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2 February 2021
16 Plead Guilty in Coast Guard Test Score-Fixing SchemeRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced the guilty pleas of 16 defendants related to a test score-fixing scheme at a United States Coast Guard exam center.
The Honorable Barry W. Ashe accepted the pleas on January 20, 27, and 28, 2021, with each of the following defendants pleading guilty to unlawfully receiving an officer-level mariner license: JONATHAN ABBEY, RAFAEL ATKINS, ANTHONY BROWN, CHARLES FRANKS, JERRY FUDGE, DAVID GALVAN, JUSTIN GANDY, CARDELL HUGHES, EDWARD JONES, BRANDON MACK, HUGO MARQUEZ, MILES MARTS, DEVERICK MORROW, OCTAVIAN RICHARDS, ANTWAINE TRAVIS, and ROBERT WINTERS.
As admitted during their guilty pleas, these defendants obtained licenses by paying for false Coast Guard exam scores. The exams were designed to test their knowledge and training to safely operate under the authority of the licenses.
According to court filings, the fraudulently obtained licenses included, among others, those authorizing mariners to serve as the master of vessels of any tonnage in any waters, to serve as the chief mate of vessels of any tonnage in any waters, and to serve as the first assistant engineer of vessels of any horsepower in any waters. The master, also known as the captain, is the officer having command of a vessel and is ultimately held responsible for the safety of the crew, vessel, cargo and all aspects of the vessel’s operation. The chief mate of a vessel is the officer in charge of the deck department and is typically is responsible for navigation, keeping watch of the bridge, cargo, stability calculations, being the medical person in charge, and assuming command of the vessel if the master is unable to fulfill his duties. The first assistant engineer of a vessel is typically responsible for the upkeep of machinery, the manning and supervision of the engine room, and keeping watch of the engine room.
As alleged in the indictment, these defendants’ false scores were entered by Coast Guard credentialing specialist DOROTHY SMITH. The indictment alleges that SMITH accepted bribes in exchange for entering passing test scores and used a network of intermediaries to connect her to license applicants. The United States Attorney’s Office reiterated that the indictment’s allegation against SMITH is merely a charge and her guilt must be proven beyond a reasonable doubt.
Judge Ashe set sentencing dates for April and May, 2021. The maximum penalty for each conviction is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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1 February 2021
Youngstown man charged with possession of explosive devices and illegal firearmRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a federal grand jury in Cleveland returned a three-count indictment charging Oliver Smith, age 51, of Youngstown, Ohio, with possession of explosive devices, felon in possession of a firearm and possession of an unregistered silencer.
“This defendant allegedly possessed multiple, functional improvised explosive devices that presented a significant and unacceptable threat to others,” said Acting U.S. Attorney Bridget M. Brennan. “We are incredibly grateful to law enforcement for safely locating and securing these devices before anyone was seriously injured or killed.”
"This individual acquired dangerous explosive materials and firearms which he was prohibited from possessing,” said FBI Special Agent in Charge Eric B. Smith. “As in this case, the FBI encourages the public to report information like this to law enforcement and to stay alert for suspicious or criminal activity."
According to court documents, in October of 2020, the Adult Parole Authority (APA) and law enforcement agents learned that the defendant allegedly had in his possession a firearm with an attached silencer at his Youngstown-area residence. At the time of the incident, the defendant was on Community Control under the supervision of the APA related to a previous conviction of drug possession and was prohibited from possessing a firearm due to a previous conviction of aggravated assault.
Law enforcement agents conducted a home visit and searched the defendant’s residence under the authority of the APA. The affidavit in support of the criminal complaint states that during the search, law enforcement officers located and seized multiple rounds of ammunition and a firearm with an attached silencer that was not registered in the National Firearms Registration and Transfer Record, as required by law.
After learning more information about additional potential weapons in the defendant’s residence, law enforcement agents with the FBI executed a second search of the property. Officers recovered two arrows, which were allegedly modified and filled with explosive powder, wrapped in tape with nails, and tipped with detonators. Upon examination by FBI agents trained in explosive devices, these arrows were determined to be functional and could explode on impact.
Additionally, agents recovered two devices allegedly filled with explosive powder and ball bearings. Upon examination by FBI agents trained in explosive devices, these devices were determined to be functional and would explode upon electrical initiation, propelling the ball bearings as shrapnel.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the APA and the FBI. This case is being prosecuted by Assistant United States Attorney Duncan T. Brown.
Wilmington Daycare Owner Federally Indicted on Financial ChargesRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment on January 26, 2021, charging the owner and operator of a Wilmington daycare center with one count of wire fraud, one count of theft of government money, and three counts of tax evasion.
According to the indictment, Brenda Mathis, 56, inflated attendance records for her daycare center, L.J.’s Playpen Academy, Inc., to increase subsidies and payments she received from two federally-funded programs: Purchase of Care and Delaware Stars for Early Success. The Purchase of Care Program helps eligible, low-income families pay for childcare by providing subsidies to a daycare provider of the families’ choice. The Delaware Stars for Early Success Program disperses payments to daycare providers based on the quality of service.
According to the indictment, Ms. Mathis also under-reported the income from the daycare center, including the income received from these programs, on corporate tax returns for tax years 2015 through 2017.
Ms. Mathis is charged with one count of Wire Fraud, one count of Theft of Government Money, and three Counts of Tax Evasion. If convicted on the Wire Fraud count, Ms. Mathis faces a maximum penalty of 20 years in prison and a $250,000 fine. If convicted on the Theft of Government Money count, Ms. Mathis faces a maximum penalty of 10 years in prison and a $250,000 fine. The Tax Evasion counts each carry a maximum penalty of 5 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after taking into account the U.S. sentencing guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement and gave the following comment, “The defendant is charged with defrauding and stealing from federally-funded programs designed to ensure that families in Delaware receive affordable and high quality care for their children. She further increased her ill-gotten gains by failing to pay taxes on the stolen money. My office is committed to prosecuting those who illegally collect government funds for their own benefit, especially when those funds are stolen from programs meant to help Delaware’s children.”
"Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when people try to shirk their tax liability," said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Today, Brenda Mathis stands accused of doing just that; attempting to evade her tax liabilities. Those Americans who file accurate tax returns and pay their fair share can be assured that the government will hold accountable those who don't."
"The Department of Health and Human Services provides federal funding for daycare services to help children and their families," said HHS-OIG Special Agent in Charge Maureen Dixon. “HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of these important federal grant programs.”
USDA Office of Inspector General, Special Agent-in-Charge Bethanne M. Dinkins stated, “Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. Our joint investigation with the U.S. Department of Health and Human Services, OIG, IRS Criminal Investigation, and FBI identified those who sought to profit through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, to protect the integrity of these programs and bring to justice those who commit fraud.”
“When people steal from programs like these, social service programs suffer across the state of Delaware and tax payers’ funds are illegally diverted to those seeking to enrich themselves personally,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI is grateful for the cooperation and hard work of the many agencies in this case and we will continue to work together to aggressively target fraud in public programs.”
This case was investigated by IRS Criminal Investigation, U.S. Health and Human Services Office of the Inspector General, U.S. Department of Agriculture Office of the Inspector General and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lesley F. Wolf and Ruth E. Mandelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the U.S. District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Westerly Station Included in Justice Department Settlement with Amtrak over Disability Access: $2.25 Million Fund AvailableRead the Press Release
Amtrak has begun accepting claims for monetary compensation for people with mobility disabilities who traveled or wanted to travel from or to one of the 78 stations listed below, including the Westerly, Rhode Island station. Claims must be submitted by May 29, 2021.
On Dec. 2, 2020, the Department of Justice and Amtrak, the National Railroad Passenger Corporation, entered into an agreement to resolve the department’s findings of disability discrimination in violation of the Americans with Disabilities Act (ADA). Under the agreement, Amtrak will fix inaccessible stations and pay $2.25 million to victims hurt by inaccessibility at the 78 stations listed below.
To be eligible for monetary compensation, an individual must:
- Have a mobility disability;
- Be harmed physically or emotionally because of accessibility issues, including, for example, inaccessible parking; steep slopes or steps to get to the station; lack of directional signs; toilet rooms with inaccessible entrances, stalls, or sinks; high ticket counters; deteriorated platforms; and narrow routes at stations, at one or more the stations listed below between July 27, 2013, and Dec. 2, 2020;
- Have lived at, visited, or desired to visit a place closer to one or more of the stations listed below than an accessible, alternative Amtrak station; and
Submit a claim form and declaration by mail, fax, email or online to the claims administrator by no later than May 29, 2021. Help is available from the settlement administrator for those who are unable to complete the claim form due to a disability.
Questions about making claims should be directed to the settlement administrator by any of the following methods:
Online: AmtrakDisabilitySettlement.com
Email: [email protected]
Telephone (toll-free): 1-888-334-6165
TTY Telephone (toll-free): 1-866-411-6976
Questions about making claims should be directed to the settlement administrator by any of the following methods:
• Online: AmtrakDisabilitySettlement.com
• Email: [email protected]
• Telephone (toll-free): 1-888-334-6165
• TTY Telephone (toll-free): 1-866-411-6976
Under the agreement, Amtrak has committed to make its intercity rail stations accessible, prioritizing stations with the most significant barriers to access. Over the next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at 90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. As part of this commitment, Amtrak recently established an Office of the Vice President of Stations, Properties & Accessibility to coordinate its compliance with the ADA.
The 78 stations are:
• Tuscaloosa, Alabama
• Yuma, Arizona
• Fort Morgan, Colorado
• Glenwood Springs, Colorado
• Granby, Colorado
• Old Saybrook, Connecticut
• Windsor, Connecticut
• Windsor Locks, Connecticut
• Newark, Delaware
• Gainesville, Georgia
• Jesup, Georgia
• Toccoa, Georgia
• Centralia, Illinois
• Effingham, Illinois
• Gilman, Illinois
• Homewood, Illinois
• Mattoon, Illinois
• Plano, Illinois
• Princeton, Illinois
• Rantoul, Illinois
• Summit, Illinois
• Connersville, Indiana
• Crawfordsville, Indiana
• Elkhart, Indiana
• Hammond-Whiting, Indiana
• Waterloo, Indiana
• Burlington, Iowa
• Creston, Iowa
• Mount Pleasant, Iowa
• Newton, Kansas
• Topeka, Kansas
• Maysville, Kentucky
• South Shore-South Portsmouth, Kentucky
• Lake Charles, Louisiana
• Aberdeen, Maryland
• Cumberland, Maryland
• Niles, Michigan
• Detroit Lakes, Minnesota
• St. Cloud, Minnesota
• Staples, Minnesota
• Picayune, Mississippi
• Kirkwood, Missouri
• La Plata, Missouri
• Poplar Bluff, Missouri
• Cut Bank, Montana
• East Glacier Park, Montana
• Malta, Montana
• Holdrege, Nebraska
• Elko, Nevada
• Hudson, New York
• Plattsburgh, New York
• Port Henry, New York
• Devils Lake, North Dakota
• Coatesville, Pennsylvania
• Downingtown, Pennsylvania
• Johnstown, Pennsylvania
• Lewistown, Pennsylvania
• Parkesburg, Pennsylvania
• Westerly, Rhode Island
• Dillon, South Carolina
• Alpine, Texas
• Marshall, Texas
• McGregor, Texas
• Helper, Utah
• Castleton, Vermont
• Montpelier, Vermont
• Ashland, Virginia
• Clifton Forge, Virginia
• Petersburg, Virginia
• Richmond Staples Mill Road, Virginia
• Bingen-White Salmon, Washington
• Kelso-Longview, Washington
• Wishram, Washington
• Charleston, West Virginia
• Harpers Ferry, West Virginia
• Hinton, West Virginia
• Columbus, Wisconsin
• Tomah, Wisconsin
This action was brought by the Disability Rights Section of the Justice Department’s Civil Rights Division. To read the settlement agreement, please click here, and to read the complaint, please click here.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
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Walton, Indiana Woman SentencedRead the Press Release
SOUTH BEND – Arielle Griffis, age 31, of Walton, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon her plea of guilty to being a felon in possession of a firearm, announced Acting U.S. Attorney Bell.
Griffis was sentenced to 100 months of in prison followed by 3 years of supervised release.
According to documents in this case, in January of 2020, Griffis was wanted on a warrant when she led law enforcement on a high-speed car chase. During the chase, she threw a firearm and methamphetamine out of the car. Griffis has several prior serious drug convictions.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant U.S. Attorney Frank E. Schaffer.
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U.S.-Based Promoter of Foreign Cryptocurrency Companies Charged in over $11 Million Securities Fraud SchemeRead the Press Release
A California man was charged in a complaint unsealed today for his alleged participation in a coordinated cryptocurrency and securities fraud scheme that used purported digital currency platforms and foreign-based financial accounts.
John DeMarr, 55, of Santa Ana, was charged in a complaint filed in the Eastern District of New York with one count of conspiracy to commit securities fraud. DeMarr made his initial appearance this afternoon before U.S. Magistrate Judge John D. Early of the Central District of California. Judge Early referred the case to the Eastern District of New York for further proceedings.
“The indictment alleges an elaborate scheme in which the defendant conspired to lure unsuspecting investors with fraudulent promises of large returns in the cryptocurrency market, only to divert millions of dollars for his own personal use,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “While the technologies and methods are constantly changing, the Criminal Division’s commitment to aggressively pursuing fraud in all its forms remains unchanged.”
“As alleged, DeMarr made misrepresentations and false promises that coaxed investors into pouring millions of dollars into fraudulent cryptocurrency schemes, all to facilitate his extravagant lifestyle,” said Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York. “We will continue to root out and prosecute those who would cheat investors to line their own pockets.”
“Mr. DeMarr created an elaborate cryptocurrency scheme, complete with high profile endorsements and incredibly large returns that proved to be a mirage costing investors millions,” said Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office. “Mr. DeMarr is now in custody and no longer spending his victims' money, nor hiding from justice by faking his own disappearance.”
“In today’s hi-tech financial world there are increasingly more opportunities for fraudsters to take advantage of people and their bank accounts,” said Special Agent in Charge Ryan Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office. “John DeMarr’s Bitcoin operation is one such example of a cryptocurrency investment scheme that did not payoff for his investors. Claiming to be part of a cryptocurrency ‘ecosystem,’ DeMarr created nothing more than an elaborate fraud scheme where he stole his investors’ money to fund his own personal lifestyle, resulting in losses totaling over $11 million. Financial crimes never pay, as one way or another the person behind the computer will be caught and will be held accountable.”
As alleged in the complaint, between 2017 and 2018, DeMarr conspired with others to defraud numerous victims of $11.4 million by inducing them to invest in their companies, “Start Options” and “B2G,” based on materially false and misleading representations. Start Options purported to be an online investment platform that provided cryptocurrency mining, trading, and digital asset trading services. B2G was purportedly an “ecosystem” that would allow users to trade B2G tokens, provide digital wallet staking, and trade digital and fiat currencies “on a secure, comprehensive platform.”
According to the allegations, however, both Start Options and B2G were fraudulent. In approximately December 2017, DeMarr and others began offering securities in the form of investment contracts to U.S. and international investors through the Start Options website. Investments were accepted in Bitcoin, U.S. dollars, or Euros. To participate, investors had to deposit their funds for a specified contract period, after which they could purportedly withdraw their money at a significant profit.
Among other things, DeMarr and others falsely claimed that investor funds would be invested in digital asset mining and trading platforms that would earn them massive profits. In truth, however, the money was never invested and was instead diverted to accounts controlled by DeMarr and others and used for various personal expenditures, including the purchase of a Porsche, jewelry, and renovations to DeMarr’s home in California.
Similarly, according to the complaint, Start Options also purported to feature celebrity endorsements to promote its securities offerings. For example, a professional athlete purportedly endorsed Start Options when, as alleged in the indictment, the athlete had no involvement with Start Options and his name and likeness were used without his consent. Based on this and other fraudulent promotional materials, investors sent millions of dollars worth of Bitcoin, Ethereum, and fiat currency to financial accounts, including cryptowallets, controlled by DeMarr and others in the U.S. and abroad.
As alleged, in or about late January 2018, rather than permitting Start Options investors to withdraw money from their accounts after the requisite time period, DeMarr and others required investors to roll over their accounts into an unregistered “initial coin offering,” or ICO, of B2G, the second of the two fraudulent companies in which DeMarr was involved. Among other fraudulent misrepresentations, DeMarr and others falsely told investors that the ICO would raise capital for the company to build an “ecosystem” that would allow users to trade B2G tokens, provide digital wallet staking, and trading. In truth, investors never actually received any digital tokens and funds from the offering were not used to develop the B2G platform.
According to the complaint, DeMarr and others also paid various promoters, including an actor famous for martial arts films made in the 1980s and 1990s, to serve as a promoter and celebrity spokesperson, falsely claiming that B2G could generate an “8000%” return for investors within one year, and that he was a participant in the ICO. DeMarr and others also created false press releases and whitepapers about B2G, fabricated B2G account statements, and refused to allow investors to withdraw their money.
As alleged in the complaint, DeMarr staged his own disappearance to avoid facing disgruntled B2G investors. DeMarr instructed others to release statements asserting that DeMarr had been assaulted and went missing in Montenegro, and telling B2G investors to stop attempting to contact DeMarr or his family regarding their inability to have the money they invested in B2G returned. In truth, however, DeMarr did not disappear in Montenegro and instead was believed to be residing in California.
The charge in the complaint is based on allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and IRS-CI. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kaitlin Farrell, Hiral Mehta, and David Pitluck of the Eastern District of New York are prosecuting the case, with assistance on forfeiture matters from Assistant U.S. Attorney Laura Mantell.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
U.S.-Based Promoter of Foreign Cryptocurrency Companies Charged in over $11 Million Securities Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, a complaint was unsealed charging John DeMarr with conspiracy to commit securities fraud for his alleged participation in a cryptocurrency and securities fraud scheme. DeMarr was arrested this morning in Santa Ana, California, and will make his initial appearance this afternoon in U.S. District Court for the Central District of California.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Kristi Koons Johnson, Assistant Director-in-Charge, Federal Bureau of Investigation, Los Angeles Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the arrest and charge.
“As alleged, DeMarr made misrepresentations and false promises that coaxed investors into pouring millions of dollars into fraudulent cryptocurrency schemes, all to facilitate his extravagant lifestyle,” stated Acting U.S. Attorney DuCharme. “We will continue to root out and prosecute those who would cheat investors to line their own pockets.” Mr. DuCharme expressed his grateful appreciation to the U.S. Securities and Exchange Commission, New York Regional Office, for its assistance with the case.
“The complaint alleges an elaborate scheme in which the defendant conspired to lure unsuspecting investors with fraudulent promises of large returns in the cryptocurrency market, only to divert millions of dollars for his own personal use,” stated Acting Assistant Attorney General McQuaid. “While the technologies and methods are constantly changing, the Criminal Division’s commitment to aggressively pursuing fraud in all its forms remains unchanged.”
"Mr. DeMarr created an elaborate cryptocurrency scheme, complete with high profile endorsements and incredibly large returns that proved to be a mirage, costing investors millions," stated FBI Assistant Director-in-Charge Johnson. "Mr. DeMarr is now in custody and no longer spending his victims' money, nor hiding from justice by faking his own disappearance.”
“In today’s hi-tech financial world there are increasingly more opportunities for fraudsters to take advantage of people and their bank accounts,” stated IRS-CI Special Agent-in-Charge Korner. “John Demarr’s Bitcoin operation is one such example of a cryptocurrency investment scheme that did not payoff for his investors. Claiming to be part of a cryptocurrency ‘ecosystem,’ Demarr created nothing more than an elaborate fraud scheme where he stole his investors’ money to fund his own personal lifestyle, resulting in losses totaling over $11 million. Financial crimes never pay, as one way or another the person behind the computer will be caught and will be held accountable.”
As alleged in the complaint, DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud victims by inducing them to invest in two of his companies, “Start Options” and “B2G,” that purported to be online investment platforms providing digital asset trading services. Investments were accepted in Bitcoin, U.S. dollars or Euros for a specified contract period based on DeMarr’s false and misleading representations of significant profits, which he bolstered with bogus celebrity endorsements, false press releases and fabricated account statements. Instead of investing the funds in “Start Options” and” B2G,” DeMarr diverted the funds into other accounts he controlled and spent the money on a lavish lifestyle he maintained, which included the purchase of expensive jewelry, a Porsche and the remodeling of his California home.
Start Options also purported to feature celebrity endorsements to promote its securities offerings. For example, a professional athlete purportedly endorsed Start Options when, in fact, the athlete had no involvement with Start Options and his name and likeness were used without his consent. Based on this and other fraudulent promotional materials, investors sent millions of dollars’ worth of Bitcoin, Ethereum, and fiat currency to financial accounts, including cryptowallets, controlled by DeMarr and others in the U.S. and abroad.
According to the complaint, DeMarr and others paid various promoters, including an actor famous for appearing in martial arts films of the 1980s and 1990s, to serve as a promoter and celebrity spokesperson, falsely claiming that B2G could generate a massive return for investors within one year, and that he was a participant in the ICO.
In May 2018 to avoid facing disgruntled B2G investors, DeMarr attempted to feign his disappearance by directing others to release statements claiming that he had been assaulted to avoid facing disgruntled B2G investors. DeMarr directed others to release statements claiming that DeMarr had been assaulted and was missing in Montenegro, and instructing B2G investors to stop attempting to contact DeMarr or his family regarding their inability to have the money they invested in B2G returned. Since his alleged disappearance, DeMarr has been residing in California.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and IRS-CI. Assistant U.S. Attorneys Kaitlin T. Farrell, Hiral D. Mehta, and David C. Pitluck of the Eastern District of New York, assisted by EDNY Criminal Investigator Martin Sullivan, with Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case, Assistant U.S. Attorney Laura D. Mantell of the Eastern District’s Civil Division is handling forfeiture matters.
The Defendant:
JOHN DEMARR
Age: 55
Santa Ana, CaliforniaE.D.N.Y. Docket No.: 21-MJ-128
U.S. Attorney’s Office Collects Nearly $53 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
WHEELING - U.S. Attorney Bill Powell announced today that the Northern District of West Virginia collected $52,693,826.90 in criminal and civil actions in Fiscal Year 2020. Of this amount, $443,308.84 was collected in criminal actions and $52,250,518.10 was collected in civil actions.
“Protection of the public involves more than prosecuting criminal defendants. Criminal forfeitures, civil collections, and civil judgements are very important, but often difficult, tasks. I commend my staff on the resolve to ensure that the public treasury saw this significant benefit,” said Powell.
The Justice Department collected more than $15.9 billion in civil and criminal actions in fiscal year (FY) 2020 ending Sept. 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
In 2020, the Northern District of West Virginia secured a $50 million settlement from Wheeling Hospital, Inc. The hospital agreed to pay the United States a total of $50,000,000 to resolve claims that it violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti Kickback Statute. The settlement was announced and paid in September 2020. Read more here: https://www.justice.gov/usao-ndwv/pr/west-virginia-hospital-agrees-pay-50-million-settle-allegations-concerning-improperIn a criminal action, former pharmacist Scott Tingler of Morgantown was ordered to pay more than $1.845 million in a money judgement and more than $500,000 in restitution to the IRS and former employees for his drug distribution and tax crimes. He was sentenced to 121 months in prison in January 2020.
Two Youngstown-area physicians indicted for health care fraud and kickback schemes; third charged by bill of informationRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a grand jury sitting in Cleveland, Ohio returned an eleven-count indictment charging Samir Wahib, age 53, of Canfield, and Joni Canby, age 62, of Poland, for their roles in a scheme to defraud Medicare and Medicaid and obtain reimbursement for testing that was not medically necessary.
Michelle Kapon, age 41, of Youngstown, was also named in the indictment, but charged separately in a bill of information for conspiring with Wahib and Canby to accept kickbacks from Wahib.
“These defendants are physicians accused of orchestrating a scheme to defraud a tax-payer funded health care benefit program created to assist vulnerable populations,” said Acting U.S. Attorney Bridget M. Brennan. “Their alleged conduct, which included kickbacks and medically unnecessary testing, was designed specifically to enrich themselves. We are grateful for the hard work of the investigating agencies who, like us, are dedicated to bringing allegations of fraud and illegal kickbacks before the Court.”
“The payment of kickbacks is a corrupt and illegal practice that inappropriately influences an individual or entity’s capacity to make unbiased decisions, which is of particular concern in the health care environment,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General - Chicago Region. “Kickbacks can result in the overutilization of diagnostic testing and other services that ultimately lead to an increase in program costs, waste valuable tax-payer dollars, and can expose patients to medically unnecessary services. The OIG will continue to work with our law enforcement partners to ensure that those who choose to engage in this type of practice are held accountable.”
“These doctors schemed and defrauded a taxpayer-funded program that assists individuals in obtaining needed healthcare,” said FBI Special Agent in Charge Eric B. Smith. “Healthcare fraud is a concern to all of us; our tax dollars should be utilized responsibly, not to line the pockets of greedy physicians. The FBI will continue to work with our partners to ensure healthcare fraud is rooted out and those responsible answer in a court of law”
“Subjecting patients to unnecessary tests is bad medicine,” Ohio Attorney General Dave Yost said. “Stealing from taxpayer-funded healthcare while doing so is criminal, and that’s when we, and our federal law enforcement partners, come in.”
The indictment charges defendants Wahib and Canby with conspiring with Kapon to solicit, receive, offer and pay kickbacks in connection with a federal health care program; and it charges Wahib and Canby with conspiracy to commit health care fraud and health care fraud. Defendant Wahib is also charged with obstruction of a criminal investigation of federal health care offenses, as well as four additional counts of paying kickbacks in connection with a federal health care program. Defendant Canby is charged with two additional counts of receipt of kickbacks in connection with a federal health care program.
At the time of the allegations, Wahib was a Doctor of Osteopathic Medicine and an obstetrics and gynecological (“OBGYN”) specialist; Canby was a Doctor of Osteopathic Medicine and an OBGYN specialist and Kapon was a Doctor of Medicine. All three physicians were licensed in the State of Ohio and practiced medicine in the Youngstown area.
According to the indictment, Wahib is accused of conspiring, from March of 2014 through January of 2017, to pay kickbacks to Canby and Kapon to induce them to order gonorrhea and chlamydia testing to be performed by Wahib on specimens of Canby’s and Kapon’s patients. Wahib allegedly then billed and was paid by the federal government for this testing. Wahib and Canby are also accused of conspiring, through this scheme, to test Canby’s and Wahib’s patients when it was medically unnecessary to do so.
The indictment alleges that Wahib paid Canby and Kapon per specimen that they sent to him for testing. Wahib would then submit claims for reimbursement through the Medicaid and Medicare programs. Furthermore, Wahib allegedly provided Kapon, who was not an OBGYN specialist, with compensation in kind in the form of supervision of her OBGYN treatment of patients at a Youngstown-area hospital.
Wahib allegedly paid kickbacks with checks drawn on his business checking account, which he attempted to disguise as “physician coverage” by noting this on the memo line of the checks. Wahib intended to make these checks appear that they were payment for Canby and Kapon having treated Wahib’s patients when he was unavailable. The indictment further states that an employee and relative of Wahib, working on his behalf, provided Canby and Kapon with the necessary supplies to collect and retrieve the specimens. That employee would also retrieve the specimens from Canby’s and Kapon’s offices and perform testing of the specimens on a specialized machine at Wahib’s medical office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Department of Health and Human Services - Office of Inspector General, the FBI, and the Healthcare Fraud section of the Ohio Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Brendan O’Shea, and Special Assistant U.S. Attorney Jonathan Metzler of the Ohio AG’s Office.
Two Women Indicted on Charges Stemming from $100 Million Home Health Care Fraud and Money Laundering SchemeRead the Press Release
BOSTON – Two women were arrested yesterday and charged in connection with a $100 million home health care fraud scheme. The government also filed a civil action seeking forfeiture of five properties and 40 financial accounts and investments involved in a scheme to launder the ill-gotten gains.
Faith Newton, 52, of Westford, and Winnie Waruru, 41, of Lowell, were each indicted on one count of conspiracy to commit health care fraud; one count of health care fraud – aiding and abetting; and one count of conspiracy to pay and receive kickbacks. Newton was also indicted on one count of money laundering conspiracy and seven counts of money laundering. In addition, Waruru was indicted on two counts of making false statements and one count of making a false statement in a health care matter. Newton and Waruru were arrested yesterday and will make an initial appearance in federal court in Boston today at 1:30 p.m.
According to the indictment, from January 2013 to January 2017, Newton was part owner and operator of Arbor Homecare Services LLC. Waruru was a Licensed Practical Nurse employed as a home health nurse at Arbor. It is alleged that Newton and Waruru engaged in a conspiracy to use Arbor to defraud MassHealth and Medicare of at least $100 million by committing health care fraud and paying kickbacks to induce referrals. Newton then allegedly laundered the ill-gotten gains.
Specifically, it is alleged that Arbor, through Newton and others, failed to train staff, billed for home health services that were never provided or were not medically necessary and billed for home health services that were not authorized. Arbor, through Newton and others, developed employment relationships as way to pay kickbacks for patient referrals, regardless of medical necessity requirements. They also entered sham employment relationships with patients’ family members to provide home health aide services that were not medically necessary and routinely billed for fictitious visits that Newton knew did not occur. As alleged in the civil complaint, Newton either directly or through Arbor, targeted particularly vulnerable patients who were low-income, on disability and/or suffering from depression and/or addiction.
According to the indictment, Waruru and Arbor billed MassHealth for Waruru’s skilled nursing visits, many of which she did not perform. Waruru also passed cash payments from Newton to an Arbor patient to retain that patient.
Newton allegedly used the laundered proceeds of the $100 million scheme to purchase multiple homes and a Maserati and to fund investment accounts, a lavish lifestyle and numerous financial transactions. The civil forfeiture case seeks to forfeit to the United States five properties in Westford, North Andover, Chelmsford and Dracut and to forfeit the contents of 40 bank accounts and/or investments.
The charges of health care fraud, conspiracy to commit health care fraud, money laundering conspiracy and money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the money involved in the laundering. The conspiracy to pay kickbacks, make false statements and make false statement in health care matter each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Rachel Y. Hemani of Lelling’s Health Care Fraud Unit and David G. Lazarus, Chief of Lelling’s Asset Recovery Unit, are prosecuting the cases.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Virginia Men Sentenced for Unlawfully Transporting Waterfowl into the United States from CanadaRead the Press Release
Bismarck – United States Attorney Drew Wrigley announced, on February 1, 2021, United States Magistrate Judge Clare Hochhalter sentenced Larry Gene Childers, Jr., age 52 of Seaford, VA, on an offense of Unlawful Transport of Wildlife in Foreign Commerce (Lacey Act Violation), to two years probation and that this term of probation restrict Childers’ hunting privileges for a period of six months. Judge Hochhalter also sentenced Childers to pay a $7,500.00 fine to the Lacey Act Reward Account.
On October 17, 2019, Childers unlawfully transported 171 pounds of unidentifiable migratory waterfowl meat, approximately 207 birds, into the United States from Canada through the North Dakota Portal Port of Entry, in violation of Alberta, Canada law. During a search of Childers’ vehicle, United States Customs and Border Protection Officers located the 171 pounds of waterfowl meat in Childers’ truck after Childers stated on a customs declaration form that he was not bringing "meats, animals, animal/wildlife products" into the United States.
On March 11, 2020, codefendant Daniel Lusk, age 32, of Williamsburg, VA, pleaded guilty to Unlawful Transport of Wildlife in Foreign Commerce and, on November 9, 2020, was sentenced by Judge Hochhalter to 18 months’ probation for his role in this offense.
"This is an outrageous offense against all sport hunters and others who enjoy the splendor of North America’s migratory bird resource," said USA Drew Wrigley, "the regulation on such violations is aimed at preserving and enhancing the treasured outdoor experiences."
This case was investigated by the United States Fish and Wildlife Service and United States Customs and Border Protection, and was prosecuted by Assistant United States Attorney Jonathan J. O’Konek.
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Tacoma tax preparer pleads guilty to tax fraud schemeRead the Press Release
Tacoma, Washington – A 51-year-old Lakewood, Washington, man pleaded guilty today in U.S. District Court in Tacoma to aiding in preparation and presentation of false tax returns for his multi-year fraudulent tax preparation scheme, announced U.S. Attorney Brian T. Moran. REED, Jr., created “Just Us Tax Services” and later merged it with “Young’s Tax Services.” The companies filed tax returns fraudulently claiming inflated amounts of Earned Income Tax Credits (EITC) in order to increase clients’ tax refunds and therefore the fee they would receive for tax preparation. CLEO J. REED, Jr., admits operating the tax fraud scheme even after his father was sentenced to prison for the same conduct. Sentencing is scheduled for May 10, 2021 in front of U.S. District Judge Benjamin H. Settle.
According to records filed in the case, in 2011 and 2012, even as REED Jr.’s father’s tax preparation business was under investigation for preparing fraudulent returns, REED, Jr., opened and operated “Just Us Tax Service” so that his father could continue filing tax returns on behalf of clients, by filing them in the name of a tax preparation firm that was different than the name of the tax preparation firm the IRS was investigating. After opening Just Us Tax Services to assist his father, REED, Jr., also started filing fraudulent tax returns on behalf of some clients, however. In doing so, he used the same fraudulent technique utilized by his father’s tax preparation business.
When the IRS terminated REED Jr.’s tax preparation registration, he had an acquaintance open and register “Young’s Tax Service” in 2014 and continued filing tax returns with fraudulent entries for Earned Income Tax Credit. REED, Jr., filed the false returns from his home and from Everyday Essentials, the marijuana dispensary he owned and operated in Puyallup.
The total amount of tax loss to which REED, Jr., is admitting criminal liability is $39,899. REED, Jr., has agreed to make restitution to the IRS in that same amount. The IRS may still assess interest and civil tax penalties.
On October 31, 2013, the United States District Court Judge Benjamin H. Settle sentenced REED, Jr.’s father, CLEO REED, Sr., to a term of 30 months’ imprisonment for his role in the scheme. While he waited to report to prison, REED, Sr., told former clients that he was turning the tax preparation business over to his son as a result of both the criminal investigation of REED, Sr., and his failing health.
Aiding in preparation and presentation of false tax returns is punishable by up to three years in prison.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Arlen Storm.
State Lawmaker Indicted for Stem Cell Fraud Scheme, Illegally Distributing Prescription DrugsRead the Press Release
U.S. Attorney Tim Garrison announces a federal indictment against Patricia DergesSPRINGFIELD, Mo. – An elected Missouri state representative has been indicted by a federal grand jury for a fraud scheme in which she made false claims about a supposed stem cell treatment marketed through her clinics in southern Missouri, and for illegally providing prescription drugs to clients of those clinics.
“This defendant abused her privileged position to enrich herself through deception,” said U.S. Attorney Tim Garrison. “The indictment alleges she lied to her patients and she lied to federal agents. As an elected official and a health care provider, she deserves to be held to a high standard. This grand jury indictment exposes her deception and holds her accountable for her actions.”
Patricia “Tricia” Ashton Derges, 63, of Nixa, Missouri, was charged in a 20-count indictment returned under seal by a federal grand jury in Springfield, Mo. The indictment was unsealed and made public today following Derges’s self-surrender and initial court appearance.
This investigation began as a result of false or misleading statements made by Derges in April 2020 to a Springfield television station regarding her potential use of stem cells to treat COVID-19. Derges was elected in November 2020 as a Missouri state representative in District 140 (Christian County). Derges, who is not a physician but is licensed as an assistant physician, operates three Ozark Valley Medical Clinic locations in Springfield, Ozark, and Branson, Mo.
“We place our hope and our trust in health care providers and government officials,” said Timothy Langan, Special Agent in Charge of FBI Kansas City. “The defendant’s actions are not only a betrayal of that trust, but her actions erode the very core of our confidence in a system we rely on. Derges vowed to do no harm as a health care professional and was elected to serve the people, not deceive them. She used her position for personal gain and damaged the public’s trust.”
“Medical professionals who knowingly abuse their power by prescribing medications, without ensuring they are for legitimate medical purposes, take advantage of the public’s trust,” said Inez Davis, St. Louis Division Diversion Program Manager for the Drug Enforcement Administration. “With the support of our enforcement partners, DEA will investigate to the maximum extent of our ability to ensure these individuals are prevented from risking lives within our communities.”
“Ms. Derges knowingly provided false information and made false claims about the medical treatment she was providing, and these falsehoods may have significant consequences for the patients she served,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold accountable individuals who abuse their positions of power to prey on unsuspecting individuals.”
Wire Fraud Scheme
The federal indictment charges Derges with eight counts of wire fraud related to five specific victims (identified by their initials).These five victims were among those who lost a total of nearly $200,000 in the fraud scheme, which lasted from December 2018 to May 2020.
During this time, Derges exclusively obtained amniotic fluid, which she marketed under the name Regenerative Biologics, from the University of Utah. Derges advertised Ozark Valley Medical Clinic as a “Leader in … Regenerative Medicine,” including stem cells, and marketed her “stem cell” practice through seminars, media interviews, and social media. The federal indictment cites an August 2019 seminar in which Derges told her audience that the amniotic fluid she used in her stem cell practice was a “stem cell shot” and that it contained “mesenchymal stem cells.” According to the indictment, Derges made similar claims in personal consultations.
In fact, however, the amniotic fluid Derges administered to her patients did not contain mesenchymal stem cells, or any other stem cells. The amniotic fluid she obtained from the University of Utah was a sterile filtered amniotic fluid allograft (a tissue graft comprised of human amniotic membrane and amniotic fluid components derived from placental tissue). The amniotic fluid allograft was “acellular,” meaning it did not contain any cells, including stem cells.
Despite being told that the University of Utah’s amniotic fluid allograft was “acellular” and did not contain mesenchymal stem cells, Derges allegedly continued to tell her patients and the public that the amniotic fluid allograft contained stem cells.
Derges administered amniotic fluid, which she falsely claimed contained stem cells, to patients who suffered from, among other things, tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, erectile dysfunction, and urinary incontinence. In an April 11, 2020, Facebook post Derges wrote of amniotic fluid allograft: “This amazing treatment stands to provide a potential cure for COVID-19 patients that is safe and natural.”
The University of Utah sold its amniotic fluid allograft to Derges for approximately $244 per milliliter and $438 for two milliliters. Derges charged her patients $950 to $1,450 per milliliter. In total, Derges’s patients paid her approximately $191,815 for amniotic fluid that did not contain stem cells.
The Controlled Substances Act
The federal indictment charges Derges with 10 counts of distributing Oxycodone and Adderall over the internet without valid prescriptions.
The indictment alleges that Derges, without conducting in-person medical evaluations of the patients, wrote electronic prescriptions for Oxycodone and Adderall for patients and transmitted them to pharmacies over the internet.
Because none of the assistant physicians whom Derges employed at Ozark Valley Medical Clinic could prescribe Schedule II controlled substances, the indictment says, it was the standard practice of the assistant physicians to see a patient and later communicate to Derges the controlled substances they wanted her to prescribe to their patients. Derges, allegedly without conducting an in-person medical evaluation of the patients, wrote electronic prescriptions for the patients and transmitted the prescriptions over the internet to pharmacies.
False Statements
The federal indictment charges Derges with two counts of making false statements to federal agents investigating this case in May 2020.
Derges allegedly told agents that the amniotic fluid allograft that she used in her practice contained mesenchymal stem cells, which she knew was false. Derges also allegedly told federal agents that she had not treated a patient for urinary incontinence with amniotic fluid allograft, which she knew was false.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Assistant Physician
Derges is not a physician but is licensed as an assistant physician. An assistant physician is a mid-level medical professional in the state of Missouri. Under Missouri law, medical school graduates who have not been accepted into a residency program but have passed Step 1 and Step 2 of the United States Medical Licensing Examination may apply to become an assistant physician. State law mandates that assistant physicians practice pursuant to a collaborative practice arrangement with a licensed physician.
Derges obtained her medical degree from the Caribbean Medical University of Curacao in May 2014 but was not accepted into a post-graduate residency program. Derges was licensed as an assistant physician by the state of Missouri on Sept. 8, 2017.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by the FBI, Health and Human Services – Office of Inspector General, and the DEA.
Derges Indictment.pdfSmith County Lawyer Guilty of Employment Tax ViolationsRead the Press Release
TYLER, Texas – A Tyler, Texas attorney pleaded guilty today to federal employment tax violations announced Eastern District of Texas Acting United States Attorney Nicholas J. Ganjei.
John Bennett White IV, 60, pleaded guilty to an information charging him failure to pay employment taxes today before U.S. Magistrate Judge K. Nicole Mitchell.
“Mr. White withheld taxes from his employees’ paychecks but repeatedly failed to turn those funds over to the IRS,” said Acting United States Attorney Nicholas Ganjei. “White instead chose to pocket his employees’ tax payments to fund his lifestyle. This sort of conduct harms every taxpayer, not only because of the lost public revenue, but also because of the expense of recovering the lost funds from individuals such as White.”
According to court documents and statements made in court, White was an attorney and firm manager for a Tyler law firm, J. Bennett White, P.C., where White had significant control over the finances of the firm and had a duty to account for and pay over the employment taxes on behalf of the firm’s employees to the IRS.
Between the second quarter of 2007 and the fourth quarter of 2015, White made sporadic and partial efforts to pay his firm’s employment tax liabilities. For multiple quarters during the same period White caused employment taxes to be withheld from the law firm’s employees’ wages, but willfully failed to fully pay those trust fund taxes of to the IRS. White filed Forms 941 reporting the law firm’s employment taxes for each of these quarters. White paid the full amount owed the IRS for 24 of those 38 quarters. White made partial payments on 10 occasions and no payment for seven quarters. In total, White caused a tax loss of over $300,000. Instead of paying employment taxes, White paid other creditors and his own personal expenses.
Under federal statutes, White faces up to five years 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.
This case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ryan Locker.
Quebec Man Indicted by A Federal Grand Jury for Multi-Million Dollar Fraud Scheme Targeting Elderly VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Martin Hogan, 52, of Montreal, Quebec, CA, with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and international money laundering conspiracy. The charges carry a maximum of 30 years in prison, and a $250,000 fine.
“We will not allow anyone, including foreign actors, illegally enrich themselves by preying on our elderly,” stated U.S. Attorney Kennedy. “Criminals who defraud and threaten U.S. citizens by phone will not escape justice by placing their calls from outside our country. As this case shows, we will find you, and we will bring you to justice.”
IRS-Criminal Investigation Special Agent in Charge Jonathan D. Larsen said, “Telemarketing schemes that attempt to take advantage of the elderly as evidenced in the indictment of Mr. Hogan are among the most reprehensible, and IRS Criminal Investigation remains committed to using the resources of our agents and financial expertise to bring these criminals to justice along with our law enforcement partners.”
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between September 2015 and March 2020, the defendant conspired with multiple co-defendants to defraud elderly victims using a fraudulent telemarketing scheme.
According to the indictment, Hogan would place telephone calls from Canada to victims in the United States and tell victims that they had won the Canadian lottery. However, before collecting their winnings, victims had to first pay the taxes, brokerage fee, and/or custom fees due in connection with the winnings. Victims were instructed by the defendant and others to pay these taxes, brokerage fees, and/or custom fees by wire transferring funds to a bank account in Rochester, NY, controlled by co-defendant Bernard Perkins, or by mailing funds to Perkins or addresses in the United States controlled by co-defendants Anthony Laughing, Jr., Cory LaPlant and others.
After receiving funds from victims, defendants Bernard Perkins, Anthony Laughing, Jr., and Cory LaPlant would keep a small portion of the funds and then pay co-defendants Devlin Laughing and Brenda Garrow to smuggle the remaining funds from the United States to the defendant Hogan in Canada.
As a result of this fraudulent telemarketing scheme, defendant Hogan and his co-defendants caused approximately 37 victims over the age of 55 to mail approximately 200 packages and wire transfer funds totaling approximately $2 million.
The defendant was extradited from Jamaica to the United States and was arraigned this morning before U.S. Magistrate Judge Mark W. Pedersen. Hogan is being held pending a detention hearing on March 1, 2021, at 10:00 a.m.
Defendants Bernard Perkins, Anthony Laughing, Jr., Devlin Laughing, and Cory LaPlant, were previously convicted and are awaiting sentencing. Defendant Brenda Garrow was previously convicted and sentenced to three years probation.
The indictment is the result of an investigation by Homeland Security Investigations, Border Enforcement Security Task Force, under the direction of Special Agent-in-Charge Kevin Kelly, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendant’s extradition from Jamaica.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pain Clinic Pays More Than $1.6 Million to Settle False Claims Act and Kickback AllegationsRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces that Collier Anesthesia Pain, LLC, a pain management clinic located in Fort Myers, Florida, and Tampa Pain Relief Center, Inc., have agreed to pay $1,665,000 to resolve allegations that they violated the False Claims Act and Anti-Kickback Statute. As part of the settlement, the United States contends that Collier Anesthesia and Tampa Pain engaged in an illegal kickback scheme by causing affiliated surgery centers to waive copayments for surgical facility fees in order to induce patients to receive injection procedures. Additionally, the United States contends that Collier Anesthesia and Tampa Pain knowingly submitted false claims by improperly billing for evaluation and management services and psychological testing services.
“Kickback arrangements have no place in federal healthcare programs,” said United States Attorney Chapa Lopez. “This settlement reflects our continuing efforts to target improper payment schemes and our intention to advocate for the proper care of government-funded healthcare program beneficiaries.”
“Providers that submit false claims squander Federal health care funds and compromise the integrity of the Federal health care program,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG. “This settlement demonstrates our commitment to ensuring that all taxpayer funds are spent appropriately.”
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Office of Personnel Management Office of the Inspector General. The investigation was led by Assistant U.S. Attorneys Randy Harwell and David P. Sullivan.
The claims resolved by the settlement are allegations only and there has been no determination of liability. The civil settlement resolves the following captioned case: United States, et al. v. Wayne Isaacson, M.D., et al., 2:17-cv-352-TPB-NPM.
Omaha Man Sentenced to 221 Months for Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that John A. Duncan, age 37, of Omaha, Nebraska, was sentenced today to 221 months’ imprisonment for receipt and distribution of child pornography by Senior United States District Judge Joseph F. Bataillon. There is no parole in the federal system. After his release from prison, Duncan will be on supervised release for life and will be required to register as a sex offender. In addition, the terms of Duncan’s supervised release prohibit him from having any contact with children under the age of 18, unless it is approved by the United States Probation Office. He was ordered to pay $22,000 in restitution.
An investigation conducted by the FBI determined that in July of 2019, Discord, Inc., a digital file sharing application, reported that between February 9, 2019 and March 3, 2019, several files of minors under the age of 12 engaging in sexually explicit conduct were distributed at various times to other users of that application. Discord captured multiple Internet Protocol (IP) addresses and an associated email account that was used to upload the images of the minors. The FBI obtained information related to the IP addresses and email account, which ultimately identified Duncan as being associated with the Discord account at the time the child pornography was distributed. The FBI further determined that Duncan resided in Omaha, Nebraska.
The FBI executed a federal search and seized Duncan’s cellular phone. Forensic analysis of the cellular phone found 42 images of minors engaging in sexually explicit conduct, including the specific images of minors engaging in sexually explicit conduct that were identified in the Discord application distributions. Duncan admitted that he distributed the child pornography from Omaha.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Ohio Man Sentenced to Federal Prison for Meth DistributionRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today that Marvin Keaton, 39, of Columbus, Ohio, was sentenced to 57 months in prison for distribution of methamphetamine.
“Meth is a scourge on our communities,” said United States Attorney Mike Stuart. “But each and every day, in partnership with law enforcement, we take meth dealers off the streets and hold them accountable.”
Keaton admitted that on February 25, 2020, he met a person on the 1900 block of 12th Avenue in Huntington and sold them 10.159 grams of methamphetamine in exchange for $200. On March 3, 2020, Keaton sold the same person 20.837 grams of methamphetamine in exchange for $400.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00112.
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Ohio County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Patrick A. Groves, of Wheeling, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Groves, 30, pleaded guilty today to one count of “Unlawful Possession of a Firearm and Ammunition.” Groves, who is prohibited from having a gun, admitted to having a 9mm caliber pistol and ammunition in April 2020 in Ohio County.
Groves faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
North Texas Child Predator Sentenced to 50 Years in PrisonRead the Press Release
An Arlington, Texas man was sentenced to 50 years in federal prison for the exploitation of children and related child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Terry Ray Carter, 34, pleaded guilty in September to sexual exploitation of children and transportation of child pornography. He was sentenced Friday before U.S. District Judge Reed C. O'Connor.
“This sentence sends a clear message to those who seek to victimize children,” said Acting U.S. Attorney Prerak Shah. “The Department of Justice will use every tool available to remove predators from the street or internet, and put them behind bars.”
“The FBI will continue working with our partners to apprehend and hold child predators accountable for their actions,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We ask the public to alert us and local law enforcement if they suspect anyone is a victim of child exploitation.”
In June 2020, the FBI Kansas Field Office served a federal search warrant in Kansas City, Kansas for an individual who was allegedly involved in child pornography crimes. The subject of the investigation identified another individual he was chatting with on social media who was believed to be engaged in the production of child pornography.
Based on this tip, authorities began investigating Mr. Carter and established an undercover social media profile, according to court documents. Using the screenname “alucard83,” Mr. Carter exchanged messages with an undercover officer. During communications, Mr. Carter acknowledged committing sexual acts with a minor and sent the undercover officer images and videos of child pornography.
A federal search warrant for Mr. Carter’s residence in Arlington, Texas, was executed in July 2020. When agents arrived, Mr. Carter agreed to be interviewed. During the interview, Mr. Carter confirmed that he sent and received child pornography through a social media application. He also confessed to producing multiple child pornography images and videos using his cell phone at his Arlington, Texas home.
The FBI Dallas Field Office conducted the investigation. Assistant U.S. Attorney A. Saleem prosecuted the case.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative brings together federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carlentez McDaniel, of Morgantown, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
McDaniel, 32, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” McDaniel, who is prohibited from having a gun, admitted to having a .45 caliber Glock pistol in February 2020 in Monongalia County.
McDaniel faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Michigan Man Sentenced to over A Year in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Layce Owens (43, Michigan) to 12 months and a day in federal prison for failing to register as a sex offender in Florida. Owens had pleaded guilty on October 28, 2020.
According to court documents, Owens was convicted of sodomizing a 13-year-old child in Michigan in 2001. As a result, he was required to register as a sex offender when he moved to New Smyrna Beach, Florida in 2019, but he failed to do so.
This case was investigated by the United States Marshals Service, the Volusia County Sheriff’s Office, and the Allegan County Sheriff’s Office (Michigan). It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Marion County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Joshua Hardesty, of Rivesville, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Hardesty, 40, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Hardesty, who is prohibited from having a gun, admitted to having a .40 caliber pistol in March 2020 in Marion County.
Hardesty faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fairmont Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Pleads Guilty to Violating Endangered Species ActRead the Press Release
A New York man pleaded guilty in U.S. District Court to selling a mounted leopard, which is an endangered species.
Michael T. Merisola, 62, of Buffalo pleaded guilty Jan. 29 to one count of violating the Endangered Species Act before U.S. Magistrate Judge Chelsey M. Vascura.
According to his plea, in August 2019, Merisola posted a photograph on his Instagram page that included a mounted leopard in the background. An undercover special agent with the U.S. Fish and Wildlife Service communicated with Merisola about buying the leopard from the defendant. The two discussed the illegality of buying/selling a leopard across state lines.
Merisola said he wanted $4,200 for the leopard, and the undercover agent traveled from Ohio to Buffalo to see the mounted animal and make a down payment to purchase it. Merisola later accepted the remaining payment and shipped the leopard from New York to Ohio.
Leopards are classified under federal regulations as threatened or endangered wherever they are found.
Special Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio and Trial Attorney Adam C. Cullman from the Justice Department’s Environment and Natural Resources Division are prosecuting the case.
Luzerne County Woman Sentenced to Nine Years in Prison for Role in Methamphetamine Trafficking ConpiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amanda Boyle, age 37, of Sweet Valley, Pennsylvania, was sentenced on January 29, 2021, by U.S. District Court Judge Robert D. Mariani to nine years’ imprisonment for her role in a Luzerne County-based methamphetamine trafficking conspiracy.
According to Acting United States Attorney Bruce D. Brandler, Boyle previously pleaded guilty and admitted to participating in a conspiracy to distribute between 1.5 kilograms and 5 kilograms of crystal methamphetamine in the Luzerne County area between January 2017 and December 2018. Boyle was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Luzerne, Lackawanna and Schuylkill Counties
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Local man pleads guilty to unlawfully possessing pipe bombRead the Press Release
DAYTON – A Dayton man pleaded guilty in U.S. District Court here today to unlawfully possessing a pipe bomb.
Michael J. Rhea, 27, pleaded guilty to possessing an unregistered explosive device and to illegally possessing the explosive device as a frequent user of controlled substances.
According to court documents, in March 2020, officers with the Kettering Police Department encountered Rhea, who had a warrant out for his arrest. Officers explained to Rhea that he was going to be detained and discovered three methamphetamine pipes and a pipe bomb on Rhea and in his vehicle.
The Dayton Police Department’s Regional Bomb Squad was called to the scene and safely removed the pipe bomb, which had a protruding fuse and was filled with powder and BBs.
During a prior arrest, Rhea told law enforcement he uses methamphetamine daily.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Richard S. Biehl and Kettering Police Chief Christopher N. Protsman announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Dwight K. Keller and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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Las Cruces woman pleads guilty to wire fraud and fraudulent tax returnsRead the Press Release
ALBUQUERQUE, N.M. – Sandra Roberto, 42, of Las Cruces, New Mexico, pleaded guilty in federal court on Jan. 29 to wire fraud and fraudulent tax returns stemming from an embezzlement scheme.
According to court records, from 2011 to 2018, Roberto used her position in the accounting department for Mesilla Valley Transportation (MVT) to embezzle over a million dollars. As MVT’s primary contact with two third-party payment processors, Roberto deposited checks ranging from $400 to $975 into her personal bank account. Upon discovering her embezzlement scheme, MVT terminated her employment in 2018.
In addition to wire fraud, Roberto also falsified her income tax returns by failing to report any of the illegally embezzled funds to the IRS. For example, in 2017, Roberto embezzled $217,260, but only reported $31,932 as taxable income. The Form 1040 U.S. Individual Tax Return includes a declaration that the information is reported under the penalties of perjury.
Roberto faces up to 20 years in prison.
The FBI and IRS Criminal Investigation investigated this case. Assistant U.S. Attorneys Ry Ellison and Richard C. Williams are prosecuting the case.
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Lakeland Man Indicted on Theft of Public Money and Aggravated Identity Theft ChargesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Julio Gonzalez (45, Lakeland) with four counts of theft of public money and two counts of aggravated identity theft. If convicted, Gonzalez faces a maximum penalty of 10 years’ imprisonment for each of the theft of public money counts and a mandatory minimum penalty of 2 years in federal prison for the aggravated identity theft counts. The indictment also notifies Gonzalez that the United States is seeking a money judgment of $110,102.90, the proceeds of the alleged offense.
According to the indictment, Gonzalez used the identity of another individual to commit Social Security fraud and theft of government funds. The indictment also alleges that between approximately February 2014 and February 2018, Gonzalez stole Social Security benefits being paid out on behalf of four different individuals.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Social Security Administration, Office of the Inspector General. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney James Muench.
Kurt R. Erskine named acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
ATLANTA - Kurt R. Erskine has been named Acting U.S. Attorney for the Northern District of Georgia effective February 1, 2021, by virtue of the Vacancies Reform Act. Bobby L. Christine resigned as Acting U.S. Attorney for the Northern District of Georgia, but remains the Presidentially-appointed U.S. Attorney for the Southern District of Georgia.
Incarcerated Southside Locos Member Sentenced to More Than 20 Additional Years in Federal Prison for a Drug Trafficking Conspiracy Orchestrated from PrisonRead the Press Release
OKLAHOMA CITY – Last week, KEVIN VIGIL JR., 29, of Oklahoma City, and a member of the Southside Locos gang currently incarcerated in state prison, was sentenced to serve an additional 250 months in federal prison for his involvement in a methamphetamine distribution conspiracy, announced U.S. Attorney Timothy J. Downing.
On December 4, 2019, a federal grand jury returned an 81-count Indictment charging Vigil and dozens of co-defendants with crimes related to a large-scale drug trafficking operation orchestrated from state prison. According to the Indictment, the operation primarily focused on distributing methamphetamine and heroin, using contraband cell phones from prison.
On July 29, 2020, Vigil pleaded guilty to Count 1 of the Indictment, alleging a drug conspiracy to distribute methamphetamine. The remaining counts of the Indictment pertaining to Vigil were dismissed pursuant to his guilty plea.
According to court documents and public records, Vigil is a member of the Southside Locos prison gang serving an 18-year sentence with the Oklahoma Department of Corrections for several offenses, including assault and battery with a deadly weapon, following his shooting of a man in Oklahoma City in 2010. From 2018 to 2019, Vigil and other incarcerated Southside Locos gang members used non-incarcerated gang members and associates to facilitate the distribution of drugs, to collect drug-related proceeds, and to traffic firearms throughout Oklahoma.
On January 26, 2021, Senior U.S. District Judge Stephen P. Friot sentenced Vigil to serve 250 months in federal prison beginning after the completion of his time in state prison, which is currently scheduled to end in March 2026. Judge Friot also ordered 25 years of supervised release to follow the completion of Vigil's federal prison term. At the sentencing hearing, Judge Friot noted Vigil’s role in the gang organization and his continued propensity to engage in criminal activity despite incarceration. Vigil is the first defendant to be sentenced from this Indictment.
This case resulted from a nearly two-year investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division, the Oklahoma City Police Department, and the Oklahoma Department of Corrections—Security Threats Intelligence. The investigation ultimately led to the federal indictments of more than 40 defendants related to this drug trafficking enterprise. Thirty-five defendants have already pleaded guilty, and five defendants are still awaiting trial or plea hearings due to this investigation.
This prosecution is also a part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Jason Harley and David McCrary prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Houston man ordered to prison for more than 40 years for multiple Christmas week robberiesRead the Press Release
HOUSTON – A 43-year-old local man has been sentenced to nearly 42 years for the robberies of multiple phone and others stores during Christmas week in 2017, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury deliberated for two hours before returning guilty verdicts against Robert Charles Wooten following a two-day trial. He was convicted of five counts of interference with commerce by robbery and five related charges of using, carrying or brandishing a firearm during and in relation to a crime of violence.
Today, U.S. District Lynn H. Hughes handed Wooten a combined 80-month sentence for the robberies. He also received an additional 420 months for the firearms charges which must be served consecutively to the other sentence imposed. At the hearing, the court noted that although his prior offenses were not violent in nature, Wooten is a menace to society.
“This investigation shows the impact that law enforcement has against violent criminals who use firearms,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Wooten was convicted of the armed robbery of the Walgreens on Little York on Christmas Day in 2017. Over the course of the next five days, he also committed the robberies of three Metro PCS stores, Bayou Pawn on Shepherd and Family Dollar on Tidwell, all located near his residence.
At trial, the jury heard Wooten has numerous tattoos on his face, but would enter the commercial businesses wearing make-up, cream or bandages to aid in covering them. He would then show a gun to the employees and demand money.
Testimony revealed that during the Dec. 25 Walgreens robbery, he waited in line before approaching the victim. He then showed a firearm and demanded the cashier place money and cigarettes into a duffle bag he had brought with him into the store.
He then committed similar robberies of the Metro PCS on North Shepherd and W. Little York, Dec. 27 and 28, respectively, during which time employees were frightened and complied with his demands.
Then, on Dec. 29, Wooten entered the Bayou Pawn – a shop where he would frequently conduct business. Upon his arrival, he initially acted as though he wanted to sell a bicycle. Once the employee was near him, Wooten pushed a firearm into her side and demanded money. The employee was afraid.
The manager of the store testified that he had been watching from the back. He saw Wooten put his hands on the employee and came out to confront him, not knowing Wooten was actually trying to rob the store. Wooten acted as if nothing was wrong and asked the manager to come outside and look at the bicycle. The victim then called the police.
The same day, Wooten asked his son to drive him to a separate Metro PCS. He did so and went door to Family Dollar. Soon after, Wooten stuck his head inside the store and told his son they needed to leave immediately. Wooten’s son got in the car, but noticed people taking photos of him, his dad and his vehicle. He asked Wooten about it, but he just ordered his son to drive.
The son later learned his dad had robbed the Metro PCS and alerted authorities.
Authorities identified Wooten based on the make-up and similar items he used in the robberies. Several victims also testified and identified him as the one who terrorized them during the robberies.
The defense attempted to convince the jury that the witnesses had misidentified Wooten. They did not believe those claims and found him guilty as charged.
Wooten has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and Houston Police Department conducted the investigation.
Assistant U.S. Attorneys Jill Stotts and Erin Epley are prosecuting the case.
Hospital researcher sentenced to prison for conspiring to steal trade secrets, sell them in ChinaRead the Press Release
COLUMBUS, Ohio – A former Dublin, Ohio woman was sentenced in U.S. District Court today to 30 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Li Chen, 47, also conspired to commit wire fraud.
Chen admitted in her guilty plea in July 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.
Chen and her husband, co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen started a company in China to sell the kits.
Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. She also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
“Chen and her husband executed a scheme over the course of several years to set up businesses in China, steal American research and profit from doing so,” U.S. Attorney David M. DeVillers said. “Chen willingly took part in the Chinese Government’s long-term efforts to steal American intellectual property. She deserves time in federal prison.”
“Chen’s sentencing today is a recognition of the seriousness of this offense,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “Chen admitted to abusing the trust of Nationwide Children’s Hospital by stealing cutting-edge research to establish a company in China for her own financial gain. This sentence should serve as a deterrent to anyone else committing similar acts that the FBI will work closely with our partners to ensure the United States remains a world leader in science and technology innovation.”
Chen will forfeit approximately $1.45 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. As part of her sentence, she was ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Zhou has also pleaded guilty and awaits sentencing.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
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Hospital Researcher Sentenced to Prison for Conspiring to Steal Trade Secrets, Sell Them in ChinaRead the Press Release
A former Dublin, Ohio, woman was sentenced in U.S. District Court today to 30 months in prison for conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Li Chen, 47, also conspired to commit wire fraud.
Chen admitted in her guilty plea in July 2020 to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.
Chen and her husband, co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They pleaded guilty to conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
Court documents detail that Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen started a company in China to sell the kits.
Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. She also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
“For far too long, the People’s Republic of China (PRC) has encouraged the outright theft of American trade secrets through Chinese government programs that reward researchers for stealing what China cannot produce through its own ingenuity,” said Assistant Attorney General John C. Demers for the National Security Division. “These programs, like the Thousand Talents, are not innocuous platforms for academic collaboration. Today’s conclusion of yet another successful prosecution for theft of trade secrets encouraged by the PRC Government serves as a warning to all who might seek to profit from China’s illicit efforts to achieve technological dominance through thievery.”
“Chen and her husband executed a scheme over the course of several years to set up businesses in China, steal American research and profit from doing so,” said U.S. Attorney David M. DeVillers for the Southern District of Ohio. “Chen willingly took part in the Chinese government’s long-term efforts to steal American intellectual property. She deserves time in federal prison.”
“A hospital’s most important mission is to help people live longer and healthier lives. The defendant’s mission, however, was to steal trade secrets and create a company in China to make money off those stolen trade secrets,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will not stop its efforts to identify people who steal technology for their own financial benefit or for the benefit of a foreign government.”
“Chen’s sentencing today is a recognition of the seriousness of this offense,” said Special Agent in Charge Chris Hoffman of the FBI’s Cincinnati Division. “Chen admitted to abusing the trust of Nationwide Children’s Hospital by stealing cutting-edge research to establish a company in China for her own financial gain. This sentence should serve as a deterrent to anyone else committing similar acts that the FBI will work closely with our partners to ensure the United States remains a world leader in science and technology innovation.”
Chen will forfeit approximately $1.25 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies Inc. As part of her sentence, she was ordered to pay $2.6 million in restitution.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Zhou has also pleaded guilty and awaits sentencing.
The FBI Cincinnati Division investigated the case. Assistant U.S. Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant U.S. Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
Former natural gas trader pleads guilty for role in commodities insider trading schemeRead the Press Release
HOUSTON – A former natural gas trader pleaded guilty today to conspiracy to commit commodities fraud and wire fraud for his role in an insider trading scheme.
John Ed James, 51, Katy, pleaded guilty to one count of conspiracy to commit commodities fraud and wire fraud before U.S. District Judge Vanessa Gilmore. Sentencing has been scheduled for April 26.
“That executives continue to use inside nonpublic information for their own gain, illustrates that prosecutors must investigate and pursue these cases,” said U.S. Attorney Ryan K. Patrick. “These conspirators cooked the books and shared the loot - plain and simple.”
“When individuals engage in deceptive trade practices and manipulate the commodities market for their personal gain, they undermine the public’s confidence in the U.S. markets and stack the deck against other traders and investors,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to pursue and prosecute those who engage in such activity.”
“Commodities fraud and insider trading undermine the integrity of the markets, in this case the energy market which plays a key role in the Houston area economy,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The FBI will continue to combat criminal violations of the commodities laws to eliminate unscrupulous activity and protect market participants so that the public will continue to have trust in the system.”
As part of his guilty plea, James admitted he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. These pre-arranged trades generated approximately $966,403 in illicit proceeds. He further admitted the net profits from these fraudulent trades were split between himself and others involved in the fraudulent trading scheme. James also admitted he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid.
In a related case, Marcus Schultz, 41, previously pleaded guilty before Judge Gilmore July 20, 2020, to a one-count information charging him with conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act including 17 C.F.R. § 180.1. Sentencing is scheduled for June 14.
This matter marks the Department of Justice’s first effort to prosecute insider trading in the commodity markets under Section 180.1.
The FBI’s Houston Field Office and IRS-Criminal Investigation’s Houston Field Office conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case along with Trial Attorneys Jennifer Farer, Drew Bradylyons and Della Sentilles of the Criminal Division’s Fraud Section.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.– A former natural gas trader pleaded guilty today to conspiracy to commit commodities fraud and wire fraud for his role in an insider trading scheme.
Former Westminster Police Officer Sentenced to Six Years in Federal Prison on Sexual Assault ChargeRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Curtis Arganbright, 43, a former Westminster Police Department (WPD) officer, was sentenced today in federal court in Denver, Colorado, to six years (72 months) in federal prison to be followed by three years of supervised release. In addition to his prison sentence, Arganbright will forfeit his law enforcement certification and be required to register as a sex offender. Arganbright previously pleaded guilty to one count of violating the civil rights of a woman whom he sexually assaulted. The federal charge was filed after Arganbright was sentenced to 90 days in county jail, after pleading guilty to unlawful sexual contact and official misconduct in state court.
“Curtis Arganbright’s heinous conduct not only victimized a person in his care, it shattered the public’s trust given to him as a police officer,” said U.S. Attorney Jason Dunn. “This sentence is important because it demonstrates my commitment and that of this office to hold accountable those in positions of authority and to seek full justice for victims.”
“The Department of Justice will not tolerate law enforcement officers who use their authority to prey on vulnerable victims and sexually assault them,” said Deputy Assistant Attorney General Gregory B. Friel of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute these cases in an effort to secure justice for the victims of these reprehensible crimes and ensure that perpetrators who use their unique power to take advantage of others are held accountable.”
“Curtis Arganbright abused his power and authority as a peace officer to terrorize and victimize a member of our community while on duty. Such behavior damages the public’s trust in law enforcement officials and is contrary to the oath we all take. The dedication of our agents, our partners at the Broomfield and Westminster Police Departments, and the U.S. Attorney’s Office demonstrates our commitment to holding all law enforcement officials who abuse their power and violate the constitution accountable for their actions,” said Denver FBI Special Agent in Charge Michael Schneider. “The FBI takes allegations of civil rights and color of law violations extremely seriously, and will always seek justice for the victims and our community.”
According to court documents, Arganbright worked as a police officer for WPD in August 2017. While on duty in the early morning hours of August 24, 2017, Arganbright responded to a call of a theft at St. Anthony Hospital. After hospital personnel declined to press charges against the victim, Arganbright agreed to drive the victim home. During the transport home, Arganbright pulled off the main road and sexually assaulted the victim.
The Denver Division of the FBI conducted the investigation, with substantial assistance from the Broomfield Police Department. The case was prosecuted by Assistant U.S. Attorney Bryan Fields of the District of Colorado and Trial Attorneys Maura White and Katherine DeVar of the Civil Rights Division of the U.S. Department of Justice.
Case Number: 19-cr-00445
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Former United States Air Force Officer Sentenced for Sexual Abuse of a MinorRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Julio M. Gomez, 53, of Blanchard, Oklahoma, was sentenced today by United States District Judge S. Maurice Hicks, Jr. to 37 months (3 years, 1 day) in prison followed by 5 years of supervised release for sexual abuse of a minor. Gomez was also ordered to pay $29,900 in restitution to the victim and a fine of $10,000.
Julio M. Gomez pleaded guilty to the charge of sexual abuse of a minor on October 3, 2019. According to information presented to the court, an investigation was conducted by the United States Air Force’s Office of Special Investigations after receiving a complaint alleging sexual misconduct in 1997 with a 13-year old female while he was stationed at Barksdale Air Force Base in Bossier City, Louisiana. The investigation revealed that between January 1997 and December 1998, Gomez did sexually abuse a 13-year old minor victim while living at his base residence. Gomez was a Second Lieutenant in the Air Force at the time of the incident.
The United States Air Force, Office of Special Investigations, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
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Former Superintendent of Rockbridge County Regional Jail Convicted of Federal Civil Rights ChargesRead the Press Release
ROANOKE, Virginia - John Marshall Higgins, the former superintendent of the Rockbridge County Regional Jail, and a former member of the Rockbridge County Board of Supervisors, was convicted yesterday on multiple charges related to federal civil rights violations and public corruption in an opinion issued by U.S. District Judge Norman K. Moon, Acting United States Attorney Daniel P. Bubar, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police announced today.
“For years, Higgins acted as though he was above the law and ran the jail accordingly—failing to protect and assist certain inmates in need of medical care, but providing special treatment to another inmate that could enrich him,” said Acting U.S. Attorney Bubar. “I am proud of the hard work put in by our partners at the FBI and VSP and our prosecution team that brought about this just result.”
Higgins, 62, and Gary Andrew Hassler, 58, the former head nurse at the jail, were indicted in August 2018 and charged with multiple federal crimes related to Higgins’ failure to protect inmates, denial of medical care for an inmate’s serious medical needs resulting in bodily injury, and charges related to Higgin’s use of his position of authority at the Rockbridge Regional Jail to improperly enrich himself. Hassler was charged with falsifying documents to obstruct a federal investigation.
Following a three-day trial in July 2019, a jury convicted Hassler of one count of impeding a federal investigation into civil rights violations at the Rockbridge Regional Jail by falsifying a document. Evidence at trial showed that on March 5, 2017, Hassler falsified a document to claim an inmate at the jail refused medical care. Hassler was sentenced to a term of imprisonment of twelve months and one day
After a six-day bench trial in August 2020, the Court found Higgins guilty of three counts of deprivation of civil rights for denying medical care to an inmate and failing to protect that inmate from physical abuse, one count of conspiracy to commit mail and honest services fraud, and two counts of mail and honest services fraud for accepting things of value in exchange for engaging in official acts.
According to evidence presented at his trial, Higgins, as superintendent of the jail, failed to protect the rights of inmates at the regional jail by failing to provide an inmate with medical treatment and failing to protect that inmate from physical abuse from other inmates, which resulted in bodily injury. On multiple occasions Higgins was made aware of abusive conduct towards certain inmates and did nothing to prevent the abuse from occurring. On one occasion, Higgins refused to allow an inmate with potentially serious injuries to be seen by a physician for three days. The inmate was only provided medical care after other staff members sent the inmate to the hospital emergency room.
In addition, evidence demonstrated that Higgins, while superintendent of the jail, agreed to accept things of value from the family and friends of an inmate at the Rockbridge Regional Jail in exchange for providing preferential treatment to the inmate. These family members and friends provided at least $3,000 in payments and other items to a scholarship fund operated by Higgins and his family. The evidence demonstrated that in exchange for these payments, the inmate, who had been ordered to serve a three-year sentence at the Department of Corrections for vehicular manslaughter, received significant privileges while incarcerated at the Rockbridge Regional Jail. These privileges and preferential treatment included, but were not limited to, unsupervised contact visits with family and friends at the jail and at a farm located in Rockbridge County and deliveries of ice cream from Higgins to the inmate. Higgins’ also upgraded the cable package at the jail at the inmate’s request, granted the inmate’s unfettered access to jail facilities and Higgin’s personal office. Finally, at Higgins’ direction, the inmate was never sent to the Virginia Department of Corrections to serve his sentence, as dictated by policy and procedure, but instead served his entire sentence at the Rockbridge Regional Jail.
The court has not yet set a sentencing date.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. The Commonwealth Attorney’s Office for Rockbridge County assisted with the investigation. Assistant United States Attorneys Zachary T. Lee and Matthew Miller prosecuted the case for the United States.
Former Natural Gas Trader Pleads Guilty for Role in Commodities Insider Trading SchemeRead the Press Release
A former natural gas trader pleaded guilty today to conspiracy to commit commodities fraud and wire fraud for his role in an insider trading scheme.
John Ed James, 51, of Katy, Texas, pleaded guilty to one count of conspiracy to commit commodities fraud and wire fraud before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Sentencing has been scheduled for April 26, 2021, before Judge Gilmore.
“When individuals engage in deceptive trade practices and manipulate the commodities market for their personal gain, they undermine the public’s confidence in the U.S. markets and stack the deck against other traders and investors,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to pursue and prosecute those who engage in such activity.”
“That executives continue to use inside nonpublic information for their own gain illustrates that prosecutors must investigate and pursue these cases,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “These conspirators cooked the books and shared the loot – plain and simple.”
“Commodities fraud and insider trading undermine the integrity of the markets, in this case the energy market which plays a key role in the Houston area economy,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The FBI will continue to combat criminal violations of the commodities laws to eliminate unscrupulous activity and protect market participants so that the public will continue to have trust in the system.”
As part of his guilty plea, James admitted that he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. These pre-arranged trades generated approximately $966,403 in illicit proceeds. He further admitted that the net profits from these fraudulent trades were split between himself and others involved in the fraudulent trading scheme. James also admitted that he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid.
In a related case, Marcus Schultz, 41, previously pleaded guilty before Judge Gilmore on July 20, 2020, to a one-count information charging him with conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act, including 17 C.F.R. § 180.1. Sentencing is scheduled for June 14, 2021. This matter marks the Department of Justice’s first effort to prosecute insider trading in the commodity markets under Section 180.1.
This case is the result of an ongoing investigation by the FBI’s Houston Field Office and the IRS-CI’s Houston Field Office. Trial Attorneys Jennifer Farer, Drew Bradylyons, and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Houston are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.
Former Gainesville Resident Arrested for Attempting to Provide Material Support to ISISRead the Press Release
GAINESVILLE – A former resident of Gainesville, Florida, was recently expelled from a foreign country and returned to the United States by the FBI for prosecution. Mohamed Fathy Suliman, age 33, a U.S. citizen, is charged in a criminal complaint with attempting to provide material support, including personnel (himself) and services, to the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. It is alleged that Suliman left Gainesville, Florida, travelled to Turkey, and attempted to enter Syria illegally in 2014 in an effort to join and support ISIS. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the arrest.
“This arrest resulted from years of work and coordination by our prosecutors and FBI agents from the Jacksonville Field Office,” said U.S. Attorney Keefe. “Terrorists and would-be terrorists need to understand that no resource will be spared when it comes to protecting U.S. citizens and prosecuting those who seek to provide material support to designated foreign terrorist organizations.”
According to the criminal complaint, Suliman made a one-way flight reservation in June 2014, from Orlando, Florida, to Alexandria, Egypt, with stops in Chicago, Illinois, and Istanbul, Turkey. Suliman initiated his travel on June 12, 2014, but when he arrived in Istanbul, Turkey, rather than traveling on to Egypt, Suliman paid cash for a one-way airline ticket to the Turkish/Syrian border town of Gaziantep, Turkey.
On June 14, 2014, Suliman was arrested by Turkish authorities for illegally crossing into Syria from Turkey. According to the criminal complaint, during an interview of Suliman by an FBI agent in 2018, Suliman stated that he had researched how to get to Syria, and had purchased the plane ticket to Egypt to disguise his true travel plans from family and others. Suliman also allegedly admitted that he purchased the airline ticket to Gaziantep, Turkey, with cash to avoid creating an electronic record of the purchase. Suliman went on to admit that he attempted to enter Syria and was arrested by Turkish authorities.
“This case illustrates the FBI’s steadfast commitment to protecting Americans from threats posed by violent terrorist organizations and those who attempt to provide them with material support,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “The FBI Jacksonville Joint Terrorism Task Force will never waiver in our efforts to identify and bring to justice those who threaten our national security by assisting foreign terrorist organizations and promoting violent extremism.”
Turkey is known to be a primary pathway used by foreign fighters aspiring to join ISIS forces in Syria, due to the land border shared by the two countries. Like others, Suliman allegedly disguised his intentions from his family by only telling them he planned to travel to Egypt. According to the complaint, Suliman's actions are consistent with those of other individuals who have sought to join ISIS and crossed from Turkey into Syria at the Kilis border crossing, after traveling to Gaziantep.
According to the criminal complaint, a search of an email account subscribed to by Suliman revealed approximately 36 email attachments that contained various audio files that consisted of messages calling for jihad, justifications for jihad, rewards for those who participate in jihad and martyrdom, and that encouraged fighting against the crusaders, infidels (non-Muslims), and those that insult the Prophet Muhammad. The email attachments were dated from May 2009 through October 2012. The criminal complaint also alleges that in both August and December of 2014, Suliman’s Facebook account displayed an ISIS profile photo featuring the black flag that is ISIS’s symbol.
If convicted, Suliman faces a maximum of 20 years’ imprisonment and a $250,000 fine. Suliman’s initial appearance is scheduled for this afternoon at 2:00 p.m. at the U.S. Courthouse in Gainesville.
This arrest resulted from an investigation by the Federal Bureau of Investigation, with assistance from the National Security Division’s Counterterrorism Section and the Criminal Division’s Office of International Affairs. Assistant United States Attorney Stephen M. Kunz is prosecuting this case.
A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Suliman Complaint - U.S. v. SulimanFormer Franklin County Middle School Teacher of the Year Sentenced for Child Exploitation Crimes Involving Former StudentRead the Press Release
LOUISVILLE, KY. – Robert Alan Thompson, 34, of Hodgenville, Kentucky, was sentenced by United States District Judge David J. Hale on Thursday, January 29, 2021, to 15 years in prison followed by a 15-year term of Supervised Release for online enticement of a minor and production of child pornography, announced Acting United States Attorney Michael A. Bennett.
According to the Plea Agreement, on April 21, 2020, law enforcement officials executed a state search warrant at the residence where Thompson was living in LaRue County, Kentucky, and seized Thompson’s iPhone. During a post-Miranda interview, Thompson indicated that he would receive images and videos of child pornography via online links and visit teen chat rooms pretending to be a teenage boy. Thompson further stated that about a month prior to the search he had received two pictures of underage boys engaging in sexually explicit conduct from a friend.
A Detective with the Kentucky Office of Attorney General’s Department of Criminal Investigations conducted a full file system extraction of the iPhone. During the review, the Detective found evidence of child pornography and evidence that, earlier in April 2020, Thompson initiated a conversation with a former 8th grade student of his – who was then 17. Thompson directed the conversation to sexual topics and subsequently asked for, and received, sexually explicit images of the former student.
“I commend the outstanding work of the Kentucky Attorney General’s Department of Criminal Investigations in thoroughly pursing all aspects of this case and the valuable assistance provided by the United States Secret Service, Kentucky State Police, and the Radcliff Police Department,” said Acting U.S. Attorney Michael A. Bennett. “The teamwork of our law enforcement partners and prosecutors sends a clear message to those who sexually exploit children in the Commonwealth - you will identified, apprehended, and prosecuted to the fullest extent of the law.”
“We are fortunate to have strong partnerships with federal, state, and local law enforcement agencies who work together to stop child exploitation in the Commonwealth,” said Attorney General Cameron. “Our Department of Criminal Investigations and investigator Mike Littrell worked diligently on this case, and we are grateful for the work of Acting U.S. Attorney Bennett and his team, including AUSA Jo Lawless, the United States Secret Service, the Kentucky State Police, and the Radcliff Police Department.”
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation, with assistance from the United States Secret Service, Kentucky State Police, and Radcliff Police Department.
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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."
Former Colorado Police Officer Sentenced on Sexual Assault ChargesRead the Press Release
Curtis Arganbright, 43, a former Westminster Police Department (WPD) officer, was sentenced today in federal court in Denver, Colorado, to 72 months in prison and three years supervised release. In addition to his prison sentence, Arganbright will forfeit his law enforcement certification and be required to register as a sex offender.
Arganbright previously pleaded guilty to one count of violating the civil rights of a woman whom he sexually assaulted.
“The Department of Justice will not tolerate law enforcement officers who use their authority to prey on vulnerable victims and sexually assault them,” said Deputy Assistant Attorney General Gregory B. Friel of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute these cases in an effort to secure justice for the victims of these reprehensible crimes and ensure that perpetrators who use their unique power to take advantage of others are held accountable.”
“Curtis Arganbright’s heinous conduct not only victimized a person in his care, it shattered the public’s trust given to him as a police officer,” said U.S. Attorney Jason Dunn for the District of Colorado. “This sentence is important because it demonstrates my commitment and that of this office to hold accountable those in positions of authority and to seek full justice for victims.”
“Curtis Arganbright abused his power and authority as a peace officer to terrorize and victimize a member of our community while on duty. Such behavior damages the public’s trust in law enforcement officials and is contrary to the oath we all take. The dedication of our agents, our partners at the Broomfield and Westminster Police Departments, and the U.S. Attorney’s Office demonstrates our commitment to holding all law enforcement officials who abuse their power and violate the constitution accountable for their actions,” said Denver FBI Special Agent in Charge Michael Schneider. “The FBI takes allegations of civil rights and color of law violations extremely seriously and will always seek justice for the victims and our community.”
According to court documents, Arganbright worked as a police officer for WPD in August 2017. While on duty in the early morning hours of Aug. 24, 2017, Arganbright responded to a call of a theft at St. Anthony Hospital. After hospital personnel declined to press charges against the victim, Arganbright agreed to drive the victim home. During the transport home, Arganbright pulled off the main road and sexually assaulted the victim.
The Denver Division of the FBI conducted the investigation, with substantial assistance from the Broomfield Police Department. The case was prosecuted by Assistant U.S. Attorney Bryan Fields of the District of Colorado and Trial Attorneys Maura White and Katherine DeVar of the Civil Rights Division of the U.S. Department of Justice.
Five Charged in El Paso for Smuggling Drugs and Illegal AliensRead the Press Release
Today in El Paso, federal authorities filed two criminal complaints charging five individuals for smuggling an estimated $5.4 million worth of marijuana and methamphetamine and 77 illegal aliens, announced U.S. Attorney Gregg N. Sofer, Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, U.S. Border Patrol El Paso Sector Chief Patrol Agent Gloria I. Chavez and Big Bend Sector Chief Patrol Agent Sean L. McGoffin.
One criminal complaint charges four Mexican nationals – 40-year-old Jose Jesus Cardenas-Gonzalez, 21-year-old Cristian Armando Lucero-Gonzalez, 27-year-old Damian Arturo Izaguirre-Velasquez and 36-year-old Luis Francisco Galaz-Baldenegro – with one count of conspiracy to transport illegal aliens. The other criminal complaint charges 25-year-old Mexican national Manuel Uriel Pinuelas Salas with possession with intent to distribute a controlled substance.
According to court documents, on January 28, 2021, U.S. Border Patrol agents stopped five pick-up trucks travelling in a caravan approximately 10 miles north of the border on Lopez Road near the base of the Quitman Mountain range in Hudspeth County. Agents discovered a total of 77 illegal aliens inside four vehicles. The fifth vehicle, driven by Pinuelas, contained over 450 pounds of marijuana and more than 157 pounds of methamphetamine.
Upon conviction, Pinuelas faces between 10 years and life in federal prison. The other four defendants face up to 20 years in federal prison upon conviction. All five remain in federal custody pending detention hearings anticipated to take place later this week.
The HSI, DEA and U.S. Border Patrol continue to investigate this case. Assistant U.S. Attorney Spencer Kiggins is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Federal Arrest Announced as Part of Dollar General Shooting InvestigationRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Johnny Ray McCaslin, age 49, of Arvada has been charged with being a felon in possession of firearm and ammunition. Mr. McCaslin is scheduled to have his initial appearance in the United States District Court for the District of Colorado on Monday afternoon.
According to facts contained in the affidavit in support of the criminal complaint, evidence supporting the firearm charge was obtained as part of an investigation into a shooting at a Dollar General store in Arvada on January 26, 2021. Mr. McCaslin was identified as a suspect in that shooting, which led to a search warrant for his residence. During that search, investigators located two firearms and ammunition. Mr. McCaslin has previously been convicted of felonies in the State of Colorado and is therefore prohibited from possessing firearms or ammunition.
The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty.
This matter is being investigated by the ATF and multiple law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Jena Neuscheler.
Case Number: 21-mj-00015
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Ex oficial de Policía condenado por cargos de agresión sexualRead the Press Release
Curtis Arganbright, 43, ex oficial del Departamento de Policía de Westminster (WPD), fue sentenciado hoy en la Corte Federal de Denver, Colorado, a 72 meses en prisión y tres años de libertad supervisada. Además de su sentencia de prisión, Arganbright perderá su certificado del orden público y se requerirá que se registre como agresor sexual.
Arganbright se declaró culpable previamente a un cargo de violación de los Derechos Civiles de una mujer a la que atacó sexualmente.
“El Departamento de Justicia no tolerará que los oficiales de orden público usen su autoridad para hacer presas a víctimas vulnerables y que las ataquen sexualmente”, dijo el Subsecretario del Fiscal General Gregory B. Friel de la División de Derechos Civiles. “La División de Derechos Civiles continuará persiguiendo energéticamente estos casos en un esfuerzo para garantizar justicia a las víctimas de estos crímenes reprensibles y garantizar que se hace responsable a los perpetradores que utilizan su poder único para sacar ventaja de otros”.
“El infame comportamiento de Curtis Arganbright no sólo de victimizar a una persona bajo su cuidado, destruyó la confianza que le tenía el púbico como oficial de policía”, dijo el Fiscal de EE.UU. Jason Dunn para el Distrito de Colorado. “Esta sentencia es importante porque demostrará mi compromiso, y el de esa oficina, para hacer responsables a aquéllos en posiciones de autoridad y para buscar la justicia plena para las víctimas”.
“Curtis Arganbright abusó de su poder y autoridad como oficial de la paz al aterrorizar y victimizar a un miembro de nuestra comunidad mientras estaba de guardia. Tal comportamiento daña la confianza del público en los oficiales del orden público y es contrario al juramento que hacemos”. La dedicación de nuestros agentes, nuestros socios en los Departamentos de Policía de Broomfield y Westminster y la Oficina del Fiscal de EE.UU. demostraron su compromiso para hacer responsables de sus actos a todos los oficiales del orden público que abusan de su poder y violan la constitución”, dijo el Agente Especial del FBI de Denver a Cargo, Michael Schneider. “El FBI tomas los alegatos de violación a la ley de Derechos Civiles y color extremadamente serios y siempre buscará justicia para las víctimas y nuestra comunidad”.
De acuerdo con los documentos de la corte, Arganbright trabajó como oficial de la policía de WPD en agosto de 2017. Mientras se encontraba en funciones, temprano en la mañana del 24 de agosto de 2017, Arganbright respondió a una llamada de robo en el Hospital de St. Anthony. Después el personal del hospital se negó a presentar cargos contra la víctima. Arganbright aceptó llevar a la víctima a su casa. Durante el transporte a casa, Arganbright se salió del camino principal y agredió sexualmente a la víctima.
La División de Denver del FBI llevó a cabo una investigación, con asistencia del Departamento de Policía de Broomfield. El caso fue perseguido por el Asistente del Fiscal de EE.UU. del Distrito de Colorado y los Abogados Litigantes Maura White y Katherine DeVar de la División de Derechos Civiles del Departamento de Justicia de EE.UU.
EDVA Commemorates Black History MonthRead the Press Release
ALEXANDRIA, Va. – As part of a long-standing tradition spanning more than 25 years, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will honor the contributions and history of the African American community during this year’s Black History Month.
“Our Office will continue to recognize the proud traditions and rich history of the African American community, while also acknowledging the challenging realities, both past and present, that Black Americans have experienced here in Virginia and across our Nation,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As it is inscribed on the walls of the U.S. Department of Justice Building, ‘the place of Justice is a hallowed place,’ and we are deeply committed in EDVA to ensuring that all participants in the legal process—including victims, parties, and members of the Bench and Bar—are treated with respect and dignity as we seek equal justice under the law. As part of that commitment, we are dedicated to furthering our collective efforts to promote diversity and inclusion in all forms through our hiring, advancement, and community outreach practices.”
The annual tradition of Black History Month in February is commemorated by the Association for the Study of African American Life and History, which establishes a national theme for each year. The theme for 2021 is “The Black Family: Representation, Identity, and Diversity.” For over 25 years, EDVA has hosted events based on the national theme, or closely related topics, with speakers and performers appearing during programs held at EDVA’s offices. Those speakers have included prominent members of the legal community—such as judges, prosecutors, defense attorneys, Justice Department leadership, and law professors—as well as scholars, historians, and performing artists.
Notable examples of memorable Black History Month programs held in EDVA have included a 2014 panel with members of the 1971 T.C. Williams High School Football Team, who inspired the 2000 film Remember the Titans; Deval L. Patrick, then-Assistant Attorney General for DOJ’s Civil Rights Division (1995); John W. Marshall, then-U.S. Marshal for EDVA (1998); Eric H. Holder, Jr., then-Deputy Attorney General (2000); Lt. General Daniel James III, then-Director of the Air National Guard (2005); Virginia Supreme Court Justice S. Bernard Goodwyn (2016); U.S. District Judge Raymond A. Jackson (2018); and representatives of the renowned National Museum of African American History and Culture in Washington, D.C. (2017, 2019).
EDVA’s tradition of hosting annual Black History Month celebrations began in 1994 and has been led by EDVA’s Black Affairs Special Emphasis Program Manager, Sabrina A. Black, since inception. The Diversity Committee was established in 2010 and includes a cross-section of EDVA’s administrative staff, legal support, and attorneys, and it has been instrumental in tackling key issues such as work/life balance, training and retention of existing employees, and diversity and inclusion in EDVA’s recruitment and hiring practices. Over time, EDVA has increased the diversity of its senior management ranks, with half of the current senior management team consisting of women and racial minorities, including Acting U.S. Attorney Parekh, the first person of color to lead the Office.
“We extend our deepest appreciation to the members of EDVA’s Black History Month and Diversity committees for their leadership and commitment in spearheading our diversity and inclusion-oriented programs for the benefit of the entire Office,” said Acting U.S. Attorney Parekh. “EDVA’s dedicated and selfless workforce is, and will always be, the heart and soul of our Office.”
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dracut Construction Business Owner Charged with $1 Million Tax FraudRead the Press Release
BOSTON – The owner of a commercial and residential construction business in Dracut was charged on Friday, Jan. 29, 2021 with an income diversion and payroll tax scheme resulting in a tax loss that exceeded $1 million.
James P. Enwright, 53, was charged and has agreed to plead guilty to one count of tax evasion and one count of failure to pay over taxes. A hearing has not yet been scheduled.
According to the charging documents, Enwright owned and operated Enwright Construction. From 2013 through 2018, Enwright allegedly withheld from his tax preparer over $2.8 million of Enwright Construction’s gross receipts. In addition, during the tax quarters ending March 31, 2013 through Sept. 30, 2019, it is alleged that Enwright paid over $3 million in wages to his employees in cash “under the table.” As a result of his conduct, Enwright underreported his personal income tax obligations and failed to report and pay the IRS the employment taxes owed on the cash wages. In total, Enwright allegedly caused a loss to the IRS of $1,025,312.
The charging statutes provide 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 Lelling and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Denton Man Sentenced for Trafficking 17-Year-Old GirlRead the Press Release
A Denton man has been sentenced to 15 years in federal prison for child sex trafficking, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
In September 2020, a federal jury returned a guilty verdict against William Adam Jonathan Smith, convicting him of one count of conspiracy to commit sex trafficking of a minor and one count of sex trafficking of a minor. He was sentenced today before U.S. District Judge Reed C. O’Connor.
According to evidence presented during his trial, Mr. Smith, 31, met and befriended the 17-year-old victim in the summer of 2019. He introduced her to Charity Cantu, his longtime girlfriend, who worked for him as a prostitute. Mr. Smith told Ms. Cantu that she was to groom and train the victim too make money for him providing commercial sex services.
From August thru October 2019, the victim accompanied Ms. Cantu to hotels in the Dallas and Fort Worth areas and engaged in commercial sex acts. All of the proceeds from the commercial sex acts performed by the victim were given to Mr. Smith.
Ms. Cantu, 25, pleaded guilty in March 2020 to a racketeering charge. In court documents, she admitted that although she knew the victim was a minor, Ms. Cantu groomed the girl for commercial sex and posted ads for her sexual services online. She testified at Mr. Smith’s trial and was sentenced in October 2020 to two years in federal prison.
The Texas Attorney General’s Office and Homeland Security Investigations conducted the investigation with the assistance of the Denton Police Department. Assistant U.S. Attorneys Doug Allen and Brandie Wade tried the case.
Connecticut Behavioral Health Clinician Group Pays $100K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NEIL QUATRANO, and his business, BEHAVIORAL MANAGEMENT, LLC, have entered into a civil settlement agreement with the federal and state governments and will pay more than $100,000 to resolve allegations that they violated the federal and state False Claims Acts.
Behavioral Management is a private behavioral health practice located in North Haven, that provided after school and school break programs for children with behavioral and mental health issues. Behavioral Management is enrolled as both a Behavioral Health Clinician Group and a Professional Counselor Group in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program. Quatrano has a bachelor’s degree in social work, but he is not a licensed behavioral health provider in Connecticut.
It is alleged that Quatrano and Behavioral Management submitted fraudulent claims to Medicaid under CPT code 90876 for participants of the after-school and school-break program. CPT code 90876 requires “individual psychophysiological therapy incorporating biofeedback training by any modality (face-to-face with patient), with psychotherapy (e.g., insight oriented, behavior modifying or supported psychotherapy); 45 minutes.” Quatrano and Behavioral Management falsely represented that a licensed provider had rendered the services when, in fact, an unlicensed individual rendered the services. Quatrano and Behavioral Management also falsely represented that 45 minutes of one-on-one psychotherapy services were provided when in fact 20 minutes of group services were provided. Finally, Quatrano and Behavioral Management falsely represented that the services provided included biofeedback when, in fact, they did not.
To resolve the allegations under the federal and state False Claims Acts, Quatrano and Behavioral Management LLC have agreed to pay $100,842.86 in order to reimburse the Medicaid program for conduct occurring from January 1, 2014 through December 31, 2014.
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,665 to $23,331 for each false claim.
This case stems from a larger investigation into fraudulent activity in the area of behavioral health services, which has been jointly conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Connecticut Office of the Attorney General, with support from the Connecticut Department of Social Services.
This case was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Joshua L. Jackson of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Colorado Springs Man Sentenced to More Than 13 Years in Federal Prison for Role in Two RobberiesRead the Press Release
DENVER – United States Attorney Jason Dunn announces that Dustin Alan Wall, age 31, of Colorado Springs, was sentenced to more than 13 years in federal prison for his role in two robberies in Colorado Springs.
According to the facts contained in the plea agreement, Wall aided and abetted robberies of both a Days Inn and an ENT Federal Credit Union in Colorado Springs. Specifically, on February 16, 2018, Wall drove two co-defendants to a Days Inn in Colorado Springs. Wall told one of the co-defendants that, as part of a gang initiation, the co-defendant would get money and respect from the robbery. Inside the motel, the robbers assaulted a victim, hitting him over the head, causing injuries. The men stole less than $200.
A month later, on March 14, 2018, Wall drove with two other co-defendants to the ENT Federal Credit Union. One of the co-defendants was provided with a gun and a note to use in the robbery. Inside the ENT Federal Credit Union, the co-defendant demanded a teller provide cash or he would “blow [his] brains out.” The co-defendant stole less than $6,000, which was later divided up among the group.
“Taking violent gang members off the street is what we do best, said U.S. Attorney Jason Dunn. “Colorado Springs is safer as a result of the good work of this office and our colleagues at the FBI, the Colorado Springs Police Department, and the El Paso County Sheriff’s Office.”
“Dustin Wall, a ranking Rolling 60s Crips gang member, recruited and organized young gang members to commit violent armed robberies of banks and businesses in the Colorado Springs area, terrorizing innocent employees and witnesses at gunpoint and stealing cash, all to further the insidious needs of his gang,” said FBI Denver Special Agent in Charge Michael Schneider. “The Colorado Springs community is safer with him behind bars. We thank our partners at the Colorado Springs Police Department Robbery Unit, Task Force Officers at El Paso County Sheriff’s Office, and U.S. Attorney’s Office for helping us hold this dangerous criminal accountable.”
United States District Court Judge William J. Martinez sentenced Wall on January 29, 2021.
This matter was investigated by the FBI, the Colorado Springs Police Department, and the El Paso County Sheriff’s Office. Assistant United States Attorney Kurt Bohn is prosecuting the case.
CASE NUMBER: 18-cr-000360
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California man sentenced to three years in prison for bank robberyRead the Press Release
ALBUQUERQUE, N.M. – Randy Matthew Peraza, 48, of Needles, California, was sentenced on Jan. 27 in federal court to three years in prison for bank robbery.
Peraza pleaded guilty on July 9, 2020. In his plea agreement, Peraza admitted to walking into a bank in Roswell, New Mexico, on March 13, 2020, announcing, “This is a robbery,” and demanding money from a bank teller. As the teller gathered cash, Peraza applied hand sanitizer to his hands and used a lighter to light his hands on fire. Peraza then took money from the teller, left the bank, walked across the street and sat in the grass where officers responding to the bank alarm found and arrested him.
Upon his release from prison, Peraza will be subject to three years of supervised release.
The FBI investigated this case with assistance from the Roswell Police Department. Assistant U.S. Attorney Rachel M. Feuerhammer prosecuted the case.
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