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15 January 2021
Silicon Valley Streaming Service Executive Indicted in Alleged “Pump and Dump” Stock Fraud SchemeRead the Press Release
CHICAGO — A former executive of a Silicon Valley video streaming service has been indicted by a federal grand jury in Chicago for allegedly engaging in a “pump and dump” stock fraud scheme.
While serving as a director of San Jose, Calif.-based Nanotech Entertainment Inc. (“NTEK”), DAVID FOLEY schemed with an investment manager to manipulate purchases and sales of shares in NanoTech Gaming Inc. (“NTGL”), a Las Vegas, Nev.-based business that had formerly operated as a division of NTEK, according to a ten-count indictment returned Jan. 11, 2021, in U.S. District in Chicago. The indictment charges Foley, 55, of Los Gatos, Calif., and the investment manager, BENNIE BLANKENSHIP, 49, of New Carlisle, Ohio, with wire fraud and securities fraud. Arraignments are scheduled for Jan. 19, 2021, at 10:00 a.m., before U.S. District Judge Steven C. Seeger.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Matthew Getter.
According to the indictment, Foley acquired shares in NTGL and fraudulently caused them to be unrestricted. Blankenship promoted the NTGL shares by exaggerating the stock’s prospects for success, thereby artificially inflating the share price, the indictment states. Foley then schemed with others to sell the pumped-up stock to the investing public, the indictment states. The fraud scheme lasted from 2013 to 2016, and during a portion of that time Foley was incarcerated in California on an unrelated criminal conviction, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Rogers Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that Juan Garcia-Maldonado, age 47, was sentenced to 120 months in federal prison without the possibility of parole followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings today in the United States District Court in Fayetteville.
Agents with the Drug Enforcement Administration (DEA) Fayetteville Resident Office assisted by detectives and officers with local law enforcement agencies are actively investigating the distribution of methamphetamine in the Western District of Arkansas. During the course of this investigation, law enforcement identified Garcia-Maldonado, as a distributor of methamphetamine in Northwest Arkansas. In January of 2020, agents with the DEA, operating in an undercover capacity, purchased multiple ounces of methamphetamine from Garcia-Maldonado.
The methamphetamine purchased was subsequently sent to the DEA laboratory in Miami and tested positive for 79.7 grams of pure methamphetamine.
Garcia-Maldonado was indicted by a federal grand jury in March of 2020 and entered a guilty plea in August of 2020.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Dustin Roberts prosecuted the case for the Western District of Arkansas.
Rockford Man Charged with Arson for Allegedly Setting Fire to Retail BusinessRead the Press Release
ROCKFORD — A Rockford man was arrested Thursday on a federal arson charge for allegedly setting fire to a local retail business.
SEAN CARDENAS, 20, was indicted on Jan. 12, 2021, by a federal grand jury in Rockford on one count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, a building at 6260 E. State St. in Rockford. The alleged arson occurred on May 30, 2020.
Cardenas pleaded not guilty at his arraignment Thursday afternoon before U.S. District Judge Steven C. Seeger. Cardenas was ordered to remain in federal custody until a detention hearing on January 19, 2021, at 11:30 a.m.
The indictment and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The Rockford Police Department and Rockford Fire Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.
The arson charge carries a mandatory minimum sentence of five years in federal prison and a maximum sentence of 20 years, in addition to a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rochester, New York Man Arrested and Charged with Destroying Property and Obstruction of Congressional ProceedingsRead the Press Release
WASHINGTON, D.C. – A New York State man was taken into custody and charged today with unlawful entry, destruction of government property and obstruction of an official proceeding.
Dominic Pezzola, 43, also known as “Spaz” and “Spazzo,” of Rochester, New York, was charged by criminal complaint with one count of obstruction of an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2); one count of destruction of government property, in violation of Title 18, United States Code, Section 1361; and one count of knowingly entering or remaining in any restricted building or grounds without lawful authority, in violation of Title 18, United States Code, Section1752(a). Following a hearing in the Western District of New York, Pezzola was ordered detained.
The affidavit in support of criminal complaint alleges that Pezzola unlawfully gained entry to the U.S. Capitol on January 6, 2021, by breaking a window in the U.S. Capitol with a U.S. Capitol Police shield, as an individual in the crowd yelled “Go Go Go,” before entering the Capitol building.
The affidavit also alleges that a video posted from inside the Capitol shows Pezzola smoking a cigar inside the building. In that video, Pezzola can be heard saying words to the effect of, “Victory smoke in the Capitol, boys. This is f***ing awesome. I knew we could take this mother***er over [if we] just tried hard enough.”
The affidavit alleges that Pezzola was photographed in December, 2020, at rallies in Washington, D.C., that included individuals wearing clothing consistent with the “Proud Boys.”
At some point after the incident at the Capitol had ended, the affidavit in support of criminal complaint alleges, Pezzola bragged about breaking the windows to the Capitol with a Capitol Police shield. The affidavit also alleges that Pezzola and others stated that they would have killed anyone they got their hands on, including Speaker of the House Nancy Pelosi and Vice President Michael Pence. The affidavit alleges that, in the days after the event, members of the group said that the group would return to Washington, D.C., and kill every single “m-fer” they could.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the Department of Justice’s National Security Division. The case is being investigated by the FBI’s Buffalo Field Office, Albany Field Office, and Washington Field Office.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
Raleigh Man Sentenced to 15 Years for Possession of Child PornographyRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 180 months in prison for Possession of Child Pornography. He was also ordered to pay $33,000 restitution to known victims.
United States Attorney Higdon stated: “Child pornography – the horrible exploitation of the most vulnerable among us – is one of the worst and most intolerable crimes we prosecute. And today’s sentencing reflects the Department of Justice’s deep and abiding commitment to removing these predators and restoring our children. The Court’s sentence allows us to take another step in the right direction as we work to eliminate this crime and its terrible consequences for our communities.”
“This sentencing not only removes a serial predator from our community, it also sends a message to others engaged in this filth that we are serious about finding, arresting and prosecuting them,” said acting Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. “Thanks to some hard work and the great partnerships we have with our law enforcement and community partners, this community can rest easier knowing this monster is no longer free.”
According to court documents, in November 2019, agents with the Department of Homeland Security received a cybertip regarding suspected child pornography that had been uploaded to a social media messaging app from the address in Raleigh at which Benjamin Lineberger, 28, lived. A search warrant was executed at the residence and when the agents entered the residence, Lineberger was found in a bathroom. Lineberger agreed to speak with agents. He denied uploading or being in possession of any child pornography. Lineberger admitted to having an iPhone and an iPad and gave agents consent to search the digital devices. Agents searched the bathroom where Lineberger was found initially and found a broken cell phone inside the toilet tank. The phone was bent, as though someone had tried to break it in half and the cover had been removed.
The iPhone and iPad and the cell phone were forensically analyzed. The broken cell phone had a latent print on its screen that was matched to Lineberger. The iPad and the broken cell phone contained child pornography. In all Lineberger possessed approximately 1,480 images and 170 videos that depicted child pornography. Many of those depicted sadistic and masochistic conduct.
Lineberger had previously been convicted for a similar offense, Third Degree Sexual Exploitation of a Minor in Wake County Superior Court, North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Department of Homeland Security Investigations, North Carolina State Bureau of Investigation, the Cary Police Department, Raleigh Police Department and the United States Marshal’s Service investigated the case and Assistant U.S. Attorney Charity Wilson, prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-246.
Quinton Resident Pleads Guilty to Laundering Monetary InstrumentsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Choice Lynn Needham, age 46, of Quinton, Oklahoma entered a guilty plea to Laundering Monetary Instruments, in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i) and (2), punishable by up to 20 years’ imprisonment, a fine up to $500,000.00 or twice the amount of the illicit transaction, whichever is greater, or both.
The Indictment alleged that on January 2, 2018, Needham transferred $1,200.00 in United States Currency via MoneyGram from a Walmart Store in McAlester, Oklahoma to another coconspirator in Palm Springs, California. Needham knew that the $1,200.00 was proceeds from the distribution of methamphetamine, and conducted the transaction with the intent to promote the continued distribution of methamphetamine.
The charges arose from a joint investigation led by the Drug Enforcement Administration (“DEA”), along with the Bureau of Indian Affairs (“BIA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Internal Revenue Service (“IRS”), the United States Postal Inspection Service (“USPIS”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Haskell County Sheriff’s Office, the District 18 District Attorney’s Drug Task Force, the Seminole Nation Lighthorse Police, the Choctaw Nation Tribal Police, the Pittsburg County Sheriff’s Office, the McAlester Police Department, and the Stigler Police Department. The investigation was part of and include members of the DEA High Intensity Drug Trafficking (“HIDTA”) Task Force.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Christopher Schroeder and Assistant United States Attorney Ryan Conway represented the United States.
Puerto Rican Man Arrested for Smuggling over $100,000 in U.S. CurrencyRead the Press Release
St. Thomas, USVI – Blas Sebastian Panzardi Davila of Puerto Rico, appeared today before U.S. Magistrate Judge Ruth Miller for an initial appearance after his arrest on Thursday evening for currency smuggling, United States Attorney Gretchen C.F. Shappert announced.
According to court records, Customs and Border Protection (CBP) interdicted a vessel traveling from the area of Culebra, Puerto Rico towards St. Thomas at around 9:10 p.m., without lights. Davila captained the vessel with no passengers aboard. CBP boarded the vessel and discovered in excess of $100,000 in vacuum-sealed plastic bags. The government charged Davila with concealing and conspiring to conceal currency in excess of $100,000 on board a vessel outfitted for smuggling.
If convicted, Davila faces a maximum sentence of 15 years’ incarceration.
This case is being investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Pensacola Registered Sex Offender Sentenced to Life Imprisonment for New Child Sex CrimesRead the Press Release
PENSACOLA, FLORIDA – Travis M. Butler, of Pensacola, was sentenced today to life imprisonment on federal charges of enticing a minor for sexual activity and producing child pornography. Butler pled guilty to the charges during a pretrial conference just two days before his federal jury trial was due to begin. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“Butler is a sexual predator who has repeatedly victimized underage girls for his own purposes,” said U.S. Attorney Keefe. “He has inflicted harm on far too many girls, but his trail of devastated young lives will come to an end behind bars.”
In September 2019, law enforcement officers with the Pensacola Police Department received information from the National Center for Missing and Exploited Children that Butler, 47, and a minor female from the local area were engaged in illicit communications and activity via Facebook Messenger. Homeland Security Investigations (HSI) and the Pensacola Police Department were able to geo-locate Butler’s criminal activity to Pensacola. This led law enforcement to obtain search warrants for Butler’s social media accounts, which produced troves of evidence displaying his sexual acts with the minor and his request for her to produce child pornography for his pleasure. Butler spent the summer of 2019 meeting and engaging in sexual acts with the minor victim, unbeknownst to her family. Social media account communications revealed that Butler hoped to continue their sexual relationship and even bring in a third party for group sex involving the minor. Butler was arrested by HSI, with the assistance of the Federal Bureau of Investigation, in November 2019.
“The horrible crimes against this child cannot be undone, but we hope this sentencing is another step in the healing process for his victim,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “We are proud to be one of the law enforcement partners making our local communities safer through the North Florida Internet Crimes Against Children Task Force.”
Butler is a registered sex offender based on prior state of Florida convictions, in 2006, for lewd and lascivious battery and contributing to the delinquency of a child by impregnating (under 16). At the sentencing hearing in that case, it was revealed that the victim was actually the third minor female with whom Butler had engaged in sexual acts. In each of his two prior instances of sexual activity, Butler impregnated the minors.
The case was investigated by United States Immigration and Customs Enforcement Homeland Security Investigations, the Pensacola Police Department, the Federal Bureau of Investigation, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys David L. Goldberg and Meredith L. Steer.
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 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. ButlerOrange County Man Who Was Chased by Police While Possessing 75 Pounds of Cocaine in His Car Pleads Guilty to Federal ChargeRead the Press Release
LOS ANGELES – An Orange County man who led police on a high-speed car chase after they attempted to pull him over with approximately 75 pounds of cocaine in his vehicle pleaded guilty today to a federal narcotics charge.
Anthony Martinez, 40, of La Habra, pleaded guilty to one count of possession with intent to distribute cocaine.
In February 2020, a federal grand jury charged Martinez and seven other defendants in a superseding indictment alleging a narcotics trafficking conspiracy in which large quantities of cocaine were stored in stash houses in Baldwin Park and Covina, then delivered to buyers in Southern California.
According to his plea agreement, on July 25, 2019, in Whittier, Martinez received two boxes from co-defendant Ryan Alexander Fischer, 23, a.k.a. “Flaco,” of Covina, that contained 75.2 pounds (34.1 kilograms) of cocaine, placed the boxes in his car and drove off. When Whittier Police officers attempted to pull Martinez over, he initially pulled over, then sped away, refusing to stop, and led police on a car chase in which Martinez veered into oncoming traffic and drove on the wrong side of the road, the plea agreement states. When police finally pulled Martinez over for good in Fullerton, they discovered the box of cocaine.
Martinez further admitted that, simultaneously, he possessed 132.6 pounds (60.2 kilograms) of cocaine, separately wrapped in one kilogram “bricks” located in a storage locker, and 52.9 pounds (23.98 kilograms) of cocaine located inside a duffel bag.
In total, Martinez admitted to possessing 260.6 pounds (118.2 kilograms) of cocaine.
United States District Judge Michael W. Fitzgerald scheduled a May 17 sentencing hearing, at which time Martinez will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
This case’s lead defendant, Jesus Manuel Landeros-Cisneros, 50, of Covina, pleaded guilty in August 2020 to one count of conspiracy to distribute cocaine. His sentencing hearing is scheduled for February 11.
The case’s other defendants – Fischer; Manuel Angel Landeros-Lopez, 43, of Covina; David Elgrably, 51, of Suisun City, California – are scheduled to go on trial on July 27. Three defendants – Harnidhan Bhangu, 30; Harmanjot Singh, 28; and Gurpreet Chahal, 41; all Canadian nationals – are fugitives.
The Drug Enforcement Administration and Homeland Security Investigations investigated this matter and was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF). As to this seizure, substantial assistance was provided by the South Gate Police Department, the Brea Police Department, and the West Covina Police Department.
This case is being prosecuted by Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section.
Operator of Indian Robocall Scam Pleads Guilty to Defrauding over 4,000 U.S. Victims Out of More Than $8 MillionRead the Press Release
RICHMOND, Va. – An Indian national pleaded guilty today to conspiracy and identity theft in connection with his operation of an overseas robocall scam that defrauded thousands of mostly elderly victims of at least $8 million.
According to court documents, Shehzadkhan Pathan, 39, operated a call center in Ahmedabad, India from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims to send bulk cash through physical shipments and electronic money transfers. Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officers from the FBI and DEA and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money as initial installments for falsely promised loans.
In addition to operating the call center, Pathan recruited and supervised several money mules who he directed to receive money sent by victims. Pathan’s network of money mules was located in multiple states, including but not limited to Virginia, New Jersey, Minnesota, Texas, California, South Carolina, and Illinois. Pathan assigned various aliases to these individuals and supplied them with hundreds of counterfeit identification documents to facilitate their receipt of victim cash shipments and money transfers. Pathan then directed the money mules to send the money to himself and other conspirators through various means, including cash deposits into numerous bank accounts and via informal money transmitters known as Hawalas.
Pathan’s scams disproportionately targeted elderly victims, many of whom suffered substantial financial hardship. In total, Pathan is responsible for defrauding over 4,000 U.S. victims of at least $8 million.
Pathan is scheduled to be sentenced on May 14, 2021. He faces a maximum penalty of 20 years in prison for the conspiracy, along with a mandatory consecutive term of two years in prison for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Brian R. Hood and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Ontario County Woman Going to Prison for Stealing Hundreds of Thousands of Dollars from Her EmployerRead 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 Karen Owens, 55, of Phelps, NY, who was convicted of wire fraud, was sentenced to serve 24 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. Owens was also ordered to pay $607,672.71 in restitution.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that the defendant was employed by Finger Lakes Conveyors, Inc. (FLC) as its Director of Finance from 2003 to 2017. As such, Owens had authority to write and issue checks from FLC's bank account in order to pay legitimate business expenses to FLC's vendors and creditors. The defendant also had an obligation to record the details of each check she wrote and issued on behalf of FLC timely and accurately - including check date, check number, and payee - in FLC's QuickBooks accounting records.
Between June 2, 2011, and August 24, 2017, the defendant wrote and issued approximately 394 checks payable to herself from FLC's account. Owens deposited the checks into an account which she owned and over which she had control. In addition, between August 30, 2010, and August 24, 2017, the defendant wrote and issued approximately 162 checks payable to J.P. Morgan Chase Bank from FLC's bank account as payments on Chase Bank credit card accounts belonging to the defendant and her husband. In order to conceal some of the fraudulent and unauthorized checks, Owens failed accurately to record the checks in FLC's QuickBooks accounting record; instead, she falsely recorded the checks as payment for legitimate business expenses.
Owens wrote checks totaling more than $750,000.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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North Adams Man Sentenced to 60 Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A North Adams man was sentenced yesterday in federal court in Springfield to 60 years in prison today for child exploitation offenses.
Anthony Deordio, 46, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 60 years in prison and a lifetime of supervised release. In August 2020, Deordio pleaded guilty to one count of sexual exploitation of a minor, three counts of advertising child pornography, two counts of distribution of child pornography, two counts of transportation of child pornography, one count of receipt of child pornography and one count of possession of child pornography.
In November 2017, Deordio used a minor victim to produce child pornography. The video file he produced was later recovered in a separate jurisdiction, and further investigation led to the identification of Deordio as the perpetrator. He was also convicted of offering to sell child pornography on the internet, distributing child pornography over the internet and receiving and possessing child pornography.
Deordio was previously convicted of possession of child pornography in Massachusetts state court in 2006.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and North Adams Police Chief Jason Wood made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
New York Man Pleads Guilty to Cyberstalking After Harassing and Sextorting Multiple VictimsRead the Press Release
Tampa, Florida – Christopher Buonocore (34, Hicksville, NY) has pleaded guilty to six counts of cyberstalking. He faces a maximum penalty of five years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, over a seven-year period, Buonocore used text messages, fictitious phone numbers, and social media accounts to harass, intimidate, cyberstalk, and attempt to sextort six women, including a minor. Buonocore’s harassment campaign involved posting sexually explicit and nude images of the victims to the internet, and personal identifying information such as their phone numbers, addresses, and social media profile names. Buonocore solicited individuals online, unknown to him, to contact and harass the victims, including, at times, encouraging these individuals to rape a victim or extort additional sexually explicit images from them.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
New York Man Charged with Fentanyl DistributionRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was indicted today on a charge of narcotics distribution after he sold a kilogram of fentanyl to an undercover law enforcement agent in Fort Lee, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Jose Sanchez Matos, 30, is charged with distribution and possession with intent to distribute more than 400 grams of fentanyl. Matos was previously charged by complaint in August 2019.
According to documents filed in this case and statements made in court:
Law enforcement officers learned Matos was offering to sell a kilogram of fentanyl for $40,000. On Aug. 27, 2019, Matos met with a confidential law enforcement source, agreed to the sale, and provided the source with a package of fentanyl weighing approximately one kilogram.
The count of possession with intent to distribute and distribution of fentanyl carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s charge. She also thanked officers of the New Jersey State Police, under the direction of Superintendent Patrick J. Callahan, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Sarah Sulkowski of the U.S. Attorney’s Cybercrimes Unit in Newark.
New Jersey Man Charged with Traveling Across State Lines Intending to Engage in Sexual Conduct with a ChildRead the Press Release
ALBANY, NEW YORK – Tristan Warner, age 47, of New Jersey, was charged today with interstate travel with the intent to engage in sexual conduct with a minor. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that on January 15, Warner travelled from New Jersey to a location near Watervliet, New York, to meet with an undercover officer posing as a mother who was willing to make her 11-year-old daughter available for a sexual encounter. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
If convicted of this offense, Warner faces up to 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. He would also have to register as a sex offender upon his release from prison.
Warner appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending a hearing on January 20.
This case is being investigated by the FBI, the New York State Police, and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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 https://www.justice.gov/psc.
NDTX Round-Up: January 8 - 14Read the Press Release
SENTENCING – KRIS LANDON GREENE
On January 8, Kris Landon Greene, 23, was sentenced to 10 years in federal prison for conspiracy to distribute a controlled substance and possession of a firearm by a user of a controlled substance. Greene admitted that members of Dallas-based criminal street gang known as “YNG Stretchgang” and himself distributed drugs, including crack cocaine, to customers in the Northern District. To help facilitate his drug sales, Greene possessed a .38 caliber handgun. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert prosecuted this case.
SENTENCING – DANIEL LEE COLLINS
On January 8, Daniel Lee Collins, 35, was sentenced to 5 years in federal prison for possession of child pornography. Collins had several email accounts which contained images and videos of child pornography. Collins accessed these accounts via his cell phone from different locations within the Northern District including his home in Tarrant County. These images of child pornography that Collins possessed depicted real minors including one prepubescent minor. This case was investigated by Homeland Security Investigations and Dallas Police Department. Assistant U.S. Attorney A. Saleem prosecuted this case.
SENTENCING – CHRISTOPHER REED FREED
On January 8, Christopher Reed Freed, 46, was sentenced to 5 years in prison and ordered to pay $244,029.68 in restitution for health care fraud. Freed operated an ambulance service provider located in the Northern District. Freed sought to obtain payment from Medicare for non-emergency ambulance services. As part of the scheme, Freed submitted 754 fraudulent claims to Medicare totaling approximately $664,640. These submitted claims were materially false in that they were for services that were not rendered by Freed. This case was investigated by Health and Human Services – OIG and the Texas OAG Medicaid Fraud Control Unit. Assistant U.S. Attorney Matthew Smid prosecuted this case.
GUILTY PLEA – GABRIEL MAROQUIN, JR.
On January 12, Gabriel Marroquin, Jr., 29, plead guilty to possession with intent to distribute a controlled substance. Marroquin was pulled over by law enforcement officers for a traffic violation. He consented to a search of his truck where officers found 5,959 grams of methamphetamine which he intended to distribute. Officers also located a .9mm handgun, cell phones, and $1,293 on his person. Maroquin faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
GUILTY PLEA – HENRY AGUSTIN MORENO
On January 12, Henry Agustin Moreno, 20, plead guilty to transporting or shipping child pornography. HSI received a tip from Kik that a user in the Dallas area was utilizing the messenger application to distribute child pornography. Agents obtained a search warrant of Moreno’s residence in Irving. Moreno admitted to agents that he downloaded several pornographic files depicting child pornography. He further admitted that he uploaded child pornography in exchange for other videos. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Joseph Magliolo is prosecuting this case.
Muskogee County Resident Pleads Guilty to Attempted Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jaysea Markara Williams, age 19, of Muskogee County, Oklahoma entered a guilty plea to Attempted Robbery In Indian Country, in violation of Title 18, United States Code, Sections 2111, 1151, 1153, and 2, punishable by up to 15 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about July 30, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, by force and violence and by intimidation, did attempt to take items of value from the person and presence of D.L.
The charges arose from an investigation by the Oklahoma State Bureau of Investigation, the Haskell Police Department, the Muskogee Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Conway represented the United States.
Moses Lake Man Sentenced to 20 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Juan Rivera, age 47, of Moses Lake, Washington, was sentenced today after having pleaded guilty on October 20, 2020, to Conspiracy to Produce Child Pornography. United States District Judge Rosanna Malouf Peterson sentenced Rivera to 20 years in federal prison, well above the mandatory minimum sentence required by federal law. Judge Peterson also imposed a lifetime of court supervision after Rivera is released, required him to register as a sex offender upon completion of his prison sentence, and ordered him to pay $48,000 in restitution to his minor victim. Rivera is a citizen of Mexico who was previously removed from the United States in 2003 and 2009.
According to information disclosed during court proceedings, authorities became aware of Rivera’s misconduct in late 2018 when the California Division of Child Services in Tehama County, California (near Sacramento), opened a package containing an anonymous letter. The letter indicated a woman in Tehama County had sent pornographic images of her minor daughter to Rivera, who was then living in Moses Lake, Washington. The letter included an electronic storage device that contained still images and videos of child pornography depicting the woman’s daughter, taken when the child was only 11 years old. The investigation revealed that Rivera and the woman had previously lived together with her daughter in Moses Lake before the woman and her daughter moved to the Sacramento area. After the woman and her daughter moved, Rivera solicited explicit and very specific sexual images of the girl, which her mother recorded and sent to Rivera using their telephones and the Internet. The woman admitted to exploiting her daughter and has been separately convicted and sentenced by California authorities.
The FBI executed search warrants at Rivera’s home in Moses Lake and discovered multiple digital devices containing Rivera’s communications with the victim’s mother, along with multiple images and child pornography videos, including the same images that had accompanied the anonymous letter.
United States Attorney Hyslop said, “Today’s sentencing hearing brings to a close a terrible child sex abuse tragedy perpetrated by Rivera and the victim’s own mother. I sincerely hope that the child-victim is able to gain a sense of resolution as she moves forward with her life. The 20-year sentence of Rivera for this heinous child exploitation reflects the United States Attorney’s Office for the Eastern District of Washington’s commitment to uncovering such nefarious conduct and protecting the most innocent. It sends a strong message that my office will work closely with our federal, state, local and Tribal law enforcement partners to find and prosecute child predators, no matter where they are.”
Earl D. Camp, Acting FBI Special Agent in Charge, Seattle Field Office, said: “Child predators inflict lifelong trauma on their vulnerable victims through their vile acts. This sentence sends a powerful message to would-be sex offenders that together with our law enforcement partners, we will pursue justice to help keep the children of Washington State safe.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation. Led by the United States Attorneys’ Offices and the DOJ Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, and to identify and rescue victims. The PSC Initiative has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on “resources.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation, the Grant County Sheriff’s Department, the Moses Lake Police Department, United States Customs and Border Protection, and the Tehama County (California) Sheriff’s Office. The federal case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington, in cooperation with Carlee A. Bittle, a Deputy Prosecuting Attorney for the Grant County Prosecutor’s Office.
Montgomery County Leader of Reading-Area Bank Fraud Ring Sentenced to 3 ½ Years in PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Nasir Joseph Outlaw, 22, of King of Prussia, PA, was sentenced to 44 months in prison and five years of supervised release, and ordered to pay $47,575 in restitution by United States District Judge Joseph F. Leeson, Jr., for his role as one of the leaders of a large scale bank fraud and identity theft ring that operated primarily in the Reading, PA area.
In December 2019, the defendant pleaded guilty to two counts of bank fraud and two counts of aggravated identity theft. In addition to the conviction of Outlaw, the investigation in this matter led to separate federal charges against 31 other members of the same fraud ring – 30 of whom have since pleaded guilty, while charges remain pending against one member of the fraud ring. One leader of this fraud ring, Steven Ronald Randal of Philadelphia, was previously sentenced on in June 2018 by Judge Leeson to 111 months in prison.
As part of his guilty plea, Outlaw admitted that between June and December 2017, he knowingly executed separate schemes to defraud First National Bank and Fulton Bank through the deposit of fraudulent checks and the withdrawal of cash before the banks discovered that the checks were fraudulent. The defendant admitted that he recruited at least six other co-schemers to participate as account holders and additional recruiters. Outlaw also admitted that he used the account holders’ ATM debit cards and PINs to personally deposit fraudulent checks and make cash withdrawals, he supervised other co-schemers and instructed them to make deposits and withdrawals from the accounts, and he personally obtained checks from inactive or closed accounts that he knew were closed. In total, the defendant was directly responsible for defrauding the two banks out of $47,575.12, and he admitted that he intended to defraud the banks out of more than $64,000.
“This was a sophisticated scheme involving dozens of defendants that took excellent investigative work to unravel,” said First Assistant U.S. Attorney Williams. “Financial fraud and identity theft harm hard-working individuals every day. Our office will continue to aggressively prosecute the perpetrators and seek justice for victims.”
“Nasir Outlaw helped lead this sprawling fraud ring, which left a trail of bad checks across the Reading area,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He figured it was an easy way to score some fast cash for all involved. With today’s sentencing, he’s learned the hard way how wrong he was. To anyone else committing bank fraud: get ready to learn the same lesson, courtesy of the FBI and our law enforcement partners.”
“Nasir Outlaw helped lead this sprawling fraud ring, which left a trail of bad checks across the Reading area,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He figured it was an easy way to score some fast cash for all involved. With today’s sentencing, he’s learned the hard way how wrong he was. To anyone else committing bank fraud: get ready to learn the same lesson, courtesy of the FBI and our law enforcement partners.”
“The thirty-first individual, in a sprawling conspiracy to defraud local banks that stretched across most of Southeastern Pennsylvania, has been sentenced to nearly four years in jail,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division. “This conspiracy relied on the mail to obtain the debit cards needed to discreetly deposit stolen and counterfeit checks into controlled accounts at ATM machines. When criminals use the mail to commit a crime, they shouldn’t be surprised when Postal Inspectors knock on their door along with their law enforcement partners. I want to congratulate the investigators and prosecutors from the FBI, Cumru Township, and the United States Attorney’s Office, who worked alongside Inspectors on this long investigation, who identified and prosecuted nearly three dozen co-conspirators, and who worked to hold those who led the conspiracy accountable with significant sentences.”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Cumru Township Police Department, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Man Charged with $5 Million COVID-Relief FraudRead the Press Release
A Texas man has been charged in the Eastern District of Texas with allegedly filing bank loan applications fraudulently seeking more than $5 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
David P. Burns, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Stephen J. Cox, U.S. Attorney of the Eastern District of Texas; Dale Forrester, Special Agent in Charge of the Treasury Inspector General for Tax Administration’s Cybercrime Investigations Division; Donald Abram, Special Agent in Charge of the SBA Office of Inspector General’s (OIG) Central Region; and Ryan L. Spradlin, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas made the announcement.
Samuel Yates, 32, of Maud, was charged in an indictment with two counts of wire fraud. The indictment alleges that Yates sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have over 400 employees earning wages when, in fact, no employees worked for his purported business.
According to court documents unsealed today in U.S. District Court in Texarkana, Yates allegedly made two fraudulent applications to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the PPP. In the application submitted to the first lender, Yates allegedly sought $5 million in PPP loan proceeds by fraudulently claiming to have over 400 employees with an average monthly payroll of more than $2 million. In the second application, Yates claimed to employ over 100 individuals and was able to obtain a loan over $500,000. With each application, Yates submitted a list of purported employees that he obtained from a publicly available random name generator on the internet. He also submitted forged tax documents with each application.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Criminal Chief Frank Coan and Assistant U.S. Attorney Jonathan R. Hornok for the Eastern District of Texas are prosecuting the case.
The Justice Department acknowledges and thanks the SBA Office of Inspector General, and U.S. Postal Inspection Service for their efforts investigating this mater.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Líderes de Alto Rango de la MS-13 Son Acusados por Delitos de Terrorismo en los Estados UnidosRead the Press Release
Este día, en Central Islip, Nueva York, se presentó una acusación contra 14 de los líderes de mayor rango de la MS-13 en el mundo, conocidos como la Ranfla Nacional, la cual funcionaba como la Junta Directiva de la Organización y dirigió la violencia y la actividad delictiva de la MS-13 en todo el mundo durante casi dos décadas.
Concretamente, según el acta presentada, se les acusa de conspiración para prestar y ocultar apoyo material a terroristas, conspiración para cometer actos de terrorismo que trascienden las fronteras nacionales, conspiración para financiar el terrorismo y conspiración de narcoterrorismo en relación con la dirección de los acusados de la organización delictiva transnacional durante las últimas dos décadas en El Salvador, Estados Unidos, México y otros lugares.
El acusado Borromeo Enrique Henríquez, alias “Diablito de Hollywood,” es ampliamente reconocido como el miembro más poderoso de la Ranfla Nacional. Tres de los acusados, Fredy Iván Jandres-Parada, alias “Lucky de Park View” y “Lacky de Park View;” César Humberto López-Larios, alias “El Greñas de Stoners” y “Oso de Stoners” y Hugo Armando Quinteros-Mineros, alias “Flaco de Francis,” siguen en libertad y deben ser considerados como armados y peligrosos. Se exhorta a los ciudadanos que tengan información sobre su paradero que se pongan en contacto con la línea telefónica gratuita de información MS-13 del Buró Federal de Investigaciones (FBI), 1-866-STP-MS13 (1-866-787-6713), o con el Servicio de Investigaciones de Seguridad Nacional (HSI) del Servicio de Inmigración y Aduanas de los Estados Unidos, en el (866) 347-2423, o en https://www.ice.gov/webform/ice-tip-form. Juntos, el FBI y HSI han ofrecido $20,000 en recompensa por información que lleve al arresto y condena de cada uno de los tres fugitivos. Henríquez y otros 10 acusados están en custodia en El Salvador. Estados Unidos, en conjunto con el Gobierno de El Salvador, estudiarán las opciones para su extradición a los Estados Unidos.
El fiscal general en funciones, Jeffrey A. Rosen; el fiscal en funciones del Distrito Este de Nueva York (EDNY), Seth D. DuCharme; el director de la Fuerza de Tarea Conjunta Vulcano (JTFV), John J. Durham; el director del FBI, Christopher A. Wray, y el director ejecutivo asociado de HSI, Derek Benner, anunciaron la acusación.
El fiscal general en funciones Rosen dijo, “La acusación anunciada hoy es la más amplia y de mayor alcance que se ha hecho en la historia de los EE.UU. contra la MS-13 y su estructura de mando y control. Cuando el fiscal general Barr anunció la creación de la JTFV en agosto de 2019, previó un enfoque transversal que combinaría herramientas procesales ya probadas con estrategias innovadoras diseñadas específicamente para eliminar la capacidad de los líderes de la MS-13 de operar la banda y dirigir su actividad terrorista. Esta acusación refleja un importante paso hacia el logro de ese objetivo. Al trabajar codo a codo con nuestros socios de la aplicación de la ley de EE. UU. y con nuestros socios en El Salvador, hemos acusado a los líderes de más alto rango de la MS-13 de operar una organización criminal transnacional que utiliza el terror para imponer su voluntad en los barrios, negocios y sobre civiles inocentes en Estados Unidos y América Central.”
“La MS-13 es responsable de una ola de muerte y violencia que ha aterrorizado a las comunidades, dejando a los barrios de Long Island y a todo el Distrito Este de Nueva York inundados de sangre,” dijo el fiscal en funciones del Distrito Este de Nueva York (EDNY), Seth D. DuCharme. “Incluso desde la cárcel, la Ranfla Nacional continuó dirigiendo las operaciones globales de la MS-13, reclutando nuevos miembros en la MS-13, incluyendo niños, y orquestando asesinatos y caos en todo el mundo. La innovadora acusación de hoy busca demoler la MS-13 apuntando a su estructura de mando y control y haciendo responsable a la Junta Directiva de la MS-13 por sus acciones terroristas.”
“El FBI está comprometido a combatir todas las formas de terrorismo que amenazan al pueblo estadounidense así como a nuestros socios internacionales,” dijo el director del FBI, Christopher Wray. “En colaboración con nuestros socios federales, estatales, locales e internacionales, tomamos medidas agresivas para atacar y perseguir algunos de los más altos niveles de liderazgo de la MS-13. Esta operación es una clara señal para otros que participan en este tipo de actividad delictiva transnacional: el FBI trabajará incansablemente para llevarlos ante la justicia dondequiera que tengan su base.”
“Por más de una década, HSI se ha mantenido firme en nuestra resolución de desmantelar las pandillas transnacionales como la MS-13,” dijo el director ejecutivo asociado de HSI, Derek Benner. “Como una de las organizaciones criminales más violentas y peligrosas, la MS-13 y la Ranfla Nacional fueron directamente responsables de una violencia y actividad criminal impensables en comunidades a lo largo de los Estados Unidos y Centroamérica. Como resultado de la ardua labor y los considerables recursos dedicados a la Fuerza de Tarea Conjunta Vulcano por nuestros socios en la aplicación de la ley, tanto nacionales como internacionales, esta acusación tendrá un efecto negativo duradero en las futuras actividades ilícitas mundiales de esta organización delictiva transnacional.”
Como se alega en la acusación, la Ranfla Nacional comprende el más alto nivel de liderazgo del MS-13. Aproximadamente en 2002, los acusados y otros dirigentes del MS-13 comenzaron a establecer una estructura de mando y control altamente organizada y jerárquica como medio para llevar a cabo sus decisiones y hacer cumplir sus órdenes, incluso mientras estaban en prisión. Dirigieron actos de violencia y asesinato en El Salvador, Estados Unidos y otros lugares; establecieron campamentos de entrenamiento de tipo militar para sus miembros y obtuvieron armas militares como rifles, pistolas, granadas, artefactos explosivos improvisados (IED) y lanzacohetes. Como líderes de la MS-13, los acusados controlaban franjas de territorio y participaban en actividades de relaciones públicas en nombre de la organización delictiva transnacional. Además, los acusados utilizaban la gran cantidad de miembros de la MS-13 en los Estados Unidos para participar en actividades delictivas, como el tráfico de drogas y la extorsión para recaudar fondos en apoyo de las actividades terroristas de la MS-13 en El Salvador y en otros lugares, y dirigían a sus miembros en los Estados Unidos a cometer actos de violencia, incluidos asesinatos, para promover sus objetivos.
Como se alega también en la acusación, un tema central de las normas aplicadas por la Ranfla Nacional era el requisito de lealtad a la MS-13, o al “barrio.” El requisito de lealtad era fundamental en todos los aspectos de la vida de los miembros del MS-13. Los miembros que desobedecían las reglas, mostraban deslealtad a la banda o a sus líderes, cooperaban con las fuerzas del orden o faltaban al respeto a otros miembros eran sometidos a severos castigos, incluso la muerte. Las normas establecidas por la Ranfla Nacional permitieron que la banda prosperara en algunas partes de los Estados Unidos, incluso dentro del EDNY, donde, bajo el mando de los acusados, la MS-13 ha cometido numerosos actos de violencia, entre ellos asesinatos, intentos de asesinato, asaltos, secuestros, tráfico de drogas, extorsión de personas y empresas, obstrucción de la justicia y envío de las cuotas y el producto de la actividad delictiva por transferencia electrónica a los líderes de la MS-13 en El Salvador.
Como se expone más adelante en el acta de acusación, la Ranfla Nacional ha ejercido su poder sobre el Gobierno de El Salvador cometiendo actos de violencia e intimidación contra funcionarios del gobierno, los organismos de represión y la población de El Salvador en general. Al hacerlo, el Ranfla Nacional ha ordenado el asesinato de funcionarios de los organismos de represión y del Gobierno de El Salvador, así como la “luz verde”, o el asesinato, de un agente especial del FBI destacado en El Salvador que investigaba la MS-13 y sus miembros. Además, al controlar el nivel de violencia del MS-13, la Ranfla Nacional ejerció influencia sobre el Gobierno de El Salvador. Por ejemplo, como se alega en el acta de acusación, desde aproximadamente 2012 hasta aproximadamente 2015, la Ranfla Nacional entró en una “tregua” con el entonces Gobierno de El Salvador. Como parte de ese acuerdo, la Ranfla Nacional ordenó a la MS-13 que redujera los homicidios en El Salvador a cambio de mejores condiciones carcelarias, prestaciones y pagos en efectivo. En 2015, cuando este acuerdo se derrumbó, la Ranfla Nacional culpó a los Estados Unidos, creyendo que el gobierno de los Estados Unidos presionó al gobierno de El Salvador para que pusiera fin a la “tregua” como condición para recibir fondos de cooperación. A partir de entonces, a principios de 2016, la Ranfla Nacional comenzó a planificar una importante campaña de violencia coordinada en El Salvador en represalia por las medidas más severas impuestas a sus miembros tras el fin de la “tregua.” Como se alega en la acusación, los acusados ordenaron a todas las clicas de El Salvador que crearan una unidad especializada de miembros de la MS-13 para atacar a los agentes de policía, los militares y los funcionarios gubernamentales de El Salvador. Estos miembros se sometieron a entrenamiento militar en los campamentos de entrenamiento militar de la MS-13 en El Salvador. Los acusados también ordenaron a todas las clicas, incluidas las de los Estados Unidos y el EDNY, que proporcionarán los beneficios de sus actividades delictivas relacionadas con la MS-13 para que se utilizaran en la compra de armas para los ataques previstos contra la policía en El Salvador. En total, los acusados recaudaron más de $600,000 para este fondo que se utilizó para comprar armas, incluyendo ametralladoras M-16 y M-60, granadas, IED y lanzacohetes. Además, los acusados ordenaron un aumento de la violencia, incluyendo asesinatos, en el EDNY y en otras partes de los Estados Unidos, que vieron un dramático aumento de la violencia con las MS-13 en 2016 y 2017.
Por último, como se alega en la acusación, la Ranfla Nacional dirigió la expansión de las actividades de la MS-13 en todo el mundo, sobre todo en México, donde se envió a varios dirigentes de alto rango para que organizaran operaciones. En México, los líderes de la MS-13 establecieron conexiones para obtener narcóticos y armas de fuego, hicieron negocios con los cárteles mexicanos de la droga, como los Zetas, el Cártel del Golfo, el Cártel de Jalisco Nueva Generación (CJNG) y el Cártel de Sinaloa, y se dedicaron a la trata y el contrabando de personas.
En agosto de 2019, el fiscal general William P. Barr creó la JTFV para llevar a cabo las recomendaciones del Subcomité MS-13 formado en el marco del Grupo de Trabajo del fiscal general sobre la Delincuencia Organizada Transnacional. El Grupo de Tarea del fiscal general fue el resultado de la Orden Ejecutiva del presidente Donald J. Trump, de febrero de 2017, en la que se ordenaba a los Departamentos de Justicia, Estado y Seguridad Nacional y a la Oficina del Director de Inteligencia Nacional que coordinaran un enfoque de todo el gobierno para desmantelar las organizaciones delictivas transnacionales, como la MS-13, y aumentar la seguridad del pueblo estadounidense.
Desde su creación, la JTFV ha aplicado con éxito un enfoque de todo el gobierno para combatir la MS-13, que incluye el aumento de la coordinación y la colaboración con asociados extranjeros en la aplicación de la ley, entre ellos El Salvador, México, Honduras y Guatemala; la designación de programas, camarillas y líderes de la MS-13 prioritarios, que tienen el mayor impacto en los Estados Unidos, para enjuiciamientos selectivos; y la coordinación de acusaciones importantes de la MS-13 en las oficinas de los fiscales de los Estados Unidos en todo el país, incluido el primer uso de cargos de seguridad nacional contra los líderes de la MS-13.
La JTFV ha estado compuesta por miembros de la División de Seguridad Nacional y de la División Penal del Departamento de Justicia, así como de la División de los Estados Unidos Fiscalías de todo el país, incluyendo el EDNY; el Distrito de Nueva Jersey; el Distrito Norte de Ohio; el Distrito de Utah; el Distrito Este de Virginia; el Distrito de Massachusetts; el Distrito Este de Texas; el Distrito Sur de Nueva York; el Distrito de Alaska; el Distrito Sur de Florida; el Distrito Sur de California; el Distrito de Nevada, y el Distrito de Columbia. Además, todos los organismos de aplicación de la ley del Departamento de Justicia participan en el esfuerzo, incluidos el FBI, la Administración de Lucha contra las Drogas de los Estados Unidos, la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos, el Servicio de Alguaciles de los Estados Unidos y la Oficina de Prisiones de los Estados Unidos. Además, HSI también desempeña un papel fundamental en el JTFV.
El fiscal general, en funciones, Jeffrey A. Rosen, expresó su sincero agradecimiento al fiscal general de El Salvador, Raúl Melara, por la asistencia de su oficina, así como a los investigadores de la Policía Nacional Civil de El Salvador, unidad del Centro Transnacional Antipandillas, por su inestimable cooperación. Además, numerosos componentes del Departamento de Justicia contribuyeron a esta acusación, entre ellos: la Sección de Lucha contra el Terrorismo de la División de Seguridad Nacional; la Oficina de Asuntos Internacionales del Departamento de Justicia; la Oficina de Desarrollo, Asistencia y Capacitación del Ministerio Público en el Extranjero de la División Penal; la Sección de Lucha contra la Delincuencia Organizada y las Pandillas; y la Oficina Ejecutiva de los Grupos de Tareas para la Lucha contra la Delincuencia Organizada contra las Drogas. Por último, en consonancia con la Orden Ejecutiva del presidente Trump y el enfoque de todo el gobierno del fiscal general, el Departamento de Estado ha prestado un apoyo fundamental a la misión de la JTFV.
Los cargos anunciados hoy son acusaciones y los acusados se presumen inocentes a menos y hasta que se demuestre su culpabilidad más allá de toda duda razonable en un tribunal de justicia. Si son declarados culpables, los acusados se enfrentan a una sentencia máxima de cadena perpetua.
El caso del gobierno está siendo procesado por los fiscales adjuntos James Donnelly, Matthew Shepherd y Stewart Young de JTFV, y los fiscales adjuntos Paul G. Scotti, Justina L. Geraci y Megan E. Farrell de la División Criminal de Long Island del EDNY.
Para saber más sobre los esfuerzos del Departamento de Justicia en la lucha contra la MS-13 de 2016 a 2020, véase el informe en: /media/1120601/dl?inline.
Una copia de la acusación y los carteles de buscados en español haciendo clic en: acusación, Fredy Ivan Jandres-Parada póster buscado en español, Cesar Humberto Lopez-Larios póster buscado en español, y Hugo Armando Quinteros-Mineros Wanted póster buscado en español.
Los Acusados:
BORROMEO ENRIQUE HENRIQUEZ (“Diablito de Hollywood”)
Edad: 42 años
ELMER CANALES-RIVERA (“Crook de Hollywood”)
Edad: 44 años
EFRAIN CORTEZ (“Tigre de Park View” y “Viejo Tigre de Park View”)
Edad: 51 años
RICARDO ALBERTO DIAZ (“Rata de Sotavento” y “Ratón de Sotavento”)
Edad: 47 años
EDUARDO ERAZO-NOLASCO (“Colocho de Western” y “Mustage de Western”)
Edad: 48 años
EDSON SACHARY EUFEMIA (“Speedy de Park View”)
Edad: 46 años
JOSE FERNANDEZ FLORES-CUBAS (“Cola de Western”)
Edad: 46 años
FREDY IVAN JANDRES-PARADA (“Lucky de Park View” y “Lacky de Park View”)
Edad: 45 años
LEONEL ALEXANDER LEONARDO (“El Necio de San Cocos”)
Edad: 40 años
CESAR HUMBERTO LOPEZ-LARIOS (“El Greñas de Stoners” y “Oso de Stoners”)
Edad: 42 años
JOSE LUIS MENDOZA-FIGUEROA (“Pavas de 7-11” y “Viejo Pavas de 7-11”)
Edad: 56 años
HUGO ARMANDO QUINTEROS-MINEROS (“Flaco de Francis”)
Edad: 48 años
SAUL ANTONIO TURCIOS (“Trece de Teclas”)
Edad: 42 años
ARISTIDES DIONISIO UMANZOR (“Sirra de Teclas”)
Edad: 42 años
Lubbock Dentist Charged with Child Pornography CrimesRead the Press Release
A Lubbock dentist has been charged with child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jason Paul White, 41, was charged via criminal complaint Wednesday with receipt and distribution of child pornography. He was arrested at his business in Lubbock on Thursday and made his initial appearance in federal court today before Magistrate Judge D. Gordon Bryant.
“The horrific nature of Mr. White’s crimes is only compounded by the fact that he leveraged his position of trust to target the most vulnerable,” said Acting U.S. Attorney Prerak Shah. “Our office will continue to hunt down and prosecute these despicable individuals who exploit minors for sexual gratification and use technology to further victimize our children.”
"It is the FBI's role to identify the child victims of individuals that choose to prey upon those who are unable to articulate abusive behavior,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “We are proud to work with our partners from Lubbock Police Department to investigate these allegations of abuse and to provide appropriate access to victim services and support. If anyone has information about improper or unlawful activities by Mr. White or the production of child pornography they should contact the FBI or their local law enforcement agency."
In December 2020, the Lubbock Police Department received a tip from two parents that Mr. White had engaged in an inappropriate relationship with their minor children, a federal criminal complaint alleges.
According to the complaint, Mr. White allegedly provided adult sexual devices to three minor males. He requested videos and images of sexually explicit conduct from the minors via text messages and social media applications and received and distributed at least one image of child pornography.
In spring 2020, Mr. White allegedly showed a 13-year-old a video of himself engaged in sexual acts. Mr. White also contacted the 13-year-old by text message and social media to see if he enjoyed the adult sexual device that was given to him.
In summer 2020, Mr. White allegedly requested a nude photo from a 17-year-old minor male while at his house in Lubbock. The minor took a nude photo privately in a bedroom with his cell phone. Mr. White then took the minor’s cell phone and forwarded the image to himself and another individual.
At his ranch in Post, Texas, Mr. White allegedly coerced a 16-year-old minor into partially undressing and showed him a video of a juvenile engaged in sexual acts. Additionally, Mr. White requested videos of the minor using the adult sexual device that he gave the minor as repayment for the gift.
If convicted, Mr. White faces up to 20 years in federal prison.
The Lubbock Police Department Internet Crimes Against Children Task Force, the Federal Bureau of Investigation’s Lubbock Resident Agency, and Homeland Security Investigations Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Travis Lawrence Ferguson, 32, of Lincoln, was sentenced on January 14, 2021 by Chief United States District Judge John M. Gerrard to 10 years and 10 months in federal prison for conspiracy to distribute and possess with the intent to distribute methamphetamine. Ferguson was found guilty of the charge by a Lincoln jury in October of 2020 after a four-day trial. The jury found Ferguson responsible for less than 50 grams of methamphetamine mixture. Following the prison term, Ferguson will serve a three-year term of supervised release. There is no parole in the federal system.
Over the course of the trial, a number of Ferguson’s co-conspirators testified about his involvement in the distribution of methamphetamine in the Lincoln area between January of 2015 and April of 2019. In addition, a Lincoln Police Officer found Ferguson to be in possession of a digital scale containing methamphetamine residue in January of 2019, and Ferguson was identified from store surveillance video as the person who drove one of his co-conspirators to a Lincoln convenience store to sell methamphetamine to an undercover police officer in February of 2019.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lexington Woman Sentenced to Nine Years in Federal Prison on Firearm and Methamphetamine ChargesRead the Press Release
Columbia, South Carolina -- United States Attorney Peter M. McCoy, Jr. announced today that Natalie Michelle Quarles, 45, of Lexington, was sentenced to nine years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute methamphetamine. The charges followed a traffic stop in which Quarles possessed a loaded firearm; approximately $1,400.00 in cash; marijuana, oxycodone and acetaminophen pills; hydrocodone and acetaminophen pills; amphetamine pills; and methamphetamine.
Evidence presented in court established that on July 3, 2018, a deputy with the Lexington County Sheriff’s Department initiated a traffic stop on a vehicle for failure to maintain its lane. Quarles was the driver and sole occupant of the vehicle. When the deputy asked for her driver’s license, Quarles admitted that her license was under suspension and that she had been deemed a habitual traffic offender by the South Carolina Department of Motor Vehicles. The deputy verified the information through dispatch. While placing her under arrest for driving under suspension, Quarles stated that she had a gun as well as some marijuana and pills in the vehicle. In the vehicle, the deputy located a loaded firearm; approximately $1,400.00 in cash; marijuana, oxycodone and acetaminophen pills; hydrocodone and acetaminophen pills; amphetamine pills; and methamphetamine. Quarles admitted to the deputy that she knew she was prohibited from possessing the firearm.
Quarles is prohibited from possessing firearms and ammunition based upon her prior state convictions. Specifically, in 2008, she received concurrent sentences for the following convictions: five years for assault and battery of a high and aggravated nature; four years for grand larceny; one year for receiving stolen goods greater than $5000; two years for burglary second degree non-violent; and two years for strong arm robbery. Following her release from prison, she was convicted in 2014 of false information and driving under suspension. In 2015, she was convicted of possession of methamphetamine and shoplifting, sentenced to 18 months, and placed on state probation for 18 months. Approximately one year later, Quarles violated her probation and it was revoked.
United States District Judge Mary Geiger Lewis sentenced Quarles to 108 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Department. Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit Solicitor’s Office prosecuted the case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (“PSN”), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lexington Man Sentenced to 120 Months for Armed Cocaine and Heroin TraffickingRead the Press Release
LEXINGTON, Ky. - A Lexington, Ky., man, Oscar Bustamante, 29, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 120 months in federal prison, for trafficking in cocaine and heroin, and possessing firearms in furtherance of drug trafficking.
According to his plea agreement, on November 7, 2019, law enforcement found Bustamante in possession of 104 grams of heroin and 113 grams of cocaine. Additionally, law enforcement found $4,792 in cash and digital scales with residue on them in the cabinet, along with three firearms in the top of his bedroom closet.
Bustamante pleaded guilty to the federal charge in September 2020.
Under federal law, Bustamante must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, announced the sentencing.
The investigation was conducted by DEA and Lexington Police Department. The United States was represented in the case by Assistant U.S. Attorney Emily Greenfield.
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Lawrenceville, Georgia Man Pleads Guilty to Conspiracy to Distribute Unapproved Drugs and Smuggling of GoodsRead the Press Release
CONCORD - George Kuiper, 73, of Lawrenceville, Georgia pleaded guilty in federal court on Thursday to conspiracy to distribute unapproved drugs, distribution of unapproved drugs, and unlawful smuggling of goods into the United States, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from 2006 to 2020, Kuiper operated an internet pharmacy on various websites that he managed from his residence in Lawrenceville, Georgia. On his websites, Kuiper sold over 100 products, including prescription drugs and controlled substances which he obtained from foreign sources. Some of the substances were purchased by customers in New Hampshire. Kuiper’s best-selling product was modafinil, a Schedule IV controlled substance and prescription new drug not approved by the FDA. None of Kuiper’s websites were ever registered with the DEA to distribute controlled substances.
Kuiper is scheduled to be sentenced on April 22, 2021.
“Illegal internet pharmacies can mislead customers about the safety and legality of the products they are selling,” said U.S. Attorney Murray. “Customers who purchase unapproved drugs and drugs that have been smuggled into the United States may find themselves taking substances that do more harm than good. In order to protect public health and safety, we will work closely with our law enforcement partners to identify and prosecute those who seek to profit from selling unapproved or smuggled drugs.”
“Selling smuggled drugs of potentially unknown origin and potentially dangerous ingredients puts consumers at risk,” Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations New York Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations with assistance from Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald and Special Assistant U.S. Attorney Sarah Hawkins.
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Investigation Concluded in Luzerne County Ballot CaseRead the Press Release
HARRISBURG – Acting U.S. Attorney Bruce D. Brandler today announced that the investigation into nine ballots that were discarded by a former temporary employee of the Luzerne County Elections Bureau has been concluded.
“After a thorough investigation conducted by the FBI and prosecutors from my office, we have determined that there is insufficient evidence to prove criminal intent on the part of the person who discarded the ballots,” said Brandler. “Therefore, no criminal charges will be filed and the matter is closed.”
The federal investigation resulted from a request by the Luzerne County District Attorney’s Office after it learned that nine completed general election ballots had been received and discarded by the former employee. The investigation revealed that the nine completed military ballots were discarded and subsequently retrieved from a dumpster.
Acting U.S. Attorney Brandler thanked the FBI for devoting the necessary resources to conduct a thorough and complete investigation. He also thanked the staff of the Elections Bureau and other Luzerne County officials for cooperating with investigators and prosecutors.
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Indictment Charges Madison Man with Defrauding Investors of Alcoholic Beverage CompanyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen Simpson, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in Hartford has returned a 17-count indictment charging BRIAN HUGHES, 56, of Madison, with offenses stemming from an alleged scheme to defraud investors of an alcoholic beverage company.
The indictment was returned on January 12, 2021, and was unsealed after Hughes was arrested yesterday. Following his arrest, Hughes appeared via videoconference before U.S. Magistrate Judge Robert M. Spector and entered a plea of not guilty to the charges. He is detained pending a detention hearing that is scheduled for January 21 at 1:00 p.m.
The indictment alleges that, in March 2015, Hughes founded Handcrafted Brands, LLC (“HCB”), for the purpose of raising money to purchase Salute American Vodka, (“Salute”) an alcoholic beverage company. Hughes subsequently solicited and received funds from investors ostensibly for the purchase and subsequent development of Salute. Hughes represented to investors that their investments would be used to purchase and operate Salute, that investors would be compensated with equity shares of HCB or Salute, and that Hughes would not take a salary from HCB. In fact, Hughes misused investor funds on expenses unrelated to the purchase and development of Salute and diverted hundreds of thousands of dollars of investor funds for his personal use. In addition, some victim investors were not compensated with equity shares of HCB or Salute.
The indictment further alleges that Hughes solicited investments purportedly on behalf of another company, which is identified in court documents as “Company-1.” In fact, Hughes had no official relationship with Company-1 and could not raise capital on its behalf. Hughes also solicited investment money by falsely representing to investors that he owned a percentage share of Company-1, that he planned to acquire Company-1, and that Company-1 or its parent company planned to acquire his business. In fact, Hughes spent the investment money associated with Company-1 on personal expenses and on other expenses unrelated to Company-1.
It is further alleged that, in order to conceal his fraud, Hughes made “lulling” payments to investors. Lulling payments purportedly represent profits from an initial investment designed to inspire confidence that an investment is yielding results, and are made to encourage further investment. In fact, the source of the funds underlying the lulling payments made by Hughes included funds from other investors.
Finally, it is alleged that Hughes evaded the assessment of his tax obligations for the 2015 through 2018 tax years by substantially underreporting his income to the IRS.
The indictment charges HUGHES with seven counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; five counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count; one count of money laundering, an offense that carries a maximum term of imprisonment of 20 years, and four counts of tax evasion, an offense that carries a maximum term of imprisonment of five years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Human Trafficking Awareness Month Podcast AnnouncedRead the Press Release
RALEIGH, N.C. – The United States Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr., announces a podcast in observance of Human Trafficking Awareness month. January is designated as National Human Trafficking Awareness Month.
You are invited to listen to a discussion about the successful prosecution of Brandon Jennings for the crime of Human Trafficking by the prosecution team. (https://www.justice.gov/usao-ednc/pr/raleigh-man-receives-life-imprisonment-human-trafficking) The prosecutor, investigators, and Victim-Witness Coordinator detail the challenges and rewards associated with complex Human Trafficking cases. The podcast was produced by the North Carolina Justice Academy and is located at https://ncdoj.gov/ncja/human-trafficking-podcast/.
Georgia Man Pleads Guilty to Felon in Possession of Firearm and Ammunition ChargeRead the Press Release
BOSTON – A Georgia man pleaded guilty on Wednesday, Jan. 15, 2021 in federal court in Boston to illegal possession of a semi-automatic pistol.
Herbert Palmer, 39, of Decatur, Ga., pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for May 13, 2021.
On Aug. 12, 2020, police were dispatched to an apartment in New Bedford following a report of a disturbance where a man had a gun and was pointing it to a woman’s head. After police arrived, the man, later identified as Palmer, exited the apartment and told police that he had a knife on his person. A search of Palmer revealed he had a folding knife and firearm magazine loaded with four rounds of .380 caliber ammunition, which Palmer claimed to be carrying because it did not fit his BB gun, although he denied having a gun.
A witness informed police that Palmer had pointed a small black gun at individuals while inside the apartment that evening and that when Palmer manipulated the firearm, the magazine dropped out of the handgun and fell to the floor. Palmer picked up the magazine and then proceeded to the second floor to change his clothing. Police searched the apartment and located a Lorcin, Model 380. .380 caliber semi-automatic pistol in a second-floor bedroom. Authorities confirmed the ammunition recovered from Palmer’s person was the same caliber as the firearm.
According to court documents, Palmer was convicted in 2010 of assault and battery with a dangerous weapon, and is therefore prohibited from possessing firearms and ammunition.
The charging statute provides for sentence of up to 10 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 on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Former government contractor sentenced for role in bribery and kickback schemeRead the Press Release
WASHINGTON – A former government contractor was sentenced today for his role in a bribery and kickback scheme where he paid bribes to secure U.S. Army contracts.
David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Kenji M. Price, U.S. Attorney of the District of Hawaii; Ray Park, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s (Army-CID) Pacific Fraud Field Office; Bryan Denny, Special Agent in Charge of the U.S. Defense Criminal Investigative Service (DCIS); and Eli “Sam” Miranda, Special Agent in Charge of the FBI’s Honolulu Field Office made the announcement.
John Winslett, 66, of Bristol, Rhode Island, was sentenced to 70 months in prison followed by three years of supervised release before Chief Judge J. Michael Seabright in the District of Hawaii.
According to court documents and information presented in court, Winslett admitted that from 2011 to 2018, Winslett paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks, in order to steer federal contracts worth at least $19 million to his employer, a government contractor. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts.
Winslett further admitted that he accepted $723,333.33 in kickbacks from a local subcontractor in exchange for Winslett assigning those contracts to that local subcontractor.
Army-CID, DCIS and the FBI investigated this case.
Trial Attorney Laura Connelly and Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein of the District of Hawaii are prosecuting the case.
Former Social Security Employee Pleads Guilty to Federal Charges for a Scheme to Obtain over $236,000 in Social Security Benefits by Allegedly Submitting Fictitious ClaimsRead the Press Release
Baltimore, Maryland – Cheikh Ahmet Tidiane Cisse, age 45, of Baltimore, Maryland, pleaded guilty today to federal charges of theft of government property and aggravated identity theft, in connection with a scheme in which Cisse filed fraudulent claims for Social Security benefits using fictitious identities and the identities of actual individuals, and attempted to collected over $236,000.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Gail S. Ennis, Inspector General for the Social Security Administration.
“SSA possesses sensitive and personal information for almost every person in this country, and SSA employees have a fundamental duty to protect that information,” said Inspector General Ennis. “We take any violation of the public trust very seriously, and we will continue to work with SSA to identify and root out suspected employee fraud. I want to thank the U.S. Attorney’s Office for its support of this investigation, which resulted in today’s plea.”
Cisse was employed by the Social Security Administration (SSA) as a Claims Specialist in SSA’s Office of International Operations. Cisse admitted that between July 2018 and March 2019, he filed fictitious claims for benefits using stolen identities and identity documents he obtained through the course of his employment with SSA in order to steal or attempt to steal over $236,000 from SSA.
According to his plea agreement, as part of his job, Cisse was responsible for reviewing the identity documents of social security claimants living abroad, such as passports, marriage certificates, and identity cards. Cisse then created new, fictitious identities in SSA's database, often using information from the foreign identity documents he reviewed, which were issued social security numbers (SSNs). Cisse used the fictitious identities to file fraudulent claims for social security divorced spouse survivor's benefits against actual deceased individuals, directing the benefits payments to debit cards or bank accounts he opened in the names of the fictitious identities using the identity documents he obtained through his employment. Cisse sometimes provided his home address for that of the fictitious claimants, but also provided an address in Quebec, Canada, that corresponded to a mail forwarding service to which he subscribed, making it appear as if the fictitious claimants lived abroad. Through this mail forwarding service, Cisse received mail associated with the scheme, including genuine social security cards in the names of the fictitious identities and benefits payments.
As detailed in the plea agreement, in one instance, when SSA stopped payment on the $10,734 back payment for one of the fraudulent claims due to suspected fraud, Cisse contacted SSA’s payment center and falsely relayed that the purported beneficiary had called inquiring about the whereabouts of the payment, causing the SSA payment center to issue the back payment by direct deposit. Cisse received a total of approximately $25,916 as a result of this fraudulent claim, which he spent through cash withdrawals and retail purchases.
In total, Cisse submitted at least nine fraudulent claims in stolen and fictitious identities, causing SSA to pay approximately $87,000 in fraudulent claims through direct deposit, issue approximately $46,000 in checks that were never negotiated, and authorize approximately $103,000 in claims that SSA halted before payments were issued. Cisse personally received and spent $82,047 as a result of the scheme.
As part of his plea agreement, Cisse will be required to pay restitution of $83,247 and forfeit $30,000 seized from Cisse’s home and pay a money judgment in the amount of $51,107.
Cisse faces a maximum sentence of 10 years in federal prison for theft of government property; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell, III has scheduled sentencing for April 19, 2021, at 11:00 a.m.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Former Pierce County public housing executive pleads guilty to multi-million-dollar embezzlement schemeRead the Press Release
Tacoma – A former Pierce County Housing Authority executive pleaded guilty today to wire fraud in connection with her scheme to steal nearly $7 million, announced U.S. Attorney Brian T. Moran. According to the plea agreement, between March 2016 and July 2019, COVA CAMPBELL, aka Cova Hunter, used a variety of schemes to divert $6.9 in public money to her own bank accounts. CAMPBELL faces up to 20 years in prison when sentenced by U.S. District Judge Robert J. Bryan on April 8, 2021.
According to records filed in the case, CAMPBELL initiated wire transfers of as much as $500,000 from Pierce County Housing Authority accounts to her own bank accounts. One of the transfers was in connection with the purchase of land in Oklahoma. CAMBELL also prepared and submitted false invoices to PCHA and made them appear they were from an outside vendor. PCHA paid the invoices, and the money went into CAMPBELL’s bank accounts. CAMPBELL covered up her fraud by labeling these fraudulent charges as “investments,” “insurance,” or “maintenance” in the PCHA accounting records.
According to the plea agreement, CAMPBELL used the money to play for land and improvements to that land in Oklahoma, for improvements to her home in Lakewood, Washington, and for travel including trips to Las Vegas and the chartering of a private jet. She used some of the money for the purchase of two cars. She also diverted large amounts of the money for gambling and internet gaming.
The Washington State Auditor’s Office uncovered the financial irregularities, and CAMPBELL’s employment was terminated by the Housing Authority on August 8, 2019.
CAMPBELL was arrested in March 2020 in Redbird, Oklahoma.
Wire fraud is punishable by up to twenty years in prison. CAMPBELL is required to make restitution of $6,997,486.
The case is being investigated by the FBI and HUD-OIG. The case is being prosecuted by Assistant United States Attorney Brian Werner.
Former Government Contractor Sentenced for Role in Bribery and Kickback SchemeRead the Press Release
A former government contractor was sentenced today for his role in a bribery and kickback scheme where he paid bribes to secure U.S. Army contracts.
David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Kenji M. Price, U.S. Attorney of the District of Hawaii; Ray Park, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s (Army-CID) Pacific Fraud Field Office; Bryan Denny, Special Agent in Charge of the U.S. Defense Criminal Investigative Service (DCIS); and Eli “Sam” Miranda, Special Agent in Charge of the FBI’s Honolulu Field Office made the announcement.
John Winslett, 66, of Bristol, Rhode Island, was sentenced to 70 months in prison followed by three years of supervised release before Chief Judge J. Michael Seabright in the District of Hawaii.
According to court documents and information presented in court, Winslett admitted that from 2011 to 2018, he paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks, in order to steer federal contracts worth at least $19 million to his employer, a government contractor. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts.
Winslett further admitted that he accepted $723,333.33 in kickbacks from a local subcontractor in exchange for Winslett assigning those contracts to that local subcontractor.
Army-CID, DCIS and the FBI investigated this case.
Trial Attorney Laura Connelly and Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein of the District of Hawaii are prosecuting the case.
Fitchburg Man Sentenced to 38 Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A Fitchburg man was sentenced today on enticement of a minor and child pornography charges in federal court in Worcester.
Ryan Decarolis, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 38 years in prison and a lifetime of supervised release. The government recommend a sentence of 85 years in prison.
In September 2020, Decarolis pleaded guilty to five counts of sexual exploitation of a minor, two counts of distribution of child pornography and one count of possession of child pornography. Decarolis has been in custody since his arrest on Aug. 2, 2019.
Decarolis admitted that he used a social media account to communicate with an individual who was subsequently charged with production and distribution of child pornography. With the consent of that individual, an undercover federal agent assumed control of that individual’s account and began communicating in an undercover capacity with Decarolis. In January 2019, Decarolis distributed child pornography to the undercover officer, and in April 2019, Decarolis provided the undercover officer with access to his Dropbox account, which contained hundreds of images and videos depicting child pornography. Included in that material was at least one video that depicted Decarolis sexually assaulting a young boy.
In August 2019, during a search of Decarolis’s Fitchburg residence, agents seized a tablet belonging to Decarolis that contained additional videos depicting child pornography. A second Dropbox account used by Decarolis was also discovered that contained videos depicting the sexual exploitation of several children. Included within that material were numerous images and videos that Decarolis produced himself, some of which depicted Decarolis separately sexually assaulting at least three boys under the age of 12 and a fourth boy who was 12 years old.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal court restrains Toledo pharmacy and two pharmacists from dispensing opioids or other controlled substancesRead the Press Release
A federal court in Ohio issued a temporary restraining order enjoining a Toledo, Ohio, pharmacy and two of its pharmacists from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint filed Jan. 6, 2021, and unsealed Jan. 14, 2021, in the Northern District of Ohio, the United States alleges that Shaffer Pharmacy, its pharmacist owner Thomas Tadsen, and pharmacist Wilson Bunton repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Jack Zouhary granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Federal law requires pharmacists to ensure that the controlled substance prescriptions they fill are medically legitimate,” said Acting Assistant Attorney General Jennifer B. Dickey of the Justice Department's Civil Division. “The Department of Justice will continue to work with DEA and our law enforcement partners to combat the opioid crisis by holding accountable pharmacies that abandon their obligations.”
“The illegal prescribing or dispensing of narcotics by medical personnel only serves to further worsen the opioid epidemic in northern Ohio and increase the number of overdose deaths in our community,” said Acting U.S. Attorney Bridget M. Brennan for the Northern District of Ohio. “Allegations of prescription misuse continue to be a priority for this office, and offenders should expect significant consequences.”
“Dispensing controlled substances is a privilege that requires abiding by the law,” said Drug Enforcement Administration (DEA) Special Agent in Charge Keith Martin. “DEA is committed to ensuring that those who have pledged to follow our nation’s drug laws are living up to that responsibility.”
“We continue to face an uphill battle against drug abuse and addiction, and it is unthinkable that a licensed provider would contribute to this growing epidemic,” said Special Agent in Charge Eric B. Smith of the FBI, Cleveland Division. “Restraining the ability of these defendants to continue filling prescriptions without medical necessity is a significant step. The FBI will continue efforts to identify and hold accountable any medical professional that violates their legal obligation to do no harm when they engage in criminal misconduct."
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone, hydrocodone, oxymorphone, buprenorphine, and fentanyl, often in dangerous combination with other prescription drugs such as benzodiazepines (i.e., sedatives indicated for the treatment of anxiety, such as Xanax), and muscle relaxants (e.g., carisoprodol, also known by its brand name, Soma). The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio, and Trial Attorneys Scott Dahlquist and Maryann McGuire of the Justice Department’s Consumer Protection Branch. This investigation is being conducted by the DEA, FBI, U.S. Department of Health and Human Services Office of Inspector General, the State of Ohio Board of Pharmacy, the Ohio Bureau of Workers’ Compensation, and the Ohio Attorney General’s Healthcare Fraud section.
Federal Grand Jury Returns Indictment Charging Red Lake Man with MurderRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging RALPH EDWARD CLOUD, JR., 36, with murder in the second degree. CLOUD made his initial appearance today before Magistrate Judge Jon T. Huseby in U.S. District Court.
According to the allegations in the indictment, on September 12, 2020, on the Red Lake Indian Reservation, CLOUD unlawfully killed an individual with malice aforethought.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
This case is being prosecuted by Assistant U.S. Attorneys Emily A. Polachek and Deidre Y. Aanstad.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
RALPH EDWARD CLOUD, JR., 36
Red Lake, Minn.
Charges:
- Murder in the second degree, 1 count
###
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Federal Court Restrains Toledo Pharmacy and Two Pharmacists from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
A federal court in Ohio issued a temporary restraining order enjoining a Toledo, Ohio, pharmacy and two of its pharmacists from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint filed Jan. 6, 2021, and unsealed Jan. 14, 2021, in the Northern District of Ohio, the United States alleges that Shaffer Pharmacy, its pharmacist owner Thomas Tadsen, and pharmacist Wilson Bunton repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Jack Zouhary granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Federal law requires pharmacists to ensure that the controlled substance prescriptions they fill are medically legitimate,” said Acting Assistant Attorney General Jennifer B. Dickey of the Justice Department's Civil Division. “The Department of Justice will continue to work with DEA and our law enforcement partners to combat the opioid crisis by holding accountable pharmacies that abandon their obligations.”
“The illegal prescribing or dispensing of narcotics by medical personnel only serves to further worsen the opioid epidemic in northern Ohio and increase the number of overdose deaths in our community,” said Acting U.S. Attorney Bridget M. Brennan for the Northern District of Ohio. “Allegations of prescription misuse continue to be a priority for this office, and offenders should expect significant consequences.”
“Dispensing controlled substances is a privilege that requires abiding by the law,” said Drug Enforcement Administration (DEA) Special Agent in Charge Keith Martin. “DEA is committed to ensuring that those who have pledged to follow our nation’s drug laws are living up to that responsibility.”
“We continue to face an uphill battle against drug abuse and addiction, and it is unthinkable that a licensed provider would contribute to this growing epidemic,” said Special Agent in Charge Eric B. Smith of the FBI, Cleveland Division. “Restraining the ability of these defendants to continue filling prescriptions without medical necessity is a significant step. The FBI will continue efforts to identify and hold accountable any medical professional that violates their legal obligation to do no harm when they engage in criminal misconduct."
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone, hydrocodone, oxymorphone, buprenorphine, and fentanyl, often in dangerous combination with other prescription drugs such as benzodiazepines (i.e., sedatives indicated for the treatment of anxiety, such as Xanax), and muscle relaxants (e.g., carisoprodol, also known by its brand name, Soma). The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio, and Trial Attorneys Scott Dahlquist and Maryann McGuire of the Justice Department’s Consumer Protection Branch. This investigation is being conducted by the DEA, FBI, U.S. Department of Health and Human Services Office of Inspector General, the State of Ohio Board of Pharmacy, the Ohio Bureau of Workers’ Compensation, and the Ohio Attorney General’s Medicaid Fraud Control Unit.
Dos hombres de Maui fueron sentenciados con crímenes de odio por ataque por motivos racistasRead the Press Release
Un gran jurado federal en Honolulu, Hawaii, regresó una acusación de cargos a Kaulana Alo Kaonohi y Levi Aki, Jr. con un crimen de odio por su ataque por motivos racistas a un hombre caucásico que intentaba mudarse al vecindario de los acusados nativos de Hawaii en Kahakuloa, Maui.
Hoy anunciaron la acusación el Fiscal General Interino, John B. Daukas, de la División de Derechos Civiles del Departamento de Justicia, el Fiscal de EE.UU., Kenji M. Price para el Distrito de Hawaii y el Agente Especial a Cargo del FBI de Honolulu, Eli S. Miranda.
La acusación alega que el 13 de febrero 2014, Kaonohi y Aki willfully le provocaron lesiones corporales a C.K por medio del uso de un arma peligrosa (una pala), por la raza y color verdaderos y percibidos de C.K.
La penalidad máxima por el delito imputado es de 10 años de cárcel. Una dictamen acusatorio es meramente una acusación y los demandados se presumen inocentes hasta que se prueben culpables.
El FBI llevó a cabo la investigación. El Fiscal Asistente de EE.UU., Chris Thomas, del Distrito de Hawaii está procesando el caso en asociación con el Abogado de Litigio Especial, Christopher J. Perras y Abogado Ligitante, Tara Allison de la División de Derechos Civiles del Departamento de Justicia.
Dominican National Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced on Tuesday, Jan. 12, 2021 in federal court in Boston for fentanyl trafficking.
Cristian Lara Diaz, 44, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 63 months in prison and four years of supervised release. In September 2020, Lara Diaz pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and five counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl.
Lara Diaz and his co-defendant, Andres Arias, conspired to distribute fentanyl and engaged in five separate sales of fentanyl to a cooperating witness in Boston between April 2017 and January 2018.
Arias is scheduled to plead guilty on Jan. 21, 2021.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
District Court Orders Washington State Company and its Owner to Stop Distributing Adulterated Juice ProductsRead the Press Release
A federal court permanently enjoined a Sunnyside, Washington, company from preparing, processing, and distributing adulterated juice and other food products, the Department of Justice announced today.
In a complaint filed on Nov. 6, 2020, at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Valley Processing Inc., along with the company’s owner and president, Mary Ann Bliesner, violated the Federal Food, Drug, and Cosmetic Act (FDCA) by distributing adulterated apple, pear, and grape juice products. The company formerly supplied millions of juice servings used in school lunch programs. The complaint alleged that the defendants processed juice under grossly insanitary conditions, failed to adhere to relevant food safety standards, and distributed to the public newer juice mixed with older, potentially contaminated juice.
“Americans must be confident that the food they and their families consume is safe,” said Acting Assistant Attorney General Jennifer B. Dickey of the Justice Department’s Civil Division. “We will continue to work with our partners at FDA to stop companies from taking shortcuts at the expense of safety.”
“The purity and security of harvested and processed foods are matters of paramount importance to our citizen consumers, particularly during unsettled times,” said U.S. Attorney William Hyslop for the Eastern District of Washington. “The Justice Department and our FDA partners work hard to ensure compliance with food processing safety and purity standards. We support these efforts which are essential to promoting confidence in Washington’s and our nation’s food sources.”
“Food processors who do not comply with FDA regulations can put consumers’ health and well-being in danger. With this consent decree, we’re taking action to protect Americans, including children in this case, from consuming foods that have been processed in violation of the law,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “The FDA is fully committed to taking appropriate measures against those who disregard food safety standards and distribute adulterated food to the public.”
According to the complaint filed in U.S. District Court for the Eastern District of Washington, FDA inspections revealed that the defendants’ juice products contained inorganic arsenic and patulin — toxins that can pose health risks to consumers. FDA found that the defendants did not analyze or investigate data from their raw fruit suppliers, as required by law, to determine the origin of these food hazards. The complaint also alleged that Valley Processing stored grape juice concentrate that was several years old outside in covered barrels. The complaint alleged that samples of the old juice concentrate were found to be contaminated with filth and mold, yet defendants combined the older juice with newer lots and distributed the mixture to consumers and schools. The complaint alleged that the defendants promised to stop using the old juice, but a subsequent 2019 FDA inspection showed the defendants continued to blend the older juice with newer juice.
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The order entered by the district court permanently enjoins the defendants from violating the FDCA and requires that they destroy any food, including any juice products, still in their possession. As part of the settlement, defendants represented that they are no longer engaged in processing, preparing, packing, or distributing any type of food. Before processing or distributing any food in the future, the defendants first must notify FDA in advance, comply with specific remedial measures set forth in the injunction, and permit FDA to inspect their facilities and procedures.
This matter was handled by Trial Attorney Kendrack D. Lewis of the Consumer Protection Branch in the Department of Justice’s Civil Division, with the assistance of Senior Counsel Tara Boland of the FDA’s Office of the Chief Counsel and Assistant U.S. Attorney Tim M. Durkin of the U.S. Attorney’s Office for the Eastern District of Washington.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Washington, visit its website at https://www.justice.gov/usao-edwa.
District Court Orders Washington State Company and its Owner to Stop Distributing Adulterated Juice ProductsRead the Press Release
WASHINGTON – A federal court permanently enjoined a Sunnyside, Washington, company from preparing, processing, and distributing adulterated juice and other food products, the Department of Justice announced today.
In a complaint filed on November 6, 2020 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Valley Processing Inc., along with the company’s owner and president, Mary Ann Bliesner, violated the Federal Food, Drug, and Cosmetic Act (FDCA) by distributing adulterated apple, pear, and grape juice products. The company formerly supplied millions of juice servings used in school lunch programs. The complaint alleged that the defendants processed juice under grossly insanitary conditions, failed to adhere to relevant food safety standards, and distributed to the public newer juice mixed with older, potentially contaminated juice.
“Americans must be confident that the food they and their families consume is safe,” said Acting Assistant Attorney General Jennifer B. Dickey of the Justice Department’s Civil Division. “We will continue to work with our partners at FDA to stop companies from taking shortcuts at the expense of safety.”
“The purity and security of harvested and processed foods are matters of paramount importance to our citizen consumers, particularly during unsettled times,” said U.S. Attorney William Hyslop for the Eastern District of Washington. “The DOJ and our FDA partners work hard to ensure compliance with food processing safety and purity standards. We support these efforts which are essential to promoting confidence in Washington’s and our nation’s food sources.”
“Food processors who do not comply with FDA regulations can put consumers’ health and well-being in danger. With this consent decree, we’re taking action to protect Americans, including children in this case, from consuming foods that have been processed in violation of the law,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “The FDA is fully committed to taking appropriate measures against those who disregard food safety standards and distribute adulterated food to the public.”
According to the complaint filed in U.S. District Court for the Eastern District of Washington, FDA inspections revealed that the defendants’ juice products contained inorganic arsenic and patulin — toxins that can pose health risks to consumers. FDA found that the defendants did not analyze or investigate data from their raw fruit suppliers, as required by law, to determine the origin of these food hazards. The complaint also alleged that Valley Processing stored grape juice concentrate that was several years old outside in covered barrels. The complaint alleged that samples of the old juice concentrate were found to be contaminated with filth and mold, yet defendants combined the older juice with newer lots and distributed the mixture to consumers and schools. The complaint alleged that the defendants promised to stop using the old juice, but a subsequent 2019 FDA inspection showed the defendants continued to blend the older juice with newer juice.
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The order entered by the district court permanently enjoins the defendants from violating the FDCA and requires that they destroy any food, including any juice products, still in their possession. As part of the settlement, defendants represented that they are no longer engaged in processing, preparing, packing, or distributing any type of food. Before processing or distributing any food in the future, the defendants first must notify FDA in advance, comply with specific remedial measures set forth in the injunction, and permit FDA to inspect their facilities and procedures.
This matter was handled by Trial Attorney Kendrack D. Lewis of the Consumer Protection Branch in the Department of Justice’s Civil Division, with the assistance of Senior Counsel Tara Boland of the FDA’s Office of the Chief Counsel and Assistant U.S. Attorney Tim M. Durkin of the U.S. Attorney’s Office for the Eastern District of Washington.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch . For more information about the U.S. Attorney’s Office for the Eastern District of Washington, visit its website at https://www.justice.gov/usao-edwa .
Danville Man Pleads Guilty to Child Pornography ChargeRead the Press Release
LEXINGTON, Ky.- A Danville, Ky., man, Lenoard Riley, 45, pleaded guilty on Friday, before Chief U.S. District Judge Danny Reeves, to transporting child pornography using the Internet.
According to Riley’s plea agreement, he admitted that on July 30, 2017, he was in possession of 23 images and two videos of child pornography on his smart phone. These images depicted children under 12 engaged in sexually explicit conduct. Riley further admitted that he knew the images he received, possessed, and transported through his computer involved minors engaged in sexually explicit conduct.
Riley was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven L. Igyarto, Resident Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Lt. Colonel Phillip Burnett, Acting Commissioner of the Kentucky State Police, announced the guilty plea.
The investigation was conducted by DHS-HIS and KSP-Electronic Crime Branch. The United States was represented by Assistant U.S. Attorney David Marye.
Riley is scheduled to be sentenced on Friday, April 23, 2021. He faces a minimum of five years and a maximum of 20 years in prison. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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 U.S. 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.
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Covington Woman Charged with Wire Fraud, Money Laundering, and False StatementsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that RITCHEL MOREHEAD, age 39, from Covington, Louisiana, was indicted for wire fraud, money laundering, and making false statements to a federal agent, all stemming from a fake investment scheme.
The government filed a nine-count indictment that charged MOREHEAD with seven counts of wire fraud, from December 2018 through February 2019. According to the indictment, MOREHEAD used a corporation, Chel Corporation, to defraud six victims by embezzling a total of $460,000 that was supposed to cover fees, costs, and down payments for multi-million dollar loans, when in fact MOREHEAD spent the funds on personal expenses, such as jewelry and a vehicle, and transferred cash to accounts overseas. MOREHEAD is charged with one count of money laundering, for transferring the proceeds of the scheme to bank accounts in the Philippines, and one count of lying to federal agents about whether she had sent or received any funds by wire transfer.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted of these charges, MOREHEAD faces up to twenty years in prison, followed by up to three years of supervised release, a fine of up to $250,000 or twice the gross gain to MOREHEAD or the gross loss to any victims and a special assessment fees of $100 per count.
U.S. Attorney Strasser praised the work of Homeland Security Investigations, the United States Secret Service, and the St. Tammany Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
* * *
Convicted Felon from Worcester Indicted for Crack Cocaine and Firearm OffensesRead the Press Release
BOSTON – A Worcester man was indicted yesterday by a federal grand jury on charges of drug and firearm possession.
Rodney Hall, 36, was indicted on possession with intent to distribute more than 280 grams of cocaine base and being a felon in possession of a firearm. Hall was charged by criminal complaint in December 2020.
According to charging documents, on Sept. 30, 2020, Hall was arrested after he sold approximately 14 grams of crack cocaine for $1,500 to an individual in Worcester. At the time of his arrest, Hall had approximately $2,300 in cash, two cell phones and a key to a Mercedes-Benz.
A search of Hall’s residence resulted in the seizure of approximately 650 grams of cocaine, a loaded 9 mm Beretta semi-automatic pistol, a homemade pistol, ammunition, a digital scale, plastic baggies and approximately $7,000 in cash. Hall is prohibited from possessing a firearm due to his criminal history, which includes previous convictions for possession of a large capacity weapon and trafficking cocaine
Due to Hall’s prior conviction for drug trafficking, if convicted of the new drug offense, he faces a minimum sentence of 15 years and up to life in prison, at least 10 years and up to life of supervised release and a fine of up to $15 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting 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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Compounding Pharmacy Mogul Sentenced for Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
WASHINGTON – A Mississippi businessman was sentenced today for his role in a multimillion-dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs.
Wade Ashley Walters, 54, of Hattiesburg, a co-owner of numerous compounding pharmacies and pharmaceutical distributors, was sentenced today on his guilty plea to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. U.S. District Judge Keith Starrett of the Southern District of Mississippi ordered Walters to serve a total of 18 years in prison and to pay $287,659,569 in restitution. Walters was remanded into custody following the sentencing hearing. Walters was further ordered to forfeit $56,565,963, representing the proceeds he personally derived from the fraud scheme.
“The fraud committed by Walters and others in this investigation wasted hundreds of millions of taxpayer dollars and deprived individuals of needed medical care,” said David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “Today’s significant sentence signifies that we will continue to stand with our agency partners to root out health care fraud schemes and see their perpetrators brought to justice.”
Between 2012 and 2016, Walters orchestrated a scheme to defraud TRICARE and other health care benefit programs by distributing compounded medications that were not medically necessary. As part of the scheme, Walters and his co-conspirators, among other things, adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy; solicited recruiters to procure prescriptions for high-margin compounded medications and paid those recruiters commissions based on the percentage of the reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; solicited (and at times paying kickbacks to) practitioners to authorize prescriptions for high-margin compounded medications; routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appear as if the pharmacies were collecting copayments.
“Today’s sentencing is another mile marker on the long road to justice for victims, our veterans, our military, and all American taxpayers, as the mastermind of the largest health care fraud scheme in Mississippi history has been held to answer for his crimes,” said Mike Hurst, U.S. Attorney for the Southern District of Mississippi. “I want to commend our prosecutors, Justice Department trial attorneys, and every member of this incredible team of federal, state, and local law enforcement agencies for discovering this scheme and bringing all of these criminals to justice. While there is more work to do, the public can rest assured that we will continue to hold evildoers to account and that justice will always be done in the Southern District of Mississippi.”
“This scheme to defraud TRICARE out of hundreds of millions of dollars not only diverted taxpayer money from essential services and medical care but victimized the brave men and women who selflessly serve or have served our country,” said Michelle Sutphin, Special Agent in Charge of the FBI’s Jackson Field Office. “The investigation into this specific scheme, which now spans across multiple states and FBI field offices, began in the FBI’s Jackson Field Office. I am incredibly proud of the relentless efforts made by our Special Agents, Intelligence Analysts and professional support staff, but also the assistance from our partner agencies which make cases like this successful. The FBI and our law enforcement partners are committed to seeking those that intend to steal from others for their own financial gain.”
“IRS Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners, said James E. Dorsey, Special Agent in Charge of IRS Criminal Investigation (CI), Atlanta Field Office. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentencing demonstrates our collective efforts to successfully enforce the law and ensure public trust.”
“The Defense Health Agency (DHA) works to set the standard in care for our military, families and veterans,” said Cyndy Bruce, Special Agent in Charge with the Defense Criminal Investigative Service (DCIS), Southeast Field Office. “With full knowledge, Mr. Walters aggressively exploited DHA for personal enrichment. I want thank the U.S. Department of Justice and our investigative team for their tireless work to bring these crimes to light. There is no victimless crime, these significant funds were stolen from each and every tax payer and I am pleased that today, this defendant is being held accountable for his actions.”
“The sentencing of Walters highlights continued cooperation among law enforcement agencies at the local, state, and federal levels to ensure public safety throughout Mississippi,” said Colonel Steven Maxwell, Director of the Mississippi Bureau of Narcotics (MBN). “Protecting the public from individuals like Walters is a priority for MBN and is a mainstay in accomplishing our agency’s mission.”
Walters and his numerous co-conspirators effectuated a scheme to defraud health care benefit programs, including the TRICARE program, in an amount exceeding $287 million. Walters further conspired with others to launder the proceeds of his fraud scheme by engaging in monetary transactions in amounts of over $10,000 in proceeds from the fraud scheme, including transactions relating to his participation in a sham intellectual property scheme.
The FBI’s Jackson Field Office investigated the case with assistance from the IRS-CI, DCIS, and MBN. Principal Assistant Deputy Chief Dustin M. Davis, Assistant Deputy Chief Katherine E. Payerle, and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section, Trial Attorneys Emily Cohen and Steven Brantley of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Compounding Pharmacy Mogul Sentenced for Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
A Mississippi businessman was sentenced today for his role in a multimillion-dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs.
Wade Ashley Walters, 54, of Hattiesburg, a co-owner of numerous compounding pharmacies and pharmaceutical distributors, was sentenced today on his guilty plea to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. U.S. District Judge Keith Starrett of the Southern District of Mississippi ordered Walters to serve a total of 18 years in prison and to pay $287,659,569 in restitution. Walters was remanded into custody following the sentencing hearing. Walters was further ordered to forfeit $56,565,963, representing the proceeds he personally derived from the fraud scheme.
“The fraud committed by Walters and others in this investigation wasted hundreds of millions of taxpayer dollars and deprived individuals of needed medical care,” said David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “Today’s significant sentence signifies that we will continue to stand with our agency partners to root out health care fraud schemes and see their perpetrators brought to justice.”Between 2012 and 2016, Walters orchestrated a scheme to defraud TRICARE and other health care benefit programs by distributing compounded medications that were not medically necessary. As part of the scheme, Walters and his co-conspirators, among other things, adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy; solicited recruiters to procure prescriptions for high-margin compounded medications and paid those recruiters commissions based on the percentage of the reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; solicited (and at times paying kickbacks to) practitioners to authorize prescriptions for high-margin compounded medications; routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appear as if the pharmacies were collecting copayments.
“Today’s sentencing is another mile marker on the long road to justice for victims, our veterans, our military, and all American taxpayers, as the mastermind of the largest healthcare fraud scheme in Mississippi history has been held to answer for his crimes,” said Mike Hurst, U.S. Attorney for the Southern District of Mississippi. “I want to commend our prosecutors, Justice Department trial attorneys, and every member of this incredible team of federal, state, and local law enforcement agencies for discovering this scheme and bringing all of these criminals to justice. While there is more work to do, the public can rest assured that we will continue to hold evildoers to account and that justice will always be done in the Southern District of Mississippi.”
“This scheme to defraud TRICARE out of hundreds of millions of dollars not only diverted taxpayer money from essential services and medical care but victimized the brave men and women who selflessly serve or have served our country,” said Michelle Sutphin, Special Agent in Charge of the FBI’s Jackson Field Office. “The investigation into this specific scheme, which now spans across multiple states and FBI field offices, began in the FBI’s Jackson Field Office. I am incredibly proud of the relentless efforts made by our Special Agents, Intelligence Analysts and professional support staff, but also the assistance from our partner agencies which make cases like this successful. The FBI and our law enforcement partners are committed to seeking those that intend to steal from others for their own financial gain.”
“IRS Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners, said James E. Dorsey, Special Agent in Charge of IRS Criminal Investigation (CI), Atlanta Field Office. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentencing demonstrates our collective efforts to successfully enforce the law and ensure public trust.”
“The Defense Health Agency (DHA) works to set the standard in care for our military, families and veterans,” said Cyndy Bruce, Special Agent in Charge with the Defense Criminal Investigative Service (DCIS), Southeast Field Office. “With full knowledge, Mr. Walters aggressively exploited DHA for personal enrichment. I want thank the U.S. Department of Justice and our investigative team for their tireless work to bring these crimes to light. There is no victimless crime, these significant funds were stolen from each and every tax payer and I am pleased that today, this defendant is being held accountable for his actions.”
“The sentencing of Walters highlights continued cooperation among law enforcement agencies at the local, state, and federal levels to ensure public safety throughout Mississippi,” said Colonel Steven Maxwell, Director of the Mississippi Bureau of Narcotics (MBN). “Protecting the public from individuals like Walters is a priority for MBN and is a mainstay in accomplishing our agency’s mission.”
Walters and his numerous co-conspirators effectuated a scheme to defraud health care benefit programs, including the TRICARE program, in an amount exceeding $287 million. Walters further conspired with others to launder the proceeds of his fraud scheme by engaging in monetary transactions in amounts of over $10,000 in proceeds from the fraud scheme, including transactions relating to his participation in a sham intellectual property scheme.
The FBI’s Jackson Field Office investigated the case with assistance from the IRS-CI, DCIS, and MBN. Principal Assistant Deputy Chief Dustin M. Davis, Assistant Deputy Chief Katherine E. Payerle, and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section, Trial Attorneys Emily Cohen and Steven Brantley of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Colorado Springs Company and Its Owners Agree to Pay over $400,000 to Resolve Allegations That It Improperly Obtained Small Business Research FundsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Albido Corporation, along with two individuals, have agreed to pay over $400,000 to settle allegations that the company improperly obtained three awards through the Small Business Innovation Research Program based on false misrepresentations of eligibility for the program.
The Small Business Innovations Research Program (SBIR) is a federal program intended to foster eligible small businesses through federally funded research and development awards. Awards are made by various government agencies, with the goal of providing federal funds for eligible small businesses to research and develop technology with potential commercial benefits. The government does not own the research it subsidizes through the SBIR program or share in the profits from commercial applications. However, in order to ensure that taxpayer dollars are properly spent, the Small Business Administration, and each agency issuing awards, publishes eligibility requirements for participation in the program.
Albido Corporation, a Colorado company based in Colorado Springs, received three SBIR awards between 2014 and 2017 from the National Aeronautics and Space Administration (NASA) and the Department of Energy to research and develop surface acoustic wave sensors.
According to the United States, Albido Corporation, and its two then-owners, Dr. Viorel Olariu and Dr. Alfred Gnadinger, made numerous false certifications and representations to NASA and the Department of Energy regarding the company’s eligibility for the program prior to and during the performance of the awards. The United States contends that Albido Corporation did not meet the eligibility requirements for these awards because the company violated rules involving who can be designated as the award recipient’s principal investigator.
Albido Corporation, Dr. Olariu, and Dr. Gnadinger have now agreed to pay over $400,000 collectively to settle the allegations.
“When federal agencies set rules to ensure taxpayer dollars are used for specific purposes, those rules must be taken seriously,” said U.S. Attorney Jason Dunn. “When we become aware that companies have improperly obtained federal-program funds based on misrepresentations, we will take action to enforce the rules and recoup the money.”
“These settlements underscore the important role that proactive fraud detection efforts play in ensuring the integrity of the SBIR Program. I commend the outstanding investigative efforts of the NASA and Department of Energy agents and the work of the U.S. Attorney’s Office for the District of Colorado in reaching these agreements,” said NASA Inspector General Paul K. Martin.
“The Department of Energy Office of Inspector General will continue to aggressively investigate those who attempt to defraud Department programs,” said Teri L. Donaldson, Department of Energy Inspector General. “I would like to thank our investigators as well as the NASA OIG and the U.S. Attorney’s Office for the District of Colorado for their hard work in reaching this settlement.”
The claims against Albido Corporation and its owners are allegations, and in agreeing to settle this matter, they did not admit to any liability.
The United States Attorney’s Office thanks NASA’s Office of Inspector General and the Department of Energy’s Office of Inspector General for their diligent work on this investigation. The United States was represented in this matter by Assistant U.S. Attorney David Moskowitz.
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Clinton and Fitchburg Men Arrested on Mail Fraud and Employment Tax ChargesRead the Press Release
BOSTON – A Clinton man and Fitchburg man were arrested yesterday and charged in connection with their involvement in an employment tax and mail fraud scheme.
Juliano Fernandes, 39, of Clinton, was charged with 11 counts of failure to pay over employment taxes and two counts of mail fraud. Anderson Dos Santos, 36, of Fitchburg, was charged with one count of mail fraud.
According to the charging documents, Fernandes exercised management and control over Force Corporation and AB Construction, both Massachusetts-based construction companies. Between 2015 and 2017, Fernandes failed to account for and pay over employment taxes for Force Corporation and AB Construction to the IRS. In addition, from approximately April 2013 through January 2017, Fernandes allegedly engaged in a scheme to defraud worker’s compensation insurance carriers for Force by misrepresenting the number of employees and amount of wages paid to Force employees. Similarly, from December 2013 to April 2016, Fernandes and Dos Santos engaged in a scheme to defraud worker’s compensation insurance carriers for AB Construction by misrepresenting the number of employees and amount of wages paid to AB Construction employees.
The charge of mail fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of failure to pay over employment taxes provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joleen Simpson, Acting Special Agent in Charge of Internal Revenue Service’s Criminal Investigation; Michael Mikulk, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cincinnati Man Sentenced to 144 Months for Cocaine TraffickingRead the Press Release
COVINGTON, Ky. - A Cincinnati man, Gilbert Cole, 45, was sentenced on Friday, by U.S. District Judge David Bunning, to 144 months in federal prison, for cocaine trafficking.
According to his plea agreement, from September to December 2019, law enforcement used an informant to conduct eight controlled buys from Cole, in Covington. Cole had two prior convictions for first degree trafficking of cocaine, in Kenton County Circuit Court, in December 2002 and February 2011.
Cole pleaded guilty to the federal charge in October 2020.
Under federal law, Cole must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Robert Brown, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Chief Robert Nader, Covington Police Department, announced the sentencing.
The investigation was conducted by FBI and Covington Police Department. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.
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