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3 March 2021
Romanian National Sentenced to 45 Months’ Imprisonment for Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 2, 2021, Costel Aparaschivei, age 38, of Romania, was sentenced to 45 months’ imprisonment by United States District Court Judge Robert D. Mariani, for bank fraud and identity theft offenses.
According to Acting United States Attorney Bruce D. Brandler, Aparaschivei was convicted of conspiring to commit bank fraud between October 6, 2018 and October 21, 2018, and of aggravated identity theft. Aparaschivei pled guilty to obtaining counterfeit debit cards bearing stolen account numbers and PINs in New York, and transporting them to South Abington Township, Pennsylvania. In Pennsylvania, Aparaschivei and his coconspirator, Daniel Gologan, used the counterfeit debit cards at Penn East Federal Credit Union and attempted to withdraw approximately $144,620. The conspirators successfully withdrew $66,510, which Judge Mariani ordered to be paid as restitution.
In pronouncing the sentence, Judge Mariani highlighted the fact that Aparaschivei began committing his offense within approximately one month of entering the United States illegally. Aparaschivei will be deported to Romania following the conclusion of his sentence.
Aparaschivei’s coconspirator, Gologan, also pled guilty to bank fraud conspiracy and aggravated identity theft, and was sentenced to 40 months’ imprisonment. Gologan will be deported following the conclusion of his sentence.
The matter was investigated by the United States Secret Service and by the South Abington Township Police Department. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Provider of Federally-Funded Tutoring Services to Underprivileged New York City Public School Students Agrees to Settle Civil Fraud AllegationsRead the Press Release
Innovative Educational Programs, LLC (Innovative), an educational services provider, has agreed to pay the United States $1,185,000 to resolve civil allegations that it fraudulently billed the United States for tutoring services for underprivileged New York City students that it never actually provided.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Terry Harris, Special Agent-in-Charge, U.S. Department of Education, Office of Inspector General, Eastern Regional Office (DOE-OIG), announced the settlement.
“This settlement should put providers of educational services on notice that this Office will aggressively protect federal programs meant to help disadvantaged students and will hold accountable those who exploit and manipulate such programs,” stated Acting United States Attorney DuCharme.
“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. Today’s settlement is a result of the hard work and effort of OIG special agents and staff,” stated DOE-OIG Special Agent-in-Charge Harris. “I'm proud of their efforts, as well as those of our law enforcement partners and the U.S. Attorney’s Office whose actions today corroborates the importance of maintaining the integrity of Federal education programs and the taxpayer funds that support them.”
The settlement resolves allegations that, between 2009 and 2012, Innovative, a New Jersey limited liability corporation, fraudulently obtained federal funds for purportedly providing after-school tutoring services to underprivileged students attending underperforming New York City public schools. The New York City Department of Education paid Innovative $72.80 per hour for each student that Innovative tutored. This money consisted entirely of funds made available to New York State by the United States under the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001. As a condition for receiving payment for its tutoring services, Innovative was required to certify that its attendance records were true and accurate. The government’s investigation revealed that Innovative billed the government for allegedly providing after-school tutoring services to students on days when the students were, in reality, absent from school.
The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act (the Act). Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery. The Act also permits the government to intervene in such actions, as the government has done in this case.
The claims resolved by the settlement are allegations only and there has been no finding of liability by a court. Innovative has expressly denied these allegations and any liability under the Act.
The United States’ case was handled by Assistant U.S. Attorney James R. Cho of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Paralegal Loan Nguyen.
E.D.N.Y. Docket No. 12-CV-094 (FB)
Pennsylvania man indicted on false ID chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ray Roberto Carrion-Susana, of Wilkes Barre, Pennsylvania, appeared today in federal court to face charges of fraud involving false identification, Acting United States Attorney Randolph J. Bernard announced.
Carrion-Susana, 36, was indicted in August 2020 on one count of “Fraud in Connection with Identification Documents – Possession of Five or More False Identification Documents with Intent to Use Unlawfully” and one count of “Fraud in Connection with Identification Documents – Possession of Document-Making Implement and Authentication Feature with Intent to Produce False Identification Document.” Carrion-Susana is accused of creating fraudulent driver’s licenses with a real person’s name but the defendant’s picture, as well as having a computer with document making software program and multiple seals and holograms in order to create said false IDs. The crimes are alleged to have occurred in April 2019 in Preston County.
Carrion-Susana faces up to five years of incarceration and a fine of up to $250,00 for the for the first count and faces up to 15 years of incarceration and a fine of up to $250,000 for the second count. 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. Attorneys Jarod J. Douglas and Danae DeMasi-Lemon are prosecuting the case on behalf of the government. The U.S. Secret Service 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.
Owner of Local Energy Service Companies Indicted for Bankruptcy FraudRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned an indictment charging a Shreveport businessman, Michael Ray Carr, Jr., 39, with concealment of bankruptcy estate assets.
According to the indictment, Carr was the sole and principal owner of PADCO Energy Services, LLC (“Energy”), and sixty percent owner PADCO Pressure Control, LLC (“Pressure”), with both businesses consisting of mainly oilfield services. On October 4, 2016, Energy and Pressure filed for Chapter 11 bankruptcy. The bankruptcy documents were signed by Carr and certified under penalty of perjury that the information contained in them was true and correct.
The indictment alleges that a bankruptcy court hearing was held on September 12, 2017, wherein Pressure and Carr agreed to turn over property of the estate, oilfield equipment, to the bankruptcy trustee. However, on October 5, 2017, the Chapter 11 trustee for Pressure filed a motion in the bankruptcy proceeding claiming that Pressure and Carr had failed to turn over the property of the estate. On December 1, 2017, an agreement between Pressure, Energy, Carr, and the creditors was reached and a consent order was approved by the bankruptcy court stating that the Chapter 11 trustee could secure all equipment referenced in the order.
It is further alleged in the indictment that Carr knowingly and fraudulently concealed property for Pressure and Energy which belonged to the bankruptcy estate, from the Chapter 11 trustee charged with control of the debtor’s property, from the creditors, and the United States Trustee.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI is conducting the investigation and Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
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North Carolina Return Preparer Pleads Guilty to Tax Fraud SchemeRead the Press Release
A North Carolina return preparer pleaded guilty today to conspiring to defraud the United States.
According to court documents, Hildares Kinkesha Parker-Greene managed a tax return preparation business located in Kinston, North Carolina, from at least January 2016 through March 2016. Parker-Greene conspired with another return preparer to fraudulently inflate clients’ tax refunds by claiming false wages, federal income tax withholdings, and dependents. This fraudulent conduct caused clients to receive refunds to which they were not entitled.
Additionally, between 2017 and 2018, Parker-Greene operated a tax preparation business out of her home and continued to prepare false returns for clients. In total, the false returns prepared by Parker-Greene and her co-conspirator sought to defraud the IRS of more than $550,000.
Parker-Greene is scheduled to be sentenced before U.S. District Court Judge James C. Dever III and faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. Judge Dever 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 U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Michael Jones and William Guappone of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
New York man sentenced to nearly 20 years for taking West Virginia teen across state lines for sexRead the Press Release
WHEELING, WEST VIRGINIA – Max Paul Levine, of Bronx, New York, was sentenced today to 235 months of incarceration for the interstate transport of a minor for sex, Acting United States Attorney Randolph J. Bernard announced.
Levine, also known as “James Connely” and “Noxx Nocten,” age 36, pled guilty in October 2020 to one count of “Transportation of a Minor Across State Lines for Sexual Purposes.” Levine admitted to transporting a 15-year-old West Virginia girl from her Harrison County home to his residence in Bronx, New York to engage in sexual activity in June 2019.
“Levine preyed on the most vulnerable, a teenaged girl. The sentence in this case is a just one and will prevent him from hurting anyone else. Many predators use today’s technology to find and groom victims. Even with the most diligent parents, predators can find a way into your children’s lives. Look for apps that look suspicious, ask questions, and keep an open line of communication,” said Bernard.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Nashua Man Sentenced to 120 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Spencer Katsohis, 28, of Nashua, was sentenced to 120 months in federal prison for possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on October 3, 2018, Nashua police officers stopped a vehicle after observing several traffic infractions. Katsohis was the driver and sole occupant of the car. One of the officers observed the top of a small plastic bag protruding from the center console. The officer asked Katsohis about the bag, and Katsohis admitted it contained drugs. During a subsequent search of the car, officers locate an additional larger bag containing just over 15 grams of fentanyl. Katsohis then informed the officers that he had a third bag concealed in his pants. Katsohis admitted that he was distributing fentanyl in the area.
On January 30, 2019, Nashua officers went to Katsohis’ home to execute a warrant for his arrest for the October offense. When Katsohis answered the door, officers saw in plain view a white powder, scale, and green pill capsules on the kitchen counter behind him. It appeared that the powder was being packaged in the capsules. Katsohis admitted to picking up fentanyl and cocaine in Lawrence, Massachusetts for redistribution in Nashua. Officers observed and downloaded multiple text conversations on Katsohis’ phone consistent with distribution activities. The seized powder and contents of the capsules contained fentanyl.
After Katsohis pleaded guilty and was awaiting sentencing, he was arrested for additional drug-related activity. On June 17, 2020, Nashua police officers responded to a single car accident in which Katsohis was the driver. During a subsequent search of his person and vehicle, officers discovered approximately 130 grams of fentanyl. Evidence discovered on Katsohis’ phone showed that he was distributing the drugs.
Katsohis pleaded guilty to the additional criminal activity on November 17, 2020.
“Fentanyl trafficking is a menace to public health and safety,” said U.S. Attorney Murray. “By bringing quantities of fentanyl from Lawrence to Nashua for distribution, the Defendant made a very dangerous substance available for sale. Thanks to the work of the Nashua Police Department and Operation SOS, this defendant will be incarcerated for ten years and unable to further endanger the lives of Granite Staters.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Michigan man sentenced for meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Shook, of Detroit, Michigan, was sentenced today to 57 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Shook, age 33, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2020. Shook admitted to having methamphetamine in August 2020 in Monongalia County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Methamphetamine Source for Wausau Conspiracy Sentenced to 84 MonthsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Chong Chueneng Moua, 52, St. Paul, Minnesota, pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 84 months in federal prison for his role in supplying methamphetamine to a distribution conspiracy operating in Wausau, Wisconsin.
Lisa Xiong, the leader of the conspiracy, drove to Minnesota to pick up methamphetamine from Moua on several occasions. She then distributed that methamphetamine to lower level associates in and around Wausau. Lisa Xiong and Moua were arrested in possession of a pound of methamphetamine in June 2019. Moua joined the conspiracy towards the end of its operation and was only involved for a short time, but during his tenure, he provided over 2 pounds of methamphetamine for distribution into the Wausau area.
While Moua has never spent more than a few weeks in jail prior to his involvement in the present case, Judge Peterson recognized Moua as a more significant participant in the drug trafficking operation because he was a source of large quantities of methamphetamine flowing into Wisconsin.
Eleven individuals were charged in an indictment returned by a federal grand jury in September 2019 for their roles in this methamphetamine distribution conspiracy. Chueneng Chong Moua is the ninth defendant to plead guilty and be sentenced. The others are:
1. Meng Xiong, Wausau, was sentenced to 5 years on June 12, 2020;
2. Chou Xiong, Wausau, was sentenced to 78 months on December 8, 2020;
3. Soua Khang, Wisconsin Rapids, Wisconsin, was sentenced to 7 years on December 9, 2020;
4. Lisa Xiong, Wausau, Wisconsin, was sentenced to 156 months on December 21, 2020;
5. John Gates, Hewitt, Wisconsin, was sentenced to 5 years on December 23, 2020;
6. Ya Yang, Wausau, Wisconsin, was sentenced to 30 months on January 11, 2021;
7. Vang Yang, St. Paul, Minnesota, was sentenced to 30 months on January 21, 2021; and
8. Chai Thao, Wausau, Wisconsin, was sentenced to 5 years on March 1, 2021.
The charges against these defendants was the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Lincoln County Sheriff’s Office; Wausau Police Department; Everest Metro Police Department; and Wisconsin State Patrol. The prosecution of the cases has been handled by Assistant U.S. Attorney Diane Schlipper.
Meriden Pharmacy Settles Controlled Substances Act AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that GRAEBER’S PHARMACY, INC., of Meriden, and its owner, ROGER DeZINNO (collectively, “Graeber’s Pharmacy”), entered into a civil settlement agreement with the federal government to resolve allegations that it violated civil provisions of the Controlled Substances Act.
In 2018, the Drug Enforcement Administration conducted an audit of Graeber’s Pharmacy, located at 172 West Main Street in Meriden, and discovered a shortage of more than 2,000 tablets of various controlled substances. It is alleged that the pharmacy failed to keep complete and accurate records regarding the receipt and dispensing of controlled substances, and failed to maintain effective controls to guard against the diversion of controlled substances. It is further alleged that Graeber’s Pharmacy failed to timely report a theft or loss of controlled substances to the DEA within one business day of discovery, failed to maintain a complete and accurate biennial inventory, failed to properly complete DEA 222 Order Forms, dispensed seven prescriptions for controlled substances under a different physician name and/or DEA registration number than written on the prescription, and dispensed one prescription for a controlled substance without the prescribing physician’s DEA registration number.
As part of a civil settlement agreement with the government, Graeber’s Pharmacy has agreed to pay penalties of $16,800, plus interest. Graeber’s Pharmacy has also entered into a Memorandum of Agreement with the DEA that requires the pharmacy to hire an independent third-party pharmacy consultant.
Congress passed the Controlled Substances Act (“CSA”) to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer or sell controlled substances must comply with strict inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting and distribution of controlled substances.
This investigation was conducted by the Drug Enforcement Administration’s Office of Diversion Control and was prosecuted by Assistant U.S. Attorney Sarah Gruber.
McCall Woman Sentenced to More Than 11 Years for Methamphetamine DistributionRead the Press Release
BOISE – Denise Dana Hanson, 59, of McCall, Idaho, was sentenced in U.S. District Court to 140 months in federal prison for possession with intent to distribute methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye also ordered Hanson to serve five years of supervised release following her prison sentence. Hanson pleaded guilty to the charge on August 20, 2020.
According to court records, Hanson and her brother Daniel Joiner, also of McCall, were indicted by a federal grand jury on charges of conspiracy to possess with intent to distribute five hundred grams or more of methamphetamine and possession with intent to distribute five hundred grams or more of methamphetamine. Hanson was also indicted on two counts of distributing methamphetamine. Their charges stemmed from an investigation into their large-scale distribution of methamphetamine in McCall from January through August 2019. Law enforcement discovered that they would routinely travel to Boise to rent a vehicle, then drive to Las Vegas, Nevada to pick up several pounds of methamphetamine for distribution in McCall. Local law enforcement partnered with the Drug Enforcement Administration to utilize a confidential informant and ultimately an undercover federal agent to purchase methamphetamine from Hanson. Hanson and Joiner were arrested in Boise on August 3, 2019, after returning to Idaho from Las Vegas. Joiner was in possession of a 9mm pistol and Hanson was found to be in possession of 888 grams of pure methamphetamine.
After her arrest, Hanson called her son from the jail and in a recorded call, solicited him to hurt the confidential informant. In another recorded call, she stated that she would kill the undercover officer. At sentencing, Hanson was found to have obstructed justice and received an enhancement under the federal sentencing guidelines.
Hanson had twice previously been convicted of drug related felonies: attempted possession of controlled substance in state court in Las Vegas and two counts of illegal use of a communications facility in the U.S. District Court, District of Nevada.
Joiner pleaded guilty to conspiracy to distribute methamphetamine and on June 23, 2020, was sentenced to 120 months in federal prison and five years of supervised release.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Drug Enforcement Administration, Valley County Sheriff’s Office, Ada County Sheriff’s Office, Idaho State Police, and the McCall Police Department, which led to the charges.
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Marionville Man Indicted for Threatening Two CongressmenRead the Press Release
SPRINGFIELD, Mo. – A Marionville, Missouri, man has been indicted by a federal grand jury for threatening two members of the U.S. House of Representatives.
Kenneth R. Hubert, 63, was charged in a three-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Feb. 23, 2021. That indictment was unsealed and made public today upon Hubert’s arrest and initial court appearance. Hubert remains in federal custody pending a detention hearing on Monday, March 8.
The federal indictment alleges that on Jan. 7, 2021, Hubert threatened to assault and murder U.S. Representative Emanuel Cleaver II, with the intent to impede, intimidate, and interfere with Cleaver while he was engaged in the performance of his official duties, and retaliate against Cleaver on account of the performance of his official duties. Cleaver represents the Fifth Congressional District in Missouri.
The indictment also alleges that on May 6, 2019, Hubert threatened to assault and murder U.S. Representative Steve Cohen, with the intent to impede, intimidate, and interfere with Cohen while he was engaged in the performance of his official duties, and retaliate against Cohen on account of the performance of his official duties. The indictment alleges this threat occurred when Hubert called Cohen’s office in Washington, D.C. Cohen represents the Ninth Congressional District in Tennessee.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI, the U.S. Capitol Police, the Independence, Mo., Police Department and the Marionville-Aurora, Mo., Police Department.
Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Darius Augusto Guzman Ruiz, 29, of Manchester, pleaded guilty in federal court to possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the fall of 2019, Manchester police officers learned from a cooperating individual that Guzman Ruiz was selling between 100 and 300 grams of fentanyl at a time to other distributors in Manchester. Between October 10, 2019 and November 1, 2019, working with law enforcement, the cooperator conducted four controlled purchases of fentanyl from Guzman Ruiz. Each transaction involved approximately 180 grams of fentanyl.
On November 25, 2019, the Manchester Police Department executed search warrants at various residences that Guzman Ruiz used to either reside or store and package drugs. Officers seized over $100,000 in cash, over 400 grams of fentanyl and drug packaging and pressing equipment.
Guzman Ruiz is scheduled to be sentenced on June 4, 2021.
“Fentanyl is a lethal drug that endangers the well-being of everyone who abuses it,” said U.S. Attorney Murray. “It is essential that we stop its distribution by bringing dealers to justice. We prioritize drug prosecutions and work closely with all of our law enforcement partners to ensure that these criminals are prevented from continuing to endanger public health and safety.”
This matter was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana MacDonald.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man admits murder, firearm crimes in fatal shooting on Crow Indian ReservationRead the Press Release
BILLINGS — A man admitted murder and firearms charges today in the fatal shooting of a woman and injury of a passenger in her vehicle along Blue Creek Road on the Crow Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Taylor Leigh Plain Bull, 27, a transient, pleaded guilty to second degree murder and to use of a firearm during a crime of violence as charged in an amended superseding information. Plain Bull faces life in prison, a $250,000 fine and five years of supervised release on the murder charge, and a mandatory minimum 10 years in prison consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release on the firearm charge.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for July 23. Plain Bull was detained.
In court documents filed in the case, the government alleged that on Oct. 24, 2020, the victim, identified as Jane Doe, was driving from Pryor to Billings with a passenger, identified as John Doe, in the front passenger seat, and a child in the back seat. While Jane Doe was driving westbound on Blue Creek Road, she was passed by Plain Bull, who was driving a stolen truck eastbound toward Pryor. Plain Bull previously had been in a dating relationship with Jane Doe. The truck had been reported stolen in Billings and contained four firearms, including a .45-caliber semiautomatic pistol.
The government alleged that after passing Jane Doe, Plain Bull turned around and chased after her. He passed her car, drove to the top of a hill, and stopped sideways on the roadway, blocking the road. Plain Bull got out of the truck and pointed a gun at Jane Doe’s approaching car. Jane Doe stopped, told John Doe that it was Plain Bull and put her car in reverse. Plain Bull got back in the truck and ultimately forced Jane Doe’s car off the road into the ditch. Jane Doe was unable to drive out of the ditch because of snowy conditions.
The government further alleged that Jane Doe locked the car doors as Plain Bull approached the passenger side of the car with a .45-caliber semiautomatic pistol. Plain Bull knocked on the passenger window and asked John Doe who he was. John Doe told Plain Bull to remain calm. Plain Bull fired two shots. The first shot shattered the window and lodged in the dashboard. Plain Bull then reached in and put the gun to John Doe’s temple. John Doe sustained an injury to his temple. The second bullet struck Jane Doe, who was pronounced dead at the scene by emergency medical responders.
Plain Bull drove away from the scene with the child and dropped the child off at another location. He called 911 after the shootings at least twice screaming that it was an accident and requesting an ambulance. The government said that according to Plain Bull, he passed Jane Doe, she saw him and tried to pull over because he was going to give her money but ended up in the ditch because of the slippery roads. When Plain Bull approached the car, John Doe started giving him grief, he tried to pistol whip him, and the gun went off.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.
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Man Possessing a Firearm with an Obliterated Serial Number in Hospital Ground, St. Thomas Pleads GuiltyRead the Press Release
St. Thomas, USVI – Akeem Julien, 25, of St. Thomas, appeared before Magistrate Judge Ruth Miller in District Court and entered a guilty plea to the charge of Possessing a Firearm with an Obliterated Serial Number, United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced.
According to court documents, on April 8, 2020, while patrolling the Hospital Ground neighborhood in St. Thomas due to recent shootings, Virgin Islands Police Department (VIPD) officers pursued a group of individuals, including Julien, after the group ran when officers approached. Surveillance video captured Julien and the others climbing over a railing and onto a patio with two black bags. The surveillance video shows Julien in possession of one of the bags which he then hands to another individual. The surveillance video further shows the other individual leave the patio with two bags, heading in one direction, while Julien and others leave in the opposite direction. The bag Julien possessed contained an AK-47 firearm with an obliterated serial number. Julien’s DNA was recovered from the AK-47 firearm.
The offense carries a possible sentence of incarceration of up to five years, a maximum fine of up to $250,000 dollars, and a term of supervised release of up to three years. Sentencing will be scheduled at a later date.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by the United States Attorney’s Office of the Virgin Islands.
Louisville Dentist Charged with Unlawfully Dispensing Controlled SubstancesRead the Press Release
LOUISVILLE, Ky. – A Louisville Dentist who prescribed controlled substances after being suspended by the Kentucky Board of Dentistry (KBD) has been charged by federal criminal complaint, announced Acting United States Attorney Michael A. Bennett. Paul William Yaggie, DMD, 48, of Louisville, Kentucky has been charged with prescribing hydrocodone and oxycodone in violation of Title 21, United States Code, Section 841.
According to the criminal complaint, on September 18, 2020, the KBD issued a Notice of Immediate, Temporary Suspension (ITS), suspending Yaggie’s dental license and ordering him not practice dentistry. The ITS was personally served to Yaggie on September 21, 2020. Following the ITS, Yaggie continued to see patients and write controlled substance prescriptions. Yaggie prescribed over 625 hydrocodone pills and over 175 oxycodone pills while suspended. On January 6, 2021, Yaggie was evicted from his dental office where he abandoned his patient files. On February 15, 2021, Yaggie met a patient in the parking lot adjacent to his former dental office. Yaggie prescribed the patient hydrocodone and penicillin, charging the patient $200 for the prescriptions and promised dental work. Yaggie failed to complete the dental work, did not return the money, and the pharmacy refused to fill the prescriptions.
The charge carries a potential penalty of no more than 20 years in prison, a $250,000 fine and 3 years of supervised release.
The case is being prosecuted by Assistant United States Attorney Joseph Ansari. The case is being investigated by the Kentucky State Police (KSP), Kentucky Cabinet for Health and Family Services, Office of Inspector General (KY CHFS-OIG), Drug Enforcement Administration (DEA) Drug Diversion Section, Louisville Metro Police Department (LMPD) and the Shively Police Department (SPD).
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
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Louisiana Man Sentenced to 10 Years in Federal Prison for Role in 2016 Killing at Hattiesburg Mugshots RestaurantRead the Press Release
Hattiesburg, Miss. – Demethius Dixon, also known as Deezy, 29, of Shreveport, Louisiana, was sentenced today by U.S. District Judge Taylor B. McNeel to 120 months in federal prison, followed by 5 years of supervised release, for carrying and using a firearm during a drug trafficking crime, resulting in the firearm being discharged, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Dixon was also ordered to pay a $1500 fine.
On June 26, 2016, Dixon and his co-defendant, James Windham, met with a third party at a Hattiesburg Mugshots restaurant in order to sell two ounces of marijuana. Dixon was brought along by Windham as an armed enforcer and as backup in case the drug deal turned sour. During the drug transaction, Dixon discharged a firearm multiple times, ultimately resulting in the death of the third party.
Following the shooting, Dixon and Windham fled from the scene, at which time they discarded the marijuana and all firearms associated with the shooting. Due to the diligent police work of Hattiesburg Police Department, the marijuana and firearms were all recovered shortly after the shooting.
Dixon and Windham were originally indicted for this offense on June 25, 2019. Both defendants pled guilty on September 24, 2020.
Acting United States Attorney Darren LaMarca commented, “The United States Attorney’s Office will prosecute these violent criminals with the full arsenal of federal laws it has at its disposal. Guns and illegal drug distribution are a deadly combination. I want to thank the DEA, the Hattiesburg Police Department and the Office of District Attorney Hal Kittrell for their unwavering commitment and assistance in this investigation and prosecution.”
“Nothing is more important than keeping our communities safe. DEA and our local law enforcement partners will continue to utilize our combined resources to target individuals trafficking drugs and guns, threating the safety of our citizens in Mississippi and beyond, committing heinous violent acts. This sentence should send a strong, unified message that this violent criminal activity will not be tolerated in our communities, and that those accused of committing these offenses will be brought to justice," stated DEA Assistant Special Agent in Charge Kevin Gaddy.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Drug Enforcement Administration and the Hattiesburg Police Department investigated the case. District Attorney Hal Kittrell and the 15th Circuit District Attorney’s Office were instrumental in guiding early investigative steps in the matter and involving federal partners. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Local 98 Leader John Dougherty and Nephew Charged with Extortion and ConspiracyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that John Dougherty, 60, and Gregory Fiocca, 28, both of Philadelphia, PA, were charged by Indictment with 18 counts of extortion and one count of conspiracy to commit extortion. This Indictment represents new charges against Dougherty, separate and distinct from any other currently pending case.
The Indictment alleges that Dougherty, the Business Manager of International Brotherhood of Electrical Workers Local 98 (“Local 98”), and Fiocca, his nephew and a member of Local 98, conspired to extort salary, wages, and employee benefits from Fiocca’s employer, an electrical contracting company, for services Fiocca allegedly did not actually perform from August 2020 until January 2021. The object of the conspiracy was to have Fiocca’s employer continue to pay Fiocca without holding Fiocca accountable or monitoring his work performance. The defendants allegedly used actual and threatened force, violence and fear, including fear of economic harm, to obtain this result.
The Indictment further alleges that between October 2019 and August 2020, after Dougherty appointed Fiocca to be the Local 98 steward for employees working at this job site, Fiocca frequently did not show up for work, was not present at his workstation, and did not complete his assigned work. As a result, Fiocca allegedly was sometimes paid for fewer than 40 hours per week. It is also alleged that Dougherty was apprised of Fiocca’s attendance and performance issues but refused to acknowledge that Fiocca was at fault.
On August 19, 2020, after Fiocca had been paid for fewer than 40 hours for the previous week because he had worked for fewer than 40 hours that week, Fiocca allegedly grabbed his manager by the throat, threw him on a desk, and threatened him and the company’s owner with further violence. The Indictment further alleges that later that same day, after the assault, Dougherty made escalating threats of economic harm to the owner of the company including: no longer allowing electricians on the job to work overtime, thus forcing the company to operate three shifts of employees; pulling all the electricians off the job entirely; and even trying to prevent the company from securing future work.
As a result, as charged in the indictment, from August 19, 2020 to January 17, 2021, Fiocca remained employed by the company, did little or no work, and continued to receive paychecks and benefits paid by the company.
“No one is entitled to wages they do not earn, and more importantly, no one should fear economic reprisal or physical violence for attempting to do honest business in Philadelphia,” said Acting U.S. Attorney Williams. “As alleged in the Indictment, Fiocca took advantage of his uncle’s position as a powerful leader of an influential union, assaulted a co-worker, and enriched himself at the expense of his employer – and Dougherty had his nephew’s back through all of it. These kinds of actions do not represent ‘business as usual,’ and will not be tolerated in this District.”
“When union leaders put their own interests ahead of its honest and hard-working members, they are not only breaching their obligation to protect union workers and their families, they are breaking the law,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Such corruption must not go unchecked. No matter how long it takes, the FBI, particularly the determined agents and support staff of our Public Corruption Squads, will not rest until unscrupulous public officials and union leaders are brought to justice. The FBI is committing to protecting Philadelphia’s citizens and dedicated laborers.”
If convicted of all counts, the defendants face a maximum possible sentence of 380 years in prison, a $4,750,000 fine, a term of supervised release of two years, and a $1,900 special assessment.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Frank R. Costello, Jr., and Richard P. Barrett.
Kurt Bauer Sentenced to 78 Months of Imprisonment for Advanced-Fee Scheme Targeting ElderlyRead the Press Release
ST. GEORGE, UTAH – Kurt Bauer 57, of Kanab, Utah, was sentenced to 78 months in federal prison after pleading guilty to three counts of wire fraud and two counts of falsely impersonating U.S. government employees in connection with an advanced-fee scheme. Bauer was also ordered to pay $856,422 in restitution to the victims of his crimes.
According to the plea agreement, between 2011 and 2020, Bauer created a fraudulent scheme where he told his victims that he was entitled to hundreds of millions of dollars—even billions—which were frozen in federal court proceedings. Bauer promised his victims that he would pay them large amounts of money if they would pay Bauer money up front, which he would then use to pay court fees to obtain the money frozen in the federal court proceedings. Bauer promised all of his victims large returns on their upfront investment. Bauer received at least $200,000 from two victims who were 80 and 82 years old, respectively, over the course of the scheme.
In order to carry out the fraud, Bauer created the false identities of a New York attorney, a federal court employee, and a billionaire, which he used to communicate with and solicit money from the victims of the scheme. Bauer would use these identities to solicit funds from these victims on a regular—sometimes weekly—basis. Bauer would tell his victims that the money in the federal court proceedings would be released soon and that he needed the funds to pay a “bond” which was required by the court. Bauer also impersonated federal judges and a federal court administrator during the scheme in order to convince the victims that the court proceedings were real, and to persuade victims to continue making payments.
In reality, Bauer had no prospects of receiving money from federal court proceedings; had relatively little wealth; and used the victims’ moneys on credit card payments, hotel bills, restaurants, and other personal expenses.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the FBI conducted the investigation. The U.S. Attorney’s Office worked closely with the Kane County Sheriff’s Office and Kane County Attorney’s Office to prosecute the case.
KC Man Connected to Drive-by Shooting Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing several firearms, including the firearm used in a drive-by shooting.
Eric L. Harper, 28, was sentenced by U.S. District Judge Howard F. Sachs to five years and six months- in federal prison without parole. Today’s sentence reflects an upward variance from the recommended federal sentencing guidelines due to Harper’s connection to a shooting that occurred 41 days prior to his arrest.
On Aug. 7, 2020, Harper pleaded guilty to being a felon in possession of firearms. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harper has a 2014 state felony conviction for an attempted robbery in which he shot the victim in the back four times.
According to court documents, a black Dodge Charger – later identified as belonging to Harper – followed the victim, who had been given a ride from work on the evening of Feb. 22, 2019, to a residence in the 1700 block of East 80th Street in Kansas City. A witness told police officers they saw the black Charger with tinted windows parked nearby when they were leaving work. As they drove from work, the Charger followed them. When they arrived at the residence, the victim got out of the car and started to walk up to the house. The witness told investigators he heard and saw gunfire coming from the Charger. The witness fled the area in his car, with the Charger following him. Eventually, the witness told investigators, he lost sight of the Charger.
Police officers were called to the residence and noticed multiple bullet holes in the front door and along the exterior wall of the house. They also noticed bullet holes and fragments inside the house, including the foyer area and the kitchen. The victim was transported to a local hospital and officers recovered two .45-caliber shell casings from the scene. Investigators spoke with the victim at the hospital. Hospital staff advised detectives that the victim was in critical but stable condition and would need to undergo surgery to remove a bullet.
Investigators retrieved surveillance video from a nearby business that captured the license plate of the Charger and they were able to identify Harper as the owner of the vehicle.
On April 4, 2019, Harper and two other individuals were stopped by law enforcement while traveling in Harper’s Charger. Harper had been seen by law enforcement shooting two handguns and a semi-automatic rifle at a firing range in Lee’s Summit, Mo. Officers seized from Harper’s car an American Tactical Omni-Hybrid AR .223-caliber rifle, loaded with 21 rounds in an extended magazine; a Glock .45-caliber semi-automatic handgun, loaded with one round in the chamber and 26 rounds in an extended magazine; and a Glock .357-caliber semi-automatic handgun, loaded with one round in the chamber and 12 rounds in the magazine. Harper admitted that he had fired the weapons at the range, and that he had shot multiple firearms at the range on several occasions.
The Kansas City Police Crime Laboratory compared shell casing recovered from the scene of the shooting on Feb. 22, 2019, and determined that one of the shell casings had been fired from the Glock .45-caliber semi-automatic handgun recovered from Harper on April 4, 2019.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Resolves Antitrust Case Against Leading Central Pennsylvania Health Care ProvidersRead the Press Release
The Department of Justice announced today that it has reached a settlement with Geisinger Health (Geisinger) and Evangelical Community Hospital (Evangelical) that will resolve the department’s ongoing civil antitrust litigation challenging Geisinger’s partial acquisition of Evangelical. Among other terms, the settlement requires Geisinger to cap its ownership interest in Evangelical at a 7.5% passive interest and eliminates additional entanglements between the two competing hospitals.
On Aug. 5, 2020, the Department of Justice Antitrust Division filed a civil antitrust lawsuit challenging Geisinger’s partial acquisition of Evangelical. The department alleged that Geisinger and Evangelical are close competitors for inpatient general acute-care hospital services for patients in a six-county area in central Pennsylvania, where the two hospital systems together account for approximately 70% of the market.
“Now, more than ever, Americans need access to quality healthcare services at affordable prices,” said Richard A. Powers, Acting Assistant Attorney General of the Antitrust Division. “The anticompetitive agreement between Geisinger and Evangelical reduced their incentives to compete on the price, quality, and availability of high-quality healthcare services, which would have harmed patients in central Pennsylvania. Today’s settlement ensures that those patients will continue to benefit from robust competition between Geisinger and Evangelical.”
According to the complaint, the partial-acquisition agreement created significant entanglements between the hospitals, reducing their incentives to compete against each other and increasing the likelihood of harmful coordination. For example, Geisinger was slated to obtain a 30% ownership interest in Evangelical in exchange for providing $100 million to Evangelical for use on projects approved by Geisinger. These terms would have set Geisinger up as a critical source of funding for Evangelical for the foreseeable future and provided opportunities for Geisinger to influence strategic decisions of its competitor. The agreement also gave Geisinger rights of first offer and first refusal for certain transactions and joint ventures, which, in conjunction with other provisions in the agreement, would have made it difficult for Evangelical to partner with other healthcare entities. The department alleged that the provisions of the partial-acquisition agreement functioned together to substantially lessen competition and unreasonably restrain trade in the market for inpatient hospital services in central Pennsylvania.
If approved by the court, the proposed settlement, filed today in the U.S. District Court for the Middle District of Pennsylvania, would resolve the competitive harm alleged in the complaint. The terms of the settlement are intended to prevent Geisinger from exercising any form of control or influence over Evangelical and to restore the defendants’ incentives to compete with each other on both quality and price. In addition to capping Geisinger’s ownership interest in Evangelical, the proposed settlement restricts Geisinger from increasing its ownership interest in Evangelical, making any loan or providing any line of credit to Evangelical, or exerting any control over Evangelical’s expenditure of funds. Defendants are also each required to implement an antitrust compliance program.
While fully addressing the harm threatened by the partial-acquisition agreement, the settlement allows procompetitive aspects of defendants’ proposal to move forward. Specifically, the settlement permits Evangelical to obtain new electronic health records information technology systems and related IT support from Geisinger, enabling Evangelical to upgrade its electronic health records systems and improve the delivery of care to patients in central Pennsylvania. The settlement also requires Evangelical to use the funds associated with Geisinger’s passive investment for specific projects that will benefit patients and the community.
Geisinger is an integrated regional healthcare provider of hospital and physician services in Pennsylvania. It operates 12 hospitals as well as urgent-care centers and outpatient facilities, and owns physician practices throughout Pennsylvania. Its flagship hospital, Geisinger Medical Center, is a 574-bed hospital located in Danville, Pennsylvania. Geisinger Health’s annual revenue in 2019 was approximately $7.1 billion.
Evangelical Community Hospital is a 132-bed independent community hospital in Lewisburg, Pennsylvania. It also operates an urgent-care center and several other outpatient facilities, and owns a number of physician practices in central Pennsylvania. Its annual revenue in 2019 was approximately $259 million.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric Welsh, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of Pennsylvania may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Judge sentences Jefferson County man to 10 years for conspiracy to distribute methamphetamineRead the Press Release
ST. LOUIS – United States District Judge Stephen N. Limbaugh, Jr. sentenced Keith Estep to 120 months in prison today. The 42-year-old House Springs, Missouri resident pleaded guilty to one count of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and one count of possession with the intent to distribute more than 50 grams of actual methamphetamine.
Investigators discovered, in 2018 and 2019, methamphetamine distributors operating in and around Jefferson County, Missouri, including Estep and several of his co-defendants, were traveling to St. Louis to obtain large quantities of crystal methamphetamine for redistribution in Jefferson County and elsewhere.
On October 20, 2019, investigators executed a federal search warrant at Estep’s residence in House Springs, Missouri. Investigators recovered more than a half-kilogram of crystal methamphetamine, drug paraphernalia and a loaded Ruger LCP .380 pistol.
The Drug Enforcement Administration and the Multi County Narcotics and Violent Crimes Enforcement Unit investigated this case.
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Judge Sentences Three-time Convicted Drug Felon to 12+ Years in PrisonRead the Press Release
PITTSBURGH – Michael S. Frawley was sentenced to 150 months in prison for conspiring to distribute at least 500 grams of cocaine and K2 controlled substances (Schedule I synthetic cannabinoids) while on federal supervised release in 2018, Acting United States Attorney Stephen R. Kaufman announced today.
Frawley, age 50, of Pittsburgh, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan sentenced Frawley to 120 months in prison for the conspiracy conviction and to 30 months in prison for the supervised release violation. Judge Ranjan ordered that the prison sentences be served consecutively to each other followed by eight years of supervised release.
Frawley was previously released from a prior federal prison sentence to supervised release in 2018. He secured his release in 2018, 12 months earlier than he was originally set to be released, after stating that he would be "a productive and law-abiding citizen upon his release from incarceration." He then conspired to distribute kilograms of cocaine and Schedule I synthetic cannabinoid controlled substances in 2018 before and after he was released from prison.
This is Frawley’s third federal cocaine-trafficking sentence. He was previously sentenced to federal prison for conspiring to distribute kilograms of cocaine and to launder the proceeds in 2005. He was also previously sentenced to federal prison for conspiring to distribute kilograms of cocaine in 1997.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Indianapolis brothers indicted on federal firearms chargesRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that two Indianapolis men were indicted for the theft of firearms from a federally licensed firearms dealer. Twin brothers, Tayveon Majors, 18, Indianapolis and Jayveon Majors, 18, were indicted today by a federal grand jury for the theft of 10 firearms from 500 Guns, a gun store located in Speedway.
“With cooperation from the public, and the excellent work by the investigators at the Crime Gun Intelligence Center, several stolen firearms and the thieves who stole them were quickly taken off the streets of Indianapolis,” said Childress. “This case is a great example of citizens working together with law enforcement to make the community a safer place to live.”
According to a criminal complaint filed against the two men, early on the morning of January 21, 2021, Jayveon Majors drove his brother, Tayveon, to an Indianapolis car dealership, where Tayveon stole a vehicle. The brothers then drove separately to the 500 Guns store in Speedway, where Tayveon used the stolen vehicle to drive through the front of the building to gain access. Video surveillance cameras in the store captured images of Tayveon carrying firearms out of the store. Javyeon then drove his brother and the guns to their Indianapolis residence.
Following a tip from the public, CGIC detectives and federal agents began to investigate. The brothers were identified as suspects and a search warrant was obtained for their residence. Federal agents and CGIC investigators located and arrested the two men at their residence within just a few days of the theft, recovering some of the stolen firearms.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chief Randal Taylor said, “This is another example of cooperation from members of our community to help solve crime. I appreciate the work of IMPD detectives, our federal partners and Acting US Attorney John E. Childress for their work in arresting these suspects and charging them in federal court.”
According to Assistant U.S. Attorney William L. McCoskey, who is prosecuting this case for the government, the defendants each face up to 10 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In October 2017, the Office of the United States Attorney announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit serious firearms offenses. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.2.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Ivis Enemecio Ortiz-Reyes, 38, a citizen of Honduras, pled guilty yesterday before U.S. District Judge Taylor McNeel to unlawful return of an alien after removal, announced Acting U.S. Attorney Darren LaMarca, and Michael J. Harrison, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Ortiz-Reyes is scheduled to be sentenced by Judge McNeel on June 9, 2021, at 10:00 a.m. in Gulfport. He faces a potential maximum penalty of two years in prison and a $250,000 fine, as well as Department of Homeland Security removal proceedings.
On January 14, 2021, a U.S. Border Patrol Agent assigned to the Harrison County Sheriff’s Department Criminal Interdiction Unit conducted a traffic stop on a vehicle bearing a temporary Texas license plate near Exit 38 in Gulfport. The driver had no driver’s license or other identification, and the agent noticed that there were two passengers with the odor of marijuana emitting from the vehicle.
During a probable cause search of the vehicle, the driver fled on foot, and Harrison County Sheriff’s Deputies, who were assisting, attempted to locate the driver but were unsuccessful. Meanwhile, the Border Patrol Agent located narcotics hidden in a bag in the back seat and both passengers were detained. One of the passengers was arrested in connection with the narcotics which is the subject of a separate, state case.
The other passenger was Ivis Enemecio Ortiz-Reyes, who was determined to be merely a passenger. However, Ortiz-Reyes was confirmed as an illegal alien from Honduras who had been officially removed from the United States to his home nation of Honduras on February 3, 2017, via an Immigration & Customs Enforcement Air Charter from Harlingen, Texas. Officials also determined that Ortiz-Reyes had not received official permission to return to the United States.
Acting U.S. Attorney LaMarca praised the cooperation of the Harrison County Sheriff’s Department, the U.S. Border Patrol, and the U.S. Department of Homeland Security. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Houston man admits to attempting to distribute meth from RGVRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Houston resident has entered a guilty plea in Corpus Christi federal court to transporting nearly 40 kilograms of pure meth with the intent to distribute, announced Acting U.S. Attorney Jennifer B. Lowery.
On Dec. 24, 2020, Christopher Schulgen approached the Javier Vega Jr. checkpoint near Sarita driving a Toyota Camry. Upon arrival, a K-9 alerted to his vehicle. Authorities referred him to secondary inspection where they discovered 44 bundles of a white powdery substance. They were located under the back seat, in factory voids of the door panels and the rear quarter panels of the vehicle.
Law enforcement determined the content of the bundles to be 39.58 kilograms of pure meth with an estimated street value of $800,000.
U.S. District Judge David S. Morales will impose sentencing June 2. At that time, Schulgen faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.
He has been and will remain in custody pending sentencing.
Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.
Guilty Plea Entered in Wide-Ranging Bank Fraud ConspiracyRead the Press Release
PROVIDENCE – A Lawrence, MA, man, one of nine individuals indicted by a federal grand jury in Providence, RI, in July 2020, for their alleged participation in a wide-ranging conspiracy to defraud financial institutions in several states, pleaded guilty on Tuesday in U.S. District Court in Providence.
Hiancarlos Mosquea-Ramos, 28, admitted that he participated in schemes as the seller or the buyer of used vehicles, defrauding Merrimack Valley Credit Union, Sharon Credit Union, Digital Federal Credit Union, Metro Credit Union, Direct Federal Credit Union, RTN Credit Union, and Workers Credit Union.
Mosquea-Ramos admitted that by using his own personal identification information along with counterfeit earnings statements, fabricated automobile purchase and sales agreements, and counterfeit motor vehicle titles, he obtained at least $92,000 in fraudulent loans to purchase fictitious cars. A co-conspirator, Jonathan A. Pimental, 29, of Lawrence, MA, was allegedly listed as the seller of the cars. Pimental is awaiting trial on a charge of conspiracy to commit bank fraud.
Additionally, Mosquea-Ramos admitted that he posed as the seller of various used cars. It is alleged co-conspirator Rolando E. Estrella, 33, of Lawrence, MA, prepared false purchase and sales agreements and counterfeit automobile titles naming Mosquea-Ramos as the seller of the vehicles. Financial institutions approved a total of more than $275,200 in used car loans, disbursing checks made payable to Mosquea Ramos. The checks were quickly deposited and the funds quickly withdrawn and divided among participants of the conspiracy.
Rolando E. Estrella is awaiting trial on multiple charges of conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and fraudulent use of a social security number.
On Tuesday, Hiancarlos Mosquea-Ramos appeared before U.S. District Court Chief Judge John J. McConnell, Jr., and pleaded guilty to conspiracy to commit bank fraud, announced Acting United States Attorney Richard B. Myrus, Special Agent in Charge of the U.S. Secret Service Frederick J. Regan, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Mosquea-Ramos is scheduled to be sentenced on June 1, 2020.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Wisconsin Rapids Man Charged with Tax Crimes
James Canfield, 71, Wisconsin Rapids, Wisconsin, is charged with 14 counts of preparing and filing false federal income tax returns for third parties.
The indictment alleges that Canfield, who operated Advanced Accounting Concepts, Inc., a tax return preparation business in Plover, Wisconsin, prepared and filed tax returns that sought refunds and reductions in taxes due to which the taxpayers were not entitled. The indictment alleges that Canfield claimed false deductions and included with the returns a Schedule E, Supplemental Income and Loss from Business, reporting false income and losses.
If convicted, Canfield faces a maximum penalty of 3 years in federal prison on each count. The charges against him are the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Oxford Man Charged with Illegally Possessing Firearm
Stephen J. Robeson, 57, Oxford, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on September 26, 2020, he possessed a .50 caliber rifle.
If convicted, Robeson faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation, Marquette County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
La Crosse Man Charged with Distributing Methamphetamine
Tang Vue, 35, La Crosse, Wisconsin, is charged with two counts of distributing methamphetamine. The indictment alleges that he distributed methamphetamine on January 29 and February 3, 2021, and that the January 29 distribution involved 50 grams or more of the drug.
If convicted, Vue faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the count alleging the distribution of 50 grams or more, and 20 years on the second distribution count. The charges against him are the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney David J. Reinhard is handling the prosecution.
La Crosse Man Charged with Drug Crime Involving Methamphetamine
Cody B. Stough, 33, La Crosse, Wisconsin, is charged with distributing 50 grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on November 19, 2020.
If convicted, Stough faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Richland-Iowa-Grant Drug Task Force. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Four Houston Men Indicted in San Antonio for ATM Robbery SchemeRead the Press Release
In San Antonio today, a federal grand jury returned an indictment against four Houston men for allegedly stealing approximately $80,000 from a bank ATM technician in San Antonio last month, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs.
The indictment charges 21-year-old Terrance Raynard McDuffy, 24-year-old DeWitt Eugene Ross Jr., 22-year-old Tavan Marque Foots and 25-year-old Jonathan DeWayne Fore with one count of bank robbery. According to court records, on February 11, 2021, McDuffy and Ross approached a serviceman working on an ATM at a Chase Bank branch in San Antonio and stole multiple ATM cassettes which contained a total of $80,340, while Foots and Fore acted as lookouts for the operation.
FBI agents arrested all four defendants following the robbery. McDuffy and Ross remain in federal custody. Foots and Fore are out on bond. No further court dates have been scheduled.
The defendants face up to 20 years in federal prison upon conviction.
The FBI’s Safe Streets Task Force and San Antonio Central Texas Violent Crime Task Force are investigating this case together with the FBI in Houston, Houston Police Department, Texas Department of Public Safety Criminal Investigations Division and San Antonio Police Department. Assistant U.S. Attorney William F. Calve is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Former Stockton Man Pleads Guilty to Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Robert Joseph Maher, 42, formerly of Stockton, pleaded guilty today to single counts of mail fraud and aggravated identify theft in connection with an unemployment insurance benefits fraud and identity theft scheme, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from at least November 2010 through February 2018, Maher participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Maher and his co-defendant, Michael Herron II, also of Stockton, created fictitious companies and fictitious employees by using the real identities of persons with and without their knowledge. They then filed claims with EDD, falsely stating that the employees had been laid-off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Maher, Herron, or their associates.
In one instance, Maher and Herron electronically filed an unemployment insurance claim in the name of an identity-theft victim. Maher knew that the victim was a real person because the claim listed the victim’s correct date of birth and social security number. The claim also listed Maher’s address in Stockton as the claimant’s address, which caused a bank to mail an EDD debit card in the victim’s name to Maher’s address. Maher and Herron then transferred the card’s benefits to Maher’s personal bank account. Maher and Herron also used the victim’s name to register another fictitious business entity that was used in the fraud scheme. In all, Maher and Herron filed at least 72 fraudulent claims for unemployment insurance benefits, seeking a total of $739,535 in fraudulent claims to EDD, of which EDD paid out approximately $609,335. As part of his plea agreement, Maher has agreed to pay full restitution to victims of his offenses.
This case is the product of an investigation by the U.S. Department of Labor - Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On March 26, 2019, Herron pleaded guilty to similar counts of mail fraud and aggravated identity theft and, on June 25, 2019, was sentenced to six years and three months in prison.
Maher is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 8. Maher faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud count, and a mandatory two-year consecutive sentence and $250,000 fine for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Firefighter Sentenced for Attempted Coercion and Enticement of a MinorRead the Press Release
RICHMOND, Va. – A Pittsburgh man was sentenced today to 126 months in prison for conducting sexually explicit online communications and traveling to Virginia in an attempt to engage in a sexual relationship with a fictitious 10-year-old girl.
According to court documents, in November 2019, Brian Kosanovich, 58, then a firefighter in Pittsburgh, responded to a profile posted by an FBI undercover officer on a website that hosts a network of members interested in alternative forms of sexual relationships, including a variety of fetishes. The undercover officer’s profile indicated that she was a single mother with a 10-year-old daughter.
After establishing contact on the website, Kosanovich and the undercover officer began communicating via an instant messaging application. Kosanovich and the undercover officer engaged in extensive conversations of a sexually explicit nature for several months, much of which focused on Kosanovich engaging in a sexual relationship with who he believed to be a 10-year-old girl, as well as the mother. Over the period of the investigation, Kosanovich sent the undercover officer nude pictures and a prepaid credit card, so that the mother could buy certain items to use with the daughter.
Ultimately, in February 2020, Kosanovich drove from Pittsburgh to Richmond for the stated purpose of engaging in a sexual relationship with the mother and daughter, and he was arrested by FBI officials upon his arrival in Midlothian.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Brian R. Hood 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. 3:20-cr-103.
Former FCI Butner Correctional Officer Indicted on Bribery and Smuggling Contraband ChargesRead the Press Release
WILMINGTON, N.C. – A federal grand jury returned an indictment last week, charging a Cameron man with Bribery, Conspiracy to Introduce Contraband into a Prison, and Introducing Contraband.
“Contraband in prisons is one of the greatest threats to both inmates and correctional officers,” stated Acting United States Attorney G. Norman Acker, III. “This indictment seeks to hold a correctional officer who allegedly violated the trust of his peers by conspiring with inmates to introduce contraband to the prison. My office will always prosecute those who endanger lives and disrupt the good order and discipline within our correctional institutions.”
“When correctional officers smuggle contraband into prisons, they jeopardize the safety of the very institutions they are charged with protecting. The OIG is committed to investigating this type of behavior,” said Russell Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
According to the indictment, Casey Covington, 45, a correctional officer at the Federal Correctional Institution in Butner, conspired with three inmates to smuggle cell phones into the prison. Covington is also accused of accepting bribes in exchange for smuggling in the cell phones and other contraband, including marijuana, tobacco, and alcohol.
According to the indictment, inmates Christopher Lee Davis, 36, Antonio Demond Byers, 40, and Robert Henry Huitt, 32, were also each charged with conspiring with Covington and possessing cell phones in prison.
If convicted, Covington faces 15 years in prison, and Davis, Byers, and Huitt each face up to 1 year in prison.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Department of Justice, Office of the Inspector General, is investigating the case and Assistant U.S. Attorney Robert J. Dodson is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former Controller of local Ford dealership sentenced to 30 monthsRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Robert L. Fowler, of Evansville, Indiana, was sentenced to 30 months in federal prison by U.S. District Judge Richard L. Young for Bank Fraud and Money Laundering.
“Fraud by company insiders robs their victims of money and worse, it robs them of their trust in others,” said Childress. “Greed and deception were the roots of Robert Fowlers life. He will now face the consequences of his choices.”
Fowler served as the Controller at Town and Country Ford for approximately eight years until he was terminated in early September 2016. Prior to becoming Controller, Fowler also served as an assistant office worker for twelve years. As Controller of Town and Country Ford, Fowler was responsible for the payroll, taxes, and accounting for the dealership and essentially served as the business manager.
Town and Country Ford’s parent company, Hays Automotive Group, owns car dealerships in Evansville, Louisville, and Nashville, Tennessee. In September 2016, the Chief Financial Officer and Treasurer of Hays Automotive Group discovered discrepancies in the books and records for Town and Country Ford.
Further investigation revealed several embezzlement schemes conducted by Fowler, including opening unauthorized bank accounts from which he wrote dozens of checks to himself and personal associates; using company funds to pay his child support and other personal expenses at his home; using company credit cards to pay for personal expenses and paying for those transactions with company funds; paying his personal credit card with company funds; and forging signatures of corporate officers when applying for an unauthorized loan of $250,000.
This investigation was a collaborative effort between the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
“His employer put their trust in Mr. Fowler, and he repaid that trust by putting his personal greed ahead of his commitment to the company,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our partners will continue to aggressively pursue those who commit financial fraud to enrich themselves at the expense of others and ensure they are held accountable.”
"IRS Criminal Investigation is committed to investigating individuals who line their pockets with other people’s money,” said Tamera Cantu, Acting Special Agent in Charge, Chicago Field Office, IRS Criminal Investigation. “Mr. Fowler’s sentencing serves as a reminder that individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Fowler must also pay $432,873 in restitution to Hays Automotive Group and will serve 2 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1 and 5.4.
Florida man admits to conspiring to transport stolen campers across state linesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Taylon Batista Garcia, of Florida, has admitted to his involvement in the theft of campers from a business in Elkins, West Virginia, Acting United States Attorney Randolph J. Bernard announced.
Garcia, 35, pleaded guilty today to one count of “Conspiracy to Commit Offense against the United States.” Garcia admitted to driving a heavy-duty pickup truck into Elkins, West Virginia, and stealing a 2020 Jayco North Point Camper valued at $96,365, from Roy’s RV Supercenter in July 2020.
Garcia is facing up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Federal Grand Jury Indicts Two Men in Connection with Violent Robberies of Chicago-Area Retail BusinessesRead the Press Release
CHICAGO — A federal grand jury has indicted two men for allegedly conspiring to violently rob several pawn shops, currency exchanges, and other retail stores in Chicago and the suburbs.
The robbers wore masks and brandished dangerous weapons in 12 heists from July 2020 to January 2021, according to an indictment returned in U.S. District Court in Chicago. The robbers stole jewelry valued at more than $305,000, as well as more than $22,000 in cash, the indictment states.
Charged with conspiracy to commit robbery are FALANDIS RUSSELL, 25, of Chicago, and TERRANCE WILLIAMS, 24, of Chicago. Russell is currently in law enforcement custody. He pleaded not guilty at his arraignment Tuesday, and he is set to appear for a detention hearing this afternoon before U.S. Magistrate Judge Jeffrey T. Gilbert. Williams has been ordered released on bond. His arraignment is set for this afternoon before U.S. District Judge Edmond E. Chang.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by Police Departments in Chicago, Calumet City, Summit, Burbank, Bolingbrook, Round Lake Beach, Hammond (Ind.), Streamwood, and Arlington Heights. The government is represented by Assistant U.S. Attorney Matthew J. McCrobie.
“The charges in this significant case are the result of the strong partnership between federal, state, and local law enforcement in the Chicago area,” said U.S. Attorney Lausch. “We will continue working together to hold violent offenders accountable.”
“The defendants are accused of a multistate, violent crime spree with 12 armed robberies in almost as many communities,” said FBI SAC Buie. “The public should feel safer when doing business at local establishments, and we hope they feel secure knowing that justice is being done.”
The indictment identifies the 12 robberies allegedly carried out as part of the conspiracy:
- July 31, 2020: Russell and others robbed Cash America, located in the 1800 block of River Oaks Drive in Calumet City.
- Aug. 10, 2020: Russell and others robbed EZ Pawn, located in the 6100 block of South Archer Street in Summit.
- Aug. 10, 2020: Russell and others robbed Cash America, located in the 4500 block of South Cicero Avenue in Chicago.
- Aug. 28, 2020: Russell and Williams robbed Midwest Title & Loan, located in the 8300 block of South Cicero Avenue in Burbank.
- Aug. 28, 2020: Russell and Williams robbed Cash America, located in the 6300 block of South Kedzie Avenue in Chicago.
- Sept. 25, 2020: Russell, Williams, and others robbed Helzberg Diamonds, located in the 600 block of East Boughton Road in Bolingbrook.
- Oct. 13, 2020: Russell, Williams, and others robbed EZ Pawn, located in the 300 block of West Rollins Road in Round Lake Beach.
- Oct. 21, 2020: Russell and Williams robbed EZ Pawn, located in the 4800 block of South Ashland Avenue in Chicago.
- Nov. 6, 2020: Russell, Williams, and others robbed Cash America, located in the 3200 block of West Lawrence Avenue in Chicago.
- Dec. 16, 2020: Russell, Williams, and others robbed Cash America, located in the 6800 block of Indianapolis Boulevard in Hammond, Ind.
- Jan. 19, 2021: Russell and others robbed EZ Pawn, located in the 900 block of East Irving Park Road in Streamwood.
- Jan. 22, 2021: Russell and Williams robbed EZ Pawn, located in the 1700 block of West Algonquin Road in Arlington Heights.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the indictment is punishable by a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Indicts Man for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on Thursday, February 25, 2021, DERRICK ESTES, age 41, resident of Orleans Parish, was charged in a four-count indictment for alleged drug and gun violations. These violations occurred on January 17, 2021 and February 1, 2021. In Count 1 of the indictment, ESTES is charged with possession with intent to distribute fentanyl and over 28 grams of crack-cocaine. Count 2 charges ESTES with possessing a firearm in furtherance of a drug trafficking offense and in Count 3 with being a felon in possession of a firearm. Finally, ESTES is charged in Count 4 with possession with the intent to distribute crack-cocaine and over 40 grams of fentanyl.
In Count 1 and 4 of the indictment, ESTES is charged with possession with the intent to distribute a certain quantity of crack-cocaine and fentanyl, in violation of in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). If convicted, ESTES faces a maximum sentence of 20 years, a fine up to $1,000,000.00, a period of at least 3 years supervised release, and a mandatory special assessment of $100.00 for each count. ESTES is also charged in Count 1 with possession with the intent to distribute 28 or more grams of crack-cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(iii) and in Count 4 with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(vi). If convicted, ESTES faces a minimum sentence of 5 years up to a maximum of 40 years imprisonment, a fine up to $5,000,000.00, a period of at least 4 years supervised release, and a mandatory special assessment of $100.00 for each charge. In Count 2, ESTES is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). If convicted, ESTES faces a mandatory minimum sentence of 5 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine up to $250,000.00, a period of 5 years supervised release, and a mandatory special assessment of $100.00. Finally, in Count 3, ESTES is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1). If convicted, ESTES faces a maximum sentence of 10 years of imprisonment, a fine up to $250,000, a period of 3 years supervised release, and a mandatory special assessment of $100.00.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Detainee Who Threw a Chair at an Assistant United States Attorney and Threatened to Kill Him Arraigned on Federal ChargesRead the Press Release
Miami, Florida – A South Florida federal grand jury has indicted Tavorris Wilkins, 33, Palm Beach Gardens, Florida, with assaulting an Assistant United States Attorney and threatening to assault and kill an Assistant United States Attorney.
According to court documents, on November 7, 2019, a jury returned a verdict in a separate case finding Wilkins guilty of multiple federal charges. As the members of the jury were exiting the courtroom, Wilkins picked up a chair at his table and threw it at the Assistant United States Attorney prosecuting his case, barely missing him, alleges the indictment. Multiple Deputy United States Marshals tackled Wilkins and attempted to restrain him. It is alleged that while this occurred, Wilkins threatened to kill and assault the Assistant United States Attorney.
The indictment is only an allegation. Wilkins is innocent until such time that he is proven guilty. If convicted, Wilkins faces a maximum sentence of (20) years’ imprisonment.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, United States Marshal Gadyaces S. Serralta of the USM’s Miami Field Office, and Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USMS and ATF in this matter. This case is being prosecuted by Assistant U.S. Attorney Ajay J. Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 19-cr-80032.
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Fayetteville Man Convicted of Firearm and Drug Trafficking Charges by Federal JuryRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Fayetteville man yesterday on charges of possession of a firearm by a convicted felon, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
According to court records and evidence presented at trial, Miguel Marquis Hutchinson 35, was encountered inside a car at McDonalds on Bragg Blvd. by Fayetteville police officers investigating a nearby armed robbery. Hutchinson matched the description of the armed robbery suspect and provided a false name to the officers. When asked to step out of the car, he made a suspicious movement that caused the officers to jump forward and pin him down. Meanwhile, other officers had observed store security footage which confirmed Hutchinson was not the person being sought for the armed robbery.
During the encounter at the car, officers smelled the odor of marijuana and conducted a search of the car which resulted in locating approximately 22 grams of marijuana inside the center console, baggies, and a digital scale. A loaded 9mm Taurus pistol was also located positioned and ready for use between the driver’s seat on the right side pinned against the center console.
Hutchinson was previously convicted of second-degree murder in North Carolina state court in 2006 in Cumberland County, North Carolina.
Hutchinson faces a mandatory minimum sentence of 5 years’ imprisonment and a maximum sentence of Life in prison when sentenced on June 7, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. Homeland Security Investigations and the Fayetteville Police Department are investigating the case and Assistant U.S. Attorney Gabriel J. Diaz is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:19-cr-00523-BO-1.
Edmond Man Convicted of Smuggling Firearms to the Middle East is Sentenced to Serve More Than Three Years in Federal PrisonRead the Press Release
OKLAHOMA CITY – Today, RANDY LEW WILLIAMS, 58, of Edmond, was sentenced to serve more than three years in federal prison for illegally shipping firearms to the Middle East, in addition to two other firearms violations, announced Acting U.S. Attorney Robert J. Troester.
On June 1, 2020, Williams was charged with violating the Arms Export Control Act, making a false statement to a firearms dealer, and possession of an unregistered firearm. According to court records, the Federal Bureau of Investigation (FBI) Legal Attaché in Abu Dhabi, United Arab Emirates (UAE) notified the FBI Oklahoma City Field Division that a FedEx shipment had been seized by UAE authorities in Dubai, UAE, on December 19, 2018. The shipment contained multiple Glock pistols and firearms parts. Shipment records indicated the shipment was sent from Williams, from an address in Oklahoma City to the intended recipient located in Sulaymaniyah, Iraq. Williams did not have a Federal Firearms License from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, or authority from the Department of Defense to export defense articles (i.e. weapons) outside the United States.
On June 26, 2020, Williams pleaded guilty to all three counts charged.
Today, U.S. District Judge Jodi W. Dishman sentenced Williams to serve 40 months in federal prison, followed by two years of supervised release on each count when his prison terms ends. In announcing the sentence, Judge Dishman noted the nature and circumstances of the offense and the need for the sentence to reflect the seriousness of the offense. Williams has been in custody since his arrest on March 2, 2020.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the U.S. Department of Homeland Security Investigations, with assistance from the U.S. Customs and Border Patrol, the U.S. Department of State, the U.S. Postal Inspection Service, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Mark Stoneman prosecuted the case.
Reference is made to court filings for further information.
Dutch National Affiliated with “Bugaloo Bois” Arrested for Illegal Possession of a FirearmRead the Press Release
ABINGDON, Va.- Jaap Willem Lijbers, a Dutch national and member of the Bugaloo Bois, was arrested yesterday on a federal criminal complaint charging him with illegal possession of a firearm while being unlawfully present in the United States. Acting United States Attorney Daniel P. Bubar and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Division announced the arrest today.
Lijbers, 26, was living in the United States on an I-94 Visa that expired on May 20, 2014. A review of immigration records showed that Lijbers never applied for adjustment or readmission.
According to court documents, Lijbers, who was residing in Raven, Virginia, frequently coordinated and communicated online with members of the Bugaloo Bois, a loosely connected group of individuals espousing violent anti-government sentiments. During some of these interactions, court documents allege that Lijbers encouraged other members of the Bugaloo Bois group to attend political rallies and commit acts of violence, to include taking over government buildings. Lijbers also encouraged others to participate in violent conduct against law enforcement officers in a “pig roast.”
The investigation of the case was conducted by the Federal Bureau of Investigation and the Department of Homeland Security (DHS) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Drug User Whose Mother Tried to Claim a Gun was Hers Sentenced to Federal Prison for Unlawfully Possessing the GunRead the Press Release
A man who illegally possessed a gun was sentenced March 1, 2021, to more than three years in federal prison.
Thomas James Masengarb Vesey, age 21, from Hiawatha, Iowa, received the prison term after a September 17, 2020 guilty plea to being a drug user in possession of a firearm.
Evidence at earlier hearings showed that police officers stopped Vesey while he was driving in Marion, Iowa. After he pulled the car over, Vesey switched seats with a passenger before officers approached the car on foot. Officers smelled marijuana and searched the car, finding marijuana and a gun with an obliterated serial number. Vesey’s mother came to the scene of the traffic stop and attempted to take ownership of the gun until officers told her that they were aware that Vesey called her and that the call was recorded. Vesey later admitted that he bought the gun after some of his friends had been murdered. He also told law enforcement that he both used and sold marijuana.
Vesey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Vesey was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Vesey was released on the bond previously set and is to surrender to the United States Marshal’s Service on March 15, 2021.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Marion Police Department, the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-00054.
Follow us on Twitter @USAO_NDIA.
Drug Dealer Who Brought Young Children to Drug Deal Receives 78 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A New Hanover County man was sentenced yesterday to 78 months imprisonment for distribution of a quantity of heroin and fentanyl; possession with intent to distribute a quantity of heroin; and, possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and other evidence, on January 22, 2020, the Wilmington Police Department conducted a controlled purchase of heroin from Quadarrius “Reckless” Cotten, 23, in the bathroom of a Burger King restaurant in Wilmington. At time the of the sale, Cotten was accompanied by two young children. A photograph introduced at the sentencing hearing showed one of the children wearing a Burger King crown standing next to Cotten as he delivered the drugs.
On January 28, 2020, the Wilmington Police Department conducted a second controlled purchase of fentanyl and a firearm from Cotten. Law enforcement later determined that the firearm which Cotten possessed during the offense was stolen.
On May 16, 2020, the Wilmington Police Department was conducting surveillance in the area of 6th and Campbell Streets due to concerns over retaliatory gang violence. Cotten, a validated gang member, was observed engaging in an argument with an individual who was armed with an AK-47 rifle. Officers intervened and during a search of Cotten found a small amount of heroin and nearly $400 in cash in his possession.
Cotten had prior convictions for Conspiracy to Commit Common Law Robbery and Possession of a Firearm by a Convicted Felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation Safe Street Task Force and the Wilmington Police Department investigated the case and Assistant U.S. Attorney Timothy Severo 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. 7:20-cr-00103-M.
Defendants charged with stealing millions of dollars from the Paycheck Protection Program (PPP)Read the Press Release
ATLANTA – Lakisha Swope and Treisha Pearson have been arraigned on charges of conspiracy, wire fraud, bank fraud, and money laundering after allegedly participating in a scheme to steal over $3.5 million from the Paycheck Protection Program (PPP).
“Swope and Pearson allegedly stole millions of dollars destined to help small business owners,” said Acting U.S. Attorney Kurt R. Erskine. “PPP dollars often provide a bridge for businesses suffering from the effects of the pandemic. However, PPP funds are not unlimited, and those who seek to enrich themselves fraudulently through this program will be prosecuted.”
“These two defendants are accused of misdirecting federal emergency assistance from businesses who need it to stay afloat, to their own pockets, during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their alleged greed affects every tax paying citizen and the FBI will make every effort to make sure funds provided by programs like PPP are used as intended.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Lakisha Swope and Treisha Pearson, together with others, allegedly submitted false PPP applications for a number of entities claiming over $5 million in loans. These PPP applications allegedly contained materially false information such as false representations regarding the applicant entities’ total number of employees and average monthly payroll.
As a result of these false statements, lenders issued over $3.5 million in PPP loans to these various entities. Swope and Pearson, along with other members of the conspiracy, then allegedly used the fraudulently obtained funds for unauthorized expenditures including luxury clothing, restaurants, personal rent, hotels, and vacation rentals.
Lakisha Swope, 43, of Alpharetta, Georgia and Treisha Pearson, 49, of Brookhaven, Georgia, face charges of conspiracy, wire fraud, bank fraud, and money laundering. Both defendants were indicted on February 24, 2021.
Members of the public are reminded that the indictment only contains charges. The defendants are 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.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the 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.
DEA Task Force and Waterbury Police Investigation Results in Drug Charges against 17 IndividualsRead the Press Release
Acting United States Attorney Leonard C Boyle, Waterbury State’s Attorney Maureen Platt, Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration for New England and Waterbury Police Chief Fernando C. Spagnolo today announced that 17 individuals have been charged with federal offenses related to the distribution of heroin, cocaine and crack cocaine in and around Waterbury.
According to statements made in court, for approximately 10 months, the DEA New Haven Task Force and Waterbury Police Department have been investigating a drug trafficking organization that has been distributing large amounts of heroin, cocaine and crack in the Waterbury area. The investigation has included court-authorized wiretaps on multiple phones used by alleged members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging the following individuals with conspiracy to distribute, and to possess with intent to distribute, heroin, cocaine and cocaine base (“crack”):
ZACHARY LEE FOSTER, a.k.a. “Lee,” 54, Waterbury
JASON METZ, a.k.a. “Jay,” 51, Naugatuck
JAMES GRANT, a.k.a. “Bobo,” “Bo,” and “Jimbo,” 56, Waterbury
DEREK METZ, 31, Waterbury
JESUS NIEVES, a.k.a. “Pop,” 37, Waterbury
ALGENYS PAULINO, a.k.a. “Chico” and “Lying Queen,” 32, Bronx, New York
EDDIE SMALLS, a.k.a. “Pooch,” 47, Waterbury
SHERMAN PETERS, a.k.a. “Red,” 36, Waterbury
LATASHA SLAUGHTER, a.k.a. “Tasha,” 42, Waterbury
LAWRENCE JACKSON, 24, Waterbury
ADAM MINES, a.k.a. “White Boy,” 37, Waterbury
HECTOR DIAZ, 23, Waterbury
LECHARD SANTOS, 31, Waterbury
KEON COUNCIL, 43, Waterbury
RONDELL MAURICE WRIGHT, a.k.a. “Reese,” 52, Waterbury
ISAAC WILSON, a.k.a. “Ike,” 24, Waterbury
CHASCITY PEREZ, 25, WaterburyFifteen defendants were arrested today. Grant has been in state custody since January 21 and Peters is still being sought.
In association with today’s arrests, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine. Investigators also seized nine firearms, including an AK-47-style rifle.
If convicted of the charge in the indictment, based on the type and quantities of narcotics attributable to each defendant, Foster, Jason Metz, Grant, Derek Metz, Nieves, Paulino and Smalls face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Peters, Slaughter and Jackson face a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; and Mines, Diaz, Santos, Council, Wright, Wilson and Perez face a maximum term of imprisonment of 20 years.
“More Connecticut residents lost their lives to overdoses in 2020 than in any year previously and the U.S. Attorney’s Office and our law enforcement partners are committed to using the full force of federal law to investigate and prosecute those responsible for trafficking these deadly drugs,” said Acting U.S. Attorney Boyle. “I commend the DEA Task Force members and Waterbury Police for their excellent work during this investigation, and their success in apprehending every charged defendant and seizing a large quantity of narcotics. I also thank the Waterbury State’s Attorney’s office for its continued partnership in these efforts. All involved have made the community safer and saved lives.”
“This joint investigation is an example of how things are supposed to be done, and the results speak for themselves,” said Waterbury State’s Attorney Platt. “The Waterbury State’s Attorney’s Office will continue to work closely with federal prosecutors on this case, and others.”
“Illegal drug distribution ravages the very foundations of our families and communities here in Waterbury,” said DEA Special Agent in Charge Boyle. “Let these arrests and seizures serve as an example to those who distribute poisons like heroin, crack-cocaine and cocaine, that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners here in Connecticut and our solid relationship with the U.S. Attorney’s Office.”
“We are very appreciative for the support from the U.S. Attorney’s Office and for our partnership with the DEA to attack drug trafficking in our community,” said Chief Spagnolo. “This is the second long-term wiretap investigation the Waterbury Police Department has participated in over the last three years, and we expect to continue to work with federal authorities on these kinds of cases going forward.”
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Contractor Pleads Guilty to Lying to OSHA InvestigatorsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Michael C. Mikulka, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, and Galen Blanton, Regional Administrator of the Occupational Safety and Health Administration (OSHA) Criminal Investigations Team, Region 1, announced that LUIS F. ESTRADA, 47, of Bridgeport, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to making false statements and submitting false documents to OSHA while the agency conducted an investigation into a job site he controlled.
According to court documents and statements made in court, Estrada is the owner of L.L.E. Construction, LLC. In February 2018, Estrada and L.L.E. Construction entered into a written contract to perform roof repairs and other construction services at a property located on Main Street in Bridgeport. In February and March 2018, Estrada was provided with three checks totaling $11,000 for performing the work. On March 1, 2018, a compliance officer with OSHA visited the property and observed what he believed to be various safety infractions by construction workers who were making the roof repairs. The officer then initiated an on-site inspection into the suspected infractions. Estrada was not present at the Main Street property at the time, but spoke to the compliance officer by mobile phone.
On May 22, 2018, OSHA compliance officers served Estrada with a subpoena that demanded documents and records related to L.L.E. Construction’s work at the Main Street property in February and March 2018. On July 30, 2018, Estrada hand-delivered a written response stating that he “did not do any work for the ‘LLE Roofing Project,’” that “[t]here is no payroll because [he] did not work on the ‘LLE Roofing Project,’” and that he “do[es] not have any contract or any documents regarding the ‘LLE Roofing Project.’”
In pleading guilty to one count of making false statements to the U.S. Department of Labor, Estrada admitted that he lied in his written statements on July 30, 2018, and that he later lied in a deposition convened as part of the OSHA investigation into the suspected safety violations at the site.
At sentencing, which is not scheduled, Estrada faces a maximum term of imprisonment of five years. Estrada is released on a $75,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Labor, Office of Inspector General, and the OSHA Criminal Investigations Team, Region 1. The case is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Clarksville Restaurant Owner Pleads Guilty in Alien Harboring and Tax Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – March 3, 2021 – The majority owner of the New China Buffett & Grill (NCBG) in Clarksville, Tennessee, pleaded guilty yesterday in U.S. District Court to conspiracy to harbor illegal aliens; harboring illegal aliens; money laundering; tax evasion; and employment tax fraud, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Quanwei Shi, 31, of Clarksville, pleaded guilty before U.S. District Judge Eli J. Richardson. Shi and NCBG co-owner Chongqiang Chen, 30, also of Clarksville, were arrested in April 2020, after a 14-count indictment charged them in a scheme to harbor undocumented workers and to defeat the tax laws of the United States.
Shi admits that between 2017 and April 2019, he conspired to conceal and harbor illegal aliens from China and Guatemala, profiting from their employment at NCBG. The undocumented workers were not required to complete any forms related to immigration status and were paid in cash, outside the regular payroll system. In addition, Shi admits that the undocumented workers lived with him at his residence on D Street in Clarksville; were transported to NCBG and back daily; and were assigned to work in the kitchen where they would not be able to interact with the patrons of the restaurant.
In addition to harboring the undocumented workers, Shi admits that for tax years 2017 through 2019, he underreported gross receipts on NCBG’s corporate tax returns and failed to collect, account for, and pay over employment taxes for an overall tax loss of $440,941.
The government also seeks to forfeit Shi’s house in Clarksville; two vehicles, the contents of two bank accounts, totaling $33,126.25; and $42,947 in cash.
Shi faces up to 45 years in prison when he is sentenced on July 16, 2021.
The case against Chongqiang Chen remains pending and he is presumed innocent until proven guilty in a court of law.
This case was investigated by Homeland Security Investigations; the IRS-Criminal Investigation; the Diplomatic Security Service of the U.S. Department of State; the Tennessee Bureau of Investigation; the Tennessee Bureau of Workers Compensation; the Clarksville Police Department; and the Montgomery County Sheriff’s Office. Assistant U.S. Attorneys Sara Beth Myers and Robert Levine are prosecuting the case.
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Canadian Man Sentenced on Drug and Immigration OffensesRead the Press Release
A Canadian man was sentenced today to 71 months imprisonment after having pleaded guilty to possessing with intent to distribute marijuana and to unlawful entry into the United States, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Vance Callander of Homeland Security Investigations (HSI), Detroit.
Sentenced was Glen Richard Mousseau, 49, of Windsor, Canada.
According to court records, during the early morning hours on June 5, 2020, Border Patrol Agents observed a vessel carrying Mousseau cross the international boundary from Canada into the United States at a high rate of speed. The vessel fled when agents attempted to perform a stop. Agents observed two large bundles thrown over the side of the vessel. Mousseau had abandoned the vessel and was found seemingly unconscious in the water with approximately 265 pounds of marijuana attached to him with two ropes. Mousseau was subsequently arrested and admitted to possessing the marijuana for distribution in the United States. Mousseau had been previously deported from the United States in December, 1995 and had not obtained authorization to reenter.
Acting US Attorney Mohsin said, “Mousseau was a sophisticated drug smuggler who smuggled large quantities of drugs, to include methamphetamine, cocaine and marijuana, along with bulk cash, across the international waterway between the United States and Canada. He smuggled these items during early morning hours using submersible vessels and diving equipment and a high speed boat showing just how dangerous drug trafficking can be.”
The investigation was led by specials agents with Homeland Security Investigations with the assistance of the St. Clair County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorneys Jonathan Goulding and John O’Brien.
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COVID-19 Unemployment Benefit Fraud Scheme ChargedRead the Press Release
FRESNO, Calif. — On Thursday, Feb. 25, a federal grand jury returned an indictment charging two defendants in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, Acting U.S. Attorney Phillip A. Talbert announced.
The three-count indictment charges Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, with one count of conspiracy to commit mail fraud and two counts of aggravated identity theft. The indictment was unsealed and Vertz was arraigned on Tuesday following his arrest.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to EDD. Recorded jail calls and emails show that Powers and other inmates, provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $103,000 as a result of the fraud.
This case is the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
If convicted of the conspiracy to commit mail fraud, Vertz and Powers each face a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of the aggravated identity theft, they face a mandatory two-year sentence consecutive to any other sentence. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
CEO Sentenced to Prison in $150 Million Health Care Fraud, Opioid Distribution, and Money Laundering SchemeRead the Press Release
The chief executive officer of a Michigan and Ohio-based group of pain clinics and other medical providers was sentenced today to 15 years in prison for developing and approving a corporate policy to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids.
Mashiyat Rashid, 40, of West Bloomfield, Michigan, was the CEO of the Tri-County Wellness Group of medical providers in Michigan and Ohio. In addition to the prison sentence, Rashid was also ordered to pay over $51 million in restitution to Medicare, as well as forfeiture to the United States of property traceable to proceeds of the health care fraud scheme, including over $11.5 million, commercial real estate, residential real estate, and a Detroit Pistons season ticket membership.
Rashid pleaded guilty in 2018 to one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. Twenty-one other defendants, including 12 physicians, have been convicted thus far, including four physicians who were convicted after a one-month trial in 2020. Rashid is the second defendant to be sentenced.
According to court documents, from 2008 to 2016, Rashid was the CEO of the Tri-County Wellness Group, where the clinics had a policy to offer patients, some of whom were suffering from legitimate pain and others of whom were drug dealers or opioid addicts, prescriptions of Oxycodone 30 mg, but forced the patients to submit to unnecessary back injections in exchange for the prescriptions.
Testimony at the trial established that in some instances the patients experienced more pain from the shots than from the pain they had purportedly come to have treated; that audible screams from patients were observed throughout the clinics; and that some patients developed adverse conditions, including open holes in their back. Patients, including patients who were addicted to opioids, who told the doctors that they did not want, need, or benefit from the injections, were denied medication by the defendants and their co-conspirators until they agreed to submit to the expensive and unnecessary injections. The evidence further established that the defendants repeatedly performed these unnecessary injections on patients, as Tri-County was paid more for facet joint injections than any other medical clinic in the United States.
The evidence at trial showed that the Tri-County clinics valued making money over patient care. The Tri-County clinics intentionally targeted the Medicare program and recruited patients from homeless shelters and soup kitchens. Evidence at trial indicated that Rashid only hired physicians who were willing to disregard patient care in the pursuit of money. Rashid incentivized the physicians to follow the Tri-County protocol of offering opioid prescriptions and administering unnecessary injections by offering to split the Medicare reimbursements for these lucrative procedures. The specific injections used had nothing to do with the medical needs of the patients but were instead selected to be administered because they were the highest-paying injection procedures. A former Tri-County employee testified at the trial of Rashid’s co-defendants that the practices at the clinic were “barbaric.”
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima Shafiq Mohsin of the Eastern District of Michigan; Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG’s) Chicago Region; Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; and Special Agent in Charge Sarah Kull of IRS Criminal Investigation (IRS-CI) Detroit made the announcement.
HHS-OIG, FBI, and IRS-CI conducted the investigation. Assistant Chief Jacob Foster of the National Rapid Response Strike Force and Trial Attorney Tom Tynan of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Businessman Indicted for Not Reporting Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Herndon man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.
According to the indictment, Azizur Rahman, 70, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. For the years 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.
Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful.
If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR. 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; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department's Tax Division; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement.
Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Justice Department’s Tax Division are prosecuting 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. 1:21-cr-22.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.