in the Complaint, the Information, and other proceedings in this case:
CRAIG ZABALA was the chairman, CEO, and president of various affiliated and intertwined purported financial services companies: Holdings, Concorde Group, Inc. (“Group”), Blackhawk Capital Group BDC, Inc. (“Blackhawk”), DBL Holdings, LLC, d/b/a “Drexel Burnham Lambert” (“DBL”), Concorde Investment Managers, LLC (“CIM”), and Concorde Europe, Ltd. (“Concorde Europe”). In or about August 2019, FINRA barred ZABALA from the broker-dealer industry, including because of his failure to cooperate with a FINRA investigation.
Holdings was a Delaware corporation formed in or about 2015, with an office in Jersey City, New Jersey, and a mailing address in New York, New York. Holdings purported to provide financial services, including merchant banking, investment banking, asset management, and securities brokerage services, to entrepreneurs, investors, and businesses in the middle market, meaning small to mid-sized companies with revenue and market capitalizations of less than $1 billion, in North America, Europe, and Asia. Holdings’ purported affiliates included Group, DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Holdings.
Group was a Delaware corporation formed in or about 1995, based in New York, New York, that purported to provide the same types of financial services as Holdings. Group’s purported affiliates included DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Group. Between in or about 2001 and in or about 2014, Group purportedly raised approximately $18 million from investors.
From at least in or about 2015 through in or about 2020, ZABALA and others perpetrated a scheme to defraud at least approximately 17 investors out of approximately $4.38 million in Holdings notes, warrants, and equity. Almost all of these investors invested in a private offering by Holdings of $25 million in senior secured notes with attached warrants paying 13 percent interest (the “Holdings Offering”).
ZABALA falsely represented that the proceeds from the offerings would be used to grow Holdings’ purported merchant banking business by investing in and buying other financial services companies. In truth and in fact, and as ZABALA well knew, Holdings did not make any investments in or buy other companies; it was a shell company.
ZABALA falsely represented that Holdings was successfully raising money from investors, claiming that Holdings had raised nearly all of the $25 million targeted in the Holdings Offering and that the family office of a wealthy German family had invested millions of dollars in Holdings. In truth and in fact, and as ZABALA well knew, Holdings only raised a few million dollars (the majority from one investor), and the family office never invested in, and never committed to invest in, Holdings.
ZABALA falsely represented to Holdings Investors that Holdings would soon have an initial public offering (“IPO”), which would result in large profits to Holdings investors. In truth and in fact, and as ZABALA well knew, Holdings was not close to an IPO.
ZABALA converted at least approximately 70 percent of the approximately $4.38 million in Holdings investor funds in the form of cash withdrawals and other transfers to himself, payments to his girlfriend, payments of his personal credit card bills, and repayment of Group investors in a Ponzi-like fashion.
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ZABALA, 69, of New York, New York, was also sentenced to three years of supervised release, ordered to forfeit $4,380,000, and to pay restitution of $4,380,000.
Ms. Strauss praised the outstanding work of the United States Postal Inspection Service’s New York Division, and also thanked the Securities and Exchange Commission and Financial Industry Regulatory Authority for their assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Joshua A. Naftalis is in charge of the prosecution.
Harrison County woman admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kaylie Marie Jones, of Wallace, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Jones, 26, pleaded guilty today to one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine.” Jones admitted to working with others to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere.
Jones faces not less than five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Island Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Elias Mendoza, 25, of Grand Island, was sentenced on February 5, 2021, in federal court in Lincoln, Nebraska for three counts of distribution of methamphetamine and one count of felon in possession of a firearm. Chief United States District Judge John M. Gerrard sentenced Mendoza to 140 months in federal prison for each of the three counts of distribution of methamphetamine, and 120 months for being a felon in possession of a firearm, with each count to be served concurrently with one another. Following the prison term, Mendoza will serve five years on supervised release. There is no parole in the federal system.
In August of 2019, Mendoza sold a confidential informant methamphetamine on three occasions. The total quantity of all sales amounted to approximately 140 grams of methamphetamine. The methamphetamine was tested by the Nebraska State Patrol lab at 99% purity. Additionally, on August 20, 2019, Mendoza sold the same confidential informant a handgun. Mendoza was a felon at the time as a result of prior Burglary and Terroristic Threats convictions. As a convicted felon Mendoza is prevented from possessing a firearm.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations and the FBI.
Gang Member Receives Nine Years in Federal Prison for Drug OffensesRead the Press Release
RALEIGH, N.C. – Shyreek Thatch, 21, of Lexington, North Carolina, was sentenced today to 108 months imprisonment for conspiracy to possess with intent to distribute and distribution of a 100 grams or more of heroin and a quantity of methamphetamine and cocaine, distribution of a quantity of heroin (aiding and abetting), and possess with intent to distribute and distribution of a 100 grams or more of heroin and a quantity of methamphetamine and cocaine (aiding and abetting).
The evidence presented in court and other information revealed that on November 14, 2019, the New Hanover County Sheriff’s Office conducted a controlled purchase of a half an ounce of heroin from Thatch. Following this controlled purchase, another purchase of heroin was orchestrated by law enforcement. Detectives conducted surveillance on Thatch and another person as they left an apartment on Park Avenue in Wilmington and drove to the meeting location. Thatch and the other person fled after law enforcement identified themselves. Thatch attempted to discard a quantity of heroin before he was arrested. His co-defendant hid a loaded .40 caliber handgun prior to his arrest. A search warrant was obtained for the Park Avenue address where detectives recovered half a kilogram of a heroin/fentanyl mixture, 55 grams of pure methamphetamine, 40 grams of ecstasy, a quantity of cocaine, another loaded .40 caliber handgun, a loaded 9mm handgun and money received from the earlier controlled purchase by law enforcement. Two other persons were arrested in the apartment. Thatch told law enforcement that he had come to Wilmington solely to make money. During the course of the investigation, law enforcement discovered that the narcotics were being imported from the High Point area for distribution in Wilmington using armed associates or gang members. According to law enforcement, Thatch was a member of a violent gang.
The investigation was part of OCDETF Operation. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of heroin, fentanyl and methamphetamine throughout the United States.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge James C. Dever III. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Hanover County Sheriff’s Office investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00005-M.
Four Seattle-area men indicted for seeking to sexually assault children during FBI online sting operationRead the Press Release
Seattle – A federal grand jury has indicted four Seattle-area men who were arrested and charged following an FBI sting operation focused on adults seeking to sexually assault children, announced U.S. Attorney Brian T. Moran. The investigation revealed that some of the defendants had molested other children or collected images of child sexual abuse before they were identified by law enforcement.
“Law enforcement reports increasing concern about online sexual exploitation of children during the pandemic,” said U.S. Attorney Moran. “Tragically, we saw this week that in service to the safety and innocence of children, two FBI agents lost their lives in Florida, and three others were wounded. I commend our local agents for their work on this matter, and indeed, all of law enforcement who risk much in pursuit of those who prey on our most vulnerable.”
According to records filed in the case, in September and October 2020, defendants allegedly communicated with undercover agents and officers via internet platforms with the intent to sexually abuse children, some as young as 6 years old. When the defendants were arrested, their electronic devices were seized, as well as items which were to be used in the planned sexual assaults.
The defendants indicted in this operation include:
- ERIC HOGAN, 33, Seattle – Attempted enticement of a minor – allegedly communicated with undercover agent about sexually assaulting the agent’s fictitious 6- and 12-year-old daughters.
- JUSTICE GALLOWAY, 26, Everett, Washington – Attempted enticement of a minor – allegedly communicated with undercover agent about sexually assaulting the agent’s fictitious 6- and 11-year-old daughters.
- CHRISTOPHER SINFIELD, 28, Woodinville, Washington – Attempted enticement of a minor and possession of child pornography – allegedly communicated with undercover agent posing as a 13-year-old girl and possessed images of child sex abuse on an electronic device at the time of his arrest.
- MARCUS WILLIAM LOWE, 33, Kirkland, Washington – Attempted enticement of a minor, possession of child pornography, and assault on a federal officer – allegedly communicated with undercover agent about sex assault of fictitious 10-year-old daughter. LOWE attempted to flee from agents at the arrest location, pinning and injuring an agent between his car and another vehicle. Further investigation revealed possession of images of child sexual abuse and molestation of a child under the age of 12.
“During this time of social distancing, we are relying on the Internet more than ever,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “Although electronic resources are so pervasive in our daily lives, we must remain ever vigilant and remember how powerful and far-reaching they can be, both for good and for harm. This case demonstrates the ongoing commitment of the FBI to protect our most vulnerable citizens: our children.”
Attempted enticement of a minor is punishable by a mandatory minimum 10 years in prison and up to life in prison. Possession of child pornography is punishable by up to 20 years in prison. Assault on a federal officer is punishable by up to 20 years in prison.
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases are being investigated by the FBI. The operation was conducted in cooperation with the Seattle Police Department, and the Kirkland Police Department. The cases are being prosecuted by Special Assistant United States Attorney Laura Harmon and Assistant United States Attorney Matthew Hampton. Ms. Harmon is a King County Deputy Prosecutor specially designated to pursue child sexual exploitation cases in federal court.
Former correctional officer admits to sexual abuse of an inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA –Scott Douglas Born, a former correctional officer at Federal Correctional Institution Hazelton’s Female Facility has admitted to the sexual abuse of an inmate, U.S. Attorney Bill Powell announced.
Born, 33, of Bruceton Mills, West Virginia, pled guilty today to one count of “Sexual Abuse of a Ward.” Born admitted to accepting oral sex from an inmate at the secure female facility from September 2018 to January 2019.
Born faces up to 15 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Department of Justice Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Foreign national sent to prison for distributing multiple kilograms of methRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old legal permanent resident of McAllen has been sentenced following his conviction in Corpus Christi federal court of conspiring to possess and distributing over 21 kilos of meth, announced U.S. Attorney Ryan K. Patrick.
Adrian Lechuga Rievoles pleaded guilty Dec. 30, 2019.
Today, Senior U.S. District Judge Janis Graham Jack ordered him to serve a total of 168 months in federal prison to be followed by five years of supervised release. At the hearing, the court found he was not truthful about his role in the conspiracy.
On Feb. 9, 2019, authorities discovered disconnected speaker boxes in the trunk of a Ford Focus at the U.S. Border Patrol checkpoint near Falfurrias which appeared to be usually heavy. They ultimately found multiple bundles of meth weighing over 21.53 kilograms with a value of more than $1 million.
The investigation led to Rievoles. Law enforcement confirmed his involvement as an organizer in a vast meth distribution network which covered all major Texas cities and included multiple states along the Gulf Coast.
Authorities apprehended Rievoles July 29, 2019, as he attempted to enter the United States from Mexico. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
Felon Sentenced to 91 Months in Federal Prison for Carjacking During 2020 ProtestsRead the Press Release
LOUISVILLE, Ky. – Damion Lemont Hayes, 21, of Louisville, Kentucky, was sentenced by United States District Judge David J. Hale on Thursday, February 4, 2021, to 91 months’ imprisonment followed by a 3 year term of Supervised Release for his role in a carjacking that occurred during protest activity in Louisville last year, announced Acting United States Attorney Michael A. Bennett.
“The commitment and partnership between federal law enforcement and LMPD in the fight against violent crime, which includes the extremely dangerous act of carjacking, is very strong,” said Acting U.S. Attorney Michael A. Bennett. “Like this defendant, those who carjack and threaten the safety of others will be identified, apprehended, and prosecuted.”
“Over the summer, a number of individuals attempted to exploit the unrest in Louisville by committing violent crimes for their own personal gain,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office. “Mr. Hayes was one such person. Mr. Hayes’ arrest, conviction, and ultimately his 91-month sentence shows that FBI Louisville and its partners are committed to fostering safe communities by removing violent offenders from our neighborhoods. We simply will not, and cannot, tolerate carjackings in our city.”
“Recently, ATF joined the U.S. Attorney, our federal law enforcement partners and LMPD to address the recent and disturbing uptick in carjackings,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “This is a violent crime that threatens the safety of our community. ATF will continue to leverage all our resources to combat crimes with guns and seek justice for innocent victims.”
On October 26, 2020, Hayes pleaded guilty in United States District Court to the single count of the Indictment charging him with carjacking in violation of Title 18, U.S.C., Sections 2119 and 2. Specifically, Hayes admitted to taking a 2017 Subaru Forester on June 3, 2020, in Jefferson County, Kentucky, by force, violence, and intimidation, with the intent to cause death and serious bodily harm for the identified victim.
In addition to the term of imprisonment, Hayes was ordered to pay victim restitution in the amount of $ 20,117.81. There is no parole in the federal system.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Louisville Metro Police Department investigated the case.
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Federal Indictment Charges Department of Veterans Affairs Procurement Supervisor with Pocketing KickbacksRead the Press Release
CHICAGO — A procurement supervisor at the Jesse Brown Veterans Affairs Medical Center in Chicago pocketed kickbacks from the president of a medical supply company to steer the company at least $1.7 million in product orders, many of which were never fulfilled, according to an indictment returned in federal court in Chicago.
The indictment accuses THOMAS E. DUNCAN, a supervisor in the medical center’s Central Supply department, of receiving approximately $36,250 in kickbacks paid by checks, as well as an additional amount in cash, from DANIEL DINGLE, the president of a medical supply company based in south suburban Dolton. The checks were made payable to Helping Hands Properties LLC – a third-party entity managed by Duncan – and contained false and misleading memo entries in order to conceal and disguise the existence and purpose of the kickbacks, the indictment states. In exchange for the kickbacks, Duncan used his official position at the VA to fraudulently initiate and approve purchases of products from Dingle’s company, knowing that many of the products would not be delivered to the VA, the indictment states.
The alleged fraud scheme began in 2012 and continued until 2019. In late 2018 and early 2019, while the Veterans Affairs Inspector General’s Office was investigating the matter, Duncan told Dingle to falsely tell investigators that the payments Duncan received from Dingle’s company were for work performed by Helping Hands Properties, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Duncan, 37, of Chicago, with five counts of wire fraud, one count of witness tampering, and one count of falsifying records. Dingle, 50, of Riverdale, is charged with four counts of wire fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gregg Hirstein, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General. The government is represented by Assistant U.S. Attorney Heidi Manschreck.
“These charges demonstrate the VA OIG’s commitment to protecting American taxpayers,” said Special Agent-in-Charge Hirstein. “Individuals and companies involved in corrupting the VA’s business practices will be held accountable.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Returns Indictment Against Denver Man for Aiming Laser Pointer at Denver Police Department HelicopterRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Logan Scott Debyle of Denver has been indicted for aiming a laser pointer at a Denver Police Department (DPD) helicopter on November 4, 2020. Debyle was originally charged by a criminal complaint on November 6, 2020. According to the affidavit in support of the original complaint, Debyle allegedly used a green laser pointer to illuminate the cockpit of a DPD helicopter called “Air 1” as the helicopter observed civil unrest during the evening of November 4, 2020. The flight crew of Air 1 viewed two men associated with the laser. The men were then detained by DPD police officers.
“We are proceeding with this and other matters to ensure that laws are enforced both here in Denver, as well as at the United States Capitol,” said United States Attorney Jason Dunn. “Peaceful protests will be protected, but lawless rule breaking will not be tolerated.”
Debyle is charged with violating 18 U.S.C. § 39A. If convicted, he faces a sentence of not more than five years imprisonment and a fine of not more than $250,000. The charge pending against the defendant is an allegation, and the defendant is presumed innocent unless and until proven guilty in a court of law.
This matter is being investigated by the FBI’s Denver Field Office and the Denver Police Department. Assistant United States Attorney David Tonini is handling the prosecution on behalf of the United States.
Case numbers: 20-mj-180 & 21-cr-032
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Fayette County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Eddie McKinney, 33, of Mt. Hope, pled guilty to distribution and attempted distribution of prepubescent child pornography.
“Child pornographers like McKinney pose grave danger to our most vulnerable,” said United States Attorney Mike Stuart. “The work of the FBI and their federal, state and local law enforcement partners is critical to removing these offenders from our communities and keeping West Virginia’s children safe.”
McKinney admitted that on December 3, 2015, he distributed child pornography using peer-to-peer file sharing software. He admitted that he knowingly possessed and distributed to others images depicting a minor engaged in sexually explicit conduct. Law enforcement recovered over 600 images of child pornography from his home, including images involving sadistic and masochist conduct.
McKinney faces a minimum of five years in prison and up to 20 years in prison when sentenced on May 6, 2021.
The Federal Bureau of Investigation (FBI) and the Kanawha County Sheriff’s Office conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Julie M. White 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-00142.
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Essex County Man Indicted for Operating Heroin Mill in His ApartmentRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted an Essex County, New Jersey, man for narcotics offenses for operating a large-scale heroin mill out of his apartment, Acting U.S. Attorney Rachael A. Honig announced.
Alexis Garcia Cabrera, 51, of Newark, is charged with possessing over 400 grams of fentanyl with intent to distribute. Garcia Cabrera was previously charged by complaint in May 2019. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On May 9, 2019, law enforcement officers executed a search warrant at Garcia Cabrera’s residence and found multiple freezer-type bags containing suspected heroin as well as a large quantity of loose narcotics that were in the processing stage. Law enforcement officers also found equipment used to process and “cut” heroin, including grinders, sifters, and chemical cutting agents, and large quantities of materials designed to package heroin for street-level distribution, including 1,000 glassine envelopes. Agents located multiple “bricks,” or packages of 50 individual doses, of suspected heroin, which are intended for street-level distribution. Subsequent lab tests revealed that the suspected heroin also contained fentanyl.
The possession of over 400 grams of fentanyl with intent to distribute count carries a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office OCDETF/Narcotics Unit.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Dominican Republic Man Sentenced to 132 Months for Transporting FentanylRead the Press Release
United States Attorney Joe Kelly announced that Nelson Nicholas Nunez-Acosta, 55, of La Vega, Dominican Republic, was sentenced on February 4, 2021 by Chief United States District Judge John M. Gerrard for Possession with Intent to Distribute 400 grams or more of fentanyl. Nunez-Acosta received a sentence of 132 months with a five-year term of supervised release to follow. There is no parole in the federal system.
On April 26, 2018, a Nebraska State Patrol trooper conducted a traffic stop on an NNN Transport semi-truck hauling a refrigerated trailer for a traffic violation. The driver, Felipe Minaya, was an employee of NNN Transport, and the passenger, Nelson Nicholas Nunez-Acosta, was the company owner. During the course of the traffic stop, the trooper became suspicious of criminal activity. While inspecting the refrigerator unit inside the trailer, the trooper determined that there was a hidden compartment concealed behind the unit. After accessing the hidden compartment, the trooper discovered 42 bricks containing 118 pounds of fentanyl.
Further investigation by the Nebraska State Patrol determined that Minaya became aware that he was hauling narcotics when Nunez-Acosta flew from New Jersey to California to meet him. During this time, the semi-trailer was loaded with the fentanyl. In addition to the criminal sentence, Nunez-Acosta also forfeited the semi-truck.
Minaya was sentenced on November 9, 2020, to 70 months’ imprisonment with a three-year term of supervised release to follow.
This case was investigated by the Nebraska State Patrol.
Dominical National Sentenced, Facing Deportation for Trafficking Fentanyl, Crack Cocaine, CocaineRead the Press Release
PROVIDENCE – A Dominican national previously convicted in Massachusetts on drug trafficking charges and for illegally entering the United States was sentenced on Thursday in U.S. District Court in Providence to eight years in federal prison for trafficking fentanyl, crack cocaine, and cocaine.
In May 2018, Rhode Island State Police developed information that Cristian Alberto Germosen Reynoso, 42, of Providence, who had been arrested and convicted multiple times in Massachusetts on drug charges, was allegedly dealing heroin in Rhode Island. Law enforcement surveillance of Reynoso’s residence revealed activity consistent with drug trafficking.
Around that same time, a state arrest warrant was issued for Germosen after it was determined that he provided law enforcement a driver’s license in the name of another individual during a motor vehicle stop for a traffic violation. It was also determined that Germosen was wanted by the U.S. Marshal Service in Boston for violating the terms of his supervised release in relation to a sentence imposed for conspiracy to distribute five or more kilograms of cocaine.
On June 27, 2019 Rhode Island State Police executed a federal court-authorized search of Germosen’s Providence residence and seized nearly 660 grams of fentanyl, 602 grams of a heroin/fentanyl mixture, 78.42 grams of cocaine, 1.38 grams of cocaine salts, a kilo press, $6,216.00 in cash, and various items used in the sale, packaging, and distribution of narcotics.
According to information presented to the court, following his arrest, Germosen admitted to law enforcement that he obtained and had been using a stolen identity he obtained several years earlier.
Germosen pleaded guilty in U.S. District Court in Providence on September 21, 2020, to possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 28 grams or more of cocaine base, and possession with intent to distribute cocaine.
On Thursday, U.S. District Court Judge Mary S. McElroy sentenced Germosen to 96 months in federal prison to be followed by four years of supervised release, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
Germosen faces deportation proceedings upon completion of his term of incarceration in federal prison.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Doctor Sentenced for Social Security FraudRead the Press Release
SAN JUAN, P.R. – Doctor Americo Oms-Rivera, 67, was sentenced to five years of probation by United States District Judge Francisco A. Besosa for conspiracy to commit wire fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Oms-Rivera plead guilty to conspiracy to commit wire fraud on October 23, 2020.
As part of the sentence imposed, Oms-Rivera will pay $321,000 in restitution in favor of the Social Security Administration (SSA) and a $7,500 fine to be paid in 60 days. Oms-Rivera will also forfeit a property in Harbour Lights Estate in Palmas Del Mar, Humacao, PR, will surrender his DEA license and will be excluded from participating in SSA case assessments, Medicare, Medicaid and all other federal health care benefit programs.
This case was jointly investigated by the Social Security Administration Office of the Inspector General, New York Field Division, the Drug Enforcement Administration and the Puerto Rico Police Bureau, with assistance from the Federal Bureau of Investigation and the Office of the Inspector General – Health and Human Services.
On August of 2016, a Federal Grand Jury in the District of Puerto Rico returned a 16-count indictment charging Dr. Americo Oms-Rivera, his secretary Mayte González Muñoz, and Francisco Cabrera Alvarado, a former Social Security Administration (SSA) employee, for fraud in the application process for SSA disability insurance benefits in Puerto Rico. González-Muñoz and Cabrera Alvarado plead guilty on March of 2017. As part of this scheme, Oms-Rivera admitted having backdated medical records of patients applying for disability insurance benefits by creating fictitious medical appointments that never took place. This was done to create the appearance of a longer history of medical treatment and for the purpose of deceiving the SSA into approving disability insurance benefits.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits. Fraud schemes, such as the one perpetrated in this case, compromises the SSA’s limited funding and its ability to reach those in need of benefits.
“This defendant abused the trust placed in him as a professional for personal gain. We thank our law enforcement partners for their outstanding efforts and steadfast commitment to this case,” said U.S. Attorney Muldrow.
“This sentence reflects years of work by our investigators, and the U.S. Attorney’s Office, to stop this scheme to defraud taxpayers, and hold accountable those responsible,” said Inspector General Ennis. “We will continue to uphold the integrity of SSA’s disability programs by aggressively pursuing facilitators in the claims process who abuse the trust placed in them.”
Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez from the Social Security Administration was in charge of the prosecution of the case. This case was investigated by the Social Security Administration Office of the Inspector General, New York Field Division, under the supervision of Special Agent-in-Charge John Grasso, jointly with the Drug Enforcement Administration and the Puerto Rico Police Bureau. The Federal Bureau of Investigation and the Office of Inspector General Health and Human Services also assisted during the investigation.
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Dangerous Kentucky Felon Sentenced to Nearly 16 Years in Federal Prison for Violent Elizabethtown CarjackingRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge David J. Hale this week sentenced Joshua J. Logsdon, 36, of Sonora, Kentucky to 190 months’ imprisonment, followed by five years of supervised release, for an armed carjacking that occurred on February 26, 2019, in Elizabethtown, Kentucky, announced Acting United States Attorney Michael A. Bennett.
“This case serves as a reminder to all of the dangers law enforcement officers confront on a daily basis and as an example of the extraordinary work they do to bring violent criminals to justice,” said Michael A. Bennett, Acting United States Attorney. “The citizens of the Western District of Kentucky are fortunate to have the men and women of the Elizabethtown Police Department, Kentucky State Police, and the ATF on duty to serve and protect us.”
“During this armed carjacking - the defendant, Joshua Logsdon, pointed a loaded firearm at the owner of a vehicle, and fired the weapon as the victim attempted to escape. Further, responding police officers were placed in substantial danger when the defendant drove the stolen car directly at them. The federal sentence of nearly 16 years in prison without the possibility of parole is appropriate for this violent crime,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF is thankful to our law enforcement partners who risk their lives to protect our communities.”
“This investigation is a perfect example of the partnership between Federal and local officials in law enforcement and prosecutors. As we continue to work together against violent crime in our communities, it’s great to see examples of how our federal partners are willing to be vested in our efforts”, stated Elizabethtown Police Chief Jeremy Thompson.
Logsdon previously pleaded guilty to carjacking, use and discharge of a firearm during a crime of violence, and being a felon in possession of a firearm, on October 22, 2020, in United States District Court.
The case began when Elizabethtown police were assisting detectives with the Greater Hardin County Narcotics Task Force during a drug investigation. When Elizabethtown Police officers attempted to stop a car, Logsdon fled on foot to a nearby residence. Logsdon, who was armed with a Taurus .380 pistol, stole a 2013 Nissan Altima, in Hardin County, Kentucky, by force from the owner of the vehicle. During the carjacking, Logsdon fired a shot as the owner escaped.
As police officers arrived on the scene, Logsdon drove the stolen car directly at the officers, causing the officers to fire their service weapons at the vehicle. Logsdon continued driving through Elizabethtown at a high rate of speed, with police officers in pursuit. Kentucky State Police joined the pursuit on Interstate 65, until the vehicle crashed in a Sonora, Kentucky field.
Logsdon had been convicted of multiple felony offenses including drug possession, burglary, manufacturing a Controlled Substance (methamphetamine) and felon in possession of a firearm before committing the armed carjacking.
This case was prosecuted by Assistant United States Tom Dyke and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Elizabethtown Police Department and Kentucky State Police. Logsdon is also being prosecuted by the Hardin County Commonwealth’s Attorney for felony charges related to the offense.
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
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Cuyahoga Falls man sentenced to six and a half years for receipt and distribution of child pornographyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that Matthew Passalaqua, age 52, of Cuyahoga Falls, Ohio, was sentenced by U.S. District Court Judge Christopher A. Boyko to 80 months imprisonment after he pleaded guilty to receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct.
“Any person using the ‘anonymity’ of the internet to prey upon our children is a danger to the entire community,” said Acting United States Attorney Bridget M. Brennan. “Every instance in which we identify and bring a child predator to justice should serve as a message to any other potential offender - our work continues and we will ensure that those who commit crimes against children are held accountable.”
"Possessing and distributing the sexually explicit photos of minors is incomprehensible,” said FBI Special Agent in Charge Eric B. Smith. “Unfortunately, the peddlers and producers of these horrific images persist. Those who participate in this illegal trade should know the FBI and our law enforcement partners will never cease in our efforts to identify online child predators and ensure they are brought to justice for their unfathomable crimes against children."
According to court records, in September of 2019, Passalaqua began an online conversation with an undercover FBI agent on a mobile communication application. Passalaqua, using an online alias, expressed interest in talking about sexually explicit pictures of children and the undercover agent’s purported ten-year-old son and eight-year-old daughter.
Throughout the course of several days, Passalaqua sent the undercover agent multiple videos and images depicting real minors engaged in sexually explicit conduct and a picture of himself. FBI agents identified Passalaqua through a series of subpoenas that produced the IP address and home address associated with his online username. On November 15, 2019, FBI agents contacted Passalaqua at his place of business and executed a search warrant for his person. Passalaqua agreed to an interview with the agents and confirmed that he had communicated with the undercover officer and sent the picture of himself.
Passalaqua pleaded guilty to one count of receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct in October of 2020.
This matter was investigated by the Cleveland Division of the FBI and was prosecuted by Assistant United States Attorney Carol M. Skutnik.
Cumberland County Man Sentenced to Eight Years in Prison for Distributing Child PornographyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 96 months in prison for distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Bruce Jackson, 32, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging him with one count of distributing child pornography. Judge Hillman imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Jackson used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. Between November 2017 and June 2018, law enforcement downloaded 61 videos of child sexual abuse from Jackson’s computer. After executing a search warrant at Jackson’s home in August 2018, agents located more than 300 videos of child sexual abuse on one of Jackson’s thumb drives. Jackson admitted that he used the peer-to-peer file-sharing program to make images and videos of child sexual abuse available for others to download from his computer.
In addition to the prison term, Judge Hillman sentenced Jackson to five years of supervised release and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations – Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office’s Criminal Division in Trenton and Assistant U.S. Attorney Kristen Harberg of the U.S. Attorney’s Office’s Criminal Division in Camden.