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Wednesday 16 December 2020
Justice Department Defends Health Care Workers from Being Forced to Perform Abortions with Vermont LawsuitRead the Press Release
The Justice Department’s Civil Rights Division today filed a civil lawsuit in Vermont federal court against the University of Vermont Medical Center (UVMMC) for violating the federal anti-discrimination statute known as the “Church Amendments.” That statute prohibits health care entities like UVMMC from discriminating against health care workers who follow their conscience and refuse to perform or assist with abortions.
“No institution or person should force any health care provider to perform an abortion if doing so would violate the provider’s religious beliefs or moral convictions. This kind of indecent coercion violates everything this country stands for,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Federal law protects health care providers from having to choose between their job and participation in what they sincerely believe is the taking of an innocent human life. Coercing people to perform abortions violates the law, and the U.S. Department of Justice will not stand for this shocking and outrageous attack against the right of all people in this free country to follow their conscience.”
The United States’ complaint alleges that UVMMC violated the Church Amendments when it chose intentionally and willfully to discriminate against a nurse who plainly made her objection to participating in abortions based on her religious beliefs or moral convictions known to UVMMC. Despite knowing of her objection, UVMMC deliberately scheduled this nurse to assist with an elective abortion while deceptively misleading her to believe the procedure did not involve abortion. Once the deceived nurse entered the procedure room she learned the true nature of the procedure. After she reiterated her objection, UVMMC refused to find a non-objecting nurse to take over, effectively forcing the nurse to continue assisting in the abortion (or abandon the patient) despite her well-known religious objection. This example makes up just part of UVMMC’s ongoing pattern, practice, and policy of discriminating against health care providers who believe that the performance, or the assistance in the performance, of abortions is contrary to their religious beliefs or moral convictions.
In response to the Supreme Court’s Roe v. Wade decision in 1973, Congress nearly unanimously enacted the Church Amendments, named for Senator Frank Church of Idaho. The Church Amendments prohibit grantees of the U.S. Department of Health and Human Services (HHS) from discriminating against health care personnel who “refuse[ ] to perform or assist in the performance of [an] abortion on the grounds that his performance or assistance in the performance of the procedure or abortion would be contrary to his religious beliefs or moral convictions.” 42 U.S.C. § 300a-7(c)(1). HHS has provided such grant funding to UVMMC since 1998, including over 1.6 million dollars in FY2018-FY2020.
The case originated from an investigation by HHS. HHS’s investigation found UVMMC in violation of the Church Amendments, and referred the violation to the U.S. Department of Justice for enforcement after UVMMC refused to voluntarily correct its illegal actions.
Judge sentences St. Louis woman for her role carjacking resulting in death of Gus Gus Fun Bus OwnerRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Jana Stowers to 180 months in prison today. The 22-year-old East St. Louis, Illinois resident pleaded guilty to one count of aiding and abetting carjacking resulting in the death of Michael Arnold. Judge Perry sentenced Curtis Alford, Stowers’ co-defendant, to 20 years in prison last week.
On June 16, 2018, Stowers and Alford rushed up to two victims putting money in a parking meter. The victims were in St. Louis attending the ‘Taste of St. Louis’ event downtown. Alford sprayed the victims with pepper spray as he tried to grab their truck keys. Stowers supplied Alford with the pepper spray. While Alford struggled with both victims, he grabbed one by the hair and neck, pulling her to the sidewalk. Alford then pulled the keys from her belt loop and got in her truck. One of the victims then attempted to stop Alford as he started the engine. He shoved her out of the way and began to pull away from the curb.
Michael Arnold, who witnessed the carjacking, was in the street near the truck and taking a picture of the incident. As Alford pulled away, Arnold tried moving out of the way, but Alford drove over him, pinning Mr. Arnold under the truck. Alford then dragged Mr. Arnold across the street, jumped the curb, hit another victim who had been walking on the sidewalk, struck a fire hydrant and then sped off. Alford picked up Stowers around the corner and continued to speed away. As a group of pedestrians and two police officers gathered near the corner of Seventh Street and Chestnut, Alford sped in their direction, eventually crashing the truck. The officers and pedestrians had to scatter to avoid being hit. Officers immediately arrested Alford and Stowers. Mr. Arnold suffered multiple, severe internal injuries and died days later of these injuries. The other victims were treated at the scene for their injuries.
“Whenever we can find a federal violation, all participants in violent crime will be prosecuted to the fullest extent of the law,” said Jeff Jensen, U.S. Attorney for the Eastern District of Missouri.
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Judge sentences St. Louis man for aggravated identify theftRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen R. Clark sentenced Tyrelle Phillips to 24 months in prison today. The 29-year-old St. Louis, Missouri resident pleaded guilty to one count of aggravated identify theft.
On March 30, 2018, First Community Credit Union alerted one of its cardholders of potentially fraudulent activity on her credit card. Richmond Heights Police investigated and learned the cardholder’s account number had been used to buy electronic equipment valued at $1,275.64 from the Microsoft Store. Through interviews with store personnel and reviewing store surveillance, detectives identified Phillips as the individual who made the fraudulent purchase with a prepaid debit card that had a magnetic strip embedded with the credit union customer’s account number.
In a subsequent investigation, Richmond Heights Police also identified Phillips using a counterfeit card embedded with the account of another person to buy merchandise, food and gift cards from various merchants throughout the St. Louis Metropolitan area. Between March 7, 2019 and March 11, 2019, the actual fraud losses through the other person’s credit card exceeded $1,500.
Because Phillips was serving a three-year term of federal supervision after completing a 39-month term of imprisonment for engaging in similar conduct in 2014, he was also sentenced to an additional ten months of incarceration after Judge Clark revoked his earlier term of supervised release. In total, Phillips was ordered to serve a total of 34 months incarceration.
The Richmond Heights Police Department investigated this case. Assistant United States Attorney Tracy Berry is handling the case.
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Indictment Alleges Two Peoria Businessmen Embezzled Funds, Revenue Related to Pere Marquette Hotel Complex DevelopmentRead the Press Release
PEORIA, Ill. – A federal grand jury has indicted two Peoria area businessmen who led a redevelopment project to renovate the Pere Marquette Hotel and to add a Marriott Courtyard. Gary E. Matthews, 78, and Monte J. Brannan, 67, are charged with using funds provided by investors, the City of Peoria and others, and hotel revenues to enrich themselves and their other business interests from 2008 to 2018.
According to the indictment, Matthews formed GEM Hospitality LLC in 2008 to own and develop the hotel complex in downtown Peoria. GEM was managed by EM Properties, Ltd., another entity that Matthews owned. Brannan became a co-managing partner of GEM in July 2011 when Matthews sold Brannan 50 percent ownership for $1 million.
In 2008, the City of Peoria and Matthews reached a redevelopment agreement for the hotel project to include renovation of the Pere Marquette and the addition of a Pere Marquette Courtyard Marriott hotel. The Pere Marquette closed for renovation in December 2011 and reopened in June 2013. The Pere Marquette Courtyard opened in July 2014.
Funding and loans for the project, estimated at $92 million, were provided by a fund known as Indure, by the International Brotherhood of Electrical Workers and National Electrical Association Diversified Underwritten Real Estate Fund LLC; local banks; the City of Peoria; CORE Construction Services of Illinois; and, private investors. All the lending agreements, including a side letter amendment with the City of Peoria, which loaned $7 million and provided a $29 million grant to fund the project, set forth requirements that Matthews and Brannan were not allowed to take fees and revenues of the hotel development except as explicitly provided.
Marriott International managed the Pere Marquette after it opened in mid-2013 and the Courtyard after its opening in 2014. While Marriott managed the hotels, Matthews and Brannan did not have access to the hotels’ revenues. In 2014, Matthews alleged that Marriott had provided poor management and sought to change management to one of his companies. The City of Peoria rejected Matthews’ proposal, but agreed to execute a side letter amendment to loan documents to allow Matthews’ request to retain First Hospitality Group of Rosemont, Ill., to handle hotel management.
Under the side letter amendment, Matthews and Brannan were required to file monthly certificates of compliance with the various provisions, including that there be no payment of fees directly or indirectly to Matthews and Brannan. The indictment alleges that Matthews and Brannan filed only three compliance certificates which were false, and then stopped complying with the requirement to submit the compliance certificates.
Meanwhile, the indictment alleges that under First Hospitality Group management, Matthews and Brannan directed FHG to transfer monthly payments from the hotel accounts to an account they controlled. In defiance of terms of the loans, Matthews and Brannan allegedly used FHG to fraudulently obtain funds for themselves from the revenues of the hotels. At the time, Matthews and Brannan knew that FHG was unable to pay other financial obligations of the hotels, including payments to Marriott and vendors.
Financial statements provided by FHG listed the payments as monthly rent, garage rent, Marriott rewards expenses, and franchise fees. Matthews and Brannan allegedly provided these statements to others involved in the project’s financing knowing that the statements were misleading and concealed the actual diversion of the funds to Matthews and Brannan.
On or about June 30, 2016, Marriott issued a notice of default to Matthews and Brannan because of past due obligations of $1.4 million. Matthews and Brannan did not pay the past due obligations and allegedly continued to divert funds to themselves. When Marriott shut off the reservation system for the hotels, in January 2017, Matthews and Brannan made a payment to keep the reservation system active.
Following Marriott’s notice of default, Indure issued a notice of default on its delinquent loan and in February 2017, Indure filed a foreclosure action. Following the foreclosure filing, the indictment alleges that Matthews and Brannan and their related businesses named in the foreclosure filing, caused repeated delays in court proceedings, while maintaining access to the hotels’ revenues.
The indictment alleges that even though they defaulted on loans and other obligations, Matthews and Brannan continued to fraudulently transfer hotel revenues, diverting approximately $750,000 to themselves after the notice of foreclosure.
As a result of the scheme, Matthews and Brannan caused FHG to transfer approximately $13.8 million of the hotels’ revenues to the account they controlled and diverted approximately $1.6 million to themselves and their businesses.
Further, the indictment charges Brannan with three counts of concealment of bankruptcy assets after he filed for bankruptcy under Chapter 11 in April 2018. Brannan allegedly concealed a vehicle, $80,000 in cash, and omitted bank accounts, including an account for a startup known as Seduction Boutique, in which he was a shareholder and authorized signer of the account.
The U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigation Division, conducted the investigation. The bankruptcy charge resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10). Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Douglas F. McMeyer represent the government in the prosecution.
If convicted, the statutory penalty for each count of mail fraud (five counts); money laundering conspiracy (one count), and money laundering (nine counts) is up to 20 years in prison; and, money laundering (three counts) is up to 10 years in prison. Brannan faces a maximum statutory penalty for concealment of bankruptcy assets (three counts) of up to five years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Illegal alien brothers imprisoned for smuggling businessRead the Press Release
CORPUS CHRISTI, Texas – The third and final family member convicted in a large-scale alien smuggling operation has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Mexican citizen Ricardo Salazar-Mendoza, 39, pleaded guilty Nov. 12, 2019.
Today U.S. District Judge David S. Morales sentenced to him to 84 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court noted the number of aliens involved in this conspiracy and that Salazar-Mendoza brandished a firearm and involuntarily detained an alien.
Between March 2019 and August 2019, Salazar-Mendoza and his two brothers - Juan Carlos Salazar Mendoza, 38, and Alejandro Salazar-Mendoza, 43 - operated an alien smuggling organization.
Juan Carlos received aliens who had crossed the border illegally, housed them and hired drivers to get them past the checkpoint. The aliens were hidden in dangerous places such as in motorhomes or secret compartments under vehicles.
Ricardo operated at least one stash house for the organization in which aliens were housed while the brothers awaited smuggling fees and made smuggling arrangements to get the aliens through the checkpoint. During the conspiracy, Ricardo brandished a firearm and involuntarily detained at least one alien.
In total, law enforcement discovered at least 64 aliens from various countries at the Sarita Border Patrol Checkpoint. At least one was an unaccompanied minor.
Alejandro and Juan Carlos were previously sentenced to 80 and 108 months, respectively.
They all have been and remain in custody.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation in conjunction with Customs and Border Protection. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Ice Company to Plead Guilty to Longstanding Clean Air Act ViolationsRead the Press Release
PROVIDENCE – According to documents filed in U.S. District Court in Providence, an East Providence ice company is set to plead guilty to violating the Clean Air Act by repeatedly failing to implement a Risk Management Plan (RMP) to be executed in the event of an accidental release of anhydrous ammonia, an extremely hazardous substance.
According to court documents, J.P. Lillis Enterprises, Inc., D/B/A Cape Cod Ice, a cold storage warehouse and ice manufacturing facility that stores up over 10,000 pounds of anhydrous ammonia at its facility located on the banks of the Seekonk River, in an industrial area near a residential area, and in the vicinity of an elementary school, was assessed a civil penalty by the Environmental Protection Agency as far back as 2012 for failing to develop and submit an RMP, and since has been repeatedly found to contain equipment in need of repair to avoid a potential release of anhydrous ammonia.
Subsequent inspections by EPA, OSHA, and the East Providence Fire Department found the existence of corrosion on ammonia-carrying pipes and on the facility’s high- pressure ammonia receiver, the failure of corrosion-preventing insulation on the pipes, and inadequate inspection, testing, and maintenance of the ammonia piping and receiver.
United States Attorney Aaron L. Weisman and Tyler Amon, Special Agent in Charge of the Environmental Protection Agency Criminal Investigation Division Boston Area Office, announced today that Cape Cod Ice has agreed to pay a $90,000 fine; serve a term of three years federal supervised release; and will, within 90 days of sentencing, engage a qualified independent ammonia refrigeration consultant to conduct an audit that (1) evaluates Cape Cod Ice’s compliance with the Clean Air Act and address deficiencies identified by the EPA, OSHA, and East Providence Fire Department and (2) includes a required maintenance inspection program.
According to a Plea Agreement filed in this matter, Cape Cod Ice will submit to the United States Attorney’s Office and to United States Probation within 30 days of the completion of the audit an action plan to address the findings of the audit and a timeline of completion of actions to be taken by the company.
According to court documents, in 2015, Cape Cod Ice repaired the corroded receiver and certified to OSHA that it had corrected the cited violations. Cape Cod Ice provided OSHA a preventative maintenance program contract with an outside consultant as evidence of its corrective actions; that contract was never signed or implemented.
Cape Cod Ice also sent to OSHA a process hazard analysis performed by an outside consultant which contained recommendations to prevent a catastrophic ammonia release; all recommendations were not implemented.
Outside consultants also performed an audit of the RMP Program and a mechanical integrity inspection which contained recommendations; all recommendations were not implemented.
In January of 2017, EPA sent a letter to Cape Code Ice, urging Cape Cod Ice to ensure compliance with the RMP requirements. In April of 2017, EPA inspected the facility and again observed numerous violations of the RMP and PSM regulations, including the existence of corrosion on ammonia-carrying pipes and on the facility’s high-pressure ammonia receiver, and the failure of corrosion-preventing insulation on the pipes. In June of 2017, EPA also issued an Administrative Compliance Order to Cape Cod Ice.
In May of 2017, the East Providence Fire Department inspected the facility and issued a Notice of Violation finding, among other things, that ammonia piping was rusted and showed signs of excessive corrosion, with areas that had moldy insulation or no insulation; and that the ammonia receiver was corroded. The Fire Department ordered the facility to come into compliance. Cape Cod Ice has submitted reports to the East Providence Fire Department and to EPA indicating that it has taken steps to bring the facility into compliance.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Dianne Chabot, EPA Regional Criminal Enforcement Counsel.
The matter was investigated by the EPA’s Criminal Investigation Division.
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Havre man sentenced to prison for trafficking meth in Great Falls, Havre areasRead the Press Release
GREAT FALLS — A Havre man who admitted dealing methamphetamine for two years was sentenced today to 66 months in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Terry Lee Wells, Jr., 34, pleaded guilty on Aug. 17 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents that in December 2019, law enforcement had been receiving information about Wells’ involvement in drugs and crime around Great Falls, the Rocky Boy’s Indian Reservation and Havre and began searching for him.
Law enforcement in Havre began to review phone calls from the Hill County Jail and identified numerous inmates who had been calling Wells. Detectives learned through this information that Wells had made a quick trip from Great Falls to Seattle and back in early December.
On Dec. 19, 2019, detectives found Wells driving north from Great Falls to Havre and attempted to stop him. Wells fled and crashed his car. Officers took Wells to the Hill County Jail, where officers found a small baggie of meth.
During an interview with agents on Jan. 6, 2020, Wells admitted he had begun dealing meth in 2017 and continued dealing meth through out 2019. He also admitted he had driven to Seattle on Dec. 5, 2019 to buy meth for redistribution in Montana.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the FBI, Great Falls Police Department and the Tri-Agency Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Grafton, Wisconsin, Dentist Indicted for Health Care Fraud Scheme That Involved Purposefully Damaging Patients’ TeethRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 15, 2020, a federal grand jury indicted Scott Charmoli (age: 60) of Grafton, Wisconsin, for pursuing a health care fraud scheme that involved purposefully damaging patients’ teeth so that he could bill insurance companies for crown procedures.
According to the indictment, beginning on or about January 1, 2016, Charmoli engaged in a scheme whereby Charmoli falsely advised patients that they needed crowns, purposefully damaged the patients’ teeth during crown procedures, and subsequently submitted x-rays and photographs of the damaged teeth to insurance companies to obtain insurance coverage for the crowns. The indictment asserts that by submitting x-rays and photographs of teeth he had purposefully altered, Charmoli made materially false and fraudulent statements to insurance companies in connection with the delivery of, and payment for, health care benefits. The indictment alleges that Charmoli performed over $2,000,000 worth of crown procedures just between January 1, 2018, and August 7, 2019.
The indictment charges Charmoli with multiple counts of Health Care Fraud and False Statements Relating to Health Care Matters, in violation of 18 U.S.C. § 1347 and 18 U.S.C. § 1035. If convicted, Charmoli faces a maximum sentence of 20 years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 Special Assessment.
“The Justice Department focuses on prosecuting health care fraud not only to protect health care funds but also to protect patients who entrust their well being to providers,” said United States Attorney Krueger.
The Federal Bureau of Investigation investigated the case, which Assistant United States Attorneys Julie F. Stewart and Michael A. Carter will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Former Venezuelan National Treasurer and her Spouse Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
Miami, Fl. -- A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme. An alleged co-conspirator was previously charged in the original indictment.
Claudia Patricia Diaz Guillen (Diaz), 47, and her spouse, Adrian Jose Velasquez Figueroa (Velasquez), 41, Venezuelan citizens who reside in Madrid, Spain, were charged in a superseding indictment filed in the Southern District of Florida with one count of conspiracy to commit money laundering and two counts of money laundering.
Raul Gorrin Belisario (Gorrin), 52, a Venezuelan billionaire businessman who owns Globovision news network, was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same conspiracy and money laundering counts. He is currently a fugitive residing in Venezuela.
The superseding indictment alleges that Gorrin paid millions of dollars in bribes to two former Venezuelan national treasurers, Alejandro Andrade Cedeno (Andrade) and Diaz, and to Velasquez, for the benefit of Diaz, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government. Gorrin wired money to and for the benefit of Andrade and Diaz, including money for private jets, yachts, homes, champion horses, high-end watches and a fashion line. To conceal the bribe payments, Gorrin made payments through multiple shell companies.
Andrade, 56, a Venezuelan citizen, was previously sentenced to 10 years in prison in November 2017 for his role in the conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, Special Agent in Charge Peter C. Fitzhugh and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and FDIC D.C. investigated this case. Assistant U.S. Attorney Kurt Lunkenheimer, of the Southern District of Florida, and Assistant Chief Vanessa Sisti and Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff and Assistant U.S. Attorney Nalina Sombuntham, of the Southern District of Florida, are handling asset forfeiture. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find court documents 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 18-cr-80160.
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Former Venezuelan National Treasurer and Her Spouse Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment filed Tuesday for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme. An alleged co-conspirator was previously charged in the original indictment.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Acting Special Agent in Charge David Magdvcz of HSI Boston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) made the announcement.
Claudia Patricia Diaz Guillen (Diaz), 47, and her spouse, Adrian Jose Velasquez Figueroa (Velasquez), 41, Venezuelan citizens who reside in Madrid, Spain, were charged in a superseding indictment filed in the Southern District of Florida with one count of conspiracy to commit money laundering and two counts of money laundering.
Raul Gorrin Belisario (Gorrin), 52, a Venezuelan billionaire businessman who owns Globovision news network, was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same money laundering conspiracy and money laundering counts. He is currently a fugitive residing in Venezuela.
The superseding indictment alleges that Gorrin paid millions of dollars in bribes to two former Venezuelan national treasurers, Alejandro Andrade Cedeno (Andrade) and Diaz, and to Velasquez, for the benefit of Diaz, to corruptly secure the rights to conduct foreign currency exchange transactions for the Venezuelan government at favorable rates. Gorrin wired money to and for the benefit of Andrade and Diaz, including money for private jets, yachts, homes, champion horses, high-end watches, and a fashion line.
Andrade, 56, a Venezuelan citizen, was previously sentenced to 10 years in prison in November 2018 for his role in the conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC OIG are investigating this case. This case is being prosecuted by Assistant Chief Vanessa Sisti and Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Kurt Lunkenheimer and Nalina Sombuntham of the Southern District of Florida. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Leader of New Bedford Latin Kings Chapter Sentenced for Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A former leader of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today for drug conspiracy charges.
Xavier Valentin-Soto, a/k/a “King X,” 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 65 months in prison and three years of supervised release after pleading guilty in September 2020 to conspiracy to distribute cocaine. Valentin-Soto was charged in December 2019, while serving a related sentence in state prison. Prior to his incarceration on the state charges, Valentin-Soto was the Cacique (or second-in-command) of the New Bedford Chapter of the Latin Kings.
Valentin-Soto admitted that he conspired with other Latin Kings members and leaders to distribute cocaine and cocaine base in and around New Bedford. As Cacique, Valentin-Soto held a leadership role in the drug distribution conspiracy that the Latin Kings maintained in and around multiple trap houses throughout the north side of New Bedford.
Valentin-Soto was arrested in July 2017, when local police executed a search warrant at a Latin Kings trap house in north New Bedford and located cocaine and materials for the packaging and distribution of controlled substances. Valentin-Soto was charged in state court, but released after posting bail. While on pretrial release for the state charges, Valentin-Soto sold a total of 160 grams of cocaine powder to a cooperating witness over the course of three recorded purchases in early 2019.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Xavier Valentin-Soto is the ninth defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Employee of Colorado Non-profit Heath-care System Sentenced to More Than Seven Years in Federal Prison for Money LaunderingRead the Press Release
DENVER – U.S. Attorney Jason Dunn announced that David Paul Rietz, age 60, of Lakewood, Colorado was sentenced to serve 92 months in federal prison followed by 3 years of supervised release for conspiracy to commit money laundering. Rietz also was ordered to pay restitution of $4,197,775.83. IRS Criminal Investigation and the Federal Bureau of Investigation joined in this announcement.
According to court records, Rietz defrauded his employer, a nonprofit health-care system based in Colorado, of more than 16 million dollars. Rietz organized a scheme whereby inflated quotes for computer services were submitted through another company owned by a co-conspirator. Rietz approved these quotes, whereby millions in inflated payments were approved before the fraud was discovered. Proceeds went back Rietz and his co-conspirators through a third company, which returned profits to Rietz in the form of payments on fake contracts for goods and services, gold coins, and cashier checks
“Our office is committed to uncovering and prosecuting complex fraud schemes,” said U.S. Attorney Jason Dunn. “Through great partnerships with IRS-Criminal Investigation and the FBI, our prosecutors are unwinding tangled webs of fraud and bringing justice for Coloradan victims.”
“Honest and law-abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money," IRS – Criminal Investigation Special Agent in Charge Andy Tsui said. "The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel. Individuals who engage in this type of financial fraud should know they will be held accountable."
"FBI Denver works closely with our law enforcement partners to combat money laundering and white collar crimes in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “The sentencing of Mr. Rietz should serve as a deterrent to those who seek to prey on innocent victims that their criminal acts will not be tolerated and they will be brought to justice. Special thanks to the IRS and U.S. Attorney’s Office for their dedication and hard work on this investigation.”
Rietz was sentenced on December 14, 2020, by United States District Court Judge R. Brooke Jackson. The sentence included enhancements for being the leader and organizer of the offense and for obstruction of justice for lying under oath in civil proceedings related to the underlying fraud. Rietz’s co-conspirators were previously sentenced. Richard Scott Cartwright was sentenced on August 6, 2019, by Judge Jackson to serve 60 months in prison and also ordered to pay restitution of $4,197,775.83, which is the same amount as Rietz. Lyle Perry, who participated in the money laundering but not the underlying fraud, was sentenced to 36 months’ imprisonment by Chief Judge Philip A. Brimmer, and ordered to pay approximately $2.6 million in restitution.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Anna Edgar.
CASE NUMBERS: 18-cr-00479 & 18-cr-00480
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Florida Escort Pleads Guilty to Underreporting IncomeRead the Press Release
WASHINGTON – A Fort Lauderdale, Florida, escort pleaded guilty today to filing a false corporate tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the Southern District of Florida, Ariana Fajardo Orshan.
According to court documents, Jami Kopacz worked as a paid escort for clients across the United States. Kopacz received payments directly from his escort clients, and also from a private business for whom he worked as an independent contractor. From 2015 to 2018, Kopacz used his corporation, JK Training, LLC, to receive income, and then filed false corporate tax returns (Forms 1120S) that substantially underreported the company’s gross receipts and total income. The understatement on JK Training’s corporate tax return was consequently passed through to Kopacz’s individual tax returns, which were also false as they underreported his total income. Kopacz caused a total tax loss of $278,325.
Magistrate Judge Patrick M. Hunt accepted Kopacz’s plea today. Sentencing is schedule before U.S. District Judge Roy K. Altman on March 5, 2021. Kopacz faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Christopher Browne and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Court Orders North Carolina Pharmacy, Pharmacy Owner, and Pharmacist-in-Charge to Pay More Than $1 Million and Stop Dispensing OpioidsRead the Press Release
A federal court in the Eastern District of North Carolina entered a consent judgment and injunction requiring a North Carolina pharmacy, Seashore Drugs Inc., its owner, John D. Waggett, and its pharmacist-in-charge, Billy W. King II, to pay $1,050,000.00 in civil penalties and to cease dispensing opioids or other controlled substances, the Department of Justice announced.
The consent order resolves a complaint filed by the United States alleging that Seashore Drugs, Waggett, and King repeatedly filled prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act. The United States alleged that, for years, defendants ignored well-known “red flags” of drug diversion and drug-seeking behavior when filling prescriptions for controlled substances. These prescriptions often involved well-known, highly addictive, and highly abused painkillers such as oxycodone, hydrocodone, and methadone, along with other “potentiator” drugs — drugs that heighten the euphoric effects of opioids, like carisoprodol (i.e., Soma) and alprazolam (i.e., Xanax).
“The Department of Justice continues to use all tools at its disposal to combat the opioid crisis,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Reports indicate that COVID-19 has exacerbated many of the opioid crisis’s underlying causes. As a result, the Civil Division, DEA, and other law enforcement partners have redoubled efforts to ensure that pharmacies that fail to uphold their obligation to dispense controlled substances lawfully are held accountable.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina. “As the last line of defense between these dangerously addictive substances and our communities, pharmacists and pharmacies play a critical role in stemming the tide of the opioid epidemic. Seashore, Waggett, and King ignored that responsibility and, instead, made matters worse. Today’s order demonstrates our office’s continued, unwavering commitment to hold responsible all who had a role to play in this crisis — from distributors, to prescribers, to the pharmacies who ultimately put the pills in patients’ hands.”
“These pharmacists abandoned their code of ethics,” said Robert J. Murphy, Special Agent in Charge of the DEA. “If diversion of controlled substances is suspected, pharmacists must investigate and resolve any red flags before filling a prescription. These steps are necessary to comply with the law and to protect patient health. We will not hesitate to use all federal resources necessary to ensure that members of the health care industry follow the law.”
As alleged in the complaint, which included several patient examples, many prescriptions raised multiple red flags, but Seashore Drugs, Waggett, and King failed to take the required steps to resolve those red flags and ensure the prescriptions’ legitimacy before filling them. The red flags allegedly ignored by Seashore Drugs, Waggett, and King were numerous and included, among others:
- Combinations of controlled substances that were highly unlikely to serve a legitimate medical purpose and/or were known “cocktails” favored by drug abusers, including numerous “cocktails” written by a physician whose prescribing privileges ultimately were suspended by the North Carolina Medical Board for improper opioid prescribing;
- Extremely high doses of opioids dispensed for years on end, including high-dose opioid prescriptions written by a prescriber located in another state hundreds of miles away and written for members of the same family; and
- Repeated early fills of prescriptions allowing individuals, over time, to receive many extra doses of opioids and other controlled substances.
As set forth in the complaint, this conduct led Seashore to develop a reputation in the local pharmacy community as a place that filled prescriptions other pharmacies refused. And within the pharmacy, it is alleged that King often filled prescriptions for customers his own pharmacists, no longer on shift, previously refused to fill. Seashore staff even reported to King that individuals were exchanging recently dispensed drugs on the bench outside the pharmacy, but King took no action. Multiple customers who filled opioid prescriptions at Seashore died from prescription-drug overdoses within days after Seashore dispensed their pills.
The defendants have not admitted the allegations in the complaint, but the parties agreed to resolve the case without further litigation. The court adopted the parties’ agreement and entered a consent order that, among other things:
- Permanently prohibits Waggett from dispensing opioids or other controlled substances;
- Prohibits King from dispensing Schedule II controlled substances, including most opioids, for 180 days and then requires King to submit to further DEA monitoring for 3 years; and
- Permanently prohibits Waggett and King from serving as a manager, owner, operator, or pharmacist-in-charge of any entity, including a pharmacy, that administers, dispenses, or distributes controlled substances.
Trial Attorney James W. Harlow of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys C. Michael Anderson and John E. Harris of the U.S. Attorney’s Office for the Eastern District of North Carolina represented the United States. The Greensboro Resident Office of the Drug Enforcement Administration investigated the case. Additional investigatory assistance was provided by the U.S. Department of Health and Human Services’ Office of Inspector General and the North Carolina Board of Pharmacy.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Enemy Swim Man Sentenced to 30 Months in Federal Prison for Transfer of Obscene Material to a MinorRead the Press Release
United States Attorney Ron Parsons announced that an Enemy Swim, South Dakota, man was sentenced in federal court on December 14, 2020, for transferring obscene material to a minor. The sentence was imposed by United States District Judge Karen E. Schreier.
Francis Scott Cadotte, age 40, was sentenced to 30 months of imprisonment, to be followed by 3 years of supervised release. Cadotte was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between May 2018 and March 2019, Cadotte knowingly used a social media platform on a computer connected to the internet and a mobile phone to transfer and attempt to transfer obscene matter to another individual who was 14 years old. At the time of the transfer, Cadotte knew the nature of the content of the material, specifically discussing sexual acts that he wanted to perform on the minor, knowing that the minor was 14 years old.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Cadotte was remanded to custody to serve his sentence.
Eleven indicted in wide-ranging conspiracy trafficking heroin, cocaine, and methamphetamine in multi-state areaRead the Press Release
Seattle – Eleven people have been indicted by a grand jury sitting in the Western District of Washington for a multi-state drug trafficking conspiracy, announced U.S. Attorney Brian T. Moran. One of those indicted is a rap artist from Snohomish County, Washington, who discusses his drug trafficking activity in a documentary video. All of those in custody today will appear in U.S. District Court in Western Washington.
“This drug trafficking group continued to bring large loads of drugs up to Western Washington even after law enforcement seized nearly 50 pounds of methamphetamine from one carload,” said U.S. Attorney Moran. “This investigation uncovered threats of violence and retaliation which made it critical that law enforcement move now on this drug ring.”
“Overdose deaths attributed to fentanyl and methamphetamine continue to rise at an alarming rate in the Puget Sound region,” stated DEA Special Agent in Charge Frank Tarentino. “It is critically essential that we continue to focus our efforts against these violent criminal organizations most responsible for injecting these dangerous drugs into our communities.”
According to the indictment, the conspirators distributed large amounts of methamphetamine, heroin, and cocaine, smuggling the drugs into the U.S. from Mexico and then transporting them up the west coast for distribution in Pierce, King, and Snohomish Counties. Two of the defendants were also charged with conspiracy to commit money laundering for their activities with the drug proceeds.
Those indicted include:
CESAR VALDEZ-SANUDO, 35, of Arlington, Washington
OMAR VAZQUEZ-LIMON, 36, of Kent, Washington
AARON ALARCON-CASTANEDA (aka SOBRINO), 35, of Chino, California
JOSE LUIS ARREDONDO-VALDEZ (aka PRIMO), 25, of Lake Stevens, Washington
YVETTE Y. OLGUIN, 37, of Everett, Washington
FAUSTO PAZ (aka GORDITO), 38, of Ontario, California
GABRIEL VAZQUEZ-RUIZ, 34, of Bothell, Washington.
STEVEN R. DELVECCHIO, 63, of Snohomish, Washington
TRACY HAWKINS, 53, of Gold Bar, Washington
WAYNE A. J. FRISBY (aka MAC WAYNE), 36, of Snohomish County, Washington
KEITH A. SILVERSON, 36 of Tacoma, Washington
Since the wiretap investigation began, law enforcement has seized large amounts of drugs including a 49-pound load of methamphetamine that was coming to Washington State from California. Today alone law enforcement seized 18 pounds of heroin, 25 pounds of methamphetamine, as many as 15,000 fentanyl pills, more than $150,000 in cash drug proceeds and 23 firearms.
This case 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.
The investigation was conducted by the U.S. Drug Enforcement Administration (DEA) Tacoma Residence Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Tacoma Police Department, Snohomish Regional Drug Task Force (SRDTF), the Skagit County Sheriff's Office, the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Internal Revenue Service (IRS). In addition these law enforcement agencies assisted with the arrests and search warrants executed today: DEA Seattle Special Response Team, Seattle Field Division Office Groups, DEA Bellingham Resident Office, DEA Yakima Resident Office, DEA Spokane Division Office, DEA Riverside Resident Office, Riverside Sheriff's Department, Valley Narcotics Enforcement Team, Pierce County SWAT, Joint Narcotics Enforcement Team, Bremerton Special Operations Group, Washington State Patrol SWAT, Everett Police Department, Everett Police Department Violet Offender Task Force, Internal Revenue Service, Snohomish County SWAT and TNET, which is comprised of Lakewood, Puyallup, Auburn, and Kent Police Departments, the Pierce County Sheriff's Office, and the Washington State Department of Corrections. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA) and the DEA Special Operations Division.
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Marci Ellsworth.
valdez-sanudo_et_al_indictment.pdfEight East Bay Residents Charged with Crimes Related to Drug Distribution SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury indicted seven East Bay residents, charging them with crimes related to a scheme to supply drug users and dealers in San Francisco’s Tenderloin District with narcotics, including fentanyl and heroin, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Homeland Security Investigations (HSI) NorCal Special Agent in Charge Tatum King, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. In a press conference earlier today, U.S. Attorney Anderson announced the indictment and announced that charges were filed in a related criminal complaint against an eighth defendant.
The seven indicted defendants are Emilson Jonathan Cruz Mayorquin, aka “Playboy” (Cruz), 23; Leydis Yaneth Cruz (Leydis), 42; Ivan Mauro Mayorquin (Mayorquin), 35; Pamela Carrero aka “Nicole,” aka “Kendra,” 20; Ana Maldonado, 22; Adonis Torres, 33; and Mayer Benegas-Medina, 27. According to the indictment, from at least July to December 2020, the defendants conspired to distribute fentanyl. Court documents describe how defendants were members of a drug trafficking organization (DTO) being run primarily by Cruz and his mother, Leydis. Cruz and Leydis allegedly worked with other associates including Cruz’s significant other (Maldonado); Cruz’s sister (Carrero) and her significant other (Torres); and another family member (Mayorquin) to engage in street level drug sales and to supply narcotics for resale to multiple local narcotics re-distributors. The defendants allegedly lived in the East Bay, but routinely traveled to the Tenderloin to sell drugs, primarily fentanyl, on the streets of San Francisco.
“Parents and children who are sheltering in place against the Covid virus find it impossible to leave their own homes because of open-air drug use and drug trafficking by people who have come to the Tenderloin from outside the neighborhood,” said U.S. Attorney Anderson. “No neighborhood should be designated a law-free zone where dangerous drugs can be bought and sold with impunity.”
“The Federal Initiative in the Tenderloin began more than a year ago with a focus on eradicating the open air drug markets operating in the area with impunity. This case is another example that our sustained efforts are making a difference and we do not intend to take our foot off the gas,” stated DEA Special Agent in Charge Daniel C. Comeaux. “The people who live and work in this community deserve a neighborhood in which the rule of law prevails.”
“Fentanyl and heroin are a scourge on our nation, poisoning and killing our family and friends. The trail of destruction in human lives and community blight inevitably leads to the doorsteps of the criminals illegally trafficking these narcotics. Anyone involved in destroying lives just to make an illicit profit by selling drugs in Northern California will not remain free,” said Special Agent in Charge King. “Homeland Security Investigations Special Agents worked closely with our partners at the DEA, FBI, U.S. Customs and Border Protection, San Francisco Police Department, and San Ramon Police Department to disrupt and take down this criminal enterprise. Through U.S. Attorney Anderson’s Federal Initiative for the Tenderloin, HSI agents will continue leading and supporting this and other federal criminal investigations in the region.”
In court documents, the government has alleged that multiple members of the DTO sold a variety of drugs—including powder fentanyl, counterfeit pharmaceutical pills containing fentanyl, and heroin—to a DEA agent acting in an undercover capacity. The documents describe how members of the DTO often referred to the diverse types of fentanyl being sold by their various colors, such as blue, pink, and yellow. Further, the government has alleged that members of the DTO communicated by cell phone to discuss all aspects of running the drug business, including the availability of the various types of fentanyl, the public demand for different varieties of drugs, and the price at which drugs could be sold. They even discussed how they could grow their drug business (e.g., “the gram customers recommended other good customers who got more.”) The members of the organization also discussed the presence of police in the Tenderloin, the amounts of each type of fentanyl they had available for sale, and, on at least one occasion, whether another member of the organization could travel to San Francisco to bring a particular variety of fentanyl that another member forgot on his commute from the East Bay.
Papers filed in the case also describe the dangers of fentanyl in stark terms. Fentanyl is about 50 times stronger than heroin and about 100 times stronger than morphine. Further, according to the Centers of Disease Control and Prevention, two out of three of the 46,802 opioid overdose deaths in 2018 involved synthetic opioids such as fentanyl. In addition, the San Francisco Office of the Medical Examiner published data indicating that approximately 300 people in city of San Francisco died between January and August 2020 due to accidental overdoses from fentanyl. According to the DEA, two milligrams of fentanyl can be a fatal dose. In this case, the DTO allegedly sold approximately $45,000 worth of drugs to an undercover agent, including over 200 grams of powder fentanyl.
Court documents describe how federal investigators used a variety of tools including physical surveillance, undercover purchases, and interception of communications on cell phones used by Cruz, Leydis, and Carrero, to further the investigation. In one example of an October 2020 cell phone exchange between Mayorquin and Cruz, Mayorquin reported that another individual wanted to work for Cruz as a street-level dealer. Cruz responded that he could keep the person busy. During the same call, Cruz asked Mayorquin to lend him (Cruz) an ounce of yellow fentanyl for resale.
Court documents also describe how Mayer Benegas-Medina was arrested as part of the law enforcement operation that led to the indictment. Benegas was arrested in the Oakland residence where Ivan Mauro Mayorquin also was arrested. The indictment alleges Benegas used a cellular telephone to facilitate drug transactions.
In addition to the seven defendants in the indictment, Gustabo Alfonso Ramos, 22, was arrested in Oakland and charged in connection with a drug sale that occurred near the corner of Franklin Street and Golden Gate Avenue in San Francisco. According to the complaint, on October 8, 2020, Ramos distributed approximately four ounces of fentanyl in exchange for $4,000.
In sum, the defendants are charged with the crimes and face maximum penalties as indicted in the chart below:
Charges
Statute
Defendant(s)
Maximum Penalties
(per count)
Conspiracy to Distribute and Possess with Intent to Distribute Fentanyl
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(C)
All defendants
except Gustabo Alfonso Ramos
20 years in prison and a $1,000,000 fine
Distribution of Fentanyl
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Pamela Carrero (5 counts)
Leydis Yaneth Cruz
20 years in prison and a $1,000,000 fine
Distribution of 40 Grams or More of Fentanyl
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
Pamela Carrero
Leydis Yaneth Cruz
40 years in prison (maximum), a minimum of 5 years in prison, and a $5,000,000 fine
Distribution of 100 Grams or More of Heroin
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
Emilson Jonathan Cruz Mayorquin
40 years in prison (maximum), a minimum of 5 years in prison, and a $5,000,000 fine
Illegal Use of a Communication Facility
21 U.S.C. § 843(b)
Mayer Benegas-Medina
4 years in prison and a
$250,000 fine
Distribution of Fentanyl
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C)
Gustabo Ramos
20 years in prison and a $1,000,000 fine
An indictment and a criminal complaint merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. The court may order additional terms of supervised release and restitution, if appropriate; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are scheduled for court appearances as follows:
Defendant
Next Court Date
Emilson Cruz Mayorquin
December 21, 2020, at 10:30 a.m.
Leydis Yaneth Cruz
December 18, 2020, at 10:30 a.m.
Pamela Carrero
December 18, 2020, at 10:30 a.m.
Ivan Mauro Cruz Mayorquin
December 21, 2020, at 10:30 a.m.
Ana Maldonado
December 22, 2020, at 10:30 a.m.
Adonis Torres
December 17, 2020, at 10:30 a.m.
Mayer Benegas-Medina
December 17, 2020, at 10:30 a.m.
Gustabo Ramos
December 22, 2020 at 10:30 a.m.
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the DEA, HSI, the FBI, U.S. Customs and Border Patrol, the San Francisco Police Department, and the San Ramon Police Department.
This investigation and prosecution is part of OCDETF, which 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.
Drug Dealer Sentenced for Role in Fatal Fentanyl OverdoseRead the Press Release
ALEXANDRIA, Va. – A Clifton man was sentenced today to 28 months in prison for brokering a drug deal that resulted in a fatal overdose on fentanyl, a dangerous and potent synthetic opioid.
According to court documents, Tyler Lee Huston, 28, was a distributor of heroin and fentanyl, and had at least six customers in Northern Virginia. He bought drugs, both for redistribution and for personal use, from Peter Romm, a drug dealer in Reston. Huston profited by redistributing drugs from Romm at a markup. Huston also received free heroin or fentanyl from Romm for introducing customers to Romm and brokering drug transactions.
One such customer was N.G. On the night of Oct. 7, 2019, N.G. picked up Huston and drove to Romm’s residence, where Huston bought fentanyl from Romm to give to N.G. and to use himself. Later that night, N.G. consumed the fentanyl and fatally overdosed. The cause of N.G.’s death was ruled to be acute fentanyl poisoning.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh and Special Assistant U.S. Attorney Karolina Klyuchnikova 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. 1:20-cr-95.
Dominican National Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin trafficking.
Alexander Martinez-Peguero, 38, who previously resided in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and two years of supervised release. In January 2020, he pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin. In January 2019, Alexander was charged along with his brother, Angel Martinez-Peguero, 28, who pleaded guilty and is scheduled to be sentenced on Jan. 14, 2021.
On Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest. During a search of the Martinez-Peguero brother’s residence agents seized over $15,000 cash and $17,000 worth of jewelry.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Admits to Scheme to Defraud Individuals Seeking CitizenshipRead the Press Release
PROVIDENCE – A Central Falls resident, who immigrated to the United States from the Dominican Republic, has pleaded guilty in U.S. District Court in Providence to charges he defrauded people who had recently immigrated from the Dominican Republic by pocketing fees he told them that they had to pay when submitting their naturalization applications. He knew that their fees were waived but lied to them to take their money.
Bienvenido “Alex” Peralta Martinez, 30, admitted that he falsely told people who sought his assistance in the preparation and submission of naturalization applications that he was required to submit a fee along with the application when, in fact, he typed and signed his victims’ names on a form requesting that the fees be waived.
Peralta Martinez admitted that he demanded that payment for the fee be made in the form of money orders. The victims paid Martinez for the preparation of their naturalization applications, and then Martinez stole money from them by pocketing the proceeds of those money orders.
Appearing before U.S. District Court William E. Smith, Peralta Martinez pleaded guilty to three counts of mail fraud and three counts of aggravated identity theft, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge David Magdycz.
Peralta Martinez is scheduled to be sentenced on March 12, 2021.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by Homeland Security Investigations.
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Coffee County Man Sentenced to 63 Months for Possessing an Explosive DeviceRead the Press Release
Montgomery, Alabama – On Tuesday, December 15, 2020, Mitchell Byron Doster, a 44-year-old resident of Jack, Alabama, was sentenced to 63 months in prison for possession of an explosive device, announced United States Attorney Louis V. Franklin, Sr. In addition to his prison sentence, Doster was ordered to serve three years of supervised release. There is no parole in the federal system.
This case began in early 2019 when detectives from the Dale County and Barbour County Sheriff’s Offices were investigating a homicide. Investigators developed Doster as a possible suspect in the crime and eventually charged him with murder. On March 18, 2019, based on information obtained during the investigation, deputies retrieved a backpack and a duffel bag from a residence that they believed contained evidence in their murder case. When investigators searched the duffel bag, they discovered an improvised explosive device built from a modified training grenade that had been wrapped with metal shrapnel secured in place with tape. Local investigators requested assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to analyze the device. The ATF lab discovered a fingerprint on the tape used to make the bomb belonging to Bobby Wayne Williams, who was an acquaintance of Doster.
Both men were charged with possessing the explosive device and later pleaded guilty. Williams, who was also charged with being a felon in possession of a handgun from a previous encounter, was sentenced in May of this year to 63 months in prison. A final resolution of Doster’s state charges are pending.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Barbour County Sheriff’s Office, and the Dale County Sheriff’s Office, with assistance from the Montgomery County Sheriff’s Office. Assistant United States Attorney Russell Duraski prosecuted the case.
Chicago Man Sentenced to More Than Four Years in Federal Prison for Illegally Possessing Loaded Gun on Southwest SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than four years in federal prison for illegally possessing a loaded semi-automatic handgun in the city’s Chicago Lawn neighborhood.
LASHON NORFLEET, 43, illegally possessed the firearm in the 7100 block of South Albany Avenue on the evening of March 20, 2018. Chicago Police officers pulled over Norfleet’s vehicle because it had inoperable brake lights. Norfleet was unable to provide a valid driver’s license, and during further questioning the officers discovered the loaded gun in his waistband.
Norfleet had previously been convicted of multiple felonies, including two firearm-related offenses, and was not legally allowed to possess the gun.
Norfleet pleaded guilty last year to the federal charge of illegal possession of a firearm. U.S. District Judge Manish S. Shah on Tuesday imposed a 54-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance. The government was represented by Assistant U.S. Attorney Kalia Coleman.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Charlotte Man Is Charged for COVID-19 Relief Loan FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte returned a criminal indictment today charging Bryon Jones, 55, of Charlotte, with submitting a fraudulent loan application for COVID-19 economic assistance that resulted in the disbursement of $142,900 in federal emergency relief funds.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. Attorney Murray in making today’s announcement.
“At a time our nation is grappling with the effects of the coronavirus pandemic and businesses are struggling to cope with the impact of COVID, swindlers are seizing the opportunity to pilfer federal economic relief programs to line their own pockets,” said U.S. Attorney Murray. “My office is working hard to ferret out criminals who try to exploit the pandemic and steal funds intended for the economic recovery of businesses and communities across the Western District.”
“The United States Postal Inspection Service is committed to combatting fraud and the illegal use of our nation’s mail system,” said Inspector in Charge Coke. “During this tragic pandemic, our nation has shown great resolve and resiliency, evidenced by the majority of its great citizens. Unfortunately, we have also seen those that look to take advantage of these situations by fraudulently obtaining funds meant to help keep many of the small businesses in our local communities afloat. The United States Postal Inspection Service will use every resource available to bring justice to those that would take advantage of this pandemic for personal gain.”
According to allegations contained in the indictment, beginning in April 2020, Jones engaged in a scheme to fraudulently obtain disaster-related loan benefits in the form of an Economic Injury Disaster Loan (EIDL) sponsored by the United States Small Business Administration (SBA). This SBA program, expanded under the CARES Act, is designed to provide support for small businesses to remedy economic harm caused by the COVID-19 outbreak.
The indictment alleges that on or about April 16, 2020, Jones filed articles of incorporation in Delaware for Ramses Air Freight & Transport Inc. (“Ramses”), and listed his Charlotte home address as the business’s principal office. The indictment further alleges that Jones, who at the time was on federal supervised release for a previous felony conviction, submitted a loan application that contained false statements and misrepresentations regarding the company’s revenues, costs, and employees and his prior criminal record. The indictment also alleges that, as a result of the fraudulent application, Jones obtained $142,900 in proceeds in June and July 2020, which he used for personal and other unauthorized purposes.
A federal arrest warrant for Jones has been issued. He is charged with one count of wire fraud in relation to a disaster benefit, which carries a maximum prison term of 30 years and a $1,000,000 fine, one count of false statements to the SBA, which carries a maximum prison term of 30 years and a $1,000,000 fine, and one count of engaging in monetary transactions in criminally derived property, which carries a maximum prison term of 10 years.
The charges in the indictments are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the investigating efforts of the U.S. Postal Inspection Service.
Assistant United States Attorney Graham Billings, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Department of Justice and U.S. Attorney’s Offices across the country remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
California Woman Is 63rd Defendant Charged in Nationwide Telemarketing SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging CAROL ANN OLBERG, 46, with three counts wire fraud and violating the Senior Citizens Against Marketing Scams Act of 1994 (the “SCAMS Act”). OLBERG is the 63rd defendant charged to date as part of a nationwide telemarketing scheme that targeted elderly and vulnerable victims. OLBERG will make her initial appearance in U.S. District Court at a later date.
According to allegations in the indictments and documents filed with the court, from 2013 through 2020, OLBERG owned and operated Sun Coast Readers LLC, a California-based company involved in fraudulent magazine sales. OLBERG ran Sun Coast Readers from her home in Winchester, California. As part of the fraud scheme, OLBERG obtained lists of consumers who had active and ongoing magazine subscriptions through other companies. OLBERG knew that many of the consumers on these lists were elderly or otherwise susceptible to fraudulent and deceptive sales tactics. OLBERG used the information on these lists to fraudulently pose as the victim-consumers’ existing magazine provider, calling about an existing subscription. Using a series of knowing and deliberate lies and misrepresentations OLBERG signed the victim-consumers up for expensive magazine subscriptions or falsely claimed to be calling with an offer to renew the victim-consumer’s existing magazine subscription, often at a reduced cost. In reality, OLBERG and her company had no existing relationship with most of the victim-consumers and OLBERG was not calling about an existing magazine subscription. Instead she was calling to defraud them by tricking them into unwittingly signing up for entirely new magazine subscriptions.
According to allegations in the indictment and documents filed with the court, OLBERG also defrauded victim-consumers who had been previously defrauded by multiple magazine companies. These victim-consumers had been “sold” magazine subscriptions they did not want and did not knowingly sign up for. The victim-consumers were being billed by multiple other magazine sales companies—as many as a dozen magazine companies at a time. Many of these victim-consumers were elderly and otherwise vulnerable. They were desperate to cancel their magazines. As part of the fraud scheme, when victim-consumers said they did not want the magazines they were already receiving, OLBERG used a fraudulent “cancellation” pitch in which she fraudulently claimed that the victim-consumers owed a large outstanding balance for existing magazine subscriptions with their company. OLBERG then fraudulently offered to pay off that balance in exchange for a large lump-sum payment. In reality, the customers did not owe OLBERG or her company any money and OLBERG simply stole the money. During the course of the scheme, OLBERG defrauded more than 3,000 victims across the United States. Between 2013 and 2020, she received approximately $1.4 million from victims of her scheme.
This indictment is related to the cases United States v. Rahm, et al., 20-cr-232; United States v. Timmerman et al., 20-cr-233; United States v. Mathias et al., 20-cr-231; United States v. Dahl, 18-cr-305 and United States v. Oelrich, 20-cr-128.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
CAROL ANN OLBERG, 46
Winchester, Cali.
Charges:
- Wire fraud, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
California Man Sentenced to 53 Months for Illegally Possessing FirearmsRead the Press Release
ABINGDON, Va.- A California man, who had been on the run from law enforcement for five years before being found illegally possessing firearms last February, was sentenced this week to 53 months in federal prison, Acting United States Attorney Daniel P. Bubar announced today.
Zeafree Zekkariyas, 30, a.k.a. Jorden Johnson, pleaded guilty in August 2020 to one count of illegal possession of a firearm by a convicted felon.
According to court documents, on February 18, 2019 law enforcement was engaged in a manhunt for a suspect in an attempted-murder case not involving Zekkariyas. As part of that manhunt, officers conducted surveillance on an apartment in Bluefield, Virginia. Late on the night of February 18, 2020, an investigator with the Bluefield Police Department observed a male, who fit the description of the wanted suspect, exiting the apartment.
The man, later identified as Zekkariyas, left the scene in an unlicensed vehicle with no headlights. The investigator followed the car, found it parked at another resident, and knocked on the door. Once located inside, Zekkariyas admitted to law enforcement that the vehicle outside the residence was his, that he had driven there, and that he was wanted on an outstanding warrant. Zekkariyas, a felon, was taken into custody at that time on the outstanding warrant.
Officers obtained a search warrant for the car. Inside they recovered a .40 caliber magazine, a box of .410 shells, a .410 shotgun, a stolen AR15 rifle, AR15 ammunition, and other rounds of ammunition.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, the Bluefield Police Department, and the Virginia State Police. Assistant United States Attorneys Cagle Juhan and Whit D. Pierce prosecuted the case for the United States.
California Man Sentenced to 102 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saul Carrasco, age 36, of Simi Valley, California, was sentenced to 102 months’ imprisonment on December 15, 2020, by U.S. District Court Judge Malachy E. Mannion, for conspiring to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Carrasco previously pleaded guilty to participating in the conspiracy during July through November 2018. Carrasco admitted that he agreed with others to transport the heroin from California to Carbon County, Pennsylvania. Law enforcement officers seized two kilograms of heroin, which is approximately equivalent to 80,000 individual retail bags of heroin, from a vehicle Carrasco was traveling in.
The leader of the California based drug trafficking operation, Crispin Fernandez, another California resident, was previously sentenced to 13 years’ imprisonment. Judge Mannion also ordered Carrasco to serve five years on supervised release following his prison sentence.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Illinois State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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CBL/BFL Member Going to Prison for Violent AssaultRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Kareem Pryor, 30, of Buffalo, who was convicted of assault with a dangerous weapon in aid of racketeering, and possession with intent to distribute methamphetamine, was sentenced to serve 41 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Paul C. Parisi and Seth T. Molisani, who handled the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operated primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
On June 19, 2019, Pryor met up with Victim 1 on Genesee Street in Cheektowaga, while a co-defendant waited down the street. The co-defendant accused Victim 1 of killing a CBL/BFL member. The defendant and co-defendant then began punching Victim 1 and stomping Victim 1’s upper body and head onto the pavement. Pryor and the co-defendant then ran away. As a result of the assault, Victim 1 was treated at a hospital for a fractured shoulder bone and concussion. On September 12, 2019, the defendant possessed over 20 grams of methamphetamine pills in his apartment with the intent to distribute them.
Pryor is one of 16 members and associates of the CBL/BFL Gang charged in this investigation. He is the 14th to be sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief Mark Packard; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Buffalo Man Who Took Part in Drug-Related Murder Going to Prison for 20 Years for Drug TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Taire Chaney, 28, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute cocaine and crack cocaine, was sentenced to serve 20 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between 2008 and March 9, 2012, the defendant conspired with co-conspirator Tyshawn Bradley and others to sell cocaine and crack cocaine in and around the Perry Housing Projects in the City of Buffalo. The defendant admitted that Brad Daniels was murdered in 2012 as a result of this conspiracy.
Specifically, the evidence developed in the investigation revealed that in the summer of 2010, Chaney and Bradley perceived that a rival drug dealer was encroaching on their territory as the rival began selling crack cocaine in the Perry Projects. Bradley confronted that rival over territorial dispute. On July 29, 2010, an associate of Bradley was shot and killed on Perry Street, and Bradley believed that the death was the result of the feud with the rival drug dealer. In the following months, Chaney, Bradley, and another co-conspirator followed and shot at the rival drug dealer. On February 29, 2012, they saw the rival drug dealer riding in a Cadillac Escalade, which was driven by Brad Daniels. Chaney, Bradley and the co-conspirator followed the Escalade as it dropped off the rival drug dealer and continued driving. After the Escalade stopped on Bardol Street in Buffalo, Chaney, Bradley and the co-conspirator approached the car. Chaney shot a .45 caliber handgun multiple times through the driver’s side of the Escalade, while Bradley shot a .45 caliber handgun multiple times through the rear and passenger side of the Escalade. The co-conspirator discharged a 9mm semi-automatic handgun through the rear of the Escalade. Daniels, who was driving the Escalade, suffered three gunshot wounds, and died. The investigation determined that one of the shots fired by Chaney resulted in Daniels death.
Chaney was previously convicted of manslaughter in the death of Anthony Pitts in New York State Court in 2012 and sentenced to serve 25 years in prison. He will serve his federal sentence following the completion of his state sentence. Tyshawn Bradley was previously convicted and sentenced to serve 30 years in prison.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Bryan County man sentenced to federal prison for attempted coercion of a child for sexual activityRead the Press Release
SAVANNAH, GA: A Bryan County man who admitted attempting to coerce a child into sexual activity has been sentenced to 15 years in federal prison.
Michael Wilson, 38, of Richmond Hill, Ga., was sentenced to 180 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to Attempted Coercion of a Minor to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Wilson also is required to pay $100,000 each to two minor victims in restitution, and after completion of his prison term will be required to serve 15 years of supervised release and to register as a sex offender.
There is no parole in the federal system.
Wilson’s wife, Lori Wilson, a/k/a “Loretta Lightningbolt,” 35, of Richmond Hill, Ga., previously was sentenced to 70 months in prison after pleading guilty to Tampering with a Victim or Witness. While Michael Wilson was under investigation, Lori Wilson tried to persuade a victim to recant accusations that he attempted to coerce the minor to engage in illegal sexual activity from 2017 through early 2019.
“Victimization of vulnerable children rightly deserves harsh penalties, and we applaud our law enforcement partners for their difficult work in bringing this despicable pair to justice,” said U.S. Attorney Christine. “These horrific crimes have earned a significant sentence.”
Michael Wilson, an active duty member of the military, also is charged with seven violations of the Uniform Code of Military Justice, Article 120(b), Rape and Sexual Assault of a Child. These charges are pending and relate to multiple minor victims.
“This sentence wraps up a traumatic chapter in a young child’s life after being taken advantage of by an adult,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No matter how severe the sentence it will never wipe away the scars left on this innocent child, but it will hopefully send a deterrent message to anyone contemplating similar predatory activity.”
“This prison sentence punishes Wilson for his conduct and serves as a clear warning to those considering similar abhorrent conduct that Army CID, and our federal law enforcement partners will fully investigate such allegations and seek incarceration and restitution,” said Chris Grey, spokesman for Army Criminal Investigation Command.
The cases are being investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorneys Katelyn Semales and Jennifer G. Solari.
Boston Man Arrested on Federal Child Pornography ChargeRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with a child pornography offense.
Paul Fest, 50, was charged by criminal complaint with one count of possession of child pornography. Following an initial appearance yesterday before U.S. Magistrate Judge Donald L. Cabell, Fest was detained pending a probable cause and detention hearing scheduled for Dec. 18, 2020.
According to the charging documents, agents executed a search warrant at Fest’s Beacon Hill residence yesterday morning and seized a computer and multiple external storage devices. During the preliminary on-scene review of one thumb drive, nearly 100 videos of child pornography were discovered.
Due to his prior felony conviction, Fest faces a mandatory minimum sentence of 10 years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bergen County Man Admits Stealing Reimbursement Checks from Medical PracticeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted stealing health insurance reimbursement checks from a Hudson County medical practice for over four years, U.S. Attorney Craig Carpenito announced.
Nuno Fernandez, 38, of Wyckoff, New Jersey, pleaded guilty by videoconference before Senior U.S. District Judge Stanley R. Chesler to an information charging him with five counts of wire fraud.
According to documents filed in the case and statements made in court:
Fernandez was the office manager for a medical practice in North Bergen, New Jersey, where he handled and reconciled reimbursement checks that the practice received from health care benefit programs for medical services it provided. Starting in April 2012, Fernandez began stealing some of the checks by endorsing them in his own name and depositing them into his personal bank account using an application on his mobile telephone. No one at the medical practice authorized Fernandez to deposit the checks into his personal bank account. Fernandez continued to steal checks from the practice until March 2016. In total, Fernandez stole over $840,000.
Fernandez faces a maximum potential penalty of 20 years in prison on each count and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for April 20, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the Department of Labor—Office of the Inspector General and the National Insurance Crime Bureau for its assistance with the case.
The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit in Newark.
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Defense Counsel: Joseph Benedict Esq., New Brunswick, New Jersey
Bergen County Man Admits Stealing Millions of Dollars from Lenders and Corporations in Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he defrauded lenders and corporations of $4.9 million by impersonating two bank executives interested in funding syndicated loans for global companies, U.S. Attorney Craig Carpenito announced.
Matthew O’Callaghan, 43, of Upper Saddle River, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of wire fraud.According to the documents filed in this case and statements made in court:
From 2016 through 2019, O’Callaghan defrauded at least two global financial services groups and four global companies of millions of dollars by deceiving them into believing that “Bank A” was agreeing to commit funds to revolving credit facilities. He contacted the victim-lenders and victim-companies using the aliases “Edward Tierney” and “Michael Nash,” whom he falsely represented were executives at Bank A. O’Callaghan induced the victim-lenders and victim-companies into agreeing to pay Bank A to take on a commitment to fund revolving credit facilities.
O’Callaghan submitted numerous fraudulent documents to the victim-lenders and victim-companies that were designed to deceive them into believing that Nash and Tierney were legitimate representatives of Bank A, when in fact they were not. Specifically, O’Callaghan created email addresses to resemble legitimate Bank A email addresses, false email signature blocks for Tierney and Nash that bore the Bank A logo and listed the business address for Bank A, fraudulent wiring instructions bearing Bank A’s logo and address, and a tax form bearing a tax identification number for Bank A.
O’Callaghan directed the victim-lenders and victim-companies to wire funds to a bank account at Bank A that O’Callaghan controlled and then converted the money for personal expenses, the purchase of an automobile, gambling, travel, and payments to a private club.
The wire fraud charge to which O’Callaghan pleaded guilty carries a maximum of 20 years in prison and a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 28, 2021.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Ricardo Solano Jr. Esq., Newark
Arizona man sentenced to 37 months in federal prison for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Maroquez Clah, 29, an enrolled member of the Navajo Nation from Red Valley, Arizona, was sentenced in federal court on Dec. 15 to 37 months in prison for involuntary manslaughter. Clah was also ordered to pay restitution of $4,500.
Clah previously pleaded guilty to this offense on Sept. 21. In his plea agreement, Clah admitted that on Aug. 30, 2019, he was driving recklessly while under the influence of alcohol, which resulted in the death of the passenger in his vehicle. The single-car incident occurred on Navajo Route 13 in Red Valley.
The FBI and the Navajo Division of Public Safety investigated this case. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Aberdeen Man Sentenced for Being Felon in Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that an Aberdeen, South Dakota, man convicted of Felon in Possession of a Firearm as a result of a federal jury trial in Aberdeen, South Dakota, on October 13, 2020, was sentenced on December 15, 2020 by U.S. District Judge Charles B. Kornmann.
Darrell Two Hearts, age 41, was sentenced to 71 months in federal prison, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Two Hearts was indicted by a federal grand jury on July 20, 2020.
The conviction stemmed from an incident on or about April 25, 2020, when Two Hearts was arrested in Aberdeen. Officers had been searching for Two Hearts to arrest him on outstanding warrants. When they found him, Two Hearts had a loaded handgun in his backpack, along with syringes, a pot pipe, and a marijuana grinder. He also had a small amount of methamphetamine in his pants pocket. He had previously been convicted of felony crimes that prohibited him from possessing any firearms. At trial, a jury unanimously found that he illegally possessed a 9mm handgun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Aberdeen Police Department, the Brown County Sheriff's Office, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Two Hearts was immediately turned over to the custody of the U.S. Marshals Service.
24 charged in Toledo-area drug trafficking conspiracyRead the Press Release
Federal, state, county and local law enforcement today participated in a wide-ranging takedown operation of 24 individuals charged in a multiple count indictment filed in federal court. These defendants are accused of participating in a drug trafficking conspiracy that involved the use of a communications facility to facilitate a drug felony and the distribution of cocaine, cocaine base, and fentanyl in the Toledo area.
20 individuals were arrested during an early morning operation and transported to federal court in Toledo. The arrests were conducted by the FBI's Safe Streets Task Force, Toledo Metro Drug Task Force, the Northwest Ohio Interdiction Task Force and the USMS Fugitive Task Force. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.
U.S. Attorney Justin Herdman, FBI Special Agent in Charge Eric B. Smith and Toledo Police Chief George Kral made the announcement.
“Today’s arrests and indictment reflect the collaborative resolve of law enforcement in this region to continue our fight against drug trafficking in our neighborhoods,” said U.S. Attorney Justin Herdman. “To any trafficker, no matter how well connected or organized you think you are, know that if you continue to push drugs in our communities, you will eventually be caught and we will do everything we can to ensure that you go to federal prison.”
"These individuals are responsible for distributing dangerous illegal narcotics through our Toledo and surrounding communities, said FBI Special Agent in Charge Eric B. Smith. “Most often, as in this case, where there are illegal drugs, there are guns and violence. Law enforcement, with the publics’ assistance, has rid the streets of this violent drug trafficking organization."
“Through operations like this, law enforcement continues to target the criminals who wreak havoc in our community through the distribution of illegal and dangerous drugs,” said Toledo Police Chief George Kral. “I am grateful for the ongoing and continued relationship with our federal partners.”
Named in the indictment are Anthony Duff, age 44; Jackie Green, age 51; Anthony King, age 46; Antonio Mays, age 46; Antuan Wynn, age 45; Tomar Belcher, age 46; Ray Brown, age 37; Damian Dalton, age 46; Mark Humphrey, age 46; Kevion Jones, age 23; Kimberly Marshall, age 36; Orlando McCall, Sr., age 45; Jeremiah Mims, age 39; Marcus Odoms, age 43; Christopher Simpson, age 29; Daniel Ulis, Sr., age 46; Demetrius Wallace, Jr., age 20; Frederick Wilson, Jr., age 39; Kali Kowalski, age 34; Dawn Rahmstock, age 54; Briana Siler, age 24; Heidi Vaculik age 42; and Angela Whittecar, age 42 all of Toledo, Ohio, and Marquise Figures, age 35, of Wayne, Ohio.
According to the indictment, from December 2019 through the present day, the defendants are accused of conspiring together to distribute large quantities of fentanyl, crack cocaine and at least 5 kilograms of cocaine in the Toledo area and the use of a communications facility to facilitate a drug felony.
The conspirators are accused of using multiple cellular devices and code words to conceal their activity and various residences in the Toledo area to store, break down, package and distribute their narcotics and proceeds.
Defendants DUFF, KING, WYNN, MIMS and ULIS are all facing enhanced penalty charges due to previous felony convictions. In addition, defendant GREEN is charged with an additional account of being a felon in possession of a firearm.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including each defendant’s prior criminal record, if any, each defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI Safe Streets Task Force, Toledo Metro Drug Task Force and the Northwest Ohio Interdiction Task Force.
The FBI Safe Streets is comprised of the FBI, Toledo Police Department, Sylvania Township Police Department and the Oregon Police Department. The Toledo Metro Drug Task Force is comprised of the FBI, Toledo Police Department, Bureau of Criminal Investigations, Lucas County Sheriff’s Office, and ATF. The Northwest Ohio Interdiction Task Force is comprised of the FBI, Toledo Police Department, Lucas and Wood County Sheriff’s Offices.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being prosecuted by Assistant United States Attorneys Alissa M. Sterling and Robert Melching.
10 Defendants Arrested in Home-Health Aide Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging MARIANNA LEVIN, TETYANA GOLYAK, ELENA LOKSHIN, SVITLANA ROHULYA, MARINA ZAK, ALINA KUPTSOVA, MALIHA IJAZ, MAKHINBONU NARZULLAEVA, NATALYA SHVARTS, and INNA GEKELMAN with conspiracy to commit mail, wire and healthcare fraud; substantive counts of mail fraud, wire fraud, and healthcare fraud; and conspiracy to violate the Anti-Kickback Statute, in connection with a scheme to fraudulently bill Medicaid for home-health and personal-care services that were not actually rendered. The ten defendants were arrested earlier this morning and will be presented today before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court. The case has been assigned to United States District Judge John P. Cronan.
Manhattan Acting U.S. Attorney Audrey Strauss said: “These ten defendants allegedly attempted to swindle the managed healthcare system by billing for no-show cases, where aides provided no actual assistance to patients. Now more than ever, the Medicare system is critical for so many Americans who depend on its services for their well-being. Conduct such as the alleged scheme today not only beleaguers the healthcare system, it unfairly penalizes those who depend on it most – the patients.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Money that’s earmarked for Medicaid-approved services, and fraudulently paid out to those who don’t render these services, is a crime that’s ultimately paid for by taxpayers themselves. In this case, as we allege, there were even patients involved in the kickback scheme who were willing to play along with the no-show scam in order to earn a few extra bucks. With a nearly $5 billion increase in managed long-term care plan spending recorded over a recent six-year period, the money paid out to those charged today is no drop in the bucket.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
Since in or about 2015, the defendants have been engaged in a widespread fraud scheme through which the defendants defrauded Medicaid for home-health and personal-care services that were not actually rendered. At all times relevant to the Indictment, the defendants worked at or were otherwise associated with one of two affiliated licensed homecare service agencies based in Brooklyn, New York (“Agency-1”, “Agency-2”, collectively referred to as the “Agencies”), that provide home-health and personal-care services to patients residing in all five boroughs of New York City and Nassau County. Combined, the Agencies employed approximately 3,000 home-health and personal-care aides (the “Aides”). Most of the Aides were licensed to provide home-health aide services and personal-care services.
Home care is a health service provided in the patient’s home to promote, maintain, or restore health or lessen the effects of illness and disability. Home care includes personal-care services, administered by Aides, including housekeeping, meal preparation, bathing, toileting, and grooming.
At all times relevant to this Indictment, eligible Medicaid beneficiaries in New York were able to seek government-funded home-health and personal-care services through managed long-term care plans (“MLTCs”). In turn, MLTCs received Medicaid funding to pay for their beneficiaries’ home-health and personal-care services. In recent years, home-health costs in New York have ballooned. In or about January 2020, New York’s State budget director announced, in substance and in part, that spending on MLTCs tripled between the 2013 and 2019 fiscal years, representing a $4.8 billion increase.
The Agencies administer home-health and personal-care services to Medicaid beneficiaries enrolled in New York MLTCs. From in or about 2015 to in or about December 2020, Medicaid reimbursed the Agencies hundreds of millions of dollars for home-health and personal-care services. A significant portion of the Agencies’ billings were fraudulent. In particular, the Agencies billed Medicaid for “no-show” cases in which Aides claimed to be performing home-health or personal-care services when they were not. At times when Aides falsely claimed to be performing home-health or personal-care services, they in fact, stayed home, ran personal errands, vacationed, and socialized with family and friends. For example, on or about September 9, 2017, TETYANA GOLYAK was at a vineyard and winery in New Jersey at a time she claimed to be performing personal-care services for a patient residing in Brooklyn, New York; in or about January 2019, NATALYA SHVARTS was on a Caribbean cruise at a time she claimed to be performing personal-care services for a patient residing in Brooklyn, New York; and, on or about March 1, 2019, MALIHA IJAZ was at a Brooklyn restaurant at a time IJAZ claimed to be performing personal-care services. These no-show arrangements caused the Agencies to submit false Medicaid claims to MLTCs.
With no-show cases at the Agencies, an Aide’s fraudulently-obtained wages were often split between the no-show Aide and the no-show patient. In addition to paying kickbacks to no-show patients, no-show Aides sometimes paid kickbacks to conspirators who referred no-show cases to Aides at the Agencies.
The defendants are each charged with one count of conspiracy to commit mail, wire, and healthcare fraud, which carries a maximum sentence of 20 years in prison, one count of mail fraud, which carries a maximum sentence of 20 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of healthcare fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. The maximum potential sentences and minimum sentence in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
* * *
Ms. Strauss praised the outstanding investigative work of the New York FBI, New York City Police Department, and the Office of Medicaid Inspector General for New York State.
This case is being handled by the Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas Folly, Nicholas W. Chiuchiolo and Daniel G. Nessim are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
ROLE
RESIDENCE
MARIANNA LEVIN
47
Manager at Agency-1
Brooklyn
TETYANA GOLYAK
43
Director of Case Coordinators at Agency-1
Brooklyn
ELENA LOKSHIN
34
Director of Human Resources at Agency-1
Howell, NJ
SVITLANA ROHULYA
43
Case Coordinator and Supervisor of Case Coordinators at Agency-1
Brooklyn
MARINA ZAK
43
Case Coordinator and Supervisor at Agency-1 and Supervisor at Agency-2
Staten Island
ALINA KUPTSOVA
60
Case Coordinator at the Agencies
Avenel, NJ
MALIHA IJAZ
33
Intake Employee and Aide at Agency-1
Brooklyn
MAKHINBONU NARZULLAEVA
31
Case Coordinator and Aide at Agency-1
Brooklyn
NATALYA SHVARTS
51
Coordinator and Aide at Agency-1
Brooklyn
INNA GEKELMAN
70
Recruiter for Agency-1
Brooklyn
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
$113K Embezzlement Leads to Federal Prison Sentence for Former Metro East Elementary School PrincipalRead the Press Release
Smithton, Ill. – Roy Joseph Monti, 54, of St. Louis, Missouri, was sentenced last week to 6 months
in federal prison and 6 months of home detention. The former principal of St. John the Baptist
Elementary School in Smithton, Illinois, pleaded guilty back in September to one count of
interstate transportation of stolen money. He will serve an additional 18 months of supervised
release following his home confinement.According to court documents, from March 2017 to November 2019, Monti used his position as the
school’s principal to embezzle $113,061.87 from the school’s bank account. He attempted to cover up
the thefts by noting purportedly valid expenses on the withdrawal slips, which turned out to be
false and fraudulent. Because he lived in Missouri while working in Illinois, Monti often carried
large amounts of the stolen cash across state lines, which is a federal felony.As part of his sentence, the federal district court ordered Monti to make full restitution to the
school.The investigation was conducted by the FBI and the Smithton Police Department.
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Tuesday 15 December 2020
Wilcox Man Sentenced for Being an Unlawful Drug User in Possession of Stolen FirearmsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Braxton Dauphin Cook, 31, of Pine Hill, Alabama, was sentenced in federal court for being an unlawful drug user in possession of stolen firearms. Cook pleaded guilty to the charge in August 2020.
In connection with his guilty plea, Cook admitted that in the early morning hours of January 20, 2020, he burglarized a rural hunting camp in Arlington, Alabama and stole several firearms, cash, and an ATV. Later on the day of the burglary, law enforcement located Cook passed out in a pickup truck parked on the side of the road with the engine running. Investigators searched Cook’s person and found a loaded pistol that had been reported stolen from the hunting camp, as well as a syringe containing a liquid substance that Cook admitted was heroin. Inside the truck, investigators found six additional firearms that had been reported stolen from the hunting camp. Cook admitted that he had sold two firearms he stole from the hunting camp to a drug dealer and that he planned to take the other stolen items to another drug dealer. Cook estimated that he used heroin twice a day and admitted that he had used methamphetamine since 2010. Cook’s knowing unlawful use of and addiction to controlled substances rendered his possession of firearms illegal pursuant to 18 U.S.C. § 922(g)(3).
Chief United States District Court Judge Kristi K. DuBose imposed a sentence of 26 months’ incarceration. Following his incarceration, Cook will serve three years on supervised release. During that time, Cook will undergo testing and treatment for substance abuse. The court did not impose a fine, but the judge ordered Cook to pay a $100 special assessment.
This case was investigated by the Wilcox County Sheriff’s Office, the Marengo County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin Roller.
Walker County man faces child pornography and cyberstalking chargesRead the Press Release
HOUSTON – Authorities have arrested a 22-year-old Huntsville man for possessing and receiving child pornography as well as cyberstalking, announced U.S. Attorney Ryan K. Patrick.
Kody Nicholas Bohac is set to make his initial appearance before U.S. Magistrate Judge Frances Stacy Dec. 16 at 10 a.m.
The criminal complaint, filed yesterday under seal, alleges Bohac was involved in stalking a woman in another state over social media and threatening to post nude photographs of her on the internet if she did not contact him. The charges allege the images were posted on the internet after the woman did not respond to his threats.
According to the criminal complaint, law enforcement had executed a search warrant in connection with a related matter. At that time, they allegedly found images and videos of child pornography on his cell phone.
If convicted, Bohac faces up to 20 and five years in federal prison on the possession and receipt of child pornography charges, respectively. Federal cyberstalking carries a potential five-year prison sentence.
The FBI Houston Division - Bryan Resident Agency and FBI Philadelphia Division - State College Resident Agency conducted the investigation with the assistance of the Sam Houston State University Police Department.
Assistant U.S. Attorney Richard W. Bennett is prosecuting this case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Uvalde Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
In Del Rio today, a federal judge sentenced 21-year-old Uvalde resident Pedro Gonzalez, Jr. to 40 months in federal prison for possessing hundreds of images of child pornography, announced U.S. Attorney Gregg N. Sofer and Homeland Security Investigations (HSI) Deputy Special Agent in Charge Craig Larrabee, San Antonio Division.
In addition to the prison term, U.S. District Judge Kathleen Cardone ordered that Gonzalez be placed on supervised release for a period of 10 years after his incarceration.
According to court records, HSI agents executed a search warrant at the defendant’s residence on August 22, 2019. During the search, investigators seized items belonging to Gonzalez including a portable hard drive, PlayStation console, thumb drive, laptop computer, desktop computer and two cell phones. A forensic examination of the seized items revealed the presence of approximately 787 images and 26 videos of material depicting the sexual exploitation of minors. On March 19, 2020, Gonzalez pleaded guilty to one count of possession of child pornography.
“With ever increasing access to communication platforms, HSI must continue to stay a step ahead of those who exploit technology to facilitate some of the worst crimes in modern society. The defendant in this case, Pedro Gonzalez will serve the next three years in prison for his unfathomable acts,” said Deputy Special Agent in Charge, Craig Larrabee, HSI San Antonio. “HSI remains committed to working with our law enforcement partners to aggressively pursue those who victimize the most vulnerable members of our society, our children.”
HSI investigated this case with valuable assistance from the Uvalde County Sheriff’s Office, Texas Attorney General’s Office and National Center for Missing and Exploited Children (NCMEC). Assistant U.S. Attorneys Rex Beasley, Ben Tonkin and Sydni Connell prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney’s Office Recognizes Exceptional Law Enforcement Work at its Annual Law Enforcement Awards CeremonyRead the Press Release
On December 15, 2020, the U.S. Attorney’s Office for the District of Vermont (USAO) honored a number of individuals from a variety of law enforcement agencies at the USAO’s third annual Law Enforcement Awards Ceremony. This year, the ceremony was hosted virtually, due to the pandemic, and invitations were limited due to the constraints of the virtual platform for the ceremony. Individual investigators and officers were nominated by USAO staff in a variety of categories for their outstanding work supporting the mission of this office and promoting public safety. Award recipients from Vermont hailed from federal, state, and local agencies. Federal and local law enforcement from Massachusetts and a civilian from New Hampshire were also honored for their outstanding contributions to the work of the USAO. The specific categories and individuals recognized today are as follows:
U.S. Attorney Award
(recognizes one whose professional excellence advances the mission of the USAO)Resident Agent in Charge Brian Sultzbaugh, Department of State, Diplomatic Security Service
Investigative Achievement Award
(recognizes those who have substantially contributed to the mission of the USAO)Special Agent Tam Vieth, ATF
Special Agent Matthew Ekstrom, ATF
Special Agent Mark Persson, DEA
(United States v. McCray, Cargo, Johnson, Raduechel)Dwayne Mellis, DEA Task Force Officer (Burlington PD)
(United States v. Shores)Special Agent Jamie Pillsbury, HSI
Det. Sgt. Christopher Lora, Vermont State Police
Sgt. Ryan Wood, Vermont State Police
Det. Trp. Andrew Todd, Vermont State Police
Det. Trp. Sean Reilly, Vermont State Police
(United States v. Davila)
Victim Service Award
(honors those who have provided extraordinary assistance to victims of a federal crime)Special Agent Timothy O’Leary, HSI
(United States v. Walker, Smith, Bowie, Bernard and Carter)Special Agent Patrick Hanna, FBI
(United States v. Dwyer)
Meritorious Public Service Award
(award recipients are those who render praiseworthy service to the District of Vermont)The Vermont Intelligence Center- LT. Shawn Loan, Director
Justin Goulet
(Face of Recovery)
Investigative Excellence Award
(recognizes those whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal conspiracy or other criminal acts)Special Agent Caitlin Moynihan, HSI
Special Agent Michael McCullagh, HSI
(Collective Body of Work)
Outstanding Collaborative Investigation Award
(recognizes those who have demonstrated outstanding efforts or overcome significant challenges in collaboration with multiple agencies in order to advance the mission of the USAO)Detective Sergeant Wade Cochran, Montpelier PD
Detective Sergeant Karl Gardner, Vermont State Police
Special Agent Jamie Pillsbury, HSI
Special Agent Colin Simons, FBI
Special Agent Carl William Ruprecht IV, FBI
Detective Will Delgado, FBI Task Force Officer (Holyoke PD)
Detective Tony Brach, FBI Task Force Officer (Holyoke, PD)
(United States v. Rodriguez)Special Agent Scott Murray, ATF
Corporal Trevor Sargent, St. Albans PD
(United States v. Guerrero and Medina)
Each recipient received an award letter from U.S. Attorney Christina Nolan, as well as an engraved award commemorating their outstanding efforts. Award recipients appeared virtually, joined by colleagues and family for today’s ceremony. U.S. Attorney Nolan congratulated the award recipients. She stated: “We at the U.S. Attorney’s Office are thrilled to be hosting our third annual Law Enforcement Awards Ceremony. We intend that this event become a time-honored tradition of the U.S. Attorney’s Office. We owe an enormous debt of gratitude to our law enforcement partners, who support and make possible the important case work we do at the U.S. Attorney’s Office. They make decisions every day to stand on the front lines of our campaigns to combat dangerous crime, and as essential workers, they and their families take on the additional serious risks associated with the pandemic. We thank them and their families for their sacrifices. We cannot overstate our support and appreciation for our police officers, and we are proud to recognize and celebrate their outstanding achievements at this awards ceremony.”U.S. Attorney Nolan awarded Justin Goulet the Meritorious Public Service Award. Goulet’s struggle with addiction and his recovery were detailed in a short documentary film Face of Recovery, a project spearheaded by the U.S. Attorney’s Office. This film has been presented across the state promoting drug treatment and prevention. Goulet is the first civilian to receive this award.
U.S. Attorney Cody Hiland Announces Departure of Veteran Department Employee, Assistant U.S. Attorney Michael JohnsonRead the Press Release
LITTLE ROCK— Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced the departure of Assistant United States Attorney Michael Johnson from service to the Eastern District of Arkansas U.S. Attorney’s Office today.
Mr. Johnson previously retired in 2010 after serving the Department of Justice continuously for 37 years. However, in 2018, after determining that the office could benefit from Mr. Johnson’s expertise related to prosecuting racketeering, white collar and public corruption offenses, U.S. Attorney Hiland asked Mr. Johnson to return to the office for a two-year term to guide and train career prosecutors related to that expertise. Mr. Johnson agreed to do so and has provided a great public service to the office during these past two years.
During his previous tenure with the office, Mr. Johnson developed an expertise in the investigation and prosecution of public corruption, white collar crime and racketeering offenses. Mr. Johnson was the architect behind seventeen racketeering cases including the prosecution of former Arkansas Legislator Nick Wilson; former Sheriff Cooledge Conlee; former prosecuting attorneys T.J. Hively and Dan Harmon; the prosecution of white supremacists Chevy Kehoe and Danny Lee; Bruce Nabors and Craig Keltnor; Don Pennington; Ron O’Neal and others. During his current two year association with the office, Mr. Johnson was extensively involved in the investigation and indictment of a case involving a multi-million dollar scheme to defraud the federal government.
Mr. Johnson graduated Phi Beta Kappa from Washington State University and received his J.D. with Honors from the University of Washington in Seattle, Washington. He then began his storied career with the Department of Justice, where he served as a trial attorney and senior trial attorney in the Civil Rights Division at the Department of Justice from 1973 through 1984. During that time, he investigated and prosecuted criminal cases involving racially motivated violence and criminal police misconduct. He was also responsible for civil litigation involving complex enforcement of voting rights cases pursuant to the Voting Rights Act of 1965 and discrimination in places of public accommodation.
In 1984, Mr. Johnson was the 34th person in the history of the U.S. Department of Justice named as Senior Litigation Counsel, a meritorious designation reflecting his advocacy skills in complex litigation. That same year, Mr. Johnson became an Assistant U.S. Attorney in the Eastern District of Arkansas, where he served as the Senior Litigation Counsel until becoming the Criminal Chief and First Assistant U.S. Attorney from 1993 until 2000. After the departure of U.S. Attorney Paula Casey in 2001, he served the office as Acting U.S. Attorney until the appointment of U.S. Attorney Bud Cummins in December of 2001.
From August 2003 through October 2004, Mr. Johnson was on assignment to the Republic of South Africa, where he was responsible for overseeing the development of organized crime and racketeering prosecutions. Since 2004, Mr. Johnson has returned to South Africa on a regular basis to continue his work with the South African government as a legal advisor on organized crime and racketeering matters, including conducting three Judicial Colloquiums for trial court and appellate court judges on the principles of racketeering and money laundering.
In 2004, he returned to his role as a line prosecutor with the Eastern District of Arkansas until 2007, when he became the Senior Legal Advisor to Acting U.S. Attorney Jane Duke. He retired from the Department in 2010 and began devoting his full attention to teaching others.
In addition to his public service as a career prosecutor, beginning in 1985, Mr. Johnson served as an adjunct professor at the William H. Bowen School of Law at the University of Arkansas in Little Rock, where he taught Evidence, Criminal Law, White Collar Crime, Trial Advocacy and Advanced Trial Advocacy. He also coached the National Trial Advocacy Competition Team.
In August 2010, he became Counsel for National Programs for the National Center of Justice and the Rule of Law (NCJRL) and Visiting Professor at the University of Mississippi Lamar School of Law. He designed and taught seminars on Fourth Amendment and trial issues to judges and taught White Collar Crime at the Bowen School of Law.
In 1987, Mr. Johnson became a faculty member for National Institute of Trial Advocacy and continues to teach there. In 2010, he became the Program Director for the National Session in Louisville, Colorado, and has served as Team Leader, Assistant Team Leader, and faculty member for the National Session on numerous occasions. He has also served as Team Leader, Assistant Team Leader and faculty member for the Southern Regional in Dallas, Texas; the North Central Regional in Minneapolis-St. Paul, Minnesota; the Western Regional in San Francisco, California; the Northwest Regional in Seattle, Washington; and programs in Dublin, Ireland and Edinburgh, Scotland.
Mr. Johnson has also been the Program Director and faculty member for numerous in-house custom programs for both public agencies and private firms. He has also been a core faculty member for NITA’s on-line deposition training program. He participated as a faculty member in the pilot on-line program for the Exceptional Advocacy Training Program conducted by NITA January-April 2010.
During Mr. Johnson’s time with the Department of Justice, he has received the following awards from the Department: Award for Outstanding Litigation of Complex Financial Crime; Commendation by the Attorney General; Appreciation by the Attorney General; Commendation by Assistant Attorney General; Appreciation by Assistant Attorney General; Special Achievement, Special Commendation and Appreciation by the Attorney General’s Advocacy Institute, the United States Attorneys for the Eastern District of Arkansas, the Eastern District of Louisiana, and the Middle District of North Carolina.
He has also received achievement awards from the Federal Bureau of Investigation; Drug Enforcement Administration; United States Customs Service; United States Secret Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Postal Inspection Service; and the Internal Revenue Service. These awards include Exceptional Service in the Public Interest, Special Recognition, Outstanding Achievement, Outstanding Prosecution, and Certificates of Appreciation.
His other commendations include appreciation awards for Service as United States Attorney, United States District Court for the Eastern District of Arkansas; Service as Intermittent Legal Advisor to the Republic of South Africa, Office of Overseas Prosecution and Development, United States Department of Justice; Service as Legal Advisor to South African Police Service, South African Police Service; and the Arkansas Fair Housing Commission.
U.S. Attorney Hiland would like to recognize Mr. Johnson for his distinguished and accomplished career of public service to the Department of Justice, and for his commitment to justice and the people of the Eastern District of Arkansas.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Two area home health agency owners charged in health care fraud and illegal kickback schemeRead the Press Release
HOUSTON - Two home health agency owners are set to appear in federal court on charges they fraudulently billed more than $10 million to Medicare, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Tataw Charlz Bisong and Angela Bisong, both 57 and from Stafford, today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy at 2 p.m.
A federal grand jury in Houston returned the indictment under seal Dec. 9, which was unsealed today. It alleges the Bisongs co-owned SierCam Healthcare Services LLC. From 2012 through 2020, SierCam allegedly billed Medicare for home health services that were not medically necessary and often not provided as billed to Medicare. The charges allege the Bisongs paid SierCam patients to sign up for medically unnecessary home health services and provided free transportation and covered the copayments and other fees at doctor’s office visits to facilitate their health care fraud scheme. Additionally, the Bisongs created phony medical records to make it appear the services met Medicare’s criteria for reimbursement, according to the indictment.
Charlz and Angela Bisong are both charged with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay and receive health care kickbacks.
Conspiracy to commit health care fraud and each of the six counts of health care fraud carry a maximum sentence of 10 years in federal prison and a maximum $250,000 possible fine, upon conviction. If convicted of conspiracy to pay and receive health care kickbacks, they also face up to five years in federal prison and a possible $25,000 maximum fine.
The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. The Stafford and Sugar Land Police Departments assisted in the arrests. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Individuals Charged with Conspiracy to Commit Health Care Fraud and Money LaunderingRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that, DONALD PETER AUZINE, JR. (AUZINE), age 50, a resident of Baton Rouge, Louisiana, and BONNIE JEAN LAWLESS DIAZ (DIAZ), age 45, a resident of Slidell, Louisiana, were charged on December 11, 2020 with conspiracy to commit health care fraud and money laundering.
According to the Indictment, Prime Pharmacy Solutions (“Prime”), was located in Slidell, Louisiana. Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families.
Between 2014 – 2016, AUZINE, DIAZ, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications. The scheme involved defrauding TRICARE of approximately $16 million dollars.
If convicted, each defendant faces a possible maximum sentence of ten years’ imprisonment, up to three years of supervised release, a $250,000 fine, and a mandatory $100 special assessment fee per count.
The case is being investigated by the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The United States Attorney’s Office, Eastern District of Louisiana stated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt. The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.
Three Men and Two Women Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that five defendants convicted of Conspiracy to Distribute a Controlled Substance, have been sentenced to federal prison terms by U.S. District Judge Karen E. Schreier.
Luis Padilla-Ambriz, a/k/a Jose Ramirez, age 24, from Glendale, AZ, was sentenced on December 14, 2020, to 210 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kevin Lee Jenson, age 32, from Carver, MN, was sentenced on June 17, 2019, to 235 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Heidi Ann Austin, age 39, from Rice, MN, was sentenced on June 6, 2019, to 188 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Anthony Lovell Laws, Jr., age 39, from Buckeye, AZ, was sentenced on September 23, 2019, to 46 months of federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Erin M. Hinkle, age 35, from Huntington Beach, California was sentenced on May 11, 2020, to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jenson, Austin, Padilla-Ambriz, Laws, and Hinkle were indicted by a federal grand jury on February 5, 2019. Jenson pled guilty on April 3, 2019, Austin pled guilty on March 25, 2019, Padilla-Ambriz pled guilty on September 23, 2020, Laws pled guilty on July 1, 2019, and Hinkle pled guilty on January 6, 2020.
Beginning on an unknown date, until on or about February 5, 2019, in the District of South Dakota, all defendants, knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to intentionally distribute 500 grams or more of a mixture and substance containing methamphetamine. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the U.S. Postal Inspection Service, the Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Central Minnesota Violent Offender Task Force, the South Dakota Division of Criminal Investigation, the Lakes to River Drug Task Force, and the Homeland Security Investigations. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
All defendants were immediately turned over to the custody of the U.S. Marshals Service following their sentencing.
Statement from Assistant Attorney General Eric S. Dreiband on Supreme Court's Order in Favor of Colorado Church that Challenged COVID RestrictionsRead the Press Release
Assistant Attorney General for the Civil Rights Division, Eric S. Dreiband, issued the following statement:
“Today’s decision by the U.S. Supreme Court in High Plains Harvest Church v. Polis and other recent decisions make abundantly clear that religious liberty is not a second-class right. There is no pandemic exception to the United States Constitution and its Bill of Rights. This should be obvious to public officials because the First and Fourteenth Amendments to the Constitution make it illegal for any government in this country to make any law that prohibits the free exercise of religion. Colorado’s decision to treat religion and houses of worship less favorably than marijuana dispensaries, laundromats, and other nonreligious activities is illegal and suggests a lack of respect or understanding about our Constitution. When states ease COVID-19 restrictions for other fundamental rights or economic activities, they must extend at least the same treatment to places of worship. The Constitution demands no less.”
Background
The United States filed a Statement of Interest supporting the church in the case, High Plains Harvest Church v. Polis, on May 29, 2020. The federal District Court for Colorado had denied an injunction on Aug. 10, 2020 to the church, High Plains Harvest Church, and the federal Court of Appeals for the Tenth Circuit had upheld that ruling. The U.S. Supreme Court decision nullified those decisions and called on the Court of Appeals to reconsider the case in light of the Supreme Court’s decision on November 25 in Diocese of Brooklyn v. Cuomo, which held that New York’s restrictions of places of worship to 10 or 25 people depending on the zone violated the Free Exercise Clause of the Constitution.
The department’s press release on its previous statement of interest in this case can be found here: https://www.justice.gov/opa/pr/department-justice-files-statement-interest-support-freedom-religion-colorado-church
The United Sates’ Statement of Interest was part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
St. Francis Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on December 14, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Michael T. Farmer, age 29, was sentenced to 36 months in federal prison, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Farmer was indicted by a federal grand jury on November 13, 2019. He pled guilty on September 21, 2020.
The conviction stemmed from an incident that occurred October 8, 2019, in St. Francis. On that date, Farmer assaulted his girlfriend by grabbing her and put her in a headlock her until she began to lose consciousness.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
South Carolina Man Sentenced to 20 Years in Federal Prison for Trafficking Methamphetamine at Eagle Pass Port of EntryRead the Press Release
In Del Rio, a federal judge sentenced 35-year-old Jacob Floyd Bailey to 20 years in federal prison for trafficking in methamphetamine, announced U.S. Attorney Gregg N. Sofer; Homeland Security Investigations (HSI) Deputy Special Agent in Charge Craig Larrabee, San Antonio Division; and U.S. Customs and Border Protection (USCBP) Eagle Pass Port Director Paul Del Rincon.
During Monday afternoon’s hearing, U.S. District Judge David C. Guaderrama also sentenced Bailey to a term of five years on supervised release after his incarceration.
According to Court records, on July 29, 2019, Bailey, a South Carolina resident, entered the U.S. by vehicle from Mexico through the port of entry at the Eagle Pass Bridge II. During secondary inspection of the vehicle, a U.S. Customs and Border Patrol Officer discovered seven plastic bladders containing over 70 kilograms of liquid methamphetamine in the vehicle’s gas tank. Bailey admitted to the agents he was aware there was an illegal drug concealed in the gas tank. Later investigation revealed the liquid methamphetamine was destined for Atlanta.
On January 10, 2020, Bailey pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
“Thanks to the efforts of U.S. Customs and Border Protection, more than 140 pounds of liquid poison was intercepted before it made its way to Atlanta,” said U.S. Attorney Sofer. “We must continue to vigilantly guard our southern border and do our best to prevent criminal cartels from trafficking methamphetamine and other toxic addictive substances into our country for profit.”
Also arrested with Bailey was 30-year-old Tarina Marie Timms of South Carolina. On January 17, 2020, Timms pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Timms is scheduled to be sentenced on January 11, 2021, before U.S. District Judge Guaderrama.
Both Bailey and Timms have been in federal custody since their arrests on July 29, 2019.
“Methamphetamine is a vicious drug that destroys lives, devastates our communities and compromises the public’s safety,” said Deputy Special Agent in Charge Craig Larrabee, HSI San Antonio. “The sentence in this case is fitting of the serious crime committed by this defendant. HSI along with our law enforcement partners will continue to seek out and bring justice to those involved in the illicit drug trade.”
HSI and USCBP agents investigated this case. Assistant U.S. Attorney Sydni Connell prosecuted this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.Selma Resident Convicted at Trial for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that on December 3, 2020, a federal jury in Mobile, Alabama found defendant Daniel Marcellas Houston, 45, of Selma, Alabama, guilty for being a felon in possession of a firearm. United States District Judge Jeffrey U. Beaverstock presided over the trial, which started on December 2, 2020 and ended the following day. Houston is scheduled to be sentenced on March 8, 2021. He faces a maximum sentence of 10 years in prison.
On January 30, 2020, a federal grand jury for the Southern District of Alabama indicted Houston on one count of being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). Federal law prohibits convicted felons from knowingly possessing a firearm or ammunition.
The jury heard the below evidence at Houston’s trial. The evening of October 2, 2019, investigators from numerous law enforcement agencies in the Selma, Alabama area were searching for several juvenile inmates who had escaped from the Dallas County Jail. Dallas County Sheriff’s Department Captain Johnathan Cole was driving on Highway 14 near the jail looking for the escapees when he saw a red Mazda truck parked near the middle of the highway at the intersection of Highway 14 East and Race Street. Concerned that the truck was impeding traffic, Cole activated his lights to initiate a traffic stop. The Mazda truck drove a short distance to a nearby driveway and pulled over. Houston, a convicted felon, was the truck’s driver and sole occupant.
Cole asked Houston for his identification and registration. Houston had neither and gave his name with a muffled voice. Cole asked Houston to open his mouth, from which Houston pulled out a bag of marijuana. Cole ordered Houston to place the marijuana on top of the truck and then asked Houston whether he had any weapons in his vehicle. Houston said, “Yes, it is right here” and motioned to the center console area immediately adjacent to where he was sitting.
Alabama Attorney General’s Office Special Agent Susan Smith arrived on scene to assist Cole and approached the passenger side of Houston’s truck. For officer safety, Cole and Smith repeatedly instructed Houston not to reach for the weapon. When it appeared that Houston might not comply, Smith asked Houston whether she could retrieve the gun instead. Houston indicated yes. Smith reached across the passenger seat and recovered a loaded Taurus 9mm pistol from the center console area.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dallas County Sheriff’s Department, and the Alabama Attorney General’s Office investigated the case. Assistant United States Attorneys Sinan Kalayoglu and Andrew D. Arrington are prosecuting the case.
Santa Ana Police Officer Agrees to Plead Guilty to Bribery ChargeRead the Press Release
SANTA ANA, California – A Santa Ana Police officer was charged today with accepting $128,000 in bribes from a crime figure seeking to thwart law enforcement activities against his illegally operating businesses.
Steven Lopez, 28, of Chino, was charged with bribery in a single-count information filed today in United States District Court. In a plea agreement also filed today, Lopez agreed to plead guilty to this felony offense. Lopez is expected to plead guilty to the offense in United States District Court in the coming weeks.
According to his plea agreement, Lopez served as a police officer with the Santa Ana Police Department (SAPD) from April 2016 to November 2020. From August 2019 until November 2020, Lopez received approximately $128,000 in bribes from an individual – named in court documents as “Co-Schemer 1” – seeking to influence Lopez in the performance of his official duties as a police officer, the plea agreement states.
Lopez admitted that he agreed to prevent or stop law enforcement compliance checks at businesses illegally operating under Co-Schemer 1’s control, law enforcement efforts to shut down those businesses, and law enforcement searches and seizures at those illegally operated businesses.
In August 2020, Lopez accepted $16,000 in bribes from Co-Schemer 1, the plea agreement states. Lopez further admitted that in September 2020 he solicited a bribe payment of at least $5,000 from Co-Schemer 1, who met Lopez – who was on duty and wearing his police uniform – during the late evening of September 14, on the top floor of a parking structure located directly across the street from SAPD headquarters. During this meeting, Lopez accepted Co-Schemer 1’s bribe payment, according to the plea agreement.
On the evening of November 2, Lopez – once again on duty, wearing his police uniform and driving an SAPD-marked vehicle – met Co-Schemer 1 at the corner of First and Fairview streets in Santa Ana, and accepted a $2,500 bribe payment.
Upon entering his guilty plea, Lopez will face a statutory maximum sentence of 10 years in federal prison.
This matter was investigated by the FBI, IRS Criminal Investigation, the United States Postal Inspection Service, the California Department of Justice, and the Santa Ana Police Department.
This case is being prosecuted by Assistant United States Attorneys Daniel H. Ahn and Daniel S. Lim of the Santa Ana Branch Office. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section provided substantial assistance in this matter.