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10 February 2021
North Country Man Sentenced to 60 Months on Drug Distribution ConvictionRead the Press Release
ALBANY, NEW YORK – Terry Thomas, age 33, of Hogansburg, New York, was sentenced today to 60 months in prison for possessing and intending to distribute a large amount of marijuana in Clinton County.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Thomas admitted that on May 16, 2019, he transported 12 hockey bags containing 337 pounds of marijuana with the intent to distribute the drugs in the Northern District of New York. Thomas admitted that he was heading south on Interstate 87 near Plattsburgh, New York, when he was pulled over by police. Thomas admitted that he had the hockey bags in the rear of his truck, and the bags were full of multiple vacuum-sealed plastic bags of marijuana, totaling 337 pounds.
Senior United States District Judge Gary L. Sharpe also imposed a 4-year term of supervised release, to begin after Thomas’s release from prison.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Troy Anderson.
New York City Department of Buildings Inspector Charged in Queens Bribery SchemeRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging New York City Department of Buildings (DOB) Inspector Francesco Ginestri with solicitation and receipt of a bribe in exchange for his agreement to ensure that DOB would not issue a fine in connection with a stop work order. Ginestri was arrested this morning and made his initial appearance via videoconference this afternoon before United States Magistrate Lois Bloom. The defendant was released on a $150,000 bond.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the arrest and charge.
“As alleged, Ginestri, a buildings inspector who was entrusted with protecting public safety at city construction sites, instead exploited his position to line his pockets with a cash bribe,” stated Acting United States Attorney DuCharme. “This Office will vigorously prosecute those who would betray their public trust for personal gain.”
Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, U.S. Department of Labor, Office of Inspector General, and the New York City Department of Investigation, for their exemplary work on the case.
According to the complaint, on July 31, 2020, Ginestri re-inspected a construction site in Flushing, New York, after a stop work order was issued for safety violations earlier in the month. After learning that construction had continued during the pendency of the stop work order, Ginestri solicited a $1,200 cash bribe from an employee of the construction company in exchange for the defendant’s agreement to ensure that DOB would not issue a $25,000 fine to the company. In August 2020, an employee of the construction company met Ginestri at a bakery and provided him with the $1,200 bribe payment. The meeting was recorded under the supervision of federal law enforcement agents.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of five years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Tanya Hajjar and Alicia N. Washington are in charge of the prosecution.
The Defendant:
FRANCESCO GINESTRI
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 21-MJ-169
New Hampshire Man Convicted of Interstate Stalking and Domestic Violence ChargesRead the Press Release
PORTLAND, Maine: A Somersworth, New Hampshire man pleaded guilty today in federal court to stalking and traveling interstate to violate a protection order, U.S. Attorney Halsey B. Frank announced.
According to court documents, in June 2020, Lawrence Keenan IV, 30, began sending harassing text messages to a former girlfriend and her family in an effort to reconcile. When the victim, who resided in South Berwick, Maine at the time, refused to respond, Keenan also sent threatening messages to the victim and her former husband, which caused them both emotional distress. The victim then obtained a temporary protection order from the Maine District Court in York. The order prohibited Keenan from contacting the victim or entering her residence, which Keenan later did, resulting in his arrest. The temporary order was later made final by the Maine District Court. Keenan was released on bail with a new condition that he not return to South Berwick.
In late June 2020, Keenan left approximately 23 harassing and threatening voicemails for the victim in violation of the final protection order and state bail conditions. In the last message, Keenan warned the victim that he was on his way to her residence. Keenan drove from New Hampshire to Maine with the intent to violate the protection order. In the early morning of June 29, 2020, the South Berwick Police responded to a 911 call and found Keenan inside the porch of the victim’s residence. She was not home at the time.
Keenan faces up to five years in prison and a fine of up to $250,000 on each charge. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The South Berwick, Maine and Somersworth, New Hampshire police departments; the York County District Attorney’s Office; and the FBI investigated the case.
This case was 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.
Natick Man Charged with Fentanyl, Methamphetamine and Heroin Trafficking and Drug Distribution Resulting in DeathRead the Press Release
BOSTON – A Natick man was charged in a superseding indictment today in connection with fentanyl trafficking resulting in the death of a 24-year old woman in Natick in November 2019.
Rafael Ashworth, 27, was charged in a superseding indictment on one count of distribution of and possession with intent to distribute fentanyl resulting in death and one count of possession with intent to distribute 40 grams or more of fentanyl, 50 grams or more of methamphetamine and heroin. Ashworth was initially indicted on Dec. 18, 2019. He was arrested by state authorities on Nov. 17, 2019 and has been in custody since.
According to court documents, after responding to a report of an overdose death at Ashworth’s apartment, police found Ashworth with approximately 100 grams of a substance containing fentanyl, methamphetamine, and heroin along with other paraphernalia associated with drug packaging and distribution. Police also found a deceased woman in the apartment, who is believed to have died from a fentanyl overdose.
The charge of possession with intent to distribute more than 40 grams of fentanyl, 50 grams or more of methamphetamine, and heroin carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of distribution of and possession with intent to distribute fentanyl resulting in death carries a mandatory minimum sentence of 20 years and up to life in prison, at least three years of supervised release and a fine of up to $1 million. 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Special assistance was provided by the Natick Police Department and the Massachusetts State Police. Assistant U.S. Attorneys Leah Foley and Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mother & daughter sentenced for income tax evasion of more than $3.7 millionRead the Press Release
COLUMBUS, Ohio – Theresa R, Gregory, 67, of Mount Vernon, Ohio, was sentenced to 36 months of imprisonment for evading the assessment and payment of incomes taxes due to the Internal Revenue Service (IRS). Gregory pleaded guilty to the aforementioned charges on Aug. 28, 2020.
Tera L. Gore, 44, of Croton, Ohio was sentenced to six months of imprisonment to be followed by 12 months of home confinement on the same charges. Gore also pleaded guilty on Aug. 28, 2020.
As part of their sentences, Gregory and Gore were ordered to pay $3.3 million in restitution. Gregory was also ordered to pay a $20,000 fine.
According to court documents, between January 2008 and December 2017, Theresa Gregory and her daughter, Tera Gore, evaded the assessment and payment of income taxes owed to the IRS by Gregory. As Gregory earned millions of dollars annually, Gregory and Gore worked together to hide Gregory’s income and assets. They also falsified documents to help Gregory purchase a second home in Florida, including a bank statement that claimed a bank account held nearly $2 million more than it actually held.
Since the 1990’s, Gregory has earned income from multi-level marketing companies. As a distributor, Gregory earned commissions and bonuses based on the volume of products she sold, as well as the volume of products sold by other individual’s she recruited to be part of her distributor network. By 2012, Gregory's annual income exceeded $900,000. In each subsequent year, Gregory's annual income exceeded $1 million, and in at least one year exceeded $4.5 million. Between January 2009 through December 2017, Gregory earned approximately $17,498,680.55 in gross income from the multi level marketing companies.
Despite this substantial amount of income, according to IRS records, Gregory failed to voluntarily file personal income tax returns and has paid no personal income taxes (other than Form W-2 withholdings) for over 20 years, even though she had an annual obligation to do so. Dating back to at least 1993, Gregory has been the subject of several IRS civil examination and collection proceedings. During this period, in furtherance of its examination and collection efforts, the IRS conducted audits, filed substitutes for return, and filed tax liens. The IRS also notified Gregory of her ongoing obligation to file tax returns for more recent years. Gore knew that Gregory owed a substantial amount of money for her personal taxes.
Gregory and Gore worked together to conceal Gregory's income and assets from the IRS. Gregory and Gore systematically moved assets, including businesses and bank accounts, out of Gregory's name and into Gore's name. Gregory and Gore directed income owed to Gregory to entities and accounts nominally in the control of Gore. Gregory and Gore took these steps so that IRS records would not link the income or assets to Gregory and did so with the intent to evade the payment and assessment of taxes.
Gregory retained personal control of the funds received from the multi-level marketing companies. She spent the funds on lavish personal expenses, including home furnishings and home improvements, at high-end retailers such as Louis Vuitton, Jimmy Choo, Saks Fifth Avenue and Nordstrom, on cruises, horse dealers, quarter horse events, custom horse show clothing, gifts for Gore and other family members, mortgage payments on a house in Florida and at various automotive dealerships.
Gore benefitted from her criminal actions through gifts from Gregory. Gore had bank cards for the bank accounts in her name, and she used them for a substantial amount of personal expenses for herself and her family. Gregory also authorized the use of funds to purchase and subsidize a feed store, and to purchase and subsidize the operation of an equestrian training center and wedding venue that Gore operated. Gregory also authorized the use of funds to pay a private tutor and horse trainers for Gore's daughter, and for other individuals who provided personal services to Gore.
Gregory and Gore also worked together to alter, falsify, forge, and fabricate financial and other business documents relative to Gregory's purchase of a second home in Grand Island, Florida, for $1,115,000. Gregory financed a portion of the purchase with a seller-backed mortgage to avoid any requirement to disclose tax returns in making the purchase, and in furtherance of her scheme to evade taxes. Gregory provided documents to the real estate agent, representing that she had sufficient funds to buy the house. The documents included a business bank account statement representing that the account contained $1,900,003.21. In truth, the bank account contained only $3.21. Gregory and Gore worked together to alter, falsify, forge and fabricate the documents and provide them to the real estate agent. Following the false representations, Gregory closed on the purchase of the house.
The combined total tax loss for the 1998 through 2006, 2008, and 2014 through 2017 income tax years was $3,759,889.11.
“Theresa Gregory earned millions of dollars of income, but she did not file an income tax return for over 20 years,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Gregory and Gore went to great lengths to hide funds from the IRS and evade paying their fair share of taxes.”
David M. DeVillers, United States Attorney for the Southern District of Ohio and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the sentenced handed down by Chief U.S. District Judge Algenon L. Marbley.
This case is being prosecuted by Assistant United States Attorney Peter K. Glenn-Applegate and was investigated by special agents of IRS-Criminal Investigation.
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Milton Man Sentenced to 84 Months’ Imprisonment for Distributing and Possessing Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Barry Ritter, Jr., age 55, of Milton, Pennsylvania, was sentenced on February 9, 2021, by United States District Court Judge Robert D. Mariani to 84 months of imprisonment and a 10-year term of supervised release, for distributing and possessing child pornography.
According to Acting United States Attorney Bruce D. Brandler, Ritter pled guilty to the receipt and distribution of child pornography between March 2018 to July 2018. Ritter used online forums to obtain and re-distribute child pornography on at least several dozen occasions, and admitted to viewing child pornography for approximately 10 years. A search warrant conducted at his residence yielded electronic devices containing dozens of photographs and videos of child pornography. Ritter also was held accountable for possessing material involving prepubescent minors and the abuse of infants.
Judge Mariani also ordered Ritter to pay $3,000 in restitution to victims of child pornography and $5,100 in assessments. Ritter has remained in custody since his February 5, 2019 arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by Homeland Security Investigations. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Man Purchased Lamborghini After Receiving $3.9 Million in PPP LoansRead the Press Release
A Florida man pleaded guilty today for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini sports car for himself.
Authorities seized the Lamborghini and $3.4 million from the bank accounts of David T. Hines, 29, of Miami, at the time of his arrest. Hines pleaded guilty today to one count of wire fraud and is scheduled to be sentenced on April 14.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Office of Investigation’s Atlanta Regional Office, Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s Miami Division, Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration (SBA) OIG, Investigations Division, Eastern Regional Office, Acting Special Agent in Charge Tyler R. Hatcher of the IRS Criminal Investigation (CI) Miami Office, and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG, Eastern Region, made the announcement.
As part of his guilty plea, Hines admitted that he fraudulently sought millions of dollars in PPP loans through applications to an insured financial institution on behalf of different companies. Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in PPP loans.
Hines further admitted that within days of receiving the PPP funds, he used the funds to purchase a 2020 Lamborghini Huracan sports car for approximately $318,000. Plea documents indicate that in the days and weeks following the disbursement of PPP funds, Hines did not make payroll payments that he claimed on his loan applications. He did, however, use the PPP proceeds for personal expenses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FDIC-OIG, U.S. Postal Inspection Service, IRS-CI, the SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG. Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida are prosecuting the case.
The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Maintenance Supervisor at State Facility in the Finger Lakes Pleads Guilty to Violating the Clean Air ActRead 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 James S. Marshall, 68, of Farmington, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to negligent endangerment under the Clean Air Act. The charge carries a maximum penalty of one year in prison and a $125,000 fine.
“The very essence of the Clean Air Act is to protect people from dangerous, and potentially deadly, hazardous air pollutants,” stated U.S. Attorney Kennedy. “As maintenance supervisor for the property owner where work was being done, the defendant had an obligation to look out for the safety of the hired contractors. Unfortunately, his failure to do what he should have, put their health at risk.”
“Defendant Marshall’s negligence was not without consequence,” said Tyler Amon, Special Agent-in-Charge of the EPA's Criminal Investigation Division in New York. “Following his failure to properly identify regulated asbestos containing material, he continued to place workers at risk of being exposed to asbestos.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was a Maintenance Supervisor with the Finger Lakes Office for People with Developmental Disabilities (OPWDD), Developmental Disabilities Services Office. As part of his duties, Marshall was involved in the cleanout of the Hillcrest Building, a building owned by OPWDD and located on E. Maple Avenue in Newark, NY. In November 2014, the OPWDD solicited public bids for the cleanout of the Hillcrest building, and in December 2014, a third-party contractor was awarded the contract. The defendant was not involved in the awarding of the bid, nor was Marshall involved with the approval of contract documents.
In April 2015, during the cleanout of the Hillcrest Building, asbestos was released into the ambient air, which negligently placed other individuals in imminent danger of death or serious bodily injury. On April 9, 2015, the defendant responded to the Hillcrest Building and told the workers that a licensed third-party testing company had conducted the sampling at the Hillcrest Building and that such sampling yielded negative results for asbestos. However, based on Marshall’s prior experience with the Hillcrest building, and other buildings on the Newark campus, he should have been aware of the possibility of asbestos-containing material throughout the Hillcrest building. Following the defendant’s conversation with the workers, some of the workers chose to continue to work in the building on April 9 and 10, 2015, and during such work, asbestos was released into the ambient air. Marshall failed to take any further measures to protect the health of the work crew.
The plea is the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-in-Charge Tyler Amon. Additional assistance was also provided by the New York State Department of Labor, Asbestos Control Bureau.
Sentencing is scheduled for May 10, 2021, before Judge Siragusa.
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Local man sent to prison for enticing minor via social mediaRead the Press Release
McALLEN, Texas — A 34-year-old Mercedes resident has been ordered to federal prison after admitting he intended to engage in sexual activity with a young female, announced U.S. Attorney Ryan K. Patrick.
Jason Hernandez pleaded guilty Dec. 2, 2020.
Today, U.S. District Judge Micaela Alvarez sentenced him to 140 months in federal prison. In handing down the sentence, the court noted that unlike many other crimes, Hernandez was not motivated by the desire to make money, instead by his own immoral purposes and desires. The court further noted Hernandez clearly intended to engage in sexual activity with a minor as he had arrived at the meeting location with condoms in his possession.
Hernandez was further ordered to serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children. He will also be ordered to register as a sex offender.
“With ever increasing access to communication platforms, we 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 will serve the next several years in prison for his unfathomable acts,” said Acting Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “ HSI will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”
Between the months of August and September 2020, Hernandez enticed an individual he believed to be a 13-year-old female on a social media application. In their communications, Hernandez had graphically described sexual acts he desired to perform with the minor and expressed his desire to impregnate her.
Hernandez then requested to meet the alleged minor in person at an agreed upon location at a park in Harlingen, at which time he expected to engage in sexual activity with her. However, law enforcement took him into custody upon his arrival.
HSI’s Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Michael Mitchell prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lebanon, Pa. Man Indicted for Threatening to Murder Members of the United States SenateRead the Press Release
HARRISBURG, Pa., - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenelm L. Shirk, age 71, of Lebanon, Pennsylvania, was indicted on February 3, 2021, by a federal grand jury for threatening to murder members of the United States Senate.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Shirk made threats to murder Democratic members of the United States Senate. On January 21, 2021, Shirk was stopped by the Pennsylvania State Police in his vehicle en route to Washington D.C. A search of Shirk’s vehicle recovered several firearms and large amount of ammunition. Shirk was then taken into custody by the Pennsylvania State Police and charged with making terroristic threats.
Shirk made his initial appearance before Magistrate Judge Susan E. Schwab on February 9, 2021, and pled not guilty to the federal charges. He was detained pending a trial that was scheduled for April 5, 2021.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Franklin County District Attorney’s Office, the Cornwall Police Department, and the Washington D.C. Capitol Police. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
Indictments, Criminal Informations and Criminal Complaints are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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KC Man Pleads Guilty to Illegal Firearm Following Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to illegally possessing a firearm after leading police officers on a high-speed chase.
Raymond L. Pierce, 22, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of being a felon in possession of a firearm.
By pleading guilty today, Pierce admitted that he illegally possessed a loaded Glock 9mm handgun on Dec. 28, 2019. Pierce also admitted that he was in possession of a Smith and Wesson .40-caliber semi-automatic handgun and a Glock 9mm extended magazine on July 9, 2020.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Pierce has a prior felony conviction for possession of a controlled substance.
On Dec. 28, 2019, a Jackson County Sheriff’s Deputy was working uniformed, but off-duty, patrolling the area around nightclubs that were letting out on Southwest Boulevard in Kansas City, Mo., at 2:36 a.m. As he was trying to move people out of the street, the deputy saw in his rear-view mirror a green Ford Mustang approaching him without its headlights on at a high rate of speed. The Mustang quickly changed lanes to avoid the deputy’s car and individuals in the street moved back to ensure not being hit. The deputy attempted to pull the Mustang over, but the Mustang fled and the deputy discontinued the chase.
At 3:05 a.m., a different Jackson County sheriff’s deputy was traveling eastbound on 1-670 just east of the Broadway overpass in Kansas City, Mo., and saw a green Ford Mustang crash into the center mediate concrete barrier and guard rail. The deputy stopped to render aid. As he approached the green Mustang, he saw Pierce, who was on probation, standing outside the driver’s door. As the deputy approached him, Pierce climbed back inside the vehicle, reached across the center console, and placed his hand down near the passenger side floorboard. The deputy directed Pierce to exit the vehicle and show his hands, and Pierce refused. Once back-up arrived, officers were able to get Pierce out of the vehicle. Pierce said his leg and mouth hurt, and officers ordered EMS. The car was inventoried prior to being towed and officers found the loaded Glock 9mm handgun under the front passenger seat. The serial number on the barrel of the Glock was filed off and the serial number plate had been removed.
On July 9, 2020, law enforcement officers were conducting surveillance on Pierce, who had felony arrest warrants. They saw Pierce driving a silver Dodge Avenger with two passengers. Pierce drove to a house in Raytown, Mo., where all three went into the house. When they returned to the car, they placed a backpack in the back seat. Investigators attempted to pull Pierce over, but Pierce fled, disregarding stop signs and light signals. Investigators used aerial surveillance to track Pierce to a gas station in Kansas City, Kansas, where they again attempted to take him into custody. Pierce refused to comply again and fled, striking a law enforcement vehicle in his escape.
Aerial surveillance continued to track Pierce. At one point in his flight, Pierce drove through the area of 40th Street and Genesee Street in Kansas City, Mo. Officers received a call from that area about a car traveling at a high rate of speed the wrong way, which threw out a firearm and a Louis Vuitton backpack. Officers responded to the location and found a Smith and Wesson .40-caliber semi-automatic handgun. Inside the Louis Vuitton backpack, officers found the Glock 9mm handgun, the Glock 9mm extended magazine, and 115 grams of marijuana. Investigators later identified Pierce’s Facebook account. Posted to that account was a photograph of Pierce with the Louis Vuitton backpack.
Arial surveillance tracked Pierce to a Grandview residence, where he and the two passengers left the car and went into the house. Officers found Pierce hiding in the basement.
Under federal statutes, Pierce is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the FBI, the Jackson County, Mo., Sheriff’s Department, and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Judge sentences St. Louis County man for his role in drug trafficking organizationRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Amos Vonzell Blanchard, Jr. to 54 months in prison today. The 45-year-old Florissant, Missouri resident previously pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and one count of possession with the intent to distribute cocaine base.
Beginning in 2018, investigators with the Federal Bureau of Investigation and the St. Louis County Police Department began an investigation into a group of cocaine and cocaine base distributors operating in and around St. Louis County. Blanchard, Jr., along with others, was obtaining cocaine and cocaine base for redistribution.
On January 15, 2019, investigators executed a search warrant at Blanchard, Jr.’s stash house in the 6400 block of Ridge Avenue. Detectives observed Blanchard, Jr. holding a black latex glove while trying to open a bedroom window from inside the residence. The glove was found to contain more than 66 individual clear plastic baggies of cocaine base, commonly known as “crack” cocaine, 52 tablets of methamphetamine and a small amount of powder cocaine.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorney Lisa Yemm is handling the case.
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Judge sentences St. Louis County man for his role in drug trafficking organizationRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Amos Vonzell Blanchard, Jr. to 54 months in prison today. The 45-year-old Florissant, Missouri resident previously pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and one count of possession with the intent to distribute cocaine base.
Beginning in 2018, investigators with the Federal Bureau of Investigation and the St. Louis County Police Department began an investigation into a group of cocaine and cocaine base distributors operating in and around St. Louis County. Blanchard, Jr., along with others, was obtaining cocaine and cocaine base for redistribution.
On January 15, 2019, investigators executed a search warrant at Blanchard, Jr.’s stash house in the 6400 block of Ridge Avenue. Detectives observed Blanchard, Jr. holding a black latex glove while trying to open a bedroom window from inside the residence. The glove was found to contain more than 66 individual clear plastic baggies of cocaine base, commonly known as “crack” cocaine, 52 tablets of methamphetamine and a small amount of powder cocaine.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorney Lisa Yemm is handling the case.
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Jefferson County Engineer Guilty of more than $10 Million Covid Relief FraudRead the Press Release
BEAUMONT, Texas – A 30-year-old Beaumont, Texas engineer pleaded guilty today for filing fraudulent bank loan applications seeking more than $10 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Senior Executive Michael J. Mullaney for Law Enforcement Operations, Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG), Inspector General Hannibal “Mike” Ware of the SBA-OIG, and Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Shashank Rai pleaded guilty to one count of making false statements to a bank. He was charged on May 13, 2020, with violations of wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
“The Payroll Protection Program was designed to help struggling businesses and hardworking Americans, not individuals who concoct imaginary businesses and employees,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to work diligently with our law enforcement partners to investigate and prosecute those who exploit this critical, taxpayer-funded program.”
As part of his guilty plea, Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. Rai made two fraudulent claims to two different lenders for seek loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). In the application submitted to the first lender, Rai sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.
According to court documents, the Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020.
According to court documents, materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million, which is the amount of money that Rai allegedly sought from the second lender.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA-OIG, FDIC-OIG, SBA-OIG, and USPIS. Assistant Chief L. Rush Atkinson and Trial Attorney Lou Manzo of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Nathaniel Kummerfeld and Frank Coan for the Eastern District of Texas are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Jackson Man Sentenced to Nearly 4 Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss – Eddie Terrell Adams, 39, of Jackson, was sentenced today by U.S. District Judge Kristi H. Johnson to 46 months in federal prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Jackson Federal Bureau of Investigation in Mississippi.
On March 10, 2018, officers with the Jackson Police Department stopped a car with an expired license plate. During the traffic stop, Adams became agitated and told officers they would have to catch him. Adams then fled from the traffic stop. After a brief car pursuit, Adams attempted to run inside of an apartment but was stopped and apprehended by police at the front door. Just before he was apprehended, Adams opened the apartment door and tossed a handgun behind the door. Officers soon determined that Adams was previously convicted of aggravated assault and therefore prohibited from possessing a firearm.
On January 25, 2019, Adams was charged in a federal criminal indictment with possessing a firearm after having been previously convicted of a felony crime. Adams pled guilty on October10, 2019.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Houston scientist settles grant fraud allegationsRead the Press Release
HOUSTON – A local scientist and his southwest Houston invention and technology company have agreed to pay nearly $150,000 to resolve allegations they defrauded the National Science Foundation (NSF) and the Navy, announced U.S. Attorney Ryan K. Patrick.
Dr. Rouzbeh Shahsavari, 40, is the owner and chief scientist at C-Crete Technologies Ltd. in Stafford. Today, he has paid $147,589 to settle allegations they violated the False Claims Act.
“Fraud targeting grants and loans for small business development has an outsized impact on recipients and those left out,” said Patrick. “Some deserving and legitimate small business missed out because this man lied. The taxpayer is now being made right.”
Shahsavari and C-Crete allegedly made material misrepresentations to NSF and the Navy in applications for Small Business Technology Transfer (STTR) and Small Business Innovation Research (SBIR) awards in 2015 and 2016. STTR and SBIR programs are highly competitive federal programs. They are designed to encourage small, independent and domestically owned businesses through the investment of federal funds to conduct research and development in areas that further United States interests, including those concerning national health, welfare and defense. Only qualified small businesses that meet strict program requirements are eligible for awards.
STTR and SBIR award applicants are required to designate an employee as the principal investigator for the proposed research. His/her qualifications and credentials are a key component of award decisions. STTR award applicants must also have a subaward agreement with a collaborating research partner.
C-Crete and Shahsavari represented they had the mandatory agreement with Rice University. However, the investigation revealed they did not. They also failed to notify Navy personnel that their designated principal investigator had stopped working for C-Crete almost three months before the award was granted.
In both circumstances C-Crete was ineligible, but still accepted grant funds.
“It is imperative that federal award recipients provide true and accurate representations and certifications during all phases of the grant process,” said NSF Inspector General Allison Lerner. “The SBIR/STTR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for innovative research by small businesses. It is essential to protect the integrity of this program.”
NSF-Office of Inspector General and Naval Criminal Investigative Service conducted the coordinated investigation with the assistance of the U.S. Attorney’s Office. Assistant U.S. Attorney Julie Redlinger handled the matter.
The claims resolved by this settlement are allegations only. There has been no determination of liability.
Henderson Man Gets More Than 12 Years in Federal Prison for Dealing HeroinRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced last week to 144 months in prison for conspiracy to distribute and possess with intent to distribute heroin.
According to court documents, law enforcement in Vance County received information that Theodus Lewis Williams, 50, was distributing heroin from his residence, including from a tent in his front yard, and from his neighbor’s residence. Law enforcement utilized confidential informants to conduct controlled purchases of heroin from Williams and his co-conspirators on several occasions. As a result, on August 1, 2019, officers executed a search warrant on both residences and the tent, and found quantities of heroin laced with fentanyl, suboxone, more than $3,500 in U.S. currency, and firearms. Williams pled guilty on August 20, 2020. He is a convicted felon, having prior drug, gun, and assault convictions, including a 1996 conviction in federal court for possession of a firearm by a felon for which he received a 10-year prison sentence.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III on February 4, 2021. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Henderson Police Department, and the Vance County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-494-D.
Hartford Man Involved in Cocaine Trafficking Ring Sentenced to 27 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEX NEGRON, 37, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 27 months of imprisonment, followed by three years of supervised release, for his role in a cocaine trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service into a drug trafficking organization that was receiving shipments of cocaine from Puerto Rico and California, and distributing the drug in and around Hartford. The investigation revealed that a U.S. Postal Service letter carrier was facilitating the shipment of parcels containing kilograms of cocaine through the USPS to addresses that were on his delivery route in Hartford. The letter carrier distributed cocaine to his own drug customers, and also delivered parcels to other large-scale cocaine traffickers in the Hartford area.
On March 17, 2019, Negron received a parcel containing approximately 500 grams of cocaine. The cocaine was delivered to his co-conspirators.
On June 4, 2019, a grand jury in Hartford returned an indictment charging Negron and 18 co-defendants with conspiracy to distribute cocaine and related offenses. Negron was arrested on May 6, 2020. On October 28, 2020, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Negron, who is released on a $175,000 bond, is required to report to prison on April 5, 2021.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hardin man admits raping woman on Crow Indian ReservationRead the Press Release
BILLINGS – A Hardin man on Tuesday admitted raping a woman he met at a casino and took to the Crow Indian Reservation, Acting U.S. Attorney Leif M. Johnson said today.
Elmer Burpee Yarlott II, 65, pleaded guilty to aggravated sexual abuse. Yarlott faces a maximum of life in prison, a $250,000 fine and five years to a lifetime of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Yarlott was detained pending further proceedings. A sentencing date will be set.
In court documents filed in the case, the prosecution said that on Nov. 19, 2019 in Hardin, Yarlott approached the victim in a casino and offered her a dollar if she would leave with him and his friend. After midnight, the victim left with Yarlott and his friend and they drove to the Crow Indian Reservation. Yarlott dropped off his friend and then drove with the victim to a remote area on the reservation to drink alcohol and use methamphetamine. When the victim declined Yarlott’s repeated requests for sex, Yarlott threatened to kill the victim and then raped her.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.
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Grand Jury Returns 3 IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Columbus Woman Charged with Using Internet In Murder-for-Hire Scheme
Kelly Harper, 37, Columbus, Wisconsin, is charged with using the Internet from October 19 through December 10, 2020, with the intent that the murder of a known individual be committed in exchange for payment, specifically bitcoin. Harper was previously charged with this offense in a complaint filed in U.S. District Court. Federal law requires that offenses charged by complaint be presented to a grand jury for indictment.
The complaint alleged that Harper provided a description of the intended victim, details about the victim’s vehicle, where the victim worked, and the victim’s cell phone number. The scheme was uncovered by journalists investigating the murder-for-hire site, and they were able to warn the victim. The scheme was reported to the Federal Bureau of Investigation and the Sun Prairie Police Department in January.
Harper was arrested on February 5 and remains in custody. Her arraignment has been set for Tuesday, February 16, at 2:00 p.m.
If convicted, Harper faces a maximum penalty of 10 years in federal prison. The charge against her is the result of an investigation by the Sun Prairie Police Department, the FBI, and the FBI’s Money Laundering, Forfeiture and Bank Fraud Unit. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Michigan Man Charged with Drug & Gun Crimes
Larry W. Cole, 40, Painesdale, Michigan, is charged with possessing 500 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on September 9, 2020. Cole is also charged with possessing a 9mm handgun on that date in furtherance of the drug trafficking crime.
If convicted, Cole faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on the drug charge. The gun charge carries a mandatory penalty of 5 years, which federal law requires be served consecutive to any sentence imposed on the drug charge.
The charges against Cole are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation; Drug Enforcement Administration; Rock and Florence County Sheriffs’ Offices; Illinois State Police Multi-County Enforcement Group; Wisconsin State Patrol; and the Michigan K.I.N.D. Drug Unit. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Milwaukee Man Charged with Illegally Possessing Firearm
Jerome Kirk, 33, Milwaukee, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that he possessed a loaded 9mm handgun on November 16, 2020.
If convicted, Kirk faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Wisconsin State Patrol, Sun Prairie Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Former SCANA CEO to Plead Guilty to Conspiracy to Commit Mail and Wire Fraud on February 24Read the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, is scheduled to plead guilty on Wednesday, February 24 in federal court to conspiracy to commit mail and wire fraud. The hearing is scheduled for 10:00 a.m. at the Matthew J. Perry Federal Courthouse, 901 Richland Street, Columbia, before the Honorable Mary G. Lewis.
U.S. Attorney McCoy will be available for media questions after the hearing.
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Former Operator of Suburban Chicago Nightclub Charged with Underreporting Corporate Income TaxesRead the Press Release
CHICAGO — The former operator of a suburban Chicago nightclub has been charged in federal court with assisting in the preparation and submission of false corporate income tax returns for six years.
ALICIA ARNOLD willfully assisted in the preparation and submission of false and fraudulent income tax returns for the calendar years 2012 to 2017 for Arnie’s Idle Hour, the nightclub Arnold operated in Harvey, Ill., according to a criminal information filed Feb. 5, 2021, in U.S. District Court in Chicago. Each of the false tax returns substantially underreported the nightclub’s gross receipts and sales, the information states.
Arnold, 51, of Las Vegas, Nev., and formerly of Homer Glen, Ill., pleaded not guilty today at her arraignment before U.S. Magistrate Judge Jeffrey T. Gilbert. A status hearing was set for March 3, 2021, at 10:30 a.m., before U.S. District Judge Jorge L. Alonso.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera D. Cantu, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Thomas J. Dart, Cook County Sheriff. The government is represented by Assistant U.S. Attorneys Grayson Walker and Maureen Merin.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count is punishable by up to three years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Investment Adviser Charged with Stealing Client FundsRead the Press Release
A criminal complaint was unsealed today in federal court in Central Islip charging Apostolos Pitsironis, a former registered investment advisor and broker, with defrauding his former clients of more than $400,000 that he used to pay his personal debts and expenses, including casino gambling debts and credit card bills. Pitsironis was arrested earlier today in Dix Hills, New York, and will make his initial appearance via videoconference this afternoon before United States Magistrate Judge Steven I. Locke.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.
“As alleged, the defendant stole hundreds of thousands of dollars from investors to pay his personal debts, violating the trust they had placed in him to manage their money safely and honestly,” stated Acting United States Attorney DuCharme. “This Office is committed to protecting the investing public from corrupt financial advisors like the defendant who put greed before their clients’ best interests.”
“Pitsironis, as alleged, transferred more than $400,000 from the investment account of a couple who trusted him to manage their portfolio directly into bank accounts he controlled. He later used this money to pay his family’s personal expenses, all the while deceiving both his victims and the financial services firm for whom he worked. Financial advisors have a significant responsibility to appropriately manage the life savings of those who put their faith in them. Anyone who falls short on this front by engaging in illegal practices should, and will, be held accountable to the fullest extent of the law,” stated FBI Assistant Director-in-Charge Sweeney.
In approximately 2009, Pitsironis, who worked in the Melville office of a financial services firm (“Financial Services Firm”), began managing the investments of Victim-1 and Victim-2, a married couple who lived on Long Island (the “Victims”). Between May 2, 2019 and June 11, 2019, Pitsironis initiated 22 transfers totaling approximately $411,000 from one of the Victims’ investment accounts at the Financial Services Firm to a bank account in the defendant’s own name at another financial institution. Pitsironis falsely told the Financial Services Firm that Victim-2 owned the bank account receiving the funds and that Victim-2 had authorized the transfer of funds to that account. Pitsironis then transferred the stolen funds to other bank accounts that he controlled and used the stolen money to pay for his family’s personal expenses, including casino gambling debts, credit card bills and the lease for a luxury car.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of wire fraud, Pitsironis faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Mathew S. Miller and Elizabeth Macchiaverna are in charge of the prosecution.
The Defendant:
APOSTOLOS PITSIRONIS
Age: 52
Dix Hills, New YorkE.D.N.Y. Docket No. 21-MJ-162
Former Florida Resident Indicted for Tax Evasion and Failing to Report Foreign Bank AccountsRead the Press Release
A federal grand jury returned an indictment today charging Lucia Andrea Gatta, a former resident of Palm Beach County, Florida, with tax evasion and failing to file Reports of Foreign Bank and Financial Accounts (FBARs), among other offenses, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the indictment, Gatta was born in Chile and became a naturalized U.S. Citizen in 2012. The indictment alleges that, for calendar years 2012 through 2014, Gatta failed to disclose her interest in a Swiss bank account on annual FBARs as required by law. Gatta also allegedly evaded assessment of income taxes on the interest and dividend income she earned in her Swiss bank account and failed to file tax returns with the IRS for tax years 2011 through 2014.
The indictment also charges Gatta with naturalization fraud. According to the indictment, Gatta did not disclose to the Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) that she had failed to report foreign dividend and interest income during her citizenship application process, and she allegedly presented misleading documents to USCIS to substantiate the false statements she made during her naturalization interview.
If convicted, Gatta faces a maximum sentence of five years in prison for each count relating to her failure to file an FBAR and tax evasion. She also faces a maximum sentence of one year in prison for each of the counts concerning the failure to file tax returns. If convicted of naturalization fraud, Gatta faces a maximum sentence of ten years in prison and automatic denaturalization.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by special agents of IRS-Criminal Investigation and the Department of Homeland Security – Homeland Security Investigations. Trial Attorneys Sean Beaty and Parker Tobin of the Tax Division are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Division I Football Player and Subsequent Violent Leader of Drug Trafficking Organization, Sentenced to 15 Years in PrisonRead the Press Release
RALEIGH, N.C. – A Durham man was sentenced today to 180 months in prison for Possession with Intent to Distribute Marijuana and Aiding and Abetting (Count Three) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Count Four).
According to court documents, Gurbir Singh Grewal, also known as “Gavin,” 23, pleaded guilty to both offenses on September 3, 2020.
The investigation established that from 2017 to May 2018, Grewal was the leader of a conspiracy to distribute marijuana that extended from New York to various locations in North Carolina, including Durham, Raleigh, and Wilmington.
At the time of the conspiracy, Grewal was a scholarship football player at Fordham University.
In May 2018, a confidential source informed agents that Grewal was selling marijuana for $1,800 to $2,000 per pound. The confidential source stated that in total, he had purchased 46 pounds of marijuana from Grewal during at least ten transactions. According to the confidential source, Grewal had a firearm during every transaction.
On May 11, 2018, the confidential source began communicating with Grewal to arrange a controlled purchase of fifteen pounds of marijuana.
On May 12, 2018, agents conducted surveillance of Grewal. That morning, Grewal went to two storage units. Later in the evening, agents saw Grewal leave an apartment on Leigh Road in Durham. Grewal then arrived at the planned meeting location in Raleigh.
Agents arrested Grewal, who was found in possession of fifteen pounds of marijuana and a firearm.
Agents then obtained a search warrant for the apartment in Durham. There, agents seized: an assault rifle with a double-drum magazine, which was loaded; an unloaded shotgun; marijuana; thousands of dollars in United States currency; a money counter; and a drum magazine that would fit the handgun seized from Grewal’s vehicle. Agents then executed search warrants at the two storage units and seized marijuana and THC vapor liquid cartridges.
Finally, agents obtained warrants to search cell phones in Grewal’s possession. Data in the cell phones showed that Grewal had trafficked more than 300 pounds of marijuana to North Carolina in early 2018.
A witness stated that Grewal regularly used firearms to threaten others, and that Grewal would hold firearms to the heads of others during those threats. The witness also stated that Grewal became angered when a drug customer failed to pay a debt, and Grewal ordered members of the drug trafficking organization to burn down the home of that drug customer. Durham police reports confirmed that the customer’s home had been set on fire and was significantly damaged.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Raleigh Police Department, and the Durham Police Department investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-00491-D.
Former D.C. Apartment Manager Pleads Guilty to Defrauding Her Employer, Causing a Loss to the Company of at Least $285,703Read the Press Release
Greenbelt, Maryland – Lachann Alexis Green, age 36, of Laurel, Maryland, pleaded guilty to the federal charge of wire fraud in connection with a scheme to defraud her employer, causing a loss to the business of at least $285,703.09.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to her guilty plea, from October 2017 through December 2018, Green was the general manager of Rhode Island Row, an apartment complex in Washington, D.C. that was managed by Business 1, her employer. As General Manager of the apartment complex, Green was the senior employee of Business 1 on site at Rhode Island Row and was responsible for all expenses and staffing needs for the apartment complex. During her time as General Manager, Green used her position to defraud Business 1 in at least four different ways.
First, in October 2017, Green registered a fraudulent shell business, “Executive Property Staffing” (“EPS”), with the Maryland State Department of Assessments and Taxation (“SDAT”). Green admitted that she created dozens of fraudulent EPS invoices for staffing, cleaning, and maintenance work at Rhode Island Row that had not been done by EPS. Green personally approved and submitted the fraudulent invoices to her employer. The money that Business 1 paid on the invoices was generally sent to a bank account opened in EPS’s name but which was controlled by Green. Over the course of the scheme, Green submitted and Business 1 paid $231,802 in fraudulent EPS invoices.
As detailed in her plea agreement, although Green had acknowledged and agreed to Business 1’s policy against self-dealing and conflicts of interest as part of her employment, Green took steps to conceal her ownership of EPS and did not disclose her association with EPS to her employer. For example, Green e-mailed a forged W-9 form to get EPS set up in Business 1’s vendor payment system, which she signed using a relative’s name. In addition, Green created an e-mail account purporting to belong to “Michelle Cross” in EPS management. Green used that e-mail address to send e-mails to her Business 1 work account, then forwarded these fake e-mails to others in Business 1 to make it look like she maintained an arms-length relationship with EPS. On at least two occasions, Green used these fake e-mails to suggest that EPS was getting annoyed at how long it was taking for Business 1 to pay EPS for the fraudulent invoices Green had submitted.
Second, Green leased two Rhode Island Row apartments to her relatives under false names and at favorable terms not generally available to others. By the time her fraud was discovered, the two relatives had both failed to pay rent for months, costing Business 1 a total of $39,524 in uncollected rent.
In addition, Green contracted with a business owned and operated by a personal associate (“Individual 1”) to turn over apartments at Rhode Island Row. Between October 2017 and October 2018, Green submitted to her employer approximately $190,000 in invoices for Individual 1’s company for apartment cleaning, painting, and turn-over for new tenants. Green admitted that she never disclosed her relationship to Individual 1 and Individual 1’s company to Business 1.
Finally, Green also admitted that she submitted fraudulent invoices to her employer for expenses that she falsely claimed she had paid out-of-pocket on Business 1’s behalf. Generally, these invoices falsely claimed that Green had arranged and paid for catering services for events at Rhode Island Row. For example, in October 2018, Green submitted an invoice in the name of a caterer for expenses incurred for Rhode Island Row’s Halloween party. In fact, Green never ordered any catering for the 2018 Halloween party. Instead, a relative provided pizza for the event and Green pocketed the $1,500 she falsely invoiced to Business 1. In total, Green submitted and Business 1 paid reimbursement for at least $14,377.09 in fraudulently submitted expenses.
Green used the money she fraudulently obtained from Business 1 to support a luxurious lifestyle, including to help purchase an Audi, to buy season tickets to the Washington Wizards professional basketball team, and to finance a luxury vacation to Cancun with Individual 1.
As part of her plea agreement, Green will be required to forfeit the amount she fraudulently obtained as a result of the scheme, which is at least $246,179.09. Green also has agreed to the entry of a restitution order for the full amount of the loss to Business 1, which is at least $285,703.09.
Green faces a maximum sentence of 20 years in federal prison for wire fraud. U.S. District Judge Paula Xinis has scheduled sentencing for Green on May 20, 2021 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Dana J. Brusca and Special Assistant U.S. Attorney Craig G. Fansler, who are prosecuting the case.
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Former Co-Owner of Pharmacy Pleads Guilty in Prescription Drug Billing SchemeRead the Press Release
BIRMINGHAM, Ala. – Today an additional defendant pleaded guilty in a long-running investigation into a prescription drug-billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, and Internal Revenue Service-Criminal Investigation Special Agent in Charge James Dorsey announced the guilty plea.
James A Mays, III, 44, of Winfield, Ala., entered a guilty plea before U.S. District Judge L. Scott Coogler to one count of conspiring to commit health care and mail fraud, twelve counts of health care fraud, and three counts of money laundering based on spending the proceeds of health care fraud.
Between August 2013 and November 2014, Mays co-owned the operations of Global Medical Equipment and Supplies, Inc. (GMES). In October 2014, Mays became co-owner of Affiliate Pharmacy Strickland. After Jeremy Adams and Jeffrey Black purchased GMES and Northside Pharmacy in November 2014, Mays continued as a pharmacist at Global and directed pharmacy operations at Global and Affiliate Pharmacies. May’s guilty plea brings the total number of defendants who have pleaded guilty in the larger investigation to 26. Those who have previously pleaded guilty include two nurse practitioners, the CEO, the COO, a vice president of sales, an operations manager, multiple district managers, and multiple sales representatives. The remaining defendants are set for trial on February 22, 2021:
- Jessica Linton, 37 of Clearwater, Florida, the manager of the billing team at Global, charged in twenty-four counts;
- John Gladden, 50, of Tallahassee, Florida, a district manager supervising sales representatives at Global, charged in nine counts.
According to the plea agreement, between August 2013 and June 2016, Mays participated in a scheme to cause the pharmacy he worked at to bill for medically unnecessary prescription drugs. He participated in a scheme to direct employees to get medically unnecessary drugs for themselves, family members, and friends, to alter prescriptions to add non-prescribed drugs, to automatically refill prescriptions regardless of patient need, to routinely waive and discount co-pays to induce patients to obtain and retain medically unnecessary drugs, and to bill for drugs without patients’ knowledge. According to the plea agreement, when prescription drug administrators attempted to police this conduct, the defendants evaded and obstructed those efforts, including by providing false information in response to audits and diverting their billing through affiliated pharmacies. The scheme targeted multiple health insurance plans, including the pharmacy’s Blue Cross Blue Shield of Alabama plan, as well as plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others.
The maximum punishment for conspiracy to commit health care and mail fraud is 20 years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine. The maximum penalty for spending the proceeds of health care fraud is 10 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, and IRS-CI investigated the cases. Assistant U.S. Attorneys J.B. Ward, Edward Canter, and Don Long are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
Former California State Assemblyman Sentenced to Prison for Money Laundering in Fraud Scheme Involving Bart Coffee ShopsRead the Press Release
OAKLAND – Terrence Patrick Goggin was sentenced today to one year and one day in prison and ordered to pay $685,000 in restitution for money laundering, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Michael Daniels. The sentence was handed down by the Honorable James Donato, United States District Judge.
Goggin, 79, of Dunsmuir, California, who is a former California State Assemblyman as well as a California-licensed attorney, pleaded guilty to the federal charge of money laundering on December 4, 2019. According to the plea agreement, Goggin admitted that he was the founder and CEO of Metropolitan Coffee and Concession Company, LLC (MC2). From July 2007 to February 26, 2014, Goggin solicited investor money for MC2 to build Peet’s Coffee retail centers, including two centers to be built at the Civic Center and Balboa Park BART stations. Among other investors in the MC2 projects, a group of four private equity investors invested $585,000 in the Civic Center project in September 2013, and an individual investor invested $100,000 in the Balboa Park project, also in September 2013. Goggin admitted that he falsely represented to those investors that their money would be used to build out those specific future Peet’s Coffee retail centers when, in truth, he planned to use the funds otherwise. He also failed to provide the investors with accurate information about the strained relationship between MC2 and BART and about the state of MC2’s finances.
Goggin further admitted as part of his guilty plea that in September 2013 he diverted and directed his employees to divert nearly all of the $685,000 in investment funds to other bank accounts associated with other business ventures into which the investors had neither agreed nor intended to invest. For one example, on September 12, 2013, the same day MC2 received $585,000 from the private equity investors, Goggin directed the transfer of $15,000 from the MC2 bank account to the business bank account of Aegis Atlantic LLC, a Delaware company of which Goggin was also the CEO. That money was never used for the agreed-upon BART projects and was instead spent for other purposes.
A Superseding Indictment returned by the grand jury on September 13, 2018, charged Goggin with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and nine counts of money laundering, in violation of 18 U.S.C. § 1957. Under the plea agreement, Goggin pled guilty to one count of money laundering.
United States District Judge James Donato also sentenced Goggin to a three-year period of supervised release to follow his imprisonment. The defendant is presently out of custody and is ordered to surrender on June 28, 2021, to begin serving his sentence.
Katherine Lloyd-Lovett and Katie Medearis are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation.
Florida Man Pleads Guilty to Bank FraudRead the Press Release
CONCORD - Benjamin Stockwell, 30, formerly of Pittsfield, now residing in Florida, pleaded guilty in federal court on Tuesday to bank fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Stockwell stole checks from various mailboxes throughout New Hampshire, altered them, and cashed them at various banks in his own name.
Stockwell is scheduled to be sentenced on May 20, 2021.
“Protecting the integrity of the mail is an important law enforcement priority,” said U.S. Attorney Murray. “Those who steal items from the mail to commit fraud should understand that they will be identified and prosecuted.”
“The theft of mail in furtherance of various fraud schemes has a significant financial and emotional impact on its victims,” says Manchester Police Chief Allen Aldenberg. “Hopefully the charges that Mr. Stockwell faces will serve as a warning to all would be mail thieves that there are serious consequences for this type of activity.”
This matter was investigated by the United States Postal Inspection Service, with assistance from the Manchester Police Department’s Fraud and Financial Crimes Unit and the Bow Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana MacDonald.
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Felon Admits Possessing Fentanyl and Five Firearms IllegallyRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Kevin Clay Jr., age 27, pleaded guilty to four counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on or about November 16, 2020, Clay possessed with intent to distribute more than 40 grams of fentanyl on November 16, 2020. On that same date, Clay possessed five firearms knowing he had previously been convicted of a crime punishable by imprisonment for a term exceeding one year. One of those firearms was a short-barreled rifle that Clay failed to register with the National Firearms Registration and Transfer Record. Clay also possessed at least one of those firearms in furtherance of a drug trafficking crime.
Judge Fischer scheduled sentencing for May 20, 2021. The law provides for a mandatory minimum sentence of ten years in prison to a maximum total sentence of life in prison, a fine of not more than $5,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Kevin Clay Jr.
Federal Jury Convicts Drug TraffickerRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Cristian Cabrera-Rivas, 39, of Charlotte, N.C, of conspiracy to distribute and possess with intent to distribute methamphetamine and aiding and abetting possession with intent to distribute methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. presided over the two-day trial, which ended yesterday.
According to filed court documents and evidence presented at trial, Cabrera-Rivas and two other individuals, Marco Ramos-Garcia and Silvia Hernandez-Iturralde, were involved in a conspiracy to traffic methamphetamine in and around Gaston County. Trial evidence established that in early January 2019, Cabrera-Rivas arranged to sell two kilograms of methamphetamine for $24,000. According to trial evidence, Cabrera-Rivas directed Ramos-Garcia to transport the methamphetamine from Texas to Gastonia, N.C., for the sale. On January 7, 2019, Cabrera-Rivas and Ramos-Garcia met at a restaurant in Gastonia and then drove separately to the sale location. At that location, law enforcement found Ramos-Garcia and Hernandez-Iturralde in a van, along with two kilograms of methamphetamine, a firearm, and cocaine. Law enforcement arrested Cabrera-Rivas on scene following a brief foot chase.
Cabrera-Rivas is currently in federal custody. At sentencing, he faces 10 years to life in prison for each offense. A sentencing date for Cabrera-Rivas has not been set. Ramos-Garcia and Hernandez-Iturralde have been already sentenced, after pleading guilty to federal drug offenses. Ramos-Garcia was sentenced to 132 months in prison and five years of supervised release. Hernandez-Iturralde was sentenced to 37 months in prison and two years of supervised release.
In making today’s announcement, U.S. Attorney Murray thanked ICE’s Homeland Security Investigations (HSI) in North Carolina, the Gaston County Police Department, the City of Gastonia Police Department, the Mt. Holly Police Department, and the Waxhaw Police Department for the investigation and coordination in this case.
Assistant U.S. Attorney Erik Lindahl, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Father and Son Guilty of Defrauding Department of Housing and Urban Development Through Texarkana Alzheimer’s Assisted Living FacilityRead the Press Release
TEXARKANA, Texas – A Texarkana, Texas, doctor has pleaded guilty today to a federal fraud violation, announced Eastern District of Texas Acting U.S. Attorney Nicholas J. Ganjei.
Dr. Rafael Otero, 68, pleaded guilty to an information charging him with defrauding the U.S. Department of Housing and Urban Development (HUD) before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Dr. Otero agreed to pay restitution to HUD.
“Dr. Otero, and his son Antonio Otero, exploited a HUD-insured mortgage program designed to provide affordable housing for those suffering from diseases like Alzheimer’s,” said Acting U.S. Attorney Nicholas Ganjei. “While they left the HUD-insured mortgage unpaid, the Oteros took hundreds of thousands of dollars. Because of their actions, the American taxpayers ultimately suffered a loss of over $3.6 million.”
According to information presented in court, Dr. Otero was the majority owner of the Magnolia Alzheimer’s Assisted Living facility in Texarkana, Texas, and his son, Antonio Otero, was the facility’s administrator. In order to secure millions of dollars in necessary funding, the Oteros obtained a loan that was insured by HUD. The HUD-insured loan provided a favorable interest rate and did not require the owners of Magnolia to take personal responsibility for the loan in the event of a default. Instead, HUD would suffer the financial loss in the event that Magnolia defaulted on the loan. As a condition of this federal benefit, Magnolia agreed to be bound by a regulatory agreement with HUD that prohibited the owners from receiving money from Magnolia, unless the loan was being paid and Magnolia had surplus cash.
But instead of paying the HUD-insured loan, and in violation of the regulatory agreement they signed with HUD, the Oteros took hundreds of thousands of dollars from Magnolia. Dr. Otero received more than $150,000 from Magnolia in unauthorized compensation and other payments. Antonio Otero took even more money from Magnolia, using it to pay for $3,952 of camera equipment, a $3,247 watch, $2,520 in landscaping for his personal residence, a $27,408 personal mortgage payment, a $12,750 down payment on a personal vehicle, and $1,540 tickets to the Dallas Cowboys. Additionally, he took money from Magnolia and gave it to other individuals, including $13,000 for cosmetic surgery. When Dr. Otero learned that his son had been stealing money from Magnolia, Dr. Otero did not report him to authorities or remove him from his position. After Dr. Otero learned of his son’s theft, Antonio Otero stole an additional $62,000 from Magnolia.
Under federal statutes, Dr. Otero faces up to one year in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Antonio Otero pleaded guilty to equity skimming on October 28, 2019, and was sentenced on June 2, 2020, to 46 months in prison by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Antonio Otero to pay $2 million in restitution to HUD.
This case was investigated by the United States Department of Housing and Urban Development, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Fairbanks Man Sentenced on Gun and Drug ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Ralph Norman Wells, 39, of Fairbanks, has been sentenced by U.S. District Court Judge Ralph R. Beistline for Felon in Possession of a Firearm and Possession of Controlled Substance with the Intent to Distribute.
According to Court documents, on April 2, 2020, a business owner reported a suspicious vehicle loitering in the parking lot. Alaska State Troopers (AST) responded and identified Wells, who was on state felony probation. Officers contacted Well’s probation officer, who requested a search of Wells’ vehicle and person. The search revealed a loaded Ruger P345-45 caliber which had the serial number partially obliterated in a shoulder holster on Well’s person. Additionally, the search also resulted in the seizure of approximately 5 grams of methamphetamine, a digital scale, baggies and drug paraphernalia. Wells has prior felony convictions and a lengthy criminal history. Wells pleaded guilty in October 2020.
Wells was sentenced to 120 months in prison, followed by 6 years of supervised release. In imposing the sentence, Judge Beistline emphasized Wells’ extensive criminal history, the seriousness of the offense and the need to protect the public.
The Alaska State Troopers (AST), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case. The case was prosecuted by Assistant U.S. Attorney Daniel Doty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please visit https://www.justice.gov/ag/about-project-guardian
East Helena man sentenced to prison for meth traffickingRead the Press Release
GREAT FALLS — A East Helena man who admitted trafficking methamphetamine was sentenced today to 76 months in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Casey Robin Kazimi, 27, pleaded guilty on Oct. 14, 2020 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court document that on Sept. 3, 2019, Kazimi possessed three firearms and 17.25 grams of meth in East Helena.
The Lewis and Clark County Sheriff’s Office deputies contacted Kazimi during the end of a call of a person going through vehicles. Other civilians pointed Kazimi out to the deputies. Kazimi lied to the deputies, fled on foot, and threw a handgun behind a tree at Radley Elementary School before he was apprehended. At the time, Kazimi was on state supervision. During a probation search of his car, officers found two additional firearms and methamphetamine. They also found small plastic bags for repackaging and distribution of the methamphetamine and a digital scale. A Drug Enforcement Administration lab determined the meth was 98 percent pure.
The case was investigated by the Lewis and Clark County Sheriff’s Office and Montana Department of Corrections’ Probation and Parole and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 through 2019. Through these initiatives, 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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Dominican National Pleads Guilty to Stealing Government Benefits and Making False StatementRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to theft of public money and making a false statement on an application for Social Security benefits.
Rafael Bautista Abreu, 63, formerly of Lynn, pleaded guilty to theft of public money and making a false statement on an application for Social Security benefits. U.S. District Court Judge George A. O’Toole scheduled sentencing for June 10, 2021.
Bautista Abreu used the identity of a Puerto Rican citizen to apply for Social Security benefits and Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as Food Stamps. From September 2009 through July 2016, Bautista Abreu fraudulently received $12,222 in Food Stamps by using the stolen identity. He also received $16,080 in federally-funded MassHealth benefits from October 2008 through July 2016.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement in an application for Social Security benefits provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was arrested yesterday on charges of fraudulently using someone else’s Social Security number.
Mariana Rosmely Aguasviva, 38, who previously resided in Lawrence, was indicted on one count of false representation of a Social Security number and one count of aggravated identity theft. She was detained following an initial appearance before U.S. Magistrate Judge Donald L. Cabell pending a detention hearing scheduled for Feb. 12, 2021.
According to the indictment, Aguasviva fraudulently used a Social Security number that was assigned to someone else in an application at the Massachusetts Registry of Motor Vehicles in 2016.
The case is the result of an investigation conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force, a specialized investigative group comprised of local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of at least two years in prison to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police; U.S. Department of State, Diplomatic Security Service; U.S. Health and Human Services, Office of Inspector General; the Billerica Police Department and the Lawrence Police Department. Assistant U.S. Attorney Fred M. Wyshak, III, of Lelling’s Criminal Division, is prosecuting the case.
The details contained in indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Arrested for Identity TheftRead the Press Release
BOSTON – A Dominican national was arrested yesterday and charged in connection with fraudulently using another person’s Social Security number.
Manuel Maria German Familia, 30, who previously resided in Lawrence, was indicted on one count of false representation of a Social Security number and one count of aggravated identity theft. He was detained following an initial appearance before U.S. Magistrate Judge Jennifer C. Boal pending a detention hearing scheduled for Feb. 12, 2021.
According to the indictment, German Familia fraudulently used a Social Security number that was assigned to someone else in an application at the Massachusetts Registry of Motor Vehicles in 2016.
The case is the result of an investigation conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force, a specialized investigative group comprised of local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of at least two years in prison to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police; U.S. Department of State, Diplomatic Security Service; U.S. Health and Human Services, Office of Inspector General; the Billerica Police Department and the Lawrence Police Department. Assistant U.S. Attorney Fred M. Wyshak, III, of Lelling’s Criminal Division, is prosecuting the case.
The details contained in indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Recognizes International Day of Zero Tolerance for Female Genital MutilationRead the Press Release
Female genital mutilation (FGM) has broad implications for the health and human rights of women and girls, as well as societies at large.
International Day of Zero Tolerance of Female Genital Mutilation on Feb. 6 served as an opportunity to reflect on victims who have suffered from FGM, including those who have died or suffered lifelong health complications from the practice. Partners of the Human Rights Violators and War Crimes Center (HRVWCC) including the Department of Justice, U.S. Immigration and Customs Enforcement (ICE), FBI, and the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division join foreign government partners, non-governmental organizations, and local communities to call for the eradication of the practice.
“In the United States there will be zero tolerance for those who subject girls to this harmful and traumatic practice,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As the recent indictment shows, the Justice Department will seek to hold accountable all perpetrators of this heinous act and fully enforce all provisions of the STOP FGM Act.”
“On this day we remember the women and girls who have been impacted by this horrific practice and commit ourselves to working together to end it,” said Mark Shaffer, Chief of ICE’s Human Rights Violators and War Crimes Center. “FGM is a human rights violation and a crime that requires a global effort to address. We stand with our domestic and international partners as we work together to support survivors and prevent the victimization of more women and girls.”
“Every year, the FBI joins with our partners to acknowledge Zero Tolerance Day and raise awareness regarding Female Genital Mutilation,” said Section Chief David Scott of the FBI’s Public Corruption and Civil Rights Section. “However, our work investigating perpetrators of this terrible crime is not limited to February 6. The FBI is consistently and actively working to eradicate this human rights violation every day of the year. We reaffirm our commitment to our partners, to the victims, and to the world that the FBI is committed to protecting the rights of young women and children and bringing justice to those who would violate them.”
FGM is a serious human rights violation, and, since 1996, has been a federal crime. This year, on Jan. 5, the STOP FGM Act 2020 was signed into law, further clarifying the FGM crime and aligning the U.S. definition of FGM with the World Health Organization’s definition. Violations of this law may result in imprisonment and potential removal from the United States. Individuals suspected of FGM, including sending girls overseas to be cut, may be investigated by the HRVWCC and prosecuted by the Justice Department accordingly. Notably, STOP FGM 2020 aligned the definition of FGM with the World Health Organization’s definition and increased the statutory maximum term of imprisonment for violating the law from five to ten years. On Jan. 13, the Department of Justice indicted a Texas woman for allegedly transporting a minor out of the United States for FGM, the first indictment under the amended statute.
The Human Rights Violators and War Crimes Center is the only government entity focused completely on investigating global atrocities and the perpetrators of human rights violations and war crimes. Initiated by ICE’s Homeland Security Investigations (HSI) in 2008, the HRVWCC leverages the knowledge and expertise of a select group of special agents, attorneys, intelligence analysts, criminal research specialists and historians who are charged with preventing the United States from becoming a safe haven to individuals who engage in the commission of war crimes, genocide, torture and other forms of serious human rights abuses from conflicts around the globe. The center also brings together other Department of Homeland Security components and federal partners, to include the FBI and the Department of Justice, who work collaboratively alongside HSI to pursue human rights violators and war crimes investigations and prosecutions. In 2017, the HRVWCC initiated Operation Limelight USA, a program modeled on Operation Limelight, a joint initiative by the United Kingdom (U.K.) Border Force and police services across the U.K. In Operation Limelight USA, HSI, in partnership with non-governmental organizations, the FBI, U.S. Customs and Border Protection, and other partners worked together to educate passengers flying to or from high-risk countries, offering informational brochures and identifying potential victims and violators of FGM.
According to UNICEF, more than 200 million girls and women alive today have undergone FGM, which refers to cutting and other procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in north, west, and central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States. The Centers for Disease Control estimates that approximately 500,000 women and girls in the United States are either victims of FGM or are at risk of being subjected to it. The practice is global in scope and found in multiple geographies, religions, and socioeconomic classes.
Anyone who has information about an individual who is suspected of assisting in this crime is urged to call the toll-free ICE tip line at (866) 347-2423 or the FBI tip line at 1-800-CALL-FBI, or complete the ICE online tip form or FBI online tip form. All are staffed around the clock, and tips may be provided anonymously.
For more information about the practice of female genital mutilation/cutting, view this Fact Sheet on FGM from the U.S. Department of State or visit the United Nations' Zero Tolerance Day website.
Department of Justice Recognizes Assistant U.S. Attorney Ronald DeWald for Outstanding Work on Project Safe NeighborhoodRead the Press Release
CHICAGO — The Department of Justice has recognized Ronald DeWald, an Assistant U.S. Attorney for the Northern District of Illinois, for his outstanding work in support of the Project Safe Neighborhood (PSN) initiative.
PSN is a nationwide initiative that brings together law enforcement, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Through the annual PSN Achievement Awards, the Department of Justice recognizes outstanding individual efforts in achieving safety and security in the United States. The Department in 2020 bestowed on Mr. DeWald an award for “Outstanding Individual Contribution to the PSN Program,” in recognition of his work designing and overseeing violent crime reduction strategies in Chicago and throughout northern Illinois.
“Ron DeWald has served the citizens of the Northern District of Illinois and the United States with tremendous distinction,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Violent crime can only be addressed with a multi-disciplinary effort involving federal, state, and local law enforcement, community members, and other stakeholders. Ron’s dedication has fostered these important relationships, and for that we owe him a debt of gratitude.”
Mr. DeWald has been an AUSA in Chicago for more than 15 years. In his current position as Counsel to the U.S. Attorney for Violent Crime, Mr. DeWald was instrumental in establishing and leading the office’s various violent crime efforts, including its Gun Crimes Prosecution Team, an initiative that has led to a substantial increase in the effectiveness of federal firearm prosecutions since its inception in 2018.
Mr. DeWald has taught courses at the Chicago Police Academy on federal firearm prosecutions, and he leads the Northern District’s PSN Forums, where state parolees are warned of the consequences of recidivism and presented with offers of social services. Research has found that ex-offenders who attend a notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.
Davenport Man Sentenced to Federal Prison for Distribution of Cocaine BaseRead the Press Release
DAVENPORT, Iowa — On February 9, 2021, United States District Court Judge Stephanie M. Rose sentenced Ira Lee Clark, age 29, of Davenport, to 168 months in prison for Distribution of Cocaine Base, announced Acting United States Attorney Richard D. Westphal. Following his prison term, Clark was ordered to serve five years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
Clark was involved in the distribution of significant quantities of cocaine and cocaine base. Clark acknowledged maintaining a premises for the purposes of manufacturing and distributing a controlled substance on Locust Street in Davenport. Clark also admitted to possessing a firearm related to his drug trafficking activities.
Clark’s criminal history includes convictions for Involuntary Manslaughter; Child Endangerment, Serious Injury Resulting and Eluding; and Aggravated Battery. Clark was under criminal justice supervision at the time of this offense.
This matter was investigated by the Davenport Police Department, Drug Enforcement Administration (DEA), and the Iowa Division of Narcotics Enforcement. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Charged with Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on February 2, 2021 and unsealed today, named Jacque Butler, 25, as the sole defendant.
According to the Indictment, on September 8, 2020, Butler, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and City of Duquesne Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cleveland man enters guilty plea to possession with intent to distribute 3 kilograms of cocaineRead the Press Release
A Cleveland man pleaded guilty in federal court on Tuesday to conspiracy to possess with the intent to distribute approximately three kilograms of cocaine. Jose Alfonzo Lopez, age 30, of Cleveland, Ohio, pleaded guilty to both counts of an indictment charging him with conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
According to the affidavit in support of the criminal complaint, in March of 2019, law enforcement officers began to suspect that Lopez was a drug supplier to several known drug dealers in the Cleveland area. Law enforcement began surveillance of a drug dealer they suspected was being supplied by a man later identified as Lopez. Throughout the course of several months, investigators utilized surveillance measures and controlled buys of cocaine from the dealer and learned that he was receiving his drugs from Lopez.
On November 8, 2019, law enforcement officers obtained and executed a search warrant for the Cleveland-area residence of Lopez. During the execution of the warrant, investigators seized approximately 3.2 kilograms of a substance that was later tested positive as cocaine.
Lopez is scheduled to be sentenced on June 15.
The investigation preceding the indictment was conducted by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Division of the FBI. The case is being prosecuted by Assistant United States Attorney Patrick P. Burke.
Cartel Money Launderer Sentenced to 96 Months in Federal PrisonRead the Press Release
ROANOKE, Va.- Ana Bella Sanchez-Rios, the former owner and operator of a Martinsville business used to launder more than $4.3 million in profits for an international drug cartel, was sentenced last week in U.S. District Court to 96 months in federal prison. Sanchez-Rios laundered the funds for the Jalisco New Generation Cartel (CJNG), a Mexican-based criminal organization considered by the Department of Justice to be one of the most dangerous transnational organizations in the world. Acting United States Attorney Daniel P. Bubar, Special Agent in Charge Jarod A. Forgot of the Drug Enforcement Administration’s (DEA) Washington Division, and Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations Washington, D.C. Field Office announced the sentence.
“When individuals launder money for a drug cartel, they play critical role for the organization by concealing and transferring illegally-obtained funds, which perpetuates the cartel’s illegal activity and the scourge of the narcotics the cartel pedals,” said Acting U.S. Attorney Bubar. “Money laundering investigations can be particularly difficult, and I’m proud of the hard work of our federal and state law enforcement partners in bringing Sanchez-Rios to justice.”
“Drug cartels like CJNG perpetrate unspeakable violence across the globe and drive the spread of deadly drugs like fentanyl and heroin,” said Jarod Forget, Special Agent in Charge of the DEA Washington Division. “We are committed to working with our partners to shut down these violent organizations in our area, often by tracking their illicit proceeds and disrupting these organizations at their bottom line. Today, these criminals' addiction to money and greed has met its consequence.”
Sanchez-Rios, 48, was indicted in March 2019 along with 12 members of CJNG on a variety of federal drug trafficking and money laundering charges. In June 2020, Sanchez-Rios pleaded guilty to conspiracy to commit money laundering and operating a business that transmitted criminally derived funds.
Sanchez-Rios owned and operated Bella’s Tortilla & Meat Market, a business that contracted with Intermex Wire Transfer, LLC. Sanchez-Rios admitted that from 2016 through 2018, she used the business to launder the drug trafficking proceeds on behalf of CJNG. Sanchez-Rios’ role was to receive U.S. currency from multiple individuals working for the CJNG, which she knew were the drug trafficking proceeds and derived from a criminal offense. Sanchez-Rios then wired that money to individuals in Mexico. The defendant conducted wire transfers in small amounts and falsified and fabricated the names and addresses of the senders in order to conceal the nature, location, source, ownership, and control of the funds.
In total, between May 10, 2016 and September 11, 2018, Sanchez-Rios transferred or caused to be transferred $4,394,959 in the proceeds of drug trafficking via Intermex from Bella’s Tortilla & Meat Market in Martinsville to individuals in Mexico.
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Homeland Security-Homeland Security Investigations, the Henry County Sheriff’s Office, and the Virginia State Police. Assistant United States Attorney Sean Welsh is prosecuting the case for the United States.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
California Private Equity Executive Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – A former senior executive at TPG Capital, a global private equity firm, pleaded guilty today in connection with his involvement in the college admissions case.
William E. McGlashan, Jr., 57, pleaded guilty to one count of wire fraud and honest services wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 12, 2021. McGlashan was charged in March 2019.
McGlashan, the former managing partner of TPG Growth and co-founder of The Rise Fund, admitted to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct McGlashan’s son’s exam answers to obtain a fraudulently inflated score. As a result, McGlashan’s son received a fraudulent ACT score of 34. McGlashan made a purported donation of $50,000 from his personal charitable donation fund to Singer’s sham charity. In turn, Singer paid Dvorskiy and Riddell.
Singer, Dvorskiy, and Riddell have pleaded guilty for their respective roles in the scheme.
Under the terms of McGlashan’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of three months in prison, two years of supervised release with 250 hours of community service and a fine of $250,000.
McGlashan is the 30th parent to plead guilty in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of wire fraud and honest services wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Charged with Conspiring to Commit COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Sean M. Andre, age 30, of Brooklyn, New York, appeared in court today on a complaint alleging that he worked with an Ulster County man to fraudulently obtain more than $4 million in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service (IRS)-Criminal Investigation; and Amaleka McCall-Brathwaite, Special Agent in Charge of the Eastern Region of the Office of Inspector General for the Small Business Administration (SBA-OIG).
A criminal complaint alleges that between June 24, 2020 and August 13, 2020, Andre and Jean R. Lavanture fraudulently obtained at least $4,184,781 in Paycheck Protection Program (PPP) loans, which were paid out to companies that Lavanture controls. According to the complaint, Andre and Lavanture worked together to submit loan applications that fraudulently claimed that Lavanture operated multiple companies each employing dozens of people and paying out millions of dollars in salaries per year. In fact, according to the complaint, none of these companies has ever reported employees to the New York State Department of Labor, nor reported income to the IRS. Lavanture paid Andre at least $157,578 for Andre’s role in the scheme.
The complaint charges Andre with conspiracy to commit bank fraud, conspiracy to commit wire fraud, and engaging in transfers of wire fraud and bank fraud proceeds of a value greater than $10,000. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Andre appeared today in Albany before United States Magistrate Judge Christian F. Hummel, and was ordered released with conditions.
If convicted of all of the charges set forth in the complaint, Andre faces up to 30 years in prison, up to 5 years of post-imprisonment supervised release, and a maximum fine of the greater of $1 million or twice his gross pecuniary gain or his victims’ gross pecuniary loss. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Lavanture, age 48, of Saugerties, New York, is charged by indictment with three counts of bank fraud. The indictment also seeks the forfeiture of assets that Lavanture allegedly obtained from his fraudulent scheme, including a mansion and estate in Byram Township, New Jersey; $614,479.70 in cash that federal agents found in the New Jersey mansion; a motel in Rockaway Beach, Missouri; a 2007 Bentley Continental GTC; and the funds in 17 bank accounts. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, IRS-Criminal Investigation, and SBA-OIG, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
Bronx, New York, Woman Arrested for Fraudulently Obtaining over $200,000 Worth of iPhonesRead the Press Release
NEWARK, N.J. – A Bronx, New York, woman was arrested today and charged with fraudulently obtaining over $200,000 worth of iPhones, Acting U.S. Attorney Rachael A. Honig announced.
Rosanna Lucrecia Cruel Blanco, 39, is charged by criminal complaint with one count of conspiracy to commit mail fraud and one count of aggravated identity theft. She is expected to make her initial appearance by videoconference today before U.S. Magistrate Judge Mark Falk.
According to documents filed in this case and statements made in court:
From Dec. 17, 2017, to December 2020, Blanco and her conspirators devised a scheme to fraudulently obtain replacement cellular phones from an insurance company – Company 1 – by assuming the identities of wireless customers and filing false claims under Company 1’s handset insurance program. The handsets were predominantly iPhones with a value of approximately $700 to $1,000 per handset.
Blanco and her conspirators contacted Company 1, posed as legitimate customers and submitted false claims to Company 1 for damage, theft, or loss on hundreds of handsets owned by the legitimate customers. Blanco and her conspirators provided Company 1 with false identification, typically in the form of a New York or New Jersey driver’s license falsified to reflect the name of the legitimate customer. They also provided Company 1 with new shipping contact names and addresses that were different from the actual customers. The new shipping addresses included locations in the Bronx, Yonkers, White Plains, Manhattan, and various locations in New Jersey.
Based on the false claims and the fake identification, Company 1 shipped the replacement iPhones telephones via UPS or FedEx to the new contact names and addresses provided by Blanco and her conspirators. The iPhones were then picked up by Blanco and her conspirators. More than 100 replacement cellular telephones were shipped to Blanco and her conspirators. Total losses from the scheme exceed $200,000.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must be served consecutively to any other sentence imposed.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Albuquerque man charged with firearms possessionRead the Press Release
ALBUQUERQUE, N.M. – Shawn Connell, 41, of Albuquerque, was charged in federal court on Feb. 8 with being a felon in possession of a firearm. Connell has been released from custody pending trial.
According to a criminal complaint, on the morning of Sept. 26, 2020, a Bernalillo County Deputy Sheriff allegedly observed Connell driving erratically and made a traffic stop. At first, Connell allegedly refused to comply with the Deputy’s commands, but eventually got out of his vehicle and was detained. A check revealed that Connell’s driver license had been surrendered.
Among the items found during an inventory of Connell’s vehicle was a handgun. As a previously convicted felon, Connell cannot legally possess a firearm or ammunition. If convicted, Connell faces up to 10 years in prison.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty.
The FBI Violent Crimes Task Force and the Bernalillo County Sheriff’s Office investigated this case. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
9 February 2021
West Palm Beach Man Charged with Unlawfully Operating Drone in Restricted Airspace Related to Super Bowl LVRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Kevin Jonathan Canty (33, West Palm Beach) with violating national defense airspace. If convicted, Canty faces a maximum penalty of one year in federal prison.
According to the complaint, on February 6, 2021, the Federal Aviation Administration (FAA) issued a temporary flight restriction (TFR) covering an area extending outward from downtown Tampa. This TFR, along with others, was issued as part of a comprehensive security plan designed to protect and secure the events leading up to, and including, Super Bowl LV. That day, FBI agents saw an unmanned aircraft system (UAS), commonly referred to as a “drone,” flying near the USF Health CAMLS building—an area within the TFR. FBI agents later located Canty, the operator of the drone, nearby in downtown Tampa. Canty stated that he is an FAA-licensed remote pilot drone operator and that he was aware that a TFR was in place for the Super Bowl. A review of his drone’s flight path showed that it had traveled through downtown Tampa, which was hosting public events related to the Super Bowl. Furthermore, according to the flight path, Canty had flown his drone over people and moving vehicles.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Warren County Man Charged with Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK - Terry Lajeunesse, age 49, of Pottersville, New York, was charged last month with obstruction of justice for attempting to convince another individual to admit guilt for crimes allegedly committed by Lajeunesse.
The announcement was made by Acting U.S. Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Lajeunesse is detained on an indictment charging him with possessing child pornography. The criminal complaint alleges that in September 2020, he mailed letters from the Rensselaer County Jail attempting to convince another person to admit to possessing the child pornography that is the subject of his indictment. The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Lajeunesse appeared on the complaint yesterday in Albany before United States Magistrate Judge Christian F. Hummel.
The charges carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Veronica Lewis Pleads Guilty to Interference with Commerce by Robbery and Possession of a Stolen FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Veronica Lewis, 36, of Worchester, Vermont pleaded guilty today to Interference with Commerce by Robbery, and Possession of a Stolen Firearm. United States District Judge Christina Reiss deferred acceptance of the plea agreement by the Court until sentencing, which has been scheduled for May 28, 2021. The agreement is contingent on Lewis pleading guilty in a prosecution commenced in Vermont’s courts by the Attorney General of the State of Vermont to Attempted Second Degree Murder of D.M. in violation of 13 V.S.A. §§ 2301 and 9.
At today’s hearing, Lewis admitted that on June 29, 2015, she met with a firearm instructor (D.M.) at his business in Westford, Vermont. D.M. provided Lewis a Smith and Wesson Model K-22 .22 caliber revolver for use during the lesson. After receiving instruction from D.M., Lewis intentionally fired three rounds from the Smith and Wesson at D.M., striking him in the face and torso. After shooting D.M., Lewis left the business with the Smith and Wesson, which was still loaded with three rounds of ammunition. Lewis also took six additional rounds of ammunition. Later in the day on June 29, 2015, Lewis was apprehended outside her residence in Worchester, Vermont while still in possession of the stolen firearm. During the plea hearing today, the government noted that in March 2020, a forensic psychologist examined Lewis, and opined that Lewis was sane at the time of the offense, meaning Lewis was able to appreciate the nature and quality and wrongfulness of her acts on June 29, 2015.
Lewis was initially charged in federal court on June 11, 2019 with Unlawfully Possessing a Firearm, in violation of 18 U.S.C. § 922(g)(4) and possessing a stolen firearm, in violation of 18 U.S.C. § 922(j) in relation to the shooting of D.M. on June 29, 2015. Lewis was ordered detained pending trial. On November 14, 2019, the federal grand jury in Burlington returned a Superseding Indictment, charging Lewis with Interference with Commerce by Robbery, in violation of 18 U.S.C. § 1951(a), Discharge of a Firearm During a Crime of Violence, in violation of 18 U.S.C. § 924(c), and Possession of a Stolen Firearm, in violation of 18 U.S.C. § 922(j). Lewis faced a mandatory minimum of 10 years imprisonment and up to life imprisonment on these charges, and up to a 5-year term of supervised release.
On December 11, 2019, Lewis was ordered to be evaluated by a forensic psychologist to determine her competency to stand trial, and whether she was sane at the time of the offense. On May 4, 2020, after the examination by a Bureau of Prisons forensic psychologist appointed by the court, Lewis was found competent to stand trial.
On January 5, 2021, Lewis entered a plea agreement with the United States, agreeing to plead guilty. In the plea agreement, Lewis agreed to waive an affirmative defense of insanity. The federal plea agreement, if accepted by the court, would require the imposition of a 72-month sentence, without any credit for the four years of time Lewis served in state custody prior to her federal arrest on June 12, 2019. The sentence also must run concurrently with any sentence imposed by the State of Vermont. The federal sentence, if imposed, would functionally result in Lewis serving a 10-year sentence concurrent to the disposition in Chittenden Superior Court. Lewis would also serve a 3-year term of federal supervised release concurrent to any supervision imposed in the state proceeding.
Attorney General T.J. Donovan announced that Lewis is set to be arraigned on February 11, 2021 in Chittenden Superior Court-Criminal on one count of Attempted Murder in the Second Degree. These charges stem from the same shooting of D.M. on June 29, 2015. Lewis is expected to enter a plea of guilty as outlined in a plea agreement. Under the proposed plea agreement, if accepted by the Court, Lewis will receive a sentence of 20 years to life, all suspended but 10 years of incarceration, and 40 years of State supervision with special conditions including, but not limited to, mental health treatment.
United States Attorney Nolan and Attorney General Donovan commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Vermont State Police.
In the federal matter, Lewis is represented by Assistant Federal Defender David McColgin. The federal prosecutor is First Assistant U.S. Attorney Jonathan Ophardt.