Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 March 2021
West Virginia Man Sentenced for Role in DS44 Drug Trafficking RingRead the Press Release
PITTSBURGH - A resident of Hundred, West Virginia, has been sentenced in federal court to time served and 3 years’ supervised release on his conviction of conspiring to distribute fentanyl, heroin, and other drugs, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Jesse Tedrow, age 28. Tedrow is one of 37 defendants charged in the Indictment.
According to information presented to the court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Jesse Tedrow was identified as a low-level fentanyl and heroin distributor through intercepted communications and surveillance conducted as part of the investigation. Tedrow accepted responsibility for the distribution of 18 grams of a mixture of fentanyl and heroin.
Prior to imposing sentence, Judge Stickman noted that Tedrow’s criminal conduct appeared to be directly related to his own drug addiction and ordered that he complete a drug treatment program as part of his sentence.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Webster City Man Sentenced to Federal Prison for Child PornRead the Press Release
A man who received and distributed child pornography was sentenced February 26, 2021, to more than 14 years in federal prison.
Kevin Eugene Dill, age 56, from Webster City, Iowa, received the prison term after an October 9, 2020, guilty plea to one count of distribution of child pornography and one count of receipt of child pornography.
In a plea agreement, Dill admitted that between March 2012 through June 2020, he knowingly received and possessed over thousands of images and videos of child pornography. In September of 2017, an FBI Special Agent operating in an undercover capacity conducted several undercover sessions with Dill, wherein Dill distributed child pornography to the undercover agent. On October 31, 2017, law enforcement executed a search warrant at Dill’s residence, and Dill admitted to receiving child pornography. Despite being confronted, Dill continued to access child pornography utilizing PayPal to purchase child pornography from a Chinese website. When Dill was arrested in June 2020, he again admitted to accessing child pornography for sexual gratification.
Dill was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Dill was sentenced to 169 months’ imprisonment. He was ordered to make $60,500 in restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Dill is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by The Iowa Internet Crimes Against Children Task Force and the FBI Child Exploitation and Human Trafficking Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3013.
Follow us on Twitter @USAO_NDIA.
United States Attorney’s Office Files Lawsuit Against Saipan Physician for Violations of the Controlled Substances ActRead the Press Release
SAIPAN, MP – The United States filed a civil complaint seeking to enjoin a Saipan physician from unlawfully dispensing opioids and other controlled substances. The government alleges that Dr. John L. Doyle unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act under Title 21 of the United States Code.
The complaint, filed in U.S. District Court for the Northern Mariana Islands, alleges that Dr. Doyle issued multiple prescriptions for high quantities of a dangerous combination of drugs commonly known as the Holy Trinity – opioids, benzodiazepines, and muscle relaxants – as well as other controlled substances to the spouse of a colleague, frequently without examining the patient. He allegedly ignored obvious signs of addiction and physical and mental deterioration when issuing opioid prescriptions and other controlled substances to another patient. The complaint also alleges that Dr. Doyle’s actions contributed to a high risk of overdose or death in these patients, a risk that he knew or should have known because he had been previously disciplined by the Kentucky Medical Board for similar violations that were related to the overdose death of a patient.
“It is a sad reality that some medical practitioners are fueling drug addiction in the United States. All too often, the diversion of drugs for illegitimate use results in tragic consequences,” said U.S. Attorney Shawn N. Anderson. “The Department of Justice is fighting this epidemic in a variety of ways. As this case demonstrates, we can and will pursue civil litigation to cut off the flow of illicit prescriptions at the source. We look forward to proving our claims in court and holding Dr. Doyle accountable for his conduct.”
“Doctors have a trusted responsibility to properly and legally care for their patients and when individuals take actions to harm them, they will be held accountable,” said DEA Assistant Special Agent in Charge Leslie Tomaich. “We have no tolerance for medical professionals that violate their oath and illegally distribute prescription drugs that exacerbate the opioid epidemic.”
The complaint alleges that Dr. Doyle wrote prescriptions for potent and dangerous opioids that he knew or should have known were not issued for a legitimate medical reason and outside the usual course of professional practice. The complaint seeks civil penalties up to $67,627 for each of the 73 violations of the Controlled Substances Act, as well as an injunction against the defendant. While several settlements have been reached with other physicians in this region pre-complaint, this lawsuit represents the first-ever Controlled Substances Act civil suit against a physician in the history of the District of the Northern Mariana Islands.
The claims asserted against defendants in a civil suit are allegations only and are not determinations of liability.
The investigation is being conducted by the Drug Enforcement Administration, Honolulu Diversion Group and Saipan Post of Duty. The case is being prosecuted by Mikel Schwab and Jessica F. Wessling, Assistant U.S. Attorneys for the Districts of Guam and the Northern Mariana Islands.
U.S. Attorney's Office and Danbury Hospital Resolve ADA ComplaintRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Danbury Hospital, which owns and operates Morganti Wound Care Center (“MWCC”), to resolve allegations that MWCC was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by a patient who uses a wheelchair, who alleged that he was denied full and equal access to the services provided by MWCC based on his disability, when he attempted to receive medical treatment. Specifically, he alleged that he was told he must reschedule his appointment because MWCC did not have the equipment or training necessary to transfer him from his wheelchair to the examination table.
Under the terms of the settlement agreement, Danbury Hospital will adopt a nondiscrimination policy that outlines its obligations pursuant to Title III of the ADA. MWCC will also ensure that individuals with mobility disabilities are afforded equal access to its facilities and services, by training all staff who interact with patients on the requirements of Title III of the ADA as they apply to healthcare facilities and on techniques for safely assisting individuals with mobility disabilities to transfer to examination tables.
Danbury Hospital is also taking steps to ensure that each of its outpatient facilities has and will maintain access to a Hoyer lift, and has implemented other practices to transfer a patient onto examination tables, or other equipment, safely. Danbury Hospital has also agreed to compensate the complainant in the amount of $10,000.
Under federal law, private entities that own or operate places of “public accommodation,” including professional offices of healthcare providers, hospitals, and other service establishments are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
Acting U.S. Attorney Boyle noted that Danbury Hospital was cooperative with the U.S. Attorney’s Office and is committed to addressing the issues raised by the ADA investigation without litigation.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Two Ukrainian Nationals Extradited to U.S. on Money Laundering ChargesRead the Press Release
Two members of an international organized network that provided cash-out and money laundering services to cyber actors were extradited from the Czech Republic to Dallas.
Viktor Vorontsov, 39, and Zlata Hanska Muzhuk, 40, were charged in a one-count indictment with conspiracy to launder funds filed in February 2020 in the Northern District of Texas.
According to the indictment, Muzhuk and Vorontsov were allegedly members of an international organized network providing cash-out and money laundering services to cyber actors who used stolen bank login credentials to initiate fraudulent electronic funds transfers from victims’ bank accounts to bank accounts (drop accounts) created and controlled by the cash-out actors. For a fee, Muzhuk and Vorontsov provided a network of drop accounts and money mules to receive, transfer, and conceal money derived from the fraudulent online transfers of funds. The indictment alleges the conspiracy existed for the entirety of 2017 and focused on seven electronic funds transfers in October and November 2017, totaling almost $500,000.
During the FBI’s investigation of Muzhuk and Vorontsov, the Czech National Organized Crime Agency (NCOZ) collaborated to gather information and evidence. In late January 2020, NCOZ informed the FBI that Muzhuk was visiting Vorontsov at his residence in the Czech Republic. A criminal complaint and an arrest warrant were issued by a U.S. Magistrate Judge in Dallas and an FBI special agent from Dallas traveled to the Czech Republic to coordinate with the NCOZ.
In an unprecedentedly prompt response on Feb. 6, 2020, the NCOZ effected the arrests of Muzhuk and Vorontsov at the request of the U.S. and seized valuable evidence from both defendants and from Vorontsov’s residence. Muzhuk and Vorontsov were detained pending the extradition proceedings. On Dec. 4, 2020, and Jan. 21, 2021, respectively, the Ministry of Justice of the Czech Republic granted the extradition of Muzhuk and Vorontsov. The defendants were transferred to FBI custody on March 3, 2021 and were flown from Prague to Dallas.
Vorontsov and Muzhuk appeared before U.S. Magistrate Judge Toliver in the Northern District of Texas and entered not-guilty pleas to the charges. Vorontsov and Muzhuk remain in the custody of the U.S. Marshals Service.
The FBI’s Dallas Field Office conducted the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendants’ extradition from the Czech Republic.
Senior Trial Attorney C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Robert Nichols of the Northern District of Texas are prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Buffalo Men Arrested on Fentanyl Conspiracy ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Alexis Lopez, 27, and Ivan Irizarry-Ramos, 35, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiring to possess with intent to distribute fentanyl. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
“Sadly, this deadly mixture of cocaine and fentanyl is becoming increasingly prevalent in our District,” noted U.S. Attorney Kennedy. “Buyers of cocaine may have no idea that their drug of choice is laced with fentanyl. This situation is extremely dangerous and often deadly, especially for unsuspecting cocaine users who have no tolerance for opioid drugs.”
Assistant U.S. Attorneys David J. Rudroff and Charles M. Kruly, who are handling the case, stated that according to the complaint, on March 1, 2021, the U.S. Postal Inspection Service executed a search warrant on a Priority Mail Express Parcel, which contained approximately ½ a kilogram of a substance containing a mixture of fentanyl and cocaine. The drugs inside the parcel were replaced with sham material, and an undercover agent delivered the parcel to an address on Leroy Avenue in Buffalo, where it was accepted by defendant Lopez. After the parcel was taken inside, agents were alerted that the parcel had been opened. Following that alert, a search warrant was executed and agents discovered Lopez and defendant Irizarry-Ramos together in an apartment, from which they also recovered a digital scale, plastic packaging materials, and an electric blender with white powdery substance inside.
The defendants made an initial appearance before Magistrate Judge Michael J. Roemer and are being held pending a detention hearing on March 11, 2021.
The complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Troy Businessman Pleads Guilty to Hoarding and Price Gouging FacemasksRead the Press Release
ALBANY, NEW YORK – Imran Selcuk, age 35, of Troy, New York, pled guilty today to hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). The announcement was made by Acting U.S. Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
“Selcuk saw the pandemic as an opportunity to rip off Capital Region residents and prey upon their fears,” said Acting U.S. Attorney Antoinette T. Bacon. “He purchased thousands of masks from overseas and offered them for sale at highly inflated prices when masks were scarce and the pandemic had just started to take hold. This office will continue to work in coordination with the COVID-19 Hoarding and Price Gouging Task Force to prevent greedy profiteers from taking advantage of this emergency for illicit gain.”
“It is unfathomable that during a global pandemic, individuals such as Selcuk place their selfish greed above service to community,” said Kevin Kelly, Special Agent in Charge of HSI Buffalo. “Homeland Security Investigations will continue to work tirelessly to arrest anyone attempting to leverage the pandemic to illicitly profit from our communities.”
As part of his guilty plea to a misdemeanor, Selcuk admitted that, in March 2020, he purchased approximately 100,000 KN95 facemasks and 25,000 surgical-style facemasks for $1 per mask and 50 cents per mask, respectively. Selcuk then offered these masks for sale at his Troy pizza restaurant and through a website at markups of as high as 500%. Selcuk also admitted that his website falsely represented that the KN95 masks he offered for sale were certified by the U.S. Food & Drug Administration (FDA). In fact, the FDA does not “certify” facemasks.
U.S. Magistrate Judge Christian F. Hummel is scheduled to sentence Selcuk on July 2, 2021. Selcuk faces up to one year in prison, a $10,000 fine, and up to one year of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, with assistance from the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Joshua R. Rosenthal.
This case was brought in coordination with the Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force, which organizes efforts among the Antitrust Division and U.S. Attorney’s offices across the country to address illegal activity involving personal protective equipment.
Three Correctional Officers and a Sergeant Charged with Assaulting Federal Pretrial DetaineeRead the Press Release
NEWARK, N.J. – Three Essex County correctional officers and one sergeant have been charged with conspiring to violate a pretrial detainee’s civil rights, Acting U.S. Attorney Rachael A. Honig announced today.
Officers Angel Chaparro, 38, Damion James, 40, and Luis Ortiz, 29, and Sgt. Herman Pride, 51, are each charged by complaint with one count of conspiracy to violate civil rights. Pride and Ortiz were arrested on March 4, 2021, and had their initial appearances before U.S. Magistrate Judge James B. Clark III. Both were released on bail. Chaparro and James were arrested this morning and will have their initial appearances by videoconference Judge Clark this afternoon.
According to the criminal complaint:
On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility (ECCF) squirted a mixture of urine, yogurt, and milk onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where Chaparro, James, and Ortiz assaulted the detainee, striking him multiple times. Pride did not intervene to stop the assault. At the end of the assault, Pride said, “okay, that’s enough.” During the assault, James’ watch fell off. He and other officers returned to the detainee’s cell to retrieve his watch.
The detainee asked for, and was initially denied, medical assistance. The victim later told Pride that if Pride would provide the victim with medical attention, the victim would lie and say that he had fallen off his bed. Pride refused to provide any medical attention. Two days later, the detainee was finally taken to the emergency room at University Hospital in Newark. He was diagnosed with large swelling and tenderness in the right side of his face and discoloration and bruising around his right eye.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports. Instead, Chaparro signed a false report indicating that no force had been used.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the Essex County Correctional Facility Internal Affairs Bureau, under the direction of Director Alfaro Ortiz and the Office of the Warden, with the investigation leading to the charges.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations in the criminal complaint are merely accusations, and the defendants are all presumed innocent unless and until proven guilty.
Texas woman sent to prison for importing over $1M of methRead the Press Release
McALLEN, Texas – A 21-year-old woman from Houston has been ordered to federal prison following her conviction for attempting to import approximately 55 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Heidy Jackaline Diaz pleaded Nov. 6, 2020.
Today, U.S. District Judge Micaela Alvarez ordered Diaz to serve a 70-month sentence to be immediately followed by three years of supervised of release. At the hearing, the court noted the large amount of meth involved its potential harm to the community .
On May 23, 3020, Diaz arrived at the Hidalgo Port of Entry driving a Ford truck and applied for admission into the United States from Mexico. During inspection, authorities conducted an X-ray examination which showed anomalies in the gas tank area of the vehicle. A K-9 also altered to the presence of narcotics.
Law enforcement ultimately extracted more than 120 pounds of meth with an approximate street value of over $1 million.
Diaz admitted she knowingly imported the meth into the United States from Mexico with the intent to deliver them to another individual in McAllen. She expected to be paid $3,000.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Frances E. Blake and Eliza Carmen prosecuted the case.
Tax Preparer Pleads Guilty to Conspiring to Defraud the IRSRead the Press Release
A Maryland tax return preparer pleaded guilty today to conspiracy to defraud the United States and aiding in the preparation of a false tax return.
According to court documents and statements made in court, Anita Fortune, 56, of Upper Marlboro, provided return preparation services under multiple business names, including Tax Terminatorz Inc. Fortune prepared and filed returns using co-conspirators’ electronic filing identification numbers and identifiers, which they provided in exchange for fees and office space. For the tax years 2011 to 2018, Fortune and her associates fraudulently reduced their clients’ tax liabilities and increased their refunds by adding fictitious or inflated itemized deductions and business losses to the clients’ returns. In total, Fortune caused a tax loss to the IRS of $189,748.
Fortune is scheduled to be sentenced on June 4, 2021, and faces a maximum sentence of five years in prison for the conspiracy count and three years for the preparing a false return count. Fortune also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any 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 Jonathan Lenzner for the District of Maryland made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Kathryn Sparks of the Tax Division and Assistant U.S. Attorney Leah Grossi are prosecuting the case.
Statesboro man sentenced to federal prison for illegally possessing ammunitionRead the Press Release
STATESBORO, GA: A Statesboro man arrested after a shooting on a residential street has been sentenced to eight years in federal prison while still facing state charges.
Courtney Raynard Spann, 29, of Statesboro, was sentenced to 96 months in prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Possession of Ammunition by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Spann also was ordered to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“Previously convicted felons are prohibited from possessing firearms or ammunition - period,” said Acting U.S. Attorney Estes. “Courtney Spann’s record makes it abundantly clear why these laws are in place, and our office will relentlessly enforce these laws to keep firearms out of the hands of violent criminals.”
As described in court documents and testimony, Spann came to the attention of officers from the Statesboro Police Department who were investigating reports of gunfire in a high-density residential area on Jan. 25, 2020, that resulted in damage to multiple homes and vehicles. Spann was located and later arrested, and officers found four firearms, including assault-style weapons, along with multiple rounds of ammunition, extended magazines and drum magazines in his vehicle.
Investigators also determined that Spann is a member of the Gangster Disciples criminal street gang, with a criminal history that includes a felony conviction for drug trafficking. He faces additional state charges related to the incident that led to his arrest.
“Keeping guns out of the hands of repeat felony offenders is a priority for the FBI because of offenders like Spann,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But we couldn't do it without the partnerships with our fellow local, state, and federal law enforcement agencies, in particular in this case, the Statesboro Police Department.”
The case is being investigated by the FBI and the Statesboro Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Stanley and Tara M. Lyons.
Springfield Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court for failing to register as a sex offender.
Ruben Pagan, 50, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison and 10 years of supervised release. In August 2020, Pagan pleaded guilty to one count of failing to register as a sex offender.
Pagan, who was convicted of a sex offense in 2002, moved from Springfield to Providence, R.I. in October 2017. He remained in Providence until March 2018, when he was arrested on a Massachusetts state court warrant charging him with child sexual abuse. Pagan failed to register as a sex offender in Rhode Island, including while the warrant for his arrest was outstanding.
The two-year sentence imposed today will run consecutively to a six-year state court sentence Pagan is currently serving after previously pleading guilty to rape and abuse of a child. Pagan was also convicted of failure to register as a sex offender on two prior occasions in Massachusetts state court.
Acting United States Attorney Nathaniel R. Mendell and John Gibbons, United States Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
South Florida Escort Sentenced to Prison for Tax FraudRead the Press Release
Miami, Florida – A South Florida male escort who lied to the IRS about his income was sentenced today to 21 months in prison and ordered to pay $278,325 in restitution.
According to court documents, 46-year-old Jami Kopacz worked as a paid escort directly with individual clients and with a private escort company as an independent contractor. Kopacz accepted payment for his work through cash, check, wire transfer, and electronic money transfer to JK Trading LLC, a Florida “Subchapter S” corporation that he established in 2015. Kopacz, the sole owner of JK Trading, elected to report the company’s income and losses on his personal tax returns. This meant that JK Trading’s income, losses, deductions, and credits would pass through to Kopacz’s individual tax returns and that Kopacz would pay tax on the company’s earnings at the individual, and not the corporate, tax rate.
From 2015 to 2018, Kopacz filed false corporate tax returns with the IRS that substantially underreported JK Trading’s gross receipts and total income. This understatement on JK Training’s corporate tax returns passed through to Kopacz’s individual tax returns, which were also false because they underreported his total income. Kopacz caused a total tax loss to the Internal Revenue Service of $278,325.
In addition to imposing a term of imprisonment, Judge Roy K. Altman ordered Kopacz to pay $278,325 in restitution to the IRS.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office, made the announcement.
U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended the investigative efforts of Internal Revenue Service-Criminal Investigation, Miami Field Division. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne and Trial Attorney Grace Albinson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60096-RKA.
###
Robert J. Troester Assumes Role as Acting United States Attorney for the Western District of OklahomaRead the Press Release
OKLAHOMA CITY – On March 1, 2021, Robert J. Troester assumed the role as the Acting United States Attorney for the Western District of Oklahoma, following the departure of U.S. Attorney Timothy J. Downing on February 28, 2021. This is the fourth time Troester has held this position.
As Acting U.S. Attorney, Troester serves as the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Western District of Oklahoma, an area covering 40 counties and including 21 Indian tribes.
"It is an honor and privilege to represent the United States and lead the talented team in this office as we pursue justice for the people of Western District of Oklahoma," said Acting U.S. Attorney Troester. "I will strive to further strengthen our partnerships with federal, state, local, and tribal law enforcement agencies to ensure the ethical, vigorous, fair and impartial enforcement of the laws of the United States."
Troester joined the U.S. Attorney’s Office in 1995 as an Assistant U.S. Attorney and held various management positions since 2002, including serving as First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and Chief of the Civil Division.
Throughout his 25-plus year career in the Department of Justice, Troester has served in various capacities within the Department. In 2020, he was Chair of the Victim Services Working Group for the President’s Commission on Law Enforcement and the Administration of Justice. From 2017 to 2018, he served as Associate Deputy Attorney General and Sr. Counsel to the Deputy Attorney General in Washington D.C.
From 2018 to 2019, while serving as Acting U.S. Attorney, he served as Vice-Chair of the Attorney General’s Advisory Committee (AGAC) Civil Rights Subcommittee and as Vice-Chair of the AGAC Health Care Fraud Working Group. In 2005, he was appointed by the Attorney General as the sole career member to serve a three-year term on the AGAC.
In 2011 and 2012, Troester also served on several short-term special projects with the DOJ Criminal Division’s Overseas Prosecutorial Development Assistance and Training office and the U.S. Embassy in Chisinau, Moldova, to conduct a management and training needs assessment for Supervisory Prosecutors in the Moldova Prosecutor General’s Office, develop a training curriculum, and implement a training program in Moldova.
Troester has served on two details to the Executive Office for U.S. Attorneys (EOUSA) in Washington D.C. From 2001 to 2002 he served as Deputy Director for Legal Programs, and from 1999 to 2000 he served as the national Affirmative Civil Enforcement (ACE) Coordinator.
Prior to joining his federal service at the United States Attorney’s Office, Troester worked in private practice in Oklahoma City, in state government at the Oklahoma Employment Security Commission, and in local law enforcement at the Buffalo County Sheriff’s Office in Nebraska.
Troester received his Juris Doctorate from Oklahoma City University School of Law and his Bachelor of Science degree from the University of Nebraska at Kearney.
Richmond Man Sentenced for Role in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 97 months in prison for his role in an investment scheme that defrauded investors of $5.7 million.
According to court documents and evidence presented at trial, James Michael Johnson, 69, participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. Johnson was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering on October 30, 2020, after a four-day trial.
“For more than four years, the defendant and his co-conspirators stole over $5 million from victim investors, which included individuals, startup business entities, and a volunteer fire department,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the outstanding work of the trial team and our law enforcement partners, the defendant has been held accountable for inflicting significant economic harm on his victims and abusing their trust.”
From July 2014 to March 2019, the fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date, in exchange for an upfront advanced payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the conspirators’ promises had been kept.
Johnson and his co-conspirators stole approximately $5.7 million from their victims. Co-conspirator James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, and Stuart Jay Anderson, 54, of Alisa Viejo, California, was sentenced to four years in prison on December 3, 2020. Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment and is presumed innocent unless and until proven guilty.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Delany De Leon-Colón, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Judith Williams Jagdmann, Chair of the Virginia State Corporation Commission, made the announcement.
Assistant U.S. Attorney Michael C. Moore and Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-117.
Repeat Offender Caught Breaking into Cars in Downtown Macon Is Sentenced to Federal Prison for Illegally Possessing A FirearmRead the Press Release
MACON, Ga. – A convicted felon apprehended in possession of a firearm while attempting to break into vehicles in downtown Macon was sentenced to federal prison for his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Matthew Dixon, 33, of Milledgeville, Georgia, was sentenced to serve 41 months in prison by U.S. District Judge Tilman “Tripp” Self on Tuesday, March 2, to be followed by three years of supervised release. Dixon previously pleaded guilty to one count of possession of a firearm by a convicted felon. There is no parole in the federal system.
“I applaud law enforcement for working 24/7 in an effort to keep Macon safe. Repeat offenders who are arrested in illegal possession of guns should know they face the possibility of their criminal cases being transferred to the federal court system,” said Acting U.S. Attorney Leary. “Thank you to the Bibb County Sheriff’s Office and ATF for their work in this case.”
“This case represents how potentially dangerous a career criminal with a gun can be. Thanks to the good work of the Bibb deputy and the follow up by federal authorities, this felon will be off our streets for a few years,” said Bibb County Sheriff David Davis.
On October 4, 2019, at approximately 1:26 a.m., the Bibb County Sheriff’s Office received a report of a suspicious person trying to break into parked vehicles in downtown Macon. Dixon, matching the complainant’s description and exiting the vehicle described by the complainant, was spotted by the deputy. Dixon fled on foot and the deputy saw Dixon attempt to pull something from his pants with his right hand, which was later found to be a .40 caliber pistol. The deputy repeatedly gave commands for Dixon to stop, but he did not comply and was tased after multiple warnings. Dixon was taken into custody. Dixon was previously convicted of five counts entering an auto in the Superior Court of Baldwin County, Georgia.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Red Springs Man Sentenced to 24 Years for Firearms CrimesRead the Press Release
RALEIGH, N.C. – A Red Springs man was sentenced today to 288 months in prison for possessing multiple stolen firearms as a convicted felon.
According to court documents, as well as evidence presented at the sentencing hearing, Martin Elliott Brooks, 39, possessed multiple stolen firearms as a convicted felon. On November 26, 2018, the Myrtle Beach Police Department investigated a burglary where multiple firearms were stolen from a hotel room. The investigation established that Brooks, stole an AK-47 rifle, an AR-22 rifle, two handguns, and hundreds of rounds of ammunition. Brooks later sold two of those firearms unlawfully.
On December 12, 2018, investigators with the United States Marshals Service, Robeson County Sheriff’s Office, and Pembroke Police Department located and arrested Brooks on outstanding warrants. During the arrest, Brooks locked himself in a bedroom and fired multiple shots into the ceiling. Several hours later, he surrendered without further incident. Investigators searched the residence and recovered two of the stolen firearms, and an additional firearm.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
G. Norman Acker, III, Acting United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, Robeson County Sheriff’s Office, Pembroke Police Department, and North Carolina Department of Public Safety Special Operations and Intelligence Unit investigated the case and Assistant U.S. Attorney Chad E. Rhoades 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. 7:19-cr-00084-D.
###
Readout of the Department of Justice’s Efforts to Combat Hate Crimes Against Asian American and Pacific Island CommunitiesRead the Press Release
The Department of Justice today held a listening session with more than a dozen Asian American and Pacific Islander (AAPI) community groups as part of its continuing efforts to deter hate crimes and other unlawful acts against the AAPI community.
“No one in America should fear violence because of who they are, what they look like or what part of the world they or their families came from,” said Acting Deputy Attorney General John Carlin, the host of the meeting. “The Department of Justice and our component agencies are committed to bringing all of our tools to bear in supporting AAPI communities as we address the horrific rise in hate and bias incidents occurring across the country.”
Today’s listening session follows a meeting Carlin had earlier this week with key U.S. Attorneys in Districts around the country with significant AAPI populations including:
- Northern District of California (San Francisco, San Jose, Oakland)
- Central District of California (Los Angeles)
- Southern District of Texas (Houston)
- Northern District of Illinois (Chicago)
- Southern District of New York (Manhattan)
Carlin requested feedback from each District’s work on AAPI-related hate crimes and incidents including cases trends, community outreach efforts and data collection. The meeting was also attended by senior leaders of the Department’s Civil Rights Division, Executive Office for the U.S. Attorneys and FBI Headquarters.
Additional Background
- On January 26, 2021, President Biden issued the “Presidential Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States,” which mandates that the “Attorney General shall:
- explore opportunities to support, consistent with applicable law, the efforts of State and local agencies, as well as AAPI communities and community-based organizations, to prevent discrimination, bullying, harassment, and hate crimes against AAPI individuals, and
- expand collection of data and public reporting regarding hate incidents against such individuals.
- Since the signing of that memo the Department has been working to combat discrimination and violence through both direct federal law enforcement action and capacity building, training, support, and outreach to our partners in state and local law enforcement and the AAPI community.
- The Department has investigated complaints of discrimination and violence against the AAPI community on all fronts – ranging from employment or housing discrimination to reported assaults.
- The Department has monitored reports by organizations like the Asian Pacific Policy & Planning Council (A3PCON) and Stop AAPI Hate, as well as media reporting, to identify which might be actionable under federal hate crime statutes.
- DOJ hosted Hate Crime Forums aimed at state and local law enforcement, attorneys, community members, community advocacy organizations, and other groups, to provide education raise awareness about hate crimes investigations, challenges and available resources.
- DOJ’s Community Relations Service is working with community-based groups including youth, faith leaders, cultural leaders, and civil rights organizers from API, Black, and Latino communities to reduce racial tensions and prevent violence.
- DOJ is just getting started. Among other things, DOJ plans to make clear that this issue is among our highest priority, engage in increased outreach, and dedicate resources to combat the threat.
- DOJ is taking a fresh look at ways of reinvigorating the Department’s Hate Crimes Enforcement and Prevention Initiative, to identify how we can best expand data collection and reporting regarding hate incidents against AAPI persons including:
- Launch a new community outreach and engagement program designed to improve identifying, reporting, and preventing hate crimes and build trust with federal, state, local, and tribal law enforcement;
- Translate our hate crimes resources website and complaint portal to the 4 most common AAPI languages, beginning with Chinese (Traditional and Simplified) and conduct outreach to reach those limited English proficient communities;
Work with state victims’ programs to help them address hate crimes; - Establish a new grant program to help states, localities, and tribal law enforcement agencies to conduct educational outreach and training on hate crimes and to investigate and prosecute hate crimes;
- Launch a new Hate Crimes program under the Matthew Shepard/James Byrd Hate Crimes Program to support funds and training and technical assistance to support outreach, education, reporting, investigation and prosecution of hate crimes; and
- Review how we collect and use hate crime data and statistics.
Portfolio Manager of Real Estate Investment Fund Charged with Using Sham Loan Document to Obtain Money from InvestorRead the Press Release
NEWARK, N.J. – A portfolio manager and senior independent executive advisor at a Secaucus-based real estate fund was charged with using a sham loan document to defraud an investor of hundreds of thousands of dollars, Acting U.S. Attorney Rachael A. Honig announced today.
Thomas Nicholas Salzano, aka “Nick Salzano,” of Secaucus, New Jersey, was charged by complaint with one count of wire fraud and one count of aggravated identity theft. Salzano appeared by videoconference on March 4, 2021, before U.S. Magistrate Judge Leda Dunn Wettre and was released on a $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Salzano was employed at National Realty Investment Advisors (NRIA), a private real estate management fund with a purported $1.25 billion in assets under management as of 2021. In May 2018, Victim 1 purchased three purported units in NRIA’s real estate investment fund for $150,000, after hearing an advertisement for the fund on the radio. Individual 1, a vice president and senior independent project manager at NRIA, offered Victim 1 a guaranteed 6 percent return for each unit purchased, paid monthly, for the first two to two-and-a-half years of the five-year term, and the potential of greater guaranteed returns after the initial period.
Near the end of 2018, Individual 1 approached Victim 1 about a supposed new opportunity to become a joint venture partner with NRIA in a property in North Bergen, New Jersey, allegedly owned by NRIA. According to Individual 1, the minimum investment was $300,000, and Victim 1 could use her original $150,000 investment in the NRIA fund toward the required $300,000 investment in the North Bergen property.
Victim 1 asked Individual 1 for more information on the North Bergen property. Individual 1 sent Victim 1 materials purporting to show that NRIA intended to obtain a $25 million bank loan on the property. Victim 1 asked for information on the loan. Individual 1 then referred Victim 1 to Salzano.
On Jan. 17, 2019, Salzano emailed Victim 1 a purported letter of intent (LOI) from Lender 1, a loan provider for estate investors and developers, purportedly signed by Victim 2, the chief executive officer of Lender 1. The LOI sent by Salzano was fraudulent. A representative later confirmed that the letter was fraudulent and Victim 2’s signature was forged.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The aggravated identity theft charge is punishable by a mandatory sentence of two years in prison to be served consecutively to any other term of imprisonment imposed.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Jonathan Fayer of the of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Philadelphia Duo Indicted for Attempting to Set Off Explosive Devices Inside Wawa During Summer 2020 Civil UnrestRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Fields, 34, and Desiree Adorno, 65, both of Philadelphia, PA, were arrested and charged by Indictment for their alleged attempt to rob a Wawa in Philadelphia with multiple explosive devices. Fields made his initial appearance in federal court today, and Adorno is scheduled to make her initial appearance in federal court on Monday.
Following peaceful protests in Philadelphia in the early afternoon of May 30, 2020 in response to the killing of George Floyd in Minneapolis, MN, civil unrest began to unfold later that afternoon and into the following day that resulted in widespread looting, burglary, arson, destruction of property, and other violent acts. The Indictment alleges that in early June 2020, Fields and Adorno conspired with other individuals to break into a Wawa store on Richmond Street in Philadelphia. In addition to stealing merchandise from the store, the Indictment alleges that the defendants had explosive devices in their possession, one of which was placed inside a lottery machine inside the Wawa, and two of which were placed near a safe and a cash register in the middle of the store. Police arrived at the store before any devices were detonated. Both Fields and Adorno are charged with conspiracy and attempting to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting. Fields was also charged with possession of an unregistered firearm.
“The U.S. Attorney’s Office and the entire Department of Justice will always support peaceful protest – we are sworn to protect the rights guaranteed by the First Amendment,” said Acting U.S. Attorney Williams. “But that does not cover destructive rioting, looting, committing arson and other violent acts. Here, the defendants allegedly attempted to detonate explosive devices while robbing a store, potentially endangering many lives including those of police officers who responded to the scene. This conduct is not free speech and is not protected by our constitution; rather, it is criminal.”
“As alleged, these defendants were in possession of several explosive devices and appeared intent to use them,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This type of behavior places our entire community in danger. I commend the outstanding work of the Philadelphia Police Department who acted swiftly and were able to arrest these individuals before further harm could be done. ATF, along with our local, state and federal partners remain dedicated to protecting our community from violent acts of all kinds.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, defendant Fields faces a maximum possible sentence of 90 years in prison, and defendant Adorno faces a maximum possible sentence of 80 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of IT Services Company Pleads Guilty to Defrauding New York StateRead the Press Release
ALBANY, NEW YORK – Lakshmikanth Sripuram, age 37, of Monmouth Junction, New Jersey, pled guilty today to wire fraud conspiracy in connection with a scheme to defraud New York State.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; New York State Comptroller Thomas P. DiNapoli; and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Sripuram is the president of PIntegra, LLC. As part of his plea, he admitted that between 2015 and 2017, he conspired with Co-Conspirator 1, a former employee of the Office of the State Comptroller (OSC), to fraudulently obtain money from OSC.
In January 2015, OSC entered into a contract with a consortium of three companies to identify and hire computer programmers for a project. When OSC needed to hire a programmer, it sent a request form to one of the three companies. Each company then submitted a purportedly qualified applicant. Frequently, the applicants were employed by subcontractors, including PIntegra. From January 2015 through October 2016, OSC hired 17 programmers for the project at hourly rates ranging from $80 to $120. In late 2016, OSC learned that many of the programmers’ references and work histories were not legitimate, including those hired from PIntegra, and launched an internal investigation.
Sripuram admitted that, between February 2015 and October 2016, he and his co-conspirator ensured that programmers from PIntegra were hired by falsifying information regarding their experience and work histories, and by providing them with interview questions ahead of their interviews at OSC. Co-Conspirator 1 then interviewed the programmers, hired them knowing that their qualifications were falsified, and set their hourly rates. Between February 2015 and September 2017, PIntegra received approximately $870,000 from OSC for its programmers’ pay. Sripuram kept a percentage of the programmers’ pay. He then paid Co-Conspirator 1 a portion of that percentage as a kickback.
As a result of his conviction, Sripuram faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years, when he is sentenced on July 6, 2021 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was initiated by the Office of the New York State Comptroller, and was also investigated by HSI, the United States Postal Inspection Service, and the United States Department of Labor, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Owner and Employees of Alleged Pill Mill Facing Federal Indictment for an Oxycodone Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted the owner and operator of a purported pain management clinic, as well as two nurse practitioners who were employed at the clinic, on the federal charges for conspiracy to distribute and dispense oxycodone and for distribution and dispensing of oxycodone. Charged in the indictment are:
Joyce Shawanda Edwards, age 45, of Largo, Maryland;
Justina Aburime, age 53, of Bowie, Maryland; and
Thomas Charles Johnson, Jr., age 56, of Baltimore, Maryland.
The indictment was returned on March 3, 2021 and unsealed today at the initial appearances of the defendants.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to the eight-count indictment, from February 2017 to February 2020, Joyce Shawanda Edwards owned and operated Personal Touch Medical Spa, LLP (“PTMS”), formerly known as Holistic Health and Wellness Medical Spa LLP, a purported “pain management” clinic located in Largo, Maryland, which the indictment alleges was, in reality, a “pill mill.” A pill mill is a health care provider’s office, clinic, or health care facility that routinely prescribes and dispenses controlled substances outside the scope of professional practice and without a legitimate medical purpose. According to the indictment, Justina Aburime was a nurse practitioner who worked at PTMS from February 2017, until she left in August 2018, at which time Thomas Charles Johnson, Jr., who was also a nurse practitioner, began working at PTMS. Aburime and Johnson were both authorized to prescribe controlled substances for legitimate medical purposes and in the course of professional practice.
Specifically, the indictment alleges that Edwards, Aburime, and Johnson distributed and dispensed oxycodone that was not prescribed for a medical purpose or in the usual course of professional practice. Edwards typically charged customers who came to PTMS a fee of $280 for an initial visit and $250 for any subsequent visit. Although Edwards, Aburime, and Johnson allegedly required customers of PTMS to provide certain paperwork, generally a magnetic resonance imaging (“MRI”) report, a prescription history, and a “plan of care” purportedly signed by the customer’s primary care physician, to include in the customer’s patient file to support a false claim that there was a legitimate medical need for the prescription of oxycodone, the indictment alleges that the conspirators prescribed oxycodone even when the medical records revealed that there was no legitimate medical need for the prescription. The conspirators allegedly directed customers to physical therapy and provided massages to create the false appearance that PTMS provided other treatment options to controlled substances.
The indictment alleges that Aburime and Johnson pre-signed blank prescriptions, allowing Edwards to issue prescriptions for oxycodone under their names. Further, the indictment alleges that even though Edwards was not authorized to prescribe controlled substances, she wrote and issued prescriptions for oxycodone using blank prescriptions that Edwards signed under the name of a nurse practitioner. Edwards allegedly issued prescriptions for controlled substances at times when a nurse practitioner was not present and did not see the patient, including on dates when Aburime and Johnson were out of town. Edwards, Aburime, and Johnson also allegedly: conducted cursory, incomplete, and inadequate medical examinations; prescribed controlled substances on the basis of diagnoses that were not corroborated by the medical record; increased the customer’s dosage over time without a medical justification; falsified urine drug test results for customers receiving oxycodone prescriptions; and permitted the customer to determine the drug type and dosage, rather than prescribing controlled substances according to legitimate medical need.
The indictment also seeks the forfeiture of approximately $278,951.72, seized on July 11, 2019, after the execution of seizure warrants on bank accounts held in the name of Personal Touch Medical Spa, LLP.
If convicted, the defendants each face a maximum sentence of 20 years for the conspiracy and for each count of distribution and dispensing of controlled substances. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The defendants had an initial appearance today in U.S. District Court in Greenbelt and were ordered to be released under the supervision of U.S. Pretrial Services pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and the U.S. Department of Health and Human Services - Office of Inspector General for their work in the investigation and thanked the Charles County Sheriff’s Office, the Prince George’s County Police Department, the Virginia State Police, and the Metropolitan Police Department for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Jessica C. Collins and Elizabeth Wright, who are prosecuting the case.
# # #
Orlando Man Indicted on Federal Human Trafficking ChargesRead the Press Release
Tampa, FL – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Henry Lee White, III (26, Orlando) with sex trafficking by force, fraud, and coercion, transportation of an individual in interstate commerce for the purpose of prostitution, coercion and enticement, and being a felon in possession of ammunition. If convicted on all counts, White faces a maximum penalty of life in federal prison. The indictment also notifies White that the United States intends to forfeit assets alleged to have facilitated these offenses.
According to the indictment, from June 2, 2020, through January 7, 2021, White used force, threats of force, fraud, and coercion to cause Victim 1 to engage in prostitution. During that time, White trafficked Victim 1 within the Middle District of Florida, and transported Victim 1 from Florida to Georgia so that Victim 1 could engage in prostitution. The indictment also charges that White, a convicted felon, was found in possession of ammunition in violation of federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida, one of 13 task forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. More information about the Tampa Bay Human Trafficking Task Force can be found at www.justice.gov/usao-mdfl/humantrafficking. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Ohio treatment facilities & corporate parent agree to pay $10.25 millionRead the Press Release
COLUMBUS, Ohio – A Florida company that operates two Ohio inpatient psychiatric hospitals and one Ohio substance abuse treatment facility will pay $10.25 million to resolve alleged violations of the False Claims Act.
Oglethorpe Inc. and its three Ohio facilities, Cambridge Behavioral Hospital, Ridgeview Behavioral Hospital, and The Woods at Parkside, will pay $10.25 million to resolve alleged violations of the False Claims Act for improperly providing free long-distance transportation to patients and admitting patients at Cambridge and Ridgeview who did not require inpatient psychiatric treatment, resulting in the submission of false claims to the Medicare program.
The settlement was based on analysis of the companies’ ability to pay after review of their financial condition.
This settlement resolves allegations that, between August 2013 and June 2019, defendants provided free long-distance van transportation to patients to induce them to seek treatment at the defendants’ facilities, in violation of the Anti-Kickback Statute, and then submitted claims for services provided to these patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. The government also alleged that Oglethorpe, Cambridge, and Ridgeview submitted, or caused to be submitted, false claims to Medicare for medically unnecessary inpatient psychiatric admissions and associated services at the two hospitals.
“Submitting false claims by billing for unnecessary inpatient psychiatric hospitalizations is not only inappropriate – it’s illegal,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “This settlement shows that the United States will hold accountable those who seek to profit by flouting proper standards of medical practice and appropriate review and submission of Medicare billings.”
“Kickbacks to patients can result in unnecessary services that serve neither the patients nor our federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing unlawful remunerations in whatever form they occur to safeguard taxpayer funded health care benefits.”
“Kickbacks in the form of free van rides and the false claims subsequently submitted to federal health care programs come at a tremendous cost to patients and the taxpayers,” said Special Agent in Charge Lamont Pugh for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue to work with our law enforcement partners to pursue and hold accountable entities who engage in such acts.”
Contemporaneous with the settlement, Oglethorpe entered into a corporate integrity agreement (CIA) with HHS-OIG. Among other things, the CIA requires that for the next five years Oglethorpe must retain an Independent Review Organization to review its claims to Medicare and Medicaid.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Darlene Baker, a former client advocate at Cambridge. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery if the government takes over the case and reaches a monetary agreement with the defendant.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Ohio; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and HHS-OIG.
The matter was investigated by Deputy Civil Chief Andrew Malek and Trial Attorney Christopher Wilson of the Department of Justice’s Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
# # #
Ohio Treatment Facilities and Corporate Parent Agree to Pay $10.25 Million to Resolve False Claims Act Allegations of Kickbacks to Patients and Unnecessary AdmissionsRead the Press Release
Oglethorpe Inc. and its three Ohio facilities, Cambridge Behavioral Hospital, Ridgeview Behavioral Hospital, and The Woods at Parkside, will pay $10.25 million to resolve alleged violations of the False Claims Act for improperly providing free long-distance transportation to patients and admitting patients at Cambridge and Ridgeview who did not require inpatient psychiatric treatment, resulting in the submission of false claims to the Medicare program.
Oglethorpe Inc. is a Florida company that operates two Ohio inpatient psychiatric hospitals, Cambridge and Ridgeview, and one Ohio substance abuse treatment facility, Parkside. The settlement was based on analysis of the companies’ ability to pay after review of their financial condition.
This settlement resolves allegations that, between August 2013 and June 2019, defendants provided free long-distance van transportation to patients to induce them to seek treatment at the defendants’ facilities, in violation of the Anti-Kickback Statute, and then submitted claims for services provided to these patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. The government also alleged that Oglethorpe, Cambridge, and Ridgeview submitted, or caused to be submitted, false claims to Medicare for medically unnecessary inpatient psychiatric admissions and associated services at the two hospitals.
“Kickbacks to patients can result in unnecessary services that serve neither the patients nor our federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing unlawful remunerations in whatever form they occur to safeguard taxpayer funded health care benefits.”
“Submitting false claims by billing for unnecessary inpatient psychiatric hospitalizations is not only inappropriate – it’s illegal,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “This settlement shows that the United States will hold accountable those who seek to profit by flouting proper standards of medical practice and appropriate review and submission of Medicare billings.”
“Kickbacks in the form of free van rides and the false claims subsequently submitted to federal health care programs come at a tremendous cost to patients and the taxpayers,” said Special Agent in Charge Lamont Pugh for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue to work with our law enforcement partners to pursue and hold accountable entities who engage in such acts.”
Contemporaneous with the settlement, Oglethorpe entered into a corporate integrity agreement (CIA) with HHS-OIG. Among other things, the CIA requires that for the next five years Oglethorpe must retain an Independent Review Organization to review its claims to Medicare and Medicaid.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Darlene Baker, a former client advocate at Cambridge. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned United States ex rel. Baker v. Oglethorpe, Inc., et al., No. 2:16-cv-1040 (S.D. Ohio).
The resolutions obtained in this matter were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Ohio; and HHS-OIG.
The matter was investigated by Trial Attorney Christopher Wilson of the Civil Division and Assistant U.S. Attorney Andrew Malek.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Nigerian National Sentenced to More Than Five Years for Defrauding Victims Using Online ScamsRead the Press Release
BOSTON – A Nigerian national was sentenced yesterday in connection with defrauding victims using various online scams during the COVID-19 pandemic.
Nosayamen Iyalekhue, 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 63 months in prison and three years of supervised release. In November 2019, Iyalekhue pleaded guilty to one count of wire fraud. Iyalekhue was arrested in June 2020 along with a co-defendant, Esogie Osawaru, 27, who pleaded guilty in November 2020.
Iyalekhue and Osawaru participated in a series of romance, pandemic unemployment insurance, and other online scams designed to defraud victims by convincing them to send money to accounts controlled by the defendants. To carry out the scams, the defendants used false foreign passports in the names of others, but with their own photos, to open numerous bank accounts, and in turn directed the victims to send money to these accounts. Iyalekhue and Osawaru then rapidly withdrew the victims’ money from various bank branches and ATMs, often multiple times during a single day. The schemes included collecting unemployment insurance in the name of others during the COVID-19 pandemic.
Osawaru is scheduled to be sentenced on June 24, 2021.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
NDTX Round up: February 26 - March 4Read the Press Release
SENTENCING – GERSON GAMALIEL ROJO GUZMAN
On February 26, Gerson Gamaliel Rojo Guzman, 31, was sentenced to 7 years for possession with the intent to distribute a controlled substance. Law enforcement executed a search warrant at Rojo Guzman’s residence. Officers recovered cocaine, two firearms, ammunition, and $11,550 in cash. This case was investigated by the Texas Department of Public Safety. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
SENTENCING – JOSE CELBEY HERNANDEZ
On March 1, Jose Celbey Hernandez, 30, was sentenced to 41 months in federal prison for conspiracy to smuggle goods from the United States. Hernandez and a coconspirator worked together to purchase firearms from individuals and licensed dealers for the purpose of exporting them to individuals in Mexico. They traveled to several locations in Texas to purchase firearms. Hernandez provided money to the coconspirator to illegally purchase firearms before turning them over to him. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
GUILTY PLEA – DEZIREE LUJAN
On March 2, Deziree Lujan, 29, plead guilty to tampering with a witness or victim. In August 2020, Lujan used social media in an attempt to hinder and prevent a victim’s testimony against a sex trafficking defendant. In one such attempt, Lujan revealed the identity of the victim on social media and threatened the victim with physical violence. During this same timeframe, Lujan was reaching out privately to known pimps on social media and revealing the victim’s identity and further threatening physical harm due to her involvement in a federal prosecution. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Melanie Smith is prosecuting the case.
Montgomery County Man Now Facing Federal Charges in Connection with Shooting of County Democratic Party HeadquartersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Anthony Francis Nero, 48, of Eagleville, PA, was arrested by federal authorities and charged by Criminal Complaint on Wednesday, March 3, 2021, on charges of sending threatening communications and cyberstalking. The defendant made his initial appearance in federal court today and was detained until his next hearing on Tuesday, March 9, 2021.
According to court documents, on January 7, 2021 the Montgomery County Democratic Party (MCDP) allegedly received a communication threatening “random acts of violence” against the MCDP office. Then on January 20, 2021 MCDP officials discovered that the front window of their office space in Norristown, PA, had been shot through three times, striking a wooden desk inside. Investigators inspected two spent rounds found within the MCDP’s office space and determined that they appeared to have been fired from a .45 caliber handgun. Investigators traced the January 7th threatening communication as originating from the defendant’s cell phone. In addition, investigators located a 2011 record of sale of a .45 caliber handgun to the defendant.
“As alleged in the Complaint, the defendant sent a threatening communication and then acted upon those threats – endangering the lives of anyone who might have been in the vicinity,” said Acting U.S. Attorney Williams. “I want to thank our partners in the Montgomery County District Attorney’s Office and all agencies at the federal, state and local levels for their dedicated work investigating this case.”
“Law enforcement at the federal, state and local level take terroristic threats very seriously, and we are partnering together to make sure all communities are safe from this kind of threat and criminal behavior,” said Montgomery County District Attorney Kevin Steele.
If convicted, the defendant faces a maximum possible sentence of 15 years in prison and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigation, Pennsylvania State Police, Montgomery County District Attorney’s Office Detectives, and Norristown Police Department, and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Josh A. Davison.
Michigan Man Pleads Guilty to Using the Internet to Attempt to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Arthur Jay Traxler, Jr. (55, Monroe, MI) today pleaded guilty to attempted online enticement of a minor to engage in sexual activity. Traxler faces a minimum mandatory term of 10 years, and up to life, in federal prison. Traxler has been detained since his initial arrest in Michigan on November 9, 2020. A sentencing date has not yet been set.
According to the plea agreement, between July 21 and August 4, 2020, Traxler engaged in a series of online conversations with a person whom he believed to be a 14-year-old child. Unbeknownst to Traxler, this “child” was an undercover FBI agent. During the course of the online conversations, Traxler discussed, in detail, his desire to have the “child” send him images of the “child” engaging in sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Manhattan U.S. Attorney Files Civil Injunction Lawsuit to Shut Down Bronx Tax Preparer and His CompanyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against RAFAEL ALVAREZ and ATAX New York LLC (“ATAX New York”) to prohibit them from, among other things, preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws. The complaint alleges that ALVAREZ and ATAX NEW YORK have prepared and filed fraudulent tax returns on behalf of their customers in order to reduce their customers’ tax liability and generate refunds to which those customers were not entitled.
U.S. Attorney Audrey Strauss said: “Tax return preparers who regularly cheat the tax system by preparing fraudulent federal income tax returns for their customers should not be permitted to continue in business. This Office will work with the IRS to shut down return preparers who fleece the Treasury by claiming improper deductions or credits for their customers.”
As alleged in the Government’s complaint filed in federal district court today:
ATAX NEW YORK is a limited liability company that prepares tax returns for customers in the Bronx. ALVAREZ is a tax preparer and ATAX NEW YORK’s sole member. Together, ATAX NEW YORK and ALVAREZ prepared and filed over 36,000 federal income tax returns from 2016 to 2019 for their customers. In preparing those returns, ATAX NEW YORK and ALVAREZ knowingly prepared and filed false federal income tax returns for their customers by fabricating, among other things, unreimbursed business expenses, charitable contributions, capital loss carryovers, and tuition expenses. Many tax returns prepared and filed by ATAX NEW YORK and ALVAREZ also falsely claimed “head of household” status for their customers as part of this scheme, even by using social security numbers belonging to deceased individuals in claiming dependents.
The Government is seeking an injunction against ATAX NEW YORK and ALVAREZ that would, among other things, permanently bar them from preparing or filing federal tax returns on behalf of others. The complaint also asks the court to order the defendants to turn over the ill-gotten net profits they earned because of their fraudulent conduct.
* * *
Ms. Strauss thanked the Internal Revenue Service for its assistance with this case.
The case is being handled by the Tax and Bankruptcy Unit in the Office’s Civil Division. Assistant U.S. Attorneys Charles S. Jacob and Ilan Stein are in charge of the case.
Man admits role in smuggling 149 undocumented aliens from LaredoRead the Press Release
LAREDO, Texas – A 54-year-old resident of Fort Meade, Florida, has pleaded guilty in Laredo federal court to conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Joseph Winslow entered a guilty plea today, admitting he had agreed to drive a tractor-trailer from Laredo to San Antonio in return for $10,000.
On Dec. 30, 2020, Winslow arrived at the Border Patrol checkpoint on Interstate Highway 35 approximately 29 miles north of Laredo. Authorities conducted an X-ray of the trailer he was driving and discovered it was full of people. They ultimately identified a total of 149 undocumented aliens.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing June 15. At that time, Winslow faces up to 10 years in prison.
He was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Man Sentenced for Role in Investment-Fraud SchemeRead the Press Release
A Virginia man was sentenced today to over eight years in prison for his role in an investment-fraud scheme in which he and his co-conspirators stole at least $5.7 million from victim investors.
James Michael Johnson, 69, of Richmond, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on Oct. 30, 2020, after a four-day trial.
According to the evidence presented at trial, Johnson participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the defendants’ promises had been kept. Johnson and his co-conspirators stole at least $5 million from their victims.
Co-defendant James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, 2021. Co-defendant Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service Criminal Investigations Group; Acting Special Agent in Charge Christopher R. Derrickson of the FBI’s Richmond Field Office; and Chair of the Virginia State Corporation Commission Judith Williams Jagdmann made the announcement.
The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and Virginia State Corporation Commission investigated the case.
Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia prosecuted the case.
Lynn Man Arrested for Possessing Three Pounds of Suspected Methamphetamine and Two FirearmsRead the Press Release
BOSTON – A Lynn man was arrested this week in connection with allegedly possessing over three pounds of methamphetamine and two firearms found in his residence.
David Oth, a/k/a “Baby Bouncer,” a/k/a “BB,” 32, was charged by criminal complaint with possession with intent to distribute controlled substances, being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. Following an initial appearance in federal court in Boston on Wednesday, March 3, 2021, Oth was detained pending a detention hearing scheduled for March 12, 2021.
According to charging documents, Oth was previously convicted of a felony offense in Essex Superior Court, which prohibited him from possessing firearms. On Feb. 24, 2021, law enforcement conducted a search at Oth’s residence in Lynn and found approximately three pounds of suspected methamphetamine and two firearms in the basement.
The charge of possession of a controlled substance with intent to distribute provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Based upon the seized weight of suspected narcotics, the statute provides for a mandatory minimum sentence of 10 years and up to life in prison and a fine of up to $10 million. The charge of possessing a firearm in furtherance of a drug trafficking conspiracy provides for a sentence of up to life in prison, a minimum period of five years from and after the sentence for the drug trafficking crime, five years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael A. Mageary made the announcement. Assistance was provided by the Essex County District Attorney’s Office, Middlesex County District Attorney’s Office, Suffolk County District Attorney’s Office and the Boston Police Department. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Longview Sex Offender Sentenced to Federal Prison for Child Pornography Violations Following International InvestigationRead the Press Release
TYLER, Texas – A Longview, Texas sex offender who was identified as part of a joint international investigation has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Charles Orange, 55, was convicted by a jury on Sep. 18, 2020, of possession of child pornography and was sentenced to 240 months in federal prison by U.S. District Judge Robert W. Schroeder III on March 4, 2021. Following Orange’s release from federal prison, he will be placed on a life term of supervised release.
“There is no place for Charles Orange in lawful society,” said Acting U.S. Attorney Nicholas J. Ganjei. “He is unapologetic, unrepentant, and unremorseful. Nothing short of incarceration will stop him from engaging in the sexual exploitation of children. The Court’s sentence sends a clear message to Charles Orange and to other likeminded predators – the public has the right to be protected. On behalf of the Eastern District of Texas, I wish to express my gratitude to HSI, INTERPOL, Thailand’s DSI, Australia’s AFP, and our other law enforcement partners from around the world for their tireless efforts and shared commitment to save the lives of children and bring sexual predators to justice.”
“Finding and arresting devious child predators who attempt to evade detection by law enforcement through use of the dark web and other anonymizing technologies remains a top priority for our agency,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “Fortunately, the investigative actions of our dedicated special agents have prevented this deviant from victimizing children within our community while also reminding other criminals that there are no safe spaces on the internet for sexual exploitation of children. We remain committed to our global law enforcement partnerships in fighting child sexual exploitation, and we will continue to relentlessly pursue the predators who seek to steal the innocence of our children.”
According to information presented at trial, the investigation of Charles Orange originated as a lead from INTERPOL’s Operation Blackwrist. Agents with HSI Tyler, acting upon information provided in the INTERPOL lead, executed a search warrant on Dec. 20, 2018 at Charles Orange’s residence in Longview, Texas. A device containing child pornography was found on a dresser next to Orange’s bed. According to the testimony of a forensic analyst, child pornography contained on the device had been accessed and downloaded as recently as the night before the execution of the search warrant. Analysts testified that Orange’s email address, Internet history, and Internet Protocol (IP) address connected him to the child exploitation website identified in Operation Blackwrist. Additionally, evidence presented at trial showed that the device was used to take surreptitious photographs of young boys in stores in Longview, Texas the day before the execution of the search warrant.
In 2008, Orange was convicted of Indecency with a Child and was required to register as a sex offender.
Operation Blackwrist, named after a bracelet worn by one of the victims, was launched by INTERPOL in 2017 following the discovery of material depicting the abuse of 11 boys, all under 13 years old. The material—first identified on the dark web—originated from a subscription-based website with nearly 63,000 users worldwide. For years, the site had published new material weekly, with the abuser taking great care to avoid detection, often masking the children and leaving very few visual or audio clues. Officers relied on the physical traits of the children to track their ongoing abuse and reached out to the global police community for help.
In June 2017, Thailand’s Department of Special Investigations (DSI) took on the case, working in close collaboration with INTERPOL’s Liaison Bureau in Bangkok. Investigators around the world also joined the effort to identify the 11 boys and locate website administrators. HSI eventually identified the website IP address and worked to establish links to the United States.
Bulgaria’s Cybercrime Department at the General Directorate Combating Organized Crime, supported by Europol, took down the website’s servers. The Department of Internal Affairs in New Zealand deconflicted intelligence and compiled information packages on website users for INTERPOL member countries. The U.S. National Center for Missing and Exploited Children cross-checked e-mail addresses and provided additional intelligence. The Australian Federal Police (AFP) and South Australian Police came on board when an IP address pointed to a location in Adelaide.
In November 2017, the first victims were identified, leading to simultaneous arrests in Thailand and Australia two months later. The website’s main administrator, based in Thailand, was identified as Montri Salangam. He was the man seen abusing the 11 boys, one of whom was his nephew. The children had been lured to Salangam’s home with meals, internet access and football games. A second administrator, Ruecha Tokputza, was based in Australia. Police found thousands of images taken in both Thailand and Australia on his seized devices, some of which featured Tokputza as the main abuser. The youngest identified victim during the South Australian court proceedings was just 15 months old.
In June 2018, Thai courts sentenced Salangam to 146 years in prison on charges of child rape, human trafficking, and possession and distribution of child sexual abuse material. A second man, an elementary school teacher close to Tokputza, received 36 years in prison on the same charges. On May 17, 2019, an Australian judge sentenced Tokputza to 40 years and three months in prison, the longest sentence ever imposed in Australia for child sex offenses. The judge referred to Tokputza as “every child’s worst nightmare” and “every parent’s horror.”
INTERPOL Secretary General Jürgen Stock welcomed the successful prosecutions and applauded the massive international effort required. “Operation Blackwrist sends a clear message to those abusing children, producing child sexual exploitation material and sharing the images online: We see you, and you will be brought to justice. Every child abuse image is evidence of a crime and INTERPOL will always provide its full support to officers on the ground to help identify and rescue victims around the world.”
“These efforts have already resulted in numerous arrests in the United States to include individuals occupying positions of public trust. We are proud to be a part of these international efforts,” said HSI Bangkok Regional Attaché Eric McLoughlin.
The website sparked a series of investigations around the world, leading to further arrests in Thailand, Australia, and the United States. Police in nearly 60 countries examined referrals compiled by New Zealand.
HSI Bangkok and HSI Indianapolis partnered with INTERPOL and DSI, as well as other law enforcement agencies, to pursue any investigative leads with a potential nexus to the United States. On January 16, 2018, HSI Bangkok assisted Thai authorities with the execution of search and arrest warrants in furtherance of this operation. One arrest was executed, and five victims were rescued at the time of the operation.
Following this operation, HSI Bangkok worked with the HSI Cyber Crimes Center (C3) to ensure actionable leads were provided to HSI domestic offices for further investigation. HSI Indianapolis, HSI Buffalo, HSI Ft. Lauderdale, HSI Norfolk, HSI Tyler, and C3 provided significant support for the operation.
To date, the operation has led to the rescue of 50 children, as well as the arrest and prosecution of child sex offenders in Thailand, Australia, and the United States.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The investigation leading to the charges was conducted by agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Longview Police Department with support from HSI C3. Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Marisa Miller prosecuted this case.
Local alleged drug dealers also charged with falsely obtaining tens of thousands of dollars through Pandemic Unemployment AssistanceRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged four Central Ohioans in a narcotics conspiracy involving bulk quantities of fentanyl, crack, cocaine and methamphetamine. Three of the four defendants have also been charged federally in a mail and wire fraud conspiracy related to illegally receiving Pandemic Unemployment Assistance.
Ricco Lamonte Maye, 38, of Columbus, was originally charged by indictment in November 2020 and has remained in federal custody since.
Airrika N. Anthony, 32, Nicole L. Groves, 31, and Kevin E. Pearson, 57, all of Columbus, are charged along with Maye in the superseding indictment returned Feb. 25. Maye, Anthony and Groves are charged in the fraudulent unemployment assistance conspiracy.
According to court documents, beginning in 2018, the four defendants conspired to, possessed and distributed 400 grams or more of fentanyl, 500 grams or more of cocaine, 280 grams of crack and five grams of methamphetamine.
It is also alleged Maye, Anthony and Groves fraudulently filed for Pandemic Unemployment Assistance. Maye received $7,400 from the state of Ohio and $10,000 from Michigan. In his applications, he allegedly claimed he was unemployed due to the coronavirus pandemic and in one application falsely claimed he lived in Michigan.
Anthony received $13,900 after allegedly falsely claiming she was unable to reach her place of employment due to a COVID-19 quarantine.
The superseding indictment details that Groves claimed to be unemployed because she is the primary caretaker of a child who was unable to attend school because of the coronavirus. The superseding indictment says Groves was actually employed and earned income at the time she received $11,800 in assistance funds.
Maye, Anthony and Groves allegedly used the personal information of other individuals to apply for additional pandemic assistance funds. Maye received all or a portion of the others’ benefits.
The drug conspiracy charged in this case is punishable by a minimum of 10 years and up to life in prison. Conspiracy to commit wire and mail fraud is punishable by up to 20 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the U.S. Department of Labor Office of Inspector General and Interim Columbus Police Chief Michael Woods announced the charges. Assistant United States Attorneys Kevin W. Kelley and Heather A. Hill are representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Kirtland couple pleads guilty to bribery of former city of Cleveland demolition officialRead the Press Release
A Kirtland couple has pleaded guilty in federal court to bribery of a former city of Cleveland demolition official in return for favorable service and treatment with building demolition projects.
Joseph Tucceri, 75, and Gwen Tucceri, 60, pleaded guilty to a Bill of Information charging them with honest services mail fraud, honest services wire fraud, bribery in federally funded programs and making and subscribing false income tax returns.
According to court records, the Tucceris owned and operated “R Demolition,” a business that provided demolition and construction services in the Cleveland area. From December of 2016 through May of 218, the Tucceris provided things of value, including more than $1,600 in cash payments, to Rufus Taylor, the former Chief of the Demolition Bureau for the city of Cleveland, in return for expedited service and favorable treatment regarding work performed by R Demolition on contracts within the city of Cleveland.
Specifically, the Tucceris made payments to Taylor in exchange for officials acts such as expedited service on demolition inspections and permits that were required for them to receive payment on a demolition contract. In addition, the Tucceris paid Taylor with the intent to influence his advice, which would form the basis for acts by other public officials that would ultimately benefit the Tucceris. As a result of their scheme, the Tucceris were able to obtain faster payments for demolition jobs, which gave them a competitive advantage over their competitors by allowing a quicker transition to additional contracts.
For example, according to the charges in the Bill of Information, , on or about May 19, 2017, Gwen Tucceri and Taylor had a phone conversation in which they discussed their arrangement, with Gwen stating that “we appreciate you,” and that she would “take care of everything I owe you for” when they next met. Taylor responded that he was grateful for “whatever you do to show your appreciation.” On or about May 22, 2017, the Tucceris met with Taylor and paid him $150 in return for favorable treatment on an inspection for one of their demolition projects and continued favorable treatment.
During that meeting, the Tucceris and Taylor also discussed a financial arrangement that involved Taylor repaying the Tucceris for a loan with favorable demolition inspections. Taylor asked, “we good [am I paid off now]?” Gwen agreed, and Taylor stated, “Now we just keep it moving [continue exchanging bribes for favorable treatment].” Gwen repeatedly stated, “We appreciate you.” Taylor thanked Joseph for the payment and said that they would “continue to handle our business,” with Gwen replying, “I’ll take care of you with the other stuff [pay you for the other upcoming inspections].”
Additionally, for the calendar year of 2016, Joseph and Gwen Tucceri both pleaded guilty to submitting a false income tax return that failed to report their full amount of income from all sources. As a result, the return understated the full amount of taxes owed.
Rufus Taylor pleaded guilty to an indictment charging him with bribery in federally funded programs and extortion under color of official right in September of 2018. Taylor is set to be sentenced on June 2, 2021.
This case was investigated by the Cleveland Division of the FBI, Department of Housing and Urban Development Office of Inspector General and IRS-Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Chelsea S. Rice and Elliot D. Morrison.
Jury Convicts Newport News Mastermind of Armed Robbery SpreeRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man today on 20 counts relating to his participation during a series of more than 12 robberies of gas stations, convenience stores, and fast food restaurants stretching from Fredericksburg to Virginia Beach.
“As demonstrated during the trial, this defendant served as the mastermind of an armed robbery spree that was chilling in its nature and scope,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s verdict sends a clear message that our Office, along with its law enforcement partners, will work tirelessly to seek justice on behalf of victims and hold accountable individuals who spread fear in our communities.”
According to court records and evidence presented at trial, between 2013 and 2014, Christopher Ray Robertson, 36, served as the mastermind behind a series of retail business robberies in the Eastern District of Virginia. In the fall of 2013, Robertson enlisted the help of convicted felon, Michael Ellison, 30, Newport News, to commit multiple robberies of retail businesses in central and southeast Virginia. Robertson selected the businesses, directed Ellison’s actions, and served as the lookout during the robberies. After robbing or attempting to rob four businesses in Fredericksburg and Spotsylvania from September 24 to October 13, 2013, Ellison and Robertson parted company for approximately one year to evade law enforcement detection.
Between November 2013 and the fall of 2014, Robertson was living in Durham, North Carolina, where he met Aquilla Jones, 31, Durham, North Carolina. Robertson and Jones began a relationship before moving back to Newport News in 2014. Robertson and Ellison then reconnected in Newport News and Robertson suggested they restart robbing businesses. In December 2014, Robertson, Jones, Ellison, and a juvenile robbed or attempted to rob eight businesses using a firearm provided by Robertson. Robertson provided instructions to his co-conspirators during these robberies, and he and Jones served as lookouts while Ellison and the juvenile entered the businesses wearing masks.
On December 13, 2014, during a Subway restaurant robbery, bystanders in the parking lot identified the vehicle driven by Ellison. This ultimately led to Ellison being arrested for the robbery in Spotsylvania County. Law enforcement identified Ellison as being associated with the robberies and further identified Robertson as a co-conspirator. Phone analysis showed Robertson’s phone in the immediate vicinity of all the robberies committed in 2014.
Jones and Ellison both pleaded guilty on February 6, 2019, and September 11, 2017, respectively, for their roles in the robberies.
Robertson was convicted of conspiracy to commit robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence. He faces a mandatory minimum of 42 years in prison and a maximum of life when sentenced on July 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Eric M. Hurt and Peter G. Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-27.
John David McAfee and Executive Adviser of His Cryptocurrency Team Indicted in Manhattan Federal Court for Fraud and Money Laundering Conspiracy CrimesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOHN DAVID MCAFEE, the founder of the McAfee antivirus software company, and JIMMY GALE WATSON JR., who served as an executive adviser of MCAFEE’s so-called cryptocurrency team (the “McAfee Team”), with conspiracy to commit commodities and securities fraud, conspiracy to commit securities and touting fraud, wire fraud conspiracy and substantive wire fraud, and money laundering conspiracy offenses stemming from two schemes relating to the fraudulent promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities. WATSON, who was arrested last night in Texas, will be presented later today before a federal magistrate judge in the Northern District of Texas. MCAFEE is currently detained in Spain on separate criminal charges filed by the United States Department of Justice’s Tax Division.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, McAfee and Watson exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception. The defendants allegedly used McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives. McAfee, Watson, and other members of McAfee’s cryptocurrency team allegedly raked in more than $13 million from investors they victimized with their fraudulent schemes. Investors should be wary of social media endorsements of investment opportunities.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, McAfee and Watson used social media to perpetrate an age-old pump-and-dump scheme that earned them nearly two million dollars. Additionally, they allegedly used the same social media platform to promote the sale of digital tokens on behalf of ICO issuers without disclosing to investors the compensation they were receiving to tout these securities on behalf of the ICO. When engaging in illegal activity, simply finding new ways to carry out old tricks won’t produce different results. Investment fraud and money laundering schemes carry a strict penalty under federal law.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment against JOHN DAVID MCAFEE and JIMMY GALE WATSON JR. and an earlier-filed criminal Complaint against MCAFEE:[1]
During the period from in or about December 2017 through in or about October 2018, JOHN DAVID MCAFEE and JIMMY GALE WATSON JR., and other members of the McAfee Team, perpetrated two fraudulent schemes relating to the promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities.
The first scheme involved a fraudulent practice called “scalping,” which is sometimes referred to as a “pump and dump” scheme. This scalping scheme generally consisted of the following. First, MCAFEE, WATSON, and other McAfee Team members bought large quantities of publicly traded cryptocurrency altcoins, which qualified as commodities or securities, at inexpensive market prices with advance knowledge that MCAFEE planned to publicly endorse them via his widely followed Twitter account (the “Official McAfee Twitter Account”). Second, after these purchases, MCAFEE published false and misleading endorsement tweets via his Official McAfee Twitter Account recommending those altcoins to members of the investing public for investment in order to artificially inflate (or “pump” up) their market prices without disclosing that MCAFEE owned large quantities of the promoted altcoins, even though MCAFEE had given false assurances that he would disclose such information in various tweets and public statements during the scalping scheme. Third, MCAFEE, WATSON, and other McAfee Team members then sold (or “dumped”) their respective investment positions in the promoted altcoins into the temporary but significant short-term market price increases that MCAFEE’s deceptive tweets typically generated, often for significant profits. From in or about December 2017 through in or about January 2018, MCAFEE, WATSON, and other McAfee Team members collectively earned more than $2 million in illicit profits from their altcoin scalping activities while the long-term value of the recommended altcoins purchased by investors declined substantially as of a year after the promotional tweets. From in or about December 2017 through in or about October 2018, MCAFEE, WATSON, and other McAfee Team members engaged in various efforts to liquidate the digital asset proceeds of their scalping activities into United States currency.
In the second scheme, MCAFEE, WATSON, and other McAfee Team members also used MCAFEE’s Official McAfee Twitter Account to publicly tout fundraising events called “initial coin offerings” (“ICOs”) in which startup businesses (“ICO issuers”) issued and sold digital tokens qualifying as securities to the investing public, without disclosing and, in fact, concealing that the ICO issuers were compensating MCAFEE and his team for his promotional tweets with a substantial portion of the funds raised from ICO investors. As the United States Securities and Exchange Commission had publicly warned, and as MCAFEE and WATSON well knew, the federal securities laws required them to disclose any compensation paid by ICO issuers for touting securities offerings styled as ICOs. From approximately on or about December 20, 2017 through on or about February 10, 2018, MCAFEE, WATSON, and other McAfee Team members collectively earned more than $11 million in undisclosed compensation that they took steps to affirmatively hide from ICO investors. In each instance, MCAFEE and WATSON failed to disclose to ICO investors that the ICO Issuers were paying the McAfee Team a substantial portion of the funds raised from ICO investors for their touting efforts, despite knowing that they were required to disclose such compensation under federal securities laws. Furthermore, in several instances during this ICO touting scheme, MCAFEE and WATSON took active steps to conceal their secret compensation arrangements with ICO issuers from ICO investors, and MCAFEE made false and misleading statements and omissions to hide such deals from ICO investors. From approximately in or about December 2017 through in or about October 2018, MCAFEE, WATSON, and other McAfee Team members engaged in various efforts to liquidate the digital asset proceeds of their ICO touting activities into United States dollars.
During the period from in or about December 2017 through in or about October 2018, MCAFEE and WATSON caused another McAfee Team member to engage in banking transactions to launder proceeds of the fraudulent ICO touting scheme.
In separate parallel enforcement actions, the United States Securities and Exchange Commission (the “SEC”) and Commodity Futures Trading Commission (“CFTC”) have filed civil charges against MCAFEE and WATSON.
* * *
MCAFEE, 75, and WATSON, 40, are United States citizens. Both of them are charged in a seven-count Indictment with one count of conspiracy to commit commodities and securities fraud, which carries a maximum potential sentence of five years in prison; one count of conspiracy to commit securities and touting fraud, which carries a maximum potential sentence of five years in prison; two counts of conspiracy to commit wire fraud and two counts of substantive wire fraud, each of which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of ten years in prison. In addition to potential prison sentences, each of these charges also carries potential financial penalties. The maximum potential prison sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences to be imposed on the defendants will be determined by the judge.
Ms. Strauss praised the work of the FBI on the investigation of this case and thanked the SEC and CFTC, both of which conducted separate parallel investigations, for their assistance.
This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer and Elizabeth Hanft are in charge of the prosecution.
The allegations contained in the charging documents in this case are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment and the description of those charging documents set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on March 1 was:
David Raymond Smith, 59, of Hamilton, on charges of false statements to bank and bank fraud. If convicted of the most serious crime, Smith faces a maximum 30 years in prison, a $1 million fine and five years of supervised release. Smith was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-01.
Laura Jeanne Haacke, 46, of Missoula, on charges of conspiracy and possession with intent to distribute. If convicted of the most serious crime, Haacke faces mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Haacke was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-02.
Appearing on March 2 and pleading not guilty was:
Russell Joseph Breton, 61, of Polson, on charges of possession with intent to distribute and felon in possession of a firearm. If convicted of the most serious crime, Breton faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Breton was released pending further proceedings. The Drug Enforcement Administration, Homeland Security Investigations, Polson Police Department and Lake County Sheriff’s Office investigated the case. PACER case reference. 21-04.
Aaron Charles Foote, 34, a transient, on charges of conspiracy, wire fraud and aggravated identity theft. If convicted of the most serious crime, Foote faces 20 years in prison, a $250,000 fine and three years of supervised release. Foote was detained pending further proceedings. The FBI and Billings Police Department investigated the case. PACER case reference. 21-01.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 3 was:
Crystal Leigh Speakthunder, 38, a transient, on charges of conspiracy, wire fraud and aggravated identity theft. If convicted of the most serious crime, Speakthunder faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Speakthunder was detained pending further proceedings. The FBI and Billings Police Department investigated the case. PACER case reference. 21-01.
Appearing on March 1 and pleading not guilty was:
Carl Mark Madden, 46, of Billings, on charges of wire fraud, aggravated identity theft and prohibited person in possession of a firearm. If convicted of the most serious crime, Madden faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Madden was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-05.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Idaho man charged with hacking into the computers of the City of Newnan and metro-Atlanta medical clinicsRead the Press Release
NEWNAN, Ga. - Robert Purbeck, of Meridian, Idaho, made his initial appearance before a U.S. Magistrate Judge in Boise, Idaho. Purbeck was indicted in the Northern District of Georgia on March 2, 2021 for computer fraud and abuse, access device fraud, and wire fraud.
“This alleged cyber-criminal and extortionist targeted the City of Newnan as well as medical clinics in our District, stealing over 60,000 records containing personal information of our citizens,” said Acting U.S. Attorney Kurt R. Erskine. “He then allegedly attempted to extort a Florida orthodontist, threatening to sell the social security number of his minor child unless the orthodontist submitted to a payment demand. Now, this defendant must answer for his alleged crimes in the Northern District of Georgia.”
“The charges against Purbeck highlight the need to remain vigilant in our cybersecurity efforts,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The theft of intellectual property to be used to extort citizens is a very serious crime and one the FBI will diligently pursue, no matter if you are hiding behind a computer screen.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Between June 23, 2017 and April 28, 2018, Purbeck allegedly purchased, on a criminal marketplace, the username and passwords to computer servers belonging to multiple Georgia victims. He then allegedly used these credentials to access the victims’ computers and stole sensitive personally identifiable information, including:
- Medical records and other documents that contained names, addresses, birth dates, and social security numbers of over 43,000 people from a Griffin, Georgia, medical clinic;
- Police reports and other documents containing personal information of over 14,000 people from the City of Newnan; and
Personal information of over 7,000 people from a Locust Grove, Georgia, medical practice.
On June 25, 2018, Purbeck allegedly hacked into the computers of an orthodontist in Florida and stole medical records of over 1,800 people. Purbeck then allegedly threatened, harassed, and attempted to extort the orthodontist, demanding a ransom payment in Bitcoin. Purbeck also allegedly threatened to disclose and sell the stolen patient and personal information unless the orthodontist paid the ransom demand. Purbeck allegedly identified the name and social security number of the orthodontist’s minor child and threatened to disclose and sell their personal information as well. During the course of this attempted extortion, Purbeck allegedly sent numerous harassing e-mails and text messages to the orthodontist and his patients.
Robert Purbeck, a/k/a Lifelock, a/k/a Studmaster, 41, of Meridian, Idaho, was indicted by a federal grand jury in the Northern District of Georgia on March 2, 2021. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Atlanta Field Office, with valuable assistance provided by the FBI Boise Resident Agency.
Assistant U.S. Attorneys Michael Herskowitz, Chief of the Cyber and Intellectual Property Crimes Section and Nathan Kitchens, Chief of the Public Integrity and Special Matters Section, and the U.S. Department of Justice Computer Crimes and Intellectual Property Section (CCIPS) are prosecuting the case. The U.S. Attorney’s Office for the District of Idaho has also provided valuable assistance in this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Hull Man Arrested on Fraud Charge Arising from Fraudulent CARES Act Small Business LoansRead the Press Release
BOSTON – A Hull man was arrested today and charged in connection with submitting fraudulent documentation in order to receive CARES Act small business loans.
Shane Spierdowis, 30, was charged by criminal complaint with one count of wire fraud. Spierdowis will make an initial appearance before U.S. District Court Magistrate Judge Donald L. Cabell at 2:00 p.m. today.
According to a charging documents, Spierdowis used false Social Security numbers and fraudulent documentation to apply for federally-funded Small Business Administration (SBA) loans issued in connection with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Spierdowis obtained an SBA Paycheck Protection Program (PPP) loan of $101,517 in the name of a Limited Liability Company (LLC), the funds for which were wired to a bank in Massachusetts. In connection with this loan, Spierdowis provided a fraudulent corporate bank statement reflecting a balance exceeding $220,000; in fact, this statement was dated before the pertinent bank account was ever opened.
It is alleged that Spierdowis also obtained an SBA Economic Injury Disaster loan (EIDL) of $89,900 in connection with a separate LLC. In connection with both loans, Spierdowis allegedly used Social Security numbers that differ from his actual Social Security number. Spierdowis also submitted fraudulent federal tax forms for both of these LLCs. These tax forms reflect the signature of Spierdowis, as president of each LLC, and reflect the payment of hundreds of thousands of dollars in wages to LLC employees during each quarter in 2019. In fact, for part of Q1 2019 and all of Q2 – Q4 2019, Spierdowis was in federal custody after violating his probation arising from a conviction for conspiracy to commit securities fraud. Federal court records reveal that Spierdowis informed the Court of his efforts to obtain work in early 2019 without mentioning anything about his supposed presidency of either LLC.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. The Hull Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MAURICIO SANTOS-RIVERA, age 34, a citizen of Honduras, was sentenced on March 4, 2021 after pleading guilty to illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to the bill of information, MAURICIO SANTOS-RIVERA was encountered in the United States on or about January 5, 2021, after having been previously removed therefrom on or about November 21, 2005.
Judge Ivan L.R. Lemelle sentenced MAURICIO SANTOS-RIVERA to time served and one year of supervised release after imprisonment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Two TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Adony Benitez-Ramires, age 34, a citizen of Honduras illegally present in the United States and residing in Marion, Iowa, received the prison term after a guilty plea on January 13, 2021, to one count of illegal reentry into the United States.
At the guilty plea, Benitez-Ramires admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Benitez-Ramires was deported in September 2012 and June 2018. Benitez-Ramires was convicted in a Texas federal court in May 2018 of illegal entry into the United States, a misdemeanor. Benitez-Ramires most recently came to the attention of immigration agents following an arrest in Linn County, Iowa, on state charges in November 2020.
Benitez-Ramires was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Benitez-Ramires was sentenced to 89 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Benitez-Ramires is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-99.
Follow us on Twitter @USAO_NDIA.
Hamden Man Charged with Distributing FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in Hartford has returned a four-count indictment charging DARRYL SMALL, 33, of Hamden, with fentanyl distribution offenses.
The indictment was returned on March 2. Small has been detained since February 24 when he was arrested on a criminal complaint.
As alleged in court documents, the FBI’s Safe Streets Task Force began investigating Small after receiving information that he was distributing heroin and fentanyl in and around New Haven. In late 2020 and early 2021, investigators conducted multiple controlled purchases of fentanyl from Small.
The indictment charges Small with three counts of possession with intent to distribute, and distribution of, fentanyl, which carries a maximum term of imprisonment of 20 years on each count.
The indictment also charges Small with one count of possession with intent to distribute, and distribution of, 40 grams or more of fentanyl, an offense that typically carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. The indictment alleges that Small is eligible for an enhanced penalty on this charge because of a prior conviction for a serious violent felony, increasing the mandatory minimum term of imprisonment to 10 years and the maximum term of imprisonment of life.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI Safe Streets Task Force includes officers from the New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Guatemalan Man Sentenced for Illegal Re-Entry into United States and Escape from CustodyRead the Press Release
ALBANY, NEW YORK – Mario Ipsolino Pineda-Boteo, age 35, a citizen of Guatemala, was sentenced today to time served (196 days in jail) for illegally re-entering the United States and escaping the custody of United States officers.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Pineda-Boteo admitted as part of his guilty plea that he is a citizen of Guatemala, and that he was removed from the United States to Guatemala on September 9, 2010. On August 21, 2020, he was found in the United States near Greenfield in Saratoga County. A check of fingerprint records verified the prior removal.
Pineda-Boteo also admitted that, following his arrest for illegal re-entry and being placed in handcuffs, he fled the custody of ICE Officers by running into a nearby wooded area in Greenfield, where he attempted to hide.
Pineda-Boteo will be placed into removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
Grant County woman indicted on drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Melissa Dawn Bailey, of Cabins, West Virginia, was arraigned today on drug charges, Acting United States Attorney Randolph J. Bernard announced.
Bailey, 41, was indicted by a federal grand jury sitting in Elkins in February 2021 on three counts of “Distribution of Methamphetamine.” Bailey is accused of selling methamphetamine, also known as “crystal meth,” in June 2020 in Grant County.
Bailey faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Grant County Sheriff’s Office; the Moorefield Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Indicts Providence Man on Bank Robbery ChargesRead the Press Release
PROVIDENCE – A Providence man previously convicted and incarcerated for robbing a total of seven banks dating back to 1997 was indicted today by a federal grand jury in Providence on charges he allegedly robbed three banks and attempted to rob a fourth in three days beginning on January 19, 2021.
It is alleged in the indictment that Vaughn Watrous, 44, on January 19, robbed a Santander Bank branch office on North Main Street in Providence; on January 20, robbed a Citizens Bank branch office in Kennedy Plaza in downtown Providence; and on January 21, attempted to robbed a TD Bank branch office in North Providence on January 21; and on January 21, robbed a Santander Bank branch office in Cranston.
It is alleged that, in each incident, tellers were handed notes demanding cash.
According to court files, Watrous was convicted in U.S. District Court in Salt Lake City, Utah, in 1997 on a charge of bank robbery and sentenced to 51 months in federal prison; in 2003 in U.S. District Court in Providence on two counts of bank robbery and sentenced to 76 months in federal prison; and in October 2015 in federal court in Providence on four counts of bank robbery and sentenced in February 2016 to 92 months in federal prison.
Watrous has been detained at the ACI since his most recent arrest on January 24, 2021, by Providence Police, acting on an arrest warrant issued at the request of the Cranston Police Department for robberies in Cranston and North Providence.
A federal grand jury today returned an indictment charging Vaugh Watrous with three counts of bank robbery and one count of attempted bank robbery, announced Acting United States Attorney Richard B. Myrus, Cranston Police Chief Colonel Michael J. Winquist, Providence Police Colonel Hugh T. Clements, Jr., North Providence Police Chief Arthur J. Martins, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
###
Four Members of Interstate Home Burglary Crew Admit to Conspiring to Transport Stolen PropertyRead the Press Release
NEWARK, N.J. – Four individuals admitted to their roles in conspiring to transport stolen property derived from home burglaries across state lines and related crimes, Acting U.S. Attorney Rachael A. Honig announced today.
Julian Zorilla, 53, Erica Rincon, 39, Jhonatan Lozada Serna, 32, all Colombian nationals, and Pablo Neira, 26, of New York, pleaded guilty by videoconference this week before U.S. District Judge Stanley R. Chesler to informations charging each of them with one count of conspiracy to transport stolen property across state lines. In addition, Zorilla, Rincon, and Neira also pleaded guilty to conspiracy to commit bank fraud, and Lozada Serna pleaded guilty to illegally re-entering the United States of America after being previously deported for an aggravated felony.
According to documents filed in this case and statements made in court:
From Dec. 14, 2019, through Jan. 14, 2020, Zorilla, Rincon, Neira, and Lozada Serna conspired with each other to burglarize homes in New Jersey, Pennsylvania, and Delaware. The defendants stole money, jewelry, and designer clothing. They were arrested while breaking into a home in Wilmington, Delaware.
Zorilla, Rincon, and Neira obtained fraudulent foreign travel documents under fictitious names to gain access to United States banks. They used fraudulently obtained financial devices to rent vehicles and hotel rooms used in furtherance of the commission of these home burglaries. Lozada Serna illegally re-entered the United States after his removal in 2019 after he was previously convicted of an aggravated felony in Texas.
The charge of conspiracy to transport stolen property carries a maximum penalty of five years in prison, and a maximum fine of $250,000. The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. The charge for illegally re-entering the United States carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing for all four defendants is scheduled for July 13, 2021.
Acting U.S. Attorney Honig credited the FBI, under the direction of George M. Crouch Jr. in Newark, with the investigation leading to the guilty pleas. She also thanked special agents of the FBI Baltimore Division, Wilmington Resident Agency and Delaware Violent Crimes Task Force; the FBI New York Office, Joint Terrorism Task Force, John F. Kennedy Airport Resident Agency; Immigration and Customs Enforcement – Enforcement and Removal Operations, Newark; the New Castle County Delaware Police Department, and the Beachwood New Jersey Police Department, for their work on the case.
The government is represented by Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
Foster Man Indicted on Child Pornography ChargesRead the Press Release
PROVIDENCE – A Foster man convicted and incarcerated in 2017 for sharing sexually explicit photographs online with a person he believed to be a 13-year-old girl, and with whom he attempted to meet near her middle school to engage in sex, has been indicted by a federal grand jury on child pornography charges.
John Q. Adams, 31, was arrested on February 11, 2021, following an investigation by Homeland Security Investigations and the Rhode Island State Police Internet Crimes Against Children Task Force, which determined that in January 2021, Adams allegedly uploaded video depicting a prepubescent female engaged in various sex acts with an adult male.
Adams, who has been detained since his arrest, was indicted today by a federal grand jury on charges of receipt of child pornography and possession of child pornography, announced Acting United States Attorney Richard B Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Rhode Island State Police Superintendent James M. Manni.
If convicted as charged in the indictment, Adams faces statutory penalties of between 15 - 40 years of federal imprisonment followed by up to lifetime supervised release.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton
###
Former detention center officer sentenced to eight months in halfway house for sexual abuseRead the Press Release
ALBUQUERQUE, N.M. – Paul Wollweber, 41, an enrolled member of the Pueblo of Acoma, was sentenced in federal court on Feb. 25 to eight months at a halfway house for abusive sexual contact. Wollweber pleaded guilty on Oct. 28, 2019.
According to the plea agreement, on Aug. 29, 2015, while working as a detention center officer at the Acoma Detention Facility, Wollweber sexual abused of a female inmate. Wollweber touched the victim’s chest and continued to place his hands around her lower back and under her clothes. Wollweber also forced the victim to engage in kissing. The victim pushed Wollweber away to stop him from kissing and grabbing her. The Acoma Detention Facility is located on the Pueblo of Acoma, Indian Country.
In addition to his sentence, Wollweber will also be required to register as a sex offender.
The case was investigated by agents of the Bureau of Indian Affairs, Southern Pueblos District. Assistant U.S. Attorneys Novaline D. Wilson and Raquel Ruiz Velez prosecuted this case.