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17 March 2021
St. Martinville Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
LAFAYETTE, La. – Anthony Sal Melancon, Jr., 48, of St. Martinville, Louisiana, was sentenced today by United States District Judge Michael J. Juneau to 120 months (10 years) in prison, followed by 15 years of supervised release, for distribution of child pornography.
A federal grand jury in Lafayette returned an indictment on August 21, 2019 charging Melancon with child pornography offenses. Melancon pleaded guilty to distribution of child pornography on December 14, 2020. Evidence introduced at the hearing established that while in a sexual relationship with a woman, Melancon discussed with her his desire to have sex with a minor girl and he asked the woman if she would agree to have sex with Melancon and a minor girl. On January 21, 2017, Melancon sent the woman a pornographic image over the internet of a prepubescent girl that he claimed he had performed sexual acts upon. Melancon began asking the woman to send pictures of her minor daughter to him. The woman’s husband found the communications on the woman’s laptop and contacted law enforcement. A search warrant was executed and Melancon admitted to law enforcement agents that he sent the child pornography images over the internet.
The U.S. Department of Homeland Security – Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney J. Luke Walker prosecuted the case.
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Shenandoah County Man Pleads Guilty to Possession ofRead the Press Release
HARRISONBURG, Va. – Paul Wayne Shell, a convicted felon prohibited from possessing explosive materials, pleaded guilty today in U.S. District Court to possessing a series of military grade explosives items, Acting United States Attorney Daniel P. Bubar and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Washington Field Division announced today.
Shell, 51, pleaded guilty yesterday to one count of possession of explosive materials by a prohibited person. At sentencing Shell faces up to 10 years in prison and a fine of up to $250,000.
According to court documents, in August 2019 the ATF and a Shenandoah County Fire Marshal received information that Shell was in possession of trip mines, dummy mines, tear gas, and other military grade items that he was willing to sell.
On August 29, 2019, investigators with ATF setup a controlled buy from Shell in a parking lot in Quicksburg, Virginia. At that time, Shell sold investigators smoke grenades, tear gas, trip wires, red flare rockets, and hand grenade demos, for $900.
In an interview with law enforcement on September 3, 2019, Shell admitted he stole the items 10 years earlier from a farm where he worked. Shell told investigators he believed the explosives were being sold to a motorcycle gang.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Shenandoah County Fire Marshal. Assistant United States Attorney Heather L. Carlton is prosecuting the case for the United States.
Seattle computer security consultant indicted for threatening cyberstalking campaign against a former roommate, her family members, boyfriend, police, and prosecutorsRead the Press Release
Seattle – A Seattle man employed as a cyber security consultant was indicted today by a federal grand jury for conspiracy to engage in cyberstalking, three counts of cyberstalking in violation of criminal order, and two counts of cyberstalking, announced Acting U.S. Attorney Tessa M. Gorman. SUMIT GARG, 31, was transferred to federal custody last week and was ordered detained at the Federal Detention Center at SeaTac on March 15, 2021. GARG will be arraigned on the indictment Thursday March 25, 2021.
According to a detailed criminal complaint and the indictment in the case, GARG has been involved in an extensive campaign of threats and sexually explicit messaging and posts about a woman who used to share an apartment with GARG’s spouse. Using personal information GARG accessed after he moved into the apartment with his spouse, GARG has threatened and tormented the former roommate in violation of court order. GARG allegedly also used his computer skills to threaten multiple people in the former roommate’s life, including her uncle who represented her in obtaining a civil protection order; her current boyfriend; the Seattle Police Detective who investigated the threats; and even the Deputy Prosecuting Attorney who filed charges against GARG for his illegal stalking conduct. GARG used his computer skills to try to hide who was sending the threats or making the posts. At one point in his scheme, GARG was videotaped in the lobby of the victim’s new apartment building at the same time photos were taken and sent of that location to frighten the victim.
Conspiracy to engage in cyberstalking is punishable by up to five years in prison. Cyberstalking in violation of criminal order is punishable by a mandatory minimum of one year and a maximum of five years in prison. Cyberstalking is punishable by up to five years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the United States Secret Service with assistance from the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
garg_indictment.pdfRochester Man Sentened for Selling Cocaine and Laundering the ProceedsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Edwin Calderon, 39, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, and conspiring to commit money laundering, was sentenced to serve 120 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between 2015 and September 27, 2018, the defendant conspired with Carlos Cruz-Garcia and others, to sell cocaine. Calderon obtained quantities of cocaine to distribute in the Rochester area. Some came through the United States Postal Service addressed to other people, including Cruz-Garcia. Those packages contained half-kilogram quantities of cocaine and were shipped from Puerto Rico. Co-conspirators would then deliver the packages to the defendant who would sell the cocaine for profit.
In furtherance of the money laundering conspiracy, Calderon and his co-conspirators exchanged small denomination bills from drug sales for larger denomination bills at banks, in an effort to reduce the physical size of the bills and, therefore, make it easier to conceal and transport.
On July 20 and July 31, 2018, the defendant and Cruz-Garcia traveled to a credit union on Ridge Road in Rochester and exchanged approximately $11,000 worth of small denomination bills for $100 bills. On July 20, 2018, Calderon and Cruz-Garcia traveled to another credit union on Mt. Read Boulevard in Rochester and exchanged approximately $8,000 worth of small denomination bills for $100 bills. After obtaining the larger denomination bills, the defendant and his co-conspirators would send large amounts of money – consisting of drug proceeds – concealed in multiple packages through the United States Postal Service from Rochester to Puerto Rico.
Calderon was charged along with Carlos Cruz-Garcia and Manuel Medina. All three defendants have been convicted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division.
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Rochester Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Matthew Gittings, 37, of Rochester, pleaded guilty in federal court to conspiracy to possess fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on December 19, 2018, a New Hampshire state trooper initiated a traffic stop on I-95 after observing a motor vehicle violation. Gittings was one of two passengers and was seated in the rear of the vehicle. After speaking to the driver outside of the vehicle, the trooper asked Gittings for his identification. When the trooper opened the rear passenger door to retrieve Gittings’ identification, he observed a large knotted plastic baggie of fentanyl in the rear door compartment. A consensual search of Gittings’ backpack revealed two digital scales, unused plastic baggies, and rubber bands. The trooper conducted a pat search of Gittings and located additional fentanyl.
Gittings is scheduled to be sentenced on June 23, 2021.
“The damage that fentanyl has caused to our communities cannot be overstated,” said Acting U.S. Attorney Farley. “We continue to work closely with our law enforcement partners to identify and prosecute the drug traffickers who are responsible for peddling this dangerous substance in the Granite State.”
This matter was investigated by the Drug Enforcement Administration and New Hampshire State Police Mobile Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Repeat Meth Trafficker Sentenced to 14 Years Federal PrisonRead the Press Release
VALDOSTA, Ga. – A Doerun, Georgia, resident found guilty of distributing large amounts of methamphetamine in two southwest Georgia communities was sentenced to 14 years in federal prison today for his crimes, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Samuel Matthew “Cruz” Howard, 27, of Doerun, Georgia, was sentenced to serve 168 months in a federal prison, to be followed by five years of supervised release, by U.S. District Judge Louis Sands after Howard was found guilty of two counts of possession of methamphetamine with intent to distribute following a bench trial before Judge Sands on August 6, 2020. There is no parole in the federal system.
“The defendant brazenly continued pushing large quantities of methamphetamine into southwest Georgia communities, even following his first arrest. Howard’s repeat criminal actions have resulted in a lengthy federal prison sentence,” said Acting U.S. Attorney Leary. “I want to commend the Thomas County-Thomasville Narcotics/Vice Division and the DEA for their excellent investigative work in this case and helping bring this repeat offender to justice.”
“This ‘meth’ trafficker, who happens to be a repeat offender, was ultimately sentenced because of DEA’s commitment to remove dangerous drugs from our streets to protect our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division, Robert J. Murphy. “Mr. Cruz will now spend well-deserved time in prison, and his apprehension makes the southwest Georgia community a safer place today.”
“As drug dealers prey on communities, they often ignore county or state lines. It’s great to have the cooperation of all state and federal agencies to aid in the arrest and prosecution of these drug traffickers. Hopefully, Mr. Howard’s arrest and incarceration will be a deterrent to current and/or future drug traffickers,” said Lieutenant Commander Louis Schofill, Thomas County-Thomasville Narcotics/Vice Division.
According to the facts presented by the Government, the defendant was taken into custody on two separate occasions for attempting to distribute large quantities of methamphetamine in communities in southwest Georgia. The first incident occurred on October 11, 2016. A Thomas County-Thomasville Narcotics/Vice Division agent received information from a confidential source (CS) who stated that a male known as “Cruz” would be delivering a large quantity of methamphetamine to someone at a residence on North Church Street in Meigs, Georgia, within the hour. Agents, conducting surveillance, observed the defendant drive up to the residence in a blue Buick, and they approached Howard. During a legal search of Howard’s vehicle, agents found three plastic sandwich bags containing 85.2 grams of 99% pure “ice” methamphetamine inside the center console armrest, a gray zip pouch containing numerous empty plastic sandwich bags, a digital scale and $1,819 under the armrest. A search warrant of Howard’s cell phone revealed numerous text messages to and from Howard discussing drug transactions and prices right up to the hour of his arrest.
The second incident occurred on April 26, 2018, when Howard was arrested in possession of approximately 222.3 grams of methamphetamine. This time, a CS contacted Howard via text message to arrange the purchase of methamphetamine from Howard at a McDonald’s in Adel, Georgia. Howard was taken into custody at the McDonald’s in possession of a box with “Gucci” written on it, containing 222.3 grams of methamphetamine, found inside his blue Buick. The defendant has a criminal history and was previously convicted of Theft by Taking in Colquitt County Superior Court.
The case was investigated by Drug Enforcement Administration (DEA) and Thomas County-Thomasville Narcotics/Vice Division. Assistant U.S. Attorney Leah McEwen prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Registered sex offender sentenced to 35 years for sexual exploitation of children and receipt and distribution of visual depictions of minors engaged in sexually explicit conductRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that James Marquand, 39, of Madison, Ohio, was sentenced by U.S. District Court Judge Sara Lioi to a term of 420 months imprisonment and ordered to pay $13,000 in restitution after he pleaded guilty in October of 2020 to sexual exploitation of children and receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct. Additionally, the Court recommended that Marquand receive any mental health, drug abuse, and sex offender treatment for which he qualifies and is prohibited from accessing the internet without supervision.
“Serial child predators bring these significant terms of incarceration on themselves. It is as simple as that,” said Acting U.S. Attorney Bridget M. Brennan. “Despite prior convictions for similar conduct, this defendant chose to sexually exploit a child and also to repeatedly exploit other children by receiving and distributing more than 100 images of them. Because of the collaborative efforts of the Federal Bureau of Investigation and the Cuyahoga County Prosecutor’s Office, as well as the dedication of the Assistant U.S. Attorneys who prosecute these matters, this predator’s 35-year term of incarceration guarantees that he is no longer a threat to our children.”
“This is a lengthy, well-deserved sentence,” said FBI Special Agent in Charge Eric B. Smith. “Marquand has a history of sexually exploiting minors and it's clear he learned nothing from his prior incarceration. Fortunately, this most recent sentence will ensure this predator will be kept away from children for 35 years. All of us share a responsibility to protect innocent children, especially from sexual predators, whether online or in your own home."
“This predator, who is a previously convicted sex offender, sexually abused a minor and uploaded more than 100 files of child abuse material,” said Cuyahoga County Prosecutor Michael C. O’Malley. “Our community is significantly safer with him behind bars for the next 35 years.”
According to court records and statements made during courtroom proceedings, in October of 2019, the Ohio Internet Crimes Against Children Task Force (ICAC) received a tip from the National Center of Missing and Exploited Children that a Google email address had uploaded 120 images of known child pornography to Google Photos. Through subpoenas, investigators traced the IP address used to upload the photos to Defendant James Marquand, who was living in Madison, Ohio.
At the time of the investigation, Marquand was on parole from a conviction in Cuyahoga County for attempted rape and unlawful sexual conduct with a minor. Additionally, Marquand was a registered sex offender who had been convicted for not providing notice of his change of address, in violation of his Sex Offender Registration provisions and was currently living at an address from which he was prohibited.
Law enforcement reviewed Marquand’s Google account in response to a federal warrant and found fifty-six files depicting minors engaged in sexual conduct. These images were uploaded to a Google account belonging to Marquand between March and September of 2019. Later, Marquand’s Google account was forensically analyzed and found to contain 150 images and 97 videos of child pornography. Court records state that the account also contained sexually explicit images and videos of Minor Victim #1, a four-year-old girl engaged in sexual conduct with Marquand.
Law enforcement officers interviewed Marquand, and he admitted to engaging in the conduct with Minor Victim #1 on multiple occasions and recording some instances on his cellphone.
This case was investigated by the Cleveland Division of the FBI, Ohio Internet Crimes Against Children Task Force and the Cleveland Adult Parole Authority (APA) Sex Offender Unit. This case was prosecuted by Assistant U.S. Attorneys Carol M. Skutnik and John C. Hanley.
Quincy Man Sentenced to 12 1/2 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – Senior U.S. District Judge Richard Mills today sentenced Sharnell Washington, 25, of Quincy, Ill., to serve 151 months (12 years 7 months) in federal prison for trafficking methamphetamine in Quincy in 2020. Washington, whose last known address was in the 800 block of N. 7th St., has remained in law enforcement custody since his arrest in March 2020.
Washington pleaded guilty on Jan. 27, 2021, to distribution of methamphetamine and was found responsible for approximately 46.84 grams of pure meth, or ice, and an additional two grams of a mixture containing methamphetamine.
At sentencing, the court noted that Washington was convicted in Adams County in December 2016 for aggravated battery to a child and has prior convictions for trafficking methamphetamine.
The West Central Illinois Task Force; Illinois State Police; and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Gregory M. Gilmore represented the government in the prosecution in cooperation with the Office of Adams County State’s Attorney Gary Farha.
Pulaski County Man Sentenced to 180 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— Danny Butt, 48, of Science Hill, Ky., was sentenced to 180 months in federal prison on Wednesday, by U.S. District Judge Claria Horn Boom, after previously pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Butt’s plea agreement, on August 11, 2020, law enforcement conducted a search warrant at Butt’s residence and found him in possession of 50 grams of methamphetamine, which he admitted was his and intended to sell. In the same room, law enforcement found digital scales, baggies, syringes, cash, a loaded rifle, and a loaded pistol. Butt admitted to owning the firearms to protect himself, his methamphetamine, and the proceeds.
Butt pleaded guilty in November 2020.
Under federal law, Butt must serve 85 percent of their prison sentence. Upon Butt’s release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office and Greg Speck, Pulaski County Sheriff , jointly announced the sentence.
The investigation was conducted by the FBI and the Pulaski County Sheriff's Department. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This is case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the U.S. Attorney coordinates PSN efforts, in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s targeted initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
Portland Man Sentenced on Federal Gun and Drug ChargesRead the Press Release
PORTLAND, Maine: A Portland man was sentenced in federal court yesterday for possessing cocaine base with intent to distribute and possessing a firearm after being convicted of a felony, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge George Z. Singal sentenced Alexander Burnham, 22, to 70 months in prison and three years of supervised release. Burnham pleaded guilty in October 2020.
According to court records, on April 7, 2020, Burnham accidently shot himself in the leg with a Smith & Wesson 9 mm semi-automatic pistol. While being driven to the hospital for the injury, he threw the loaded firearm and crack cocaine out the window of the vehicle. He was prohibited from possessing firearms because of his prior felony convictions.
The FBI Safe Streets Task Force and the Westbrook Police Department investigated the case.
Pharmacist and Pharmacy Technician Charged in a $1.2 Million Illegal Opioid Distribution ConspiracyRead the Press Release
An indictment was unsealed charging a pharmacist and a pharmacy technician with conspiracy to illegally distribute prescription drugs, announced Acting U.S. Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division; and Special Agent in Charge Lamont Pugh, the Department of Health and Human Services, Office of the Inspector General (HHS-OIG).
Charged were Cosmos George, 46, of Southfield and Tarielle Dixon, 33, of Detroit.
According to the indictment, from September 2017 through June 2020, Cosmos George, a pharmacist working at the Village Script East Pharmacy located in Dearborn and Tarielle Dixon, a pharmacy technician working at the Nottingham Pharmacy located in Detroit, conspired with others to dispense a large number of prescription opioids for fictitious patients who did not have a legitimate medical need for the drugs. Both George and Dixon dispensed addictive and highly diverted prescriptions for the same opioid distribution ring.
Over the course of the conspiracy, George and Dixon primarily dispensed oxycodone and oxymorphone, two of the most addictive opioids that have high black market resale values.
The indictment further alleges that the pharmacies dispensed more than 41,995 dosage units of Schedule II opioid prescriptions during the course of the conspiracy. These controlled substances had a conservative street value in excess of $1,200,000.
This case is being prosecuted by Assistant United States Attorneys Mitra Jafary-Hariri and Brandy R. McMillion. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative, using data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
If convicted of the charges, each face a statutory maximum penalty of 20 years in federal prison.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pharmacist Charged in $4 Million Health Care Fraud and Kickback SchemeRead the Press Release
A New York man was arrested today for his role in a conspiracy to commit health care fraud and to pay kickbacks and bribes to customers for expensive prescription orders in connection with more than $4 million in Medicare and Medicaid reimbursements.
According to an indictment returned by a federal grand jury in the Eastern District of New York, Robert John Sabet, 44, of Brooklyn, was the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens. Since September 2016, Sabet allegedly conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because, among other reasons, they were not needed or not dispensed. Sabet also allegedly conspired to pay kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and to pay customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf.
In December 2020, Sabet allegedly wired nearly $100,000 from Lucky Care’s bank accounts to an automobile dealership to pay for a luxury car. Investigators conducted a search warrant at Sabet’s home at the time of his arrest and seized a 2020 Porsche Taycan worth over $250,000, as well as cash and luxury goods.
Sabet is charged with conspiracy to commit health care fraud, conspiracy to defraud the United States by paying kickbacks and bribes in connection with the provision of health care services, and unlawfully spending the proceeds of his fraud. The defendant is scheduled for his initial court appearance today before U.S. Magistrate Judge Ramon E. Reyes, Jr. of the U.S. District Court for the Eastern District of New York. If convicted, he faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, five years in prison for conspiracy to pay kickbacks and bribes, and 10 years in prison for unlawful spending. 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; Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the Health and Human Services Office of Inspector General (HHS-OIG), New York Regional Office; Special Agent in Charge Jonathan D. Larsen of IRS-Criminal Investigation (IRS-CI), New York; and Acting Medicaid Inspector General Frank T. Walsh Jr. of the New York State Office of the Medicaid Inspector General (OMIG) made the announcement.
HHS-OIG, IRS-CI, and OMIG are investigating the case.
Trial Attorney Miriam L. Glaser Dauermann of the Justice Department’s Fraud Section is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owner of Pharmacies in Brooklyn and Queens Charged in Healthcare Fraud and Kickback SchemeRead the Press Release
BROOKLYN, NY – An indictment was unsealed today in federal court in Brooklyn charging Robert John Sabet, the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens, with conspiracy to commit health care fraud, conspiracy to defraud the United States by paying kickbacks and bribes in connection with the provision of health care services, and unlawfully spending the proceeds of his fraud. Sabet was arrested today and is scheduled to be arraigned this afternoon via videoconference before United States Magistrate Judge Ramon E. Reyes, Jr.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Scott J. Lampert, Special Agent-in-Charge, Health and Human Services, Office of Inspector General, New York Regional Office (HHS-OIG); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG), announced the arrest and indictment..
“The defendant’s alleged participation in health care fraud, and his payment of kickbacks and bribes, corrupted the trusted relationship between pharmacies and patients, and potentially harmed the very people that the Medicare and Medicaid programs are intended to serve,” stated Acting U.S. Attorney DuCharme.
“Billing Medicare and Medicaid for medically unnecessary costs diverts taxpayer funds from their intended purpose of providing life-sustaining health care services to beneficiaries. Sabet’s alleged payment of bribes and kickbacks also threatens the integrity of federal health care programs. It is unacceptable when health care providers seek personal enrichment by defrauding the programs on which their patients rely, and along with our law enforcement partners, we will continue to hold these individuals accountable for their actions,” stated HHS-OIG Special Agent-in-Charge Lampert.
“Many Americans rely heavily on the social safety nets provided by Medicare and Medicaid when they are needed,” stated IRS Special Agent-in-Charge Larsen. “Benefiting personally as alleged impacts all of us both today and tomorrow.”
“Particularly as we continue to recover from the COVID pandemic, individuals who commit Medicaid fraud prey on the most vulnerable New Yorkers, threaten the viability of programs that provide vital health care services, and steal taxpayer dollars. My office will continue to work closely with our partners in law enforcement to hold fully accountable those who seek to exploit the Medicaid program for personal gain,” stated OMIG Acting Inspector General Walsh.
As set forth in court filings, since September 2016, Sabet allegedly conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because they were not needed or not dispensed. Sabet also allegedly conspired to pay kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and to pay customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf.
In December 2020, Sabet allegedly wired nearly $100,000 from Lucky Care’s bank accounts to an automobile dealership to pay for a luxury car. Investigators conducted a search warrant at Sabet’s home at the time of his arrest and seized a 2020 Porsche Taycan worth over $250,000, as well as cash and luxury goods.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Sabet faces a maximum sentence of 10 years in prison for conspiracy to commit health care fraud; five years in prison for conspiracy to pay kickbacks and bribes and 10 years in prison for unlawful spending.
The case is being prosecuted by Trial Attorney Miriam L. Glaser Dauermann of the Justice Department’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.
The Defendant:
ROBERT SABET
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No.: 21-CR-140 (VMS)
Ohio man sentenced for his role in drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Michael Moon, of Toledo, Ohio, was sentenced today to 27 months of incarceration for his role in a drug conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Moon, also known as “Meezy,” 25, pled guilty in September 2020 to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Moon admitted to working with others to selling methamphetamine near Madison Elementary School in Wheeling on February 14, 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
ODNI, DOJ and DHS Release Unclassified Summary of Assessment on Domestic Violent ExtremismRead the Press Release
Note: An executive summary of the joint comprehensive report can be viewed
here.The Office of the Director of National Intelligence (ODNI), the Department of Justice (DOJ), and the Department of Homeland Security (DHS) today released an unclassified summary of the joint comprehensive threat assessment on domestic violent extremism. The unclassified summary is attached and will be available on DNI.gov later today.
The assessment was prepared under the auspices of the DNI, in consultation with DOJ and DHS, and drafted by the National Counterterrorism Center, the Federal Bureau of Investigation, and DHS with contributions from the Central Intelligence Agency and the Defense Intelligence Agency. All agencies involved are mindful of the duty to respect privacy, civil rights, and civil liberties and to act within the authorities granted to them as they seek to put together as complete an intelligence and analytic picture as is possible.
New Jersey Man Charged with Tax Evasion and Filing False ReturnsRead the Press Release
A federal grand jury in Newark, New Jersey, returned an indictment today charging a New Jersey man with tax evasion and filing false tax returns.
According to the indictment, from 2011 through 2014, Gabriel M. Ferrari, owner of Buses and Trucks Inc. (B&T) in Linden used B&T’s gross receipts to pay personal expenses, including gambling on horse races, and then did not disclose the diverted receipts to his return preparer or the IRS. To hide his income, Ferrari allegedly filed false business and personal tax returns with the IRS.
If convicted, Ferrari faces a maximum sentence of five years in prison for each count of tax evasion, and three years in prison for each false tax return charge. Ferrari also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rachael A. Honig for the District of New Jersey made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Ann Marie Cherry of the Tax Division and Assistant U.S. Attorney Andrew Trombly of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Mountain Home Couple Plead Guilty to Charges in Connection with Obtaining Covid-19 Relief FundsRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that James Read, age 44, and his wife, Crystal Payne, age 42, both of Mountain Home, Arkansas, pleaded guilty to charges stemming from their attempts to obtaining pandemic relief funds unlawfully. The Honorable Judge P. K. Holmes III accepted the pleas in the U.S. District Court in Fort Smith.
According to the plea agreement in his case, Read applied to the Small Business Administration for Payment Protection Program (PPP) funds, which, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, are forgivable loans intended for businesses struggling with essential expenses, such as payroll, during the pandemic. In that application, Read provided inflated wage and employee data about his business, SnowbirdBob LLC, and provided falsified tax documents. He further admitted to laundering the PPP loan proceeds by purchasing a new vehicle.
Read also pleaded guilty to one count of wire fraud for attempting to obtain unemployment benefits for himself and others in Louisiana. He falsely represented that he lived and worked in Louisiana to Louisiana’s state unemployment administrator.
Payne pleaded guilty to a single count for false statements made in her own PPP loan application.
Read and Payne’s sentencings will be later determined by the court, following the U.S. Probation Office’s completion of a presentence investigation.Based on his guilty plea, the maximum penalties Read faces include imprisonment for up to 30 years and a fine of up to $1,000,000. Payne faces up to five years imprisonment and a fine of up to $250,000.
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 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 case was investigated by IRS-Criminal Investigations, the Federal Bureau of Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges is prosecuting the case for the United States.
Moses Lake Man Indicted for Unlawful Possession of Firearm and Improvised Destructive DeviceRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced the Indictment of Timothy Richard Ray Riggins, age 32, of Moses Lake, Washington, in connection with possession of an unregistered firearm/destructive device, in violation of 26 U.S.C. §§ 5845(a)(8), (f), and 5861(d). If proved, the offense carries a potential penalty of up to ten years in prison, a $10,000 fine, and up to three years supervised release.
According to state court records, in the early morning hours on or about November 3, 2019, Moses Lake Police Department (“MLPD”) received a 911call from a reporting party that Riggins had just assaulted her, stolen her vehicle, and was in possession of a “bomb.” The reporting party advised the explosive device was in a fanny pack and she was concerned for the safety of a mutual friend. MLPD was familiar with Riggins, a documented Norteno criminal street gang member, and knew he had an active felony warrant for his arrest from Washington State Department of Corrections. The reporting party’s vehicle was located, and Riggins was tracked to a nearby residence. After applying for and executing a warrant to search the residence, police found Riggins hiding inside a top-loading washing machine in one of the rooms.
While searching along Riggins’ path of travel from the stolen vehicle to the residence, police found a fanny pack that contained an operable improvised destructive device, more specifically described as a large commercial firework with more than 20 nails taped to the outside, with a large fuse. Two additional similar improvised destructive devices were located near the fanny pack.
This case is being investigated under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
The charges contained in an Indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Moses Lake Police Department. This case is being prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Middlesex County Man Charged with Tax Evasion and Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was charged today with tax evasion and filing false tax returns, Acting U.S. Attorney Rachael A. Honig and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced.
Gabriel M. Ferrari of Edison, New Jersey, was indicted by a federal grand jury today on three counts of tax evasion and seven counts of filing false personal and corporate tax returns. He will have his arraignment and initial appearance at a later date.
According to the indictment:
From 2011 through 2014, Ferrari, owner of Buses and Trucks Inc. (B&T) in Linden, New Jersey, used gross receipts of B&T to pay personal expenses, including gambling on horse races, and then did not disclose the diverted receipts to his return preparer or the IRS. To hide his income, Ferrari filed false business and personal tax returns with the IRS.
Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Each count of filing a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS-Criminal Investigation Division, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark and by Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Martinsburg man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Darian Leizear, of Martinsburg, West Virginia, has admitted today to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Leizear, 23, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Leizear, a person prohibited from having firearms because of a prior conviction, admitted to having a .380 caliber pistol in September 2020 in Berkeley County.
Leizear is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Manchester Man Pleads Guilty to Escape from CustodyRead the Press Release
CONCORD - Edwin Laboy, 45, with a last known address of Manchester, pleaded guilty in federal court on Tuesday to escaping from custody, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Laboy was confined at the Hampshire House Residential Reentry Center in Manchester. He had previously been convicted of conspiracy to distribute controlled substances in the District of Vermont. On December 31, 2020, Laboy received approval to go to a gym, but did not return at the agreed upon time. Attempts to reach him were unsuccessful. Laboy was arrested on January 28, 2021 in Springfield, Massachusetts.
Laboy is scheduled to be sentenced on May 7, 2021.
“Fleeing from custody is a federal crime,” said Acting U.S. Attorney Farley. “Thanks to the hard work of the United States Marshals, this defendant was not a fugitive for long. This case should send a message that those who attempt to flee from custody will not be fugitives for long. We will work hard to locate fugitives and we will prosecute them in for their unlawful conduct.”
This matter was investigated by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
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Man Sentenced to Prison for Producing Images of Child Sexual AbuseRead the Press Release
A Nevada man was sentenced Tuesday to 25 years in prison for producing images of child sexual abuse involving multiple minor victims under the age of 12 years old.
According to court documents, in January 2015, Eric Blair McCartt, 37, of Reno, joined a chat group dedicated to trading child sexual abuse materials. He thereafter used two prepubescent minor victims known to him to produce images of child sexual abuse including photographing his own genitalia on the victims’ faces while they were sleeping. He distributed these images to others in the chat group, and some of the images were posted to the internet. Several of the images were found on the computer of another individual in another country.
“McCartt preyed upon two innocent children, and the exploitation of children will not be tolerated,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The production of images of child sexual abuse is heinous and causes incalculable and long-lasting harm to victims. Thanks to the department’s commitment to prosecuting child abusers and the diligent work of our law enforcement partners, McCartt will serve a substantial prison term in a place where he cannot sexually abuse minors.”
In addition to his prison sentence, McCartt was also ordered to serve a lifetime term of supervised release, pay $6,000 in restitution and forfeit computer equipment used in the violation. As a result of his conviction, he will be required to register as a sex offender.
“With this sentencing, we have removed a dangerous child predator from the community and sent a categorical message that we are committed to aggressively investigate anyone who seeks to exploit our most vulnerable population – our children,” said Special Agent in Charge Francisco Burrola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Las Vegas. “Child pornography, when it’s released on the internet, lives on forever to haunt the innocent children whose abuse is depicted in the images. While we cannot undo the damage of his horrible crimes, we hope that this sentence helps with the healing process for his victims and families.”
HSI investigated the case.
Trial Attorneys Lauren Britsch and Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The U.S. Attorney’s Office for the District of Nevada provided assistance.
Man Sentenced to 55 Months in Prison for Violating Sanctions Against Senior Venezuelan LeadersRead the Press Release
WASHINGTON – A Florida man was sentenced today to 55 months in prison for his connection with a scheme to provide private charter flights to two prominent members of former Venezuelan President Nicolás Maduro’s inner circle. He will also pay $250,000 in fines and undergo two years of supervised release as part of the sentence.
Victor Mones Coro, 52, of Florida was convicted by a federal jury for his involvement in a scheme to provide private charter flights to two prominent members of Former Venezuelan President Nicolás Maduro’s inner circle: Former Venezuelan Vice President Tareck Zaidan El Aissami Maddah and his frontman, Samark Jose Lopez Bello. These flight services violated sanctions imposed by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) pursuant to the Foreign Narcotics Kingpin Designation Act.
“Mones Coro used subterfuge and lies to provide illegal flight services to top Venezuelan leaders, which provided political support for the unlawful Maduro regime,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “His actions undermined our national security and foreign policy, and their gravity is reflected in today’s sentence. Let this case serve as a warning to anyone else who risks the wellbeing of our nation for personal gain and profit.”
“Victor Mones Coro led a concerted, sustained multi-year scheme to provide millions of dollars’ worth of illicit flight services to Venezuelan leaders in direct contravention of our country’s sanctions regime and foreign policy,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “Today’s sentence serves as a reminder that, together with our law enforcement partners, we will aggressively prosecute sanctions violators to protect our national security.”
“We take a great deal of pride in working alongside the US Attorney’s Office and the Department of the Treasury to ensure that the integrity and intent of U.S. sanctions is preserved both at home and abroad. HSI, through myriad authorities, conducts criminal investigations to maintain the viability of the American financial system and prevent its misuse by foreign corrupt officials and narcotics traffickers,” said Special Agent in Charge Peter C. Fitzhugh of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HIS) New York Field Office. “Today, we are reminded of our steadfast commitment to holding those willing to violate such sanctions accountable. And to those who intend to circumvent our laws to gain power and further their corrupt practices through international crime, know you will be brought to justice.”
According to court documents, Mones Coro designed an elaborate criminal scheme to enrich himself and provide flight services to El Aissami and Lopez Bello, among other influential Venezuelans in Maduro’s inner circle, including the President of Venezuela’s Supreme Court, Maikel Moreno, who had also been previously sanctioned by OFAC. In spearheading this criminal scheme, Mones Coro used his U.S.-based company American Charter Services (“ACS”), its planes and its employees to fly Lopez Bello, El Aissami, and others around the world, including to foreign countries of strategic importance to the Maduro regime such as Russia and Turkey.
Mones Coro also provided flights in furtherance of Maduro’s May 2018 campaign for reelection, a corrupt campaign through which Maduro illegitimately maintained control of Venezuela. Between approximately February and May 2018, Mones Coro and ACS arranged between 20 to 25 domestic Venezuelan flights for the Maduro campaign. These flights transported people, campaign materials, and food, among other things, and were coordinated with associates of El Aissami and Lopez Bello.
To avoid detection, Mones Coro and his co-conspirators, including Joselit Ramírez Camacho, Venezuela’s current Superintendent of Cryptocurrencies, engaged in various forms of subterfuge. They used code names, falsified flight manifests and invoices, communicated over encrypted messaging applications, received cash flown into the U.S. from Venezuela, and accepted wire transfers from a front company tied to the sanctioned Venezuelan leaders. Mones Coro also tried to cover his tracks by directing one of his pilots to lie to law enforcement.
Mones Coro perpetrated these crimes at a time when the U.S. and its allies were engaged in the crucial undertaking of depriving Venezuela and its leadership of resources for its malign, undemocratic, and deadly activities—including its systematic and oftentimes fatal repression of activists, its subversion of Venezuelan democratic institutions, and its corrupt plundering of Venezuela’s natural resources. Maduro and others are charged with narco-terrorism and related crimes in a Superseding Indictment also pending before Judge Hellerstein. In a separate Superseding Indictment, El Aissami, Lopez Bello, and Ramírez Camacho are charged with sanctions violations based on their roles in the scheme with Mones Coro.
The U.S. Customs and Border Protection, and the DEA’s Special Operations Division Bilateral Investigations Unit, with assistance from the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division and Office of Foreign Assets Control investigated the case.
Trial Attorney David Recker of the Justice Department’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys Same Adelsberg and Amanda Houle of the Southern District of New York prosecuted the case.
Man Charged for Violent Assault on Former Intimate PartnerRead the Press Release
A Tulsa man has been charged in federal court for assaulting and strangling his former intimate partner, announced Acting U.S. Attorney Clint Johnson.
Terrance DuJuan Reed, 29, was charged by criminal complaint with assault of an intimate partner by strangling, suffocating, or attempting to strangle or suffocate in Indian Country. The crime occurred in Tulsa within the Cherokee Nation Reservation.
According to the complaint and affidavit, Reed asked for a ride when the victim picked up her two minor children from his mother’s home on Feb. 16, 2020. During the car ride, Reed began yelling and questioning the victim about a recent trip she took with friends and once they arrived at his destination demanded to check her text messages. Following the victim’s refusal to hand over her cell phone, Reed allegedly punched the victim, dragged her from the car and began to strangle the victim with his hands. He then allegedly placed his arm around her throat and neck and strangled her until she passed out. He continued his violent attack by punching the victim in the head, eyes and mouth. Upon regaining consciousness, she attempted to call 911 for help, but Reed took her cell phone and fled the scene.
The victim drove herself to a family member’s home to receive help. 911 was called, and emergency responders transported the victim to the hospital for care.
Reed was located and arrested by Tulsa Police officers on Feb.17, 2020.
The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Cymetra M. Williams is prosecuting the case. Ms. Williams is a prosecutor from the U.S. Attorney’s Office in the District of New Jersey. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations. Ms. Williams recently extended six more months to assist with the mission.
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.
Machete assault sends Great Falls man to prisonRead the Press Release
GREAT FALLS–A Great Falls man who admitted assaulting another man with a machete in Browning on the Blackfeet Indian Reservation was sentenced today to one year and one day in prison and to two years of supervised release, Acting U.S. Attorney Leif Johnson said.
Shem Abram Killsnight, 42, pleaded guilty on Oct. 19, 2020 to assault with a dangerous weapon.
Chief U.S. District Judge Brian M. Morris presided. Killsnight was ordered to self report to prison.
In court documents filed in the case, the government alleged that on June 4, 2019, Killsnight went to the residence of the victim, identified as John Doe, on the Blackfeet Indian Reservation. Killsnight brought a machete, and the victim believed Killsnight was under the influence of methamphetamine. Killsnight swung the machete at the victim and struck him in the hand. The victim sought medical treatment for the wound.
Assistant U.S. Attorneys Kalah Paisley and Cassady Adams prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Liberian Man Sentenced to 27 Months for Bank FraudRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Mark Clark, 45, of Liberia, was sentenced today to 27 months in prison by the Honorable Maryellen Noreika, U.S. District Judge for the District of Delaware. Clark had pled guilty in October 2020 to one count of bank fraud.
According to court documents, Clark opened personal and business bank accounts at numerous financial institutions in his own name and in the name of other individuals, including his own deceased relatives, for the purpose of receiving fraudulently obtained wire transfers from unwitting victims. Once the victims’ money hit Clark’s accounts, he would convert a portion of it for his own use and distribute the rest to others involved in the fraudulent schemes, including to individuals in Ghana.
Clark received over $250,000 in fraudulently obtained funds between July 2017 and August 2018. The victims tricked into sending money to Clark’s accounts included five individuals who were victimized through Internet-based romance fraud. Each victim was contacted online by a fraudster who gained the victims’ confidence by purporting to be in an “online relationship” with the victim and convincing the victims to send money through trickery. A common ruse involved the fraudster purporting to be an American servicemember stationed overseas in need of financial assistance to return home.
Clark also received fraudulently obtained funds from corporate and government victims. Clark received two fraudulent deposits from the United States Social Security Administration (“SSA”) after fraudsters compromised the social security numbers of two victims and directed the SSA to send money to Clark instead of the intended beneficiaries. And he received one fraudulent deposit from a life insurance company after computer hackers compromised the company’s computer systems and directed the company to send Clark an insurance disbursement intended for somebody else.
U.S. Attorney Weiss stated, “Internet-based fraud scams are a nationwide problem that frequently target the most vulnerable members of our society. These scams, which often involve sophisticated groups of individuals all over the world, cannot succeed without the involvement of individuals like Clark who agree to receive the illicit proceeds and further distribute the proceeds to others participating in the fraud. My office will continue to prosecute those who engage in these fraud schemes in any capacity.”
“Mr. Clark not only deceived vulnerable individuals, but also engaged in multiple schemes to defraud the Government,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “We’re sending a clear message to the criminals who orchestrate these schemes: We’ll come after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you.”
In addition to the prison term, Judge Noreika ordered that Clark pay restitution in the amount of $85,779, as well as a 3-year period of supervised release.
This case was investigated by FBI-Baltimore Division’s Wilmington Resident Agency with assistance from the Social Security Administration Office of the Inspector General and the Delaware State Police, and is being prosecuted by Assistant U.S. Attorney Jesse S. Wenger.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-75.
Kilogram-Level Drug Distributor Sentenced to Second Federal Prison TermRead the Press Release
WILMINGTON, Del. – A Wilmington man was sentenced on March 10, 2021 by The Honorable Leonard P. Stark, Chief Judge, United States District Court for the District of Delaware, to 10 years in prison for possessing more than five kilograms of cocaine, as well as marijuana and MDMA (ecstasy), all with intent to distribute.
According to court documents, Ricardo Rogers, 47, was a high-level cocaine dealer who received shipments of cocaine into Delaware from Puerto Rico. From approximately December 2016 until December 2017, the defendant received and distributed generally weekly shipments of between one-half kilogram to two kilograms of cocaine. Rogers also sold marijuana and ecstasy. He was arrested by the Drug Enforcement Administration in January 2018 in possession of six pounds of marijuana. After his arrest, Rogers revealed that he had over 800 ecstasy pills in his car. Because of his extensive criminal record, which includes a federal drug conviction and state convictions for violent crimes, the defendant qualified as a career offender under the United States Sentencing Guidelines.
U.S. Attorney David C. Weiss stated, “As evidenced by the Court’s sentence, repeat drug traffickers who insist upon making the drug trade their profession will be prosecuted to the fullest extent of the law. My office and our law enforcement partners will continue to aggressively investigate and prosecute those who continue to engage in a life of crime.”
This case was prosecuted by Assistant U.S. Attorney Jennifer K. Welsh and investigated by the Drug Enforcement Administration.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 18-cr-0021-LPS.
Kanawha County Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County woman pleaded guilty today to possession with intent to distribute five grams or more of methamphetamine. Raechel Cooper, 30, was charged by a single count Information on March 8, 2021.
According to the plea agreement and statements made in court, Cooper admitted that on April 9, 2018, Metropolitan Drug Enforcement Network Team (MDENT) officers executed a search warrant at her East Bank residence. Officers found Cooper in her vehicle along with eight bags of methamphetamine hidden in a hollowed-out teddy bear. An additional amount of methamphetamine was found inside her residence. In total, Cooper was found to be in possession of over 350 grams of methamphetamine.
Cooper faces a mandatory minimum of five years and up to 40 years in prison when she is sentenced on June 15, 2021.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nick Miller is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00036.
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Justice Department Seeks to Shut Down Illinois 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 seeking to bar a Rockford-area tax return preparer from preparing federal income tax returns for others.
The civil complaint was filed against Gretchen Alvarez, aka Gretchen Trejo. The suit is also brought against defendant Sick Credit Repair Tax and Legal Services, which the complaint alleges is the name under which Alvarez sometimes does business. According to the complaint, Alvarez prepares federal income tax returns for Rockford-area taxpayers that significantly understate her customers’ tax liabilities by fabricating business losses. The suit also alleges that Alvarez fraudulently claimed that some of customers attended higher education institutions, when they did not, in order to fraudulently claim education credits on the returns she prepared.
In particular, the suit alleges that Alvarez fabricated money-losing “side businesses” to fraudulently reduce her customers’ legitimate taxable income. According to the complaint, the IRS has interviewed several of Alvarez’s customers, who allegedly stated that they did not operate the listed businesses or incur the business expenses reported on their returns, and did not give Alvarez any reason to believe that such businesses existed.
The complaint alleges that, by repeatedly understating her customers’ tax liabilities, Alvarez has caused the United States to lose substantial tax revenue. According to the complaint, the true scope of her activities is unknown because she does not sign the tax return as the paid preparer, nor does she provide her IRS-issued identification number on returns she prepares, as required by law.
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 rental car company manager for scheming to defraud his employerRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced David Kramer to 24 months in prison today. The 42-year-old Parkland, Florida resident pleaded guilty to five counts of wire fraud.
In his role as a Risk Manager with a Florida-based branch of Enterprise Holdings, Inc., Kramer would request checks from the accounts payable team for various expenditures related to E.H.I.’s business functions.
Beginning in 2009, Kramer began requesting checks for fictitious and fraudulent expenses. Kramer, to support his check requests, would create false and fraudulent requests for payment from various entities in the south Florida area including the sheriff’s offices, the Florida Department of Transportation and judicial courts among others.
Once Kramer received the check, he would deposit the money into his personal bank accounts. Kramer then used the fraudulently obtained funds for personal purchases and expenses including luxury vacations, expensive watches and jewelry, and designer clothing. Kramer submitted at least 694 false and fraudulent check requests resulting in an actual loss to E.H.I. of $1,457,247.82. As a part of the sentencing, Kramer is ordered to pay full restitution to E.H.I.
“This case is a perfect example of how getting the FBI involved sooner rather than later can lead to the most successful outcome possible,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “The earlier we get involved, the more options we have to build an effective investigative strategy and hold criminals accountable.”
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Lindsay McClure-Hartman is handling the case.
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Judge sentences Poplar Bluff man to 35 years for assault in Dunklin County JailRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr. sentenced Shederic Anderson to 35 years in prison today. The 46-year-old Poplar Bluff, Missouri, resident was found guilty, in November 2019, on two counts of aggravated sexual abuse. Anderson also pleaded guilty, in December 2018, to escape from custody.
On July 26, 2018, Anderson escaped from the Cydkam Center in Neelyville, Missouri. Anderson signed out of the facility to go to work and never returned. Anderson was arrested and detained in the Dunklin County Jail. While in the Dunklin County Jail, he sexually assaulted another inmate. A jury found Anderson guilty, on November 15, 2019, for committing the assault on another inmate.
This case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol. Assistant United States Attorney Keith Sorrell handled the prosecution for the government.
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Judge sentences Arkansas man to 15 months for mail and wire fraudRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr. sentenced Antron F. Ramey to 15 months in prison today. The 22-year-old Batesville, Arkansas resident pleaded guilty, in August, to one count of mail fraud and three counts of wire fraud.
On March 28, 2018, the Arkansas Securities Commission issued a Cease and Desist Order against Ramey and AFR Brokerage LLC, ordering Ramey and AFR to cease soliciting financial investments from individuals.
In 2018, Ramey began soliciting investment funds from individuals for investment purposes. Ramey told those individuals that he would invest their money in cryptocurrency investment accounts or foreign currency investments with investment firms, including one legitimate investment firm known as Grand Capital. Ramey held himself out to the individual investors as a financial investment advisor working on behalf of Grand Capital. Ramey provided investors with a Financial Services Agreement which outlined Ramey’s investment services and the investments to be made on behalf of the investor. However, Ramey was not affiliated with any investment services firm and was merely taking the individuals’ money and converting it to Ramey’s own benefit.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Keith Sorrell handled the prosecution for the government.
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Indiana Man Sentenced to 38 Years in Federal Prison for Kidnapping a Child in Chicago SuburbRead the Press Release
CHICAGO — A federal judge today sentenced an Indiana man to 38 years in federal prison for kidnapping a ten-year-old child as she walked home from school in Calumet City.
On the afternoon of Dec. 20, 2017, BRYAN PROTHO grabbed the child as she walked on a sidewalk in the south suburb. Protho forcibly dragged the victim into a sport-utility vehicle and drove away. He then parked the vehicle in a nearby alley, assaulted the child, and threatened to kill her. The victim was able to get out of the car and flag down a passing vehicle, and law enforcement was contacted.
A jury last year convicted Protho, 42, of East Chicago, Ind., on one count of kidnapping. During a two-week trial in federal court in Chicago, the victim testified about her ordeal and identified Protho as her abductor.
U.S. District Judge Andrea R. Wood sentenced Protho to 38 years in prison, to be followed by 15 years of court-supervised release.
The Calumet City Police Department led the investigation, with assistance from the Chicago FBI Field Office and the Lansing Police Department.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher Fletcher, Chief of the Calumet City Police Department; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Richard Slough, Interim Chief of the Lansing Police Department.
“As this innocent child skipped home from school with dreams of the upcoming Christmas break in her head, Protho attacked and forever changed the life of this bright child,” Assistant U.S. Attorneys Christopher V. Parente and Kelly Guzman argued in the government’s sentencing memorandum. “He is the worst kind of predator – a child predator.”
Illegal Alien Sentenced to More Than Eight Years in Federal Prison for Armed Robbery and Brandishing a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Douglas Amilcar-Vasquez, age 35, of Mexico, to 100 months in federal prison, followed by three years of supervised release, for the armed robbery of a Takoma Park, Maryland, jewelry store on February 16, 2019, and for brandishing a gun during the robbery. Judge Grimm also ordered Amilcar-Vasquez to pay restitution of $174,967, which is the full amount of the victim’s loss. According to information presented at yesterday’s sentencing hearing, Amilcar-Vasquez has two previous convictions for illegally re-entering the United States after being deported.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Marcus Jones of the Montgomery County Police Department.
According to his plea agreement, Amilcar-Vasquez and his co-defendant, Ever Ramiro Torres Enriquez (“Torres”) robbed a Takoma Park jewelry store on February 16, 2019. Torres entered the jewelry store and pretended to be looking for jewelry for his girlfriend. Moments later, Amilcar-Vasquez entered the store brandishing a handgun and demanded cash and jewelry. At the same time, Torres pulled out a black rifle, which had been hidden under his clothes and, pointing the rifle at his victims, demanded money and jewelry. At one point during the robbery, Amilcar-Vasquez forcibly removed a necklace from around one customer’s neck. Torres and Amilcar-Vasquez stole $7,900 in cash and over 400 pieces of jewelry valued at $167,067.11. The defendants left the store and Amilcar-Vasquez used the gun to forcibly carjack two male victims in a nearby vehicle. The defendants then fled the scene in the stolen vehicle, which was later recovered.
Following the robbery, Amilcar-Vasquez and his relatives pawned some of the stolen jewelry. Video surveillance from a pawn shop in Houston, Texas showed Amilcar-Vasquez wearing the necklace that he forcibly removed from the neck of the victim at the jewelry store.
Neither defendant wore gloves during the robbery. Amilcar-Vasquez’s left palm print was lifted from one of the jewelry store’s glass counters and DNA found on gloves recovered from the carjacked vehicle matched DNA from Torres.
Upon his arrest, a vehicle used by Amilcar-Vasquez was searched. Law enforcement recovered the gun Amilcar-Vasquez brandished during the robbery—a 9mm pistol—which was loaded with 12 rounds of ammunition. Amilcar-Vasquez’s DNA was found on the gun.
Ever Ramiro Torres Enriquez, age 25, of Silver Spring, Maryland, was sentenced on January 12, 2021 to seven years and a day in federal prison for the armed robbery and for brandishing a gun during the robbery. Torres Enriquez was also ordered to pay restitution of $174,967.
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.
Acting United States Attorney Jonathan F. Lenzner praised the FBI and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Daniel C. Gardner, who prosecuted the case.
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Hidalgo County EMS owner convicted of bankruptcy fraudRead the Press Release
McALLEN, Texas – A 48-year-old man residing in Lyford has pleaded guilty to conspiracy to commit bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Kenneth B. Ponce is the CEO of Hidalgo County Emergency Services Foundation doing business as Hidalgo County EMS, South Texas Air Med and South Texas EMS (collectively referred to as Hidalgo County EMS). On Oct. 8, 2019, Hidalgo County EMS initiated bankruptcy proceedings in the Southern District of Texas (SDTX) Corpus Christi Division. Today, Ponce admitted that during the bankruptcy proceeding, he committed perjury when filing official forms requiring him to disclose financial affairs, debts and assets of Hidalgo County EMS. Ponce failed to disclose or falsified certain transactions in order to conceal property from the bankruptcy estate. He also fraudulently received material amounts of property from the bankruptcy estate and permitted others to continue to do so.
As part of the plea, Ponce admitted to fraudulent agreements involving an Edinburg property. The purpose was to forfeit equitable interests and restructuring of over $264,000 in order to give another individual preferential treatment over other creditors. In official forms filed with the bankruptcy court, Ponce did not disclose any prior agreements concerning the property or related equitable interests Hidalgo County EMS had possessed
Hidalgo County EMS was also paying WFAS Inc. for leases on the exclusive use of two airplanes. Ponce owned WFAS. In bankruptcy filings, Ponce said the leases were dedicated to emergency transfers. In reality, at least one of the planes was inoperable during portions of the bankruptcy. Ponce also personally used the planes or they were for chartered flights he had arranged. Ponce would retain the profit, while Hidalgo County EMS paid the leases.
Ponce also knew of certain payments Hidalgo County EMS made towards a residence in McAllen he personally used as well as other payments not actually for the benefit of Hidalgo County EMS. Ponce further admitted he received an interest payment from $50,000 another individual had embezzled from the Hidalgo County EMS bankruptcy estate.
He did not disclose any of this to the bankruptcy court or Hidalgo County EMS creditors.
As part of his plea, Ponce also agreed to a money judgment in the amount of $124,010.15 and restitution to Hidalgo County EMS or its successors.
U.S. District Judge Randy Crane accepted the plea and set sentencing for May 26. At that time, Ponce faces up to five years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez Jr. prosecuted the case. AUSA Richard Kincheloe is representing the United States in the underlying bankruptcy proceedings.
Hialeah Tax Preparer Charged with COVID-19 Loan FraudRead the Press Release
Miami, Florida – 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.
U.S. Attorney Ariana Fajardo Orshan of the U.S. Attorney’s Office for the Southern District of Florida; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting Special Agent in Charge Tyler R. Hatcher 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.
Assistant U.S. Attorney Christopher Browne of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Della Sentilles of the Justice Department’s Fraud Section 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.
An information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-20160.
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GPS Tracking Device Aids in Raleigh Man’s ProsecutionRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 71 months in federal prison for robbing the BP Gas station located at 4330 Louisburg Road in Raleigh.
According to court documents, on December 30, 2019, Marvin Newell, 53 entered a BP Gas Station in Raleigh, North Carolina, and walked to the beer aisle. After he selected several bottles of alcohol, he approached the front counter and asked the clerk for some cigars. After the clerk scanned the merchandise, Newell inserted his credit card into the card reader as if he was going to pay, and then removed it and told the clerk to open the register drawer. Newell told the clerk again to open the drawer and pointed his finger at her through his shirt, as if he was holding a gun. Fearful that Newell had a gun, the clerk opened two drawers and gave the defendant $63 currency, as well as a hidden tracking device that was stuck between two bills. Newell then instructed the clerk to go with him to the back of the store, but the clerk refused. Newell exited the store with the $63 currency, as well as the merchandise, which was valued at approximately $19.
Law enforcement began to search for Newell and used the tracking device to ping his location. When officers located Newell and activated their blue lights, he failed to stop and began driving in the wrong direction on the street. Newell attempted to flee the area and eventually hit a curb, which disabled the vehicle axle. Newell then fled on foot from the officers. Newell was apprehended after a short chase. He opened his hand, which revealed a handful of currency (the currency stolen from the BP Gas Station), and stated, “that’s my money.” Law enforcement took control of the currency, as well as the hidden tracker.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00316-D.
Former New Mexico Taxation and Revenue employee indicted for wire fraud, identity theft, money launderingRead the Press Release
ALBUQUERQUE, N.M. – George Martinez, 45, of Albuquerque, made an initial appearance in federal court today, charged in an indictment with 42 counts of wire fraud, six counts of money laundering and 42 counts of identity theft. An arraignment is scheduled for March 19. A federal grand jury indicted Martinez on March 12.
According to the indictment, from May 18, 2011, through July 16, 2018, Martinez allegedly used his position as the Unit Supervisor/Bureau Chief of the Questionable Refund Unit at the New Mexico Taxation and Revenue Department to fraudulently alter tax refunds and direct them to bank accounts that he controlled.
“When officials who are responsible for collecting taxes corruptly manipulate the system for their own benefit, it undermines the public’s confidence in all aspects of government,” said Acting United States Attorney Fred J. Federici III. “Fraud involving the tax system, as alleged in this indictment, deprives the State of needed revenues and increases the tax burden on all law-abiding New Mexicans. The prosecution of corrupt public officials is a high priority for the U.S. Attorney’s Office.”
“Public service is an honor and a privilege; use of that service to benefit one's self at the expense of the people undermines the trust of the people,” said Scott A. Rago, Acting Special Agent in Charge of the FBI Albuquerque Field Office. “To restore that trust, the FBI and IRS Criminal Investigation worked closely to bring the defendant to justice, sending a clear message that the breach of public trust will not be tolerated.”
“These charges should assure New Mexico residents that public servants will be investigated and charged for any alleged criminal activity,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “Everyone who holds a position of trust must be held to the highest standard.”
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Martinez faces a minimum of two years and up to 22 years in prison.
The FBI Albuquerque Field Office and the IRS Criminal Investigation Phoenix Field Office investigated this case with assistance from the New Mexico Taxation and Revenue Department’s Tax Fraud Investigations Division. Assistant U.S. Attorney Paul Schied is prosecuting the case.
Former Development Manager Sentenced for Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE, RI – A former construction project manager for a Newport-based real estate development company who admitted, on the eve of trial, that he executed a nearly two-year long scheme to defraud his employer, banks, and construction companies of more than $200,000, which he used to fund the purchase of a boat, pay yacht club fees and scuba diving expenses, and to take trips to Florida, Jamaica, Mexico, and Grand Cayman, was sentenced today to 42 months in federal prison.
According to court documents, within two months of being hired by Landings Real Estate Group (Landings), Gregory Meeker, 57, of Barrington, who oversaw various real estate development projects including the Newport Beach Club and Long Meadow Landings projects, devised a scheme to submit invoices to Landings, many of which were false or inflated, in the names of subcontractors. Landings made checks payable to the subcontractors that were then provided to Meeker for delivery. Instead of delivering the checks to the subcontractors, Meeker forged endorsements on the back of the checks and deposited them into his own bank account.
Meeker admitted that, in some instances, false invoices and subsequently forged endorsements on checks bore the names of individual subcontractors as opposed to business names, including at least two individuals known to him.
Meeker also admitted that he provided Landings with false paperwork related to GMC Construction, an entity he previously operated, including a false name and address, and the use of the Social Security number of an unrelated individual. He prompted Landings to issue over $12,000 in checks to GMC Construction, which he endorsed and deposited into his own bank accounts.
Additionally, Meeker admitted that he forged the endorsement of the Town of Portsmouth on the back of three checks made payable to “Town of Portsmouth – Inspection Department.” He deposited the checks into an account he controlled and used for his fraudulent activity.
Meeker pleaded guilty on January 23, 2020, to twelve counts of bank fraud and two counts of aggravated identity. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 42 months in federal prison to be followed by two years of federal supervised release, and to pay $1,400 in special assessments, announced Acting United States Attorney Richard B. Myrus and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
A restitution order will be forthcoming from the court.
The case, investigated by the Federal Bureau of Investigation, was prosecuted by Assistant United States Attorneys Sandra R. Hebert and Christine D. Lowell.
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Former Construction Company Owner Indicted for Defrauding Federal Program Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
Today, a federal grand jury in San Antonio, Texas, returned an indictment charging the former owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States.
According to court documents, Michael Angelo Padron was charged with one count of conspiracy to commit wire fraud and to defraud the United States and eight counts of wire fraud. Padron, along with co-conspirators Michael Wibracht and Ruben Villarreal, allegedly conspired to defraud the United States in order to obtain valuable government contracts under programs administered by the U.S. Small Business Administration (SBA) for which neither his nor his co-conspirators’ companies were eligible. Villarreal and Wibracht pleaded guilty to the scheme on Nov. 20, 2020, and March 4, 2021, respectively. Wibracht pleaded guilty to one count of conspiracy to commit wire fraud and defraud the United States. Villarreal pleaded guilty to one count of conspiracy to defraud the United States.
“Today’s charges show the division’s commitment to holding individuals accountable when they cheat the government procurement process,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “This conspiracy robbed contract opportunities from honest businesses run by those who were injured in the service to our country. With support from our law enforcement partners, the Antitrust Division will continue to prosecute those who cheat the system to gain taxpayer dollars.”
The indictment alleges that Padron, Wibracht, and Villarreal conspired to defraud the United States by interfering with the function of the SBA and fraudulently obtaining money from as early as 2004 continuing through at least 2017. As part of the scheme, Padron is charged with conspiring to install Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). However, Padron, along with his co-conspirator and business partner Wibracht, allegedly exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control in order to secure over $250 million in government contracts that were “set aside” for SDVOSBs in order to benefit their larger, non-qualifying businesses. The SBA administers the SDVOSB program, which is designed to increase the number of government contracts awarded to small businesses owned and controlled by service-disabled veterans. To qualify as an SDVOSB, a company, among other things, must be owned and controlled by a service-disabled veteran.
“Scheming to fraudulently obtain federal funds that are meant to provide assistance to the nation’s small businesses is unacceptable,” said Inspector General Hannibal “Mike” Ware of the SBA. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the Antitrust Division and our law enforcement partners for their dedication and pursuit of justice.”
“Today’s indictment represents the extraordinary efforts by the joint investigative agencies in upholding the integrity of our procurement process while protecting special business opportunities for our veterans who have so bravely served and sacrificed for our country,” said Special Agent in Charge Ray A. Rayos of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, Southwest Fraud Field Office.
“It is imperative that contractors are above-board in their dealings with the government,” said Special Agent in Charge Jamie Willemin of the General Services Administration (GSA) Office of Inspector General (OIG), Southwest and Rocky Mountain Division. “GSA OIG is committed to working with our investigative partners and the Department of Justice to hold accountable those who fraudulently obtain contracts meant for legitimate small and disadvantaged businesses.”
“The VA OIG commends our law enforcement partners for bringing these additional charges to achieve justice in this case,” said Inspector General Michael J. Missal of the Department of Veterans Affairs (VA). “The VA OIG remains diligent in investigating all who commit fraud and seek to benefit improperly from programs that are meant for deserving veterans.”
“This outcome is a testament to the commitment of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners in safeguarding the integrity of the DoD contracting process,” said Acting Special Agent-in-Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will utilize all available resources to pursue allegations of fraud impacting DoD contracts, bringing to justice those who seek to enrich themselves through the exploitation of the Small Business Administration program designed to help SDVOSBs.”
For conspiracy to commit wire fraud and to defraud the United States, Padron faces a maximum penalty of five years in prison and a $250,000 fine. For each wire fraud count, Padron faces a maximum penalty of 20 years in prison and a $250,000. The maximum fine for an individual may be increased to twice the gain derived from the crime, or twice the loss suffered by victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The SBA OIG, U.S. Army CID Major Procurement Fraud Unit, GSA OIG, VA OIG, and DCIS are investigating the case, with assistance from the U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency.
The Antitrust Division’s Washington Criminal II Section is prosecuting the case. Special thanks are extended to Assistant U.S. Attorney William F. Lewis Jr. of the U.S. Attorney’s Office for the Western District of Texas.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement and grant and program funding at all levels of government — federal, state, and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CPA Sentenced to 24 months for Cheating on His Income TaxesRead the Press Release
Evansville – Acting United States Attorney John E. Childress announced today that Mark A. Harmon, 64, of Evansville, Indiana, was sentenced to 24 months in federal prison by U.S. District Judge Richard L. Young on multiple counts of tax evasion.
“Do as I say, not as I do, was Mr. Harmon’s business practice,” said Childress. “Stealing from law abiding Americans and deceiving trusted clients will not be tolerated. Those thinking about engaging in this type of behavior during this tax season should think twice.”
Mark Harmon owned and operated Mark Harmon and Company, Certified Public Accountant and Consultants, in Evansville. He was an accountant for over 25 years and a CPA until his license expired in June 2015.
Harmon’s largest accounting client from 2012 through 2015 was a group of three related companies: Pittsburgh Tank and Tower Co., Pittsburgh Tank and Tower Maintenance, and Allstate Tower, Inc. (collectively, Pittsburgh Tank and Tower Group (“PTTG”)). Harmon had been working with those companies for over 25 years by performing accounting and financial audit services.
During the IRS examination, Harmon said he made approximately $75,000 per year in accounting fees from PTTG, and it was his practice to send PTTG an invoice for services rendered, which they always promptly paid. He further stated that PTTG did not issue him a Form 1099 for the tax years at issue because PTTG treated payments to Harmon as expense deductions for professional services. Further examination of Harmon’s accounting books showed approximately $435,000 in purported loans to Harmon from PTTG. Harmon said that PTTG would confirm the loans, and he produced invoices, some of which reflected a “Loan request.”
Agents also requested documents from PTTG. The CFO informed the agents that in the process of gathering the hard-copy invoices from their files, he observed that several invoices stated, “Loan request” and appeared to be altered. Company officials said that PTTG never loaned Harmon any money. Harmon had access to the company’s files during his year-end financial and tax returns preparation services, and they suspected that Harmon physically removed the original invoices from their files and altered the invoice description to state “Loan request.” The company located the original invoices in another format which did not include this description.
After the discrepancy in the invoices was discovered, Harmon admitted that he replaced the invoices in PTTG’s files with the ones matching the “Loan request” invoices. All the $435,000 falsely classified as loans from PTTG to Harmon was professional services income.
The examinations of Harmon’s 2012 through 2015 individual tax returns showed the following:
Calendar year 2012
Reported income of $11,342.00
Actual income approximately $99,138.00
Failed to pay approximately $31,293.00 in taxes
Calendar year 2013
Reported income of $8,622.00
Actual income approximately $167,533.00
Failed to pay approximately $54,211.00 in taxes
Calendar year 2014
Reported income of $25,918.00
Actual income approximately $183,826.00
Failed to pay approximately $59,519.00 in taxes
Calendar year 2015
Reported income of $9,349.00
Actual income approximately $199,512.00
Failed to pay approximately $63,137.00 in taxes
This investigation was conducted by the Internal Revenue Service Criminal Investigation.
“As a former CPA and accountant, Mr. Harmon has full knowledge of our tax laws. Mr. Harmon chose to blatantly ignore the tax laws by filing false returns to benefit himself” said Acting Special Agent in Charge Tamera Cantu of IRS Criminal Investigation’s Chicago Field Office. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently file tax returns each year. This sentencing sends a message that the IRS is working to make sure that all taxpayers file and pay their fair share of taxes.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Harmon must also pay $208,160 in restitution and will serve one year of supervised release following his imprisonment.
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 individuals engaged in income tax evasion; the filing of false tax returns; schemes to defraud involving tax returns; stolen identify refund fraud; and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.4.
Foley Man Sentenced to 70 Months for Being a Felon in Possession of FirearmsRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Aaron Lavell Lamar, 30, of Foley, Alabama, was sentenced in federal court for being a convicted felon in possession of firearms. Lamar pleaded guilty to the charge in December 2020.
In connection with his guilty plea, Lamar admitted that on September 30, 2019, he possessed a .40-caliber pistol and a .38-caliber revolver in a car that he was driving in Foley. At the time he possessed the firearms, Lamar had prior felony convictions, including Unlawful Distribution of a Controlled Substance and Possession of Marijuana, First Degree in the Circuit Court of Baldwin County, Alabama. Lamar admitted that at the time he possessed the firearms, he knew he was a convicted felon and therefore could not legally possess firearms. Evidence introduced at Lamar’s sentencing hearing further established that Lamar possessed the firearms, one of which was loaded and chambered, in close proximity to a small amount of crack cocaine and a digital scale.
United States District Court Judge Jeffrey U. Beaverstock imposed a sentence of 70 months’ incarceration, to be followed by a three-year term of supervised release. During that time, Lamar will undergo testing and treatment for substance abuse and mental health counseling. The court did not impose a fine, but the judge ordered Lamar to pay $100 in special assessments.
This case was investigated by the Foley Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin Roller.
Florida Man Sentenced to 55 Months in Prison for Violating Sanctions Against Senior Venezuelan LeadersRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that VICTOR MONES CORO (“MONES CORO”) was sentenced today to 55 months in prison, in connection with a scheme to provide private charter flights to two prominent members of former Venezuelan President Nicolás Maduro’s inner circle: former Venezuelan Vice President Tareck Zaidan El Aissami Maddah (“El Aissami”) and his frontman, Samark Jose Lopez Bello (“Lopez Bello”). These flight services violated sanctions imposed by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”). MONES CORO pled guilty to a five-count Indictment on January 4, 2021, and was sentenced today by U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Audrey Strauss said: “Victor Mones Coro led a concerted, sustained, multi-year scheme to provide millions of dollars’ worth of illicit flight services to Venezuelan leaders in direct contravention of our country’s sanctions regime and foreign policy. Today’s sentence serves as a reminder that, together with our law enforcement partners, we will aggressively prosecute sanctions violators to protect our national security.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “HSI is instrumental in protecting the interests of the United States by leveraging our unique and expansive authorities to root out the corrupt regimes operating around the globe. For over 25 years, the HSI New York El Dorado Task Force has investigated and dismantled complex international money laundering schemes along with other serious financial crimes. Working with our law enforcement partners around the country and around the world, we continue to safeguard our financial systems from international corruption that enriches the coffers of dictators and their cohorts.”
According to the Indictment, court filings, and statements made during court proceedings:
Between February 2017 and March 2019, MONES CORO provided travel services, including private jet charters, to El Aissami and Lopez Bello, as well as their associates, in violation of OFAC sanctions. El Aissami became the vice president of Venezuela in approximately January 2017 and is currently Venezuela’s Minister of Industry and National Production. In February 2017, OFAC designated El Aissami and Lopez Bello as Specially Designated Narcotics Traffickers pursuant to the Kingpin Act and related regulations. As a result of OFAC’s designations, U.S. persons are generally prohibited from, among other things, engaging in transactions with or providing services to El Aissami and Lopez Bello absent authorization from OFAC.
To evade the OFAC designations, MONES CORO designed an elaborate criminal scheme to enrich himself and provide flight services to El Aissami and Lopez Bello, among other influential Venezuelans in Maduro’s inner circle, including the president of Venezuela’s Supreme Court, Maikel Moreno, who had also been previously sanctioned by OFAC. In spearheading this criminal scheme, MONES CORO used his U.S.-based company, American Charter Services (“ACS”), its planes, and its employees to fly Lopez Bello, El Aissami, and others around the world, including to foreign countries of strategic importance to the Maduro regime such as Russia and Turkey.
MONES CORO also provided flights in furtherance of Maduro’s May 2018 campaign for re-election, a corrupt campaign through which Maduro illegitimately maintained control of Venezuela. In particular, between approximately February and May 2018, MONES CORO and ACS arranged between 20 to 25 domestic Venezuelan flights for the Maduro campaign. These flights transported people, campaign materials, and food, among other things, and were coordinated with associates of El Aissami and Lopez Bello.
To avoid detection, MONES CORO and his co-conspirators, including Joselit Ramírez Camacho, Venezuela’s current Superintendent of Cryptocurrencies, engaged in various forms of subterfuge. They used code names, falsified flight manifests and invoices, communicated over encrypted messaging applications, received cash flown into the United States from Venezuela, and accepted wire transfers from a front company tied to the sanctioned Venezuelan leaders. MONES CORO also tried to cover his tracks by directing one of his pilots to lie to law enforcement.
MONES CORO perpetrated these crimes at a time when the United States and its allies were engaged in the crucial undertaking of depriving Venezuela and its leadership of resources for its malign, undemocratic, and deadly activities – including its systematic and oftentimes fatal repression of activists, its subversion of Venezuelan democratic institutions, and its corrupt plundering of Venezuela’s natural resources. Maduro and others are charged with narco-terrorism and related crimes in a Superseding Indictment also pending before Judge Hellerstein. In a separate Superseding Indictment, El Aissami, Lopez Bello, and Ramírez Camacho are charged with sanctions violations based on their roles in the scheme with MONES CORO.
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In addition to his prison sentence, MONES CORO, 52, of Florida, was sentenced to two years of supervised release and ordered to pay a fine of $250,000.
Ms. Strauss praised the outstanding efforts of U.S. Customs and Border Protection, and the DEA’s Special Operations Division Bilateral Investigations Unit. Ms. Strauss also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division, and OFAC.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg and Amanda Houle are in charge of the prosecution, with assistance from David Recker of the Counterintelligence and Export Control Section.
The charges against Maduro, El Aissami, Lopez Bello, and Ramírez Camacho are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Firearms Straw Purchaser Sentenced to Federal PrisonRead the Press Release
A federal judge in San Antonio yesterday sentenced 40-year-old Clarence McFarland to 37 months in federal prison followed by three years of supervised release for fraudulent purchases of .50 caliber rifles, announced U.S. Attorney Ashley C. Hoff, Homeland Security Investigations (HSI) Deputy Special Agent in Charge Craig Larrabee, San Antonio Division and Special Agent in Charge Fred Milanowski, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Houston Division.
On October 1, 2020, the San Antonio resident pleaded guilty to one count of conspiracy to make a false statement during the purchase of a firearm. According to court records, McFarland purchased and recruited others to purchase .50 caliber semi-automatic rifles from local firearms dealers in 2017 and 2018. McFarland provided the funds to purchase the rifles and paid others to fill out the Form 4473s purporting to be the actual buyers of those firearms. McFarland admitted to federal agents that he helped acquire eight .50 caliber rifles for another person. In 2018 three rifles were recovered in Mexico that were traced back to McFarland and his straw purchasers.
“This sentence is yet another example of the commitment we have made with our partners to relentlessly pursue those who violate federal firearms laws in order to traffic dangerous weapons within our communities and across the border,” said U.S. Attorney Hoff.
“By putting weapons smugglers behind bars, it allows law enforcement to cut the supply of firearms before they fall into the hands of the drug cartels who pose a threat both here and abroad,” said HSI Deputy Special Agent in Charge Larrabee. “HSI will continue working with our federal law enforcement partners both domestic and international in this effort.”
“Stemming the flow of Illegally obtained guns that are then trafficked across the border and used in violent criminal activity remains at the core of the ATF mission,” said ATF Special Agent in Charge Milanowski.
HSI and ATF investigated this case.
This case is part of Operation Undaunted, a program which draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to tackle violent crime and protect the communities of central and west Texas.
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Feds Seek Tips from Public to Identify Smugglers of 13 who Died in CrashRead the Press Release
Assistant U. S. Attorneys Tim Coughlin (619) 546- 6768, Victor White (619) 546-8439 and Blair Perez (619) 546-7963
NEWS RELEASE SUMMARY – March 17, 2021
SAN DIEGO – Federal officials are asking for the public’s help in identifying the smugglers whose actions led to the deaths of 13 Mexican and Guatemalan nationals in a crash of an overloaded vehicle on March 2 near Holtville, California.
The tip line number is (760) 335-5343.
U.S. Border Patrol was notified of the crash by the California Highway Patrol at about 6:30 a.m. on March 2. In a subsequent review of border surveillance camera footage, Border Patrol agents discovered that a 10-foot section of the border fence had been cut and at least two SUVs had driven northbound through the open section.
Border Patrol agents located one of the SUVs broken down on Interstate 8 near Holtville. Agents arrested 19 undocumented migrants located beside the disabled vehicle. Shortly thereafter, agents found the second SUV at the crash scene on Norrish Road at Highway 115, a remote stretch of road used mostly by farmers. Twelve people died at the crash site; one died later. Multiple individuals were airlifted to hospitals with significant injuries. A 23-year-old daughter died in her mother’s arms at the scene of the crash.
“This tragic case is a grim reminder that putting your faith and future in the hands of smugglers is a very dangerous gamble,” said U.S. Attorney Randy Grossman. “Smugglers are motivated by greed and care nothing for the people they put in harm’s way. We will aggressively prosecute smugglers who recklessly cause deaths.”
“Homeland Security Investigations is conducting a criminal investigation into the human smuggling networks that callously and repeatedly place human lives in danger, such as the events that resulted in death during the March 2nd smuggling incident,” said Cardell T. Morant, Special Agent in Charge for HSI in San Diego. “HSI is asking for the public’s help in bringing the people responsible for the activity that led to the tragedy on March 2nd to justice by providing any information to the HSI Calexico tipline at (760) 335-5343.”
Federal officials wish to thank the Mexican and Guatemalan consulates for their assistance in notifying family members of those individuals who died in the crash and in identifying and contacting family members of those hospitalized as a result of this tragedy.
Federal Indictment Charges Henderson County Man with Naturalization and Passport FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Herbert Leonel Diaz, 62, a former resident of Henderson County, N.C., with naturalization fraud and passport fraud, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Thomas Giles, Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO).
According to allegations contained in the federal indictment, from December 2003 to August 2006, while residing in Corona, Calif., Diaz committed sexual crimes against a child and was subsequently charged with multiple state offenses. In August 2006, the minor victim reported Diaz’s criminal conduct to law enforcement authorities. The following day, Diaz left California and moved to Henderson County, N.C.
The criminal indictment alleges that in November 2010, while residing in Henderson County, Diaz signed and submitted an application for naturalization to the U.S. Citizenship and Immigration Services (CIS). According to the indictment, Diaz lied on the application form he submitted by responding “No” to the question “Have you ever committed a crime or offense for which you were not arrested?” Diaz also signed the form, certifying that his answers were true and correct.
As alleged in the indictment, in March 2010, Diaz appeared in person at the CIS office in Charlotte for a naturalization interview. During the interview, Diaz swore under oath that his responses on the naturalization application were true and correct. At the conclusion of the interview, Diaz signed his naturalization application in the presence of an officer and swore under penalty of perjury that the contents of his application were true and correct. On March 30, 2011, Diaz appeared again in person at the CIS office in Charlotte and participated in a naturalization ceremony. Diaz was granted U.S. citizenship and received a Certificate of Naturalization.
According to the indictment, in May 2011, Diaz applied for a U.S. passport and submitted his Certificate of Naturalization as evidence of eligibility. The indictment alleges that Diaz also signed the passport application form, certifying that he did not knowingly and willfully make any false statements or included false documents in support of his application. Diaz was issued a U.S. passport in June 2011. In July 2012, law enforcement arrested Diaz on an outstanding warrant from the State of California related to his sexual crimes against the minor victim and he was extradited to California. In March 2014, Diaz pleaded guilty to five counts of lewd acts with a child and was sentenced to 35 years in prison.
Diaz will be scheduled to appear in federal court in Charlotte. The maximum prison sentence for naturalization fraud and passport fraud is 10 years and a $250,000 fine per charge.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today's announcement, Acting U.S. Attorney Stetzer thanked ICE-ERO for their investigation of the case.
Assistant U.S. Attorney Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Federal Criminal Complaint Filed in Connection with Deaths of Illegal AliensRead the Press Release
In Del Rio today, federal authorities filed a criminal complaint charging 24-year-old Austin resident Sebastian Tovar with transporting illegal aliens resulting in death, announced U.S. Attorney Ashley C. Hoff and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
The federal criminal complaint alleges that on March 15, 2021, Tovar was traveling in a maroon pickup truck on FM 2523 near Del Rio when a Texas Department of Public Safety trooper attempted to stop him for speeding. Tovar failed to stop and a pursuit ensued. Tovar led the trooper on a chase for approximately 50 miles, at times reaching speeds over 100 miles per hour. Traveling north into the southbound lane on Highway 277, Tovar collided with another vehicle head-on, resulting in the death of eight illegal aliens that had been in Tovar’s pickup truck. The driver and passenger of the vehicle into which Tovar collided are hospitalized and in stable condition.
Furthermore, the complaint alleges that following the crash, Border Patrol agents on the scene encountered a beige pickup truck stopped in traffic on Highway 277 near the crash site. While agents were directing traffic, multiple occupants jumped out of the beige pickup and fled the scene. Agents subsequently apprehended twelve illegal aliens who fled that truck. Two of the illegal aliens, both Mexican citizens, confirmed they were part of a failed human smuggling attempt in which the group illegally crossed into the U.S. and were divided between the maroon and beige pickup trucks for transport purposes.
Tovar, who remains in federal custody, faces up to life in federal prison upon conviction.
HSI and the Texas Department of Public Safety, with the assistance of the U.S. Border Patrol, are conducting this ongoing investigation. Assistant U.S. Attorney Joshua Banister is prosecuting this case.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
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Ex-Federal Correctional Officer Sentenced to 15 Months in Prison for Taking over $15,000 in Bribes and Smuggling Contraband for InmatesRead the Press Release
LOS ANGELES – A former Bureau of Prisons (BOP) correctional officer at the Federal Correctional Complex, Victorville was sentenced today to 15 months in federal prison for accepting more than $15,000 in cash bribes in exchange for smuggling contraband – including methamphetamine and cell phones – into the complex’s high-security penitentiary.
Paul James Hayes II, 52, of Victorville, who retired from his job with the BOP in March 2019, was sentenced by United States District Judge Michael W. Fitzgerald. Hayes pleaded guilty in January 2020 to one count of conspiracy and one count of acceptance of a bribe by a public official.
Hayes was a lieutenant with BOP’s Special Investigation Services (SIS), a unit that investigates illegal activity by correctional officers and inmates. From early 2018 to September 2018, Hayes met in person with co-defendant Angel Marie Wagner, 44, of Buena Park, in parking lots of stores or restaurants in Victorville, and accepted cash bribes from her. In exchange for the bribes, Hayes accepted wrapped contraband -- including methamphetamine, suboxone and cell phones -- to be smuggled into the prison. Hayes then smuggled the contraband into the prison and provided it to inmate coconspirators, who then distributed the contraband to other inmates.
In total, Hayes accepted more than $15,000 in cash to smuggle contraband into the prison, and he smuggled at least four separate packages of contraband into the penitentiary.
Wagner pleaded guilty in July 2020 to one count of conspiracy and one count of bribery of a public official, and she was sentenced on February 4 to two years’ probation.
The U.S. Department of Justice Office of Inspector General and the FBI investigated this matter.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office prosecuted this case.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday for illegally reentering the United States after previously being deported.
Eddy Arias Tejada, 45, was sentenced by U.S. District Court Judge Leo T. Sorokin to 57 months in prison and three years of supervised release. Upon completion of his sentence, he will be placed into removal proceedings. Arias Tejada previously pleaded guilty to one count of unlawful reentry of a deported alien.
As stated during court hearings, Arias, a Dominican national, has been deported from the United States on three occasions between 1998 and 2017. Sometime after his 1998 removal, Arias illegally returned to the United States. In 2004, Arias was charged with cocaine distribution, convicted and sentenced to three years in prison. Upon completion of that sentence, Arias was placed into removal proceedings and deported on March 25, 2009 to the Dominican Republic.
Sometime after the 2009 removal, Arias illegally returned to the United States. In 2014, Arias was arrested in Quincy and determined to be illegally present in the United States. He was charged in federal court with illegal reentry of a deported alien and sentenced to 42 months in prison. Upon completion of that sentence, Arias was placed into removal proceedings and deported on March 7, 2017 to the Dominican Republic.
Sometime after his 2017 removal, Arias illegally returned to the United States. In August 2019, Arias was arrested in Quincy and charged with trafficking cocaine. That charge is currently pending in the Norfolk Superior Court. In May 2020, Arias was charged in this case.
Acting United States Attorney Nathaniel R. Mendell and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit prosecuted the case.
Defendant Charged in $1.4 Million Covid-19 Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent in Charge of the New York Regional Office of the U.S. Department of Labor Office of Inspector General (“DOL-OIG”), and Patrick Freaney, Deputy Special Agent in Charge of the New York Field Office of the U.S. Secret Service (“USSS”), announced today the unsealing of a complaint charging ELVIN GERMAN with wire fraud and aggravated identity theft in connection with a COVID-19 unemployment benefit scheme that resulted in the loss of more than $1.4 million from the New York Department of Labor (“NY DOL”). GERMAN was arrested on March 16, 2021 in the Bronx, New York, and will be presented this afternoon before United States Magistrate Judge Sarah L. Cave.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Elvin German used the identities of over 250 unknowing victims to file false claims in order to receive over $1.4 million in COVID-19 unemployment benefits. But investigators were able to detect a pattern to his alleged scam, partly because German typically used the same IP address and security question and answer – the name of family dog, Benji – to illegally submit applications on the DOL’s website. We thank our partners at DOL and Secret Service for alertly detecting German’s attempt to profiteer from funds earmarked to provide relief for families struggling with financial hardships resulting from the ongoing pandemic.”
DOL-OIG Special Agent in Charge Michael C. Mikulka said: “Investigating fraud involving the Unemployment Insurance Program is an important part of the mission of the U.S. Department of Labor Office of Inspector General, particularly now when our nation is providing billions of dollars in unemployment benefits to American workers in need due to the economic effects of the COVID-19 pandemic. We will continue to work with our law enforcement partners to vigorously investigate unemployment insurance fraud.”
USSS Deputy Special Agent in Charge Patrick Freaney said: “It is a priority of the U.S. Secret Service to investigate and hold responsible those who manipulate financial programs for their own personal gain. In this case, the defendant allegedly used personally identifiable information of over 200 individuals to file fraudulent unemployment insurance claims resulting in over a million dollars of loss. The Secret Service looks forward to our continued partnership with the U.S. Department of Labor as we collectively pursue those who seek to commit unemployment insurance fraud.”
As alleged in the Complaint[1]:
From May 2020 through March 2021, ELVIN GERMAN engaged in a scheme to obtain COVID-19 unemployment benefits by fraudulently filing and verifying applications using the names and social security numbers of more than 250 other people. The NY DOL was alerted to the suspicious activity based on metadata associated with the applications (the “Applications”), which indicated that the Applications were either submitted and/or verified on a weekly basis from the same internet protocol (“IP”) address. Additionally, the Applications had the same security questions and responses, including that the applicant’s first pet was named “Benji.” After identifying the residence assigned to the IP address, DOL-OIG and USSS conducted a joint search of the residence, locating, among other items linked to GERMAN, approximately $7,000 in cash, a computer loaded to the NY DOL unemployment benefits page with the personal identifying information of four individuals named in the Applications open in an adjacent computer file, and, consistent with the security question used in the fraudulent applications – a dog wearing a collar inscribed with the name “Benji.” As a result of GERMAN’s scheme, the NY DOL authorized the release of more than $1.4 million of COVID-19 unemployment benefits.
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ELVIN GERMAN, 41, is charged with (1) wire fraud, which carries a maximum sentence of 20 years in prison, and (2) aggravated identity theft, which carries a mandatory two-year consecutive sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
Ms. Strauss praised the outstanding investigative work of DOL-OIG, the USSS, and the NY DOL.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Danielle M. Kudla is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.