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Thursday 12 November 2020
Remarks by U.S. Attorney William M. McSwain at the Chester County Bar Association's Annual Veterans Day Ceremony at the Historic Chester County CourthouseRead the Press Release
PHILADELPHIA, PA – On Wednesday, November 11, 2020, U.S. Attorney McSwain delivered the Veterans’ Address at the Chester County Bar Association’s Annual Veterans Day Ceremony. U.S. Attorney McSwain, a Chester County native and a member of the Chester County Bar Association, served in the U.S. Marine Corps infantry from 1993 to 1997. He was introduced by his friend, Brian Nagle, who is a former President of the Chester County Bar Foundation.
Remarks as Prepared for Delivery
Good morning, and thank you, Brian, for that kind introduction. I also want to thank Matt Holliday, Executive Director of the Chester County Bar Association, for inviting me to speak here today. I am delighted to participate in this annual ceremony that honors America’s veterans.
Veterans’ Day is an important marker – it reminds every citizen in this great country of the sacrifice that the men and women of the Armed Forces have made to preserve and protect the American dream. It is our opportunity to honor and thank all Americans who have served our country in uniform. That includes those living and dead, those who served in war and peace, those who serve today and those who served yesterday. In particular, I want to recognize and thank the veterans with us this morning: with this ceremony, we honor your sacrifice, courage, and bravery. We owe our way of life to you. Thank you for your service.
We also must thank you for the example you set for every American citizen. That example is your unity of purpose. When you signed up to serve in the military, you committed yourself to live by the military ethos of self-sacrifice in the name of a greater good. You knew when you committed that you would likely serve under multiple presidents and military leaders, not necessarily knowing who they would be. You did not know where or with whom you would serve. Many of you did not know what forces you would be fighting or the identity of the enemy. Still, none of that mattered: you signed up to serve because you love your country and everything that America stands for.
And that is because no matter who is in charge, the ideals of patriotism, freedom, democracy, and service remain the same. Even with all of the unknowns I just mentioned, the reason you decided to serve is the constant in the equation.
That unity of purpose is what binds the men and women who serve; it is also what unites every American in our expression of gratitude for your service. Your love of country is the example you set for every American. We owe you a tremendous debt of gratitude for your service and for your living example of patriotism.
The timing of Veterans’ Day has historical significance, but it is also culturally significant. We celebrate Veterans’ Day on November 11 because the holiday has its roots in Armistice Day – the official end of World War I. On the 11th day, at the 11th hour, of the 11th month, a bugle call signified the truce among all nations and a recommitment to world peace. But the world did not remain a peaceful place for very long. After World War II and the Korean War, Armistice Day was renamed Veterans’ Day.
I think we can all agree that this has been a tough year. From the global pandemic to the divisions in our country that led to a hard-fought election by all involved, nothing has come easily this year. Sometimes it may seem as if there’s nothing we can all agree upon. But that’s not true. We all agree that our veterans are heroes. Veterans’ Day brings us together as a nation to express our profound gratitude for what our veterans have done and for what our military stands for.
Our military is one of the greatest unifying forces for good in our country today. The outpouring of support for our veterans on this day reminds us of what is important: love of country and love of freedom, which you have bravely protected at every turn.
God Bless you all. And God Bless the United States of America. Thank you.
Randolph Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A federal grand jury in Boston indicted a Randolph man today on charges of child pornography.
Spencer Hughes, 38, was indicted on one count of receipt of child pornography and one count of possession of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
Hughes was arrested and charged by criminal complaint on Oct. 13, 2020, following the execution of a search warrant at his residence. He has been released to home detention subject to electronic monitoring and prohibited from accessing the internet, among other pre-trial conditions.
According to charging documents, during the execution of a search warrant, an external hard drive on Hughes’ kitchen table was found to contain a folder labeled with a female’s name. The folder contained numerous pornographic images and videos of a female child appearing to be approximately 10 or 11 years old.
A forensic examination of Hughes’ phone revealed that defendant was using the Kik Messenger application to view dozens of images and videos of child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, five years to life of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, five years to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Fred M. Wyshak, III, of Lelling’s Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Pittsburgh Man Indicted on Child Sexual Exploitation and Sextortion ChargesRead the Press Release
PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on child sexual exploitation charges and for making threatening interstate communications with the intent to extort, United States Attorney Scott W. Brady announced today.
The five-count Indictment named Markell Smith, age 24, as the sole defendant.
According to the Indictment, on May 31, 2018, Smith transmitted a communication containing a threat to injure the person, property, and reputation of Minor 1, a minor female resident of New Jersey, and her family. The Indictment further alleges that on that day, Smith attempted to and did coerce and induce Minor 1 to engage in sexually explicit conduct for the purpose of producing a visual image and received and attempted to receive a visual depiction of Minor 1 engaging in sexually explicit conduct. The Indictment also alleges that on November 8, 2019, Smith possessed other visual depictions, namely videos and images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Red Bank (New Jersey) Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio and West Virginia residents indicted on drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Six West Virginia residents and an Ohio man are facing drug and firearms charges after a grand jury in Clarksburg indicted them in September, U.S. Attorney Bill Powell announced.
David Day Deberry, 34, of Terra Alta, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Distribute Cocaine,” two counts of “Unlawful Possession of Firearm as Felon,” and one count of “Distribution of Methamphetamine.”
Brandy Hanshaw, also known as “Brandy Deberry,” 37, of Lumberport, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Unlawful Possession of Firearm as Drug User,” and two counts of “Distribution of Methamphetamine.”
John Palmer, 57, of Lore City, Ohio, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of Firearm as Felon.”
Jeremy Moser, 40, of Shinnston, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” four counts of “Distribution of Methamphetamine,” and one count of “Unlawful Possession of Firearm as Drug User.”
Mark Yatulchik, also known as “Utah,” 50, of Shinnston, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Maintaining Drug-involved Premises,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of Firearm as Felon.”
Kaylie Marie Jones, 25, of Wallace, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine” and three counts of “Distribution of Methamphetamine.”
Amber Ramos, also known as “Amber Finch,” 32, of Hepzibah, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine” and one count of “Distribution of Methamphetamine.”
The seven are accused of working together to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Norwich Man Involved in Southeastern Connecticut Drug Ring Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EARLENE DUDLEY, JR, 39, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant to 36 months of imprisonment, followed by three years of supervised release, for his role in a southeastern Connecticut drug trafficking ring.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation, which included court-authorized wiretaps and controlled purchases and seizures of narcotics and firearms, revealed that Ramel General worked closely with an identified leader of a drug trafficking network, distributing cocaine on behalf of the organization and assisting in maintaining an apartment in New London that served as the organization’s primary narcotics distribution location. Dudley regularly purchased distribution quantities of cocaine from General and sold the drug in smaller quantities to his own customers.
On February 21, 2019, a search of the New London apartment maintained by General and others revealed more than 1.5 kilograms of cocaine, more than 350 grams of heroin, and 10 firearms.
On March 5, 2019, a grand jury in Hartford returned an indictment charging Dudley, General and 22 other individuals with various offenses. Dudley was arrested on March 7, 2019.
On September 30, 2019, Dudley pleaded guilty to one count of conspiracy to distribute and possession with the intent to distribute cocaine.
General pleaded guilty to a related charge and, on August 25, 2020, was sentenced to 120 months of imprisonment.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Nine charged in scheme to defraud MedicaidRead the Press Release
First Assistant U.S. Attorney Bridget Brennan announced today that a federal grand jury sitting in Cleveland has returned a 28-count indictment charging nine individuals for their roles in a scheme to defraud Medicaid. These nine individuals either owned, operated or worked for Eye For Change Youth & Family Services, Inc. (Eye For Change), a non-profit corporation in Cleveland.
First Assistant U.S. Attorney Bridget Brennan, FBI Special Agent in Charge Eric B. Smith, Office of the Inspector General, U.S. Department of Health and Human Services Special Agent in Charge Lamont Pugh III and Ohio Attorney General Dave Yost made the announcement.
“These defendants are accused of defrauding a tax-payer funded health care benefit program that was created to assist some of the most vulnerable among us,” said First Assistant U.S. Attorney Bridget Brennan. “Their alleged conduct, including the payment of kickbacks, was designed simply to enrich themselves. We are grateful for the hard work of the agencies involved who, like us, are dedicated to bringing allegations of fraud and illegal kickbacks before the court.”
"These individuals engaged in a scheme to defraud tax-payers by submitting fraudulent billing to a federally funded healthcare program, which is supported by hard-working citizens,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and our partners will continue to root out such fraud and hold those engaged in illegal financial dealings responsible in a court of law.”
“The billing of medical services that are not rendered, the payment of kickbacks, and the falsification of documents with respect to medical records are illegal acts commonly used by those who commit healthcare fraud,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG routinely conducts data analysis in an effort to identify aberrant and potentially fraudulent billing trends and will take action to hold those who seek to defraud federally funded health care programs accountable.”
"There are actually real people out there who are suffering and need help," Ohio Attorney General Dave Yost said. "You don't have to make up imaginary patients. A jury of their peers will undoubtedly know some of them. I'm grateful for the state-federal partnership that is bringing these fakes to justice."
Named in the indictment are:
- Alfonzo D. Bailey, age 38, of Cleveland, Ohio. Bailey was the incorporator and 100% owner of Eye For Change Youth & Family Services.
- David Brown, age 39, of Maple Heights, Ohio. Brown was a marketer and Clients Rights Officer at Eye For Change.
- Valerie White, age 51, of Columbus, Ohio. White was employed as a Qualified Mental Health Specialist (QMHS) and a counselor/therapist who provided counseling services to Eye For Change Medicaid beneficiary clients.
- Sandra Wilson, age 52, of Cleveland, Ohio. Wilson was employed as an assessor and staffed the crisis hotline at Eye For Change and provided counseling services Medicaid beneficiary clients.
- Cheria Oliver, age 31, of Canal Winchester, Ohio. Oliver was employed as a Qualified Mental Health Specialist (QMHS) at Eye For Change and provided counseling services to Medicaid beneficiary clients.
- Charchee Tucker, age 43, of Warrensville Heights, Ohio. Tucker was employed as QMHS, QMHS Supervisor, Lead Case Manager, and Director of Marketing and Compliance. Tucker was to provide counseling services to Eye for Change Medicaid beneficiary clients.
- Allen Steele, age 38, of Parma, Ohio. Steele was employed as a QMHS at Eye For Change and was able to provide counseling services to Medicaid beneficiary clients.
- Kamelah Ganaway, age 43, of Macedonia, Ohio. Ganaway was employed as a QMHS at Eye For Change and was to provide counseling services to Medicaid beneficiary clients.
- Tremayne Kellom, age 41, of Cleveland, Ohio.
According to the indictment, from February 2017 through September 2020, the defendants are accused of submitting, or allowing to be submitted, billings to the Medicaid program for services that were never performed and of falsifying records.
The indictment states that Bailey would pay White and Wilson, a Licensed Independent Social Worker (LISW) in order to use Wilson’s LISW provider number and credentials to submit billings and documents regarding mental health screenings that were never performed.
Bailey, Brown, White and Wilson would also submit billings to the Medicaid program for counseling services without an appropriate treatment plan in place for clients, as required by law.
In addition, Bailey, Brown, White and Wilson are accused of allegedly paying kickbacks in the form of cash, gift cards, and rent/bill payments to Medicaid beneficiaries in order to obtain these beneficiaries as clients and to bill Medicaid for services never rendered.
The indictment further states that Bailey, Brown, White and Wilson would direct employees to misdiagnose their Medicaid beneficiaries in order to receive authorization from the Ohio Department of Medicaid to provide services and bill at higher rates.
Bailey, Brown, Oliver, Tucker, Steele, Ganaway and Kellom are also accused of allegedly directing and allowing employees to insert false progress notes into Medicaid beneficiary electronic records in order to create the fictitious documents needed to submit their claims.
As a result of these offenses, the defendants shall forfeit approximately $2.3 million seized during the execution of a federal seizure warrant and all properties associated with Eye For Change in Cleveland, Cleveland Heights and Columbus.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland Division of the FBI, the Department of Health and Human Services -- Office of the Inspector General and the Ohio Attorney General’s Healthcare Fraud Section. This case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Jonathan L. Metzler.
Nashville Man Charged with CyberstalkingRead the Press Release
NASHVILLE, Tenn. – November 12, 2020 –A Nashville man was arrested today and charged with four counts of cyberstalking, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Barry Zarculia, 53, was arrested this morning by FBI agents, pursuant to a criminal complaint issued Tuesday and unsealed today. According to the complaint, the FBI has been investigating Zarculia since June and determined that he used a cellular phone and an Instagram account to send death threats, threaten serious bodily harm, and/or harass, intimidate and stalk multiple victims.
The complaint alleges that Zarculia was the user of the Instagram account @songs_in_the_key_of_z and posted hateful, racist, anti-black messages on their public message board, such as messages including the phrasing “black lives don’t matter.” In addition, an individual referenced having observed posts which applauded the sniper who conducted the 2017 Las Vegas Massacre and which alluded to the fact that the user wished the same attack would occur in Nashville, Tennessee. After posting these and other comments, Zarculia received negative feedback from other social media users. Zarculia then posted a photograph of one individual’s house, along with the address of the individual’s public page, and said in part, “Anyone that wants a piece of me, come on over,……..Off Nolensville Pike. I sleep in the front bedroom.” This alarmed the individual as this front bedroom was occupied by his child. Zarculia also sent other messages to this individual and called him on the phone and threatened to put a gun in his mouth.
The continuing investigation led agents to another victim who began receiving unsolicited messages from Zarculia in September 2019, via Instagram. Although this woman had never met Zarculia, his messages referenced her recent locations around Nashville, including a local coffee shop and a local park. Zarculia continued to message this woman for the next several months, which she described as “creepy” and “overly sexual” in nature, often sending her photos of his penis. On one occasion, Zarculia made reference to the woman’s minor son and specifically mentioned the elementary school which he attended, though the woman had never mentioned her son to Zarculia. She eventually stopped responding to Zarculia’s messages and in early 2020, Zarculia approached her in a local grocery store. She did not engage in conversation with him and went about her business. Later, Zarculia sent her messages that were angry in nature. These messages continued to escalate to violent and threatening rants, some sent in audio format and also directed at a friend of the woman who had become involved out of fear for the woman’s safety.
Another victim told FBI agents that in the summer of 2018, she was contacted by Zarculia, via Instagram. Although they had never met, the woman became friends on social media with Zarculia and talked online until early 2019, when she decided not to pursue the relationship. Zarculia later messaged the woman and told her he had found her apartment, though they had never met in person. Zarculia escalated his activity to include lewd comments and photographs and posted her home address, phone number and photograph on Craigslist and other public websites to be used for escort/prostitution advertising. This woman also received information that Zarculia had been to her home and wiped a caustic chemical compound on the handle of the front door.
The complaint alleges yet another woman who began receiving unsolicited Instagram messages from Zarculia in July 2020. These messages also escalated to harassing and threatening text and audio messages. On many occasions, Zarculia made reference to her location, making it apparent that he had followed her and knew where she had been and where she lived. In October, out of fear for her safety, the woman obtained a temporary order of protection against Zarculia. The following day, while hiking at a local park, the woman saw Zarculia from a distance. She then hid in a large bush and sought the assistance of a park ranger to escort her to her vehicle, at which time Zarculia began yelling at her.
Each of these victims were forced to take additional security measures, including installing or updating their home alarm systems, or even moving from their home, in order to mitigate the threat posed by Zarculia.
Zarculia will make an initial appearance before a U.S. Magistrate Judge later this afternoon. If convicted, he faces up to five years in prison and a $250,000 fine on each count.
Anyone who believes they have been the target of Zarculia’s cyberstalking or threatening behavior is encouraged to contact the local FBI office at 615-232-7500.
Assistant U.S. Attorney Kathryn Risinger is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Missouri Woman Fourth Person Sentenced for Nationwide Fraud SchemeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Heather Bishop, 31, Lee’s Summit, Missouri was sentenced today by U.S. District Judge William M. Conley to 30 months in federal prison for conspiring with Crystal Austin, Shelly Scott, Jason Edge, and others to commit wire fraud throughout the country. Bishop was ordered to pay restitution to Walmart, Inc., in an amount to be determined after a hearing on January 11, 2021.
Between February 2017 and March 2018, Bishop, Austin, Scott, Edge and others conspired to defraud Walmart, Inc. through use of stolen personal checks, identity fraud, and methods to bypass electronic check authorization measures, resulting in a loss of over $860,000 to Walmart. The group used stolen identification cards of real people to perpetuate this fraud in 18 states, using more than 14 different stolen checking accounts. Bishop and other co-conspirators would present a stolen check and false identification at the time of payment, and when the check was declined, the person presenting the check would pretend to call the check authorization company, when in fact, they would call a co-conspirator. The co-conspirator would tell the clerk to accept the check, and the transaction would be complete.
Scott and Edge were arrested by Monona Police on February 25, 2018, after Walmart employees became suspicious of their behavior. They were sentenced to 48 months in federal prison in November 2018 after pleading guilty for their roles in this fraud scheme.
Heather Bishop and conspirators Crystal Austin and Jennifer Austin were charged in this conspiracy and arrested in December 2019. Crystal Austin pleaded guilty to the conspiracy and was sentenced to 65 months in prison in September 2020. Jennifer Austin has also agreed to plead guilty to the conspiracy and is scheduled for a guilty plea and sentencing hearing on December 15, 2020.
In sentencing Bishop, Judge Conley noted that this conspiracy involved not only Walmart as a victim, but also those whose identities and bank accounts were used in the fraud. He noted that in Bishop’s case, her involvement seemed to be based on opportunity, family dysfunction, and anti-social personality and decision making. In choosing a sentence of 30 months, Judge Conley also recognized that Bishop was less culpable than the co-conspirators previously sentenced in this case.
The charges against Heather Bishop and her co-conspirators were the result of an investigation conducted by the Federal Bureau of Investigation, Monona and Sun Prairie Police Departments, and police departments throughout the country, with the assistance of Walmart fraud investigators. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Michigan and New Jersey Men Admit Participating in $10 Million Multi-State Bank Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Michigan man today admitted his role in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Virginia, and Michigan, over the course of two years, U.S. Attorney Craig Carpenito announced today.
Rana Sharif, 36, of Dearborn Heights, Michigan, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to commit bank fraud.
On Nov. 10, 2020, co-defendant Ali Abbas, 38, of Middlesex County, New Jersey, pleaded guilty by videoconference before Judge Wolfson to a separate information that also charged him with conspiracy to commit bank fraud.
Sharif, Abbas and five co-defendants – Awaise Dar, Shamsher Farooq, Naveed Arif, Habib Majid and Erm Ayaz – were charged by complaint in July 2020 in connection with the scheme.
According to documents filed in this case and statements made in court:
From 2018 through April 2020, Sharif, Abbas, and others conspired to defraud several major banks and electronic merchant processors. They established bank accounts associated with sham entities that had no legitimate purpose, and issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators would also conduct fraudulent credit card and debit card transactions between shell companies to credit payee accounts and overdraw payor accounts. The defendants also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred.
Members of the criminal organization withdrew the “existing” funds (through ATMs or bank tellers) that banks and merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.
During its investigation, law enforcement identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. Sharif, Ali, and other conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact caused a loss of approximately $3.5 million.
The conspiracy charges to which Sharif and Abbas pleaded guilty carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater. Sharif’s sentencing is scheduled for March 15, 2021. Abbas’ sentencing is scheduled for March 18, 2021.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark: Social Security Administration, under the direction of John F. Grasso; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Meth-Smuggling Attorney Turns Short Jail Visit into a Long StayRead the Press Release
MARSHALL, Texas – A 50-year-old Cass County, Texas man has been sentenced for a federal drug violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Bryan Lee Simmons pleaded guilty on Sep. 14, 2020, to conspiring to distribute methamphetamine and was sentenced to 48 months in federal prison today by U.S. District Judge Rodney Gilstrap. Simmons also agreed not to engage in the practice of law for at least three years thereafter.
According to information presented in court, beginning in July 2019 and continuing through August 2019, Simmons agreed with others to distribute methamphetamine in the Cass County Jail. Specifically, on August 29, 2019, he entered the Cass County Jail under the guise of meeting with a client. When Simmons entered the jail, he had methamphetamine hidden on his body, which he intended to distribute to an inmate. Simmons was also armed with a Colt MK IV .45 caliber pistol when he drove to the jail with the methamphetamine. Simmons later admitted in open court that he had smuggled drugs into the Cass County Jail on at least two prior occasions.
This case was investigated by the Texas Department of Public Safety, Texas Rangers Division, with assistance from the Cass County, Texas, District Attorney’s Office and the Cass County, Texas, Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Man Sentenced for Threatening to Burn Down African American ChurchRead the Press Release
NORFOLK, Va. – A North Carolina man was sentenced today to two years in prison for making a threat to burn down an African American church in Virginia Beach.
According to court documents, John Malcolm Bareswill, 63, called a Virginia Beach church with a predominantly African American congregation, made racially derogatory remarks, and threatened to set the church on fire. The threatening call was placed on June 7, several days after one of the church’s leaders took part in a public prayer vigil and peaceful demonstration for George Floyd.
“John Malcolm Bareswill reacted to a prayer vigil and rally held in memory of George Floyd by threatening to burn down an African American church,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Answering the exercise of constitutional freedoms with threats of violence—especially threats that tap into a long and shameful history of racially-motivated violence against houses of worship—requires swift and certain justice. Bareswill’s threat terrified the adult Sunday school teachers who heard it and affected the entire church community. While this sentence cannot undo that harm, it sends an important message: Our community will not tolerate attempts to silence free speech or interfere with the free exercise of religion.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Karl Schumann, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Paul Neudigate, Chief of the Virginia Beach Police Department; and David Hutcheson, Chief of the Virginia Beach Fire Department, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Andrew Bosse prosecuted the case. Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division provided significant assistance on 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. 2:20-cr-61.
Man Sentenced for Possessing Heroin and Fentanyl in ChesapeakeRead the Press Release
NEWPORT NEWS, Va. – A New York City man was sentenced today to six and a half years in prison for possessing with intent to distribute a kilogram of heroin and a kilogram of fentanyl.
According to court documents, Jabulani Maitland, 36, travelled from New York in February 2020 and checked into a hotel in Chesapeake. Agents from Homeland Security Investigations received information that Maitland was in possession of a large quantity of drugs. Using this information, Maitland was approached by agents and questioned about drugs. Ultimately, Maitland agreed to allow agents to search his hotel room, and agents located a kilogram of heroin and a kilogram of fentanyl which were intended for further distribution in the Tidewater region.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-24.
Major COVID-19 fraud investigation results in charges in Augusta areaRead the Press Release
<p><b>AUGUSTA, GA:</b> Six individuals have been indicted on felony charges and nearly $400,000 seized in the Southern District of Georgia relating to the alleged submission of fraudulent loan applications for pandemic disaster relief funds.</p>
<p>In response to the devastating negative economic impacts of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed into law in March 2020. The CARES Act authorized the Small Business Administration (SBA) to provide and/or guarantee loans specifically designed to keep small businesses afloat during the unprecedented financial challenges brought on by the pandemic. Charges in the Augusta area announced today allege that individuals exploited these programs for their own financial gain and sought relief payments through a series of false and fraudulent representations regarding their businesses’ existence, gross revenue, and number of employees in order to receive Economic Injury Disaster Loans (EIDL) and/or Paycheck Protection Program (PPP) loans, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.</p>
<p>According to the indictments, these individuals made false representations to the SBA and/or financial institutions about small businesses each purportedly owned in the Augusta area. The indictments allege that each of the defendants fraudulently obtained relief funds earmarked for small businesses that were suffering the negative economic impacts of the pandemic:</p>
<ul>
<li><b>Whitney Adwan Mack</b>, 33, of Louisville, Ga., the alleged owner of four different businesses, is charged with wire fraud and misuse of a social security number for making false representations to the SBA regarding her businesses’ gross revenue, number of employees, and using a Social Security number that did not belong to her.</li>
<li><b>Jada S. Nelson</b>, 20, and <b>Sonya Barnes,</b> 41, both of Augusta, are charged with wire fraud and aiding and abetting for making false representations to the SBA regarding their businesses’ existence, gross revenue, and number of employees.</li>
<li><b>Rose Mary Coleman</b>, 57, of Augusta, is charged with wire fraud for making false representations to the SBA regarding her business’s gross revenue and number of employees.</li>
<li><b>Orell Plummer</b>, 41, of Augusta, is charged with wire fraud for making false representations to the SBA regarding the gross revenue and number of employees in his business.</li>
<li><b>Darryl T. Williams, Sr.</b>, 52, of Augusta, is charged with wire fraud for making false representations to the SBA and to a financial lender regarding the gross revenue and number of employees of his businesses.</li>
</ul><p>In addition, in a separate matter, the United States has filed a forfeiture complaint to recover $383,456.21 in funds that have been seized and are alleged to be the fruits of fraudulent SBA loan submissions.</p>
<p>“In the midst of the pandemic, millions of Americans were suffering devastating economic situations,” said United States Attorney Bobby L. Christine. “It’s unconscionable that some would seek to profit off of that devastation by creating fake businesses and fabricating financial information. This office will continue to devote significant resources to stopping those pandemic-profiteering fraudsters.”</p>
<p> </p>
<p>“This nation’s citizens and businesses are counting on the U.S. Secret Service and its federal law enforcement, as well as the Georgia Bureau of Investigation, to safeguard it and maintain the public trust,” said Resident Agent in Charge Glen M. Kessler of the Secret Service Savannah Office. “These criminal cases brought today should serve as a strong deterrent to those considering exploiting the COVID-19 pandemic to enrich themselves through fraud. These defendants took money that was earmarked for legitimate businesses that could have greatly benefitted from the funds supplied by the U.S. government but instead were used to enrich themselves. Tackling the threat of cyber-enabled COVID-19 scams requires an immediate response to safeguard our nation during these unprecedented times.”</p>
<p>“The pandemic has been a burden on so many Georgians,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “Defrauding the government of funds earmarked for hardworking business owners is inexcusable. The GBI is committed to working with our partners to investigate these crimes.”</p>
<p>Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.</p>
<p>These cases are being investigated by the U.S. Secret Service, the Treasury Inspector General for Tax Administration, the Social Security Administration, the Small Business Administration Office of Inspector General, and the Georgia Bureau of Investigation. These cases are being prosecuted by Assistant U.S. Attorneys Patrick J. Schwedler, J. Thomas Clarkson, Jonathan A. Porter, and Jennifer A. Stanley, and the seizure and forfeiture action was brought by Assistant U.S. Attorney and Asset Recovery Unit Chief Xavier A. Cunningham.</p>
Madison Man Sentenced to 3 Years for Drug & Gun OffensesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Demarious Gray, 29, Madison, Wisconsin pleaded guilty and was sentenced November 9, 2020, by Chief U.S. District Judge James D. Peterson to three years in prison for possessing heroin and cocaine with the intent to distribute, and possessing a firearm in furtherance of that drug trafficking crime.
In 2013, Gray was convicted in state court of an armed robbery in Wisconsin where he stole approximately $5,000 from a young woman at gunpoint and then threatened to kill her if she called the police. He was given an eight-year prison sentence that was stayed for a term of probation. In 2015, his probation was revoked after Gray was found with a gun and convicted of being a felon in possession of a firearm.
On October 9, 2017, Gray came into contact with law enforcement while driving and was found to be in possession of crack cocaine, heroin, and a .40 caliber Glock handgun. He subsequently was indicted by a federal grand jury. During the plea hearing on Monday, Gray admitted that he intended to sell the drugs and that the handgun was used to assist in his drug trafficking.
At sentencing, Judge Peterson noted that this was a very serious offense, that the heroin was laced with Fentanyl, and that Gray was armed with handgun and had a lot of ammunition in the car. The judge commented that videos found on Gray’s cell phone appeared to be him showing off with the gun. Judge Peterson said that after Gray’s brother was shot and killed in 2017, Gray should have known better but that his response was to become a part of the problem. In arriving at a three-year consecutive sentence in the federal case, the court considered that Gray had already served three years in prison on a state revocation.
The charges against Gray were the result of an investigation conducted by Wisconsin Department of Justice Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Macomb Township Resident Charged in COVID-19 Bank Fraud SchemeRead the Press Release
A Macomb Township resident was charged in a Criminal Information for his alleged role in a scheme to fraudulently obtain approximately $931,000 from the Paycheck Protection Program, United States Attorney Matthew Schneider announced today.
Joining Schneider in the announcement were Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation Office of Inspector General, Special Agent in Charge Douglas Zlotto of the United States Secret Service, and Special Agent in Charge Sharon Johnson of the United States Small Business Administration Office of Inspector General.
The Information charges Michael Bischoff, 60, of Macomb Township, Michigan, with one count of Bank Fraud.
According to the Information, Bischoff owned a number of pizza restaurants in Macomb County, Michigan, which operated through various corporate entities Bischoff controlled (the Bischoff entities). The Information alleges that Bischoff applied for at least nine loans on behalf of the Bischoff entities under the Paycheck Protection Program (PPP). The PPP is a program overseen by the Small Business Administration designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about, among other things, their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period of time after receiving the proceeds.
The Information alleges that at least nine of Bischoff’s PPP applications contained false and fraudulent representations to the participating lenders. All of the applications included false representations about the amount of payroll and number of employees working at the Bischoff entities. A number of the applications also included false documentation, purportedly from the IRS, to support the misrepresentations about payroll expenses at those entities. In other applications, Bischoff is alleged to have fraudulently used another person’s personal identifying information to secure approval for the loans.
In all, the Information alleges that, in his false and fraudulent loan applications, Bischoff sought approximately $931,772 in proceeds from the PPP. Bischoff is alleged to have actually received approximately $593,590 from PPP lenders as a result of his fraudulent loan applications.
An Information is only a charge and is not evidence of guilt.
The case is being prosecuted by Assistant United States Attorney John K. Neal of the Eastern District of Michigan, Trial Attorney Philip B. Trout of the U.S. Department of Justice’s Criminal Division, Fraud Section, and Trial Attorney Chad M. Davis of the U.S. Department of Justice’s Criminal Division, Money Laundering and Asset Recovery Section. The investigation is being conducted jointly by the Federal Deposit Insurance Corporation Office of Inspector General, the United States Secret Service and the Small Business Administration Office of Inspector General.
Lewis County Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Randell Adsit, age 49, of Martinsburg, New York, was arrested yesterday and charged with distributing child pornography, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
According to the complaint, Adsit, who was convicted in 2008 of possessing a sexual performance by a child less than 16 years old, used multiple usernames on a social media application to trade child pornography with other people over the internet. Due to his prior conviction, Adsit is required to register as a sex offender, and would also be required to do so if convicted of the charge alleged in the complaint.
The charge filed against Adsit carries a mandatory minimum sentence of 15 years and a maximum of 40 years in prison, a post-release term of supervision of between five years and life, and a fine of up to $250,000. 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.
Adsit made his initial appearance yesterday before Magistrate Judge Thérèse Wiley Dancks and was detained pending further proceedings.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a 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.
Lassen County Man Charged with Possession with Intent to Distribute Methamphetamine and Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Joshua Paul Doyle, 38, of Susanville, charging him with two counts of possession with intent to distribute methamphetamine and two counts of being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Doyle was arrested twice in the span of six months during traffic stops, each time found to be in possession of methamphetamine for distribution and firearms. Doyle has been convicted previously of crimes punishable by more than a year in prison and is therefore prohibited under federal law from possessing firearms.
On May 12, when a law enforcement officer executed a traffic stop in Susanville on a vehicle for having no front license plate, the officer identified the driver as Doyle. During a pat-down search, deputies found methamphetamine in his pockets. In the search of Doyle’s vehicle that followed, deputies found a loaded handgun in the center console, as well as another loaded handgun and nearly a pound of methamphetamine in a backpack in the back seat. Doyle was arrested and later released on bail pending trail.
On Sept. 30, Doyle was again stopped in Susanville when a records check of the car’s license plate indicated it had been reported stolen. During a search of the car, officers found brass knuckles, roughly 5 ounces (150 grams) of methamphetamine, and a loaded handgun in the center console.
This case is the product of an investigation by the Federal Bureau of Investigation, the Lassen County Sheriff’s Office, the Lassen County District Attorney's Office, and the Susanville Police Department. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Doyle faces a maximum statutory penalty of 40 years in prison and a $5 million fine for each of the narcotics charges, each of which also have a statutory minimum sentence of five years. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the felon in possession charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Las Vegas tax preparer pleads guilty to false returnsRead the Press Release
ALBUQUERQUE, N.M. – Carlos Perea, 44, of Las Vegas, New Mexico, pleaded guilty in federal court in Albuquerque today to two counts of aiding and abetting the preparation of false income tax returns.
Perea owned and operated Perea Fast Tax in Las Vegas where he prepared income tax returns for clients and filed them with the IRS electronically and by mail. In the plea agreement, Perea admitted to reporting false information to decrease tax liabilities and increase refunds. Among the deceptive practices employed by Perea were deducting bogus business expenses, falsely reporting head of household status to increase the standard deduction and improperly claiming dependents to increase exemptions.
He faces up to three years in prison on each count.
The IRS investigated this case. Assistant U.S. Attorney Benjamin Christenson is prosecuting the case.
Justice Department’s Procurement Collusion Strike Force Announces Eleven New National PartnersRead the Press Release
The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) is adding 11 new national partners to the Strike Force, for a total of 29 agencies and offices committed on the national level to combatting collusion, antitrust crimes and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
Of the new partners, nine are U.S. Attorneys’ Offices, with complementary enforcement priorities in U.S. cities with diverse government spending profiles:
- David L. Anderson, Northern District of California
- Robert K. Hur, District of Maryland
- Erica H. MacDonald, District of Minnesota
- Michael Hurst, Jr., Southern District of Mississippi
- Seth D. DuCharme, Eastern District of New York
- Matthew G.T. Martin, Middle District of North Carolina
- Stephen Muldrow, District of Puerto Rico
- Stephen J. Cox, Eastern District of Texas
- Ryan Patrick, Southern District of Texas
The PCSF is also welcoming as national partners the United States Air Force Office of Special Investigations and Department of Homeland Security, Office of Inspector General, two critically important law enforcement partners with proven track records of working with the PCSF as well as the Antitrust Division.
“I am excited to welcome these new partners to the PCSF effort,” Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division said announcing the new partners in Washington, D.C. “By growing our national footprint, and folding in additional subject-matter experts, the PCSF is poised for even more success in its next year.”
“DHS OIG is pleased to join our law enforcement partners on the PCSF,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security. “We look forward to working with the Strike Force to combat antitrust crimes and related schemes on behalf of American taxpayers.”
“OSI, led by our Office of Procurement Fraud Investigations team, is pleased to be a full national partner in the PCSF effort,” said Brigadier General Terry L. Bullard, Commander, Air Force OSI. “We are committed to the principles of the PCSF in ensuring we educate and inform our stakeholders to deter bad actors, and in investigating crimes when they do occur. We look forward to furthering this project together with the Department of Justice and sister agencies.”
In remarks delivered to the American Bar Association, Antitrust Section’s Fall Forum, Assistant Attorney General Delrahim also provided recap of the PCSF’s first year of accomplishments, which are detailed in a recent post to the department’s “Justice Blog.”
The PCSF has a publicly available website at www.Justice.gov/Procurement-Collusion-Strike-Force, where members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement. Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected] or filling out the PCSF anonymous complaint form, located on the PCSF website.
Federal, state, and local agencies can also contact the PCSF at [email protected] for any training needs or to report suspected antitrust violations.
Justice Department Settles with Transportation and Logistics Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it reached a settlement with IAS Logistics DFW LLC, d/b/a Pinnacle Logistics (Pinnacle Logistics), a transportation and logistics company headquartered in Fort Worth, Texas.
The settlement resolves claims that Pinnacle Logistics discriminated against an asylee worker based on his citizenship status by rejecting the worker’s valid work authorization documents and terminating him when he could not satisfy the company’s request for specific and unnecessary immigration documents.
“Employers must not interfere with a worker’s lawful right to present acceptable work authorization documents to prove authorization to work in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We applaud Pinnacle Logistics’ decision to work with the Department of Justice and to change its practices to comply with the Immigration and Nationality Act’s non-discrimination protections.”
Based on its investigation, the department concluded that Pinnacle Logistics asked the asylee worker to present an additional, DHS-issued document because of his status as a non-U.S. citizen, even though he had already presented sufficient documentation establishing his work authorization. When the worker could not produce the document Pinnacle Logistics requested, despite being work-authorized, the company terminated him.
The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status or national origin. Instead, in the INA, Congress determined that all work-authorized individuals, regardless of citizenship status, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA does, however, permit employers to reject non-genuine looking documents.
Under the terms of the settlement agreement, Pinnacle Logistics will pay a civil penalty to the United States and back pay to the affected worker, will train its employees about the requirements of the INA’s anti-discrimination provision and proper E-Verify procedures, and will be subject to department reporting requirements over the term of the agreement.
The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
The Civil Rights Division’s Protecting U.S. Workers Initiative, started in 2017 in the Immigrant and Employee Rights Section (IER), targets, investigates, and (where appropriate) brings enforcement actions against employers that intentionally discriminate against U.S. workers due to citizenship-status discrimination based on a preference for temporary visa workers. IER has reached numerous settlements under the Protecting U.S. Workers Initiative, and employers have distributed or agreed to pay a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of the H-1B, H-2A, and H-2B visa programs.
Justice Department Issues Guidance on the Use of Arbitration and Launches Small Business Help CenterRead the Press Release
The Antitrust Division of the Department of Justice announced the publication of two new resources on its website today.
First, the division issued updated and supplemental guidance on the use of arbitration, which includes case selection criteria to help identify Antitrust Division cases that would benefit from the application of arbitration. This guidance reflects the Antitrust Division’s experience using arbitration to resolve a civil antitrust lawsuit challenging Novelis’s proposed merger with Aleris Corporation. The updated document also contains guidance regarding the arbitration agreement, the decision whether to file a complaint in federal district court before the matter is referred to arbitration, arbitrator selection, arbitrator compensation and cost shifting, and the training of Antitrust Division staff on the use of arbitration.
Second, the division launched a new web resource to provide targeted antitrust information and guidance to small business owners. The new “Antitrust and Your Small Business” section of the division’s website contains user-friendly guidance and links to DOJ materials on antitrust “hot topics” relevant to small businesses, including tips on identifying potential anticompetitive conduct that harms small businesses, tips on avoiding and reporting criminal antitrust violations, requirements for applying to the criminal leniency program, tips on avoiding antitrust issues related to hiring and management, materials on COVID-19 and disaster relief, guidance on information sharing and trade associations, and more.
“Earlier this year, the Division prevailed in the first-of-its-kind arbitration of a merger challenge. The new guidance crystallizes our learning from that case and outlines how that learning may be applied to future matters,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Additionally, I am gratified that we are addressing the needs of small businesses in a targeted way. As we have repeatedly said, the antitrust laws are not solely applicable to the biggest businesses, but are meant to protect consumers, workers, and small businesses as well. Given these unprecedented times and the increased visibility of antitrust in the business community, the Antitrust Division hopes these resource pages will help small business owners better understand what the antitrust laws are, examples of conduct they prohibit, and ways to report potential violations.”
The arbitration guidance is available on the Antitrust Division’s website (/media/1104421/dl?inline) and will be published in the Federal Register.
The Antitrust Issues and Your Small Business resource pages can be accessed at www.justice.gov/atr/antitrust-issues-and-your-small-business.
Justice Department Files Race Discrimination Lawsuit Against Pearl, Mississippi Property Owners and Rental AgentRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owners, operators and rental agent of several apartment complexes in Pearl, Mississippi, violated the Fair Housing Act by discriminating against African Americans based on their race.
The department’s complaint seeks relief against three owners and operators of the properties — SSM Properties LLC; Steven Maulding; and Sheila Maulding — as well as James Roe, who acted as a rental agent for the apartment complexes on behalf of the other defendants. The lawsuit is based on the results of testing conducted by the Louisiana Fair Housing Action Center and a Charge of Discrimination issued by the Department of Housing and Urban Development (“HUD”). Testing is a simulation of a housing transaction that compares responses given by housing providers to different types of home-seekers to determine whether or not illegal discrimination is occurring.
The department’s complaint, filed in the U.S. District Court for the Southern District of Mississippi, alleges that Roe discriminated against prospective renters on the basis of race by treating African Americans who inquired about available apartments differently and less favorably than similarly-situated white persons. The properties are:
- Oak Manor Apartments, located at 2592 Old Country Club Road, Pearl, Miss.;
- Pearl Manor Apartments, located at 200 George Wallace Drive, Pearl, Miss.; and
- 468 Place Townhomes, located at 2932-34 State Highway 468, Pearl, Miss.
“More than a half century ago, Congress enacted the Fair Housing Act to prohibit landlords and others from denying people the opportunity to live where they want because of their race, color, or other protected characteristics,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Some misguided people unfortunately continue to defy this law by segregating and excluding people because of their skin color. This uncivilized and cruel discrimination hurts people; it must end, now, and the Department of Justice is determined to put a stop to it. All Americans should be free to live anywhere in the United States without regard to the color of their skin. No one’s housing choices should be limited because of race or color or by more subtle differences in the way home-seekers are treated when they ask about available properties. This department is committed to ensuring equal housing opportunities, regardless of race, including by using fair-housing testing to uncover hidden discrimination that might otherwise go undetected.”
“Treating people differently in housing based on the color of their skin is not only morally and ethically reprehensible and incompatible with American principles, but against federal law,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “We in the Department of Justice will always strive to ensure that justice is done and that people are treated equitably and fairly, especially when seeking and trying to access such an essential cornerstone of a free society as housing. This lawsuit is just one more step up the long staircase of liberty and justice for all.”
“A person’s race should not be a factor when searching for a place to call home,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and remains committed to working with the Justice Department to take appropriate action whenever the nation’s fair housing laws are violated.”
According to the department’s complaint, Roe encouraged white testers to rent at Pearl Manor Apartments but discouraged African-American testers from renting there, telling one African-American tester that if he rented to her at this complex, the residents would think he had “let the zoo out.” In addition, Roe told African-American testers about fewer rental units than white testers, allowed white testers to view certain apartments while not offering or allowing African-American testers the same opportunity, and imposed more stringent financial and employment criteria and inquiries on African-American testers than on white testers. The lawsuit alleges that SSM Properties and Steven and Sheila Maulding are legally responsible for Roe’s alleged discrimination because he worked as their rental agent.
Today’s lawsuit seeks monetary damages to compensate victims, civil penalties against the defendants to vindicate the public interest, and a court order barring future discrimination.
Individuals who believe they or someone they know may have been discriminated against at any of these properties should contact the department toll-free at 1-833-591-0291 or by email at [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at civilrights.justice.gov.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. The complaint contains allegations of unlawful conduct. The allegations in the complaint must be proven in court.
Jury Convicts Hampton Roads Tax Preparer of FraudRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk woman today on 5 counts of wire fraud and 33 counts of aiding and assisting in the preparation of false and fraudulent income tax returns.
According to court records and evidence presented at trial, Nikia Tull, 43, served as the co-owner and operator of YT Phoenix Enterprises, Inc., aka Phoenix Financial Tax Service, a tax preparation service. Between 2014 and 2018, Tull willfully aided and assisted in, and counseled and advised the preparation and presentation to the IRS of 33 federal income tax returns containing numerous false and fraudulent items. In 2019, Tull continued her fraud by submitting forged and fraudulently altered bank statements to FORA Financial LLC, a private lending company located in New York, in support of loan applications for thousands of dollars.
Tull is scheduled to be sentenced on April 12, 2021.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict.
Assistant U.S. Attorneys Daniel P. Shean and Joseph L. Kosky 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. 2:20-cr-9.
Judge sentences armed St. Louis drug dealer for possessing and intending to distribute cocaine, heroin and fentanylRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Melvin A. Willis to 120 months in prison today. The 50-year-old St. Louis, Missouri resident pleaded guilty to three counts of possession with intent to distribute a controlled substance.
On July 12, 2018, members of the St. Louis County Multi-Jurisdictional Drug Task Force arrested Willis on an outstanding warrant. Willis had, in his pocket, a bag with several individually wrapped chunks of crack cocaine, a phone and $1,672 in cash.
That same day, officers conducted a search warrant at a home in the city of St. Louis that Willis shared with his girlfriend. In the master bedroom, officers found a plastic bag with several clear capsules containing a brown powder along with a plastic bag containing a black tar substance, a bag with an off-white powdery substance, Xanax, 9mm ammunition, a loaded 9mm High Point Rifle and a magazine loaded with five rounds ammunition.
In a second bedroom, officers found a Ruger, a semi-auto-automatic rifle, a plastic back with multiple empty clear capsule and a black grinder with a powder residue. In the kitchen, officers found a shoebox with a .22 caliber Sierra Six shot revolver with 41 live rounds of ammunition.
Willis possessed 6.92 grams of a substance containing fentanyl and heroin, .12 grams of heroin and .77 grams of marijuana.
The St. Louis County Multi-Jurisdictional Drug Task Force and FBI investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Jointly Prosecuted Case Across North and South Carolina Results in Man’s Conviction for Abusive Sexual Contact Aboard an AirplaneRead the Press Release
Columbia, South Carolina --- A federal jury sitting in Asheville, North Carolina, has convicted Siva K. Durbesula, 28, of India, of abusive sexual contact aboard an airplane, in a jointly prosecuted case that began in the District of South Carolina and culminated in the Western District of North Carolina, announced Peter M. McCoy, Jr., U.S. Attorney for the District of South Carolina, and R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
“Every person deserves to feel safe when they travel, and that someone would violate that safety through sexual assault is reprehensible. Those who engage in this type of behavior will be prosecuted,” said U.S. Attorney McCoy. “I applaud the courage of the witnesses in the case to step forward. I also appreciate the great work by U.S. Attorney Murray and his team to ensure the defendant’s conviction.”
According to filed court documents, witness testimony, and evidence presented at trial, Durbesula was a passenger aboard Spirit Airlines Flight NK843 from Chicago O’Hare to Myrtle Beach International Airport on June 23, 2019, when he sexually assaulted the 22-year-old woman seated next to him. Specifically, the victim testified that Durbesula repeatedly pulled her toward him and rubbed her breast. After the flight crew separated Durbesula from his victim, he asked to return to his former seat so he could speak to her again. Witnesses to the events aboard the airplane included the lead flight attendant and an unaccompanied minor sitting next to the victim.
The jury also heard from a previous victim of Durbesula. She testified that on March 21, 2019, aboard a subway train in New York City, Durbesula sat immediately next to her although there were empty seats throughout the train car. The previous victim, who was pregnant at the time, testified that shortly after he sat down, Durbesula began groping her breast. She was able to record cell phone video of Durbesula exiting the train after the assault, which was admitted at trial.
The case was a particularly challenging logistical feat, especially in light of the COVID-19 pandemic. Originally indicted in the District of South Carolina, the case was transferred to the Western District of North Carolina for trial after Durbesula agreed that the plane travelled over North Carolina and venue was appropriate in that state. Witnesses in the case came from North Carolina, South Carolina, Wisconsin, Illinois, Florida, and Arkansas to testify.
Durbesula is currently in custody. At sentencing, the charge carries a maximum sentence of two years in federal prison, and Durbesula faces deportation.
In making today’s announcement U.S. Attorneys McCoy and Murray thanked the Horry County Police Department, Federal Bureau of Investigation (FBI), and Homeland Security Investigations (HSI) for their work in investigating the case.
Assistant U.S. Attorneys Don Gast, of the U.S. Attorney’s Office for the Western District of North Carolina in Asheville, and Derek A. Shoemake, of the U.S. Attorney’s Office for the District of South Carolina in Florence, are prosecuting the case. Victim-Witness Coordinators Lynne Crout, with the Western District of North Carolina, and Clarissa Whaley, with the District of South Carolina, provided assistance for the two victims and witnesses across six states.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Inmate at USP Lee Indicted for 2018 Murder of CellmateRead the Press Release
ABINGDON, Virginia - A federal grand jury sitting in U.S. District Court in Abingdon has indicted Samuel Silva, an inmate a United States Penitentiary, Lee County and charged him with the premeditated murder of his cellmate in September 2018, Acting United States Attorney Daniel P. Bubar and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division announced today.
Silva, 45, is charged with one count of willfully, deliberately, maliciously, and with premeditation killing Abraham Aldana, Silva’s cellmate at the time, in September 2018, by stabbing him.
The investigation of the case was conducted by the Federal Bureau of Investigation. Acting United States Attorney Daniel P. Bubar and Assistant United States Attorneys Zachary T. Lee, Daniel J. Murphy, and Aaron Stewart, a Trial Attorney with the Department of Justice’s Capital Case Unit are prosecuting the case for the United States.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Indivior Solutions Sentenced as Part of $2 Billion Resolution of False Safety Claims Concerning SuboxoneRead the Press Release
ABINGDON, Virginia - Indivior Solutions was sentenced to pay $289 million in criminal penalties in connection with a previous guilty plea related to the marketing of the opioid-addiction-treatment drug Suboxone, the Department of Justice announced today.
U.S. District Judge James P. Jones of the Western District of Virginia entered the sentence against Indivior Solutions pursuant to a plea agreement. Together with Indivior’s civil penalties, it will pay $600 million to resolve its civil and criminal liability. Altogether, the investigation and prosecution of Indivior Solutions and its parent companies, Indivior Inc. and Indivior plc, and two former Indivior executives (its CEO and Medical Director) and a resolution with Indivior’s former parent, Reckitt Benckiser Group plc, resulted in recoveries of more than $2 billion.
Suboxone, which contains the powerful opioid buprenorphine, is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment for opioid-use disorder. In connection with its guilty plea, Indivior Solutions admitted to making false statements to the Massachusetts Medicaid program (MassHealth) related to the relative safety of Suboxone Film, a version of Suboxone, around children.
“Combating the opioid epidemic is a top priority for the Department of Justice,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold drug manufacturers accountable when they make misrepresentations that could affect consumers’ access to opioid addiction treatments.”
Indivior Solutions, a subsidiary of Indivior Inc., pleaded guilty on July 24, 2020, to a one-count felony criminal information charging false statements relating to health care matters. Indivior Inc. agreed to terms complementing the Indivior Solutions guilty plea and agreed to implement prospective measures that include permanently disbanding Indivior Inc.’s Suboxone sales force and taking steps to prevent promoting Suboxone to health care providers at a high risk of inappropriate prescribing.
On June 30, 2020, Indivior’s former CEO, Shaun Thaxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. On October 22, 2020, the court sentenced Thaxter to a six-month term of incarceration and $600,000 in criminal fines and forfeiture.
On August 26, 2020, Indivior’s former medical director, Tim Baxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. Baxter’s sentencing hearing is scheduled for December 17, 2020, before Judge Jones in Abingdon, Virginia.
“When a drug manufacturer claims to be part of the solution to the national opioid epidemic, we expect it to make honest representations to government officials, physicians and patients, who have to make crucial treatment decisions,” said Acting United States Attorney Daniel P. Bubar of the Western District of Virginia. “Instead, Indivior made false statements about Suboxone’s safety to increase its sales. I’m proud of the close relationship we have with our federal and state partners that led to today’s important result.”
In its guilty plea, Indivior Solutions, which employed marketing and sales personnel for the Indivior group of companies, admitted that in October 2012 it sought to convince MassHealth to expand Medicaid coverage of Suboxone Film in Massachusetts and sent MassHealth a misleading chart and false data indicating that Suboxone Film had the lowest rate of accidental pediatric exposure (i.e., children taking medication by accident) of all buprenorphine drugs in Massachusetts, when in fact it did not. Indivior Solutions further admitted that sending the false and misleading information occurred in the context of marketing and promotional efforts directed at MassHealth, which were overseen by top executives. MassHealth announced it would provide access to Suboxone Film for patients with children under the age of six shortly after Indivior provided the false and misleading information to agency officials.
“Opioid manufacturers and distributors must be held accountable for their illegal actions in the course of this national crisis that continues to devastate families and communities across the Commonwealth,” said Attorney General Herring. “I want to thank my Medicaid Fraud Unit for their hard work on this important case and I also want to thank our local, state, and federal partners for their help and collaboration. No dollar amount or criminal punishment alone will fix this epidemic, but my team and I remain dedicated to holding these pharmaceutical companies accountable for illegal conduct related to the sales of opioids.”
“The purposefully false assurances of Indivior Solutions leading to potential misuse of potent substances such as Suboxone have only added to the opioid epidemic plaguing our nation,” said Elton Malone, Assistant Inspector General for Investigations with the Office of Inspector General of the U.S. Department of Health and Human Services. “This sentencing, along with law enforcement’s continued focus on this public health crisis, should serve as a warning that large companies cannot rely on their corporate veils to protect them from prosecution.”
“The U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate, said Kenneth Cleevely, Special Agent in Charge of the Eastern Field Office for the U.S. Postal Service Office of Inspector General.. “However, when medical providers or companies choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible.”
“Pharmaceutical companies that falsely promote their drugs, intended to treat opioid addiction, as superior to other alternatives only worsens the opioid crisis that has touched far too many lives in the U.S. Such actions potentially narrow access to treatment for those who need it,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We will continue to investigate and bring to justice those who devise and participate in these schemes to the detriment of the public health.”
“Suboxone is a vital treatment for patients recovering from opioid addiction, and Indivior thwarted lower-cost generic alternatives to maintain its lucrative monopoly of the drug,” said Gail Levine, a Deputy Director of the FTC’s Bureau of Competition. “Working closely with the DOJ, the FTC was able to secure compensation for patients harmed by Indivior’s anticompetitive scheme and ensure that the company does not engage in similar conduct in the future.”
The criminal case against Indivior was prosecuted by Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia; Albert P. Mayer and Carol Wallack of the Department of Justice Civil Division’s Commercial Litigation Branch; Charles J. Biro and Matthew J. Lash of the Department of Justice Civil Division’s Consumer Protection Branch; Kristin L. Gray, Joseph S. Hall and Janine M. Myatt of the Virginia Medicaid Fraud Control Unit of the Office of the Attorney General; and Garth W. Huston of the Federal Trade Commission. This matter was investigated by the Virginia Attorney General’s Medicaid Fraud Control Unit; FDA’s Office of Criminal Investigation; the United States Postal Service Office of Inspector General; and the Department of Health and Human Services Office of Inspector General.
The joint effort advances the goals of the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful practices and to ensure that prescription opioid products are marketed truthfully.
For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva. Additional information about the Consumer Protection Branch and the Civil Fraud Section and their enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch and http://www. justice.gov/civil/fraud-section. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services Office of Inspector General at 800-HHS-TIPS (800-447-8477). To report fraud or other criminal activity involving the Postal Service, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.
Indivior Solutions Sentenced to Pay $289 Million in Criminal Penalties for Unlawful Marketing of Opioid DrugRead the Press Release
Indivior Solutions was sentenced to pay $289 million in criminal penalties in connection with a previous guilty plea related to the marketing of the opioid-addiction-treatment drug Suboxone, the Department of Justice announced today.
U.S. District Judge James P. Jones of the Western District of Virginia entered the sentence against Indivior Solutions pursuant to a plea agreement. Altogether, Indivior Solutions will pay $600 million to resolve its civil and criminal liability in this matter. In total, the payments made by Indivior Solutions and its parent companies, Indivior Inc. and Indivior plc, along with payments made under a 2019 resolution with Indivior’s former parent, Reckitt Benckiser Group plc, and criminal penalties paid pursuant to plea agreements with two former Indivior executives will exceed $2 billion. That amount represents the second-largest monetary resolution obtained by the Department of Justice in a case involving an opioid drug.
Suboxone, which contains the powerful opioid buprenorphine, is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment for opioid-use disorder. In connection with its guilty plea, Indivior Solutions admitted to making false statements to the Massachusetts Medicaid program (MassHealth) related to the relative safety of Suboxone Film, a version of Suboxone, around children.
“Combating the opioid epidemic is a top priority for the Department of Justice,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold drug manufacturers accountable when they make misrepresentations that could affect consumers’ access to opioid addiction treatments.”
Indivior Solutions, a subsidiary of Indivior Inc., pleaded guilty on July 24, 2020, to a one-count felony criminal information charging false statements relating to health care matters. Indivior Inc. agreed to terms complementing the Indivior Solutions guilty plea and agreed to implement prospective measures that include permanently disbanding Indivior Inc.’s Suboxone sales force and taking steps to prevent promoting Suboxone to health care providers at a high risk of inappropriate prescribing.
On June 30, 2020, Indivior’s former CEO, Shaun Thaxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. On Oct. 22, 2020, the court sentenced Thaxter to a six-month term of incarceration and $600,000 in criminal fines and forfeiture.
On Aug. 26, 2020, Indivior’s former medical director, Tim Baxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. Baxter’s sentencing hearing is scheduled for Dec. 17, 2020, before Judge Jones in Abingdon, Virginia.
“When a drug manufacturer claims to be part of the solution to the national opioid epidemic, we expect it to make honest representations to government officials, physicians and patients, who have to make crucial treatment decisions,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Instead, Indivior made false statements about Suboxone’s safety to increase its sales. I’m proud of the close relationship we have with our federal and state partners that led to today’s important result.”
“Pharmaceutical companies that falsely promote their drugs, intended to treat opioid addiction, as superior to other alternatives only worsens the opioid crisis that has touched far too many lives in the U.S. Such actions potentially narrow access to treatment for those who need it,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We will continue to investigate and bring to justice those who devise and participate in these schemes to the detriment of the public health.”
In its guilty plea, Indivior Solutions, which employed marketing and sales personnel for the Indivior group of companies, admitted that in October 2012 it sought to convince MassHealth to expand Medicaid coverage of Suboxone Film in Massachusetts and sent MassHealth a misleading chart and false data indicating that Suboxone Film had the lowest rate of accidental pediatric exposure (i.e., children taking medication by accident) of all buprenorphine drugs in Massachusetts, when in fact it did not. Indivior Solutions further admitted that sending the false and misleading information occurred in the context of marketing and promotional efforts directed at MassHealth, which were overseen by top executives. MassHealth announced it would provide access to Suboxone Film for patients with children under the age of six shortly after Indivior provided the false and misleading information to agency officials.
The criminal case against Indivior was prosecuted by Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia; Albert P. Mayer and Carol Wallack of the Department of Justice Civil Division’s Commercial Litigation Branch; Charles J. Biro and Matthew J. Lash of the Department of Justice Civil Division’s Consumer Protection Branch; Kristin L. Gray, Joseph S. Hall and Janine M. Myatt of the Virginia Medicaid Fraud Control Unit of the Office of the Attorney General; and Garth W. Huston of the Federal Trade Commission. This matter was investigated by the Virginia Attorney General’s Medicaid Fraud Control Unit; FDA’s Office of Criminal Investigation; the United States Postal Service Office of Inspector General; and the Department of Health and Human Services Office of Inspector General.
The joint effort advances the goals of the department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful practices and to ensure that prescription opioid products are marketed truthfully.
For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva. Additional information about the Consumer Protection Branch and the Civil Fraud Section and their enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch and http://www. justice.gov/civil/fraud-section. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Huntingdon Man Sentenced to 5 Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
Jackson, TN – Jamieson Maurice Esquivel, 27, of Huntingdon, TN has been sentenced to 60 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney, announced the sentence today.
According to information presented in court, on September 30, 2017, officers with the Huntingdon Police Department attempted to serve an arrest warrant on Esquivel’s father, James H. Brown, Jr., at a residence in Huntingdon, TN. The officers subsequently obtained a search warrant for that residence, and during the search they discovered two firearms -- a Smith & Wesson Model M&P 9C 9mm pistol and a Rohm Model RG10 .22 caliber revolver. Further investigation revealed that both guns belonged to Esquivel.
Esquivel has an extensive criminal history, including prior felony convictions for Robbery in Madison County in 2012, and Sale of a Schedule II controlled substance in Carroll County in 2012. Esquivel was still on probation in both cases at the time he committed the present offense on September 30, 2017. As a result of his prior felony convictions, he is prohibited by federal law from possessing firearms or ammunition.
On June 16, 2020, the defendant pled guilty to being a convicted felon in possession of a firearm.
On November 10, 2020, U.S. District Court Chief Judge S. Thomas Anderson sentenced Esquivel to 60 months in federal prison followed by three years of supervised release. Chief Judge Anderson also ordered that the federal sentence run consecutive to the state sentence that Esquivel is currently serving for violating his probation in his prior Carroll County felony drug case, which is not scheduled to expire until August 2026. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "As a prior convicted felon, Esquivel has already disrespected the law and shown a manifest disregard for the rights of others. As a result, his possession of firearms continues to threaten the security of his fellow citizens. This sentence accomplishes what his prior state sentences and probation could not – just punishment and incapacitation that will protect public safety."
The Huntingdon Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Hendersonville Emergency Medical Doctor Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – November 12, 2020 – A Hendersonville, Tennessee emergency medical doctor was sentenced today to two years in prison, followed by three years of supervised release, for his role in unlawfully distributing controlled substances.
U.S. Attorney Don Cochran of the Middle District of Tennessee, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division made the announcement.
Lawrence J. Valdez, M.D., 51, was sentenced after pleading guilty in November 2019 to one count of unlawful distribution of controlled substances. U.S. District Judge Eli J. Richardson of the Middle District of Tennessee imposed the sentence.
Valdez admitted that in February 2017 he knowingly distributed oxymorphone, a Schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing Schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, the District Attorney General’s Office for the 18th Judicial District and the 18th Judicial District Drug Task Force investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 50 million pills. Thus far there have been 32 guilty pleas as a result of ARPO Strike Force’s efforts. The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare 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.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Harrison County residents indicted on methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Harrison County residents are facing methamphetamine charges after a grand jury in Clarksburg indicted them on November 3, 2020, U.S. Attorney Bill Powell announced.
Larry Thomas Gregory, II, 43, and Angela Nicole Chapman, 33, both of Shinnston, West Virginia, are each charged with one count of “Conspiracy to Possess with the Intent to Distribute and Distribute 500 grams or more of Methamphetamine,” one count of “Possession with Intent to Distribute 500 grams or more of Methamphetamine ,” one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine,” and one count of “Maintaining a Drug-Involved Premises.”
The two are accused of working together to distribute more than 500 grams of methamphetamine from September 2019 to February 2020, sometimes from their residence on Morris Street in Shinnston, in Harrison County.
Gregory and Chapman each face at least 10 years and up to life incarceration and a fine of up to $10,000,000 for each of the 500 grams or more of methamphetamine charges. Gregory and Chapman face not less than five and up to 40 years of incarceration and a fine of up to $5,000,000 for the 50 grams of methamphetamine charge. They each also face up to 20 years of incarceration and a fine of up to $1,000,000 drug premises charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative; the U.S. Postal Inspection Service; and the Shinnston Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand jury indicts another individual for conspiracy to commit murder-for-hire and murder-for-hire schemeRead the Press Release
ST. LOUIS, MO – A federal grand jury returned a superseding indictment against James Timothy Norman, Terica Taneisha Ellis, Waiel Rebhi Yaghnam and Travell Anthony Hill. Norman, Ellis and Hill are charged with conspiracy to commit murder-for-hire and murder-for hire resulting in the death of Andre Montgomery. Norman and Yaghnam are charged with conspiracy to commit wire and mail fraud and Yaghnam is charged with five counts of aggravated identity theft all in connection with Montgomery’s murder-for-hire.
According to the indictment and other court documents, James Timothy Norman conspired with Terica Ellis, Travell Anthony Hill and others to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a total of $450,000 in life insurance proceeds on his 20-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary.
In the days leading up to Montgomery’s murder, Ellis, an exotic dancer residing in Memphis, Tennessee, communicated with Montgomery and informed him she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location for the purpose of luring Montgomery outside. Immediately after learning Montgomery’s location, Ellis relayed the address to Norman and Hill. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis deposited over $9,000 in cash into various bank accounts. On March 16, 2016, Hill received a cash payment of $5,000 at the direction of Norman. That same day Hill engaged in recorded phone conversation with an individual in jail and discussed Montgomery’s murder and his payment. On March 18, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
The indictment alleges prior to Montgomery’s murder, Norman conspired with Yaghnam, his insurance agent, to fraudulently obtain a life insurance policy on Montgomery. Beginning in October of 2014, Norman and Yaghnam submitted five separate life insurance applications, all containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background. In the life insurance policy that ultimately issued, Norman obtained a $200,000 policy, as well as a $200,000 accidental death rider that would pay out in the event that Montgomery died of something other than natural causes, and a $50,000 10 year-term rider that would pay out if Montgomery died within 10 years of the policy’s issuance in 2014.
“This murder-for-hire cold case from 2016 demonstrates once again the power of law enforcement partnership and persistence,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “By combining resources and expertise, the FBI and St. Louis Metropolitan Police Department overcame numerous challenges to uncover the details of this plot.”
The arrests of Norman, Ellis and Hill are part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The St. Louis Metropolitan Police Department Homicide Section and Federal Bureau of Investigation are investigating these current charges.
If convicted of the conspiracy to commit murder-for-hire or murder-for-hire resulting in death, the penalty is life imprisonment or death and a fine of $250,000. Conspiracy to commit wire and mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000. Aggravated identity theft carries a minimum sentence of imprisonment of two years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, the charge in an indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
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Getaway Driver Sentenced to More Than Seven Years in Federal Prison on Charges Related to Two 2019 Bank Robberies in BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Richard Adams, age 60, of Baltimore, Maryland, to 90 months in federal prison, followed by five years of supervised release, for aiding and abetting armed bank robbery and aiding and abetting the brandishing of a firearm during a crime of violence, in connection with armed bank robberies committed in Baltimore on January 23 and February 1, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Adams’ guilty plea, he served as the getaway driver in connection with two armed bank robberies committed by his two co-defendants, Richard Tingler and David Gollahon. On January 23, 2019, Adams drove Tingler and Gollahon to a bank in the 3600 block of Boston Street in Baltimore, in a car he had rented two weeks earlier. The robbers were each armed and wore masks and gloves when they entered the bank. The robbers told everyone to put their hands up. Tingler approached the victim teller, pointed his firearm at her, and demanded $100 dollar bills and “loose bills” from the bottom drawer of the till. Meanwhile, Gollahon held the customers and other bank employees at gunpoint in the lobby area of the bank. The victim teller handed over the cash and the robbers ran away. As they ran through a parking lot adjacent to the bank, they accidentally dropped more than $5,000 in cash. They then got into the gray car driven by Adams, who had been waiting for them, and Adams drove them away from the area.
On February 1, 2019, Adams drove his co-defendants to a bank located in the 2900 block of O’Donnell Street in Baltimore, in a 2006 Chevy Monte Carlo that was registered to Adams. Tingler and Gollahon entered the bank armed with the same firearms they had used in the previous robbery and again wore masks and gloves to conceal their identities. The robbers pointed their firearms at the tellers and demanded money. After the tellers handed over cash from the till, the robbers demanded more cash. The tellers provided the robbers with cash from the bank’s vault and included a GPS tracker, which was activated. The robbers fled the bank and got into Adams’ car and Adams drove them away from the bank.
Baltimore Police Department (BPD) units responding to the robbery were provided with the GPS tracking information and located the vehicle with Adams and his co-defendants inside. All three were arrested. At the time of their arrests, Gollahon had the gun used in the robbery on his person. A subsequent search of the vehicle recovered the second firearm used by Tingler in both robberies, and a blue backpack containing the cash stolen during the robbery and the GPS tracking device. Later that day, a search was executed at Adams’ residence which recovered clothing and a leather duffel bag used during the first robbery.
Adams’ co-defendants, Richard Tingler, age 56, and David Gollahon, age 59, both of Baltimore, Maryland, pleaded guilty to the federal charges of armed bank robbery and brandishing a firearm during a crime of violence. If the court accepts their guilty pleas, Gollahon is expected to be sentenced to between 12 and 15 years in federal prison and Tingler is expected to be sentenced to up to 18 years in federal prison. Judge Chasanow has scheduled Gollahon’s sentencing for December 10, 2020, and set Tingler’s sentencing for January 19, 2021 at 9:30 a.m. All three defendants remain detained.
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. 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.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul A. Riley and Daniel A. Loveland, Jr., who are prosecuting the case.
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Former Massachusetts Man Indicted on Contempt Charges After Attempting to Flee the Country to Avoid Prison SentenceRead the Press Release
BOSTON – An Illinois man, who previously lived in Massachusetts, was charged in federal court in Worcester with contempt after attempting to flee the United States.
Ashokkumar Patel, a/k/a “Andy” Patel, 31, of Bartlett, Illinois, and formerly of Worcester and Plainville, Mass., was indicted on one count of contempt.
According to court records, Patel was convicted in June 2019 of conspiracy to commit wire fraud, wire fraud and money laundering. As part of that case, Patel was released from custody pending sentencing, and was subject to court-ordered conditions of release which included, among other things, that his travel was restricted to Massachusetts, as well as parts of Illinois, Wisconsin and Indiana. In September 2020, Patel was sentenced to 40 months in prison and ordered to self-report to the Bureau of Prisons on Nov. 3, 2020.
It is alleged that on Oct. 15, 2020, Patel was encountered by the Royal Canadian Mounted Police in a ditch in an area of blueberry fields in Canada, just over the Washington state border. Patel was returned to the United States and arrested.
Patel faces a sentence of up to six months in prison and a $1,000 fine on the contempt charge plus up to an additional year in prison for committing this offense while on release, which must be served consecutive to any sentence he receives for contempt. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistance was provided by U.S. Customs and Border Protection, Blaine Border Patrol Station in Washington. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Folsom Man Indicted for Sexually Exploiting MinorsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Matthew Goyder, 37, of Folsom, charging him with three counts of sexual exploitation of a child, distribution of child pornography, and receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between July 2017 and March 2020, Goyder engaged in the sexual exploitation of three minor victims using the internet. In addition, he distributed and received child pornography.
This case is the product of an investigation by the Internet Crimes Against Children task force, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the Pasco County Sheriff’s Office, and the Folsom Police Department. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted of sexual exploitation of a child, Goyder faces a mandatory statutory minimum sentence of 15 years in prison up to a maximum penalty of 30 years in prison and a fine of up to $250,000. If convicted of the receipt and distribution of child pornography counts, Goyder faces a mandatory minimum sentence of five years in prison up to a maximum penalty of 20 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Florida Man Indicted for Selling Fentanyl on the Darknet in Exchange for CryptocurrencyRead the Press Release
SACRAMENTO, Calif. — A Florida man was indicted today for distributing heroin, oxymorphone, oxycodone, and fentanyl as the narcotics vendor “chlnsaint” on Empire Market, a darknet hidden service, U.S. Attorney McGregor W. Scott announced.
Chaloner Saintillus, 32, of Delray Beach, Florida, was charged with conspiracy to distribute a controlled substance and four counts of distribution of a controlled substance.
According to court documents, the vendor site for “chlnsaint” advertised the sale of fentanyl, carfentanyl, cocaine, oxymorphone, and other narcotics. From August 2019, when the vendor account was created, through August 2020, when Empire Market stopped its operations, “chlnsaint” completed over 1,100 narcotics sales and had a positive customer feedback rating of 98%. Saintillus also offered direct deals through the encrypted messaging app Wickr under the name “showstill.”
Through the course of the investigation, agents conducted numerous undercover buys of fentanyl, heroin, oxycodone, and oxymorphone. Surveillance footage from the post offices from where the parcels were mailed revealed that Saintillus paid for the postage. Agents also conducted surveillance of Saintillus in Florida and identified him mailing a parcel that was later seized and found to contain fentanyl. Agents conducted a search of Saintillus’ residence on Oct. 26, and found a loaded handgun, more than 2,000 rounds of ammunition, large quantities of narcotics, including fentanyl, and approximately $25,000 in the cryptocurrency XRP.
This case was investigated by the Northern California Illicit Digital Economy (NCIDE) task force, which is comprised of agents from the Federal Bureau of Investigation, Homeland Security Investigations, the United States Postal Inspection Service (USPIS), the Internal Revenue Service, Criminal Investigation, and the Drug Enforcement Administration. NCIDE agents received assistance from the West Palm Beach, Florida offices of USPIS, HSI, FBI, and DEA, and the Palm Beach County Sheriff’s Office and the Delray Beach Police Department. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
If convicted of the conspiracy charge, Saintillus faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. If convicted of the drug distribution charges, he faces a statutory maximum penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Inmate Charged with Plotting to Hire Hitman to Kill Informant and then Kill ProsecutorRead the Press Release
Greenville, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that a federal grand jury has indicted Federal Bureau of Prisons (BOP) inmate Richard Gilbert in connection with a murder-for-hire plot. According to the indictment, Gilbert, who was serving time at a federal prison in Edgefield for trafficking methamphetamine in Bowling Green, Kentucky, sought to hire a hitman to kill the federal prosecutor and a key witness from his Kentucky case.
The charges stem from an undercover operation during which Gilbert, from a contraband cell phone in prison, communicated with an undercover task force officer with the Federal Bureau of Investigation (FBI) who was posing as a hitman. According to the indictment, following multiple recorded phone calls, Gilbert sent the undercover officer a $2,000 check from his prison canteen account as a down payment for the retaliatory murder-for-hire. Masking the true purpose of this payment, Gilbert attempted to mislead BOP officials by misrepresenting the payment as being for an “investment firm.”
“Those who seek violent retribution on law enforcement and individuals who assist law enforcement will held accountable,” said U.S. Attorney McCoy. “Violence is a plague on our society that can only be cured with the faithful commitment of dedicated law enforcement officers and prosecutors. We must remember that they put their lives on the line every day to ensure the laws of our society are applied.”
Gilbert is charged with murder-for-hire, retaliation against an informant, and money laundering. According to the indictment, Gilbert drew maps of where he believed the witness from Kentucky lived and provided direction to the undercover officer, posing as the hitman, on how to avoid detection by nearby surveillance cameras. The Indictment further alleged that Gilbert, who owns several pieces of real property in Kentucky, planned to use the income from two of his rental properties to facilitate the attempted murder-for-hire and retaliation plot—and additionally had plans to use the value of his ownership stake in other land to pay for the murder of the federal prosecutor from Kentucky.
The case is being investigated by the FBI and the BOP Special Operations Response Team and prosecuted by Assistant United States Attorneys Jim May, Justin Holloway, and Will Jordan.
The United States Attorney stated all charges in this case are merely accusations at this stage, and the defendant is presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Authorities Arrest 9 Defendants Charged in Relation to Scheme that Laundered over $30 Million in Fraud ProceedsRead the Press Release
LOS ANGELES – Federal authorities this morning arrested nine defendants, most of whom allegedly were involved in a sophisticated money laundering scheme that moved tens of millions of dollars derived from tax fraud and health care fraud schemes.
Two indictments unsealed this morning allege that a total of 10 defendants participated in a large operation that laundered more than $30 million in tax refunds that had been obtained from approximately 7,000 fraudulent tax returns filed using identities stolen from thousands of American taxpayers. Seven of the 10 defendants named in these two indictments were arrested this morning, and three are still being sought by authorities.
Two additional defendants arrested this morning are charged in two other indictments that allege fraud, one involving a car leasing scam and one involving a short sale scheme involving a $2 million residence that was forfeited to the United States earlier this year. A second defendant in the real estate scam is also a fugitive.
The leader of the schemes outlined in the two money laundering indictments – Gagik Airapetian – directed other conspirators to use altered foreign passports, mostly from the Republic of Armenia, to rent mailboxes and open bank accounts to launder funds from tax fraud and health care fraud, according to the indictments. Members of the conspiracies allegedly altered Republic of Armenia passports by placing their photographs on top of the real passport holders’ photographs, and then using the altered passports to open more than 500 bank accounts.
The nine defendants were arrested this morning by special agents with the FBI and IRS Criminal Investigation.
The defendants arrested pursuant to the money laundering indictments are: Gagik Airapetian, 62, of Woodland Hills; Tigran Galstyan, 48, of Sylmar; Moses Seraydarian, 54, of Northridge; Stepan Terakopyan, 35, of Granada Hills; Petros Terakopyan, 64, of Sun Valley; Karen Pogosian, 49, of Van Nuys; and Haroutioun Demirdjian, 54, of North Hollywood.
Authorities are continuing to search for three money laundering defendants: Davit Asoyan, 29, of Granada Hills; Nikoghos Petrosyan; and Albert Andriasov, 28, of Las Vegas.
Ara Sahakyan, 54, of Reseda, was arrested pursuant to the indictment alleging the car leasing scheme in which he leased three different vehicles by falsely claiming to be a CFO earning $189,000 per year.
In relation to the indictment that alleges the short sale scheme, Armen Oganesian, 56, of Los Feliz, was arrested this morning. Arsen Abrahamyan is also charged in this case, and he is believed to have fled the United States.
Members of the money laundering conspiracies used attorneys to try to unfreeze bank accounts that banks had frozen due to suspected fraud, according to court documents. Airapetian bribed a lawyer to use his attorney client trust account – which is supposed to be used by attorneys to segregate client funds from the attorney’s money – to launder more than $500,000 in tax fraud proceeds, the indictment states. Glendale lawyer Arthur S. Charchian previously pleaded guilty to one count of money laundering and one count of making a false statement to the Social Security Administration as he admitted laundering $549,000 for the scheme.
According to one of the indictments unsealed today, defendant Galstyan bribed bank managers to unfreeze bank accounts that contained funds suspected to have been derived from fraud. Last year, a former Wells Fargo Bank manager, Hakop Zakaryan, pleaded guilty to bank fraud for his role in the scheme.
The other money laundering indictment unsealed today describes a related conspiracy, also orchestrated by Airapetian, that laundered monies derived from health care fraud. Similar to the tax fraud money laundering scheme, members of this conspiracy allegedly opened bank accounts using fraudulent identities, and Airapetian allegedly charged a 30 percent laundering fee. As detailed in the indictment, the FBI also conducted an undercover operation where the schemers laundered funds they thought were from health care fraud.
The arrests this morning are part of a continuing multi-agency investigation into a Stolen Identity Refund Fraud (SIRF) scheme – dubbed Operation “SIRF’s Up” – that involved conspirators who used false identities and fake Republic of Armenia and other former Soviet Republic passports to open hundreds of bank accounts that were used to launder tens of millions of dollars in tax refunds fraudulently received from the IRS. After the arrests this morning, federal authorities have now charged a total of 35 defendants linked to the scheme. So far, the investigation has resulted in 15 convictions, and the seizure of at least five residential properties worth millions of dollars and more than $700,000 from bank accounts. Five defendants remain fugitives from justice.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
f convicted of all charges, Airapetian would face a statutory maximum sentence of more than 400 years in federal prison. The other defendants in the money laundering indictments unsealed today each face prison statutory maximum sentences of more than 100 years of imprisonment.
This matter was investigated by IRS Criminal Investigation, the FBI, and Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Eranga Cardiology to Pay $500,000 to Resolve Health Care Fraud AllegationsRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Eranga Cardiology, P.A. and Dr. Eranga Haththotuwa have agreed to a $500,000.00 settlement with the government to resolve allegations of health care fraud arising under the False Claims Act. Eranga Cardiology is a cardiology practice with locations in Milford and Dover.
From April 2014 to March 2020, the practice submitted claims for reimbursement to Medicare and Medicaid that required both performance of cardiology procedures and the generation of corresponding interpretive reports. The United States alleged that the practice submitted and received payment for these claims without generating the required interpretive reports. The civil claims settled by this False Claims Act agreement are allegations only; there has been no admission of fault.
“The U.S. Attorney’s Office for the District of Delaware is committed to combating health care fraud and protecting Medicare beneficiaries using all available remedies,” said U.S. Attorney Weiss. “When providers cut corners by failing to ensure that procedures are adequately documented, it cheats both the patients and the government.”
The settlement announced today resolves a lawsuit filed under the whistleblower provision of the False Claims Act. The government’s claims are based on a whistleblower suit filed by a former employee of Eranga Cardiology. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblowers with a share of the government’s recovery.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the District of Delaware, U.S. Department of Health and Human Services, and the Delaware Department of Justice.
“Providers should bill taxpayer-funded government health programs for services actually provided—no less and certainly never more,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue aggressively investigating schemes that undermine the integrity of these vital programs. Anyone suspecting Medicare or Medicaid fraud is urged to please contact our investigative hotline at 1-800-HHS-TIPS (1-800-447-8477).”
This matter was investigated by Assistant U.S. Attorneys Shamoor Anis and Laura Hatcher.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 1:17-cv-1742-MN.
El Departamento de Justicia Llega a un Acuerdo con una Agencia de Transporte y Logística que Resuelve unas Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con IAS Logistics DFW, LLC, d/b/a Pinnacle Logistics (Pinnacle Logistics), una compañía de transporte y logística con sede en Fort Worth, Tejas. El acuerdo resuelve las acusaciones que Pinnacle Logistics había discriminado a un trabajador que era asilado con base en su estatus de ciudadanía al rechazar los documentos válidos de autorización para trabajar del trabajador y despedirlo cuando no pudo satisfacer la solicitud de la compañía de documentos migratorios específicos e innecesarios.
«Los empleadores no deben interferir en el derecho legal de un trabajador a presentar los documentos aceptables de autorización para trabajar para demostrar autorización para trabajar en los Estados Unidos», declaró Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Felicitamos a Pinnacle Logistics por decidir trabajar con el Departamento de Justicia y ajustar sus prácticas para que cumplan con las protecciones antidiscriminatorias de la ley de Inmigración y Nacionalidad».
Con base en su investigación, el Departamento concluyó que Pinnacle Logistics había pedido al trabajador asilado que presentara un documento adicional emitido por el Departamento de Seguridad Nacional debido a su condición como no ciudadano de los EE. UU., aunque ya había presentado suficiente documentación que demuestra su autorización para trabajar. Cuando el trabajador no pudo producir el documento que Pinnacle Logistics le había pedido, a pesar de estar autorizado para trabajar, la compañía lo despidió.
La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. A su vez, en la INA, el Congreso determinó que todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos. No obstante, la INA sí permite que los empleadores rechacen documentos que no parecen ser genuinos.
Conforme los términos del acuerdo conciliatorio, Pinnacle Logistics pagará una sanción civil a los Estados Unidos y pagos retroactivos al trabajador afectado, capacitará a sus empleados acerca de los requisitos de la disposición antidiscriminatoria de la INA y los procedimientos apropiados para E-Verify y se someterá a los requisitos de declaración del Departamento durante el plazo del acuerdo.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico a [email protected]; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
La División de Derechos Civiles quiere enterarse de más vulneraciones de derechos civiles. Miembros del público pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores para pedir ayuda.
La Iniciativa para la Protección de Trabajadores en Este País, de la División de Derechos Civiles, se lanzó en el 2017 en la IER y señala, investiga y (donde proceda) aplica medidas de cumplimiento a empleadores que intencionalmente discriminen a trabajadores en este país por motivos de su estatus de ciudadanía para dar preferencia a trabajadores temporales de visa. La IER ha llegado a numerosos acuerdos bajo la Iniciativa para la Protección de Trabajadores en Este País y empleadores han distribuido o acordado distribuir un total combinado de más de 1,2 millónes de dólares por concepto de pagos retroactivos a trabajadores afectadso en este país y sanciones civiles a los Estados Unidos. Estos acuerdos implican empleadores que fueron discriminatorios en su uso de los programas de visa de H-1B, H-2A y H-2B.
Des Moines Man Sentenced to 20 Years in Prison for Child Pornography OffenseRead the Press Release
DES MOINES, IA – On Tuesday, November 10, 2020, Robert Joe Hennings, age 33, of Des Moines, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 240 months in federal prison, to be followed by 20 years of federal court supervision, for receipt of child pornography, announced United States Attorney Marc Krickbaum. Hennings was ordered to forfeit the electronic media used in the offense, pay $15,000 in restitution to victims, and pay $100 to the Crime Victims’ Fund. Hennings was also ordered to register as a sex offender after his release.
According to the record made at sentencing, Hennings collected in excess of 550,000 images of child pornography over a three-year period, including material involving sexual assaults on prepubescent minors, including an infant. The sentence was, in part, a reflection of the danger Hennings posed to children, based on the Court’s finding that he engaged in chats with others where he expressed his desire to have sex with boys younger than five years old and said he wanted to purchase a young prostitute under five years of age.
The case was a joint federal-state effort involving both the Federal Bureau of Investigation’s Child Exploitation Task Force and the Iowa Department of Criminal Investigation’s Internet Crimes Against Children Task Force.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Denver Man Charged with Aiming Laser Pointer at Denver Police Department Helicopter During Protest on November 4Read the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Logan Scott Debyle of Denver has been charged with aiming a laser pointer at a Denver Police Department (DPD) helicopter. According to the affidavit in support of the complaint, Debyle allegedly used a green laser pointer to illuminate the cockpit of a DPD helicopter called “Air 1” as the helicopter observed civil unrest during the evening of November 4, 2020. The flight crew of Air 1 viewed two men associated with the laser. The men were then detained by DPD ground officers.
Debyle made his initial appearance before the United States District Court for the District of Colorado today. Debyle is charged with violating 18 U.S.C. § 39A. If convicted, he faces a sentence of not more than five years imprisonment and a fine of not more than $250,000. The charge contained in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty in a court of law.
This matter is being investigated by the FBI’s Denver Field Office and the Denver Police Department. Assistant United States Attorney David Tonini is handling the prosecution on behalf of the United States. The case number is 20-mj-180.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Delaware County Attorney Convicted of Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dory L. Sater, age 46, of Drexel Hill, Pennsylvania, was convicted on November 10, 2020, following a jury trial, of bank fraud and aggravated identity theft offenses. The six-day trial was held before United States District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney David J. Freed, the jury returned the guilty verdict on both counts in the indictment after approximately one hour of deliberation. Sater was convicted of one count of bank fraud and one count of aggravated identity theft.
The evidence presented at trial showed that in August 2017, Sater forged a mortgage satisfaction piece and filed the instrument with the Luzerne County Recorder of Deeds Office. The forged document erased a mortgage held by Fidelity Deposit & Discount Bank on the Mountaintop, Pennsylvania residence of Sater’s parents. The mortgage had served as collateral for a $50,000 line of credit that Sater had withdrawn in its entirety. Evidence at trial established that Sater’s parents were considering selling their residence while the forged satisfaction piece was recorded. In the process of forging the mortgage satisfaction piece, Sater also forged the signatures of a Fidelity bank officer and of a public notary, whose notary stamp he stole to use on the forged document. Sater was a personal injury attorney in Delaware County, who ran The Sater Law Firm LLC.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and James Buchanan are prosecuting the case.
The maximum penalty under federal law for the bank fraud offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charge carries a mandatory, consecutive two-year term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Danbury Man Who Embezzled $1.1 Million Sentenced to 41 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY TEIXEIRA, 51, of Danbury, was sentenced today by U.S. District Judge Vanessa L. Bryant to 41 months of imprisonment, followed by three years of supervised release, for embezzling $1.1 million from his employer.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, for more than 25 years, Teixeira was employed by Joseph Merritt & Company (“JMC”), a Hartford-based printing company. Teixeira most recently oversaw the JMC branch located in Danbury. Between approximately January 2012 and February 2019, Teixeira defrauded JMC and its customers by presenting sales orders, or test sales orders, to customers as though they were actually invoices. Customers, believing they were paying JMC for the work, then delivered payments into accounts that Teixeira controlled. Teixeira also stole printing-related inventory from JMC inventory and sold it online, but manipulated invoices to deceive JMC’s systems into thinking the company had sold the inventory. The loss attributable to Teixeira through these schemes is approximately $1.1 million.
Judge Bryant ordered Teixeira to make full restitution in an amount that is still to be determined.
Teixeira was arrested on a federal criminal complaint on December 12, 2019, and was subsequently released on a $50,000 bond. He has been detained since June 1, 2020, after Judge Bryant determined that Teixeira had violated the conditions of his release and revoked his bond. An investigation revealed that Teixeira spent more than $48,000 while released on bond, in violation of court-imposed restrictions on his financial activity.
On July 24, 2020, Teixeira pleaded guilty to one count of wire fraud.
This investigation was conducted by the Federal Bureau of Investigation and Danbury Police Department. The case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Amanda S. Oakes.
Convicted Felon Sentenced to Nearly 20 Years in Prison for Distributing MethamphetamineRead the Press Release
ALBANY, Ga. – An Albany resident with at least two previous felony convictions was sentenced to 235 months in federal prison for distributing methamphetamine out of his home, announced Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Derry Marquez Brooks, 42, of Albany, was sentenced by U.S. District Judge Leslie Gardner on Tuesday, November 10 to 235 months in prison to be followed by 5 years of supervised release after pleading guilty to distribution of methamphetamine. There is no parole in the federal system.
On December 13, 2018, a cooperating source (CS) placed a recorded phone call to Brooks to order two ounces of methamphetamine. The CS met with Brooks at the defendant’s home and acquired the methamphetamine. While there, the CS observed numerous firearms, and Brooks quoted a price for the sale of a rifle. The CS later returned to purchase a semi-automatic rifle from Brooks. Brooks has been previously convicted of aggravated assault and possession with intent to distribute cocaine in the Superior Court of Dougherty County, Georgia.
“Selling drugs and illegal firearms is a dangerous business that breeds crime and violence in our communities. We will not tolerate it. We are working closely with our local, state and federal law enforcement partners to crack down on this illicit activity across the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “I want to thank the many cooperating agencies involved in bringing Brooks to justice and working to make our communities safer.”
The case was investigated by the Lee County Sheriff’s Office, Albany-Dougherty Drug Unit, Georgia Bureau of Investigations (GBI), FBI and Drug Enforcement Administration (DEA). Assistant U.S. Attorney Leah McEwen prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Camden Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A member of a Camden drug-trafficking organization today admitted conspiring to distribute heroin, U.S. Attorney Craig Carpenito announced.
Jose Agron, 26, of Camden, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to distribute and possess with intent to distribute at least one kilogram of heroin.
Fourteen other members of the drug-trafficking conspiracy based in the 500 block of Pine Street in Camden – Ronnie Lopez, Nelson Salcedo, Carlos Perez, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, David Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, and Meylin Troncoso – previously have pleaded guilty in this case. The charges against three other defendants remain pending.
According to documents filed in this case and statements made in court:
An investigation by led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization. Members of the drug-trafficking organization sold heroin, crack cocaine, cocaine, and fentanyl in and around Camden.
The count to which Agron pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a lifetime in prison, and a $10 million fine. Sentencing is scheduled for March 15, 2021.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
For the defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
California Man Sentenced to 120 Months for Attempted Online Enticement of a MinorRead the Press Release
FRANKFORT, Ky. – A California man, Michael John Davidson, 31, was sentenced to 120 months in prison on Thursday, by U.S. District Judge Gregory Van Tatenhove, after previously being convicted by a federal jury of attempted online enticement of a minor to engage in sexual activity. The jury reached its verdict after approximately one hour of deliberations, following a day and a half trial.
According to testimony at trial, on February 20, 2019, Davidson contacted an individual, who self-identified as a 15-year-old female living in Franklin County, Kentucky, using the KiK messenger internet application on his cellular telephone. The person Davidson contacted was, in reality, an investigator with the Kentucky Office of the Attorney General’s Cyber Crimes Branch. From February 20-22, 2019, a conversation between Davidson and the investigator took place on the KiK messenger. Eventually, the Defendant turned the conversation sexual activity, and transmitted several images of himself.
The conversation between the Davidson and the investigator resulted in a planned meeting for sex, on February 22, 2019. On February 22, 2019, Davidson drove from Jamestown, Kentucky, to Frankfort, Kentucky, in order to meet the investigator and engage in criminal sexual activity. When the Davidson arrived at the agreed-upon meeting place, he was arrested by law enforcement.
Davidson was convicted in May 2020.
Under federal law, Davidson must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 20 years, following his release. In addition to the prison sentence, Davidson was also ordered to pay $5,100 in special assessments.
“The importance of the law enforcement efforts to protect children from online sexual predators cannot be overstated,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant used the internet to knowingly plan to have sex with someone he believed was a 15 year old girl. Fortunately, because of the excellent work of law enforcement, he was identified and arrested. His federal prison sentence is deserved, and serves as a warning for those who would engage in similar conduct.”
“Investigators with our Cyber Crimes Unit work to stay one step ahead of cyber predators who target children,” said Attorney General Cameron. “As children spend more time online during the pandemic, these efforts and partnerships with law enforcement are more important than ever. I appreciate the work of our Department of Criminal Investigations, U.S. Attorney Duncan, and the Louisville Field Division of the U.S. Secret Service in this case.“
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Ralph Gerds, Assistant Special Agent in Charge, U.S. Secret Service Louisville Field Division; and Daniel Cameron, Attorney General for the Commonwealth of Kentucky, jointly announced the sentencing.
The investigation was conducted by the United States Secret Service and Kentucky Attorney General’s Cyber Crime Branch. The United States was represented in the case by Assistant U.S. Attorney Erin M. Roth and Special Assistant U.S. Attorney James T. Chapman.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, which was 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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Boston Man Sentenced for Being Felon in Possession of FirearmRead the Press Release
BOSTON – A Boston man was sentenced today for being a felon in possession of a firearm.
Naysaan Austin, 23, was sentenced by U.S. District Court Judge Patti B. Saris to 66 months in prison and one year of supervised release. In August 2020, Austin pleaded guilty to one count of being a felon in possession of a firearm.
On June 16, 2019, Austin was arrested in Dorchester for carrying a Sig Sauer .22 caliber Mosquito Pistol loaded with five rounds of ammunition. The serial number on the gun was obliterated. Before he was arrested, Austin ran away from law enforcement officers, despite numerous orders to stop. At the time of his arrest, Austin was on probation and therefore prohibited from possessing a firearm.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Berkeley County woman indicted on drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jacqueline L. Krsul, of Falling Waters, West Virginia, was arrested today after an indictment charging her with cocaine possession, U.S. Attorney Bill Powell announced.
Krsul, 30, is charged with one count of “Possession with Intent to Distribute Cocaine Base.” Krsul is accused of having cocaine base or “crack” in April 2020 in Morgan County.
Krsul faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Morgan County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Bedford Attorney Pleads Guilty to Wire Fraud and Money Laundering Related to Theft of Client FundsRead the Press Release
CONCORD - John Allen, 63, of Bedford, New Hampshire, pleaded guilty in federal court to wire fraud and money laundering, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Allen was a New Hampshire attorney who provided legal services related to, among other things, commercial real estate acquisition and development and secured lending transactions. As an attorney in New Hampshire who handled clients’ funds, Allen was required to maintain two Interest on Lawyer Trust Accounts (commonly known as IOLTA).
From approximately January of 2014 through October of 2019, Allen engaged in a scheme to defraud several of his clients of over $2.4 million. Allen’s clients gave him funds to hold in escrow for specific purposes, including private lending, real estate transactions, and particular business deals. Although Allen told his clients he would hold the funds in his IOLTA for these purposes, he transferred those funds between his IOLTAs and, without authority to do so, into another bank account he controlled. He then spent the funds on his own personal expenses and for unrelated business expenses. All the while, he misled these clients by representing that the funds were in one of his IOLTAs or were being used for their intended purposes.
For example, Allen caused one client to invest more than $1.5 million in fraudulent promissory notes that Allen created using other persons’ identities. Allen did not invest the money and instead kept it for himself. Allen also stole nearly $1 million from other clients by transferring money they had provided for specific real estate transactions from his IOLTA to other accounts he controlled. To hide the sources of the funds he stole from his clients, Allen comingled fraud proceeds and legitimate funds, made many transfers back and forth between accounts, and spent the funds in those accounts on unrelated business and personal expenses. In total, Allen stole at least $2,426,258 from his clients.
Allen is scheduled to be sentenced on February 25, 2021. His license to practice law in New Hampshire was suspended in 2019.
“When clients come to an attorney seeking assistance, they place their trust in that attorney,” said U.S. Attorney Murray. “John Allen betrayed that trust, took advantage of his clients, and stole their money. These are the actions of a white collar criminal rather than a dedicated counselor at law. Accordingly, John Allen is being prosecuted for wire fraud and money laundering. To protect the public and seek justice for victims, we work closely with the FBI and all of our law enforcement partners to identify and prosecute white collar criminals who steal money from clients.”
“Today, John Allen finally accepted the blame for betraying his clients’ trust and lying to them, claiming he had more than $2.4 million of their hard-earned money safely tucked away, when in reality he was bleeding them dry to make up for his own bad business decisions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This is a teachable moment for anyone who thinks they can take advantage of their position for personal gain. Don’t do it, because the FBI will do everything in our power to ensure you will be held accountable.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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