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18 March 2021
Kroger Shooter Pleads Guilty to Federal Hate Crimes and Firearm OffensesRead the Press Release
A Kentucky man pleaded guilty today to federal hate crimes and firearm charges arising out of the racially motivated shootings of Black individuals at a grocery store.
Gregory A. Bush, 53, of Louisville, pleaded guilty to federal hate crime and firearm charges arising out of his racially motivated murder of two Black patrons at a Kroger grocery store, and his attempted murder of a third, on Oct. 24, 2018, in Jeffersontown, Kentucky. Bush previously pleaded guilty-but-mentally-ill to state charges for murder, attempted murder, and wanton endangerment arising out of the shooting, and was sentenced to a life term in state prison.
During the plea hearing in federal court, Bush admitted that on Oct. 24, 2018, he drove to a Kroger grocery store in Jeffersontown armed with a Smith & Wesson, model 411, .40-caliber pistol. In the store, Bush followed a Black man, who was shopping with his grandson, for the length of an aisle before pulling the gun from his waistband and shooting the victim in the back of the head. Bush then shot the victim several more times in the torso, killing him. Bush had no prior relationship with the victim and chose to shoot him because of the victim’s race. Bush then re-holstered his gun and calmly walked out of the store.
In the parking lot, Bush walked up to a Black woman, and shot her several times in the head and body, killing her. Bush had no prior relationship with this victim and chose to shoot her because of her race.
Seconds later, Bush encountered a Black man who was in lawful possession of a handgun. The third victim asked Bush what was going on, and Bush, without responding, began walking toward him with the gun drawn. The third victim fired at Bush, and Bush returned fire. After about a minute, Bush stopped shooting and walked away. Bush had no prior relationship with the third victim and chose to shoot at him because of his race. Bush next encountered a white man, who was legally armed with a firearm. Bush told him, “Don’t shoot me [and] I won’t shoot you. Whites don’t shoot whites.”
“Today’s guilty plea will ensure that a violent and disturbed man will never get another chance to target and terrorize the Black community,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Civil Rights Division. “It won’t bring back two pillars of the Louisville community, whose tragic and senseless deaths we mourn, but we hope it sends the message that the Justice Department will work tirelessly to bring perpetrators of bias-motivated violence to justice.”
“The work of the Jeffersontown Police Department, FBI and ATF in responding to and thoroughly investigating this tragic event is commendable,” said Acting U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “The outstanding effort of the federal prosecutors assigned to this case and the solid working relationship we have with our state counterparts in the Jefferson County Commonwealth’s Attorney’s Office were instrumental in bringing about this plea.”
“The senseless murder of two of our citizens because of their race has no place in our community. Hate cannot, and will not, win,” said FBI Louisville Special Agent in Charge Robert Brown. “Today’s guilty plea is just one example of the Justice Department's and the FBI’s commitment to protecting civil rights for all and vindicating the rights of violent crime victims.”
“In its mission to protect our nation, ATF stands committed to swiftly arresting those who create terror in our communities through violent acts of hate,” stated Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Louisville Field Division. “In this instance, two Louisville African-Americans were gunned down while shopping for groceries – merely due to the color of their skin. ATF will continue to work with our law enforcement partners to seek justice for the victims and families of violent hate crimes and we will work tirelessly to enforce laws to prevent these tragedies.”
Bush faces a maximum sentence of life imprisonment without the possibility of parole. Bush’s sentencing in federal court will be held on June 24, 2021.
This case was investigated by the FBI Louisville Office, the ATF Louisville Field Division and the Jeffersontown Police Department and was prosecuted by Special Litigation Counsel Christopher J. Perras of the Civil Rights Division, and Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky.
A Kentucky man pleaded guilty today to federal hate crimes and firearm charges arising out of the racially motivated shootings of Black individuals at a grocery store.
Gregory A. Bush, 53, of Louisville, pleaded guilty to federal hate crime and firearm charges arising out of his racially motivated murder of two Black patrons at a Kroger grocery store, and his attempted murder of a third, on Oct. 24, 2018, in Jeffersontown, Kentucky. Bush previously pleaded guilty-but-mentally-ill to state charges for murder, attempted murder, and wanton endangerment arising out of the shooting, and was sentenced to a life term in state prison.
During the plea hearing in federal court, Bush admitted that on Oct. 24, 2018, he drove to a Kroger grocery store in Jeffersontown armed with a Smith & Wesson, model 411, .40-caliber pistol. In the store, Bush followed a Black man, who was shopping with his grandson, for the length of an aisle before pulling the gun from his waistband and shooting the victim in the back of the head. Bush then shot the victim several more times in the torso, killing him. Bush had no prior relationship with the victim and chose to shoot him because of the victim’s race. Bush then re-holstered his gun and calmly walked out of the store.
In the parking lot, Bush walked up to a Black woman, and shot her several times in the head and body, killing her. Bush had no prior relationship with this victim and chose to shoot her because of her race.
Seconds later, Bush encountered a Black man who was in lawful possession of a handgun. The third victim asked Bush what was going on, and Bush, without responding, began walking toward him with the gun drawn. The third victim fired at Bush, and Bush returned fire. After about a minute, Bush stopped shooting and walked away. Bush had no prior relationship with the third victim and chose to shoot at him because of his race. Bush next encountered a white man, who was legally armed with a firearm. Bush told him, “Don’t shoot me [and] I won’t shoot you. Whites don’t shoot whites.”
“Today’s guilty plea will ensure that a violent and disturbed man will never get another chance to target and terrorize the Black community,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Civil Rights Division. “It won’t bring back two pillars of the Louisville community, whose tragic and senseless deaths we mourn, but we hope it sends the message that the Justice Department will work tirelessly to bring perpetrators of bias-motivated violence to justice.”
“The work of the Jeffersontown Police Department, FBI and ATF in responding to and thoroughly investigating this tragic event is commendable,” said Acting U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “The outstanding effort of the federal prosecutors assigned to this case and the solid working relationship we have with our state counterparts in the Jefferson County Commonwealth’s Attorney’s Office were instrumental in bringing about this plea.”
“The senseless murder of two of our citizens because of their race has no place in our community. Hate cannot, and will not, win,” said FBI Louisville Special Agent in Charge Robert Brown. “Today’s guilty plea is just one example of the Justice Department's and the FBI’s commitment to protecting civil rights for all and vindicating the rights of violent crime victims.”
“In its mission to protect our nation, ATF stands committed to swiftly arresting those who create terror in our communities through violent acts of hate,” stated Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Louisville Field Division. “In this instance, two Louisville African-Americans were gunned down while shopping for groceries – merely due to the color of their skin. ATF will continue to work with our law enforcement partners to seek justice for the victims and families of violent hate crimes and we will work tirelessly to enforce laws to prevent these tragedies.”
Bush faces a maximum sentence of life imprisonment without the possibility of parole. Bush’s sentencing in federal court will be held on June 24, 2021.
This case was investigated by the FBI Louisville Office, the ATF Louisville Field Division and the Jeffersontown Police Department and was prosecuted by Special Litigation Counsel Christopher J. Perras of the Civil Rights Division, and Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky.
Kroger Shooter Pleads Guilty to Federal Hate Crimes and Firearm OffensesRead the Press Release
LOUISVILLE, Ky. – A Kentucky man pleaded guilty today to federal hate crimes and firearm charges arising out of the racially motivated shootings of Black individuals at a grocery store. The federal plea was announced by Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division; Acting U.S. Attorney Michael A. Bennett for the Western District of Kentucky; James Robert Brown, Jr., the Special Agent in Charge of the Louisville FBI; and R. Shawn Morrow the Special Agent in Charge of the Louisville ATF.
Gregory A. Bush, 53, of Louisville, Kentucky, pleaded guilty to federal hate crime and firearm charges arising out of his racially motivated murder of two Black patrons at a Kroger grocery store, and his attempted murder of a third, on Oct. 24, 2018, in Jeffersontown, Kentucky. Bush previously pleaded guilty-but-mentally-ill to state charges for murder, attempted murder, and wanton endangerment arising out of the shooting, and was sentenced to a life term in state prison.
During the plea hearing in federal court, Bush admitted that on Oct. 24, 2018, he drove to a Kroger grocery store in Jeffersontown, Kentucky, armed with a Smith & Wesson, model 411, .40-caliber pistol. In the store, Bush followed a Black man, who was shopping with his grandson, for the length of an aisle before pulling the gun from his waistband and shooting the victim in the back of the head. Bush then shot the victim several more times in the torso, killing him. Bush had no prior relationship with the victim and chose to shoot him because of the victim’s race. Bush then re-holstered his gun and calmly walked out of the store.
In the parking lot, Bush walked up to a Black woman, and shot her several times in the head and body, killing her. Bush had no prior relationship with this victim and chose to shoot her because of her race.
Seconds later, Bush encountered a Black man who was in lawful possession of a handgun. The third victim asked Bush what was going on, and Bush, without responding, began walking toward him with the gun drawn. The third victim fired at Bush, and Bush returned fire. After about a minute, Bush stopped shooting and walked away. Bush had no prior relationship with the third victim and chose to shoot at him because of his race. Bush next encountered a white man, who was legally armed with a firearm. Bush told him, “Don’t shoot me [and] I won’t shoot you. Whites don’t shoot whites.”
“Today’s guilty plea will ensure that a violent and disturbed man will never get another chance to target and terrorize the Black community,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Civil Rights Division. “It won’t bring back two pillars of the Louisville community, whose tragic and senseless deaths we mourn, but we hope it sends the message that the Department of Justice will work tirelessly to bring perpetrators of bias-motivated violence to justice.”
“The work of the Jeffersontown Police Department, FBI, and ATF in responding to and thoroughly investigating this tragic event is commendable,” said Acting U.S. Attorney Michael A. Bennett. “The outstanding effort of the federal prosecutors assigned to this case and the solid working relationship we have with our state counterparts in the Jefferson County Commonwealth’s Attorney’s Office were instrumental in bringing about this plea.”
“The senseless murder of two of our citizens because of their race has no place in our community. Hate cannot, and will not, win,” said FBI Louisville Special Agent in Charge Robert Brown. “Today’s guilty plea is just one example of the Department of Justice’s and the FBI’s commitment to protecting civil rights for all and vindicating the rights of violent crime victims.”
“In its mission to protect our nation, ATF stands committed to swiftly arresting those who create terror in our communities through violent acts of hate,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “In this instance, two Louisville African Americans were gunned down while shopping for groceries – merely due to the color of their skin. ATF will continue to work with our law enforcement partners to seek justice for the victims and families of violent hate crimes and we will work tirelessly to enforce laws to prevent these tragedies.”
Bush faces a maximum sentence of life imprisonment without the possibility of parole. Bush’s sentencing in federal court will be held on June 24, 2021.
This case was investigated by the FBI Louisville Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives Louisville Field Division, and the Jeffersontown Police Department, and was prosecuted by Special Litigation Counsel Christopher J. Perras of the DOJ’s Civil Rights Division, and Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky.
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Justice Department Seeks to Shut Down Fraudulent Chicago-Area Tax Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Northern District of Illinois, Eastern Division, seeking to enjoin a tax preparer from South Chicago Heights, Illinois, from preparing federal income tax returns for others.
The civil complaint filed against Leannette Scott alleges that she prepares federal income tax returns on which she reports false sole-proprietorship business expenses and education credits. According to the complaint, the IRS interviewed 21 of Scott’s customers, 17 of whom allegedly stated that Scott included incorrect and false information on their 2018 income tax returns. The complaint alleges that the IRS determined that the returns of these 17 customers reflect an actual tax loss to the United States of $39,287.
The complaint further alleges that Scott prepared at least 562 income tax returns from 2016 to 2020, for tax years 2015 through 2019. According to the complaint, Scott’s fraudulent tax preparation activities have caused the United States to lose substantial tax revenue, undermined public confidence in the administration of the federal tax system, and caused harm to her customers by exposing them to statutory penalties for substantially underreporting and underpaying their tax liabilities.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Judge sentences St. Louis man for carjackings and possession and brandishing a firearmRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Ramonte Willey to 17 years in prison today. The 24-year-old St. Louis, Missouri resident pleaded guilty to two counts of carjacking and one count of possession and brandishing of a firearm in furtherance of a crime of violence.
Willey committed two carjackings in the City of St. Louis. On December 7, 2018, Willey approached a victim’s Chevrolet Impala, which was parked in a Family Dollar parking lot in the 5000 block of Enright Avenue. Willey demanded the victim’s money. Brandishing a handgun with an extended clip, Willey then forced his victim out of the vehicle, saying “Get out of the f**king car!” Willey took the Impala from his victim, driving away from the scene of the crime.
On January 27, 2019, Willey arrived at a gas station in the 2000 block of N. Florissant in a stolen Kia Optima. Willey then got out of the Optima, approached a victim who was pumping gas, and put a gun in the victim’s side. Willey then took the victim’s car, a Toyota Camry. As the victim fled, Willey fired shots at him. Willey drove off in the Camry. The driver of the Optima also drove off, following Willey.
The next day, St. Louis Metropolitan Police officers saw a Kia Optima consistent with the vehicle used in the carjacking. Willey was driving the Optima. When detectives tried to pull over the vehicle, Willey sped off. Even after detectives deployed spike strips. Willey continued to drive recklessly, throughout the City of St. Louis, violating stop signs and endangering others. Ultimately, the Optima became disabled in the 2900 block of Marcus.
Detectives demanded the occupants of the vehicle place their hands in the air. Willey, the driver of the vehicle, opened the door of the vehicle and placed his hands in the air, before reaching back into the vehicle. Willey ultimately exited the Optima and laid on the ground with a bag strapped to his torso. The bag contained two boxes of ammunition. Detectives also recovered two firearms, including a handgun with an extended clip and another handgun, and a box of ammunition from the vehicle.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case.
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Judge sentences St. Louis County man to 10 years for drug and firearm chargesRead the Press Release
ST. LOUIS – United States District Judge Rodney W. Sippel sentenced Teran Martin to 120 months in prison today and ordered Martin to forfeit $23,488 and the several firearms law enforcement seized in the course of investigating the crimes charged. The 27-year-old Ferguson, Missouri resident had previously pleaded guilty to one count of possessing methamphetamine with intent to distribute and one count of possessing one or more firearms in furtherance of a drug trafficking crime.
On January 7, 2020, Drug Enforcement Administration investigators executed a federal search warrant at Martin’s residence and seized a firearm along with quantities of fentanyl, cocaine base, and heroin. Investigators searched two more locations and seized additional items belonging to Martin, including eleven more firearms, additional quantities of fentanyl, cocaine base, and methamphetamine, and approximately $23,488. Martin has admitted the $23,488 seized by law enforcement are proceeds he obtained by selling controlled substances.
The Drug Enforcement Administration and St. Louis County Police Department investigated this case. Assistant United States Attorney Jay Redd prosecuted the case.
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Johnson County Man Sentenced to 125 Months for Importing Pounds of Methamphetamine from GeorgiaRead the Press Release
PIKEVILLE, Ky. – A Johnson County man, Sean Tharp, was sentenced to 125 months in federal prison on Thursday, by United States District Judge Robert E Wier, following his conviction for conspiring to distribute methamphetamine.
Tharp pled guilty to the charge in November 2020.
According to his plea agreement, between April 2020 and September 2020, Tharp conspired with others to distribute more than 500 grams of methamphetamine. Tharp admitted that he developed a relationship with a supplier of methamphetamine outside of Kentucky, from whom he obtained pound quantities of methamphetamine on multiple occasions. Tharp admitted to traveling to Georgia to obtain the methamphetamine, which he brought back to the Johnson County area to sell. In his plea agreement, Tharp admitted that the conspiracy involved at least 1.5 kilograms of methamphetamine.
Under federal law, Tharp must serve 85 percent of his prison sentence. Upon Tharp’s release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Doug Saylor, Johnson County Sheriff, jointly announced the guilty plea.
The investigation was conducted by the DEA and Johnson County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
Iron Youth Member Pleads Guilty to Unlawfully Possessing a Machine GunRead the Press Release
In San Antonio today, 19-year-old Iron Youth member and Smiley resident Caleb Nathaniel Oliver pleaded guilty to illegally possessing a machine gun, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
By pleading guilty, Oliver admitted that he purchased a fully automatic machine gun from an undercover officer for $1,000 on February 5, 2021. Court documents reflect that Oliver is a member of the group called Iron Youth, a racially motivated violent extremist group that advocates violence in the furtherance of its objectives. Beginning in September 2020, Oliver had several meetings with undercover officers to discuss the purchase of the machine gun.
Oliver, who faces up to 10 years in federal prison was released on bond. Sentencing is scheduled for June 14, 2021, before U.S. District Judge David A. Ezra.
The FBI conducted this investigation with assistance from the Wilson County Sheriff’s Office, Gonzales County Sheriff’s Office and Texas Rangers. Assistant U.S. Attorneys William R. Harris and Mark Roomberg are prosecuting this case.
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Houston Marijuana Ringleader Sentenced to 18 Years in Federal PrisonRead the Press Release
In Del Rio yesterday, a federal judge sentenced Houston resident Michael Dewayne Dennis, aka Michael Spiller, to 18 years in federal prison for leading a conspiracy that distributed over 11,000 kilograms of marijuana throughout the country, announced U.S. Attorney Ashley C. Hoff; Homeland Security Investigations (HSI) Deputy Special Agent in Charge Craig Larrabee, San Antonio Division; and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux, Houston Division.
In addition to the prison term, U.S. District Judge Alia Moses ordered Dennis, 38, to pay a $2,500 fine and be placed on supervised release for a period of five years after completing his prison term. Judge Moses also granted the government’s motion to forfeit the defendant’s interest in the following property: $197,313 in seized currency, two real properties in Houston, and 19 firearms. Judge Moses further ordered a $7.2 million money judgment against the defendant for proceeds derived from his criminal conduct.
On September 12, 2019, a federal jury convicted Dennis of one count of conspiracy to possess with intent to distribute marijuana. According to evidence presented during trial, Dennis led a marijuana trafficking conspiracy from at least July 2014 to June 2018. During this time Dennis and his co-conspirators brought marijuana into the U.S. from Mexico and transported the marijuana to Dennis’ compound in Houston where it was packaged for sale and distribution. One of the smuggling methods involved illegal aliens carrying loads of marijuana on their backs to pick-up locations near Del Rio. After the marijuana was dropped off, drivers transported the marijuana to Houston. Over the course of the conspiracy, Dennis facilitated the distribution of at least 11,194 kilograms of marijuana.
“This sentence identifies how HSI works to investigate the infrastructure of a criminal enterprise,” said HSI Deputy Special Agent in Charge, Craig Larrabee. “When organizations accumulate assets from illicit activities, HSI and law enforcement partners will work to dismantle the organization and target those assets. This lasting effect helps to better protect our communities.”
On July 11, 2018, HSI and DEA agents, with assistance from the Houston Police Department, arrested Dennis following a stand-off with law enforcement. During the stand-off, Dennis brandished a firearm and was shot. He has since remained in federal custody.
“The prosecution and sentencing of Michael Dennis sends a clear message to all who engage in the distribution of illegal drugs,” stated DEA Special Agent in Charge Daniel C. Comeaux. “DEA and our partners will continue to work together to see that anyone involved in this illicit trade will be brought to justice.”
HSI, DEA and U.S. Border Patrol conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Bale Out Boys. Assistant U.S. Attorneys Amy Hail, John Kennedy and Antonio Franco prosecuted this case on behalf of the government.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations of those primarily responsible for the nation’s illegal drug supply.
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Fresno Man Sentenced to 6 Years in Prison for Drug Trafficking and Firearm OffenseRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Valentin Martinez, 41, of Fresno, today to six years in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2019, Martinez was a back-seat passenger in a car when law enforcement officers conducted a traffic-enforcement stop of the car and obtained permission from the driver to search it. Next to where Martinez was seated, officers found a tool bag with a firearm, ammunition, a scale, and plastic bags. Martinez admitted the items in the tool bag were his and admitted that he had methamphetamine on his person. On June 12, 2020, Martinez pleaded guilty to firearm and drug trafficking offenses.
This case was the product of an investigation by Homeland Security Investigations and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fresno Felon Indicted for Possessing AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Daniel Santos Galaviz, 27, of Fresno, charging him with unlawfully possessing ammunition after being convicted of a felony crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 24, officers arrested Galaviz after he fled on foot from a vehicle during an attempted traffic stop. Officers recovered a loaded magazine from Galaviz during his arrest. Galaviz is prohibited from possessing ammunition because of his prior criminal record.
This case is the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted, Galaviz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fourth Circuit Upholds Jury Conviction in Foreign-Agent ProsecutionRead the Press Release
WASHINGTON – The U.S. Court of Appeals for the Fourth Circuit today upheld an Eastern District of Virginia jury verdict convicting a man of acting and conspiring to act as an agent of the Turkish government within the United States without disclosing that relationship to the U.S. government. The Fourth Circuit also vacated an order granting a new trial and remanded the case for further proceedings before the district court.
According to court records, Bijan Rafiekian, 69, of San Juan Capistrano, California, along with his alleged co-conspirator, Kamil Ekim Alptekin, 43, of Istanbul, a Turkish national with close ties to the highest levels of the Government of Turkey, were involved in a conspiracy to act covertly within the U.S. on instructions from the Turkish government. The plot included using the services of the Flynn Intel Group (FIG), a company founded by Rafiekian and retired General Michael T. Flynn, to publicly and privately influence U.S. politicians and public opinion against a Turkish national, Fethullah Gulen, who is an imam, writer and political figure living in the U.S. Since 2015, the Government of Turkey has filed multiple extradition requests for Gulen in an effort to convince the U.S. government to extradite Gulen to Turkey.
Assistant Attorney General for the Justice Department's National Security Division John C. Demers and Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia issued the following statement with respect to the decision of the United States Court of Appeals for the Fourth Circuit in United States v. Rafiekian:
“A federal jury found Rafiekian guilty of acting as an undisclosed agent of Turkey and conspiring to do so. We are pleased the Fourth Circuit concluded that the jury’s verdict was amply supported by the evidence. The Court’s careful legal analysis confirmed the broad scope and importance of transparency requirements for individuals acting within the United States at the direction of foreign governments. This case is a reminder to those who act covertly within our country on behalf of a foreign power that they face criminal consequences for their conduct. The Department will continue to combat covert foreign influence operations using the Foreign Agents Registration Act and all the tools at its disposal.”
According to court documents, the purpose of the conspiracy was to use FIG to delegitimize Gulen in the eyes of the American public and U.S. politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only was Rafiekian told by Alptekin that Turkish cabinet-level officials had approved the budget for the project, but Alptekin also told Rafiekian and Flynn during the project that he was providing the Turkish officials updates on the work. Rafiekian understood that Alptekin was relaying the Turkish officials’ directions on the work to Rafiekian, Flynn, and others at FIG. During a September 2016 meeting in New York City organized by Alptekin, Rafiekian personally met with Turkish officials and heard them express their desire for Gulen’s extradition, an objective he then pursued using FIG’s personnel and connections.
According to court records and evidence presented at trial, the scheme included using Alptekin’s Dutch shell company to act as FIG’s “client.” FIG was paid $600,000 in three installments from an account in Turkey in Alptekin’s name. After Alptekin made the payments to FIG, FIG kicked back 20% of the payments to Alptekin’s shell company.
Rafiekian was convicted on charges of acting as an undisclosed foreign agent and of criminal conspiracy to act as an undisclosed foreign agent and to make a materially false Foreign Agents Registration Act filing. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Aidan Taft Grano argued the case on appeal. Assistant U.S. Attorneys James P. Gillis and John T. Gibbs of the Eastern District of Virginia and Trial Attorney Evan N. Turgeon of the National Security Division's Counterintelligence and Export Control Section prosecuted the case at trial.
Fort Totten Man Arrested for MurderRead the Press Release
Fargo – Acting United States Attorney Nick Chase announced that a federal grand jury has indicted Cody James Belgarde, age 34 of Fort Totten, ND, for First Degree Murder.
An indictment unsealed today alleges Belgarde shot to death a juvenile male on the Spirit Lake Reservation on January 14, 2021. The death was discovered after a report of a house fire at a residence in Fort Totten.
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Indian Affairs, and the North Dakota Bureau of Criminal Investigation, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Lori H. Conroy assigned to the case.
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Former Waterbury Resident Sentenced to Prison for Distributing CrackRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that RAYSHON FRAZIER, 30, of Meriden, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in July and August 2019, the DEA New Haven Task made multiple controlled purchases of distribution quantities of crack cocaine from Frazier’s associate in Middletown. After Frazier’s associate was incarcerated on a state probation violation in early September 2019, Frazier took over his associate’s drug distribution activity. Between September and November 2019, investigators made three controlled purchases of crack, totaling approximately 40 grams, from Frazier in Waterbury, where Frazier formerly resided.
Frazier was arrested on a federal criminal complaint on November 27, 2019. On December 22, 2020, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
Frazier, who is released on a $100,000 bond, is required to report to prison on May 19, 2021.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force and the Middletown Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Amanda S. Oakes and Sarala V. Nagala.
Former State Department Employee Sentenced to Prison for Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
A former U.S. Department of State employee and his spouse were sentenced today for their roles in a conspiracy to traffic hundreds of thousands of dollars in counterfeit goods through e-commerce accounts operated from State Department computers at the U.S. Embassy in Seoul, Republic of Korea.
Gene Leroy Thompson Jr., 54, and Guojiao “Becky” Zhang, 40, pleaded guilty to one count of conspiracy to traffic in counterfeit goods on Dec. 20. 2020. Thompson Jr. was sentenced to 18 months in prison and three years of supervised release. Zhang was sentenced to three years of supervised release, the first eight months of which will consist of home confinement. Thompson Jr. and Zhang were also ordered to forfeit a combined total of $229,302.
According to court documents, Thompson Jr. was an Information Programs Officer employed by the Department of State at the U.S. Embassy in Seoul, Republic of Korea, a position that required him to maintain a security clearance. Zhang resided with him in Seoul. Between September 2017 and December 2019, Thompson Jr. and Zhang sold counterfeit goods on a variety of e-commerce platforms. Thompson Jr. used his State Department computer at the embassy to create numerous e-commerce accounts, including additional accounts under aliases to continue the conspiracy and avoid detection after several e-commerce platforms suspended the couple’s other accounts for fraudulent activity. Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon; and Assistant Director Ricardo Colón of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
The case was investigated by the DSS Office of Special Investigations with assistance from the U.S. Postal Inspection Service. The case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Amy Potter of the District of Oregon.
Former Meridian Police Officer Sentenced to Federal PrisonRead the Press Release
Jackson, Miss. – Royric “Roy” Benamon, 27, a former officer with the Meridian Police Department, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to a prison term of 12 months and one day, followed by two years of supervised release, for extortion under color of right, also known as the federal Hobbs Act, announced Acting United States Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
In April 2020, then-Officer Benamon on two separate occasions pulled over drivers in the middle of the night in Lauderdale County, and received from each of them cash payment in exchange for not issuing the driver a ticket.
Benamon was indicted by a federal grand jury in July 2020 on two counts of extortion under color of right. On December 2, 2020 Benamon entered a guilty plea to one count of the indictment.
Acting U.S. Attorney Darren J. LaMarca stated, “One of the worst possible betrayals of the public trust is the abuse of power for personal gain by armed police officers. We are determined to root out those bad actors who abuse their position of trust in this way, as they both endanger the community and besmirch the reputation of all honorable officers who follow their duty to protect and to serve.”
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The case was prosecuted by Assistant United States Attorney Theodore Cooperstein.
Former Member of New Bedford Latin Kings Chapter Sentenced for Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on racketeering charges.
Issac Felix-Rivera, a/k/a “King Izzy,” 24, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately 4.5 months in prison) and three years of supervised release, with the first six months to be served in home confinement. In December 2020, Felix-Rivera pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Felix-Rivera admitted to his role in the Latin Kings drug distribution conspiracy based in the City of New Bedford, where the gang ran a vast cocaine base distribution network that used multi-unit apartment buildings known as “trap houses” to distribute the narcotics. Members of the Latin Kings dealt drugs in the trap houses, obtaining their supply of cocaine base from co-defendant, and leader of the New Bedford Chapter of the Latin Kings, Jorge Rodriguez, a/k/a “King G.” Evidence developed during the course of the investigation included multiple recordings of Latin Kings members cooking cocaine base, directing violence against rival gang members, meting out discipline and handling firearms used to protect the Latin Kings’ drug distribution network.
Rodriguez previously pleaded guilty and was sentenced in November 2020 to 18 years in prison.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Felix-Rivera is the 20th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Lynn Haven City Commissioner and Developer Charged in Superseding Indictment Against Former Lynn Haven Mayor and City AttorneyRead the Press Release
TALLAHASSEE, FLORIDA – In an ongoing case arising from alleged public corruption by Lynn Haven City’s former Mayor and Attorney, David James Finch, 70, and Antonius Genzarra Barnes, 55, were indicted Tuesday by a federal grand jury on charges of conspiracy to commit wire fraud and honest services fraud, and substantive counts of wire fraud and honest services fraud. Finch is also charged with making false statements to the FBI. The 44-count superseding indictment alleges that Finch, a Lynn Haven developer, and Barnes, a former Lynn Haven City Commissioner, conspired with Lynn Haven’s then-Mayor, Margo Deal Anderson, and then-City Attorney, Joseph Adam Albritton, to ensure that contracts for numerous multimillion-dollar infrastructure and construction projects and post-Hurricane Michael debris clean-up activities were awarded to Finch. In return, Finch allegedly provided money and gifts to Anderson and Barnes, and Albritton received money from a company doing debris clean-up.
Acting United States Attorney Jason R. Coody of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office, and Bay County Sheriff Tommy Ford announced the superseding indictment at a press conference this afternoon.
The original indictment, returned by a federal grand jury in Panama City in August 2020, charged Anderson and Albritton with conspiring to commit wire fraud and honest services fraud, substantive counts of wire fraud, honest services fraud, and theft concerning Federal programs. Anderson was also charged with making false statements to FBI agents, while Albritton was charged with submitting a false invoice to an insurance company for hurricane debris removal from his residence. These charges were directly related to activity that took place in the aftermath of Hurricane Michael in October 2018.
The August 2020 indictment also charged Anderson and Albritton with devising a scheme to defraud Lynn Haven and its citizens of their right to honest services of Anderson, as Mayor, and Albritton, as City Attorney. These allegations, that both Anderson and Albritton solicited and received bribes or kickbacks from City projects that they approved, are related to yesterday’s charges against Finch and Barnes. The indictment charged that Albritton drafted and implemented an agreement for trash pick-up with co-conspirator David White, owner of Erosion Control Specialists (ECS). In exchange for orchestrating the agreement, Albritton allegedly demanded kickbacks from White. Specifically, the indictment alleges that Albritton received money from ECS for each trash invoice paid by Lynn Haven.
The superseding indictment alleges that Anderson halted progress on plans to permit a city-owned site for disposal of vegetative debris, even though using the city-owned site would have saved Lynn Haven millions of dollars in disposal fees. Instead, the indictment alleges Anderson directed the City Manager to use Finch’s company for vegetative debris disposal. According to the indictment, the city of Lynn Haven paid disposal fees in excess of $2 million to Finch.
The superseding indictment also alleges that between 2015 and the present date, Anderson helped Finch win multiple multimillion-dollar contracts with the city of Lynn Haven. In August 2017, Anderson, as Mayor of Lynn Haven, signed an agreement known as the “½ Cent Infrastructure Surtax Design/Build Contract” with Finch’s construction company – Phoenix Construction Services, Inc. The agreement made Phoenix the contractor or vendor for numerous multimillion-dollar Lynn Haven infrastructure projects that would not require any bid procedure. As alleged in the indictment, Phoenix was paid a total of $5.6 million for work related to this contract.
Additionally, during the same time period, Finch was awarded a contract for the 17th Street Ditch Stormwater project. For this project, Anderson signed a 30-year promissory note on behalf of Lynn Haven to Finch that eventually totaled more than $5 million, obligating the city of Lynn Haven to pay Finch the principal amount of the note along with millions of dollars in interest. Both Anderson and Barnes voted for this arrangement and received benefits from Finch as a result.
Between April and August 2020, the superseding indictment alleges that Anderson and Finch sought to have Finch construct the rebuild of municipal buildings, despite a City Commission approved plan in place to have architects prepare designs for the rebuilding and have FEMA and insurance proceeds pay for most of a $19 million dollar project. Anderson, as Mayor, attempted to thwart that plan and have Finch instead handle the rebuild for $15 million, most of which the City would have to finance since FEMA would not approve the Finch design/build proposal. Anderson and Finch allegedly pressured the City Manager and Police Chief to support their plan to the detriment of City residents.
In return, the superseding indictment charges Anderson with accepting things of value from Finch, including travel in a private airplane, lodging aboard a private yacht, meals and entertainment. According to the indictment, Anderson and her husband also received a $106,000 motorhome from Finch in February 2018.
In the superseding indictment, Finch is alleged to have provided Barnes with $45,000 in loans, which were never repaid. As Commissioner, Barnes voted consistently to approve Finch and his projects before, during, and after receipt of the monies that he received from Finch during a two-year period. Between August 2015 and December 2017, Barnes moved, seconded, and voted on matters before the Lynn Haven City Commission favorable to Finch’s business interests, including the “½ Cent Infrastructure Surtax Design/Build Contract” and the 17th Street project.
During the time periods when the alleged crimes were being committed, neither Anderson, Albritton nor Barnes filed required quarterly gift reports documenting that they received gifts in excess of $100 according to the indictment.
The superseding indictment also charges Finch with making false statements to FBI agents when he was interviewed relating to the criminal investigation. Finch is charged with making false statements and submitting a false document to the FBI in July 2020 concerning the transfer of a motorhome to Anderson and her husband. Finch provided the FBI with a bill of sale for the motor home, falsely stating he sold the motor home to Anderson’s husband on July 6, 2018, for $70,000. Although the bill of sale indicates that $35,000 was already paid and that another $35,000 was owed “with 6 percent interest,” the indictment alleges that there is no record any money was ever paid to Finch by Anderson’s husband for the motorhome other than a $20,000 check issued to Finch by Anderson’s husband 22 months after the motorhome transfer when the federal investigation of public officials had been publicized.
This investigation was conducted by the Federal Bureau of Investigation and the Bay County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Stephen M. Kunz and Andrew J. Grogan.
If convicted, Anderson, Albritton, Finch, and Barnes each face prison terms of up to 20 years for conspiracy to commit wire fraud and honest services fraud, substantive wire fraud and honest services fraud, and mail fraud. Anderson and Albritton also face up to 10 years for theft concerning programs receiving federal funds. Both Anderson and Finch face an additional 5 years if convicted for making false statements to federal agents. Albritton faces a maximum of 20 years for submitting a false invoice to an insurance company.
Finch and Barnes made their initial appearance in court at 1:30 pm EST this afternoon before U.S. Magistrate Judge Martin Fitzpatrick, at the U.S. Courthouse in Tallahassee. Anderson and Albritton will be scheduled by the Court for an arraignment on the superseding indictment.
This indictment is a follow-up to the indictment returned in November 2019 of five defendants, including former Lynn Haven City Manager Michael White, former Lynn Haven Community Services Director David Horton, and Erosion Control Specialists owner David White, for conspiring to commit wire fraud, substantive counts of wire fraud and honest services fraud, relating to post-Hurricane Michael clean-up activities in Lynn Haven. All five of the defendants indicted in November 2019 have pled guilty to charges from the first indictment and are awaiting sentencing.
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.
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, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Former Lynn Haven City Commissioner and Developer Charged in Superseding Indictment Against Former Lynn Haven Mayor and City Attorney anderson_et_al._-_superseding_indictment.pdfFormer Long Island Rail Road Employee Charged with Falsifying Inspection ReportRead the Press Release
Earlier today, a criminal complaint was unsealed in federal court in Brooklyn charging Stuart Conklin, a former employee of the Long Island Rail Road (LIRR), with making a false entry in a railroad inspection report required to be maintained by the LIRR under United States Department of Transportation regulations. Conklin surrendered to federal authorities earlier today, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Daniel M. Helzner, Acting Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General, Northeastern Region (DOT-OIG); and Carolyn Pokorny, Inspector General for the Metropolitan Transportation Authority, announced the arrest.
“As alleged, Conklin’s false inspection report endangered passengers on a heavily used line of the Long Island Rail Road and potentially placed scores of riders in harm’s way,” stated Acting United States Attorney DuCharme. “Today’s arrest sends a strong message that this Office is committed to ensuring integrity in reports that are critical to the safe operation of the transport system.”
“This investigation demonstrates our commitment to maintaining the safety and integrity of commuter rail systems in New York and around the country,” stated DOT-OIG Acting Special Agent-in-Charge Helzner. “Working with our law enforcement and prosecutorial partners, we will continue to hold accountable those individuals who are responsible for inspections and oversight when their neglectful actions compromise the safety of the traveling public.”
“It was an unconscionable betrayal to all New Yorkers for this signal inspector to allegedly claim a critical piece of Long Island Railroad infrastructure was safe when he didn’t even bother to look at it," stated MTA Inspector General Pokorny. “This is yet another example of why the MTA must stop relying on honor systems and implement systemic reforms to verify that claimed work was actually completed. By falsifying federally required documents, this individual put many riders at risk and it is a miracle no one was critically injured because of his actions.”
As alleged in the complaint, Conklin was employed by LIRR as a Signalman and his responsibilities included performing regular inspections of rail bonds. Rail bonds are electronic jumpers around joints in the rails of a railroad track to ensure continuity of conductivity for signal currents. Conklin completed an inspection report indicating that he had inspected a particular rail bond on April 26, 2019, and that the bond had passed inspection. Video footage from a LIRR camera showed that Conklin in fact did not inspect the bond during his shift that day.
On May 25, 2019, at approximately 3 a.m., a westbound LIRR train collided with the rear of an eastbound train that had pulled onto a sidetrack to permit the westbound train to pass. A subsequent investigation by the LIRR determined that the rail bond Conklin had falsely indicated he had inspected on April 26, 2019, was broken and was the cause of the derailment. Conklin submitted a handwritten letter of resignation six days after the derailment.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charge, Conklin faces up to two years in prison.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Turner Buford is in charge of the prosecution.
The Defendant:
STUART CONKLIN
Age: 63
Magnolia, TexasE.D.N.Y. Docket No. 21-MJ-329
Former Evansville Mental Health Counselor SentencedRead the Press Release
Evansville – Acting U.S. Attorney John Childress announced today that Barbara B. Witte, 74, of Evansville, Indiana, was convicted of felony health care fraud and sentenced to two years of federal probation by U.S. District Judge Richard L. Young. Witte was also ordered to pay $186,347.55 in restitution and a $50,000 fine.
“Health care fraud harms the entire healthcare system and those that need the care from it,” said Childress. “This office will continue to work with our law enforcement partners to investigate and prosecute those who do their best to undermine that system.”
Witte was a licensed mental health counselor. She provided counseling services for patients in Evansville and Vanderburgh County through her business, B-One Counseling. She billed health care benefit programs, including Medicaid and Medicare, for medical services she provided.
Between January 2014 and July 2018, Witte submitted over 2,000 materially false and fraudulent claims to Medicaid and Medicare. The claims were fraudulent because Witte had not actually provided services to the patients identified in the claims.
Medicaid and Medicare processed Witte’s false claims and paid her for services she never provided. Witte’s conduct caused a loss of $146,334.51 to the Medicaid program, and $40,013.04 to the Medicare program.
This investigation was a collaborative effort between the FBI, Indiana Medicaid Fraud Control Unit, Office of Attorney General, and the U.S. Department of Health and Human Services, Office of Inspector General.
"This sentence should put others on notice that exploiting federally funded health care programs will not be tolerated and those who engage in this type of crime will be identified and held accountable,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will continue to work with our partners to protect taxpayer’s resources from those who would take advantage of such programs for their own greed.”
“Fighting fraud and protecting Hoosiers is our top priority. This criminal conviction is a win for all Indiana residents, as every dollar returned to Indiana Medicaid through this restitution is another taxpayer dollar that will go toward services for our most vulnerable,” said Indiana Attorney General Todd Rokita. “I am proud of the diligent work of our team and our federal partners to bring this case to justice.”
“Medical professionals are entrusted to provide only medically necessary services and bill for only for the services that they provide. Billing for services not rendered is fraud, pure and simple,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our partners to ensure that those who choose to submit fraudulent claims to the Medicare and Medicaid programs are held accountable.”
According to Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case for the government, Witte must pay restitution in full within thirty days.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and abuse that harm the public and the healthcare system. See U.S. Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.2.
Florida Man Charged with Federal Hate Crime for Setting Fire to ChurchRead the Press Release
WASHINGTON – A Florida man was charged with federal hate crime in Ocala.
Steven Shields, 24, of Dunnellon was charged with setting fire to and damaging the Queen of Peace Catholic Church in Ocala by a federal grand jury in Orlando, who returned an indictment against him.
According to the indictment, Shields intentionally set fire to the Queen of Peace Catholic Church on July 11, 2020. The indictment alleges that he was motivated to set this fire due to the religious character of the church. Shields is charged with one count of intentional damage to religious property, a hate crime charge that falls under the Church Arson Prevention Act, and one count of using fire to commit a felony.
If convicted, Shields faces a maximum term of 20 years imprisonment for intentionally damaging religious property. Shields faces an additional mandatory minimum of 10 years for using fire to commit a felony. He also faces up to three years of supervised release, a $250,000 fine and restitution.
The FBI, the ATF, the Florida State Fire Marshal, the Florida Bureau of Fire and Arson Explosives Investigations, the Marion County Sheriff’s Office, the Marion County Fire and Rescue Department and the Ocala Police Department conducted the investigation. Assistant U.S. Attorney Robert E. Bodnar, Jr. of the Middle District of Florida and Trial Attorney Maura White of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources about the Department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an accusation and Shields is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Florida Man Charged with Federal Hate CrimeRead the Press Release
A Florida man was charged with federal hate crime in Ocala for setting fire to a church.
Steven Shields, 24, of Dunnellon, was charged with setting fire to and damaging the Queen of Peace Catholic Church in Ocala by a federal grand jury in Orlando, who returned an indictment against him.
According to the indictment, Shields intentionally set fire to the Queen of Peace Catholic Church on July 11, 2020. The indictment alleges that he was motivated to set this fire due to the religious character of the church. Shields is charged with one count of intentional damage to religious property, a hate crime charge that falls under the Church Arson Prevention Act, and one count of using fire to commit a felony.
If convicted, Shields faces a maximum term of 20 years imprisonment for intentionally damaging religious property. Shields faces an additional mandatory minimum of 10 years for using fire to commit a felony. He also faces up to three years of supervised release, a $250,000 fine and restitution.
The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Florida State Fire Marshal, the Florida Bureau of Fire and Arson Explosives Investigations, the Marion County Sheriff’s Office, the Marion County Fire and Rescue Department and the Ocala Police Department conducted the investigation.
Assistant U.S. Attorney Robert E. Bodnar Jr. of the Middle District of Florida and Trial Attorney Maura White of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is merely an accusation and Shields is presumed innocent unless and until proven guilty beyond a reasonable doubt.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Federal jury convicts SNM gang member of murder, racketeering and firearm possessionRead the Press Release
ALBQUERQUE, N.M. – A federal jury in Albuquerque returned guilty verdicts on March 16, convicting Jody Rufino Martinez, 41, of Truchas, New Mexico, of murder, participation in a Racketeering Influenced and Corrupt Organizations (“RICO”) conspiracy, and being a felon in possession of a firearm and ammunition for conduct related to the Syndicato de Nuevo Mexico (“SNM”) prison gang. The jury acquitted Martinez on one count of witness tampering.
According to public court records, Martinez has been a member and self-identified “soldier” of the SNM prison gang since 1998. Martinez has committed numerous violent crimes on behalf of the SNM since joining the gang. These crimes included the murder of a victim on Dec. 5, 2008 in Rio Arriba County for failing to deliver drugs to an SNM gang member. On Oct. 24, 2018, Martinez knowingly possessed a firearm and ammunition when he shot a victim at a residence in Santa Fe County as retaliation for supposedly disrespecting the SNM. As a previously convicted felon, Martinez cannot legally possess a firearm or ammunition.
Martinez is currently in custody awaiting sentencing. He faces a mandatory life sentence for the murder conviction, and a sentence of up to life on the RICO conspiracy conviction.
The FBI, New Mexico State Police, Santa Fe County Sheriff’s Office and the New Mexico Department of Corrections investigated this case. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case as part of the Organized Crime Drug Enforcement Task Force program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Elk Grove Woman Pleads Guilty to Medicare Kickback SchemeRead the Press Release
SACRAMENTO, Calif. — Mariela Panganiban, 48, of Elk Grove, pleaded guilty today to conspiring with the owners of home health care agencies to pay and receive illegal kickbacks in exchange for Medicare beneficiary referrals, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Panganiban worked as the Director of Social Services at a skilled nursing facility in Roseville. In her role, Panganiban assisted Medicare beneficiaries in selecting home health care agencies following their discharge from the facility. Panganiban used her position to steer Medicare beneficiaries to home health agencies in Folsom and El Dorado Hills. In exchange for the referrals, the agencies’ owners paid Panganiban illegal cash kickbacks.
In her plea agreement, Panganiban admitted that the agencies’ owners paid her kickbacks in exchange for the referral of approximately 100 beneficiaries. Medicare paid the agencies over approximately $735,000 for services they purportedly provided to the beneficiaries. Because the agencies obtained the referrals by paying kickbacks, they should not have received any reimbursement from Medicare.
This case is a product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Troy L. Nunley is scheduled to sentence Panganiban on May 20. She faces a maximum statutory penalty of five years in prison and a fine of $250,000 or twice the gross loss or gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
East Greenwich Man Arrested on Child Pornography ChargeRead the Press Release
PROVIDENCE – An East Greenwich man was arrested on Wednesday following a court-authorized search of his home by federal Homeland Security Investigations agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force that resulted in the seizure of electronic devices that a preliminary examination showed allegedly contained images and videos of child pornography.
An investigation determined that an electronic device using an IP address assigned to the residence where John Daniel Macintyre, 32, resides, had allegedly accessed and downloaded child pornography from websites accessible via the dark web. Information that led investigators to investigate Macintyre was first provided by a foreign law enforcement agency to the FBI.
According to court documents, it is alleged that the dark web website accessed by Macintyre facilitates the sharing of child abuse materials such as images, links, and videos, with an explicit focus on indecent material depicting boys. Accessing the website on the dark web required numerous affirmative steps by the user and, to do so, Macintyre downloaded a special browser and software designed specifically to facilitate anonymous communication over the Internet.
During the court-authorized search of the residence where Macintyre resided, law enforcement seized a laptop computer, 11 digital storage hard drives, and a cellular telephone allegedly belonging to Macintyre. Several videos of child pornography were allegedly discovered during a brief forensic review of one of the devices conducted by a Rhode Island State Police Computer Forensics Analyst.
John Daniel Macintyre appeared on Wednesday before U.S. District Court Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with possession of child pornography, announced Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Macintyre was released on $10,000 unsecured bond.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Defendant Faces Federal Charges for the 2015 Murder of Sapulpa ManRead the Press Release
A man convicted in Creek County for a murder that occurred during a 2015 robbery was charged in federal court, announced Acting U.S. Attorney Clint Johnson. The defendant’s state conviction was dismissed today by the Oklahoma Court of Criminal Appeals for lack of jurisdiction.
Arnold Dean Howell Jr., 27, was charged by criminal complaint with murder in the first degree in Indian Country.
Because Howell is an enrolled tribal member and the crime occurred within the Muscogee (Creek) Nation Reservation, the state conviction was vacated and ordered dismissed.
According to federal court documents, Howell and his sister Katherine Freeman, conspired to rob the victim at his home in Sapulpa. Investigators allege that during the robbery, Freeman held the victim at gunpoint with one of the victim’s rifles then Howell directed her to get a knife from the kitchen. He is alleged to have repeatedly stabbed the victim. When the knife broke, another was retrieved, and Howell continued his attack causing the victim’s death. Howell and Freemen stole, among other things, the victim’s vehicle, wallet, watch, two rifles, and laptop.
The victim was found deceased the next day during a welfare check, and his vehicle was later discovered abandoned in Tulsa.
The Oklahoma State Bureau of Investigation, Creek County Sheriff’s Office, Sapulpa Police Department and FBI are the investigative agencies. Assistant U.S. Attorneys Cymetra M. Williams and Christopher M. Kelly are prosecuting the case.
This matter will proceed in U.S. District Court in Tulsa, where the criminal complaint is currently pending. A complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal grand jury within 30 days. Once a grand jury returns an indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Court of Appeals upholds Evans Landscaping convictionsRead the Press Release
CINCINNATI – The United States Sixth Circuit Court of Appeals issued a ruling today affirming the convictions of Cincinnati businessman Doug Evans and his landscaping company.
Evans and Evans Landscaping Inc. were tried and convicted in December 2018 of two counts of conspiracy to commit wire fraud and three counts of wire fraud arising out of their scheme to secure government contracts through a shell company. After four weeks of trial, the defendant and his company were found guilty on all counts and convicted of defrauding the City of Cincinnati and other public entities by fraudulently obtaining contracts reserved for small and minority businesses.
In January 2020, Evans was sentenced to 21 months in prison. Evans Landscaping was ordered to pay half a million dollars in fines.
In his appeal, Evans challenged the denial of his motion to suppress evidence, the District Court’s handling of various trial issues, and the jury instructions provided at the end of the trial.
During pretrial proceedings, Evans moved to suppress evidence obtained pursuant to search warrants, arguing that it violated his Fourth Amendment rights. The District Court denied the motion and the Court of Appeals upheld that denial today.
Evans also argued that the United States’ case “was overwhelmingly built on emails” that were hearsay. The Court of Appeals upheld that the emails were actually exempt from the hearsay rules as they were business records.
The defense also attempted to appeal conviction based on specifics of the jury instructions given at the conclusion of trial; however, the Court of Appeals rejected this argument because the defense did not object to the instructions at the time they were presented, and because, in any event, “the evidence overwhelmingly established that defendants joined the conspiracy and specifically intended to further its purpose.”
Evans is scheduled to report next month to serve his prison sentence.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced today’s appellate opinion. Appellate Chief Mary Beth Young represented the United States on appeal. Assistant Deputy Criminal Chief Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter prosecuted the underlying criminal case.
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Columbus man charged with hate crime for making anti-Semitic threats to neighbors, breaking their windowRead the Press Release
COLUMBUS, Ohio – A Columbus man has been charged by criminal complaint in federal district court with criminally interfering with the right to fair housing.
Douglas G. Schifer, 65, allegedly used force and the threat of force to intimidate his neighbors because of their religion.
According to documents filed in connection with the complaint, Schifer shouted anti-Semitic slurs, obscenities and other derogatory language about their religion at his neighbors on Nov. 7, 2020. Court documents also allege he broke one of their windows and spat on one of the neighbors.
In his alleged threats, Schifer stated he would shoot the neighbors, poison their dog and burn down a garage they were remodeling into an apartment. He allegedly made reference to gassing Jewish people and burning them in ovens.
If convicted, Schifer would face up to one year in prison and a possible fine of up to $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Interim Chief Michael Woods announced the charges. Assistant United States Attorneys Peter K. Glenn-Applegate and Heather A. Hill, and Trial Attorney Cameron Bell of the Department of Justice’s Civil Rights Division are representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Columbia Woman Sentenced to More Than 15 Years in Federal Prison for Enticing a Minor to Engage in Sexual ActivityRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” 26, of Columbia, was sentenced to more than 15 years in federal prison, after pleading guilty in February 2019 to using a facility of interstate commerce to entice a minor under the age of 18 to engage in sexual activity.
Cuyler’s co-defendant, Donnell Salethian Woodard, a/k/a “Tank,” 33, also of Columbia, was sentenced February 24, 2021, to 25 years imprisonment, after pleading guilty to conspiracy to sex traffic minors and benefiting from sex trafficking of minors. Woodard was also ordered to pay restitution to the minor victims, register as a sex offender, and will be on supervision for 15 years following service of the term of imprisonment. There is no parole in the federal system.
“The cruelty of sex trafficking is hard to comprehend, and it must be punished severely,” said Acting U.S. Attorney DeHart. “This sentence closes the door on the horrific crimes committed by these defendants and demonstrates our commitment to stopping sex trafficking in South Carolina.”
“Today’s sentencing, along with the previous sentencing of Donnell Woodard, has brought an end to a local child sex trafficking operation,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge. “These hideous crimes are frequently uncovered by local law enforcement. We thank the Lexington Police Department and the West Columbia Police Department for their vigilance and dedication as they worked alongside the FBI to bring these individuals to justice. We ask that if anyone sees any indication that a child is being trafficked, they report such to their local law enforcement agency or the FBI.”
Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website. An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Cuyler and Woodard. Officers learned that the minor was 16 years old and a runaway. When Cuyler and Woodard returned to the local motel to pick the minor up, officers placed them both under arrest. The investigation led to another nearby motel where the second minor, who was also involved in the illegal venture, was located. The investigation further revealed Woodard and Cuyler were using a cell phone to post photographs and advertisements for commercial sex with the minors on a website and taking a portion of the proceeds. The investigation further showed that the minors had sometimes up to ten (10) meetings per day at various hotel rooms rented by Woodard.
At sentencing, Cuyler received an obstruction of justice enhancement for 2017 jail phone calls in which she attempted to have another minor assault the minor victims in retaliation for cooperating with law enforcement. Cuyler also lost her reduction for acceptance of responsibility for pleading guilty after she assaulted another inmate inside the jail, which resulted in a state assault charge.
During the sentencing, United States District Court Judge J. Michelle Childs also ordered Cuyler to make restitution to the victims involved. Following service of her 188-month term of imprisonment, Cuyler will be on supervised release for 15 years and will be required to register as a sex offender.
The case was investigated by the FBI, the Lexington Police Department, and the West Columbia Police Department. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Clarence Man Going to Prison for Possessing Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Gerace, 41, of Clarence, NY, who was convicted of possessing firearms in furtherance of drug trafficking crimes, was sentenced to serve 60 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that between 2006 and January 28, 2019, the defendant was involved in the possession and distribution of marijuana, THC, cocaine, hydrocodone, and other federally controlled substances. On January 28, 2019, a federal search warrant was executed at the Gerace’s residence on Michael Douglas Drive in Clarence. Homeland Security Investigation special agents recovered quantities of marijuana and THC intended for distribution by the defendant, as well as 14 firearms and numerous rounds of ammunition for the various firearms. The firearms and ammunition were located in close proximity to the controlled substances, and also in close proximity to $103,360 in U.S. currency. As part of his plea, Gerace admitted that the firearms protected him, his proceeds, the location where he stored his controlled substances and currency, and the controlled substances, which had a conservative street value of approximately $98,850. The defendant also agreed to forfeit $103,360 as well as the firearms and ammunition seized from him on January 28, 2019.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Amherst Police Department, under the direction of Chief John Askey; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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Cardiologist Dinesh Shah Pays $2 Million to Resolve False Claims Act Allegations Relating to Excessive TestingRead the Press Release
DETROIT - An Oakland County Cardiologist, Dinesh M. Shah, M.D. and his practice, Michigan Physicians Group, P.C. (MPG) have paid the United States $2 million to resolve allegations that they violated the False Claims Act by knowingly billing federal healthcare programs for diagnostic testing that was either unnecessary or not performed. MPG is a Michigan professional corporation with primary offices located in Berkley and Livonia, Michigan, and with administrative offices, labs, and testing sites at other locations within the metropolitan Detroit area. Shah is a practicing cardiologist and the sole owner of MPG.
This settlement resolves allegations that from 2006 to 2017, Shah and MPG knowingly billed government programs, including Medicare, Medicaid, and TRICARE, for unnecessary diagnostic testing. The investigation focused on the provision of a group of diagnostic tests, which included Ankle Brachial Index and Toe Brachial Index tests, known as ABI/TBIs, which were routinely performed on patients without first being ordered by a physician and without regard to medical necessity. The ABI compares blood pressure in the ankle to blood pressure in the arm to determine how well blood is flowing from the heart to the feet. The TBI is an additional measure to assess blood pressure readings at the toes.
The investigation also focused on the provision of unnecessary Nuclear Stress Tests. The United States alleged that Shah was routinely ordering, and MPG was providing, unnecessary Nuclear Stress Tests to some patients. During a Nuclear Stress Test, a small amount of radioactive tracer is injected into a vein, after which it is detected by a special camera that produces images used to evaluate blood flow to the heart.
This settlement comes after a years-long investigation by the Office of Inspector General for the United States Department of Health and Human Services and the Defense Health Agency acting on behalf of the TRICARE Program. The State of Michigan Attorney General’s Office participated in the settlement as the State of Michigan was a named plaintiff in one of the cases.
“Subjecting patients to unnecessary testing in order to fill one’s pockets with taxpayer funds will not be tolerated. Such practices are particularly concerning because overuse of some tests can be harmful to patients,” said Acting U.S. Attorney Saima Mohsin. “With these lawsuits and the accompanying resolution, Dr. Shah and Michigan Physicians Group are being held to account for these exploitative and improper past practices.
“Physicians commit to providing and billing for only medically necessary services when they choose their profession and participate in federally funded health care programs,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & human Services, Office of Inspector General – Chicago Region. “To deviate from that commitment and potentially place their patient’s health and safety at risk as well as limited tax payer resources is unacceptable. The OIG will continue to work with our federal, state and local partners to ensure that patients and tax payer dollars are protected.”
In addition to the civil settlement agreement, Dinesh Shah and MPG simultaneously entered into an Integrity Agreement with the Office of Inspector General for the United States Department of Health and Human Services, which provides for some oversight of Shah and MPG’s billing practices for a three-year period.
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by two separate whistleblowers, Arlene Klinke and Khrystyna Mala, both former employees of MPG. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery.
The matter was handled by Assistant United States Attorneys Leslie Wizner and Lynn Dodge.
The two qui tam cases are docketed as United States ex rel. Arlene Klinke v. Dinesh Shah, M.D. and Michigan Physicians Group, Civil Action No. 10-cv-10726 (E.D. MI), and United States and State of Michigan ex rel. Khrystyna Mala v. Michigan Physicians Group, P.C. Dinesh Shah, M.D. Alka Shah, M.D., Rita Shah, M.D. and Tatiana Shcherbich, Civil Action No. 12-cv-10732 (E.D. MI).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
California Man Charged with Conspiring to Launder Proceeds of Fraud Schemes Targeting New Jersey Law Firm and SBA LoansRead the Press Release
NEWARK, N.J. – A California man has been charged with laundering money that originated from fraudulently obtained loans from the U.S. Small Business Association and from a business email compromise scheme that targeted a law firm based in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Eric Bullard, 59, of Los Angeles, California, is charged by complaint with one count of money laundering conspiracy. Bullard was taken into custody yesterday in California on an unrelated warrant for a violation of federal supervised release. Bullard is scheduled to appear by videoconference before U.S. Magistrate Judge Alexander MacKinnon at 1:00 p.m. PDT.
According to documents filed in this case and statements made in court:
In June 2020, Victim 1 communicated via email with a law firm in New Jersey that was helping Victim 1, a resident of Bergen County, New Jersey, with a real estate transaction. One of the law firm’s email accounts was compromised and someone purporting to be emailing on behalf of the law firm sent instructions to Victim 1 to wire approximately $560,000 into an escrow account under the name “Eric’s Commercial LLC.” Victim 1 wired approximately $560,000 into a business bank account controlled by Bullard. Victim 1 did not intend for the money to be transferred to Bullard and sent the wire transfer to Bullard’s account under the belief that the wire instructions had come from the New Jersey law firm.
Prior to receiving the $560,000 wire transfer, the Eric’s Commercial LLC bank account had a beginning statement period balance of approximately $40. Shortly after the $560,000 was transferred into the Eric’s Commercial LLC bank account, on the same day the wire transfer posted to his account, approximately 10 cash withdrawals were made from the account totaling $96,275. Surveillance footage obtained from the bank shows Bullard entering the bank to make withdrawals from the account. The same day, three large wire transfers sourced from the transfer from Victim 1 were executed from the Eric’s Commercial LLC bank account to other bank accounts, including an account controlled by a conspirator.
In addition to laundering of the proceeds from the business email compromise, Bullard also obtained and laundered funds from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EDIL) program. In July 2020, Bullard received into a business bank account that he controlled $51,395 from an SBA EDIL loan intended for a pharmacy company with a listed location in Idaho and $143,100 from an SBA EDIL loan intended for a pharmacy company with a listed location in Colorado.
Money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transfer, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Branson Performer Pleads Guilty to Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A performer at a Branson, Missouri, theater pleaded guilty in federal court today to stealing more than $85,000 from hundreds of his own audience members who donated to his non-existent charity for foster children.
“For several years, this performer took advantage of his own audiences by pulling at their heartstrings while stealing from their pockets,” said Acting U.S. Attorney Teresa A. Moore. “He cynically and greedily victimized donors who falsely believed they were helping foster children. There’s no way to know how much cash was actually stolen, but we intend to seek restitution for the victims law enforcement has identified, as well as prison time and a hefty fine.”
James Patrick Garrett, 65, of Branson, waived his right to a grand jury and pleaded guilty to a federal information that charges him with one count of wire fraud.
“Today’s plea is a reminder that the United States Secret Service is committed to aggressively investigating and pursuing those who commit financial crimes,” said Brandon C. Bridgeforth, Special Agent in Charge, U.S. Secret Service Kansas City Field Office. “This defendant used his theater and platform as a performer, to prey on the generosity of those attending his performances. The defendant took advantage of these people who thought they were helping children in need, and then defrauded them. This investigation is a testament to the strong partnership between the Secret Service, the Branson, Mo., Police Department and the U.S. Attorney’s Office.”
“The Branson Police Department is always looking out for the best interest of our residents and visitors,” said Branson Police Chief Jeff Matthews. “We initiated this investigation and presented it to our federal partners at the United States Secret Service last year. They adopted the case and were successful in presenting it to the U.S. Attorney for prosecution. These kinds of relationships and partnerships help us protect our community and the values Branson is known for.”
Garrett performed the John Denver Tribute at the Branson IMAX. The show, which Garrett performed approximately six days a week throughout the year, consists of musicians covering songs made popular by the late John Denver and other classic country artists.
On Nov. 3, 2012, Garrett created Diamond Jym Ranch, Inc., with himself as president and a member of its board of directors. According to its articles of incorporation, Diamond Jym Ranch was ostensibly created for “the purpose of establishing homes for displaced or homeless boys or girls, to provide training and education for such children, to provide them with food, lodging, and their well being.”
By pleading guilty today, Garrett admitted that he victimized his audience members through a fraud scheme that lasted from March 2016 to August 2020. At the conclusion of each John Denver Tribute, Garrett solicited members of his audience to donate to Diamond Jym Ranch. Garrett falsely told audiences that he had created homes for foster children in Branson and Texas. Garrett told audience members their donations to Diamond Jym Ranch would go to support the foster homes and to support foster children. None of those claims were true, and Garrett knew they were false at the time he made the representations.
Garrett placed a donation box at the exit of the theatre where he performed the John Denver Tribute. Hundreds of audience members left their donations in the donation box. Garrett also directed audience members who wanted to make monthly or regular donations to Diamond Jym Ranch to mail their checks to his home address in Branson.
Garrett admitted that he used the money that he raised for his personal living expenses, which included frequently dining out at Branson restaurants, credit card debt, rent, taxes, mortgage payments, health insurance, and automobile insurance.
In total, over the course of many years, Garrett induced hundreds of John Denver Tribute audience members to make financial donations to Diamond Jym Ranch for the purpose of supporting foster children and homes for foster children. Garrett’s scheme to defraud resulted in a collective loss to his victims of at least $85,525.
The specific charge to which Garrett pleaded guilty today involves a $1,000 contribution made by an audience member identified in court documents as “D.C.,” a resident of Illinois. Garrett used D.C.’s donation for his own personal purposes and not to the benefit of foster children.
Under federal statutes, Garrett is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by the U.S. Secret Service and the Branson, Mo., Police Department, as part of the U.S. Secret Service Financial Crimes Task Force.
Blount County Man Convicted of Child Exploitation ChargesRead the Press Release
KNOXVILLE, Tenn. – On March 17, 2021, a federal jury convicted a registered sex offender, Tywan Montrease Sykes, 45, of Louisville, Tennessee, of using a minor to produce child pornography, enticement of a minor for sex, committing those offenses while being required to register as a sex offender, and possession of child pornography. As a result of the convictions, the defendant is subject to a prison sentence of 25 years up to life. Honorable Thomas A. Varlan, United States District Judge, presided over the trial. Sentencing is scheduled for July 29, 2021.
The investigation began after Facebook notified the National Center for Missing and Exploited Children ("NCMEC") that Sykes was soliciting a 15-year-old girl for sex and child pornography with messages he sent to the girl through Facebook. NCMEC notified the Knoxville Police Department’s Internet Crimes Against Children unit ("KPD-ICAC"), which immediately contacted the local Department of Children’s Services office to help identify the girl and ensure her safety. KPD-ICAC arrested the defendant within 48 hours after the minor was interviewed. Federal search warrants were used to obtain the defendant’s and the victim’s Facebook communications and to search the defendant’s phone, which revealed substantial evidence that was used at trial to convict Sykes.
This was the first federal jury trial completed in the Eastern District of Tennessee since the expiration of the Court’s standing order suspending jury trials due to the COVID-19 pandemic.
The investigation was led by Knoxville Police Department officers who are designated as Task Force Officers with Homeland Security Investigations.
Assistant U.S. Attorneys Matthew T. Morris and Gretchen Mohr represented the United States in court.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.projectsafechildhood.gov.
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Bergen County Man Admits Decade-Long $80 Million Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted orchestrating a long-running bank and securities fraud scheme, which led to large-scale losses for financial institutions and investors, Acting U.S. Attorney Rachael A. Honig announced.
Seth Levine, 52, of Teaneck, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit bank fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
Levine was the founding partner, owner, and managing member of Norse Holdings, which was the parent company to more than 70 subsidiary companies. Each of the subsidiary companies owned one or more multifamily buildings, located primarily in New Jersey. From 2009 through August 2019, Levine directed a scheme to fraudulently refinance the multifamily properties by providing materially false information to financial institutions about the rents collected, the number of apartments leased, the expenses, and the true owners of the properties. Levine and others provided lenders fake documents, including falsified leases that created the appearance that vacant spaces were occupied and that overstated the rent paid by tenants; fake personal financial statements; fake expense documents; and fake operating agreements that misrepresented ownership interests in the multifamily properties. Levine also forged signatures on some of the fraudulent documents submitted to lenders. As a result of the fraudulent refinances, Levine received cash payouts from the lenders, which Levine and others used for their own enrichment and to continue the fraud scheme.
Many of the lenders who approved mortgages based on the false statements of Levine and others in turn sold those mortgages to the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae). Because the refinances were obtained with fraudulent data regarding the properties’ income and expenses, the multifamily properties were overvalued and rents and other income from the properties did not cover the mortgage payments and other expenses associated with the properties. To cover the shortfalls, Levine obtained additional cash-out refinances, thereby increasing his total debt incurred. In total, Levine controlled at least 70 multifamily properties, comprising approximately 2,500 apartments. The outstanding balance of the fraudulently obtained mortgages on the multifamily properties was more than $150 million, including 40 mortgages held by Freddie Mac with an outstanding loan balance of approximately $103 million. The bank fraud conspiracy resulted in losses to victim lenders of at least $65 million.
While defrauding the lending financial institutions, Levine also carried out a securities fraud scheme to defraud investors in the multifamily properties. He solicited investors to invest in the multifamily properties based on materially false statements and promises about the condition of the properties and the use of investor funds. Levine represented to investors that his conduct would be limited by an operating agreement. However, after Levine acquired the multifamily properties, he violated representations made to the investors, including by selling off portions of Levine’s ownership interest in the properties without investor consent, bringing on additional investors without consent, and refinancing the multifamily properties without investor consent. Levine provided fraudulent documents to investors, such as operating agreements that overstated Levine’s personal investment in the multifamily properties and documents bearing signatures forged by Levine. He also co-mingled investor funds and used the funds in violation of representations to investors, by using investor money to support other multifamily properties, make payments to other investors, and further the fraud. The securities fraud victims lost more than $15 million.
The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud count is punishable by a maximum of 20 years in prison and a $5 million fine. Sentencing is scheduled for July 26, 2021.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge, Robert Manchak, with the investigation leading to today’s guilty plea. The U.S. Securities and Exchange Commission has filed a civil complaint against Levine today based on allegations underlying the securities fraud charge.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the
Economic Crimes Unit and Special Assistant U.S. Attorney Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Belle Man Sentenced to Seven Years in Prison for Dealing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – A Belle man was sentenced today to seven years in prison and three years of supervised release for distribution of methamphetamine. Justin Lee Davis, 27, was indicted by a federal grand jury in September 2020 and charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine.
According to documents filed in the case and statements made in court, Davis sold approximately four ounces of methamphetamine to a confidential informant in the parking lot of a retail establishment near Belle on February 22, 2019. Law enforcement officers were able to observe Davis meeting with the confidential informant during the transaction. Following the transaction, Davis was followed back to his residence. A search warrant was executed at that residence four days later and Davis was located in a bedroom along with approximately 2.4 pounds of additional methamphetamine, digital scales and packaging materials.
The Drug Enforcement Administration (DEA) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00164.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to distributing cocaine base in Raleigh County. Greg Anthony Waters, 52, was indicted by a federal grand jury in November 2020.
Pursuant to the plea agreement and statements made in court, on September 20, 2020, Waters sold approximately one ounce of cocaine base to a person that was working with law enforcement as a confidential informant. Waters admitted to meeting the informant near a restaurant he owned in Beckley to sell the drugs. Waters also admitted to selling cocaine or cocaine base on several other occasions. Each transaction occurred within the Southern District of West Virginia. As further part of the plea, Waters agreed to forfeit cash in the amount of $2,481 and to have a money judgment entered in the amount of $5,000, the total of which represents the proceeds of his illegal drug trafficking. Waters also agreed to forfeit a 2015 Chevrolet Silverado truck which was used to facilitate the distribution of controlled substances.
Waters faces up to 20 years in federal prison when he is sentenced on July 2, 2021.
The Federal Bureau of Investigation and the Beckley/Raleigh County Drug and Violent Crime Unit, which is comprised of officers from the Raleigh County Sheriff’s Department, the Beckley Police Department and the West Virginia State Police, conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge Frank W. Volk presided over the hearing.
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. 5:20-cr-00191.
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Beckley Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to attempted production of child pornography. Douglas Patrick Humphrey, 32, was charged by a single-count Information in February 2021.
According to the plea agreement and statements made in court, Humphrey admitted that on August 25 and 26, 2020, he communicated with a 15-year-old female via Snapchat. During that conversation he asked her to meet him to engage in sexual activity and also asked her to produce and send a video of herself engaged in sexual intercourse with another man. Humphrey admitted that in July 2020 he had made a similar request of the minor female and had received a video depicting her engaged in sexual activity. Humphrey was arrested on August 26, 2020, when he arrived at the location where he had arranged to meet the minor.
Humphrey faces at least 15 years and up 30 years in prison when he is sentenced on July 2, 2021.
The Raleigh County Sheriff’s Office and the FBI Child Exploitation and Human Trafficking Task Force handled the investigation. United States District Judge Frank W. Volk 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. 5:21-cr-00005.
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Anchorage Man Sentenced to Nine Years in Federal Prison for Stalking and Threatening Former OCS Caseworker, Attempted Extortion of FBI AgentRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Wilson announced that a man has been sentenced to federal prison for stalking an Office of Children’s Services caseworker, and threatening an FBI Agent, while serving a 10-year sentence in Arizona.
Peter Lee Norris (aka Peter Lee Bjorn Norris, aka Bjorn Erik Haapaniemi,) 56, originally of New York, was sentenced today, by U.S. District Judge Ralph R. Beistline to serve 9 years in prison, followed by three years of supervised release.
According to court documents, in July 2008, the Alaska Office of Children’s Services began investigating a report of suspected sexual abuse of minor children involving Norris. In July 2010, while the State of Alaska Child in Need of Aid (CINA) case was ongoing, Norris was indicted and sentenced to 10 years in Arizona for unlawful sexual conduct he committed against a different child.
While Norris was serving the 10-year sentence in Arizona, he sent many threatening letters to the Alaska Office Of Children’s Services (OCS), addressed to the former caseworker who investigated the report of suspected sexual abuse of minor children in Alaska. Norris was apparently motivated to take revenge on the caseworker because she had shared information with police and the Court in Arizona. Norris believed that the caseworker’s information resulted in him serving additional time in the Arizona case. Norris sent at least 22 letters over a period of nearly nine years, even after the caseworker was no longer employed with OCS. The letters included demands and threats to harm the victim and others, cyberstalk the victim, hack the victim’s digital files, hack federal systems, State of Alaska OCS and medical and law enforcement files. The victim sought a protective order and Norris violated the order.
During the course of the investigation, Norris sent a letter to an FBI Special Agent in Alaska in which he attempted to extort special treatment regarding his upcoming sex-offender probation in Arizona. Notably, the threat related if his demands were not met, he would “order others to issue mayhem” and noted that he would be “running amok in Homeland Security gunsights.”
At sentencing, Judge Beistline noted the seriousness of the crime, remarking that Norris committed the offenses to damage dedicated public servants who were just doing their jobs. The Court found that Norris was a danger to the community.
“Federal law enforcement will protect those public servants who protect our community’s children” said Acting United States Attorney Bryan Wilson.
The Federal Bureau of Investigation (FBI) and United States Postal Inspection Service (USPIS) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Anchorage Man Indicted on Child Pornography ChargesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Wilson announced today that Michael Whitmore, 27, has been indicted on charges of possession and distribution of child pornography. Whitmore was arrested by the FBI on March 10, 2021.
The indictment alleges that on or about March 3, 2021 Whitmore was observed by Australian law enforcement distributing child pornography images on the WICKR social media application. The child pornography images allegedly contained prepubescent minors, or minors who have not attained 12 years of age. Australian Law Enforcement notified the FBI’s Child Exploitation Task Force who initiated an investigation. The investigation allegedly linked Whitmore through his username and associated information which lead to the identification of Whitmore. On March 10, 2021, the FBI executed a federal search warrant, which disclosed Whitmore possessed and accessed child pornography, including images involving prepubescent minors.
If the public has any further information regarding Whitmore,
please contact Anchorage FBI at (907) 276-4441.
If convicted, Whitmore faces a statutory minimum of five years in prison and guideline sentence of more than 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Kyle Reardon.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Acting United States Attorney for the District of Columbia Channing D. Phillips’ Statement on Hate- and Bias-Related Crimes against Persons of Asian DescentRead the Press Release
WASHINGTON - As the District of Columbia and this nation have faced the unprecedented public health emergency posed by the COVID-19 pandemic, we also have witnessed, in some areas across our nation, an unsettling rise in crime that has targeted Asian-Americans. These acts are reprehensible and tear at the fabric of our society. Hate and bias-related crime have no place in our community, and any attack on Asian-Americans is an attack on us all. While we are making sacrifices and living and working in unusual conditions, we must continue to act responsibly and with compassion towards one another. The U.S. Attorney’s Office for the District of Columbia stands in solidarity with the community in seeking to root out hate- and bias-related crime.
The United States Attorney’s Office urges the community to be vigilant and to report any suspected hate- or bias-related crime to the Metropolitan Police Department (MPD) by dialing 9-1-1 in an emergency or contacting the MPD Hate Crimes Hotline by calling (202) 727-0500 or e-mailing [email protected].
29 Alleged Penn North Drug Dealers Facing Federal IndictmentsRead the Press Release
Baltimore, Maryland – A 10-month investigation by the Baltimore OCDETF Strike Force into violence and drug dealing in the area of Pennsylvania and North Avenues in West Baltimore has led to six federal indictments charging a total of 29 defendants for conspiracy, drug distribution, and firearms charges. The defendants are allegedly members of six different drug crews, each using a different name for their drugs, operating in a several block area in Penn North. The indictments remained sealed until today, as the majority of the defendants have now been arrested and had their initial appearances. Twenty-three defendants have been arrested. Five defendants are fugitives and a sixth defendant absconded from pretrial release.
The indictments were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Secretary Robert Green of the Maryland Department of Public Safety and Correctional Services.
Acting United States Attorney Jonathan F. Lenzner stated, “All too often, guns and drugs go hand in hand—and both tragically are killing a lot of people in Baltimore. The Strike Force will continue to target areas where violence is fueled by armed drug dealers. We are committed to working with our law enforcement partners to get both the guns and the drug dealers off of our streets and to reducing violent crime in our neighborhoods. The indictments we are announcing today reflect our commitment toward achieving that goal.”
“The Baltimore Police Department is committed to working alongside our law enforcement partners to target those involved in the illegal drug trade and those illegally carrying firearms in our city,” said Baltimore Police Commissioner Michael Harrison. “These indictments represent the great collaborative work that our agencies are doing to combat drug trafficking in some of our most challenged neighborhoods. We know that drug trafficking fuels violence in our communities and we must remain vigilant in combating these criminals who continue to contribute to overdose deaths in our city.”
“This case is another example of the Baltimore County Police Department’s commitment to work in partnership with our federal counterparts to aggressively dismantle those criminal enterprises that threaten the safety of our communities,” said Baltimore County Police Chief Melissa Hyatt.
Over the course of the investigation, law enforcement seized approximately $935,000 in cash, $70,000 worth of luxury jewelry, including Rolex watches, four kilograms of fentanyl—enough to kill 200,000 people, as well as quantities of cocaine and heroin, and nine firearms.
The first indictment (20-0268), returned on August 25, 2020, charges Wesley Clash, age 38; Dashelle Claridy, age 24; Vincent Davis, age 41; Myesha Jones, age 25; and Kevin Riggins, age 26, all of Baltimore, with conspiracy to distribute fentanyl, and crack and powder cocaine using the name “Dirty Sprite,” beginning no later than July 2019. Jones, Clash, and Claridy are also charged with possession with intent to distribute controlled substances. Kevin Riggins is a fugitive and Vincent Davis absconded from his pretrial release.
The second indictment (20-0269) was also returned on August 25, 2020. The 12-count indictment charges Jerold Gilliam, age 40; Akeem Ross, age 29; Charles Bond, age 25; Trevor Connors, age 50; Gilbert Conway, age 44; James Meekins, age 35; Isaiah Timms, age 28; Marquese Ward, age 30; and Welton Whittington, Jr., age 30, all of Baltimore for their participation in a conspiracy to distribute fentanyl and crack cocaine, using the name “Bullseye,” beginning in August 2019. Ross, Bond, Meekins Connors, and Gilliam are also charged with possession with intent to distribute controlled substances. Ward, Ross, Connors are charged with being felons in possession of a firearm and Ross and Connors are also charged with possession of a firearm during and in relation to a drug trafficking crime. Akeem Ross is a fugitive.
Five defendants are charged in a nine-count indictment (20-0385) that was returned by a federal grand jury on November 10, 2020. Ronald Green, age 47; Kinnard Riggs, age 46; Malik Gilmore, age 25; Edward Baker, age 36; Clifton Bryant, age 51; and Lawrence Nichols, age 50, all of Baltimore, allegedly participated in a conspiracy to distribute and possess with intent to distribute fentanyl using the name “Special,” from August 2019 through at least December 2019. Green, Riggs, Bryant, and Nichols are also charged with possession with intent to distribute controlled substances. Green and Riggs are each charged with possession of a firearm by a prohibited person and with possession of a firearm during and in relation to a drug trafficking offense. Lawrence Nichols is believed to be deceased.
A federal grand jury indicted (20-0386) Jerome Willingham, age 33, of Baltimore on November 10, 2020, charging him with conspiracy to distribute and possess with intent to distribute fentanyl that Willingham branded as “Lamar Jackson,” beginning in at least January 2020. Willingham is also charged with possession with intent to distribute controlled substances, possession of a firearm by a prohibited person, and possession of a firearm in furtherance of a drug trafficking offense. Willingham is a fugitive.
Torico Reaves, age 48; Michael Bowles, age 57, Shawn Jackson, age 48; Lafonte Johnson, age 40; Robert Ross, Jr., age 54; Albert Shields, age 51; and Kevin Toppin, age 33, all of Baltimore, are charged in a five-count indictment (20-0443) with conspiracy to distribute fentanyl between at least October 2019 and April 2020, using the brand name “Master P” for their fentanyl. The indictment was returned on December 9, 2020. Reaves, Toppin, Bowles, Jackson, and Ross are also charged with possession with intent to distribute controlled substances. Jackson is a fugitive.
Finally, Jacquez Maith-Bost, age 29, of Baltimore was indicted (20-0440) on December 9, 2020, charged with possession with intent to distribute heroin and crack cocaine on March 11, 2020, using the name “D. Rose”. Maith-Bost is also charged with possession of a firearm by a prohibited person and with possession of a firearm in furtherance of a drug trafficking offense.
The defendants face a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for the conspiracy; a maximum of 20 year in federal prison for each count of possession with intent to distribute controlled substances; a maximum of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in federal prison for possession of a firearm by a prohibited person. All of the defendants have had an initial appearance. Gilliam, Bond, Connors, Conway, Ward, Riggs, and Shields were ordered to be detained and the remaining defendants were released with conditions, under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. 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.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Baltimore Police Department, the Baltimore County Police Department, and the Maryland Department of Public Safety and Correctional Services for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Charles D. Austin and James T. Wallner, who are prosecuting the case.
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13 Defendants Indicted in $5.4 Million Health Care Fraud ConspiracyRead the Press Release
Acting United States Attorney W. Anders Folk today announced charges against 13 defendants in a multi-million dollar health care fraud conspiracy. The defendants made their initial appearances yesterday before Magistrate Judge David T. Schultz in U.S. District Court.
According to the allegations in two separate indictments, 13 defendants are charged with participating in a scheme to defraud the Medicaid program. The scheme involved mental health practitioners and interpreters who were associated with Live Better, LLC, a patient services company with offices in Roseville and Minneapolis, and Multicultural Counseling Clinic (“MMCC”), a counseling clinic with offices in St. Paul, Brooklyn Park, and Burnsville. As part of the scheme, the health practitioners and interpreters would submit fraudulent claims through their respective employers for services purportedly provided to Medicaid recipients. In reality, neither the mental health services nor the ancillary interpretation services were rendered. Some defendants participated in this scheme for nearly three years. As a result of the false and fraudulent claims, the Medicaid program paid Live Better and MMCC a total of more than $5.4 million.
The two separate indictments charge defendants OKACH OKWAYOO KWOT, 51, ELIJAH S. KOLLIE, 62, ABDIRAHMAN YONIS, 33, ALPHONSO VASCO JOHNSON, 58, ILYAS ABDI FARAH, 38, ANAB ARTAN AWAD, 50, AYAN ALI MOHAMUD, 41, ELIFAA HENRY KINYAIYA, 45, VARBAR B. KANNEH, 30, ESKENDER M. YOUSUF, 39, HODAN ABDI HASHI, 52, OMAR ALI OSMAN, 28, and UBAH HASSAN HAGI, 43, with conspiracy and wire fraud.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
This case is being prosecuted by Assistant U.S. Attorney Angela M. Munoz.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
OKACH OKWAYOO KWOT, 51
Columbia Heights, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 3 counts
ELIJAH S. KOLLIE, 62
Robbinsdale, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ABDIRAHMAN YONIS, 33
Bloomington, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ALPHONSO VASCO JOHNSON, 58
Oakdale, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ILYAS ABDI FARAH, 38St. Louis Park, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ANAB ARTAN AWAD, 50
Plymouth, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
AYAN ALI MOHAMUD, 41
St. Paul, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ELIFAA HENRY KINYAIYA, 45
Brooklyn Park, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
VARBAR B. KANNEH, 30
New Brighton, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ESKENDER M. YOUSUF, 39
Maple Grove, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
HODAN ABDI HASHI, 52
Woodbury, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
OMAR ALI OSMAN, 28
Eagan, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
UBAH HASSAN HAGI, 43
Eagan, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
17 March 2021
Wolf Point man admits assaulting infantRead the Press Release
GREAT FALLS — A Wolf Point man accused of injuring an infant on the Fort Peck Indian Reservation pleaded guilty to assault charges today, Acting U.S. Attorney Leif Johnson said.
Charles Connor Clark, 27, pleaded guilty to assault resulting in serious bodily injury as charged in a superseding information. Clark faces a maximum 10 years in prison, a $250,000 fine, and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 16. Clark was detained pending further proceedings.
In court documents filed in the case, the government alleged that in November 2017, the FBI was notified that an infant, identified as John Doe, had been flown from Wolf Point, on the Fort Peck Indian Reservation, to a hospital in Billings. The victim appeared to have suffered life-threatening, non-accidental injuries. Doctors informed agents that John Doe’s injuries were classic signs of physical abuse. When interviewed, the victim’s mother said Clark had told her the victim had vomited, that he was trying to burp him and that the victim had choked.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI and Fort Peck Tribal Law Enforcement.
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Wise Psychiatrist Sentenced for Federal Health Care FraudRead the Press Release
ABINGDON, Va.- Uzma Ehtesham, a Wise, Virginia psychiatrist who defrauded Virginia Medicaid and Medicare by fraudulently billing these programs for services not performed, was sentenced yesterday to two years’ probation, six months of which must be spent on home detention, Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring announced today.
Ehtesham, 52, pleaded guilty in November 2020 to a one-count Information charging her with health care fraud.
“Eradicating health care fraud remains a top priority for this office,” said Acting U.S. Attorney Bubar today. “When people like Ehtesham’s steal from our state and federal programs, they divert funds from the most vulnerable in our communities. We will continue to work closely with the local, state, and federal law enforcement partners whose good work brought Ehtesham to justice.”
“Health care providers and other individuals who defraud our health care system just to line their own pockets are not only stealing from Medicaid and Medicare, but they are also stealing from taxpayers and they must be held accountable,” said Attorney General Herring. “I want to thank our state and federal partners for their cooperation on this case, as well as my Medicaid Fraud Control Unit for their hard work and dedication.”
According to court documents, from 2010 to 2016, Ehtesham devised a scheme to defraud Virginia Medicaid and Medicare by billing for individual office visits when she often saw patients in groups. Frequently, Ehtesham would meet with patients in groups of two to four in a single visit, but subsequently bill as if she had met with them independently.
In addition, Ehtesham billed for extensive, time consuming, and costly office visits when she was conducting brief office visits with a patient. In many instances, Ehtesham would only meet with a patient for five to six minutes and then billed for services not supported by required documentation.
During the time of the investigation, Ehtesham was seeing more than 50 patients per day. Prescriptions were often written in advance of a scheduled visit by the office staff, placed in patient files, and signed by Ehtesham during the brief patient visit. At times, Ehtesham did not employ any medically certified staff to compile a patient’s vital statistics – such as blood pressure, pulse, height and weight? -- at each visit. Instead, vital statistics were copied from previous patient visits to each new visit information sheet at Ehtesham’s direction.
As part of the scheme, Ehtesham received $500,000 in fraudulently obtained proceeds from Virginia Medicare and Medicaid.
As part of the plea agreement, Ehtesham is required to pay a total of $1,000,000 in restitution, fines, and forfeiture.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Norton Police Department, Southwest Virginia Drug Task Force, and Virginia State Police. The following agencies assisted with the execution of a search warrant during the investigation: Big Stone Gap Police Department, Virginia Alcohol and Beverage Control Special Investigations Unit, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, and Wise Police Department. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threat Unit, is prosecuting the case for the United States. Virginia Assistant Attorney Generals and Special Assistant United States Attorneys Janine Myatt and Joe Hall also assisted with the investigation.
Westfield Woman Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
BOSTON – A Westfield woman pleaded guilty in federal court in Springfield yesterday to conspiracy to commit sex trafficking.
Jaclyn Lemelin, 35, pleaded guilty to one count of conspiracy to commit sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 15, 2021. Lemelin was charged by complaint in December 2018.
Co-conspirator William Coleman previously pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking and was sentenced to 186 months in prison in September 2020.
As stated during court proceedings, Lemelin conspired with Coleman who operated a sex trafficking enterprise that used violence and the drug addictions of female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman and were subject to his tight control over their daily lives. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain the drugs they needed from Coleman. In most cases, the victims were addicted to heroin.
Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman enlisted Lemelin, among others, to carry out tasks associated with the trafficking enterprise.
Lemelin admitted that she assaulted two victims working for Coleman and was paid by Coleman for each assault. The assaults were for perceived violations of Coleman’s rules. Lemelin also admitted that she rented cars for Coleman to be used in the trafficking enterprise.
Co-conspirators Virginia Maldonado, 32, and Shannon Yelinek, 36, pleaded guilty earlier this month to conspiracy to commit sex trafficking and are scheduled to be sentenced on June 3 and 4, 2021, respectively.
The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Hampden County District Attorney Anthony D. Gulluni; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group, which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
USP Lewisburg Inmate Charged with Possession of A WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hugo Reynosa, age 25, an inmate at the United States Penitentiary Lewisburg (USP Lewisburg) was indicted on March 16, 2021, by a federal grand jury for being in possession of a weapon in prison.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that during a search conducted on May 12, 2020, Reynosa was found in possession of a homemade sharpened piece of metal, commonly referred to as a “shank,” that was designed and intended to be used as a weapon.
The charges stem from an investigation by USP Lewisburg and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Reynosa is facing a maximum of five years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney's Office Seeks to Return 1996 Ferrari Taken into Custody at the Peace Bridge to Its Rightful OwnerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that the United States Attorney’s Office for the Western District of New York has filed a civil action seeking to determine the ownership of a 1996 Ferrari F50.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the civil complaint, the Italian luxury sports car was being transported across the border from Canada into the United States at the Peace Bridge Port of Entry on December 14, 2019, at which time the vehicle was taken into custody by Customs and Border Protection (CBP). Subsequent investigation by CBP officers determined that the vehicle was reported stolen in Italy in 2003. Since being taken into custody by CBP officers, multiple parties have claimed ownership of the vehicle. The Government filed the civil action with the Court to determine who can take ownership of the vehicle, which is valued at an estimated $1,900,000.
The Ferrari was initially taken into custody after it was discovered during the inspection of the vehicle at the border that some of the rivets on the VIN plate located on the dashboard were covered in a black tar type substance, which is inconsistent with factory standards. Due to the inconsistencies, CBP placed a hold on the vehicle to conduct additional investigation of the Ferrari’s history.
“After investigation, my Office determined that it would not be appropriate for us to exercise our authority and forfeit this extremely valuable and previously stolen luxury car,” stated U.S. Attorney Kennedy. “Instead, after an 18-year odyssey, which we know took it across continents and countries, we have decided that the time has come for a court of law to determine the rightful owner of the vehicle.”
“This case highlights the hard work, dedication, and enforcement mindset of our officers,” said CBP Buffalo Director Field Operations, Rose Brophy. “We continue to work closely with our law enforcement partners, even through an extensive time frame and over multiple countries, as shown with the outstanding teamwork by all involved in this case.”
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Two Indicted for Conspiring to Distribute Fentanyl following Investigation by PA State Police and Homeland Security InvestigationsRead the Press Release
PITTSBURGH, PA – A Philadelphia woman and Dominican Republican man have been charged federally with violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named, Yarelis Mary Garcia Corretjer, 23, of Philadelphia, Pennsylvania, and Reyelin Manuel Abreu Vasquez, 23, of the Dominican Republic.
According to the Indictment, on or about September 16, 2020, Garcia Corretjer and Abreu Vasquez conspired to possess with intent to distribute fentanyl. Also, on September 16, 2020, Troopers with the Pennsylvania State Police (PSP) Safe Highways Initiative through Effective Law Enforcement and Detection (SHIELD) Unit, seized from the vehicle, occupied by Garcia Corretjer and Abreu Vasquez, approximately 400 bricks of suspected fentanyl. The suspected fentanyl field-tested positive for the controlled substance. Abreau Vasquez informed law enforcement that he was illegally in the United States and had crossed the Mexican border approximately four years ago.
The law provides for a maximum total sentence of not more than life in prison, a fine of $10,000,000 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.
The Department of Homeland Security Investigations (HSI) and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case for the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Telemarket Fraudster Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – An Indian national who owned and operated an India-based call center that targeted and defrauded Americans, mostly senior citizens, and who assisted other India-based call centers in doing the same, that collectively intended to bilk Americans out of millions of dollars, was sentenced today in U.S. District Court in Providence to three years in federal prison.
Sahil Narang, 29, of Gurgoan Haryana, India, who was in the United States illegally at the time of his arrest in May 2019, is described in court documents as a key participant in sophisticated so-called Tech Fraud and Refund Fraud online telemarketing schemes that targeted technologically unsophisticated computer users, usually senior citizens.
In the Tech Fraud scheme, Internet pop-up advertisements were used to deceive computer users into believing that they needed computer protection services. The pop-up ads provided a telephone number to call, and on dialing the number, the victims were routed to call center operators who perpetuated the lie that malware had been detected on the victims’ computers and offered the victims supposed computer protection services at exaggerated prices.
In the Refund Fraud scheme, call center operators telephoned those who had fallen prey to Tech Fraud and offered to refund the sum previously paid. Through manipulation – usually the display of false bank account balances on the victims’ computer screens – the operators convinced the victims that sums far in excess of the refund amount had accidentally been deposited into the victims’ accounts. Because the victims had not in fact received any money, those who “returned” money were actually sending more of their own money to the fraudsters.
According to information presented to the court, between August 30, 2019, and May 1, 2019, employing the Tech Fraud scheme, Narang and others worked together to manipulate thousands of callers, seeking to obtain from them an estimated $1.5 million to $3 million dollars. An FBI investigation determined that over a nine-month period Narang routed on average more than 70 calls to call centers every day. It is also estimated that Narang’s Tech Fraud scheme was successful 30% of the time.
In round two of the scheme, the Refund Fraud scheme, executed during the same nine-month period, Narang and others associated with call centers sought to obtain from their victims cumulatively $560,900 dollars. The FBI investigation identified at least nine individuals who fell victim to the Tech Fraud Scheme at a total loss of $110,900, which the FBI was able to intercept and return to the victims. During the investigation the FBI interceded and prevented loss when a tenth victim was on the verge of losing up to $450,000 to the fraudsters.
Sahil Narang pleaded guilty on December 11, 2020, to conspiracy to commit wire fraud and ten counts of wire fraud. He was sentenced today to 36 months in federal prison to be followed by three years of supervised release, announced Acting United States Attorney Richard B. Myrus. A restitution order will be forthcoming from the Court.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Tax Preparer Charged with COVID-19 Loan FraudRead the Press Release
A South Florida tax preparer was charged Tuesday by criminal information with wire fraud in connection with a scheme to obtain over 100 COVID-19-relief loans under the Paycheck Protection Program (PPP).
According to the allegations in the information, Leonel Rivero, 35, of Miami, owned a tax-preparation business and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 PPP loan applications sought more than $2.3 million in PPP loans. On each PPP loan application, Rivero allegedly falsified the applicant’s prior-year income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices allegedly received approximately $975,582 in PPP loans as a result of the fraud.
Rivero is scheduled for his initial court appearance on March 23 in the U.S. District Court for the Southern District of Florida. If convicted, Rivero faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney Ariana Fajardo Orshan of the U.S. Attorney’s Office for the Southern District of Florida; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.
The IRS-CI is investigating the case with assistance from the SBA-OIG.
Trial Attorney Della Sentilles of the Justice Department’s Fraud Section and Assistant U.S. Attorney Christopher Browne of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was 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 PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general 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.
An information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.