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Thursday 29 October 2020
Firefighter Pleads Guilty to Attempted Coercion and Enticement of MinorRead the Press Release
RICHMOND, Va. – A Pittsburgh man pleaded guilty today to attempted coercion and enticement of a minor to engage in illegal sexual activity.
According to court documents, in November 2019, Brian Kosanovich, 58, a firefighter living in Pittsburgh, responded to a profile posted by an FBI undercover employee on Alt.com, which is a website that hosts a network of members interested in alternative forms of sexual relationships, including a variety of fetishes, kinks, BDSM, etc. The undercover officer’s profile indicated that she was a single mother with a 10-year-old daughter. After establishing contact on Alt.com, Kosanovich and the undercover officer began communicating via the Kik messaging application. Kosanovich and the undercover officer engaged in extensive conversations of a sexually explicit nature for several months, much of which focused on Kosanovich having sex with the 10-year-old as well as the mother. At several points, Kosanovich engaged in sexually explicit chats with the undercover officer who at the time was posing as the 10-year-old girl herself. Over the period of the investigation, Kosanovich sent the undercover officer nude “selfies” pictures, and a prepaid Visa card so that the mother could buy sex toys to use with the daughter. Ultimately, on February 18, Kosanovich traveled from Pittsburgh to Richmond for the stated purpose of having sex with the mother and daughter, and was arrested by FBI officials upon his arrival.
Kosanovich faces a mandatory minimum term of 10 years in prison, and a maximum possible sentence of life in prison when sentenced on March 3, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. Attorney’s Offices and the 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.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorney Brian R. Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-103.
Final Waco Drug Ring Conspiracy Defendant Sentenced to Federal PrisonRead the Press Release
In Waco today, a federal judge sentenced 33-year-old Jeremiah Hector Marquez to 327 months in federal prison for his leadership role in a Waco-based methamphetamine distribution operation. Marquez’s sentencing was the final sentence handed down in this indictment. All 20 indicted defendants were convicted in this case for their roles in the distribution scheme. Eighteen of the defendants received federal prison terms ranging from two years to life imprisonment. One defendant was sentenced to time served and one defendant received probation.
U.S. Attorney Gregg N. Sofer; Drug Enforcement Administration Special Agent in Charge Steven S. Whipple, Houston Division; FBI Special Agent in Charge Christopher Combs; Waco Police Chief Ryan Holt; Killeen Police Chief Charles Kimble; McLennan County Sheriff Parnell McNamara; and, Texas Department of Public Safety Director Steven McCraw made today’s announcement.
A federal grand jury indictment in August 2018 charged the defendants, including Waco resident and fellow ringleader Daniel Louis Lopez who is currently serving a life sentence, with conspiracy to possess with intent to distribute methamphetamine. From May 2017 to the time of indictment, these defendants were responsible for the distribution of more than twelve kilograms of methamphetamine throughout the Waco and Central Texas areas.
On April 2, 2019, Marquez pleaded guilty to the conspiracy charge. In addition to the prison term, U.S. District Judge Alan Albright ordered that Marquez pay a $5,000 fine and be placed on supervised release for a period of five years after completing his prison term.
“Methamphetamine or “meth” destroys lives. It’s a highly addictive poison and those that sell it are victimizing our communities. If you deal meth in Central Texas, you can expect to spend a long time in prison,” stated U.S. Attorney Sofer.
The DEA, FBI, U.S. Marshals Service, Texas Department of Public Safety, Waco Police Department, Killeen Police Department and the McLennan County Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation. Assistant U.S. Attorneys Mark Frazier and Christopher Blanton prosecuted this case on behalf of the government.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
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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 Grand Jury Returns Superseding Indictment Charging Fort Myers Business Owner with COVID Relief Fraud and Mortgage FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the return of a superseding indictment charging Casey David Crowther (35, North Fort Myers) with two counts of bank fraud, two counts of making a false statement to a lending institution, and three counts of illegal monetary transactions. If convicted, Crowther faces a maximum penalty of 30 years in federal prison on each bank fraud and false statement count, and up to 10 years’ imprisonment for each illegal monetary transaction count. The indictment also notifies Crowther that the United States intends to forfeit a 2020 40-foot catamaran, real property in St. James City, Florida, and $2,098,700, which are alleged to be proceeds of the offenses; the real property is also subject to forfeiture because it was involved in the illegal monetary transaction.
A federal grand jury had previously indicted Crowther for COVID relief fraud on September 23, 2020. The superseding indictment contains additional counts charging Crowther with mortgage fraud.
According to the
superseding indictment , as part of his scheme, beginning in June of 2020, Crowther submitted false and fraudulent Uniform Residential Loan Applications (URLA) to a mortgage broker and mortgage lender, causing the lender to disburse approximately $640,381 in loan funds. Specifically, Crowther intentionally misrepresented his liquid assets in the URLAs and created false and fraudulent bank statements which purported to show he had more assets than he actually had.A superseding indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Trent Reichling.
Federal Grand Jury B Indictments Announced- OctoberRead the Press Release
United States Attorney Trent Shores announced today the results of the October Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Sharilyn Rose Browning. Assault with a Dangerous Weapon in Indian Country. Browning, 30, of Tulsa, is charged with assaulting a male victim with a knife. The FBI and Tulsa Police Department are the investigative agencies.
Pedro Santiago Cabrera; Rolando Reyna Reyes. Conspiracy and Manufacture and Possession of over 50 grams of Methamphetamine With Intent to Distribute and Maintaining a Drug Involved Premises; Manufacture and Possession of Over 50 Grams of Methamphetamine With Intent to Distribute; Maintaining a Drug Involved Premises. Cabrera, 36, and Reyes, 34, both of Tulsa, are charged with knowingly manufacturing, possessing, and distributing methamphetamine and maintaining a drug involved premises to carry out the conspiracy. The two allegedly manufactured and possessed with intent to distribute 50 grams or more of methamphetamine. The Drug Enforcement Administration and the Tulsa Police Department are the investigative agencies.
Alexander Choate. Failure to Register as a Sex Offender. Choate, 49, of Tulsa, is charged with failing to register as a sex offender and to update his registration. The U.S. Marshals Service is the investigative agency.
Jesus Herrera Diaz. Possession of Methamphetamine With Intent to Distribute. Herrera, 29, of Tulsa, is charged with knowingly possessing with intent to distribute 50 grams or more of methamphetamine in the Northern District of Oklahoma. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Craig Lamar Gonzales. Kidnapping in Indian Country; Sexual Abuse in Indian Country; Assault in Indian Country (misdemeanor). Gonzales, is charged with kidnapping and sexually abusing a female victim. He is also charged with assaulting the victim by pulling her from a car by her hair, yanking her head back, and spitting on the victim. The FBI and Tulsa Police Department are the investigative agencies.
Coalton Payne Guinn. Sexual Abuse of a Minor in Indian Country. Guinn, 25, of Kellyville, is charged with knowingly engaging in sexual acts with a child between 12 and 16 years of age. The FBI and Sapulpa Police Department are the investigative agencies.
Rebecca Raye Jackson; Sabrina Rena Lee. Conspiracy to Commit Armed Robbery in Indian Country; Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Jackson and Lee are charged with conspiring to communicate with the victim via Facebook and lure him to a Super 8 hotel room in Tulsa to engage in sex acts. As part of the conspiracy, the two allegedly surprised the victim with a 12-gauge shotgun and took his personal property, including money, keys, wallet, and a cell phone. The two allegedly split the money from the robbery. Jackson is also charged with robbery in Indian Country, and both women are charged with brandishing the shotgun during the robbery. The FBI and Tulsa Police Department are the investigative agencies.
Tyler Jonathan Martin. Robbery in Indian Country. Martin, 28, of Tulsa, is charged with robbing a victim by force and intimidation. The FBI and the Tulsa Police Department are the investigative agencies.
Richi Keith McHenry. Felon in Possession of Firearm and Ammunition. McHenry, 42, of Broken Arrow, is charged with being a felon in possession of a Smith and Wesson, .22 caliber semi-automatic pistol and seven rounds of ammunition. McHenry was previously convicted of multiple felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Casey Brandon Peterson. Aggravated Sexual Abuse of a Child in Indian Country. Peterson, 35, of Sapulpa, is charged with sexually abusing a child under 12 years of age. The FBI and Sapulpa Police Department are the investigative agencies.
Anthony Raul Proctor. Felon in Possession of a Firearm and Ammunition. Proctor, 32, of Bristow, is charged with being a felon in possession of a Smith and Wesson .40 caliber pistol and 14 rounds of ammunition. Proctor is a 5-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, and Muskogee Creek Nation Lighthorse Police Department are the investigative agencies.
John Earl Shugart. Failure to Register as a Sex Offender in Indian Country. Shugart, 42, of Tulsa, is charged with failing to register as a sex offender and update his registration. The U.S. Marshals Service is the investigative agency.
Herchell Lee Timmons. Theft Over $1,000 in Indian Country; Burglary in First Degree in Indian Country. Timmons, 21, of Jenks, is charged with stealing an F-150 pick-up truck valued at over $1,000 as well as with breaking the outer door of a home with others in order to commit burglary. The homeowner was present when the crime took place. The FBI and Tulsa Police Department are the investigative agencies.
Ex-Keesler Airman Sentenced to over Ten Years in Federal Prison for Child PornographyRead the Press Release
Gulfport, Miss. – Gianluca Quagliaroli, 21, of North Carolina, was sentenced Tuesday by U.S. District Judge Sul Ozerden to 121 months in prison, followed by 20 years of supervised release, for receipt of child pornography, announced U.S. Attorney Mike Hurst, Acting Special Agent in Charge Gilbert Trill of Homeland Security Investigations (HSI) in New Orleans, and Special Agent Shannon Robinson, Commander of Air Force Office of Special Investigations (AFOSI) Detachment 407 at Keesler Air Force Base. Quagliaroli was ordered to pay $9,000 in restitution to identified victims and $5,100 in special assessment fees. He was also ordered to register as a sex offender.
“I want to commend the work of our law enforcement and military for discovering and bringing this criminal to justice. Those who deal and trade in child pornography perpetuate harm against children and combatting and ending this elicit market of child pornography is a high priority for the Department of Justice,” said U.S. Attorney Hurst.
“Those who serve in trusted public positions are not immune to investigation and prosecution, especially those who participate in the exploitation of children,” said HSI New Orleans acting Special Agent in Charge Gilbert Trill. “HSI is committed to protecting our nation’s children. This sentencing demonstrates the effectiveness our collaborative efforts with civilian and military law enforcement partners.”
Special Agent Robinson stated, “This was a total win coupled with great teamwork. The Office of Special Investigations, Detachment 407, is proud to have uncovered such criminal activity, shedding light on it through persistent and diligent investigative work. We’re thankful to have a great working relationship with the United States Attorney’s Office, who successfully prosecuted this case.”
On March 11, 2019, Quagliaroli received both photographs and videos of child pornography that he solicited through the social media site Instagram. Quagliaroli then stored some of the child pornography on his Google Drive account. Shortly thereafter, the child pornography was identified through the National Center for Missing and Exploited Children (NCMEC). The NCMEC tip was ultimately referred to the AFOSI Detachment at Keesler Air Force Base, where subsequent investigation disclosed that then-Airman Quagliaroli had received the child pornography referenced in the tip.
Quagliaroli was originally indicted for this offense on February 12, 2020. With the cooperation of law enforcement partners at Keesler AFB, Quagliaroli was arrested by civilian federal authorities for receipt of child pornography immediately following his discharge from the Air Force. Quagliaroli pled guilty before Judge Ozerden on June 3, 2020.
Homeland Security Investigations and the Air Force Office of Special Investigations investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner and Special Assistant United States Attorney Alexxa Pritchett.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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.justice.gov/psc.
Enfield Man Charged with Defrauding the Department of Veterans Affairs to Receive BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut; Christopher Algieri, Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office; and James M. Noble, Special Agent in Charge, Coast Guard Investigative Service, Northeast Region, announced that DERRICK BREWER, 35, of Enfield, was arrested today on a criminal complaint charging him with offenses related to his submission of altered documents to the Department of Veterans Affairs (“VA”).
As alleged in the criminal complaint, in March 2018, Brewer submitted paperwork to the VA offices in Hartford as part of an application for service-connected disability benefits. Specifically, Brewer submitted a form known as a “DD-214,” which indicated that his discharge from his former service in the U.S. Coast Guard was characterized as “Honorable.” The DD-214 had been altered prior to its submission, as official Coast Guard records show that Brewer’s discharge was characterized as “Other Than Honorable Conditions” following Brewer’s convictions under the Uniform Code of Military Justice. There is no record of the discharge characterization ever having been upgraded. As a result of this submission, Brewer collected approximately $69,584.16 in VA benefits up until September 30, 2020.
The complaint charges Brewer with theft of government funds, which carries a maximum term of imprisonment of 10 years, and making false statements, which carries a maximum term of imprisonment of five years.
Brewer appeared today via videoconference before U.S. Magistrate Judge Robert A. Richardson and was released on a $10,000 bond.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, and the Coast Guard Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Margaret Maigret Donovan.
Elmira Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Brian Thomas, 60 of Elmira, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possessing child pornography. The charge carries a maximum penalty of 20 years in prison, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on March 29, 2020, the defendant distributed, to an undercover FBI Task Force Officer, child pornography depicting the sexual abuse of several prepubescent children. Using IP information, the FBI was able to locate Thomas and execute a search warrant at his residence. Digital storage devices, including a computer and thumb drive, were seized. A forensic examination determined that Thomas received and possessed child pornography on both devices.
The defendant is a registered sex offender following previous New York State convictions for child sexual abuse and child exploitation crimes. When interviewed by the FBI, Thomas admitted that during the 1980’s and 1990’s, he sexually abused approximately nine children between the ages of 4 and 10.
The plea is the result of an investigation by the Corning Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, with assistance from the Elmira Police Department, under the direction of Chief Joseph Kane.
Sentencing is scheduled for January 11, 2021, before Judge Geraci.
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East Bay Residents Charged with Mail Fraud Conspiracy in Connection with Alleged Identity Theft SchemeRead the Press Release
OAKLAND – Dayna Lynn Alexander, also known as Dayna Lyn Huntsman, and Alicia Amanda Roberts, also known as Alicia Roberts Canal, have been charged in a criminal complaint with an alleged conspiracy to commit mail fraud, announced United States Attorney David L. Anderson and United States Postal Inspection Service San Francisco Division Inspector in Charge Rafael Nunez. Alexander made her initial federal court appearance today before U.S. Magistrate Judge Nathanael M. Cousins.
According to the affidavit filed with the criminal complaint, Alexander, 47, of Vallejo and San Pablo, reviewed obituaries in order to identify individuals who had recently suffered “sudden deaths.” Alexander would then find their personal identifying information from online sources and use that information to place holds on their U.S. Postal Service mail and to change their mailing addresses. Alexander would cause checks and debit cards to be mailed from the victims’ accounts, and she would obtain them from the victims’ new mailing address. Alexander also opened bank accounts using the victims’ information. She and her co-conspirators would deposit funds into these accounts and write checks to themselves from the accounts. Alexander would then assume yet another victim’s identity in order to obtain and spend those funds.
Alexander and her co-conspirators, including Roberts, 41, of San Pablo, would also use the victims’ legitimate credit cards and other online payment accounts, including PayPal, to make purchases at Amazon and other vendors. Roberts assumed one victim’s identity in order to rent storage units in which Alexander and Roberts stored stolen access devices and counterfeit identification cards as well as stolen mail and financial documents in the names of the victims.
While incarcerated in county facilities, Alexander continued to identify potential victims and relayed that information to Roberts. Alexander discussed using the deceased victims as potential sureties for bail bonds in order to secure her release from custody. Alexander also drafted a handwritten guide to educate others on how to commit the fraud scheme, which she mailed to a co-conspirator.
Alexander and Roberts are charged with conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. If convicted, they will face a maximum statutory sentence of 20 years. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Alexander is scheduled to appear before Magistrate Judge Virginia K. DeMarchi on November 5, 2020, at 10:30 a.m., for a detention hearing.
Alicia Amanda Roberts, who is also known as Alicia Roberts Canal, has not been arrested nor made an initial appearance. Anyone with information regarding her location is encouraged to contact the U.S. Postal Inspection Service.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorney Samantha Bennett is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Danville Police Department.
Donavan Thomas Culps Sentenced to Life Imprisonment in Federal Prison for Second Degree Murder Which Occurred Within the Boundaries of the Yakama NationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Donavan Thomas Culps, age 39, of Harrah, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation, was sentenced today after having pleaded guilty on February 18, 2020, to second degree murder. Chief United States District Judge Stanley A. Bastian sentenced Culps to a life term of imprisonment.
According to information disclosed during court proceedings, in late March 2016, F.M. was murdered in her residence, which was located within the boundaries of the Yakama Nation. Culps learned that George Cloud and N.C. had allegedly murdered F.M. In late June 2017, N.C. traveled to Culps’ residence in Harrah, Washington. When N.C. arrived, Culps pulled N.C. out of a vehicle and began beating him with his fists. During the assault, N. C. yelled “why?” Culps responded, “You know why!” N.C. lost consciousness. Culps and an accomplice then dragged N.C. behind a trailer and attempted to place zip ties on him. N.C. regained consciousness, whereupon Culps took out a hunting knife and stabbed N.C. in the chest, neck, and stomach. Culps ultimately slit N.C.’s throat.
After the murder, Culps wrapped up the victim’s body, transported it to another location, and dumped the body. Culps then fled from the area. In August 2017, a concerned citizen reported that N.C. was missing.
In September 2017, Culps was involved in an unrelated murder in Cheney, Washington. Culps fled and was eventually apprehended by the Pacific Northwest Violent Offender Task Force. Culps admitted to the murder in Cheney, Washington. He pled guilty to the murder and was sentenced to 416 months in state custody.
Culps also admitted to homicide investigators that he murdered N.C. and told them where they would find N.C.’s body. On September 18, 2017, when homicide investigators searched that area, they found N.C.’s remains.
During the sentencing hearing, Chief Judge Bastian observed that Culps has a “history of violence” and described the crime he committed as an “execution.”
United States Attorney Hyslop said, “Murder, the killing of another person as occurred here, justifies the life sentence imposed by the Court. He won’t be returning to the streets of the Yakama Nation. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakama Nation Police Department, the Pacific Northwest Violent Offender Task Force, and the Federal Bureau of Investigation, who all worked together to solve this heinous crime. Their seamless partnership resulted in the successful investigation and prosecution of Culps. Others who may choose to engage in similar violent criminal activity in the future should know from this case that law enforcement will find you, we will prosecute you, and if proven guilty, you will be going to jail for a very long time.”
FBI Special Agent in Charge Raymond Duda said, “Mr. Culps is a lifelong offender responsible for murders of multiple individuals. Together with our partners, the FBI will continue to investigate violent criminals and pursue justice on behalf of the citizens of the Yakama Nation and Washington state.”
Federal charges were also filed against George Cloud arising from the murder of F.M. On January 17, 2019, a federal jury found George Cloud guilty of First Degree Murder and Discharge of a Firearm During a Crime of Violence. On May 1, 2019, Chief Judge Bastian sentenced George Cloud to a term of life imprisonment.
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakama Nation Police Department. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Doctor Admits Role in Illegal Kickback SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, doctor today admitted participating in a conspiracy to violate the federal anti-kickback statute, U.S. Attorney Craig Carpenito announced.
Mark A. Filippone, 72, of Wallington, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiring to violate the anti-kickback statute with three individuals: Joseph Vangelas, a/k/a “Joseph Miller,” 34, of Fort Lee, New Jersey; Marlene Vangelas, 59, of River Vale, New Jersey; and Zachary Ohebshalom, 34, of Fort Lee, New Jersey. Criminal charges against Miller and Marlene Vangelas remain pending. Ohebshalom previously pleaded guilty for his role in the conspiracy, and Estela Blaustein, 55 of Mahwah, New Jersey, also previously pleaded guilty for her role in a related conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Beginning in May 2016, Filippone participated in a kickback conspiracy scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, which was owned and operated by Miller and Marlene Vangelas. Miller and Marlene Vangelas, along with Ohebshalom, directed pharmacy employees to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Miller, Marlene Vangelas, and Ohebshalom also directed pharmacy employees to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Marlene Vangelas orchestrated the purchase of Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Marlene Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 3, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Nicole F. Mastropieri of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the information pertaining to Miller and Marlene Vangelas are merely accusations, and they are presumed innocent unless and until proven guilty.
Disbarred Attorney Pleads Guilty to Stealing 9/11 Victim Compensation FundsRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that GUSTAVO L. VILA, a disbarred lawyer in Westchester County, pled guilty today in White Plains federal court to stealing government funds. VILA’s plea results from his theft of approximately $1 million that the Department of Justice’s 9/11 Victim Compensation Fund (“VCF”) had awarded to the defendant’s client, a 9/11 first responder.
VILA was arrested on September 3, 2020, and pled guilty today before U.S. District Judge Vincent L. Briccetti.
Acting U.S. Attorney Audrey Strauss said: “As he admitted today, Gustavo Vila stole money awarded by the 9/11 Victim Compensation Fund to his client, an NYPD officer and 9/11 first responder, and falsely told the client for more than three years that the stolen money had yet to be released by the Fund. Now Gustavo Vila awaits sentencing for his crime.”
According to the Complaint, the Information, and other statements made in open court:
In the wake of the September 11 terrorist attacks, Congress created the VCF to provide compensation with federal government funds to any individual who suffered physical harm or was killed as a result of the terrorist attacks, or as a result of the debris removal efforts that took place in the immediate aftermath of those attacks. The original VCF operated from 2001 to 2004. President Obama and President Trump reactivated the VCF, authorizing it to operate through October 2016, and December 2020, respectively. Claimants seeking compensation from the VCF were authorized to work with an attorney and have the attorney, on the claimant’s behalf, submit a claim to, and receive the claimant’s award from, the VCF. An attorney’s fees were limited to 10% of a VCF award.
From at least in or about 2012 through at least in or about 2019, VILA represented a retired New York City Police Department officer (“Victim-1”) in connection with Victim-1’s claim for compensation from VCF. Victim-1 was diagnosed with, and suffered from, serious, life-threatening medical conditions, including cancer, as a result of rescue and recovery work he performed at Ground Zero. Throughout his representation of Victim-1, VILA held himself out as an attorney to Victim-1 and to VCF, despite the fact that in 2015, VILA was disbarred.
In or about May 2013, VILA submitted a claim to VCF on behalf of Victim-1. VILA also submitted forms to the VCF authorizing the VCF to deposit Victim-1’s compensation award directly into a bank account controlled by VILA’s law firm (the “Bank Account”). On or about September 13, 2016, the VCF authorized an award to Victim-1 of $1,030,622.04 for life-threatening illnesses that the client sustained from rescue and recovery work he performed as a police officer at Ground Zero.
On or about October 12, 2016, the VCF deposited the full amount of Victim-1’s award – over $1 million – into the Bank Account. At that point, VILA was required to distribute all of that money, less 10 percent for his purported attorney’s fees, to Victim-1. VILA, however, did not inform Victim-1 about this deposit, and kept 90 percent of the award – $927,559.84 – for himself. VILA used the money he stole for his own personal benefit, including to pay his own taxes. From in or about October 2016 to in or about February 2020, VILA falsely represented to Victim-1 that the VCF had not yet released the majority of Victim-1’s VCF award, when in fact, the entire award had been released for Victim-1’s benefit in October 2016.
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VILA, 62, of Yorktown Heights, New York, pled guilty to one count of theft of government funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
VILA will be sentenced on February 5, 2021.
Ms. Strauss praised the outstanding investigative work of DOJ-OIG’s Fraud Detection Office.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
Department of Justice announces the use of body-worn cameras on federal task forcesRead the Press Release
ST. LOUIS, MO— The Justice Department announced it will permit state, local, territorial, and tribal task force officers to use body-worn cameras on federal task forces around the nation. The department’s policy will permit federally deputized officers to activate a body-worn camera while serving arrest warrants, or during other planned arrest operations, and during the execution of search warrants. The policy is the result of a pilot program launched by the department last October.
“After spending a substantial amount of time examining this issue, assessing the results of the pilot program, and taking into account the interests and priorities of all the law enforcement agencies involved, I am pleased to announce that the department will permit the use of body-worn cameras on our federal task forces in specific circumstances,” said Attorney General William P. Barr. “The Department of Justice has no higher priority than ensuring the safety and security of the American people and this policy will continue to help us fulfill that mission.”
The Department of Justice, through the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA); the FBI; and the U.S. Marshals Service (USMS), partners with state, local, territorial, and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics, and arrest dangerous fugitives.
On Oct. 28, 2019, after consulting with a number of state and local law enforcement associations, the Attorney General announced a pilot program to consider the use of body-worn cameras on federal task forces. In January 2020, federal task force officers in several pilot cities began using body-worn cameras on task force operations and concluded the pilot program on Sept. 1, 2020.
The department would like to thank the Houston Police Department, Detroit Police Department, Wichita Police Department, Salt Lake City Police Department and Park City Police Department for their participation in the pilot program, as well as all of the state and local law enforcement leaders that have provided input and guidance.
State and local agencies that would like to participate in DOJ’s task force body-worn camera program may contact the Special-Agent-in-Charge of the federal agency sponsoring the task force, or, in the case of USMS-led task forces, the federal district’s U.S. Marshal. Due to the large number of state and local agencies nationwide that may like to participate, federal agencies may establish a graduated process to onboard partner agencies to the body-worn camera program. This will ensure an orderly and coordinated process to deal with the technical, training, and operational considerations involved in establishing a large-scale body-worn camera program.
Click here to learn more about the body-worn camera policy.
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Department of Justice Announces the Use of Body-Worn Cameras on Federal Task ForcesRead the Press Release
Today, the Justice Department announced that it will permit state, local, territorial, and tribal task force officers to use body-worn cameras on federal task forces around the nation. The department’s policy will permit federally deputized officers to activate a body-worn camera while serving arrest warrants, or during other planned arrest operations, and during the execution of search warrants. The policy is the result of a pilot program launched by the department last October.
“After spending a substantial amount of time examining this issue, assessing the results of the pilot program, and taking into account the interests and priorities of all the law enforcement agencies involved, I am pleased to announce that the department will permit the use of body-worn cameras on our federal task forces in specific circumstances,” said Attorney General William P. Barr. “The Department of Justice has no higher priority than ensuring the safety and security of the American people and this policy will continue to help us fulfill that mission.”
The Department of Justice, through the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA); the FBI; and the U.S. Marshals Service (USMS), partners with state, local, territorial, and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics, and arrest dangerous fugitives.
On Oct. 28, 2019, after consulting with a number of state and local law enforcement associations, the Attorney General announced a pilot program to consider the use of body-worn cameras on federal task forces. In January 2020, federal task force officers in several pilot cities began using body-worn cameras on task force operations and concluded the pilot program on Sept. 1, 2020.
The department would like to thank the Houston Police Department, Detroit Police Department, Wichita Police Department, Salt Lake City Police Department and Park City Police Department for their participation in the pilot program, as well as all of the state and local law enforcement leaders that have provided input and guidance.
State and local agencies that would like to participate in DOJ’s task force body-worn camera program may contact the Special-Agent-in-Charge of the federal agency sponsoring the task force, or, in the case of USMS-led task forces, the federal district’s U.S. Marshal. Due to the large number of state and local agencies nationwide that may like to participate, federal agencies may establish a graduated process to onboard partner agencies to the body-worn camera program. This will ensure an orderly and coordinated process to deal with the technical, training, and operational considerations involved in establishing a large-scale body-worn camera program.
Read the policy: Use of Body-Worn Cameras by Federally Deputized Task Force Member
Craig Man Sentenced for Firearms ViolationRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Justin J. Seley, 36, of Craig, was sentenced by Chief U.S. District Judge Timothy M. Burgess, to serve one year and one day in prison, followed by three years of supervised release for possession of a registered firearm by an unregistered person.
According to court documents, on October 23, 2018, Seley possessed 7 rifles, 2 handguns and a receiver. All firearms were seized. One of the seized firearms was a short barreled DSA ZM4 .300 caliber rifle, which was not registered with the National Firearms Registration and Transfer Record. As someone previously convicted of a felony, Seley was prohibited from possessing firearms. In May of 2020, Seley plead guilty to possession of a registered firearm by an unregistered person.
At the sentencing hearing, Judge Burgess cited the seriousness of the offense, and noted the need for general deterrence. All firearms seized in the case were forfeited.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please visit https://www.justice.gov/ag/about-project-guardian
Convicted felon and Corpitos gang member returns to prisonRead the Press Release
CORPUS CHRISTI, Texas - A 33-year-old Corpus Christi resident has been ordered to federal prison for unlawfully possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick.
Michael Andrew Scott pleaded guilty Nov. 21, 2019. Scott is an identified member of the Tango Blast gang known locally as the “Corpitos.”
Today, U.S. District Judge David S. Morales handed Scott an 87-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence detailing the Scott’s criminal conduct over the past 15 years.
In the very late hours of Sept. 29, 2019, law enforcement stopped Scott for speeding. At that time, they found a fully-loaded 15-round magazine within his reach as well as 12 separate small bags of marijuana, digital scale and U.S. currency that had cocaine residue. Further, authorities also discovered a Glock 19 firearm and second 9mm magazine concealed in the vehicle’s steering column.
Scott has prior felony convictions in Texas for aggravated assault with a deadly weapon, robbery and cocaine possession. As such, he is prohibited from possessing a firearm or ammunition per federal law.
Scott was permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation along with the Corpus Christi Police Department. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Construction Business Operator Pleads Guilty in Manhattan Federal Court to Tax FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Michael Montanez, the Special Agent-in-Charge of the Newark Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that BILAL SALAJ, an operator of a construction business, pled guilty to conspiracy to defraud the IRS, tax evasion, and failure to pay over payroll taxes. SALAJ pled guilty before U.S. Magistrate Judge Ona T. Wang.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Bilal Salaj defrauded the IRS by evading both payroll taxes for his business and personal income taxes. To carry out the scheme, Salaj lied to his own accountant and caused false tax returns to be filed with the IRS. Now he awaits sentencing for his crimes.”
IRS-CI Special Agent-in-Charge Michael Montanez said: “When Mr. Salaj made the decision to evade paying taxes for himself and his business, he also made the decision to cheat every honest hardworking taxpayer. Today’s guilty plea should send a strong deterrent message that IRS-Criminal Investigation will vigorously pursue those individuals who attempt to cheat our nation’s tax system.”
According to the allegations contained in the Information to which SALAJ pled guilty and statements made in court:
At all relevant times, BILAL SALAJ, a citizen and resident of the United States, operated a construction business in Manhattan. Initially, SALAJ was the record owner of the business, but in approximately July 2014, SALAJ began operating the business under a new entity that, on paper, was wholly owned by a third party (“Individual-1”), who worked for SALAJ in the construction business. Despite this purported change in ownership, SALAJ continued to exercise principal control and decision-making authority over the business and its financial affairs. In particular, SALAJ was a responsible person under federal law for collecting, truthfully accounting for, and paying over payroll taxes to the IRS.
Between at least in or about 2014 and in or about June 2019, SALAJ devised and perpetrated a scheme to evade a substantial portion of both the payroll taxes for the construction business and SALAJ’s personal income taxes for the period 2014 through 2018. During this period, SALAJ cashed, and caused Individual-1 to cash, approximately $3.2 million in business checks payable to the construction company at check cashing facilities in Manhattan, instead of depositing them into the company’s operating bank account. SALAJ and Individual-1 used a portion of the proceeds from the cashed checks to pay cash wages to employees of the construction business, and spent most of the rest on personal expenses. SALAJ did not withhold or pay over to the IRS any payroll taxes on the cash wages paid to the employees, and did not report to the IRS or pay any personal income taxes on the cash income he realized through the cashed checks. As part of the tax evasion scheme, SALAJ fraudulently withheld from his accountant any records relating to the cashed business checks, and thereby caused false tax returns to be filed with the IRS. The tax evasion scheme, including relevant conduct, resulted in a tax loss to the IRS of approximately $952,778.
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SALAJ, 55, of Morganville, New Jersey, pled guilty to one count of conspiracy to defraud the IRS, one count of tax evasion, and one count of failure to pay over payroll taxes, each of which carries a maximum sentence of five years in prison. As part of the plea agreement, SALAJ has agreed to pay restitution to the IRS in the amount of $952,778. Sentencing is scheduled for March 3, 2021, at 2:00 p.m., before U.S. District Judge P. Kevin Castel.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Connecticut Nurse Charged with Tampering with Liquid MorphineRead the Press Release
BOSTON – A Connecticut nurse was charged with tampering with liquid morphine prescribed to a patient.
Danielle Works, 42, of Stafford Springs, Conn., was charged on Oct. 27, 2020 with tampering with a consumer product.
According to the charging document, on Jan. 27, 2018, Works tampered with a bottle of morphine prescribed to a patient at Governor’s Center, a nursing facility in Westfield, by removing the morphine from the bottle and diluting the remaining morphine with another substance.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Acting Commissioner Margaret Cooke of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Chris Looney of Lelling’s Health Care Fraud Unit 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.
Colorado Springs Agrees to Improve Stormwater Management in Settlement with the United StatesRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with the City of Colorado Springs, Colorado, to resolve violations of the Clean Water Act with respect to the City’s storm sewer system.
The settlement also includes the State of Colorado as a co-plaintiff, and the Lower Arkansas Valley Water Conservancy District and the Board of County Commissioners of the County of Pueblo as plaintiff-intervenors. The improvements made by the city under this settlement will result in significant reductions in the discharge of pollutants, such as sediment, oil and grease, heavy metals, pesticides, fertilizers, and bacteria, into Fountain Creek and its tributaries in Colorado Springs. Communities downstream of Colorado Springs will also see significant water quality improvements from the settlement.
The Department of Justice, the EPA and the State of Colorado alleged claims against the City of Colorado Springs in an amended complaint filed in the U.S. District Court for the District of Colorado on Jan. 26, 2017. The Lower Arkansas Valley Water Conservancy District, and the Board of County Commissioners of the County of Pueblo were joined as plaintiffs on Feb. 16, 2017. The amended complaint generally alleged that the City of Colorado Springs violated its National Pollutant Discharge Elimination System (NPDES) permit for its municipal stormwater management program by failing to require the installation and maintenance of stormwater management structures at residential and commercial developments. The complaint also alleged that the city failed to enforce requirements to prevent polluted stormwater from running off active construction sites.
The city has since taken significant steps to improve its stormwater management program. The proposed settlement requires the city to take additional actions, including developing standard operating procedures and increased staff training for critical elements of its stormwater management program. In addition, under the settlement the city will capture the volume of stormwater that was required to be captured under the city’s NPDES permit using an innovative approach that identifies capacity needs and the appropriate locations for adding capacity on a watershed basis. The proposed settlement also requires the city to mitigate the damage to Fountain Creek and its tributaries through stream restoration projects. These projects could include habitat restoration, channel restoration, constructed wetlands and similar projects intended to reduce stormwater pollutants entering Fountain Creek or its tributaries. The city will spend a total of $11 million on this mitigation. Finally, the City of Colorado Springs will pay a $1 million federal civil penalty. In lieu of paying a civil penalty to the state, the city will perform state-approved supplemental environmental projects valued at $1 million that will improve water quality in the Arkansas River, into which Fountain Creek flows south of the city.
“It is important to maintain the integrity of the Clean Water Act’s storm water program requirements,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Through this settlement the City of Colorado Springs will ensure that the citizens of the City of Colorado Springs have a clean and safe storm water program and that downstream communities will be protected.”
“The EPA appreciates the hard work and cooperation from all the parties, including the City of Colorado Springs, to reach this comprehensive agreement that will avoid further litigation and hasten the actions needed to improve water quality in Fountain Creek and its tributaries,” said EPA Assistant Administrator Susan Bodine for the Office of Enforcement and Compliance Assurance. “This innovative settlement, developed through creative problem solving by engineers and scientists with the EPA, the state and the city, will provide the city with the flexibility it needs to attack the problems that have plagued its storm sewer system for two decades in a way that minimizes the burden on its rate payers.”
The City of Colorado Springs’ storm sewer system serves a population of more than 460,000 people and comprises approximately 250 miles of storm water ditches and channels, with more than 690 major outfalls, throughout the City of Colorado Springs. The City of Colorado Springs’ storm sewer system discharges to Monument Creek, Fountain Creek, Camp Creek, Cheyenne Creek, Shooks Run, and other waters within the Arkansas River watershed. The EPA and the Colorado Department of Public Health and the Environment, working in partnership, discovered the violations through inspections and follow up investigations of the City of Colorado Springs’ storm sewer program.
Stormwater pollution from municipal storm sewers can be a major contributor to poor water quality in receiving waters. Sediment from stormwater can degrade the quality of water for drinking, wildlife, and the aquatic and riparian ecosystems. Other pollutants, such as oil and grease, heavy metals, pesticides, fertilizers, and bacteria, also can be entrained in stormwater and discharged by municipal storm sewers into receiving waters, where they degrade water quality.
The proposed settlement, lodged today in the U.S. District Court for the District of Colorado, is subject to a 30-day public comment period and final court approval.
For more information on the settlement and for information on how to submit a comment, visit https://www.justice.gov/enrd/consent-decrees.
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.
Colombian National Pleads Guilty to $109 Million Medicare Fraud SchemeRead the Press Release
BOSTON – A Colombian national residing in Lighthouse Beach, Fla., pleaded guilty today in federal court in Boston in connection with submitting more than $109 million in false and fraudulent claims for durable medical equipment (DME) such as arm, back, knee and shoulder braces.
Juan Camilo Perez Buitrago, 31, pleaded guilty to one count of health care fraud and one count of payment of kickbacks in connection with a federal health care program. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for March 4, 2021.
Perez manufactured and submitted false and fraudulent Medicare claims by instructing his employees to establish shell companies in more than a dozen different states, including Massachusetts. Perez directed employees to list his mother, wife and yacht captain as corporate directors and to use fictitious names when registering the shell companies as DME providers. Perez allegedly purchased Medicare patient data from foreign and domestic call centers that targeted elderly patients, and instructed call centers to contact the Medicare beneficiaries with an offer of ankle, arm, back, knee, and/or shoulder braces “at little to no cost.” He then submitted Medicare claims for those patients without obtaining a prescriber’s order to ensure that the braces were medically necessary. Perez submitted blatantly fraudulent claims, including claims for deceased patients and repeat claims for the same patient and the same DME. Perez failed to provide any DME for more than $7.5 million in claims. When Perez did provide DME to patients, he typically billed insurance policies more than 12 times the average price of the DME that he provided to the patient.
In total, Perez submitted $109 million in Medicare claims and collected more than $12 million.
Four of Perez’s associates have also agreed to plead guilty to their role in the Medicare scheme. On Oct. 2, 2020 Nathan LaParl, 34, of Boca Raton, Fla., and Talia Alexandre, 30, of Palm Springs, Fla., were charged with receiving kickbacks in connection with a federal health care program. LaParl and Stefanie Hirsch, 51, of Los Angeles, Calif., were also charged with violating the HIPAA statute and have agreed to plead guilty. On Sept. 29, 2020, Jessica Jones, 30, of Louisville Colo., and Elizabeth Putulin, 30, of Coconut Creek, Fla., were charged with conspiracy to commit health care fraud and have agreed to plead guilty.
The charges of health care fraud and payment of kickbacks in connection with a federal health care program each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorneys Elysa Q. Wan of Lelling’s Health Care Fraud Unit and Carol Head of Lelling’s Asset Recovery Unit are prosecuting the case.
Citizen of Honduras with Multiple Drunk Driving Convictions Sentenced for Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORGE ALBERTO RODRIGUEZ RODRIGUEZ, 33, a citizen of Honduras last residing in Stamford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 18 months of imprisonment for illegally reentering the U.S.
According to court documents and statements made in court, on February 20, 2010, Rodriguez Rodriguez was arrested in Stamford on a charge of operating under the influence. He was subsequently arrested in Westport for failure to appear. Rodriguez Rodriguez was convicted in Stamford Superior Court of operating under the influence and sentenced to four months of incarceration.
On August 30, 2010, Rodriguez Rodriguez was released from state custody and was served with a Notice to Appear by Immigration and Customs Enforcement (ICE) based on a charge that he entered the U.S without documentation. While released on bond and awaiting his immigration hearing, Rodriguez Rodriguez was arrested in Stamford on a charge of operating under the influence. He was convicted of the offense and sentenced to one year of incarceration, suspended after 150 days. On June 13, 2011, he was removed from the U.S. following service of his state sentence.
On December 18, 2018, Rodriguez Rodriguez was arrested by Stamford Police on a charge of operating under the influence and evading injury/property damage. A biometric fingerprint match subsequently confirmed Rodriguez Rodriguez’s unlawful reentry into the U.S. He has been detained in state custody since July 28, 2019, when he was arrested by Stamford Police on a charge of failure to appear. He was convicted of these offenses and, on September 26, 2019, was sentenced in state court to three years of incarceration, suspended after one year, and three years of probation.
On February 25, 2020, he pleaded guilty in federal court to unlawful reentry of a removed alien.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chinese Energy Company, U.S. Oil & Gas Affiliate and Chinese National Indicted for Theft of Trade SecretsRead the Press Release
A federal grand jury has returned an indictment alleging corporate entities conspired to steal technology from a Houston-area oil & gas manufacturer, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General John C. Demers of the Department of Justice’s National Security Division.
Jason Energy Technologies Co. (JET) in Yantai, People’s Republic of China; Jason Oil and Gas Equipment LLC (JOG) USA and Chinese national Lei Gao aka Jason Gao, 45, are charged with conspiracy, theft of trade secrets and attempted theft of trade secrets.
Gao previously resided in Houston but is now believed to be in China. A warrant remains outstanding for his arrest.
Also charged in relation to the case is Robert Erford Jr., 41, Dayton, who worked for a Houston-area company. He previously pleaded guilty to conspiracy to commit trade secrets.
On or about Nov. 7, 2019, Gao allegedly met with Erford at the JOG offices located in Houston. According to the indictment, Erford signed a consultancy agreement that Gao provided at that time, indicating Erford would work in China as a consultant to assist JOG in coiled tubing technology. Erford was to be $1,000 each day of a 15-day visit, according to the charges.
This agreement allegedly also included a confidentiality provision.
At that meeting, Erford was also provided a letter from the JET general manager inviting him to visit in order to have a technical exchange and discussion, according to the charges. That letter allegedly indicated a goal of helping to promote the company’s manufacturing efficiency, reduce machine failure and increase production capacity.
Without authorization, on or about Nov. 22, 2019, Erford allegedly transferred a victim company document that contained a trade secret from the United States to the China for JET’s benefit. The indictment further alleges that from approximately Nov. 25-29, 2019, Erford held meetings with Gao and JET officials at JET’s offices in China and its coiled tubing facilities. At those meetings, they allegedly discussed coiled tubing technology, including victim company proprietary technology, practices and procedures.
The charges also allege authorities obtained evidence that Erford and Gao used encrypted messaging app WeChat in December 2019 to obtain, collect and copy victim company manufacturing information.
The corporate entities could be fined up to $5 million or three times the value of the stolen trade secret, whichever is greater. Gao faces the same potential fine as well as a possible prison sentence of up to 10 years.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre of the Southern District of Texas are prosecuting the case along with Trial Attorney William Mackie from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charlotte Man Is Sentenced to Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Brian Elliott Kursonis, 59, of Charlotte, to 360 months in prison and a lifetime of supervised release for production of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Kursonis to register as a sex offender after he is released from prison.
Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), joins U.S. Attorney Murray in making today’s announcement.
According to documents filed in the case and statements made in court, beginning as early as 2008, Kursonis repeatedly sexually abused two minor victims, and produced images and videos depicting the abuse. Kursonis’ conduct came to the attention of law enforcement when a witness discovered the child pornography on Kursonis’ computer. Over the course of the investigation, law enforcement also located numerous images of child pornography on Kursonis’ seized computer and other electronic devices. On July 20, 2020, Kursonis pleaded guilty to production of child pornography.
In making today’s announcement U.S. Attorney Murray thanked CMPD for their investigation which led to Kursonis’ lengthy sentence.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charleston Man Sentenced to Five Years in Federal Prison for Drug CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Levi Kennith Carter, 31, of Charleston, was sentenced to five years in federal prison pursuant to his previous guilty pleas to two counts of distribution of heroin, fentanyl, and methamphetamine, and one count of distribution of methamphetamine. Following his release from prison, Carter will serve three years of supervised release.
“31 years old and this is Carter’s third federal drug conviction,” said United States Attorney Mike Stuart. “Maybe “three’s a charm” but if not, we’ll make it a fourth.”
Carter previously admitted that on February 28, 2020, and March 3, 2020, he met with a confidential informant working with the Charleston Police Department at an apartment complex on Renaissance Circle in Charleston. On each occasion, he sold the informant a mixture of heroin, fentanyl, and methamphetamine. Carter admitted that he again met with a confidential informant working with the Charleston Police Department on March 5, 2020, also at the same apartment complex, and sold the informant a quantity of methamphetamine. Each transaction was monitored by law enforcement officers.
Carter has two prior federal convictions in the Southern District of West Virginia for felony offenses tied to drug dealing activity, making this his third conviction. On October 12, 2010, he was convicted of aiding and abetting the possession with intent to deliver crack cocaine, and on October 2, 2015, he was convicted of distribution of heroin.
The Charleston Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00073.
Follow us on Twitter: SDWVNews and USAttyStuart
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Catonsville Man Sentenced to 24 Years in Federal Prison for Sexual Exploitation of Children and CyberstalkingRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Bilal Mohammad Siddiqui, age 23, of Catonsville, Maryland, to 24 years in federal prison, followed by lifetime supervised release, for the federal charges of sexual exploitation of children and cyberstalking.
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 Chief Melissa R. Hyatt of the Baltimore County Police Department.
“The facts of this case are disturbing and demonstrate how a sexual predator uses the Internet to victimize innocent children,” said U.S. Attorney Robert K. Hur. “Our community is safer now that Bilal Siddiqui will serve 24 years in federal prison, where there is no parole—ever. I hope all parents will discuss this case with their children so that they will think twice before communicating with a stranger through the Internet. Law enforcement will continue to work to identify and prosecute those who would harm our children.”
“Bilal Siddiqui exploited and humiliated numerous children, some even as young as eight years old,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “With nothing more than a computer and a few keystrokes, modern predators, like Siddiqui, have a limitless number of victims at their fingertips. We remain vigilant in continuing efforts to identify and hold accountable these offenders, but we also need the community to discuss the reality of online predators with children and report any suspected offenses to law enforcement.”
According to his guilty plea, between April 2017 and August 2018, Siddiqui used the Internet-based communication services LiveMe, Snapchat, Kik, and FaceTime to coerce at least six minor females, ages 8 to 14, into creating and sending him sexually explicit images and videos of themselves. Siddiqui also attempted to sexually extort one of those victims, a sixth-grader. When she refused to produce additional sexually explicit videos of herself, he sent images and videos that she had previously shared with him to her sixth-grade classmates and friends.
Prior to September 2017, Siddiqui created a fake account on LiveMe, a mobile application that allowed users to stream live video over the Internet and simultaneously chat with viewers, using an anonymous username and a photograph of a young boy as his profile picture, so that other users would not realize he was an adult male. One of the users misled by Siddiqui was Jane Doe 1, an 8-year-old girl.
On September 28, 2017, Jane Doe 1 was using LiveMe to broadcast a video of herself exercising in her pajamas. Siddiqui was among several LiveMe users watching the broadcast. When a number of those viewers asked Jane Doe 1 to show them her underwear, she refused, and eventually terminated the broadcast. Not long after, however, Jane Doe 1 began streaming a new LiveMe broadcast, and a number of viewers from her earlier broadcast—including Siddiqui—followed her to the new broadcast. During the new broadcast, Jane Doe 1 told her viewers that she was 13 years old. Again, they enticed her to undress and expose herself. While she initially refused their requests, Jane Doe 1 eventually did give in to the requests of Siddiqui and other viewers, undressing and exposing her genitals to the camera.
Toward the end of Jane Doe 1’s broadcast, Siddiqui persuaded her to end her live stream and to contact him privately. They communicated via FaceTime, and during these video chats, Jane Doe 1 again told Siddiqui that she was 13 years old. He nonetheless instructed her to remove her shirt, pants, and underwear, then instructed Jane Doe 1 to use a marker to write his first name on her skin next to her genitalia. He also instructed her to send him sexually explicit pictures of herself via text message. She complied with his instruction and sent Siddiqui at least one picture of herself.
Viewers of Jane Doe 1’s LiveMe broadcast reported the sexually explicit requests and conduct described above to the National Center for Missing and Exploited Children. Law enforcement identified Siddiqui as the person who persuaded Jane Doe 1 to chat privately and obtained a search warrant for his residence. On September 5, 2018, officers executed the search warrant and located the cellphone that Siddiqui used to communicate with Jane Doe 1.
Siddiqui was present during the search, waived his Miranda rights, and voluntarily agreed to be interviewed by law enforcement. He admitted that the phone was his, that it was passcode-protected, that he had used LiveMe on the phone, and that he created the fake LiveMe profile using a photograph of a former classmate to disguise his identity. He admitted that he used his fake LiveMe account to communicate with Jane Doe 1, and later admitted—after initially denying—that he communicated privately with Jane Doe 1 through FaceTime, including instructing her to send him sexually explicit images of herself via text message, and that he believed Jane Doe 1 was 13 years old.
While Siddiqui was being interviewed, law enforcement conducted an on-scene forensic review of the phone and discovered evidence that he had also sexually exploited Jane Doe 2, a 9-year-old female. Siddiqui told law enforcement that he began communicating with Jane Doe 2 in August 2018 using Snapchat, and continued to do so as recently as September 3, 2018—two days before the execution of the search warrant. Siddiqui also admitted that he created videos of Jane Doe 2, and estimated that there were 10 videos of Jane Doe 2 engaging in sexually explicit conduct saved on his phone. Siddiqui advised that he captured the videos by using his phone’s screen recording function, and that he believed Jane Doe 2 was 11 or 12 years old.
During the interview Siddiqui advised law enforcement that he had engaged in similar conduct with between 10 and 50 girls using mobile applications. Siddiqui stated that he caused minor females to engage in sexually explicit conduct on video and that he derived sexual gratification from it.
Following Siddiqui’s interview, law enforcement obtained records associated with online accounts controlled and used by Siddiqui. Those records showed that Siddiqui had coerced Jane Doe 4, an 11-year-old sixth-grader, into producing and sending him a nude image and nude videos of herself. Siddiqui began communicating with Jane Doe 4 on September 15, 2017, and told her that he was 15 years old and lived in her town. Within days, he had convinced Jane Doe 4 that they were in a relationship, and she revealed the name of the middle school that she was attending.
On October 4, 2017, Siddiqui began demanding that Jane Doe 4 send him sexually explicit images, and threatened to send one of the videos of Jane Doe 4 to her classmates, friends, and family if she did not produce and send further videos of herself engaging in sexually explicit conduct. Siddiqui specifically told Jane Doe 4, “Don’t play games with me .... I’ll expose u [right now] and ruin your life.” Jane Doe 4 begged him not to follow through on his threats and sent him additional explicit videos. After she sent the videos, Siddiqui told Jane Doe 4 that it was “too late” because he had already sent them to her friends.
On October 7, 2017, Jane Doe 4 tried to end her relationship with Siddiqui through a conversation on Snapchat. Siddiqui reacted by demanding that she immediately produce videos of herself engaging in sexually explicit conduct. After she refused, Siddiqui sent one sexually explicit image and two sexually explicit videos of Jane Doe 4 to two unidentified Snapchat users. On October 12, 2017, a classmate of Jane Doe 4 alerted her middle school guidance counselor that images of Jane Doe 4 were being circulated. School administrators conducted a brief investigation to ensure the images had been deleted but did not contact law enforcement.
Electronic evidence further revealed that, between April 2017 and September 2018, Siddiqui used Snapchat and Kik to entice three additional minors, an 11-year-old, a 12-year-old, and a 14-year-old, to produce and send him sexually explicit images and videos. In each instance, he lied about his real age to persuade these minors to send him such materials.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked the Baltimore County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Paul E. Budlow, who prosecuted the case.
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Carroll County Man Pleads Guilty to Federal Charges in Maryland for Sexually Exploiting a Young Girl to Produce Child Pornography and for Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – Shon Brian Beck, age 56, of Eldersburg, Maryland, pleaded guilty today to federal charges of production and receipt of child pornography.
The guilty plea 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 Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his guilty plea, in September 2001, Beck and his family traveled to Bethany Beach, Delaware, where they shared a condominium with two other families, including the victim’s family. Jane Doe, the victim, was six years old at the time. Beck admitted that he sneaked into the victim’s room and used a digital camera to produce eleven sexually explicit images of the victim.
As detailed in the plea agreement, in 2018, another victim reported that Beck had sexually abused her. The investigation led to the execution of a search warrant at Beck’s residence on March 22, 2019. Law enforcement seized Beck’s computer equipment and digital cameras. Beck’s digital devices were forensically examined. Investigators found the eleven sexually explicit images of Jane Doe, as well as more than 450 images and videos documenting the sexual abuse of minor victims, including prepubescent minors, many of which Beck had downloaded from the Internet.
Beck and the government have agreed that, if the Court accepts the plea agreement, Beck will be sentenced to 15 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 28, 2021, at 3:00 p.m.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and Maryland State Police for their work in the investigation and thanked the Carroll County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
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Burlington Woman Sentenced for Mailing Anthrax Threat to Sen. Susan CollinsRead the Press Release
BANGOR, Maine: A Burlington, Maine woman was sentenced in federal court in Bangor today for mailing a threatening communication to Sen. Susan Collins, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Suzanne Muscara, 38, to 30 months in federal prison, followed by three years of supervised release. On November 4, 2019, following a one-day trial, a jury convicted Muscara of mailing a threatening communication.
According to evidence presented at trial, Muscara mailed a letter containing a white powder to Collins’ Bangor address in October 2018. The letter also contained a handwritten note indicating that the powder was anthrax. The U.S. Postal Inspection Service intercepted the letter at a mail sorting facility in Hampden, Maine. The FBI tested the white powder and found that it did not contain toxic substances. The FBI also matched a fingerprint found on the envelope with one of Muscara’s prints. When interviewed, Muscara made clear that she sent the note because she was upset with Collins because of one of her votes.
“American politics is premised on free speech and vigorous debate,” U.S. Attorney, District of Maine, Halsey Frank said. “True threats are not protected speech. They are a crime. Anthrax is a deadly substance that has been used to kill and terrorize. There is nothing funny about it, and the jury in this case rejected the defendant’s claim that her letter was intended as a joke. My thanks to the federal, state and local investigators who worked together as a team to identify this defendant and bring her to justice.”
The FBI, the U.S. Postal Inspection Service, the Maine Office of State Fire Marshal, the Maine State Police and the Old Town Police Department investigated the case.
Bronx Man Charged in Connection with Arson of an NYPD Vehicle in ManhattanRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John B. DeVito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, the Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of SHAWN JENKINS in connection with his attempted arson of police vehicles in the Bronx, New York. JENKINS was arrested on October 28, 2020, and will be presented in the Manhattan federal court later today before U.S. Magistrate Ona T. Wang.
Acting U.S. Attorney Audrey Strauss stated: “Shawn Jenkins allegedly threw a glass bottle containing a lit wick with gas accelerant at an NYPD vehicle in the Bronx. Jenkins’s alleged actions – causing an adjacent vehicle to be damaged – are as reckless as they are misguided. There is never an acceptable time or situation to attempt to damage the property of law enforcement professionals who serve to protect the public, and this case is emblematic of our resolve to bring anyone who does so to justice.”
ATF Special Agent-in-Charge John B. DeVito said: “As alleged, Jenkins brazenly and deliberately fire-bombed a marked NYPD vehicle without regard for human life or property. The New York Arson and Explosives Task Force will be relentless in bringing to justice those who use fire as a weapon in order to ensure a safer community for all New Yorkers.”
NYPD Commissioner Dermot Shea said: “Peaceful assembly and speech are protected and valued by the NYPD. But the kind of violence alleged in this case endangers lives and threatens everyone’s constitutional right to peacefully protest and we commend our federal partners for bringing justice for acts society can never tolerate.”
NYFD Commissioner Daniel A. Nigro said: “Arson is a dangerous, potentially deadly act that needlessly puts lives in danger and destroys property. Any act of arson will be vigorously investigated by our Fire Marshals and their partners in law enforcement. Thanks to the excellent teamwork by our Bureau of Fire Investigation, the NYPD and the ATF, a suspect has been arrested for this senseless crime.”
According to the allegations in the Complaint[1]:
On June 1, 2020, at approximately 11:30 p.m., JENKINS approached two NYPD vehicles located in front of the NYPD 42nd Precinct in the Bronx, New York. JENKINS threw a glass bottle containing a wick that was lit with a gas accelerant at the NYPD vehicles. The incendiary device hit the ground short of its intended target and spread a fire, damaging an adjoining vehicle, which is privately owned by an NYPD officer.
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JENKINS, 33, of the Bronx, New York, is charged with one count of attempted arson, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the Strategic Explosive and Arson Response Task Force of the ATF, the NYPD, and the FDNY.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mitzi Steiner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Boulder City Man Indicted for Assaulting Significant Other at Lake MeadRead the Press Release
LAS VEGAS, Nev. – A Boulder City resident made his initial appearance in federal court yesterday for allegedly assaulting his significant other at the Lake Mead National Recreation Area, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Michael David Thompson, 66, of Boulder City, is charged with one count of felony assault resulting in substantial bodily injury to a spouse or intimate partner. U.S. Magistrate Judge Nancy Koppe ordered Thompson to be detained in federal custody pending a jury trial scheduled to begin on December 1, 2020.
“There is no place whatsoever in our communities for violence against a spouse or intimate partner,” said U.S. Attorney Trutanich. “Following the launch of Project Veronica, our office has been making a renewed push to hold domestic violence offenders accountable — particularly during the pandemic, when many victims are isolated with abusers.”
According to court documents, in September 2020, at the Boulder Beach Campground within the Lake Mead National Recreation Area, Thompson allegedly struck the victim and placed his hands around her neck, causing her to yell and state “he is going to kill me.” The victim’s nose and orbital bone around an eye were fractured. National Park Service Rangers responded and observed facial bruising, two black eyes, lacerations to both lips, and additional bruising on the victim’s body.
Thompson faces a statutory maximum sentence of five years in prison and a $250,000 fine. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the National Park Service.
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Boston Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Boston man was sentenced yesterday for the October 2019 robberies of the TD Bank in Worcester and the East Boston Savings Bank in Revere.
Samuel Jose Baptista, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 months in prison and two years of supervised release. Judge Hillman also ordered Baptista to forfeit the money found on him after the second robbery and ordered restitution for the remaining amount stolen from the banks.
In February 2020, Baptista pleaded guilty to two counts of bank robbery.
On Oct. 20, 2019, Baptista entered a branch of TD Bank in Worcester and informed the tellers, “this is a robbery” and demanded $10,000 in cash. Baptista told the tellers that he had a bomb in his backpack and that they had five minutes to get the cash before Baptista would detonate the bomb.
On Oct. 26, 2019, Baptista entered a branch of the East Boston Savings Bank in Revere and passed to the teller a withdrawal slip, on which he wrote“10/21/19” and “$10,000.” Baptista then told the teller “this is a robbery,” that he wanted $20,000, and that he had a bomb in his backpack. After receiving money, Baptista fled the bank in a lime green taxicab.
Witnesses from the bank reported to police the license plate and color of the taxicab. Shortly thereafter, local law enforcement found the taxicab parked in the Northgate Shopping Center, and the taxi driver informed police that Baptista had entered a store in the shopping center. Police found and arrested Baptista with the money from the East Boston Savings Bank on him.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester Police Chief Steven M. Sargent; and Revere Police Chief David Callahan made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office prosecuted the case.
Boston Man Charged with Distributing Crack CocaineRead the Press Release
BOSTON – A Boston man who is allegedly a member of the St. James/Marcella gang was arrested today and charged in federal court in Boston with distributing crack cocaine.
Anthony Jackson, a/k/a “Hollywood,” 29, was charged with distribution and possession with intent to distribute cocaine base. Jackson made an initial appearance in federal court via videoconference this afternoon, and was detained pending a detention hearing on Nov. 5, 2020.
According to court documents, between Sept. 1, 2020 and Oct. 3, 2020, Jackson distributed crack cocaine to a cooperating witness on five occasions in Cambridge and Boston.
As alleged in the charging documents, Jackson has state convictions for unlawfully carrying a dangerous weapon, carrying a loaded firearm and possession of illegal substances.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to a lifetime of supervised release and a fine of up to $1 million. 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. Lelling’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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.
Berks County Woman Sentenced for Bank EmbezzlementRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Morgan Herrera, age 29, of Robesonia, Pennsylvania, was sentenced on October 29, 2020 to six months’ imprisonment followed by two years of supervised release (which includes six months of home detention) by U.S. District Court Judge Sylvia H. Rambo, for embezzling over $80,000 from S&T Bank. Judge Rambo also ordered Herrera to pay $80,011 in restitution.
According to United States Attorney David J. Freed, between February 2016 and June 2017, while Herrera was employed as a personal banker at an S&T Bank location in Harrisburg, she stole over $80,000 while opening multiple accounts for certificates of deposit.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Beltsville Condo Owner Sentenced to More Than Two Years in Federal Prison for Managing a Drug-Involved PremisesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Wayne Deo Ramsaran, age 46, of Jessup, Maryland, to time served of 29 months in prison, followed by three years of supervised release, for managing a drug-involved premises. Ramsaran must also forfeit all rights and interests to the condominium.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to Ramsaran’s plea agreement, from October 2016 through at least February 2018, Ramsaran owned a condominium in the 11000 block of Cherry Hill Road in Beltsville, Maryland. Ramsaran did not reside at the residence but rented rooms and charged daily and/or monthly rent to other individuals, including Kenneth Wayne Hart, whom Ramsaran knew manufactured and sold narcotics at the location. The narcotics trafficking funded and fueled Hart’s sex trafficking operations within the drug-involved premises and at other locations in Maryland and elsewhere.
Ramsaran admitted that during this time, he visited the drug-involved premises several times a week, and sometimes daily, to obtain rent from tenants either in cash or quantities of narcotics—usually crack cocaine. Ramsaran also visited the drug-involved premises to use narcotics—at first heroin and then later crack cocaine—with other residents. When he went inside the drug-involved premises, Ramsaran admitted that he knew that the tenants used, sold, and manufactured narcotics, including powder and crack cocaine, heroin, marijuana, and prescription pills, in his condominium. Narcotics customers visited the premises every day, at all hours of the day.
Search warrants executed by law enforcement on April 21, 2017 and February 28, 2018, revealed and confirmed the ongoing manufacturing, storing, distribution, and use of controlled substances at the drug-involved premises, with law enforcement recovering quantities of heroin, crack cocaine, Xanax, amphetamine, and drug paraphernalia, including two water bongs, digital scales, cellular telephones, crack pipes and stems, and hypodermic needles.
It was foreseeable to Ramsaran that the tenants of the drug-involved premises distributed at least 525 grams of cocaine and 700 grams of heroin to their customers.
On October 7, 2020, Kenneth Wayne Hart, a/k/a Redds, Wayne Hawkins, Hawk, Big Daddy, Billy Reds, and Bill Red Hart, age 59, of Beltsville, Maryland, was sentenced to 25 years in federal prison on federal charges of conspiracy to distribute and possess with intent to distribute narcotics; a sex trafficking conspiracy; two counts of sex trafficking by force, fraud, and coercion; and witness tampering. Hart was convicted of those charges on March 12, 2020, after a seven-day jury trial.
United States Attorney Robert K. Hur praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer R. Sykes and Daniel C. Gardner, who prosecuted the case.
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Bank Robber Charged After DNA, Fingerprint MatchesRead the Press Release
A Midland man tied to bank robberies in Lubbock, Odessa, and Abilene has been federally charged, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kenneth Hoyd Seabourne, 57, was arrested on Oct. 20 and charged via criminal complaint with one count of bank robbery. He made his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr. Thursday morning.
According to a criminal complaint unsealed today, on Sept. 3, an unidentified man entered Prosperity Bank in Odessa demanding money. The man – clad in a tie, white button up, pants, tennis shoes, sunglasses, rubber gloves, and a PPE mask – passed a teller a note that red, “All $ in Bag! I am armed. No Dye Packs no Bait $,” then fled the scene with several thousand dollars currency.
Responding officers from the Odessa Police Department later observed a man matching the suspect’s description discarding rubber gloves and clothing on the roadway. They recovered the items and sent them to the Texas Department of Public Safety Crime Laboratory, which retrieved genetic material. The DPS Crime Lab then sent the recovered DNA sequence to the FBI, which ran it through its DNA indexing system, CODIS, and allegedly matched it to DNA on file for Mr. Seabourne.
Meanwhile, just 26 days after the first robbery, a similar unidentified male entered the First Abilene Federal Credit Union, where he passed a similar note to the teller. He then reached into his shirt, grabbed what appeared to be a gun, pointed it at the teller, and threatened to kill if he didn’t get money. Before fleeing the scene in a white Ford Explorer, he demanded the note back.
Sixteen days after that, the same man entered People’s Bank in Lubbock and passed a similar note to the teller there. He once again fled that scene in a similar white Ford Explorer, leaving the note behind.
Forensic investigators from the Lubbock Police Department recovered a fingerprints off the note, which match fingerprints on file for Mr. Seabourne. Investigators also identified a white Ford Explorer registered in Mr. Seabourne’s name.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Seaborne is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Lubbock Field Office, Texas Department of Public Safety, the Lubbock Police Department, the Odessa Police Department, the Abilene Police Department, and the U.S. Marshal’s Service conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Bank Employee Arrested, Three Other Individuals Admit Guilt, in $8 Million Bank Fraud and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested and three co-defendants pleaded guilty today in connection with a conspiracy to commit bank fraud and bank bribery, U.S. Attorney Craig Carpenito announced.
Kurt Phelps, 52, of Flanders, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud and one count of bank bribery. He made his initial appearance by videoconference today before U.S. Magistrate Judge Mark Falk and was released on $100,000 unsecured bond.
Three co-defendants pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to their respective roles in the scheme: Douglas Arbolino, 59, of Central Valley, New York, and Gary Swenson, 59, of Hardyston, New Jersey, each pleaded guilty to informations charging them with one count of conspiracy to commit bank fraud and one count of bribery of a bank official; and John Scott Brink, 59, of Jackson, New Jersey, pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From 2013 through 2019, Phelps, Arbolino, Swenson, and Brink, conspired to defraud Victim Bank-1, Phelps’s employer. The defendants obtained millions of dollars of credit from Victim Bank-1 for Starnet Business Solutions Inc. (Starnet), a now-defunct New Jersey-based printing company where Arbolino, Swenson, and Brink worked. Arbolino, Swenson, and Brink paid Phelps large cash bribes in connection with the fraud scheme
In 2013, Starnet provided materially false financial information to Victim Bank-1 and received a line of credit. Brink sent Victim Bank-1 inflated accounts receivable information, and Arbolino and Swenson provided other materially false financial information, such as semi-annual financial reports. Victim Bank-1 not only allowed Starnet to maintain the line of credit, it increased the credit available at various times. By 2018, the line of credit available to Starnet was worth approximately $8 million, and Starnet has not repaid it.
Phelps was aware that financial information Starnet provided to Victim Bank-1 was materially false. Phelps coached Starnet on how to defraud Victim Bank-1. Phelps would review draft financial information for Starnet and provide feedback on how his conspirators should falsify the information before submitting it. Phelps also worked to ensure that Victim Bank-1 did not detect the fraud scheme by helping Starnet avoid audits and other quality control measures employed by Victim Bank-1.
Phelps solicited large cash bribes – tens of thousands of dollars at a time – from Starnet in connection with the fraud scheme. Arbolino, Swenson, and Brink pooled cash to pay Phelps bribe payments, which were hand-delivered, and totaled hundreds of thousands of dollars.
The conspiracy to commit bank fraud, bribery of a bank official, and bank bribery charges each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s arrest and guilty pleas.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
The charges and allegations in the complaint against Phelps are merely accusations, and he is presumed innocent unless and until proven guilty.
Baltimore Man Sentenced to 12 Years in Federal Prison for Distributing Fentanyl, Heroin, and Fentanyl Analogues and for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Brian Lockett, age 48, of Baltimore, Maryland, today to 12 years in federal prison, followed by five years of supervised release, for the federal charges of possession with intent to distribute 100 grams or more of a fentanyl analogue, 40 grams or more of fentanyl, and 100 grams of more of heroin, and to possession of a stolen firearm. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly. Lockett was charged in federal court as part of a federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; and State’s Attorney for Baltimore City Marilyn Mosby.
“Just 2 milligrams of fentanyl—which is 50 to100 times stronger than morphine—can kill you,” said U.S. Attorney Robert K. Hur. “State and federal law enforcement and prosecutors in Baltimore City are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and bring gun violence to our neighborhoods. Armed drug dealers who sell fentanyl, like Mr. Lockett, face federal time, where there are no suspended sentences and no parole—ever. We will continue to get guns off of our streets and reduce the supply of fentanyl and related substances that are causing so many tragic overdoses.”
According to his guilty plea, on May 24, 2018, law enforcement executed a search warrant at Lockett’s residence in the 1500 block of East Preston Street. Some of the agents knocked on the front door to announce their entry to execute the warrant. As they did so, Lockett and another individual were caught going out the rear door of the home in an attempt to get away.
From Lockett’s basement bedroom, law enforcement recovered approximately 1,644 gelcaps, which laboratory analysis found contained acetylfentanyl, fentanyl, or heroin, as well as smaller quantities of small ziplocks containing suspected cocaine. From under the mattress, agents recovered a 9mm handgun and a magazine for that weapon, loaded with 15 9mm cartridges. Also in the basement were bottles labeled as quinine and several bags of white and brown powdered substances, believed to be drugs and drug cutting agents. One of the bags was found to contain approximately 182.52 grams of a mixture of acetylfentanyl, fentanyl, and heroin. Agents also recovered cash, a cellular phone, and other supplies used in the packaging for drugs for street-level sale. The gun recovered from Lockett’s bedroom was found to be stolen.
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.
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; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Jeffrey M. Hann, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
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Albuquerque man pleads guilty to firearms chargeRead the Press Release
ALBUQUERQUE, N.M. – Nicholous Phillips, 41, of Albuquerque, pleaded guilty in federal court on Oct. 27 to being a felon in possession of a firearm and ammunition.
In the plea agreement, Phillips admitted that on Nov. 15, 2019, he was in possession of ammunition, 561.73 grams of methamphetamine and two partially destroyed pieces of a Glock handgun. Prior to this offense, Phillips had been convicted of eight felonies. As a convicted felon, Phillips cannot legally possess a firearm or ammunition. Phillips possessed these items at his home when probation officers inspected the location as part of his supervision following a previous conviction.
By the terms of the plea agreement, Phillips faces 15 years in prison and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorney Jaymie Roybal is prosecuting the case.
Acting United States Attorney Bubar Announces over $3.4 Million in Justice Department Grants to Combat Addiction Crisis in Western DistrictRead the Press Release
ROANOKE, Va. – Acting United States Attorney Daniel P. Bubar today announced awards of more than $3.4 million in Department of Justice grants to fight drug abuse and addiction in the Western District of Virginia. The grants were awarded by the Department’s Office of Justice Programs (OJP) and are part of more than $341 million going to communities nationwide.
“The addiction crisis has taken an enormous toll on America’s families and communities, eroding public health, threatening public safety and claiming tens of thousands of lives year after year,” said Attorney General William P. Barr. “Through comprehensive measures taken by this administration, we have been able to curtail the opioid epidemic, but new and powerful drugs are presenting exceptional challenges that we must be prepared to meet. The Justice Department’s substantial investments in enforcement, response, and treatment will help us overcome these challenges and work towards freeing Americans from abuse and addiction.”
Illegal drugs and illicit drug use have claimed the lives of nearly 400,000 Americans since the turn of the century. Powerful synthetic opioids like fentanyl are exacting an enormous toll on families and communities, and an emergence in the use of methamphetamines and other psychostimulants is drawing drug traffickers and driving up overdose rates. Three years ago, President Trump declared a Public Health Emergency and initiated a whole-of-government approach dedicated to ending this national tragedy. The Department of Justice has invested unprecedented levels of funding in combating the addiction crisis. The awards announced today build on those earlier investments.
“If we hope to defeat an enemy as powerful, persistent and adaptable as illicit drugs, we must be at least as determined and versatile, focusing our ingenuity and resources on curbing abuse and fighting addiction,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will enable criminal justice officials and substance abuse, mental health and other medical professionals to pool their assets and bring the full weight of our public safety and treatment systems down on this epidemic that has already caused so much harm.”
“The crisis of addiction—particularly caused by opioids—has effected Virginians of all walks of life. Addiction doesn’t care about race, religion, socioeconomic status, or age,” Acting U.S. Attorney Bubar said today. “This grant money will ensure that those groups providing recovery services for the brave men and women fighting addiction will have the funds they need to continue that fight.”
Funding is made available through OJP’s Bureau of Justice Assistance, National Institute of Justice, Office for Victims of Crime and Office of Juvenile Justice and Delinquency Prevention.
The following organizations received funding:
- Augusta County $600,000
- Page County $500,000
- Smyth County Board of Supervisors $499,776
- Fluvanna County $499,876
- City of Charlottesville $827,973
- Total Action Against Poverty in the Roanoke Valley $474,820
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
19 Defendants Charged in Manhattan Federal Court for Multimillion-Dollar Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Kathy A. Michalko, Special Agent in Charge of the New York Field Office of the United States Secret Service (“Secret Service”), Phillip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and New York Police Department Commissioner Dermot Shea, announced the unsealing today of a criminal Indictment and Complaint charging 19 defendants with conspiracy to steal government funds, conspiracy to commit bank fraud, and aggravated identity theft. Twelve defendants were arrested yesterday and today in the Southern and Western Districts of New York and Northern District of Georgia, and were to be presented yesterday and today in those districts’ federal courts. Seven defendants remain at large.
Acting U.S. Attorney Audrey Strauss said: “As alleged, these defendants engaged in schemes to steal millions of dollars by cashing fraudulent checks and stolen postal money orders, falsifying their identities, and taking advantage of multiple national financial institutions. They must be held accountable for their brazen conduct.”
USSS Special Agent-in-Charge Kathy A. Michalko said: “The success of this case is the result of the partnerships between the New York City Police Department, the U.S. Postal Inspection Service and the U.S. Secret Service. The ability to leverage our combined expertise to detect, identify, and disrupt organized groups is vital to protect the integrity of our financial system.”
USPIS Chief Postal Inspector Phillip R. Bartlett said: “The accused allegedly participated in an unsophisticated, low-tech crime, involving the deposit of stolen checks and postal money orders into bank accounts they controlled. They engaged in this criminal enterprise to allegedly rip-off the government and unsuspecting financial institutions across the country. Gangs like these are opportunists and use any means to lie and steal for profit. Although the alleged crimes occurred months ago, Postal Inspectors and their law enforcement partners have put an end to their thieving evil ways and their day of reckoning has finally arrived.”
NYPD Commissioner Dermot Shea said: “As the kind of crime alleged in this indictment moves into new frontiers of identity theft and financial fraud, the NYPD remains vigilant to stop it. I commend our federal partners and the United States Attorney’s Office for the Southern District of New York for leading us to justice in this case.”
According to the allegations contained in the Indictment and Complaint:[1]
From January 2019 up to an including the present, defendants AHMAD AKBAR, a/k/a “Meech,” TYRELL BEECHER, a/k/a “Shae,” CHRISTOPHER BOVAIN, a/k/a “Cleko,” WINNIS BRITO, a/k/a “Flaco,” DARNELL GREEN, a/k/a “Nellz,” DOMINIQUE GREEN, a/k/a “Domo,” MAURICE HARGROW, a/k/a “Moe Tally,” CHARLES HEWITT, a/k/a “Young Cee,” KEVIN LEWIS, a/k/a “Mula,” JAMA MOHAMOUD, a/k/a “JFK Jay,” JAVIAN MOORE, a/k/a “Julio,” JORDAN RUSSELL, a/k/a “J Rozay,” DEVON SMITH, GEORGE THOMPSON, LOUIS WILLIAMS, ISAIAH WISE FORDHAM, a/k/a “ZayBands,” and JAHNICO HARVEY conspired to defraud the United States by cashing postal money orders that had been stolen from post offices in Manhattan, the Bronx, Brooklyn, Queens, Long Island, New Jersey, and Arkansas. The postal money orders cashed by the members of the conspiracy originated from 18 post offices. In total, more than 15,000 postal money orders have been stolen from those 18 post offices. At a face value of up to $1,000 per postal money order, the theft results in a potential loss to the USPS of up to $15 million.
From at least in or around January 2018, up to and including the present, defendants TYRELL BEECHER, a/k/a “Shae,” CHRISTOPHER BOVAIN, a/k/a “Cleko,” WINNIS BRITO, a/k/a “Flaco,” DONTA DOUGLAS, DOMINIQUE GREEN, a/k/a “Domo,” MAURICE HARGROW, a/k/a “Moe Tally,” CHARLES HEWITT, a/k/a “Young Cee,” KEVIN LEWIS, a/k/a “Mula,” JAMA MOHAMOUD, a/k/a “JFK Jay,” JAVIAN MOORE, a/k/a “Julio,” JORDAN RUSSELL, a/k/a “J Rozay,” JONATHAN SHORTT, LOUIS WILLIAMS, ISAIAH WISE FORDHAM, a/k/a “ZayBands,” and JAHNICO HARVEY defrauded multiple national banks by recruiting collusive accountholders who allowed members of the conspiracy to deposit fraudulent checks into their bank accounts and by withdrawing money from the collusive bank accounts after banks made available funds associated with the fraudulent check deposits to the account, but before the banks discovered that the checks were fraudulent and would not clear.
All of the defendants charged in the bank fraud conspiracy, as well as AKBAR and SMITH, have also been charged with aggravated identity theft.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Emily A. Johnson, Kaylan E. Lasky, and Ashley C. Nicolas are in charge of the prosecution.
The charges contained in the indictment and complaint are merely an accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Wednesday 28 October 2020
Wetzel County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Nicholas D. Klem, of Proctor, West Virginia, has admitted to his role in a drug trafficking operation, U.S. Attorney Bill Powell announced.
Klem, age 29, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Klem admitted to working with others to distribute methamphetamine from August 2019 to August 2020 in Marshall County and elsewhere.
Klem 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 Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Van Zandt County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 41-year-old Wills Point, Texas man has been sentenced for federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Rickey James Howard pleaded guilty on Jan. 9, 2020, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 142 months in federal prison by U.S. District Judge Jeremy D. Kernodle on Oct. 27, 2020. Judge Kernodle also ordered an $8,000 money judgment against Howard.
According to information presented in court, on August 2, 2018, in Van Zandt County, Texas, a co-conspirator sold approximately 10.4 grams of methamphetamine during a controlled purchase, using methamphetamine that was stored in a residence Howard shared with the co-conspirator and that Howard knew was stored in the residence. On August 28, 2018, Howard possessed, at his residence in Van Zandt County, Texas, approximately 135 grams of a mixture or substance containing methamphetamine. He possessed the methamphetamine for the purpose of distribution to others.
Howard admitted that between January 2018 and September 2019, he was engaged in a conspiracy with others to obtain and distribute methamphetamine. He also admitted that he was directly responsible for the possession with intent to distribute at least 500 grams of methamphetamine. Howard also agreed to a money judgment forfeiture of $8,000, representing proceeds received by Howard from his offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
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United States Attorney Statement Related to November 2020 General ElectionRead the Press Release
United States Attorney Erica H. MacDonald today announced that Assistant United States Attorney (AUSA) Angela Munoz will lead local efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Munoz has been appointed to serve as the District Election Officer (DEO) for Minnesota and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Erica H. MacDonald said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney MacDonald stated that AUSA/DEO Munoz will be on duty in this District while the polls are open. She can be reached by the public at (612) 664-5776.
In addition, the FBI will have special agents available in each field office throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (763) 569-8000 or 1-800-CALLFBI.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney MacDonald said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Attorney Marc Krickbaum Announces Election Day ProgramRead the Press Release
DES MOINES, Iowa - United States Attorney Marc Krickbaum announced today that Assistant United States Attorney (AUSA) Virginia Bruner will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Bruner has been appointed to serve as the District Election Officer (DEO) for the Southern District of Iowa, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Krickbaum said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process. This is achieved by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Krickbaum stated that AUSA/DEO Bruner will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: 515-473-9300.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 515-223-4278 (Des Moines).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Krickbaum said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
Union County Man Charged with Additional Counts of Coercing and Enticing Victims for Purpose of ProstitutionRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Union County, New Jersey, man for allegedly persuading, inducing and enticing numerous female victims, usually commercial sex workers, to travel in interstate or foreign commerce to engage in prostitution and other sexual acts, often by use of force, violence and threats, U.S. Attorney Craig Carpenito announced.
Jose Torres, 43, of Elizabeth, New Jersey, was charged in a second superseding indictment with his fifth and sixth counts of coercing and enticing commercial sex workers, and will be arraigned on those counts on a date to be determined. Torres was originally charged by complaint in February 2020 with two counts of coercing and enticing commercial sex workers. On May 29, 2020, he was indicted on three counts, including a third count involving another victim. On July 31, 2020, he was indicted on a fourth count involving another victim.
According to the documents filed in this case and statements made in court:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from various out of state locations, including Canada, New York, and Pennsylvania, in order to engage in prostitution with him. In each instance, Torres lured a female victim to New Jersey with promises of large payments. In three of the previously charged instances, when the victim asked for payment, Torres became aggressive, often assaulting and raping victim. Torres never paid the women. The two recently charged counts involve allegations that in December and November of 2015, Torres lured Victim-5 and Victim-6, respectively, to travel from New York to New Jersey to engage in prostitution.
The coercion and enticement charge carries a maximum term of 20 years in prison and a fine of up to $250,000 fine for each count.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations against Torres are merely accusations, and he is presumed innocent unless and until proven guilty.
Union City, PA Man Indicted on Child Sex Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of Union City, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Joseph Edward Schwenk, 68, 61 Parade Street, Apt. 201, Union City, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, from January 2018 to May 2020, Schwenk received and possessed computer images depicting prepubescent minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U. S. Attorney Mike Stuart Honors Parkersburg Narcotics Task Force and OthersRead the Press Release
CHARLESTON, W.Va. – Yesterday United States Attorney Mike Stuart recognized the members of the Parkersburg Narcotics Task Force and officers with the Parkersburg Police Department for their outstanding work in partnership with his office.
“The caliber of law enforcement professionals in the Parkersburg area and throughout West Virginia is impressive,” said United States Attorney Mike Stuart. “While none of our Guardians of Justice work for the accolades, I’m honored to award their outstanding efforts and give them the recognition they truly deserve.”
The Parkersburg Narcotics Task Force received the U.S. Attorney’s Award for Drug and Violent Crime Task Force of the Year for their work in the multi-state investigation called Project Parkersburg. Project Parkersburg resulted in a major takedown, the dismantling of a major meth and heroin drug trafficking organization (DTO) and netted the largest meth bust in West Virginia history. In addition to the seizure of 150 pounds of meth, law enforcement also seized 217 grams of heroin, 478 grams of fentanyl and six kilos of cocaine during the investigation. Sixteen defendants were charged by federal indictment and all but two of those defendants have been sentenced. In December 2017, law enforcement executed a search warrant at a residence in Parkersburg during which they learned that large amounts of methamphetamine were being shipped to West Virginia from Mexico. Witness interviews, financial records, and informant information led to the identification of Parkersburg residents Terrance McGuirk, Antoine Terry, and Aurelius Edmonds as individuals with access to the methamphetamine being shipped from the southern border to locations in West Virginia and Ohio. Over several months, agents and task force officers conducted an exhaustive investigation linking the Parkersburg DTO to sources in Arizona. On September 19, 2018, surveillance led investigators to Dayton, Ohio where Terry and Edmonds met with Arizona residents Todd Land and Troy Pastorino to pick up a large shipment of controlled substances to include more than 150 pounds of methamphetamine that had been offloaded from a truck into a rented storage unit. Investigators observed Pastorino load the drugs into the trunk of a Dodge Charger. Police seized the drugs after conducting a traffic stop of Pastorino. Terry, Edmonds, and Land were arrested at a nearby business, and McGuirk was arrested at his hotel near the Dayton airport. The Federal Bureau of Investigation (FBI) led the Project Parkersburg operation and in addition to the Parkersburg Narcotics Task Force, the Parkersburg Police Department, the Dayton, Ohio Police Department, the Arizona Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
Lt. Pat Edelen, Sgt. Josh Snyder and Agent Kyle Barnette with the Parkersburg Police Department were each presented with the U.S. Attorney’s Award for Excellence in Pursuit of Justice for their critical roles in the case of United States v. Benjamin Lee Parsons. The long-term investigation of Parsons began in 2016 for making threats against police and others and claiming to have interest in terrorist organizations. In December 2015, he had worn a mask to a church service in Mineral Wells. Later, Parsons told several witnesses at a church in Parkersburg that he was armed, that he had recently thought about shooting police, that he had been watching violent terrorist videos, and that he had communicated with foreign terrorists and discussed several “soft targets” in Wood County. Due to the efforts of Wood County Prosecutor Pat Lefebure, Parsons was involuntarily committed to a mental hospital in February 2017. That adjudication prohibited Parsons from possessing firearms under both state and federal law. In October 2018, investigators learned that Parsons had acquired additional firearms, including a high-capacity semiautomatic assault rifle. Investigators further learned that Parsons had obtained the weapon from another individual who told investigators that he had purchased it for Parsons from a licensed firearms dealer in Marietta, Ohio. Parsons was arrested in October 2018, and soon thereafter, investigators executed a search warrant at a wooded area in Mineral Wells where Parsons had been living. They recovered the assault rifle as well as another rifle from a locked case Parsons kept at his campsite. The assault rifle was loaded with approximately 190 rounds of belted ammunition in a drum magazine. Investigators also located and seized 12 magazines for the other rifle loaded with 164 rounds of ammunition, 32 additional unloaded magazines, and approximately 640 rounds of 9mm and other rifle ammunition. Parsons pled guilty to being a prohibited person in possession of firearms and is currently serving five years in federal prison. Law enforcement officers with the Wood County Sheriff’s Department, the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were also involved in the investigation of Parsons.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
Follow us on Twitter: SDWVNews and USAttyStuart
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Two Men Facing Federal Indictment in Maryland for Scheme to Steal Digital Currency and Social Media Accounts Through Phishing and “Sim-Swapping”Read the Press Release
Baltimore, Maryland – A federal grand jury has indicted Jordan K. Milleson, age 21, of Timonium, Maryland, and Kyell A. Bryan, age 19, of Kingston, Pennsylvania, on the federal charges of Wire Fraud, Unauthorized Access to Protected Computers in Furtherance of Fraud, Intentional Damage to Protected Computers, Aggravated Identity Theft, and Wire Fraud Conspiracy, in connection with their unauthorized takeovers of victims’ wireless phone and other electronic accounts and to steal digital currency and valuable social media accounts. The superseding indictment was returned on September 9, 2020, and was unsealed today at Bryan’s initial appearance. Milleson was arrested on July 29, 2020, and was ordered to be detained pending trial.
The superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the 15-count superseding indictment, from September 23, 2017, through January 27, 2020, Milleson registered fraudulent Internet domains, sent “phishing” e-mails, and took over wireless phone numbers in order to steal digital currency and valuable social media accounts. On June 25 and 26, 2019, Milleson and Bryan conspired to execute a scheme to take over individuals’ electronic accounts and steal digital currency for their own financial gain.
Specifically, the indictment alleges that Milleson was a computer “hacker” who accessed computers, computer networks, and electronic accounts without authorization in order to perpetrate the alleged fraud schemes, and that Bryan participated in some of the unauthorized takeovers of wireless telephone, electronic, and financial accounts that were part of the fraud schemes.
As detailed in the superseding indictment, Milleson allegedly set up Internet domains and fraudulent websites, designed to appear to be legitimate websites belonging to wireless providers, but which were intended to steal account credentials and enabled Milleson, Bryan, and others to access unsuspecting victims’ electronic accounts without authorization. Milleson used techniques such as phishing and vishing to deceive victims into visiting the fraudulent websites and providing their credentials to access their electronic accounts. Victims of phishing attacks were generally contacted by e-mail, phone, or text message by persons purporting to be from reputable companies in order to induce victims to reveal confidential information. Vishing is “voice phishing” where imposters use Internet phone services to trick victims into turning over critical financial or personal information over the phone.
The superseding indictment alleges that Milleson, Bryan, and others used electronic account credentials stolen from employees and affiliates of wireless providers to access those companies’ computer networks without authorization. After obtaining access to these networks, the defendants allegedly took over individual victims’ wireless accounts through “SIM swapping,” whereby customers’ mobile numbers, which are linked to unique subscriber identity modules (“SIM”), were instead linked to a SIM installed in a device controlled by the defendants or their co-conspirators. Once the defendants gained control over the victims’ mobile phone numbers, they were often able to also gain unauthorized access to victims’ other electronic accounts, including e-mail, social media, and cryptocurrency accounts. The defendants would frequently change the passwords to keep the victims from accessing their own accounts.
As a result of these criminal activities, Milleson allegedly took over the social media accounts of two victims, one of whom had thousands of followers and had monetized their account through sponsored links, product placements, and product reviews. The superseding indictment alleges that Milleson and Bryan, after conducting a successful SIM swap, were also able to steal more than $16,000 from the digital currency account of another victim after obtaining unauthorized access to that victim’s user accounts.
As detailed in the superseding indictment, on June 26, 2019, Bryan anonymously called the Baltimore County Police Department and falsely reported that he, purporting to be a resident of the Milleson family residence, had shot his father at the residence. During the call, Bryan, posing as the purported shooter, threatened to shoot himself and to shoot at police officers if they attempted to confront him. This call was a “swatting” attack, a criminal harassment tactic in which a person places a false call to authorities that will trigger a police or special weapons and tactics (SWAT) team response—thereby causing a life-threatening situation. The superseding indictment alleges that Bryan perpetrated the swatting attack in retaliation for Milleson failing to share the proceeds of the digital currency theft.
If convicted, the defendants faces a maximum sentence of 30 years in federal prison for each count of wire fraud and wire fraud conspiracy; a maximum of 5 years in federal prison for each count of unauthorized access of a protected computer in furtherance of fraud; and a mandatory two years in prison, consecutive to any other sentence imposed, for each count of aggravated identity theft. Milleson also faces a maximum of 10 in federal prison for each count of intentional damage to a protected computer. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Beth P. Gesner ordered that Bryan be detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended HSI and the Baltimore County Police Department for their work in the investigation and thanked the Manhattan, New York, District Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Christopher M. Rigali, who are prosecuting the case.
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Two Admit to Using Casinos to Facilitate Financial CrimeRead the Press Release
Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – October 28, 2020
SAN DIEGO – Fan Wang pleaded guilty in federal court today to operating an unlicensed money transmitting business. His guilty plea is the fourth in this ongoing investigation targeting operators of unlawful underground financial institutions that transfer money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.
As part of his agreement to plead guilty, Wang agreed to forfeit $225,000 to the United States as property involved in the operation of his unlicensed money transmitting business.
“As this series of guilty pleas makes abundantly clear, individuals facilitating the illegal transfer of money to and from China will be held accountable,” said U.S. Attorney Robert Brewer. “The security of our banking system depends on it.” Brewer commended prosecutors Mark Pletcher and Daniel Silva, as well as agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force and the Drug Enforcement Administration for their excellent work on this case.
“HSI will continue to hunt down these underground hawalas and disrupt the ability of criminal organizations to cash-in on their ill-gotten gains,” said Cardell T. Morant, special agent in charge for Homeland Security Investigations (HSI). “HSI and our partners are committed to pursuing criminal prosecutions and civil monetary penalties against those who choose to operate in the shadows of our financial system and enable the flow of dirty money across international borders.”
As admitted in the plea agreement entered today before U.S. Magistrate Judge Daniel E. Butcher, Wang sold hard currency in U.S. dollars that he collected from various third parties. His customers were typically individuals with bank accounts in China who could not readily access cash in the United States due to capital controls that cap the amount of Chinese yuan that an individual can convert to foreign currency. Often these customers needed the money to gamble at the casinos in Las Vegas and elsewhere. Upon receiving U.S. dollars, the customers would transfer from a Chinese bank account an equivalent value in yuan, over their mobile phones in the United States, to a separate bank account in China designated by Wang. As part of a typical money exchange transaction, Wang was introduced to his customers by a casino host whose job it was to facilitate that customer’s play at a particular casino. The customer then used the U.S. currency to gamble.
Sentencing is scheduled for January 29, 2021.
Extending the series of guilty pleas in this investigation, Jeffrey B. Miklus of Phoenix, Arizona admitted to tax fraud, after using funds from his business to fund his gambling activity at casinos throughout the southwestern United States.
As admitted this morning in his plea agreement that was also entered before U.S. Magistrate Judge Daniel E. Butcher, Miklus withdrew over $1.5 million dollars from his pest control business, and used these proceeds to gamble—all without reporting that income to the IRS. This activity spanned years, resulting in restitution and taxes due and owing to the IRS of more than $650,000, an amount that will grow with interest and a 75 percent fraud penalty. As a material term of his plea agreement, Miklus must satisfy the tax due in full before his sentencing date.
Sentencing for Miklus is scheduled for January 31, 2021.
DEFENDANTS
Fan Wang Case Number 20CR3390-DMS
Las Vegas, NV Age: 38
Jeffrey B. Miklus Case Number 20CR3328-GPC
Phoenix, AZ Age: 57
SUMMARY OF CHARGES
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison, forfeiture, and $250,000 fine
Tax Fraud and False Statements Under Penalties of Perjury – Title 26, U.S.C., Section 7206(1)
Maximum Penalty: Three years in prison, restitution, and $250,000 fine
AGENCIES
Homeland Security Investigations
IRS Criminal Investigation Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
Tucson Man Sentenced to 108 Months for RobberiesRead the Press Release
TUCSON, Ariz. - Marco Antonio Flores, 28, of Tucson, Arizona, was sentenced today by U.S. District Judge Scott H. Rash to serve 108 months in prison, followed by three years of supervised release. Flores previously pleaded guilty to two counts of robbery.
On June 10, 2017 and on October 21, 2017, Flores committed robberies against separate victims at residences on Pascua Yaqui land using force and violence. Flores is an enrolled member of the Pascua Yaqui Tribe.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Erica L. Seger, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-18-00487-TUC-SHR
RELEASE NUMBER: 2020-093_Flores# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Trucking Company Owner Admits to Falsifying Driver RecordsRead the Press Release
PROVIDENCE – The owner of a now defunct Woonsocket commercial trucking company admitted to a federal court judge in Providence that he altered thousands of electronic entries in service logbooks for approximately 20 drivers in order to conceal the actual drive time and “on-duty” time of drivers.
U.S. Department of Transportation (USDOT) regulations, enforced by the Federal Motor Carrier Safety Administration (FMCSA), a division of the USDOT, require accurate record keeping and operational requirements, including records related to drivers’ actual hours of service.
Damir Sisic, 29, of Woonsocket, owner of the now defunct Sisic Transport Service LLC (STS), admitted that he routinely altered data collected by onboard electronic data gathering devices installed in his trucks that reflected the actual number of hours his drivers operated the vehicles.
Sisic owned approximately eleven commercial truck tractors and ten box-style commercial trailers, and employed between seven and ten drivers at a time. Each vehicle was equipped with an electronic device that recorded the location of each truck, and the start and stop time of each vehicle. Sisic admitted that he accessed and altered that data on thousands of occasions. He admitted that he routinely concealed from the USDOT and FMCSA that his drivers were routinely exceeding the maximum number of driving hours and “on-duty” hours without the required off-duty hours, in violation of federal law.
According to court documents, Sisic provided altered driving records to a State Trooper investigating the fatality of an STS driver who was driving an STS truck that occurred in Oklahoma on April 22, 2018. In addition, Sisic provided altered driving records for numerous STS drivers to an FMCSA investigator during a compliance review.
Sisic pleaded guilty in U.S. District Court in Providence to conspiracy to falsify records, announced United States Attorney Aaron L. Weisman and Special Agent in Charge Douglas Shoemaker, U.S. Department of Transportation, Office of Inspector General, Office of Investigations, Northeast Region.
Sisic is scheduled to be sentenced by U.S. District Court Judge Mary S. McElroy on January 7, 2021.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Three Indicted in El Paso for Federal Firearms Violations under Project GuardianRead the Press Release
A federal grand jury in El Paso indicted three individuals for their roles in a scheme to straw purchase firearms and smuggle them into Mexico, announced U.S. Attorney Gregg N. Sofer and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II, Dallas Field Office. This case is being brought as part of Project Guardian, a Department of Justice initiative designed to address firearms related crime. It also highlights the Department of Justice’s efforts to stem the illegal flow of firearms into Mexico, where they are often used by criminal cartels to commit acts of extraordinary violence.
“We are absolutely committed to stemming the illegal flow of firearms into Mexico. If you are engaged in illegal gun trafficking, you can expect to be investigated and prosecuted. If you straw purchase a weapon, that is, lie about the true purchaser of a firearm, you face substantial time in federal prison,” stated U.S. Attorney Sofer.
A six-count federal grand jury indictment unsealed today in federal court in El Paso charges 37-year-old Herbert Serrano, a citizen of Mexico, 22-year-old El Paso resident Israel Ruiz Esparza and 21-year-old El Paso resident Raul Mendoza with one count of conspiracy to smuggle goods from the U.S.; one count of attempting to smuggle goods from the U.S.; and two counts of making a false statement during the purchase of a firearm. The indictment also charges Ruiz and Mendoza with one count of unlawful user in possession of a firearm.
Federal authorities in El Paso arrested Ruiz and Mendoza yesterday afternoon; Serrano, on Friday, October 23.
According to the indictment, the defendants allegedly conspired for approximately one month beginning in February 2020, to knowingly obtain firearms in the U.S. and export them to Mexico without a license. The indictment further alleges Mendoza provided false written information while allegedly straw purchasing a 9mm pistol for Serrano on March 2, 2020. The indictment also alleges that Ruiz provided false written information while allegedly straw purchasing three 9mm pistols for Serrano on March 26, 2020. Furthermore, at the time of the firearms purchases, both Ruiz and Mendoza knew that they were unlawful users or addicted to a controlled substance making them prohibited persons from possessing firearms under federal law.
“ATF and it’s partners are fully committed to preventing the flow of illegal firearms to Mexico. If you are involved in this, you are now on notice that the ATF will investigate and eventually arrest you,” stated ATF Special Agent in Charge Boshek.
Each count calls for up to ten years in federal prison upon conviction. The defendants remain in federal custody pending detention hearings. Serrano is scheduled for tomorrow at 8:15am before U.S. Magistrate Judge Leon Schydlower. Ruiz and Mendoza are expected to have their detention hearing sometime next week in U.S. Magistrate Court in El Paso.
The ATF is conducting this investigation. Assistant U.S. Attorney Alejandro G. Ortega is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This Project Guardian case is among more than 350 pending firearms cases in the Western District of Texas.
Project Guardian is 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. Click here for more information about Project Guardian.
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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.