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23 March 2021
Man indicted for smuggling meth in truck tiresRead the Press Release
LAREDO, Texas – A 23-year-old Houston resident has been indicted for conspiracy and importation of 50 grams or more of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
The federal grand jury in Laredo returned the two-count indictment against Mike Mendoza today. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.
The criminal complaint originally filed in the case alleges Mendoza and others conspired to import more than one kilogram of meth in the tires of a Ford F-150.
On Feb. 25, Mendoza allegedly arrived at the Lincoln Juarez Bridge in Laredo driving the truck. Law enforcement detected anomalies in the tires and soon found 24 bundles of meth, according to the charges.
They allegedly had a total combined weight of 60.04 kilograms with an estimated street value of $360,000.
If convicted, Mendoza faces up to life in prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam E. Harper is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Man Pleads Guilty to the Sexual Exploitation of Two ChildrenRead the Press Release
ALEXANDRIA, Va. – A Mexican national pleaded guilty today to two counts of production of child pornography.
According to court documents, in March 2018, Abel Ambrocio, 54, of Alexandria, Virginia, developed an online relationship with a woman in Honduras over a social media platform. From around October 2018 through at least February 2019, Ambrocio instructed the woman to record and send him over 100 images of herself sexually abusing her two children—an approximately three-year-old boy and an approximately ten-year-old girl. Ambrocio instructed the mother to engage in specific sex acts with her children and record herself doing so on multiple occasions, even when she told Ambrocio that one of the children was in pain and crying from the previous sex act. Later, in March 2019, Ambrocio distributed images of the woman sexually abusing her three-year-old son over a social media platform.
“The defendant’s conduct, which caused the sexual abuse of two young children, is both horrific and heartbreaking” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The production of child pornography inflicts devastating and lifelong harm to society’s most vulnerable victims. EDVA is committed to working with our law enforcement partners to bring child sexual predators to justice.”
Ambrocio pleaded guilty to two counts of production of child pornography. He is scheduled to be sentenced on August 4 and faces a mandatory minimum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorney Jonathan S. Keim are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police. Tips regarding child exploitation and human trafficking can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-135.
Man Pleads Guilty to Setting Fires to Raleigh Business During RiotsRead the Press Release
RALEIGH, N.C. – A Raleigh man pled guilty today to setting a fire inside a store in Raleigh after a demonstration over the death of George Floyd in Minneapolis, Minnesota.
Richard Rubalcava, of Raleigh was arrested on June 18, 2020, by special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and was charged by indictment with two counts of maliciously damaging or destroying, or attempting to damage or destroy, by means of fire or an explosive, any building or other real or personal property affecting interstate or foreign commerce.
According to the indictment, on May 30, 2020, at approximately 12:13a.m., a fire was discovered at the Dollar General Express located at 149 East Davie Street, Raleigh, after it had been looted by rioters. Video surveillance was obtained from the Dollar General Express. The video shows Rubalcava enter the business and place numerous items in a Dollar General Bag. Rubalcava leaves and re-enters the business numerous times. Each time Rubalcava enters the business, he would steal items from the store. Further video surveillance captured Rubalcava inside the Dollar General Express setting fire to miscellaneous items located on an aisle endcap. Rubalcava appears to exit the store after setting the fire.
Rubalcava faces a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 20 years in prison, and a maximum fine of $250,000.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert B. Jones, Jr. accepted the plea. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith is prosecuting 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-00341-FL
Lincoln Man Sentenced for Conspiracy to Distribute Methamphetamine and Use of a Firearm in Relation to that ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Mitchell Ryan Pond, 39, of Lincoln, Nebraska, was sentenced on March 23, 2021, in federal court in Lincoln for conspiracy to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual methamphetamine, and for using a firearm during and in relation to that conspiracy. Senior United States District Judge Richard G. Kopf sentenced Pond to 15 years of imprisonment for the conspiracy and a consecutive 5 years of imprisonment for the use of the firearm during and in relation to that conspiracy. There is no parole in the federal system. Pond was also sentenced to a 10-year term of supervised release.
As part of a narcotics investigation regarding Pond, law enforcement seized about 90 grams of actual methamphetamine attributable to him in April 2019. Thereafter, law enforcement obtained and executed a search warrant on Pond’s residence. Inside the residence, law enforcement found methamphetamine residue and a handgun. Law enforcement continued its investigation and found that between November 1, 2018 and July 10, 2019, Pond was responsible for the distribution of at least 1.5 kilograms of methamphetamine in the Lincoln area. Because Pond had previously been convicted under Nebraska state law of robbery for which he served more than 12-months’ imprisonment, he faced a 15-year mandatory-minimum sentence for the conspiracy conviction.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Cocaine Distribution Conspiracy Sentence to More Than Eight Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Douglas Brian Quander, age 39, of Bowie, Maryland to 100 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine, and for distribution of crack cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division.
According to his plea agreement, from October 2017 to June 2018, Quander conspired with Keshia Renee Dawkins and others to distribute cocaine and crack cocaine. During the course of the investigation, the Drug Enforcement Administration (DEA) used an undercover agent and a confidential source to conduct several controlled buys of cocaine and crack cocaine from Quander, or at Quander’s direction, from his co-conspirators. Over six drug transactions, Quander and his co-conspirators sold the undercover agent and confidential source a total of approximately 276.71 grams of cocaine or crack cocaine for $6,700.
On June 25, 2018, law enforcement executed a search warrant at Quander and Dawkins’ residence. Law enforcement seized two firearms, ammunition, 316.8 grams of cocaine, 5.5 grams of heroin, 6.2 grams of marijuana, two digital scales, and $19,122 in cash.
Keisha Renee Dawkins, age 41, of Bowie, previously pleaded guilty and was sentenced for her role in the conspiracy.
Acting United States Attorney Jonathan F. Lenzner praised the DEA for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Dwight Draughon, who prosecuted the case.
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Justice Department Settles Sexual Harassment Lawsuit Against Cumberland County, Tennessee for $1.1 MillionRead the Press Release
The Justice Department announced today that it has reached a settlement with Cumberland County, Tennessee, to resolve allegations that the county discriminated against ten female employees because of their sex in violation of Title VII of the Civil Rights Act of 1964.
Title VII is a federal statute that prohibits employment discrimination on the basis of race, sex, color, national origin and religion. Under the terms of the settlement, which still must be approved by the court in the form of a consent decree, Cumberland County will pay approximately $1.1 million in compensatory damages to ten women whom the United States alleged were sexually harassed by the former director of the county’s Solid Waste Department. Cumberland County will also revise its policies, procedures, and training to better prevent sexual harassment in the workplace.
“Today’s resolution, through settlement, will bring some measure of closure and vindication to the vulnerable women who were victimized by the egregious and abusive behavior in this case,” said Pamela S. Karlan, Principal Deputy Assistant Attorney General of the Civil Rights Division. “Sexual harassment must not be tolerated in the workplace, and we remain committed to eliminating it root and branch through our vigorous enforcement of Title VII.”
“No individual should have to endure the unwanted sexual advances of another, especially from someone who wields a position of authority over another as alleged here,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “We will seek all available remedies to address such unwanted and unlawful conduct and will continue to protect the civil rights of all of our citizens. They deserve nothing less.”
“State and local governments are among our largest employers. It is important that they understand that the federal anti-discrimination laws also apply to them,” said Delner Franklin-Thomas, District Director of the Memphis District of the Equal Employment Opportunity Commission (EEOC). “The egregious sexual harassment that these women were subjected to contravenes Title VII. The EEOC will continue to collaborate with the Justice Department to ensure the protection of our workers in governmental workplaces.”
The Justice Department’s complaint, filed March 8, in the U.S. District Court for the Middle District of Tennessee, alleged, among other things, that Cumberland County failed to take adequate precautions to prevent the former director of the county’s Solid Waste Department from sexually harassing the women. According to the complaint, the former director regularly subjected the women, who all worked for him, to unwanted sexual contact, including kissing and groping; unwelcome sexual advances, including propositioning the women for sexual favors; and offensive sexual remarks about their bodies and sex acts. The former director has been indicted on criminal charges and is awaiting trial in state court.
Four of the women had filed charges of discrimination with the EEOC. The EEOC’s Nashville Area Office, in its Memphis District, investigated the charges and found reasonable cause to believe Cumberland County discriminated against the four women and other similarly situated employees. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department’s Civil Rights Division. The Justice Department brought this lawsuit as part of a joint effort to enhance collaboration between the Department and the EEOC in the vigorous enforcement of Title VII.
This lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative, which is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach and development of effective remedial measures to address and prevent future sex discrimination and harassment.
This lawsuit was handled by Trial Attorneys Jen Swedish and Julia Quinn of the Civil Rights Division’s Employment Litigation Section and by Assistant U.S. Attorney Kara Sweet of the U.S. Attorney’s Office for the Middle District of Tennessee.
The full and fair enforcement of Title VII is a top priority of the Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Jury finds Poplar Bluff resident guilty on conspiracy and distribution of methamphetamineRead the Press Release
CAPE GIRARDEAU – A jury found Marcus Nelson, 39, of Poplar Bluff, Missouri guilty of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine following a two-day jury trial on March 23, 2021. He appeared before the United States District Judge Stephen N. Limbaugh, Jr.
The evidence during the trial proved Nelson conspired with others to bring 45 pounds of methamphetamine from Texas to Missouri between December 2018 and March of 2019. On March 19, 2019, SEMO Drug Task Force Officers received information a subject who lived in Ripley County near Doniphan, Missouri was expecting a large shipment of methamphetamine. Officers traveled to the residence and were speaking with the subject in the driveway when someone threw a duffle bag off a side deck of the residence. Officers recovered the duffle bag and discovered approximately 11 pounds of methamphetamine and eight ounces of heroin inside. Further investigation determined Marcus Ray Nelson brought the bag to the residence and threw it out upon learning police arrived. Nelson, Matthew Wade Stoutt and Gino Wells Sr. were indicted and charged with conspiring to distribute 500 grams or more of a mixture or substance containing methamphetamine. Nelson was also charged with possession of 500 grams or more of a mixture or substance containing methamphetamine with intent to distribute and possession of more than 100 grams of heroin with intent to distribute.
The Ripley County Sheriff’s Department, SEMO Drug Task Force and Missouri State Highway Patrol investigated the case. Assistant United States Attorneys Keith D. Sorrell and Julie A. Hunter handled the case.
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Jones County Felon Pleads Guilty to Possessing Multiple Firearms under Project EJECTRead the Press Release
Hattiesburg, Miss. – Jacob Daniel Williams, 26, of Laurel, pled guilty today before U.S. District Judge Taylor B. McNeel to being a felon in possession of multiple firearms, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On October 19, 2019, Williams was found in possession of four firearms while passing through a checkpoint being operated by the Jones County Sheriff’s Office. The firearms included three shotguns and a pistol. Williams had been convicted of drug possession felonies in Jones County in 2016.
Williams was originally indicted for this offense on June 23, 2020. He will be sentenced before Judge McNeel on June 23, 2021.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jones County Sheriff’s Office investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Inmate Sentenced for Having Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. - An inmate at the Federal Correctional Institution (FCI) McDowell was sentenced today for possessing a weapon at the correctional facility. Rashun Evans, 23, of New York, was sentenced to 18 months in prison to run consecutively to the sentence he currently is serving. He also was sentenced to three years of supervised release following his imprisonment.
Evans previously pleaded guilty and admitted that on February 5, 2020 he possessed a handcrafted weapon at FCI McDowell. A staff member at the prison found the shank underneath a telephone in a common area where Evans had hidden it. The weapon was a seven inch long piece of metal sharpened on one end with a cloth handle on the other end. Evans also admitted that the shank was designed and intended to be used as a weapon.
“I commend the Federal Bureau of Prisons,” said Acting United States Attorney Lisa G. Johnston, “for their vigilant efforts to prevent potential violence among inmates.”
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:20-cr-00203.
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Indictment Charges 4 Men with Stealing Millions in Vehicles, Phones and Other MerchandiseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced the unsealing of a 13-count superseding indictment that charges four men with federal offenses related to their alleged theft of millions of dollars in vehicles, phones, ATMs and other merchandise from numerous locations in Connecticut, New York and elsewhere.
The superseding indictment, which was returned by a federal grand jury in Hartford on February 16 and unsealed yesterday, charges JOSEPHER Y. CARTAGENA, 25, of the Bronx, N.Y.; ALEXANDER J. SANTIAGO, 26, of the Bronx; DOUGLAS NOBLE, 27, of the Bronx, and JUSTIN J. HERRERA, 21, formerly of Levittown, N.Y.
As alleged in court documents and statements made in court, Cartagena, Santiago, Noble and Herrera are members of a theft ring that burglarized car dealerships, mobile phone stores, and check cashing businesses in Connecticut and elsewhere, often burglarizing multiple locations in one night. From dealerships, they stole vehicle key fobs and vehicles; from mobile phone stores, they stole cell phones, electronics and other merchandise; from check cashing businesses, they stole ATMs. They then transported the stolen property back to New York, often escaping from police by engaging the police in high-speed chases, which the police must terminate for safety reasons.
Members of the theft ring are suspected to have committed more than 130 burglaries and stolen millions of dollars in property.
The indictment charges each of the defendants with one count of conspiracy to possess and transport stolen vehicles and property, an offense that carries a maximum term of imprisonment of five years. The defendants are also charged with various counts of transportation of a stolen vehicle, possession of a stolen vehicle, transportation of stolen property and possession of stolen property. These offenses carry a maximum term of 10 years on each count.
On December 23, 2020, when law enforcement first attempted to arrest Cartagena on a federal arrest warrant, Cartagena dropped a firearm and was able to escape by ramming multiple FBI vehicles with his vehicle, which was stolen. Investigators apprehended Cartagena late that night after an all-day search. A court-authorized search of Cartagena’s residence revealed hundreds of thousands of dollars of suspected stolen merchandise, more than 30 vehicle key fobs, various license plates, 9mm ammunition, and approximately $89,000 in cash.
On January 15, 2021, when investigators sought to conduct a court-authorized search of Santiago’s residence, Santiago’s pit bull attacked an FBI agent and badly wounded his arm. Santiago was arrested, and a search of the residence revealed approximately 20 new cell phones in boxes, approximately 40 vehicle key fobs, a police radio, a glass-punch device, two firearms and a substantial amount of ammunition.
Herrera was arrested in Florida, where he had recently moved, on March 10, 2021.
Noble surrendered to law enforcement yesterday.
Cartagena and Santiago are detained, and Herrera and Noble are released on bond.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and Connecticut State Police, with the assistance of numerous local police departments.
This case is being prosecuted by Assistant U.S. Attorneys Robert S. Ruff and Michael S. McGarry.
Indian Cancer Drug Manufacturer to Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) was sentenced to pay $50 million in fines and forfeiture after pleading guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection.
In a criminal information previously filed in federal court in the District of Nevada, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution with the Department of Justice, FKOL agreed to plead guilty to the misdemeanor offense. U.S. District Judge Jennifer A. Dorsey accepted the company’s guilty plea and sentenced FKOL to pay a criminal fine of $30 million, forfeit an additional $20 million, and implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By concealing and destroying drug manufacturing records, FKOL undermined FDA’s regulatory authority and placed vulnerable consumers at risk,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s sentence holds the company accountable for its past conduct and seeks to ensure it will fully comply with its obligations to the FDA going forward.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. Prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the plant and deleted spreadsheets that contained evidence of the plant’s noncompliant practices.
“Today’s sentencing reflects our office’s and the department’s commitment to holding accountable companies that disregard FDA regulations, at the risk of consumers’ health and safety,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our agency partners, we will continue to ensure that drug manufacturers fully comply with their obligations to maintain the integrity of records and data.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “Today’s sentencing proves that we will continue to aggressively investigate and bring to justice those who attempt to subvert requirements that protect the public health.”
The FDA Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter. The Justice Department’s Office of International Affairs provided investigative assistance.
This case was prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Civil Division’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada.
Indian Cancer Drug Manufacturer to Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
LAS VEGAS, Nev. – Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) was sentenced to pay $50 million in fines and forfeiture after pleading guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection.
In a criminal information previously filed in federal court in the District of Nevada, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution with the Department of Justice, FKOL agreed to plead guilty to the misdemeanor offense. U.S. District Judge Jennifer A. Dorsey accepted the company’s guilty plea and sentenced FKOL to pay a criminal fine of $30 million, forfeit an additional $20 million, and implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By concealing and destroying drug manufacturing records, FKOL undermined FDA’s regulatory authority and placed vulnerable consumers at risk,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s sentence holds the company accountable for its past conduct and seeks to ensure it will fully comply with its obligations to the FDA going forward.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. Prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the plant and deleted spreadsheets that contained evidence of the plant’s noncompliant practices.
“Today’s sentencing reflects our office’s and the department’s commitment to holding accountable companies that disregard FDA regulations, at the risk of consumers’ health and safety,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our agency partners, we will continue to ensure that drug manufacturers fully comply with their obligations to maintain the integrity of records and data.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “Today’s sentencing proves that we will continue to aggressively investigate and bring to justice those who attempt to subvert requirements that protect the public health.”
The FDA Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter. The Justice Department’s Office of International Affairs provided investigative assistance.
This case was prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Civil Division’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada.
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Houston Man Pleads Guilty to Federal Charges Stemming from Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Robert Lance Kuperman, 71, pleaded guilty to interstate transportation of money by fraud on March 22, 2021 before U.S. District Judge Michael J. Truncale.
“Insurance fraud ultimately harms individual Americans in the form of higher insurance premiums, making every business more expensive to operate, and passing these costs on to the consumer in the form of higher prices” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will diligently prosecute those who seek to commit insurance fraud in the Eastern District of Texas.”
According to information presented in court, Kuperman purchased a home on Lake Livingston in Polk County, Texas in 2013, and, in July of 2015, submitted an insurance claim related to water damage to the house that he said was caused by a defective water heater. As part of the claim, Kuperman submitted fraudulent documentation for out-of-pocket costs for the purported replacement of personal property destroyed by the water leak. Based on Kuperman’s fraudulent claims, American Strategic Insurance Company issued a series of checks, made payable to Kuperman including a check for more than $136,000.00. As part of the plea, Kuperman has agreed to repay $136,000.00.
A federal grand jury returned an indictment charging Kuperman with federal violations on July 1, 2020. Under federal statutes, Kuperman faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Polk County Sheriff’s Office, and the Texas State Fire Marshals Office and is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman.
Heroin and Methamphetamine Traffickers Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Alexander C. Van Hook announced that two men have been sentenced in the Western District of Louisiana for trafficking heroin and methamphetamine.
LAFAYETTE, La. - Blandon Richard a/k/a Blandon Todd Bessard, 45, of Kaplan, Louisiana, was sentenced today by United States District Judge Michael J. Juneau to 90 months (7 years, 6 months) in prison, followed by 3 years of supervised release, for conspiracy to possess with intent to distribute heroin. Richard was indicted by a federal grand jury in May 2019 on the charge and he pleaded guilty November 4, 2020. The charges in the indictment stemmed from an investigation into the drug trafficking activities of Richard and his co-defendants in the Lafayette area beginning in January 2019. Law enforcement agents obtained authority to intercept cell phone calls of Richard’s co-defendant. During the course of their investigation, agents overheard Richard on phone calls on multiple occasions between he and his co-defendant wherein Richard discussed obtaining heroin to redistribute to other people for profit.
In February 2019, law enforcement agents intercepted phone calls from Richard to his co-defendant making arrangements to obtain heroin from him. Agents conducting physical surveillance observed Richard go to the co-defendant’s house and come out a short time later. Surveillance of Richard’s vehicle continued and after committing a traffic violation, officers with the Lafayette Parish Sheriff’s Office stopped the vehicle. Officers observed in plain view in the ashtray of the vehicle a baggie which contained what appeared to be a controlled substance. At that time, officers retrieved the controlled substance and put Richard in handcuffs and advised him of his Miranda rights. An occupant in the vehicle with Richard was also handcuffed and advised of her Miranda rights. She admitted to law enforcement officers that when they were stopped by law enforcement, Richard told her to hide the baggie containing what was thought to be a controlled substance and she put in her pants. She retrieved the drugs and officers seized it. The substance in the bag weighing approximately 11.6 grams was later field-tested and was determined to be heroin.
The FBI and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
MONROE, La. – John Allen Whitaker, 49, of West Monroe, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 96 months (8 years) in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Whitaker was indicted by a federal grand jury on December 18, 2019 and he later pleaded guilty to the charge on November 4, 2020. The charge stems from a traffic stop conducted by a Ouachita Parish Sheriff’s Office deputy on August 15, 2019. Whitaker was stopped for a traffic violation and during the stop, deputies found that he possessed more than 50 grams of methamphetamine. Deputies arrested Whitaker and after a voluntary waiver of his Miranda rights, he admitted that the methamphetamine belonged to him.
The DEA and Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike Shannon prosecuted the case.
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Hattiesburg Man Pleads Guilty to Possession of Methamphetamine with the Intent to Distribute under Project EJECTRead the Press Release
Hattiesburg, Miss. – Raymarcus Hollimon, also known as “Smoke Loc,” 30, of Hattiesburg, pled guilty today before U.S. District Judge Taylor B. McNeel to possession of methamphetamine with the intent to distribute, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On January 16, 2019, Hollimon was encountered by members of the Drug Enforcement Administration and the Hattiesburg Metro Narcotics Task Force during a narcotics detail. Hollimon was found in possession of over 190 tablets containing methamphetamine and other drug distribution paraphernalia.
Hollimon was indicted for this offense on June 10, 2020. He will be sentenced before Judge McNeel on June 23, 2021.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Former children’s autism service provider pays over $2.7 million to resolve health care fraud allegationsRead the Press Release
HOUSTON – The former owner and sole shareholder of The Shape of Behavior (TSOB), a Texas-based provider of therapy services for children with autism, has agreed to pay to resolve allegations that the company submitted improper claims to the TRICARE program, announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Domonique Randall, 45, Spring, has now paid a total of $2,729,083.23.
TRICARE is an entitlement program for uniformed service members, retirees and their families around the world.
Authorities initiated an investigation after TRICARE’s managed care support contractor - Humana Military Program Integrity – uncovered alleged improper claims. These were for applied behavior analysis therapy to beneficiaries with autism spectrum disorder.
Today’s settlement resolves allegations that nine separate TSOB locations submitted claims to TRICARE that misrepresented the identity of the actual rendering providers, that medical records could not substantiate or when individual providers billed excessive hours on individual dates of service.
“The welfare of our service members and the extended Department of Defense (DoD) family is of vital importance to the DoD Inspector General,” said Acting Special Agent in Charge Gregory P. Shilling of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office. “This resolution is a testament to the collaboration between the DCIS and our partners in ensuring TRICARE beneficiaries receive the highest level of care from health care providers while also ensuring those providers are being stewards of valuable taxpayer resources.”
The Defense Health Agency - Office of Program Integrity, DCIS and Humana Military Program Integrity all assisted in the joint investigation resulting in the settlement announced today. Assistant U.S. Attorney Kenneth Shaitelman handled the matter on behalf of the United States.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Venezuelan Official Pleads Guilty in Connection with International Bribery and Money Laundering SchemeRead the Press Release
A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), pleaded guilty Monday in connection with his role in laundering millions of dollars in bribes and corruptly providing business advantages to multiple individuals who obtained contracts with Citgo and PDVSA.
According to court documents, between approximately 2013 and 2019, Jose Luis De Jongh Atencio (De Jongh), 48, a former procurement officer and manager in Citgo’s Special Projects Group, accepted more than $7 million in bribe payments from businessmen including Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in procuring contracts with Citgo, and providing them with other business advantages.
De Jongh admitted to directing bribe payments from Gonzalez, Farias, and others into bank accounts in the names of shell companies that he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias, and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert. Gonzalez and Farias also entered guilty pleas in connection with the case.
“Jose Luis De Jongh Atencio accepted millions of dollars in bribe payments — placing law-abiding individuals and companies at a competitive disadvantage — and then laundered those bribe payments into the United States to fund his lavish lifestyle,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This guilty plea demonstrates the commitment of the department and our law enforcement partners to hold accountable individuals who engage in corruption and use our financial system to promote and launder the proceeds of their crimes.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair-trade practices,” said Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “This plea is a step in the right direction, but we will continue to level the playing field for companies and consumers by aggressively investigating individuals and corporations who violate the FCPA and misuse our financial system.”
De Jongh pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced by U.S. District Judge Gray H. Miller on Aug. 19, and faces a maximum penalty of 20 years in prison. Judge Miller will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. In addition, as part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties that he purchased with his corrupt proceeds.
To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.
Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Sioux City Council Member Pleads Guilty to Environmental CrimesRead the Press Release
A man who unlawfully stored and transported hazardous waste pled guilty March 19, 2021, in federal court in Sioux City.
Aaron Rochester, 47, from Sioux City, Iowa, was convicted of one count of unlawful storage of hazardous waste and one count of transportation of hazardous waste.
At the plea hearing, Rochester admitted that beginning on or about June 2015 through about January 2017, as owner and operator of Recycletronics, he knowingly and unlawfully stored and transported hazardous waste, namely CRTs (cathode ray tubes) and leaded glass from televisions and computers at various facilities in and around Sioux City, Iowa.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Rochester remains free on bond previously set pending sentencing. Rochester faces a possible maximum sentence of five years’ imprisonment, a maximum fine of up to $50,000 for each day of the violation, and three years of supervised release following any imprisonment.
“If improperly managed, hazardous waste can pose serious risks to human health and the environment,” said Lance Ehrig, Special Agent in Charge of EPA’s criminal enforcement program in Iowa. “The defendant’s illegal transportation and storage practices significantly threatened and burdened nearby communities and the environment. Today’s plea demonstrates that those who knowingly violate our nation’s environmental laws will be held responsible for their crimes.”
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the United States Environmental Protection Agency (EPA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4073.
Follow us on Twitter @USAO_NDIA.
Former Postal Employee Sentenced for Worker’s Compensation FraudRead the Press Release
BINGHAMTON, NEW YORK – Christine O’Neill, age 61, of Johnson City, New York, was sentenced today by Senior United States District Judge Thomas J. McAvoy to serve three (3) years on probation for defrauding the U.S. Postal Service and U.S. Department of Labor of $46,287 by making false statements and representations to obtain federal workers compensation benefits, announced Acting United States Attorney Antoinette T. Bacon and Matthew Modafferi, Special Agent in Charge of the United States Postal Service-Office of Inspector General, Northeast Area Office.
O’Neill falsely represented that she was not employed, self-employed, or involved in any business enterprise during periods of time in 2015 and 2016 when she was collecting federal workers compensation benefits. She was receiving benefits based upon a claimed injury to her back that she said made her unable to perform any work functions for the Postal Service. In fact, O’Neill ran her own company, Chris’ Cookies and Cakes, preparing and delivering cakes and cookies to customers during the times she collected benefits. Agents videotaped O’Neill selling baked goods at a local craft fair during the course of their investigation and bought baked goods from O’Neill who provided the undercover agent with a business card.
This case was investigated by the U.S. Postal Service Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Former Emergency Management Official at Pitt Charged with Selling Stolen PPE on eBayRead the Press Release
PITTSBURGH, PA – A former University of Pittsburgh employee has been indicted by a federal grand jury on a charge of Interstate Transportation of Stolen Property, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Christopher D. Casamento, age 42, of Pittsburgh, PA 15237, as the sole defendant.
According to the Indictment, Casamento was employed as Director of Emergency Management for the University of Pittsburgh and had access to quantities of personal protective equipment (PPE) including N95 respirator masks and surgical face masks, which were designated for the use of school employees and students. The indictment alleges that from February 28, 2020 to March 22, 2020, Casamento stole from the University 13,615 pieces of PPE, namely, Aura N95 respirator masks, surgical face masks and particulate respirator masks, which he sold on his eBay vendor page "steel-city-motor-toys" and shipped to buyers in states outside of Pennsylvania. According to the Indictment, Casamento earned approximately $18,783.50 from the eBay sales of the stolen PPE.
"At the start of the pandemic, when supplies of PPE were low and nationwide demand was intense, Mr. Casamento used his position of trust and access to critical PPE to enrich himself at the expense of Pitt students and faculty," said Acting U.S. Attorney Kaufman. "We will continue to investigate and prosecute individuals who illegally profit from COVID related fraud."
"Mr. Casamento had an obligation to make sure there was enough PPE to keep students and staff at the University of Pittsburgh safe," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Instead, he chose to line his pockets. The allegations set forth today are upsetting. With so much widespread suffering in our communities due to COVID, having this vital equipment taken away from people is unfortunate. I would like to thank the University of Pittsburgh for their full cooperation in this investigation and hope this continues to send a message that COVID fraud will be fully investigated."
The public can report suspected COVID-19 fraud by calling or emailing the U.S. Attorney’s Office at:
• Western Pennsylvania COVID-19 Fraud Task Force’s Toll Free Hotline:
1-888-C19-WDPA or 1-888-219-9372
• Western Pennsylvania COVID-19 Fraud Task Force’s email address:
The law provides for a maximum total sentence of not more than 10 years in prison, a fine not to exceed $250,000.00, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Ecuadorian Government Official Sentenced to Prison for Role in Bribery and Money Laundering SchemeRead the Press Release
An Ecuadorian and Italian national was sentenced today to 51 months in prison for his role in a scheme to launder bribes paid to him in exchange for helping three U.K. reinsurance companies obtain and retain reinsurance business from Ecuador’s public surety company.
Juan Ribas Domenech, 52, pleaded guilty to one count of conspiracy to commit money laundering on Sept. 16, 2020. According to court documents, between 2013 and 2017, Ribas was the chairman of Seguros Sucre, Ecuador’s state-owned and -controlled surety company and an advisor to the then-president of Ecuador. In those capacities, Ribas had authority over the awarding of Seguros Sucre business. During that time, Ribas accepted approximately $5,036,465 in bribes from his co-conspirators in exchange for using his official position to allow three U.K.-based reinsurance brokers to obtain and retain contracts with Seguros Sucre. These bribe payments were paid through various intermediaries, including two reinsurance introducer companies. A portion of the bribes were laundered through the United States.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Kelly R. Jackson of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. Field Office; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
IRS-CI’s and HSI’s Washington, D.C. offices, jointly under the auspices of the Global Illicit Financial Team, and the FBI’s Miami International Corruption Squad investigated the case.
Trial Attorneys Katherine Raut, La’Nese Clarke, and Alexander Kramer of the Justice Department’s Fraud Section prosecuted the case.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Chairman of the Mashpee Wampanoag Tribe Charged in Superseding IndictmentRead the Press Release
BOSTON – A federal grand jury in Boston returned a superseding indictment yesterday charging the former Chairman of the Mashpee Wampanoag Tribe with filing false tax returns. The former Chairman and the owner of an architecture-and-design firm were previously charged in connection with a bribery scheme involving the Tribe’s plans to build a resort and casino in Taunton.
Cedric Cromwell, 55, of Attleboro, the former Chairman of the Mashpee Wampanoag Tribe, was charged in a superseding indictment with four counts of filing a false tax return.
In November 2020, Cromwell and David DeQuattro, 54, of Warwick, R.I., were each indicted on two counts of accepting or paying bribes as an agent (or to an agent) of an Indian tribal government and one count of conspiring to commit bribery. Cromwell was also indicted on four counts of extortion under color of official right and one count of conspiring to commit extortion.
According to the superseding indictment, when Cromwell filed his personal income tax returns for tax years 2014 through 2017, he failed to report bribes that he allegedly received from DeQuattro’s company, through DeQuattro, in connection with that company’s contract to serve as the Tribe’s “owner’s representative” for the casino project. Cromwell also failed to report payments for consulting services that he performed for a company that developed and supplied forest carbon offsets, including by partnering with forest-owning Native American tribes. Cromwell was allegedly paid the consulting income through an intermediary identified as “P-Co.,” which was formed by a business associate of Cromwell. The business associate was the only authorized signatory on a bank account identified as the “P-Co. Shell Company Account.” Cromwell also allegedly failed to report income to his company One Nation Development, paid through the P.-Co. Shell Company Account and the bank account of a Florida limited partnership, which originated with an investment holding company in Las Vegas. The only authorized signatory on the investment holding company’s bank account was the CEO of a Las Vegas-based architecture firm hired to be the architect for the Tribe’s casino project. The superseding indictment alleges that Cromwell failed to report $39,000 in 2014; $57,374 in 2015; $26,884 in 2016; and $54,134 in 2017, for a total of $177,393.
The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. U.S. Attorney Christine Wichers of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Guys shooter sent to federal prisonRead the Press Release
HOUSTON – A 25-year-old Houston resident has been handed a lengthy federal prison sentence after robbing a Five Guys restaurant and shooting an off-duty law enforcement officer, announced Acting U.S. Attorney Jennifer B. Lowery.
Keith Thomas pleaded guilty Sept. 24, 2020, to interference with commerce by robbery and discharging a firearm during or in relation to that robbery.
Today, Chief U.S. District Lee H. Rosenthal handed Thomas an 87-month sentence for the robbery. He also received an additional 120 months for the firearms charge which must be served consecutively to the other prison term imposed. The sentences will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed the victim’s injuries, continuing impairment and hospital stay. Judge Rosenthal noted that what Thomas did that day was evil and caused extreme trauma to many.
“The men and women of our local law enforcement continue to put themselves in harm’s way each and every day,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF will continue to fight firearms related violent crime alongside our partner agencies and keep our community safe for our neighbors.”
On Oct. 16, 2019, Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm. There, Thomas pointed the weapon at customers and employees and demanded money. He was able to steal cash from the cash register and from patrons.
Prior to exiting the restaurant, Thomas discharged his firearm, striking a Harris County constable who was approaching the door. The officer was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the scene.
Law enforcement found a cellphone near the restaurant which was eventually traced to Thomas.
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 Houston Police Department and ATF conducted the investigation. Assistant U.S. Attorney Jill Stotts prosecuted the case.
Federal Inmate Sentenced for Distributing Drugs in PrisonRead the Press Release
TUCSON, Ariz. – Last week, Jermal Daniels, 50, was sentenced by U.S. District Judge Jennifer G. Zipps to 33 months in prison. Daniels previously pleaded guilty to possession with intent to distribute methamphetamine.
On May 15, 2018, Daniels, an inmate at the Federal Correctional Institution in Tucson, was found with approximately 10 grams of methamphetamine concealed in his sock. Daniels admitted he intended to be paid for delivering the methamphetamine to other inmates. At the time, Daniels was serving a sentence for Conspiracy to Possess with Intent to Distribute Heroin out of the Western District of North Carolina.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR18-01738-TUC-JGZ
RELEASE NUMBER: 2021- 016_Daniels# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.East L.A. Gang Member Who Led Firebombing of African-American Residences Sentenced to 16 Years in Federal PrisonRead the Press Release
A senior member of the Big Hazard street gang was sentenced today to 192 months in federal prison for orchestrating and executing the nighttime firebombing of African-American families at the Ramona Gardens Housing Development in Boyle Heights in 2014 in order to force the residents out of their homes.
Carlos Hernandez, 36, aka “Rider” or “Creeper,” was sentenced by The Honorable U.S. District Judge Christina A. Snyder. During the hearing, Judge Snyder explained that her sentence was intended to “send a message to the community that hate crimes will not be tolerated” and that this was “not a time for any court to tolerate hate crimes.”
Hernandez pleaded guilty in April 2019 to five felony counts: conspiracy to violate civil rights, violent crime in aid of racketeering, criminal interference with fair housing rights, use of fire in the commission of a federal felony, and carrying a firearm in the commission of a crime of violence.
“The defendant planned, coordinated, and led these racially-motivated attacks that targeted vulnerable families, including grandparents and infants, while they were sleeping peacefully in their own homes,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prioritize the prosecution of hate-fueled violence.”
“The defendants in this case perpetrated hate crimes that targeted innocent victims in their homes simply because of their skin color,” said Acting U.S. Attorney Tracy Wilkison of the Central District of California. “These despicable acts are simply unacceptable in our society. We are committed to protecting everyone’s civil rights, and anyone who participates in this type of conduct will find that the federal government will marshal all of its resources to ensure they are brought to justice.”
"There is absolutely no place for race-based violence in a civilized society," said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. "Investigators worked diligently to identify Mr. Hernandez as the one who masterminded this crime and arrested Hernandez and others before they could target another innocent victim. The FBI will continue to protect the civil rights of our community by holding responsible anyone so filled with hate that they would attempt to commit murder based on the color of a victim's skin.”
On the evening of May 11, 2014, which was Mother’s Day, Hernandez organized and led seven co-defendants – all members of the Big Hazard street gang – in a plan to firebomb several apartments in the Ramona Gardens housing complex. Hernandez and his co-defendants targeted each of the residences because African-Americans lived there. Hernandez divided the defendants into groups to carry out the fire-bombings, assigned each defendant a specific role within those groups, and provided various defendants with a lighter or hammer to be used in the attacks, as well as masks to conceal their identities. The defendants stashed their cell phones to prevent law enforcement tracking and traveled a predetermined route designed to evade surveillance cameras. Heightening the dangerousness of the attacks, Hernandez armed himself with a semiautomatic handgun.
Once the gang members located the targeted apartments, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage. Hernandez and his co-defendants then threw lit Molotov cocktails into the residences. Three of the four targeted apartments were occupied by African American families who were sleeping at the time of the unprovoked attack. A mother who was sleeping with her infant baby on her chest at the time of the attack barely evaded being hit by a firebomb when she rolled off the couch with her baby after hearing a window shatter. A federal task force with numerous federal agencies and local partners was established to investigate the attack, which remained unsolved for two years until prosecutors unsealed the charges in this matter.
Today’s sentencing hearing follows the sentencings of several other defendants in this case: Jose Saucedo, aka “Lil Mo,” 156 months; Josue Garibay, aka “Malo,” 144 months; Jonathan Portillo, aka “Pelon,” 63 months; Francisco Farias, aka “Bones,” 42 months; and Edwin Felix, aka “Boogie,” 92 months.
All of the defendants who participated in the firebombing were charged in 2016 and have pleaded guilty to federal hate crime and related offenses. Those defendants also all admitted that they participated in the firebombing attacks because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex.
The investigation into the firebombing was conducted by agents and detectives with the FBI; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section and Justice Department Special Litigation Counsel Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
For more information and resources on the Department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation please visit: https://civilrights.justice.gov/ to file a report.
East L.A. Gang Member Who Led Firebomb Attacks on African American Residences Sentenced to 16 Years in Federal PrisonRead the Press Release
LOS ANGELES – A senior member of the Big Hazard street gang was sentenced this morning to 192 months in federal prison for orchestrating and executing the nighttime firebombing of African American families at the Ramona Gardens Housing Development in Boyle Heights in 2014 in order to force the residents out of their homes.
Carlos Hernandez, 36, aka “Rider” and “Creeper,” was sentenced by United States District Judge Christina A. Snyder. During the hearing, Judge Snyder explained that her sentence was intended to “send a message to the community that hate crimes will not be tolerated” and that this was “not a time for any court to tolerate hate crimes.”
Hernandez pleaded guilty in April 2019 to five felony counts: conspiracy to violate civil rights, violent crime in aid of racketeering, criminal interference with fair housing rights, use of fire in the commission of a federal felony, and carrying a firearm in the commission of a crime of violence.
“The defendants in this case perpetrated hate crimes that targeted innocent victims in their homes simply because of their skin color,” said Acting United States Attorney Tracy L. Wilkison. “These despicable acts are simply unacceptable in our society. We are committed to protecting everyone’s civil rights, and anyone who participates in this type of conduct will find that the federal government will marshal all of its resources to ensure they are brought to justice.”
“There is absolutely no place for race-based violence in a civilized society,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Investigators worked diligently to identify Mr. Hernandez as the one who masterminded this crime and arrested Hernandez and others before they could target any other innocent victims. The FBI will continue to protect the civil rights of our community by holding responsible anyone so filled with hate that they would attempt to commit such heinous violence based on the color of a victim’s skin.”
“The defendant planned, coordinated, and led these racially-motivated attacks that targeted vulnerable families, including grandparents and infants, while they were sleeping peacefully in their own homes,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prioritize the prosecution of hate-fueled violence.”
On the evening of May 11, 2014, which was Mother’s Day, Hernandez organized and led seven co-defendants – all members of the Big Hazard street gang – in a plan to firebomb several apartments in the Ramona Gardens housing complex. Hernandez and his co-defendants targeted each of the residences because African Americans lived there. Hernandez divided the defendants into groups to carry out the firebombings, assigned each defendant a specific role within those groups, and provided various defendants with a lighter or hammer to be used in the attacks, as well as masks to conceal their identities. The defendants stashed their cell phones to prevent law enforcement tracking and traveled a predetermined route designed to evade surveillance cameras. Heightening the dangerousness of the attacks, Hernandez armed himself with a semiautomatic handgun.
Once the gang members located the targeted apartments, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage. Hernandez and his co-defendants then threw lit Molotov cocktails into the residences. Three of the four targeted apartments were occupied by African American families who were sleeping at the time of the unprovoked attack. A mother who was sleeping with her infant baby on her chest at the time of the attack barely evaded being hit by a firebomb when she rolled off the couch with her baby after hearing a window shatter.
A federal task force with numerous federal agencies and local partners was established to investigate the attack, which remained unsolved for two years until prosecutors unsealed the charges in this matter.
All of the defendants who participated in the firebombing were charged in 2016 and have pleaded guilty to federal hate crime and related offenses. Those defendants all admitted that they participated in the firebombing attacks because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex.
Today’s sentencing hearing follows the sentencings of several other defendants in this case: Jose Saucedo, aka “Lil Mo,” who was ordered to serve 156 months; Josue Garibay, aka “Malo,” who received a 12-year sentence; Jonathan Portillo, aka “Pelon,” sentenced to 63 months; Francisco Farias, aka “Bones,” who was ordered to serve 42 months; and Edwin Felix, aka “Boogie,” who received a 92-month sentence.
The investigation into the firebombing was conducted by agents and detectives with the FBI; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Justice Department Special Litigation Counsel Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Donora Man Charged with Possession of CocaineRead the Press Release
PITTSBURGH, PA – A resident of Donora, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named, Anthony Law, age 36, as the sole defendant.
According to the Indictment, on or about September 21, 2020, Law possessed with intent to distribute 500 grams or more of cocaine.
The law provides for a maximum total sentence of not more than 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delray Beach Man Indicted for COVID-19 Relief Fraud, Allegedly by Using Identities of Elderly Victims Residing at Senior Living FacilitiesRead the Press Release
GAINESVILLE, FLORIDA – A federal grand jury returned a four-count indictment this afternoon against Jeremie Saintvil of Delray Beach, Florida, for fraudulently obtaining or attempting to obtain over $1,500,000 in Paycheck Protection Program (PPP) loans. Saintvil, 46, is charged with bank fraud, making false statements to a federally insured institution, aggravated identity theft, and making false statements. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the indictment.
In addition to allegedly submitting a fraudulent PPP loan application for a fictious business in his own name, Saintvil also allegedly stole the identities of eight elderly individuals – seven of whom were residents of senior living facilities and one who was related to him – as a part of his complex scheme to obtain more than $1.5 million in forgivable loans. In doing so, Saintvil is alleged to have submitted fraudulent loan applications to multiple financial institutions, including one headquartered in Alachua County, Florida.
The indictment alleges that Saintvil submitted a total of nine fraudulent PPP loan applications to nine different federally insured credit unions and banks on behalf of businesses that did not exist. Saintvil allegedly falsified his identity (in all but one of these applications), misrepresented the number of employees and payroll expenses of the non-existent companies, and made numerous other inaccurate statements. According to the indictment, Saintvil also submitted falsified tax documents and bank account information in support of these applications.
The indictment further alleges that Saintvil opened bank accounts and lines of credit at financial institutions and credit card companies in the names of his elderly victims. Saintvil then allegedly obtained physical checks, debit cards, and credit cards in the names of his elderly victims, and used the services of an electronic payments processor to transfer funds from the fraudulently obtained lines of credit into the bank accounts that he fraudulently opened.
The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional funding, and in December 2020, another $284 billion. The Small Business Administration (SBA) guarantees PPP loans which are funded by participating financial institutions.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP then allows the interest and principal to be forgiven if businesses spent the loan proceeds on qualifying expenses within a set time period, and used at least a certain percentage of the loan proceeds for payroll expenses.
This indictment resulted from a joint investigation by Internal Revenue Service - Criminal Investigations, the Federal Bureau of Investigation, and the Small Business Administration -Office of Inspector General. Assistant United States Attorney Justin M. Keen is prosecuting the case.
If convicted, Saintvil faces a maximum penalty of 30 years in prison for the charges of bank fraud and making false statements to a federally insured institution, and a maximum penalty of 5 years in prison for the making a false statement charge. Saintvil also faces an additional 2-year mandatory minimum prison sentence, consecutive to any other sentence imposed, for the aggravated identity theft count if convicted.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Saintvil Saintvil IndictmentConvicted Felon Pleads Guilty to Gun PossessionRead the Press Release
Memphis, TN – Convicted felon Anthony Holmes, 29, has pleaded guilty to illegally possessing a weapon. Joseph C. Murphy, Jr., Acting U.S. Attorney, announced the guilty plea today.
According to information presented in court, on March 3, 2019, while conducting a late-night routine campus patrol, University of Memphis Police officers observed a vehicle running with a male in the passenger seat. After some time, the officers became concerned with the condition of the person in the vehicle, who appeared immobile. As one officer approached the vehicle, he could see a handgun in the waistband of the male in the passenger’s seat. The male did not have any identification and gave only his name as "David Johnson", which the officers could not verify. He was initially charged with Carrying a Weapon on School Property and was booked and processed at 201 Poplar.
Further investigation revealed him as being Anthony Holmes, and that he had an outstanding warrant for attempted murder, resulting from an alleged shooting on I-240 on June 21, 2018. His name and picture had appeared in the news regarding this incident. The charges regarding the shooting on I-240 are still pending in state court.
In 2011 Holmes was convicted of voluntary manslaughter in Shelby County Criminal Court. As a result of his felony conviction, Holmes is prohibited by federal law from possessing firearms or ammunition.
Sentencing is scheduled for June 22, 2021, before U.S. District Judge Mark Norris where he faces up to ten years in federal prison to be followed by three years supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force. Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Special Assistant U.S. Attorney Samuel D. Winnig is prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office to prosecute violent crimes and firearms offenses in federal court.
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Convicted Felon Pleads Guilty to Federal Firearm OffenseRead the Press Release
Ocala, FL – Darrell Pete (32, Ocala) has pleaded guilty to conspiracy to possess a firearm as a convicted felon. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
Pete had been indicted on June 3, 2020.
According to court documents, on April 18, 2020, an officer from the Ocala Police Department stopped a vehicle in which Pete was a passenger. After a police canine alerted to the odor of drugs, a search revealed a bag with a .22 caliber firearm and ammunition underneath Pete’s seat. Packaged with the firearm was court documentation in Pete’s name. Pete admitted that the firearm belonged to him, and later acknowledged that he had worked with another person to obtain the firearm and had placed it in the car that day.
Pete has multiple prior state felony convictions, including several cocaine distribution offenses. As a convicted felon, he is prohibited from possessing a firearm and ammunition under federal law.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Tyrie Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Cleveland man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Sylvester Deangelo Walker, of Cleveland, Ohio, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Walker, also known as “DBOS,” 25, pleaded guilty to one count of “Distribution of Methamphetamine.” Walker admitted to selling methamphetamine in November 2020 in Ohio County.
Walker faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Brownsville Felon Charged with Illegal Possession of a Gun and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Brownsville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Deago Lee Eddings, age 25, as the sole defendant.
According to the Indictment, on September 16, 2020, Eddings, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Ann Stockey is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Brentwood Borough Police Department conducted the investigation leading to the Indictment in this case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brooklyn Man Charged in Long-Running International Insider Trading SchemeRead the Press Release
A 10-count indictment was filed today in federal court in Brooklyn charging Jason Peltz with securities fraud, money laundering and tax evasion, among other offenses, including related conspiracy offenses. The charged crimes arise out of a long-running insider trading scheme, in which Peltz executed securities transactions in the brokerage accounts of co-conspirators based on material nonpublic information (“MNPI”) from a variety of sources. Peltz was previously arrested on a complaint in December 2020 and will be arraigned on the indictment at a later date.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, IRS Criminal Investigation, New York (IRS-CI), announced the indictment.
“As alleged, Peltz used material nonpublic information about publicly traded companies to line his own pockets and then concealed his illegally earned income to avoid paying taxes,” stated Acting U.S. Attorney Lesko. “This Office will spare no effort to identify and prosecute defendants who seek to profit from insider trading schemes that harm the investing public and undermine the integrity of our financial markets.” Mr. Lesko thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.
“As alleged, today’s indictment details a very deliberate attempt by Peltz to illegally profit from receiving and providing advanced knowledge of nonpublic information about publicly traded companies. When one has access to material, nonpublic information, they’re afforded significant knowledge that could give them a competitive edge in stock and options trading. Exploiting this knowledge is illegal, and the FBI will continue to investigate and prosecute those who cheat the system in this way,” stated FBI Assistant Director-in-Charge Sweeney.”
“While most Americans dream of winning the lottery or finding a stock before it takes off, Peltz rigged the system for his personal gain, creating fortune for himself at the expense of others,” stated IRS-CI Special Agent-in-Charge Larsen. “Peltz stands accused of a multitude of crimes that go far beyond his initial investments, extending to tax crimes and lying. Thanks to our work with the Joint Chiefs of Global Tax Enforcement (J5), we were able to unravel the web of lies that Peltz wove to cover his greedy crimes and send a message to others involved in similar schemes.”
According to the indictment, between November 2015 and October 2020, Peltz and his co-conspirators engaged in a fraudulent scheme by which they obtained MNPI about publicly traded companies from a variety of sources, including a corporate insider and a reporter at a financial news organization (the “Reporter”). Peltz and his co-conspirators allegedly used the MNPI to profitably trade in securities in advance of public disclosure through news articles. For example, the brokerage accounts of members of the conspiracy made purchases of certain companies’ securities shortly before significant corporate events, such as announcements of potential mergers or acquisitions that sometimes resulted in near-immediate increases in the companies’ share prices. The co-conspirators’ brokerage accounts sold the shares at a later date in close proximity to the relevant corporate events or announcements of the events. To prevent scrutiny of their communications, Peltz and his co-conspirators often communicated via the use of smartphone applications with end-to-end encryption. Peltz also used prepaid cellular telephones, known as “burner” phones, to prevent scrutiny of his communications.
In February 2016, Peltz obtained MNPI from an insider at Ferro Corporation (“Ferro”) about a potential takeover offer (the “Ferro Takeover Bid”). Peltz used that MNPI to (1) profitably trade in Ferro in the brokerage accounts of two co-conspirators, (2) tip certain other co-conspirators, each of whom also profitably traded on MNPI about the Ferro Takeover Bid, and (3) tip the Reporter, who wrote an article making public the news of the Ferro Takeover Bid, which resulted in an increase in the price of Ferro’s stock. Peltz and the Ferro insider each received significant financial benefits from other co-conspirators shortly after Peltz traded in those co-conspirators’ brokerage accounts.
Following his profitable insider trading in Ferro, Peltz continued to cultivate his relationship with the Reporter and obtained information about the Reporter’s upcoming news articles. On multiple occasions thereafter, Peltz traded in the brokerage accounts of co-conspirators shortly before the publication of articles by the Reporter about publicly traded companies. The articles were often followed by increases in the prices of the companies’ stock.
During the course of the conspiracy, Peltz received large payments from co-conspirators, as well as other benefits, as payment for his trading activity. Peltz received these payments in corporate and nominee bank and credit card accounts, in order to conceal his income from the IRS. Despite receiving such payments, in 2017 Peltz falsely swore under penalty of perjury to the IRS that he had been unemployed since December 2015 and had no income.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of securities fraud, Peltz faces up to 25 years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Kaitlin T. Farrell and Sarah M. Evans are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Asset Forfeiture Section.
The Defendant:
JASON PELTZ
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-154 (NGG)
Bronx Man Pleads Guilty in Connection with 2009 Robbery and Murder of Leshaun GordonRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that JAMAL BRISSETT, a/k/a “Trigger,” a/k/a “Trigg,” pled guilty today before U.S. Magistrate Judge Kevin N. Fox to one count of Hobbs Act robbery. As part of his plea, BRISSETT admitted that on June 30, 2009, he shot and killed Leshaun Gordon, the victim of the robbery. BRISSETT is scheduled to be sentenced by U.S. District Judge Kimba M. Wood on June 22, 2021.
U.S. Attorney Audrey Strauss said: “In 2009, Jamal Brissett robbed and murdered Leshaun Gordon in cold blood. Now Brissett awaits sentencing for his callous conduct that robbed another man of his life.”
According to statements in the Information, and other filings and statements at public court proceedings in the case, on June 30, 2009, BRISSETT robbed Gordon near the intersection of Mickle Avenue and Chester Street in the Bronx, New York. BRISSETT planned to, and did, shoot and kill Gordon during the robbery.
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The sole count of the Information charges BRISSETT with one count of Hobbs Act robbery, in violation of 18 U.S.C. § 1951, carrying a maximum penalty of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the New York City Police Department and Homeland Security Investigations.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hagan Scotten and Danielle R. Sassoon are in charge of the prosecution.
Bronx Gang Member Charged with 2015 MurderRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Ray Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced today the unsealing of a Superseding Indictment charging RONALD GOLAND, a/k/a “Bigg Base,” a/k/a “Base,” with murder in aid of racketeering and a firearms offense in connection with the murder of Odane Bentley on July 17, 2015, in the Bronx; attempted murder and assault with a dangerous weapon in aid of racketeering and a firearms offense in connection with the shooting of a rival gang member on November 9, 2018, in the Bronx; and, conspiracy to commit murder in aid of racketeering. Isaiah Smith, who is also charged in the Superseding Indictment, was previously arrested on charges related to the November 9, 2018, shooting and is already in federal custody.
GOLAND was arrested this morning and will be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Ronald Goland engaged in senseless gang violence, resulting in the tragic murder of Odane Bentley. We commend the extraordinary efforts of our law enforcement partners, who have worked tirelessly to investigate Odane Bentley’s death.”
NYPD Commissioner Dermot Shea said: “This case reflects the NYPD’s continued effort to eradicate violent street crime by targeting those most responsible. I want to commend our law enforcement partners and the U.S. Attorney’s Office for the Southern District for helping to bring these individuals to justice.”
DEA Special Agent in Charge Ray Donovan said: “This arrest sends a message to New Yorkers that law enforcement is committed to bringing to justice those fueling gang violence in our city. I commend the NYPD and the U.S. Attorney’s Office Southern District of New York for their diligent efforts throughout this investigation and thank them for their partnership.”
According to the allegations in the Superseding Indictment unsealed today in Manhattan federal court[1]:
GOLAND is a member or associate of the MacBallas, a subset of the larger Bloods street gang. In order to preserve and protect the MacBallas’ power, enrich its members, keep victims in fear, and promote and enhance its reputation, members and associates of the MacBallas committed, conspired, attempted, and threatened to commit acts of violence, including acts involving murder and assault, against others, including, in particular, rival gang members; conspired to distribute and possess with intent to distribute narcotics; and, possessed, stored, and used firearms.
On July 17, 2015, GOLAND shot at a rival gang member (the “Rival Gang Member”) and, in doing so, fired a bullet through the front door of 4431 DeReimer Avenue in the Bronx, New York, killing Odane Bentley.
On November 9, 2018, GOLAND and Isaiah Smith planned and carried out the shooting of the Rival Gang Member in the vicinity of Murdock Avenue in the Bronx, New York.
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GOLAND, 29, from the Bronx, New York, is charged with one count of murder in aid of racketeering, which carries a sentence of death or life in prison; one count of murder through the use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison; one count of conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison; one count of attempted murder and assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison; and possession of a firearm in furtherance of a crime of violence, which firearm was brandished and discharged, which carries a maximum sentence of life in prison and a mandatory minimum of 10 years 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 will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the NYPD and the DEA.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Justin V. Rodriguez and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Berkeley County Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
BLUEFIELD, W.Va. – A Berkeley County man pleaded guilty today to attempted enticement of a minor. James Braddock Biggerman, 21, of Hedgesville, was charged by a single-count Information in early March 2021.
According to the plea agreement and statements made in court, Biggerman admitted that in June and July, 2020, he communicated with a 13-year-old female located in Bluefield via Snapchat and text messages. During those conversations he asked the minor female to engage in sexual activity with him and send him sexually explicit images and videos of herself. Biggerman also offered to pay the minor female $100 to engage in sexual activity. Biggerman admitted to having similar conversations during the same time frame with another 13-year-old female located in Charleston. Biggerman admitted that on July 18, 2020, he traveled from Hedgesville to Bluefield in order to meet the first minor female to engage in sexual activity. He then planned to transport that minor to Charleston in order to have sex with both minor females and video record the sexual activity. Biggerman was arrested on July 18, 2020, when he arrived at the location where he had arranged to meet the minor in Bluefield.
“I want to thank the Mercer County Sheriff’s Office, the Charleston Police Department and the FBI Child Exploitation and Human Trafficking Task Force for their excellent work in this case,” said Acting United States Attorney Lisa G. Johnston. “We are committed to prosecuting anyone who seeks to exploit our most vulnerable population – our children.”
Biggerman faces at least 10 years and up to life in prison when he is sentenced on June 14, 2021.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:21-cr-00037.
Follow us on Twitter: SDWVNews
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Arizona Resident, Stopped by Operation Kick Boxer, Sentenced for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on March 22, 2021, Dale L. Bauwens (age: 35), previously of Lake Havasu City, Arizona, was sentenced to 60 months in federal prison by Senior District Judge William C. Griesbach.
Bauwens possessed and distributed numerous digital images and videos of child pornography. Bauwen’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).
In handing down the sentence, Judge Griesbach noted the serious nature of the charge and the need for just punishment. Following his release from prison, Bauwens will spend five years on supervised release. He will also be required to register as a sexual offender.
This case was investigated by the Federal Bureau of Investigation’s Milwaukee, Green Bay, and Phoenix Offices, as well as the Winnebago County Sheriffs’ Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact: Public Information Officer Kenneth Gales
414-297-1700
Acting U.S. Attorney DeHart Urges Public to be Vigilant of Internet Crimes, After South Carolinians Lost More Than $30 Million in 2020 to CybercriminalsRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that, according to the Federal Bureau of Investigation’s 2020 Internet Crime Report, South Carolinians lost more than $30 million to cyber criminals in the past year. Acting U.S. Attorney DeHart urges the public to remain vigilant of cybercrimes, so they do not fall victim.
“Cybercrimes can inflict lifelong damage to the victims,” said Acting U.S. Attorney DeHart. “That is why the investigative work of the FBI and the prosecutorial efforts for cybercrime by our office will not end until such crimes come to a halt. Until that day comes, the public must remain vigilant, particularly during the pandemic, to avoid falling prey to the exploitative cybercriminals.”
The annual report from the FBI noted an increase of more than 300,000 suspected internet crime complaints from 2019, with nearly 800,000 reported in 2020 for reported losses of over $4.2 billion nationwide.
In South Carolina and across the country, victims lost the most money in 2020 to business email compromise / email account compromise (BEC/EAC), followed by romance scams. Victims of BEC/EAC crimes in South Carolina reported losses of over $8.3 million, while victims of romance scams in South Carolina reported losses of more than $4.4 million.
2020 also led to the emergence of COVID-19 scams. Nealy 30,000 complaints by individuals and businesses have been reported across country for crimes related to the pandemic scams.
“The pandemic has unfortunately emboldened cyber criminals to try to take advantage of many neighbors, including those working from home and staying home more often in general,” said Acting U.S. Attorney DeHart. “Our office encourages South Carolinians and South Carolina businesses to protect themselves with video call security measures and additional ways to protect sensitive information.”
Victims of cybercrimes are encouraged to contact the FBI’s Internet Crime Complaint Center at www.ic3.gov.
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South Carolina data from the 2020 Internet Crime Report can be found at https://www.ic3.gov/Media/PDF/AnnualReport/2020State/StateReport.aspx#?s=45.
22 March 2021
Winner Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Winner, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Clayton Spotted Calf, age 26, was indicted on March 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 18, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, five years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 15, 2020, and February 22, 2021, in Tripp County, South Dakota, Spotted Calf knowingly received and possessed child pornography.
The charges are merely accusations and Spotted Calf is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, the U.S. Department of Homeland Security, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Spotted Calf was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Two South Florida Residents Indicted on Federal Sex Trafficking ChargesRead the Press Release
Miami, Florida – A federal grand jury has indicted two South Florida residents in connection with the alleged sex trafficking of a 16-year-old girl.
According to allegations in the criminal complaint affidavit previously filed in this case, the minor victim was a runaway from a group home, with no place to stay, when she met defendants Frantz Mersier, 30, of Hollywood, and Paula Barboza, 25, of Miami Gardens, on December 6, 2020. After offering the child a couch in his house on which to sleep, Mersier took the child in and had sex with her, says the affidavit. In the days that followed, according to the court documents, Mersier and Barboza sexually trafficked the victim. It is alleged that Barboza took nude photographs of the 16-year-old girl and posted them in on-line advertising and that Mersier and Barboza sold sex with the victim to four different men in Broward County, Florida, for $100 each. On December 9, 2020, the victim was able to call a relative. Later that day, law enforcement rescued her.
Mersier and Barboza are each charged with one count of conspiracy to commit sex trafficking and one count of sex trafficking of a minor. Barboza also is charged with production of child pornography. They face life-time prison sentences, if convicted. Mersier and Barboza are being detained pending trial.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, made the announcement.
The investigation was a collaborative effort of the Broward County Human Trafficking Task Force, and it was led by task force members FBI Miami’s Child Exploitation and Human Trafficking Squad, Hollywood Police Department, Miramar Police Department, the U.S. Attorney’s Office, and the Broward County State Attorney’s Office. The Task Force was established to combat all forms of human trafficking while also providing assistance and resources to address the specialized needs of trafficking victims. This case is being prosecuted by Assistant U.S. Attorney Brooke Latta.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
An indictment and criminal complaint are charging documents containing allegations. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60094.
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Two Plead Guilty to Dealing Firearms Without a LicenseRead the Press Release
ABINGDON, Va. – A pair of Southwest Virginia men pleaded guilty last week in U.S. District Court to illegally selling firearms without a license at the Indian Mountain Trade Center in Wise, Virginia, Acting United States Attorney Daniel P. Bubar and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division announced today.
In separate hearings held Friday, March 19, James Michael Boggs, 66, and Tommy Roger Dotson, 65, each pleaded guilty to one count of willfully engaging in the business of selling firearms without a license. Boggs is from Pound, Virginia, and Dotson is from Clintwood, Virginia.
According to court documents, in October 2019 the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began an investigation of firearm sales at the Indian Mountain Trade Center to identify and monitor individuals who appeared to be in the business of dealing firearms without a Federal Firearms License (FFL). Investigators with the ATF observed Boggs and Dotson associating with each other and regularly selling firearms to Trade Center attendees.
Dotson sold firearms from a sales booth, where he regularly displayed 25 to 50 firearms for sale. Boggs kept firearms in his truck and made sales from his truck. During the investigation, both men sold multiple firearms to undercover agents on various occasions. Boggs sold firearms to an undercover agent on three occasions, including nine handguns, a shotgun, and an AR-style rifle. Dotson also sold firearms to undercover agents on three occasions, including three handguns and two rifles.
During the time of these sales, neither Dotson nor Boggs possessed a Federal Firearms License, which is required to engage in the business of dealing firearms. Under the respective plea agreements, Dotson will relinquish 59 seized firearms and more than $13,000 in cash, and Boggs will pay a $5,000 fine. Both men face up to five years in prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Virginia State Police. Assistant United States Attorneys Zachary T. Lee and Whit D. Pierce are prosecuting the case for the United States.
Two Men Admit Carjacking Uber Driver in NewarkRead the Press Release
NEWARK, N.J. – Two men today admitted their roles in a Newark carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.
Rakeem McNair, 21, of Roselle, New Jersey, pleaded guilty today to an information charging him with one count each of carjacking and brandishing a firearm in furtherance of the carjacking. Raquin Tanner, 25, of Newark, pleaded guilty on March 10, 2021, to one count of aiding and abetting the carjacking. Both defendants entered their guilty pleas by videoconference before U.S. District Judge Madeline Cox Arleo and remained detained.
According to documents filed in this case and statements made in court:
On Aug. 13, 2019, the victim parked her car, which she used for her work as an Uber driver, on Summer Avenue in Newark. At approximately 11:00 p.m., the victim was sitting in the driver’s seat when three males approached her car.
Video surveillance from the scene showed that Tanner walked with the other two males around the corner. As they neared the victim’s car, Tanner spoke to the other two, then went ahead of them, looked into the passenger seat of the car, an upon seeing the lone female driver, signaled the other two males to begin the carjacking.
One of the other males pointed a firearm through the driver’s side window, opened the door and attempted to physically remove the victim from the car. A struggle ensued, and McNair went around the car to aid his conspirator in dragging the victim from the car. McNair and the unidentified male threw the victim violently to the ground and drove away with the vehicle.
The carjacking count carries a maximum potential penalty of 15 years in prison. The brandishing of a firearm during a crime of violence count is punishable by a mandatory minimum of seven years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges. Sentencing is scheduled for July 27, 2021, for McNair and July 12, 2021, for Tanner.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the guilty pleas.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized Crime/Gang Unit in Newark.
Tuscola Nurse Sentenced to Six Years in Federal Prison for Using Patients' MorphineRead the Press Release
SPRINGFIELD, Ill. – A Tuscola, Ill., woman, Kandis Mills, 47, who worked as a registered nurse at a health care facility, was sentenced on March 19, 2021, to serve six years in federal prison for tampering with morphine intended for hospice patients and using it herself. Mills was ordered to report to the federal Bureau of Prisons on May 25, 2021, to begin serving her prison term, and to remain on supervised release for three years following her release from prison.
“This case shows both the devasting harm caused by opioid addiction to include almost unforgivable collateral damage inflicted on our most vulnerable citizens and also the importance of strictly following narcotic medicine storage and audit rules,” said Acting U.S. Attorney Douglas J. Quivey. “Unfortunately, medical providers are at heightened risk of addiction and protocols must be strictly followed.”
FBI Springfield Special Agent in Charge Sean M. Cox stated, “ Registered Nurses are some of our most trusted professionals in the health care industry. Unfortunately, this case is representative of the dangers associated with addiction. When an individual does not seek help, they endanger the lives of those whom they entered the profession to protect. Tampering with prescription medication is taken very seriously by the FBI. We will use all available resources to bring to justice those who intentionally jeopardize the health of others.”
“This defendant violated the trust given to those who care for the sick and vulnerable,” said Illinois State Police Director Brendan F. Kelly. “I thank our ISP Special Agents, as well as our federal partners, and, most importantly, the witnesses that stepped up to help us seek justice,” he concluded.
Mills pleaded guilty on Oct. 26, 2020, to two counts of tampering with consumer products, specifically bottles of morphine. Starting in May 2018 and continuing until early August 2018, Mills worked as a registered nurse at Illini Heritage Rehab and Health Care in Champaign, Ill.
According to court documents, on July 20, 2018, a standard internal audit at the facility found an emergency medication control box did not contain the bottle of morphine. In addition, nine tablets of opioid medication were missing.
A different nurse reported on July 23, 2018, that a patient’s morphine bottle appeared to have been tampered with – the dropper was not in the packaging, the bottle had been opened, and the color of the medication was lighter than normal. In addition, the bottle appeared to contain more liquid than it should have. Two nurses at the center also reported to a supervisor that Mills seemed lethargic, was slurring her words, and staring into space.
On Aug. 4, 2018, staff at the facility discovered another emergency medication control box had been tampered with. Specifically, the bottle of morphine, while intact, the flap on its box appeared to be bent and the safety seal had multiple puncture holes.
On Aug. 5, 2018, Mills’ employment with Illini Heritage was terminated. When interviewed by investigators, Mills admitted to consuming residents’ morphine, infrequently at first, but eventually daily. Mills admitted that she used the morphine and then diluted the morphine bottle with tap water from a sink Staff at the facility recalled patients who Mills admitted stealing morphine from had experienced difficulty with pain management near the end of their lives.
The Federal Bureau of Investigation Springfield Division and the Illinois State Police Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Tanner K. Jacobs represented the government at sentencing.
Texas Doctor Accused of False Claims Act ViolationsRead the Press Release
The United States Attorney’s Office for the Northern District of Texas has filed a False Claims Act lawsuit against a Texas dermatopathologist and his clinic, Cockerell Dermatopathology (CDP), for submitting nearly $4.2 million in fraudulent claims to TRICARE, announced Acting U.S. Attorney Prerak Shah.
According to allegations in a civil complaint filed Monday, Dr. Clay Cockerell, 64, knowingly permitted a laboratory management company to use his clinic’s lab license to submit false claims to federal health insurance programs, including TRICARE, for medically unnecessary tests.
The complaint alleges that in March 2015, Dr. Cockerell signed an agreement that authorized the management company, Progen, to use CDP’s CLIA lab license to submit claims for payment for toxicology and pharmacogenomic tests. In return, Progen agreed to pay CDP twenty percent of the net revenue from those tests.
In an attempt to avoid the reach of the federal Anti-Kickback Statue (AKS), Dr. Cockerell specified that CDP would not provide any testing services to beneficiaries of federal health insurance programs, such as TRICARE, Medicare, or Medicaid, or collect any federal revenue.
According to the complaint, Dr. Cockerell quickly became aware that Progen was violating their agreement and submitting claims to federal healthcare programs. He also learned that Progen was engaged in gross mismanagement and abusive practices, and even received warnings that CDP was violating the False Claims Act.
Meanwhile, Progen marketers were offering $50 Wal-Mart gift cards to induce TRICARE beneficiaries to provide urine and saliva for expensive, medically unnecessary testing.
Despite these and other red flags, the complaint alleges that Dr. Cockerell continued to permit Progen, using CDP’s license, to submit fraudulent claims to TRICARE.
The complaint also alleges that, after multiple patient complaints, CDP sent TRICARE a retraction letter in January 2016, admitting to receiving over $900,000 for improper claims. Despite this, Dr. Cockerell continued to let Progen submit lab claims to TRICARE using his CLIA license.
In June 2016, a CBS News story aired about the Wal-Mart gift card scheme. Shortly thereafter, CDP sent another retraction letter to TRICARE and admitted receiving an additional $3.2 million for false claims. While CDP stated that it would refund TRICARE for all of these erroneous claims, it never did.
In November 2016, as CDP was under federal investigation, Dr. Cockerell terminated his relationship with Progen. CDP later filed an arbitration claim against Progen and its principals, seeking indemnification for the millions of dollars it allegedly intended to repay to TRICARE. As described in the government’s complaint, Progen settled this litigation in March 2019 for $3.485 million. In a memorandum explaining the purpose of the settlement payment, Dr. Cockerell and CDP represented that they would use the settlement proceeds to repay TRICARE. But they never did.
The government is now seeking to recover the millions in TRICARE payments that CDP previously admitted were improper, or, at a minimum, the $3.485 million that CDP and Dr. Cockerell agreed that they would pay to TRICARE. The False Claims Act allows for treble damages and statutory civil penalties.
The claims against Dr. Cockerell and CDP are merely allegations until they are proven in court.
The Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorney Richard Guiltinan is handling the civil case, which is assigned to U.S. District Judge Jane J. Boyle.
Tangipahoa Parish Man Sentenced for Violating the Federal Controlled Substances Act and the Gun Control ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that REDIS MCGARY, age 53, a resident of Tangipahoa Parish, was sentenced on March 17, 2021 by United States District Judge Ivan L.R. Lemelle after previously pleading guilty to a two-count Bill of Information with possessing with the intent to distribute heroin and with being a convicted felon in possession of firearms.
According to court documents, on October 7, 2020, MCGARY pled guilty to Count One of the Bill of Information, which charged him with possession with the intent to distribute 100 grams or more of heroin and Count Two, which charged him with possession of a .38 special/357 Mag Derringer pistol and a .22 caliber Derringer pistol. MCGARY had previously been convicted of a felony offense punishable by more than 1 year of imprisonment in the Tangipahoa Parish Criminal District Court.
For Count One, Judge Lemelle sentenced MCGARY to 64 months of imprisonment, 4 years of supervised release, and a $100 special assessment. For Count Two, Judge Lemelle sentenced MCGARY to 64 months of imprisonment, 3 years of supervised release, and a $100 special assessment. Both sentences are to be served concurrently.
The case was investigated by the U.S. Drug Enforcement Administration, the Tangipahoa Parish Sheriff’s Office, and the Hammond Police Department. Assistant United States Attorney Bayonle Osundare was in charge of the prosecution.
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Sylvania, GA man admits distributing child pornographyRead the Press Release
STATESBORO, GA: A Screven County man faces a minimum of five years in federal prison after admitting that he distributed child pornography.
Daniel Boulineau, 34, of Sylvania, Ga., pled guilty in U.S. District Court to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charges carry a minimum penalty of five years in prison and a statutory maximum of up to 20 years, along with substantial financial penalties, registration as a sex offender, and a period of supervised release following incarceration. There is no parole in the federal system.
“The resolution of this case once again serves notice that we and our law enforcement partners will relentlessly pursue predators who prey upon vulnerable children,” said Acting U.S. Attorney Estes. “As a result of this investigation, Daniel Boulineau will be held accountable for his crime.”
As outlined in court documents and testimony, in early August 2020, Boulineau admitted that he electronically distributed images and videos of a minor engaging in sexually explicit conduct. An investigation by the FBI and the Child Exploitation Task Force into online activity led to Boulineau’s arrest on Sept. 1, 2020.
A sentencing date has not yet been set.
“The distribution of child pornography is an attack against the most vulnerable members of society,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No sentence for this man will remove the scars left on the children victimized by his crimes, but hopefully it will serve as a warning that the FBI will use any resources necessary to apprehend anyone who carries out these appalling crimes.”
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
St. Francis Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Possession of an Unregistered Firearm was sentenced on March 19, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Kendall Elk Looks Back, age 30, was sentenced to 12 months and one day in federal prison, followed by three years of supervised release, forfeiture of the firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Elk Looks Back was indicted by a federal grand jury on March 9, 2020. He pled guilty on July 27, 2020.
The conviction stemmed from an incident that occurred on January 13, 2019, in Todd County, South Dakota, Elk Looks Back possessed a weapon less than sixteen inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Elk Looks Back was immediately turned over to the custody of the U.S. Marshals Service.
St. Croix Couple Arrested for Firearms Trafficking Involving over 100 Illegally Manufactured Firearms Sold Throughout the U.S. Virgin IslandsRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Somalie Bruce, age 35, and Jeanorah Williams, age 26, of St. Croix were arrested for firearms trafficking; conspiracy to engage in firearms trafficking; shipping, transporting and receiving firearms with intent to commit a felony; and local territorial charges for unlawful possession of a firearm, and ammunition. Bruce was also charged in separate counts with distribution of at least 500 grams of cocaine under federal law and possession of a firearm with an obliterated serial number under federal and territorial law. The indictment was unsealed today.
According to the indictment filed in this case, beginning in 2016 and continuing through 2020, Bruce and Williams engaged in an unlicensed firearm trafficking business with others known and unknown to the Grand Jury. The indictment alleges Bruce and Williams ordered gun parts and accessories from various companies in North Carolina and Florida and had the items delivered to their respective post office boxes in St. Croix. Williams and Bruce purchased money orders totaling over $60,000 from the United States Post Office to pay for the firearm parts. Thereafter, Bruce built pistols and rifles and sold them to others persons knowing, or having a reasonable cause to believe, that these individuals would not register the firearms, as required by law, with the Virgin Islands Police Department, an offense punishable by a minimum of ten years in prison.
On December 8, 2020, Bruce and Williams were apprehended with multiple firearms and ammunition in their possession. In addition, Bruce possessed a Glock firearm with an obliterated serial number in violation of federal and territorial law.
The court appearance is set before Magistrate Judge Ruth Miller on Wednesday, March 24, 2021 at 10:00 a.m. for a detention hearing for Bruce. Bail was set for Williams in the amount of $20,000.00.
An indictment is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Homeland Security Investigations (HSI), the United States Postal Inspection Service (USPIS), and the Bureau of Alcohol, Tobacco and Firearms (ATF) with assistance from the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Virgin Islands Police Department (VIPD), and Virgin Islands Port Authority (VIPA). It is being prosecuted by Assistant United States Attorneys Alessandra P. Serano and Juan Albino.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative and Homeland Security Investigations-Arms and Strategic Technology Proliferation Program. For more information on the Department of Justice’s Project Safe Neighborhoods and the Homeland Security Investigations-Arms and Strategic Technology Proliferation Initiative, please see: https://www.justice.gov/psn and https://www.ice.gov/investigations/astp.
Six Family Members Sentenced in Short Sale Mortgage Fraud SchemeRead the Press Release
Miami, Florida – Today, the last of six South Florida family members was sentenced to a term of imprisonment, and ordered to pay a total of $1,342,928.77 in restitution, following her conviction by way of guilty plea in August 2020, to conspiracy to commit bank fraud. Ana Cummings, 61 years old of Davie, Florida, was sentenced to 27 months of imprisonment.
During prior hearings, Cummings’s sons, Valentin Pazmino (34 years old) and Rene A. Pazmino (36 years old), were sentenced to 27 months and 18 months of imprisonment, respectively. Her daughters, Grace Pazmino (43 years old) and Diana Pazmino (31 years old), were sentenced to 27 months and 22 months of imprisonment, respectively. Her son-in-law Jared Marble (43 years old, Grace Pazmino’s husband), was sentenced to 16 months of imprisonment. All sentences were imposed by United States District Judge Jose E. Martinez following guilty pleas. Pursuant to their plea agreements, the defendants made a full payment of the restitution judgment prior to their sentencings.
According to court documents, various defendants participated in a series of ten fraudulent real estate short sale transactions in South Florida between May of 2012 and June of 2015. Cummings and Grace Pazmino participated in all ten of the fraudulent short sales. Diana Pazmino and Valentin Pazmino each participated in nine of the fraudulent short sales. Marble participated in three of the fraudulent short sales. Rene A. Pazmino participated in two of the fraudulent short sales. In each short sale transaction in which they participated, the defendants made materially false statements to a financial institution in order to defraud it into approving the short sale. Specifically, the defendants executed short sale affidavits and affidavits of arm’s length transactions falsely attesting that the sales were between unrelated, unaffiliated parties. In reality, the sales were between and among the defendants, companies controlled by the defendants, and/or individuals recruited by a defendant to participate in the fraud scheme. Members of the conspiracy also executed HUD-1 Settlement statements misrepresenting that the named buyer made the required cash-to-close payment. In reliance on these material representations, various financial institutions authorized property sales for amounts less than the outstanding principal balances due on mortgages they held on the properties, thereby incurring losses.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office, and Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG) Southeast Region made the announcement.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Internal Revenue Service-Criminal Investigation, Miami Field Division and the Federal Housing Finance Agency – Office of Inspector General Southeast Region.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-20606-JEM.
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Siblings Plead Guilty to Offenses Involving the Sale of Stolen MacBooksRead the Press Release
SACRAMENTO, Calif. — Patricia Castaneda, 37, of San Carlos, pleaded guilty today to federal program theft, and in a separate case, her brother Eric Castaneda, 36, of Redwood City, pleaded guilty to conspiracy to transport stolen property interstate, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Patricia Castaneda worked in the School of Humanities and Sciences at a private university in Stanford. In her position, Patricia Castaneda’s duties included ordering Apple MacBooks for university faculty and staff. In 2009 or 2010, Patricia Castaneda began stealing MacBooks she ordered and selling them for cash. Initially, Patricia Castaneda sold the MacBooks she stole to an individual she met on Craigslist. In February 2016, Patricia Castaneda began giving the stolen MacBooks to Eric Castaneda to sell to an individual in Folsom who, in turn, resold and shipped the MacBooks to buyers outside California.
In total, the cost to the university of MacBooks that Patricia Castaneda stole was over $4 million. That amount includes the cost to the university of approximately 800 stolen MacBooks Eric Castaneda sold to the individual in Folsom, which was approximately $2.3 million.
This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Patricia Castaneda and Eric Castaneda on June 7. Patricia Castaneda faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Eric Castaneda faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.