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11 December 2020
Muskogee Man Pleads Guilty to Assault with A Dangerous Weapon with Intent to Commit Bodily Harm in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dorion Martin, age 29, of Muskogee, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153, punishable by not more than 10 years of imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about July 30, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did assault D.N., T.S., and K.N. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Massachusetts Man Surrenders to Face Federal Firearm ChargeRead the Press Release
PROVIDENCE – Timothy J. Valle, 37, of Franklin, MA, made an initial appearance before a U.S. District Court Magistrate Judge in Providence today, charged after an investigation determined that he allegedly traded firearms, at least one from which the serial numbers had been obliterated, in exchange for fentanyl.
The firearm was seized by Pawtucket Police from Jonathan Reyes, 34, of Pawtucket, during a traffic stop on October 14, 2020. Reyes’ car was stopped by Pawtucket Police when officers noted that Reyes was allegedly not wearing a seat belt and that Virginia plates affixed to the car were registered to a different vehicle. During a search of the vehicle officers allegedly discovered a loaded Sig Sauer semi-automatic handgun with an obliterated serial number, the same firearm Valle allegedly traded to an individual other than Reyes in exchange for $1,000 worth of fentanyl.
Valle’s alleged criminal conduct came to the attention of law enforcement when the FBI executed a search warrant on a cellular telephone seized during a recent FBI investigation that resulted in the indictment of nine individuals for allegedly participating in schemes in several states to steal and sell nearly $700,000 worth of excavators, sport boats, jet skis, all-terrain vehicles, and trailers.
It is alleged in court documents that Valle texted pictures of the firearm to the person with whom he later traded with for the fentanyl. The firearm, with its serial numbers “washed,” or obliterated, was later confiscated from Reyes.
According to court documents, ATF agents determined that Valle lawfully purchased several firearms from licensed dealers in Massachusetts. As a result of the ongoing investigation into Valle’s alleged criminal activity and drug use, ATF agents, with the assistance of Franklin, MA, police seized several firearms from Valle’s residence. Pictures of a firearm that matched the firearm seized from Reyes were allegedly located on Valle’s cellphone.
Valle self-surrendered today and appeared before U.S. District Court Magistrate Patricia A. Sullivan on a criminal complaint charging him with possession of a firearm with an obliterated serial number, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
Valle’s alleged criminal conduct was investigated by ATF, with the assistance of the FBI, Rhode Island State Police, and the Franklin, MA, Police Department.
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Manager at Queens Not-For-Profit Pleads Guilty to Wire FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Ingris Coronado pleaded guilty to a criminal information charging her with defrauding her former employer, Southern Queens Park Association (SQPA), a government-funded, Queens-based not-for-profit that provides educational and other social services to young adults. Today’s plea took place before United States District Judge William F. Kuntz, II. When sentenced, Coronado faces up to 20 years in prison, as well as forfeiture and a fine of up to $250,000 for submitting false invoices and cashing checks issued in the names of other individuals.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
Since at least 2014, Coronado worked as a Project Manager for SQPA, which received millions of dollars annually in New York City government funding. According to court filings and facts presented during the plea proceeding, between August 2014 and September 2018, Coronado engaged in a scheme to steal money from SQPA. Specifically, in her role as the supervisor of an after-school program run by SQPA, Coronado repeatedly falsified time sheets, collected checks issued in the names of more than ten of her supervisees and deposited those checks into her own bank account. On multiple occasions, Coronado also created false invoices for vendors for SQPA and deposited the resulting payment checks into her personal account. As a result of her fraudulent conduct, Coronado stole tens of thousands of dollars from SQPA.
“For years, Coronado deceived her employer and abused her position at a not-for-profit organization by stealing funds that were meant to benefit members of the community,” stated Acting United States Attorney DuCharme. “Today’s guilty plea makes clear that individuals who engage in fraud to satisfy their own greed at the expense of the community they are supposed to be serving will be brought to justice.”
“Coronado stole money directly from a city-funded, not-for-profit program established to provide services to young adults. Today she’s admitted to her criminal activity and faces a significant jail sentence as a result of her behavior. Let this be a message to others who are currently scamming the system—there are consequences for your actions,” stated FBI Assistant Director-in-Charge Sweeney.
“This defendant falsified timesheets and vendor invoices and pocketed checks issued to employees and vendors, amounting to tens of thousands of dollars – stealing taxpayer funds meant to help residents of southern Queens who rely on this nonprofit's programming. DOI is committed to investigating these damaging crimes that attack our City's charitable organizations and diminish the impact of the City's funding of their programs. We are proud to have partnered with the office of the United States Attorney for the Eastern District of New York and the Federal Bureau of Investigation to hold this defendant accountable for her conduct,” stated DOI Commissioner Garnett.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
INGRIS CORONADO
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-189 (WFK)
Man who worked at local research institute for 10 years pleads guilty to conspiring to steal trade secrets, sell them in ChinaRead the Press Release
press_release_translation.pdfCOLUMBUS, Ohio – A former Dublin, Ohio man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.
Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.
“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”
“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”
Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.
Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.
As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes. For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process. A sentencing date has not been set yet for either defendant.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
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Man Who Worked at Local Research Institute for 10 Years Pleads Guilty to Conspiring to Steal Trade Secrets, Sell Them in ChinaRead the Press Release
A former Dublin, Ohio, man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.
Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.
“Today’s plea underscores the Department of Justice’s commitment to protecting American research and trade secrets from those incentivized to steal them by Chinese Government programs,” said John C. Demers, Assistant Attorney General for National Security. “China’s endemic efforts to rob, replicate and replace products that they do not have the ability to develop themselves will not go unchecked, and those who seek to profit from the theft of trade secrets will be held accountable.”
“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”
“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”
Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.
Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.
As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes. For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
Man Sentenced to Prison for Mail Fraud and ID Theft SchemeRead the Press Release
NEWPORT NEWS, Va. – A New York man who formerly resided in Newport News was sentenced today to three years in prison for a mail fraud and identity theft scheme.
According to court documents, Christopher A. Phillips, 25, stole mail from unwitting victims and used personal information from that mail to open new bank accounts and lines of credit in their name. He next used mail-tracking services and techniques such as following mail routes to ensure he retrieved the new means of account access before the victims. Phillips then repeatedly purchased goods and services using the accounts he had opened in the victims’ names, resulting in a total loss of approximately $35,000.
As a result of Phillips’ scheme, investigators identified at least 12 victims of identity theft across Isle of Wight, Southampton, and Sussex Counties. At the time of his arrest, investigators recovered significant quantities of stolen mail and electronic devices with more suspected victims.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; James R. Clarke, Jr., Sheriff, Isle of Wight County; Josh Wyche Sr., Sheriff, Southampton County; and Earnest L. Giles, Sheriff, Sussex County, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-30.
Luzerne County Woman Sentenced to 102 Months’ Imprisonment for Drug Trafficking and Possession of A FirearmRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jessica Hernandez-Boria, age 40, of Hazleton, Pennsylvania, was sentenced on December 9, 2020, to 102 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for her involvement in a conspiracy that distributed approximately three kilograms of cocaine.
According to United States Attorney David J. Freed, Hernandez-Boria previously pleaded guilty to conspiring with others to distribute approximately three kilograms cocaine throughout Hazleton, Luzerne County, between September 2018 and February 2019. Hernandez-Boria also admitted to arming herself with a .40 caliber Glock firearm in furtherance of her drug trafficking activities.
Hernandez-Boria’s conviction and sentence resulted from a federal investigation which focused on the defendant’s residence in Hazleton where she frequently received large packages containing cocaine via the U.S. Mail from a source located in Puerto Rico. Hernandez-Boria delivered the packages to other drug dealers and was paid cash for her role in the conspiracy.
Judge Mariani also ordered Hernandez-Boria to serve four years of supervised release following her prison sentence. In addition to the firearm, federal agents also seized approximately $5,750 in cash from Hernandez-Boria at the time of her arrest, which was forfeited as a resulted of her prosecution.
The case was investigated by agents of the U.S. Postal Inspection Service, Philadelphia Division, and the Pennsylvania State Police. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Lil Wayne Pleads Guilty in Miami to Federal Gun ChargeRead the Press Release
Miami, Fl. -- Today, 38-year-old rapper Lil Wayne pled guilty in federal district court to illegally possessing a loaded, gold-plated .45-caliber handgun while traveling to South Florida on a private plane last Christmas season.
According to court documents, an anonymous tip led officers to Opa Locka Executive Airport on December 23, 2019, where Lil Wayne, whose official name is Dwayne Michael Carter, arrived on a private flight from California. Officers spoke with Carter, who told them that he had a gun in his bag. After securing a search warrant, officers looked in the bag containing Carter’s personal items and found a gold-plated Remington 1911, .45-caliber handgun loaded with six rounds of ammunition. The bag also contained personal use amounts of cocaine, ecstasy, and oxycodone. Prior to December 23, 2019, Carter had been convicted of a felony, which made his possession of the gun and ammunition on that day illegal.
Carter’s sentencing hearing is scheduled for January 28, 2021, at 2:00 p.m., before U.S. District Judge Kathleen M. Williams. Carter faces up to 10 years in federal prison.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami investigated this case, with assistance from the Miami-Dade Police Department and Miami-Dade State Attorney’s Office. Assistant U.S. Attorney Daniel J. Marcet is prosecuting the case.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20222.
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Justice Department Files Statement of Interest in Michigan Religious Schools' Challenge to COVID-19 Closing OrderRead the Press Release
The Justice Department today filed a statement of interest in federal district court in Kalamazoo, Michigan, arguing that the Free Exercise Clause of the Constitution requires the state of Michigan to justify why it cannot provide exemptions to its school closing order for in-person instruction at religious high schools when it provides exemptions for trade and technical instruction in person, college sports teams, and other educational activities.
The plaintiff religious schools have implemented rigorous protocols to reduce the risk of COVID-19 transmission, including requiring masks and distancing, schedule changes to reduce movement, an outdoor tent cafeteria at one school, thermal screening kiosks, and others.
“The education of children is a matter of faith to many people, and the Free Exercise Clause of First Amendment to the United States Constitution protects religious education. The Free Exercise Clause does not protect nonreligious activities such as trade and technical classes and college sports,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “For more than two centuries, Americans have fought and died for the right of our people to worship and pray according to their conscience and faith. These noble patriots did not fight and die to protect the nonexistent authority of government to discriminate against the exercise of religion by people of faith. Discrimination against the right of the people to practice their religion violates everything this country stands for.”
The case was filed on Dec. 7, 2020, by three Catholic high schools, parents of students, and a Michigan association of religious schools challenging an order issued the same day by the Michigan Department of Health and Human Services ordering public and nonpublic high schools throughout the state closed. The plaintiffs allege that the schools have a sincerely held religious belief that the diverse religious aspects of a Catholic education must be conducted in person, including daily Mass, Eucharistic adoration, communal prayer throughout the school day, and spiritual formation with their teachers, among others. The Michigan order, however, requires all high schools to close, including religious high schools, while granting exceptions for trade and technical education, boarding schools, English Language Learner instruction, special education, and even college sports.
The United States’ brief explains that Michigan’s order “exempts a range of educational activities that the state deems important enough to be held in person notwithstanding the health risks, but has failed to exempt religious educational activities which the plaintiffs likewise sincerely believe must be held in person.” Such differential treatment of religious reasons for in‑person learning and various secular reasons for in-person learning and activities must be justified by a compelling government interest carried out through the least restrictive means. This, the brief maintains, the state has failed to do here.
Since Attorney General William P. Barr announced an initiative on April 27, 2020 to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic, the Civil Rights Division has filed numerous briefs and statements of interest concerning protections under the Constitution and the Bill of Rights.
Justice Department Files Lawsuit Alleging Disability-Based Discrimination by Architect and Owners of 15 Complexes in Four StatesRead the Press Release
The Justice Department announced the filing today of a lawsuit against J. Randolph Parry Architects, P.C. and eight owners of multifamily properties designed by the architectural firm.
The lawsuit alleges that the defendants violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to design and construct housing units and related facilities to make them accessible to people with disabilities.
“The Fair Housing Act and the Americans with Disabilities Act have been the law for more than a quarter century, and there is no excuse for owners and architects to continue developing properties that fail to comply with the accessibility requirements of these statutes,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This flagrant disregard of federal law must stop, and stop now. We will hold accountable those who ignore their legal obligations to design and construct multifamily housing to be accessible to people with disabilities.”
The lawsuit, which was filed in the United States District Court for the Eastern District of Pennsylvania, alleges that at least 15 multifamily senior living properties have significant accessibility barriers, including inaccessible pedestrian routes to building entrances, inaccessible pedestrian routes from apartment units to amenities, inaccessible parking, door openings that are too narrow for a person using a wheelchair, environmental controls that are too high or too low for a person using a wheelchair to reach, and inaccessible bathrooms and kitchens.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility and civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing multifamily properties in a manner that discriminates against people with disabilities.
The 15 properties, all designed by J. Randolph Parry Architects, that are alleged to violate the FHA and ADA are:
- Traditions of Hanover, Bethlehem, Pennsylvania;
- Traditions of Hershey, Palmyra, Pennsylvania;
- Chestnut Knoll, Boyertown, Pennsylvania;
- Arbour Square, Harleysville, Pennsylvania;
- Cedar Views Apartments, Philadelphia, Pennsylvania;
- The Birches, Newtown, Pennsylvania;
- The Lifequest Nursing Center Addition, Quakertown, Pennsylvania;
- Keystone Villa, Douglasville, Pennsylvania;
- Alcoeur Gardens, Brick Township, New Jersey;
- Alcoeur Gardens, Toms River, New Jersey;
- Church Hill Village, Newtown, Connecticut;
- Heritage Green, Mechanicsville, Virginia;
- Homestead, Hamilton Township, New Jersey;
- The Villa Rafaella Addition, Pleasantville, New Jersey; and
- Woodbury Mews Colonial House, Woodbury, New Jersey.
Anyone with information about the inaccessible conditions at these properties should call the Department of Justice at 1-833-591-0291, and select option numbers (1 4 1): select one for English, four for housing accessibility and one for US v. J. Randolph Parry Architects to leave a message or send an email to [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at https://civilrights.justice.gov/.
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. Among other things, the FHA requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes to all units in buildings with elevators. Enacted in 1990, the ADA requires, among other things, that places of public accommodation, such as rental offices at multifamily complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
Jury Convicts Cocoa Man of Conspiracy to Possess with the Intent to Distribute FentanylRead the Press Release
Orlando, Florida – A federal jury has found Jerimiah Swanson (22, Cocoa) guilty of conspiracy to possess with the intent to distribute more than 40 grams of fentanyl. Swanson faces a minimum mandatory penalty of 5 years, and up to 40 years, in federal prison. His sentencing hearing is scheduled for March 9, 2021.
Swanson had been indicted on March 18, 2020.
According to testimony and evidence presented at trial, beginning no later than November 2019 and continuing through February 2020, Swanson and a co-defendant agreed to sell heroin that turned out to be the more potent opioid, fentanyl. A confidential informant working for the Drug Enforcement Administration made six recorded purchases, totaling over 150 grams of fentanyl, outside Swanson’s home in Cocoa. In February 2020, law enforcement executed a search of Swanson’s home and recovered baggies, digital scales covered with fentanyl and cocaine, and firearms from Swanson’s bedroom.
This case was investigated by the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Florida Highway Patrol, and the Titusville Police Department. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Raymond Barrett to 57 months in prison today. The 40-year-old St. Louis, Missouri resident pleaded guilty to being a felon in possession of a firearm.
On February 21, 2019, Barrett was riding in the passenger seat of a vehicle that was the subject of a lawful traffic stop. During the stop, Barrett tried to hide his firearm in the passenger door pocket. Barrett then gave police officers a false name. After police discovered the name was false, Barrett admitted his real name and police determined he had a parole warrant. While Barrett was getting out of the vehicle, police saw and seized the firearm Barrett had placed in the door. Barrett had been convicted previously of burglary in four separate cases, and was paroled from a 12-year sentence for robbery shortly before committing the offense in this case.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Jason Dunkel is handling the case.
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Jacksonville Man Pleads Guilty to Producing Photos of Himself as He Sexually Abused an 11-Year-Old ChildRead the Press Release
Jacksonville, Florida – Columbus Donavan Jeffrey (43, Jacksonville) has pleaded guilty to two counts of producing images depicting himself as he sexually abused a child. Jeffrey faces an aggregate mandatory minimum penalty of 15 years, and up to 60 years, in federal prison and a potential life term of supervised release. Jeffrey was arrested on October 3, 2019, and remains in custody. A sentencing date has not yet been scheduled.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received information from a company that hosts an online social messaging application (app). Specifically, on May 3, 2019, a user named “hideme1977,” subsequently identified as Jeffrey, had uploaded several pornographic images using this app. These photos were taken by Jeffrey showing him sexually abusing an 11-year-old child. On October 3, 2019, detectives from the Jacksonville Sheriff’s Office (JSO) and other officers executed a search warrant at Jeffrey’s residence in Jacksonville. When interviewed, Jeffrey admitted that he had used the “hideme1977” username on the app. He also identified himself and the child as depicted in one of the photos that Jeffrey had uploaded to the app on May 3, 2019. JSO detectives were able to locate the child shown in the photos. During an interview, the child disclosed that Jeffrey had sexually abused the child on at least three separate occasions and had taken pictures of this sexual abuse during two of these incidents.
A forensic examination of Jeffrey’s cellphone revealed that it contained 635 images and 57 videos depicting the sexual abuse of minors, including other photos taken by Jeffrey in which he is shown sexually abusing the same child on several occasions in Jeffrey’s residence.
This case was investigated by the Jacksonville Sheriff’s Office, the National Center for Missing and Exploited Children, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys D. Rodney Brown and Kelly S. Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indictment Unsealed Charging Three Men with Illegal Firearms Dealing Throughout Oklahoma, Texas, and MexicoRead the Press Release
OKLAHOMA CITY – JORGE LOUIS VILLARREAL, 41, of Texas, RICHARD CLINTON POND, 49, of Oklahoma City, and COREY LEE JUMP, 50, of Tecumseh, Oklahoma, have been charged with conspiring to deal firearms without a license, announced U.S. Attorney Timothy J. Downing.
On November 2, 2020, a Criminal Complaint was filed against Villarreal following the discovery of illegal firearms recovered in Mexico. The resulting investigation determined the firearms were originally purchased in Oklahoma.
On December 2, 2020, a federal grand jury returned a sealed seven-count Indictment charging Villarreal, Pond, and Jump with conspiracy to deal firearms without a license. According to the Indictment, between March 23, 2020, and October 31, 2020, Pond and Jump purchased firearms with the intent to sell them to Villarreal for profit. It is alleged that once Pond and Jump obtained the firearms, Villarreal traveled from Texas to Oklahoma to purchase the firearms from his co-defendants, which he subsequently resold in Texas and Mexico.
In addition to the Count 1 conspiracy charge, Count 2 charges Jump with unlawful dealing in firearms, Count 3 charges Pond with giving a false statement to acquire a firearm, Counts 4 and 7 charge Villarreal with traveling interstate to deal firearms without a license, Count 5 charges Pond with unlawful sale of a firearm to an out-of-state resident, and Count 6 charges Jump with giving false statements to an ATF agent during the investigation. The Indictment also seeks forfeiture of 117 specific firearms and seeks that Villarreal forfeit $44,881 in cash.
On December 4, 2020, the Indictment was unsealed following the arrest of the defendants.
If the defendants are found guilty, Counts 1, 2, 3, and 6 may result in a sentence of up to five years in prison, a $250,000 fine, and up to three years of supervised release. Counts 4, 5, and 7 may result in a sentence up to ten years in prison, a $250,000 fine, and up to three years supervised release.
This case is a result of an investigation by the ATF Oklahoma City Field Office with the assistance of the ATF McAllen, Texas Field Office. Assistant U.S. Attorneys Ashley Altshuler, Wilson McGarry, and Stan West are prosecuting the case.
The public is reminded that these charges are merely allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Indictment Disrupts Racketeering, Fraud Scheme to Steal and Sell State Certification ExamsRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Lawrence Keefe today announced the indictment of two people in a far-reaching conspiracy scheme to allegedly steal, defraud, and profiteer by cheating the state's educator testing, certification, and licensing process. The indictment says the couple and employees of their private company repeatedly took state-required exams in order to memorize the questions so they could then profit by selling them to prospective educators.
The indictment alleges that since January 2016, certified Florida teachers Kathleen M. Jasper, 42, and Jeremy M. Jasper, 40, both of Estero, Florida, stole content from the Florida Teacher Certification Exams (FTCE) and the Florida Educational Leadership Exam (FELE). They are alleged to have then included the stolen content in test preparation materials and services sold through their business, the indictment says. Passing these exams is required for certification in Florida, and the test content is owned by the Florida Department of Education and the State Board of Education.
“This alleged scheme represents an insult to the vast majority of Florida’s public school teachers and administrators who studied and worked hard the right way to become certified in their profession because it provided an illegal and unethical shortcut for others,” said Keefe, who is United States Attorney for the Northern District of Florida. “Floridians expect and deserve to know that the public schools to which they entrust their children to learn are being led by teachers and administrators who properly earned their way into the system. The profiteering scheme alleged in this indictment strikes at the very heart of public education by undermining the credibility of important licensing exams that help ensure the very best for our children.”
The indictment, issued by a federal grand jury on December 1, charges the Jaspers with racketeering conspiracy (RICO), conspiracy to commit wire fraud, 108 counts of wire fraud, conspiracy to commit theft of trade secrets, and three counts of theft of trade secrets. They face a potential maximum penalty of 20 years in prison for RICO conspiracy, conspiracy to commit wire fraud, and each wire fraud count, and up to 10 years in prison for conspiracy to commit theft of trade secrets and for each theft of trade secrets count.
According to the indictment, the Jaspers owned and operated NavaEd, LLC, a company that offered tutoring and training to prepare prospective Florida educators to pass the FTCE and the FELE. NavaEd offered training publications for sale worldwide directly through its website and through third-party e-commerce websites such as Amazon and Shopify.
The indictment alleges that Kathleen and Jeremy Jasper each took the FTCE and FELE multiple times – after having already passed the exams – in order to see and memorize, or “harvest,” as many different exam questions as possible. According to the indictment, the Jaspers also directed NavaEd employees and independent contractors to take the exams for the same purpose.
As alleged in the indictment, the Jaspers and NavaEd customers shared the stolen FTCE and FELE test content with each other through email, phone, video conferencing, and messaging applications. The indictment also alleges that the Jaspers republished the stolen test content – verbatim and almost verbatim – into NavaEd publications that were written to prepare future Florida teachers and school administrators for the certification exams. These publications, as well as other NavaEd FTCE and FELE preparation materials, were disseminated and used during NavaEd training seminars and tutoring sessions.
“Today’s indictment alleges that these two so-called educators knowingly and willfully preyed on school districts and teachers, and taxpayer money. Together with our law enforcement partners, we were able to stop them,” said Kori Smith, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office. “As the office responsible for identifying fraud, abuse, and other criminal activity involving Department of Education funds and programs, ensuring that those who abuse these funds or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission.”
The Jaspers, in their capacity as the owners of NavaEd, conspired to conduct their business affairs through a pattern of racketeering activity, which the indictment specifically alleges to consist of multiple acts of wire fraud. Wire fraud was committed when Kathleen and Jeremy Jasper, and employees and contractors working at their direction, falsely and fraudulently acknowledged and agreed to various testing rules and regulations, including a non-disclosure agreement, each time they registered to take the FTCE or FELE, the indictment says.
"These indictments are a powerful testament to the importance of cooperation between state and federal partners," said FDLE's Tallahassee Regional Operations Center Special Agent in Charge Mark Perez. "I am incredibly proud of the investigative resources our agents and analysts brought to this case, and tremendously grateful for our partners' diligent work ensuring that justice is done."
The case resulted from a joint investigation by the Florida Department of Law Enforcement, the United States Department of Education-Office of Inspector General, and the Florida Department of Education, with investigative assistance by Pearson VUE, the company with whom the Florida Department of Education contracted to administer and provide test security for the FTCE and FELE. Assistant United States Attorney Justin M. Keen is prosecuting the case.
An initial appearance and arraignment are scheduled for Friday, December 11, 2020, at 1:30 p.m., before the Honorable Magistrate Judge Martin Fitzpatrick at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Jasper Indictment - JasperHazleton Man Sentenced to 24 Months’ Imprisonment for Cocaine TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 9, 2020, Rafael Lora, age 45, to Hazleton, Pennsylvania, was sentenced to 24 months’ imprisonment and a two-year term of supervised release by United States District Court Judge Robert D. Mariani, for conspiring to possess with the intent to distribute cocaine.
According to United States Attorney David J. Freed, Lora, his co-defendant Luis Santos, and other individuals conspired to import nearly a kilogram of cocaine from the Dominican Republic to Lora’s residence in Hazleton. The conspirators were apprehended while opening the package of cocaine at Lora’s residence. Lora’s codefendant, Santos, previously was sentenced to 60 months of imprisonment for his role in the offense.
The investigation was conducted by Homeland Security Investigations, the U.S. Postal Inspectors, Customs and Border Patrol, and other state and local law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Grand Jury Charges Pasadena Man Who Allegedly Bought Maserati SUV with Fraudulently Obtained COVID-19 Jobless Relief MoneyRead the Press Release
LOS ANGELES – A Pasadena man is scheduled to be arraigned today on federal charges alleging he used stolen identities to fraudulently obtain unemployment insurance benefits, which he later used to purchase a Maserati luxury SUV.
A federal grand jury on November 17 named Robert Sloan Mateer, 30, in a five-count indictment charging him with possession of at least 15 or more unauthorized access devices with intent to defraud, aggravated identity theft, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of ammunition.
According to an affidavit in support of a criminal complaint filed in this case, during a traffic stop on October 1, Pasadena Police officers arrested Mateer and found inside his Maserati 17 unemployment benefits debit cards, several other credit and debit cards, approximately $197,711 in cash, more than 85 grams of methamphetamine, and a loaded firearm with no serial number.
Evidence gathered during the investigation determined that at least 14 of the 17 debit cards were loaded with at least $133,000 in unemployment insurance benefits, later determined to have been issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March, and had been issued in the names of third-parties, including identity theft victims.
The California Employment Development Department (EDD) distributes unemployment insurance benefits under the CARES Act, which expanded unemployment benefits to cover those who were previously ineligible, including business owners, self-employed workers, and independent contractors, who were put out of business or significantly reduced their services because of the COVID-19 pandemic.
According to the affidavit, Mateer admitted to obtaining the unemployment benefits debit cards by using “thousands” of identity profiles in his possession, that each debit card was loaded with approximately $14,500, and that he used the fraudulently obtained unemployment benefits to purchase the Maserati automobile.
Mateer also admitted that he withdrew the approximately $197,711 in cash found in his Maserati from ATMs across the Los Angeles area, the affidavit states. Mateer also allegedly withdrew approximately $13,840 from the EDD debit cards in his possession from September 19 to September 25.
Mateer was taken into federal custody on October 21 and was ordered detained pending trial.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Mateer would face a statutory mandatory minimum sentence of 17 years and a statutory maximum sentence of life in prison.
This matter was investigated by United States Postal Inspection Service.
Assistant United States Attorney Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section and Anna P. Farias-Eisner of the General Crimes Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section provided substantial assistance in this matter.
Fremont Resident Pleads Guilty to Smuggling Illegal High-Intensity Discharge Headlights into the U.S.Read the Press Release
OAKLAND - Chu-Chiang Ho, a/k/a Kevin Ho, pleaded guilty in federal court today to illegally importing automobile headlights that failed to meet U.S. safety standards, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge (San Francisco and Northern California) Tatum King. The plea was accepted by the Honorable Jon S. Tigar, U.S. District Judge.
Ho, 44, of Fremont, Calif., admitted that he has known since 2005 that the headlights and other headlight kit parts he had been importing from China were illegal, when he acknowledged in a report to the National Highway Transportation Safety Administration that the High-Intensity Discharge (“HID”) lights he imported from China were too bright and that they did not meet regulatory photometric requirements. Ho claimed at the time that he was discontinuing the sale of all illegal headlights. Nevertheless, for more than 13 years thereafter, he continued to smuggle the illegal parts into the United States and sell them through websites including HIDExtra.com, kalex.us, and opt7.com.
In the plea agreement, Ho admitted that the HID kit components that he imported are prohibited from importation into the United States under 49 U.S.C. §§ 30112 and 30115 because they violate Department of Transportation (DOT) safety laws, including those promulgated at 49 C.F.R. § 571.108, as they emit much brighter light than conventional headlights and can create a public safety hazard.
Ho also admitted that for more than a decade he engaged in various acts designed to conceal his scheme. For example, Ho changed company names numerous times to avoid detection by U.S. Customs and Border Protection (CBP) and he listed a variety of family members as corporate officers of his companies despite maintaining control over the business at all times. Ho also admitted that he misstated to CBP the nature of the merchandise he was importing to deceive the agency into believing the merchandise was legal.
Ho admitted that he profited from his scheme and used the proceeds of the illegal HID Kits to assist in his purchase of various properties in the Bay Area. He admitted that at least $1.7 million in proceeds from sales of his businesses was traceable to products he illegally smuggled into the United States.
A federal grand jury indicted Ho on March 14, 2019, charging him with seven counts of smuggling illegal headlights into United States, in violation of 18 U.S.C. § 545. Under the plea agreement, Ho pleaded guilty to one count. If Ho complies with the plea agreement, the remaining counts will be dismissed. Also as part of the plea agreement, Ho agreed to forfeit at least $1.7 million in criminal proceeds and all of the property he had smuggled into the United States that failed to meet the safety standards of 49 CFR 571.108.
Defendant was released on a bond secured by real property. Bail was set at $750,000.
Judge Tigar scheduled Ho’s sentencing for March 19, 2020. The maximum statutory penalty for a violation of 18 U.S.C. § 545 is twenty years’ imprisonment and a fine of $250,000. However, any sentence will 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.
Assistant U.S. Attorney Thomas R. Green is prosecuting the case with the assistance of Noble Hughes and Kay Konopaske. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations.
Former “First Lady” of Alexandria Church Pleads Guilty to Money LaunderingRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman pleaded guilty today to money laundering in connection with a scheme to defraud members of a Christian organization.
According to court documents, Brenda Millender, 60, was the wife of Pastor Terry Millender and the First Lady of Victorious Life Church in Alexandria. Terry Millender created a company called Kingdom Commodities Unlimited (KCU), which marketed itself as a Christian organization that was looking for investors to provide financing to help facilitate and broker Nigerian oil sales. Individual investors provided money to Terry Millender from 2013 to 2016 based on his false and fraudulent representations about how their money would be used, as well as material omissions about how funds would be disbursed.
Millender had access to various KCU bank accounts and she received cash from those accounts which had the effect of concealing the source and use of those funds. In some cases, checks written from KCU accounts had false and misleading descriptions on the memo lines, such as referencing the repayment of loans or office expenses, when in fact the person receiving the check had not loaned any money to KCU, was not an investor to KCU, and was not involved in KCU's operations.
Millender is scheduled to be sentenced on April 21, 2021. She faces a maximum penalty of 20 years in prison. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Jamar K. Walker and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-239.
Former Philadelphia Attorney Sentenced to 7 1/2 Years for Stealing from ClientsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Harris Roy Rosen, 65, of Sag Harbor, NY, was sentenced to 90 months in prison and one year of supervised release by United States District Court Judge Wendy Beetlestone for perpetrating a scheme to steal over $796,000 from clients who had entrusted him with their insurance settlement and estate funds.
The defendant pleaded guilty in March 2020 to charges of wire fraud, aggravated identity theft, and tax evasion. From approximately 2013 through 2017, he perpetrated a complex fraud scheme through which he stole from clients of his Philadelphia law firm, Rosen and Rosen PC, to support his lavish lifestyle, including multiple homes and a luxury vehicle. The defendant routinely lied to clients about the status of their funds; forged clients’ names on settlement checks to deposit them into his personal bank accounts; forged checks to steal money from a client; and created fake bank statements to lull clients into believing that their settlement or estate funds were in appropriate bank accounts waiting to be disbursed. Ultimately, many clients did not get any of the settlement or estate funds to which they were entitled. To conceal these crimes and the resulting illicit income, Rosen also intentionally failed to file tax returns resulting in a tax loss of over $260,000.
“The defendant committed serious criminal offenses for years, stealing funds from twenty clients – I repeat, twenty clients - who trusted him with their money,” said First Assistant U.S. Attorney Williams. “As a lawyer, Rosen was required to abide by the highest ethical standards with regard to his clients, but instead he greedily took advantage of them. This office will continue to protect the public against fraudsters like Rosen who abuse their positions of trust.”
“It seems like Harris Rosen worked harder to steal his clients’ settlement and estate money than he did in securing those funds,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “For years, he told lies upon lies, forging checks and bank statements, all to support an extravagant lifestyle to which he apparently felt entitled. The greed and abuse of trust here are stunning. Today’s sentencing means Rosen is finally being held accountable for his actions. The FBI will continue to work to find justice for the victims of financial fraud.”
“Mr. Rosen violated the trust placed in him by his clients when he deceived and stole from them; all to enrich himself,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “While we enforce the nation's tax laws, we also take particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. Today, justice is served and Mr. Rosen has been held fully accountable for his crime.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Lesley S. Bonney.
Former Nurse Sentenced to Federal Prison for Drug ConspiracyRead the Press Release
Memphis, TN – Kathryn Nikole Russell, 41, of Memphis, has been sentenced to 29 months in federal prison for conspiracy to distribute and dispense controlled substances. The defendant was charged in an April 2019 indictment as part of the first Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown. https://www.justice.gov/usao-wdtn/pr/us-attorney-dunavant-along-federal-state-and-local-partners-continue-efforts-combat D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented at sentencing, Russell was an advance practice registered nurse licensed by the State of Tennessee with a Drug Enforcement Administration (DEA) Registration Number. Between March and April of 2018, Russell issued prescriptions for controlled substances, including the Schedule II controlled substances of Oxycodone and Hydrocodone, and the Schedule IV controlled substances Alprazolam and Clonazepam, at Dillon Russell Health Care Professionals, Inc. in Memphis, outside the usual scope of professional practice and without a legitimate medical purpose. The illegitimate prescriptions included issuing prescriptions for Schedule II drugs for friends and others with whom she had no medical relationship and without ever seeing the patients or conducting examinations, prescribing dangerous combinations of drugs, and failing to monitor patients for signs of addiction.
On April 16, 2019, Russell pleaded guilty to conspiracy to unlawfully distribute controlled substances. Russell wrote prescriptions for opioids and dangerous drug cocktails that had no legitimate medical purpose and that were outside the usual course of professional practice. In an eight-week period, Russell prescribed more than 7,800 oxycodone pills, more than 6,000 benzodiazepine pills, and more than 1,000 pills of carisoprodol. https://www.justice.gov/usao-wdtn/pr/second-appalachian-region-prescription-opioid-strikeforce-takedown-results-charges.
On December 10, 2020, U.S. District Court Judge Thomas L. Parker sentenced Russell to 29 months in federal prison followed by three years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Opioid misuse and abuse is an insidious epidemic, created in large part by the over-prescribing and diversion of potent opioids. We will not stand by and allow the harmful and oftentimes deadly practice of over-prescribing and diversion of highly addictive drugs to continue unchecked. Along with our law enforcement partners, the U.S. Attorney’s Office will hold accountable any medical personnel who misuse their positions of trust to blatantly disregard and endanger others’ very lives for their own financial gain."
The Drug Enforcement Administration (DEA), along with the Shelby County Sheriff’s Office, investigated the case.
Trial Attorney Jillian Willis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Dean DeCandia of the Western District of Tennessee prosecuted the case on behalf of the government.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 50 million pills. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Massachusetts State Police Troopers Charged with Conspiracy to Embezzle Overtime Funds and Wire FraudRead the Press Release
BOSTON – Former Massachusetts State Police (MSP) Lieutenant Daniel J. Griffin and former MSP Sergeant William W. Robertson were arrested today and charged in federal court in Boston with conspiracy, federal programs embezzlement and wire fraud in connection with an overtime scheme dating back to 2015. Griffin was also charged with filing false tax returns and wire fraud related to his scheme to defraud a private school.
Griffin, 57, of Belmont, was indicted on one count of conspiracy, one count of theft concerning a federal program, eight counts of wire fraud and 11 counts of assisting in filing false tax returns. Griffin was arrested this morning and will appear in federal court in Boston this afternoon.
Robertson, 58, of Westborough, was indicted on one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud. Robertson was also arrested this morning and will appear in federal court in Boston this afternoon.
According to the indictment, from 2015 through 2018, Griffin, Robertson, and other troopers in the Traffic Programs Section at State Police Headquarters in Framingham conspired to embezzle thousands of dollars in federally funded overtime by regularly arriving late to, and leaving early from, overtime shifts funded by grants intended to improve traffic safety. During the course of the conspiracy, Griffin made and approved false entries on police forms and other documentation to conceal and perpetuate the fraud.
When MSP overtime misconduct came to light in 2017 and 2018, Griffin, Robertson and their coconspirators allegedly took steps to avoid detection by shredding and burning records and forms. It is alleged that after an internal inquiry regarding missing forms, Griffin submitted a memo to his superiors that was designed to mislead them by claiming that missing forms were “inadvertently discarded or misplaced” during office moves.
It is further alleged that while perpetuating the overtime scheme, Griffin spent significant time running his security business, KnightPro, even during hours that Griffin was collecting his regular MSP pay and overtime. From 2012 to 2019, Griffin collected almost $2 million in KnightPro revenue. Of that total, it is alleged that Griffin hid over $700,000 in revenue from the IRS and used hundreds of thousands of dollars in KnightPro income to fund personal expenses, such as golf club expenses, car payments, private school tuition and expenses related to his second home on Cape Cod.
Griffin was also charged with defrauding a private school attended by two of his children from at least 2016 to 2019 by concealing his KnightPro income and filing materially misleading financial aid applications, which understated his income and assets by hundreds of thousands of dollars. Despite Griffin’s lucrative MSP salary and KnightPro business, Griffin obtained over $175,000 in financial aid from the private school over the course of several years.
“Today’s charges involve losses for the taxpayers, and also for the Massachusetts State Police, a premier law enforcement institution that must do a better job self-policing and eliminating this kind of misconduct,” said U.S. Attorney Andrew Lelling. “Everyone must be treated equally under the law, and we will keep doing these cases until this kind of abuse stops - abuse that is deeply unfair to the vast majority of law enforcement officers who are doing their job the right way, already under difficult circumstances.”
“Today’s arrest and charges demonstrates the Department of Transportation Office of Inspector General’s (DOT OIG) commitment to ensuring recipients of DOT grants and funds uphold the high standard of stewardship that every American taxpayer expects and deserves,” said Douglas Shoemaker, Special Agent-in-Charge, DOT OIG-Northeast Region. “We will continue working with our Federal and State law enforcement and prosecutorial partners to pursue individuals who intentionally abuse federally-funded programs for their personal benefit and enrichment.”
“Today we arrested two former state troopers for their alleged roles in a blatant overtime fraud scheme and their attempts to cover it up. Both men are accused of abusing their positions to steal tens of thousands of dollars in scarce federal grants while neglecting to enforce important traffic safety laws,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “In Lt. Griffin’s case, we believe he even went as far as underreporting his income to the IRS and his children’s private school to increase the amount of financial assistance they received. This deliberate abuse of authority will not be tolerated, and the FBI will continue to pursue anyone who fraudulently siphons public funds.”
“The defendants were members of the law enforcement community which is incredibly troubling,” said Acting Special Agent in Charge Joleen Simpson of the Internal Revenue Service - Criminal Investigation Division. “The residents of Massachusetts put their trust in the defendants to uphold the law, and that trust, was broken. But let me be absolutely clear. These charges should in no way be a reflection on the more than 2,000 Massachusetts troopers who serve the Commonwealth with honor and integrity every day.”
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of federal program fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S Attorney Lelling, DOT OIG-Northeast Region SAC Shoemaker, FBI Boston SAC Bonavolonta and IRS-CI Acting SAC Simpson made the announcement today. Assistant U.S. Attorney Dustin Chao of Lelling’s Public Corruption Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Clovis Pastor Sentenced to over 7 Years in Prison for Real Estate Development Fraud SchemeRead the Press Release
FRESNO, Calif. — Sherman Smith, 74, of Monterey, was sentenced today to seven years and three months in prison and ordered to pay $2,187,000 in restitution for a scheme that defrauded church congregants and others, U.S. Attorney McGregor W. Scott announced.
In sentencing Smith, U.S. District Judge Dale A. Drozd said, “Mr. Smith is a con-man and a thief.”
“Smith’s actions in this case went far beyond ‘misappropriation,’” said U.S. Attorney Scott. “In asking for church donations to support his scheme, he targeted widows for their deceased husband’s life insurance money; he asked for money to be withdrawn from retirements accounts; he damaged marriages and family relationships; he took away parents’ dreams of affording college for their children, and he destroyed lives. Today’s sentence is the second federal sentence for Smith, who previously served 37 months in prison for securities fraud that caused a loss of over $5 million with 38 different victims. Our office is committed to protecting the public from financial predators like Smith.”
“Smith abused his trusted role as executive pastor of a community church by diverting funds intended to help the church and congregation to fund his personal and business expenses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to investigating allegations of significant financial crime, especially those involving individuals who exploit trusted, valued relationships. While today’s sentence offers some justice to Smith’s victims, many face a long journey to financial recovery from the hardship this scheme created. We ask the public to commit to researching all financial investment opportunities, regardless of who is proposing or coordinating the investment.”
On Sept. 18, Smith, the executive pastor of a church in Clovis, pleaded guilty to wire fraud. According to court documents, Smith induced investors, including church congregants, to give money to the church by representing that the money would be used to finance a real estate development project for the benefit of the church. Smith made appeals from the pulpit, via email, and in person for monies to pay off the church’s mortgage and to fund an income-generating development. Smith collected cash, checks, and rolled-over retirement accounts to fund the church’s project, but he did not disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures. Smith defrauded investors of more than $2 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers prosecuted the case.
Florida Men Charged with Stealing Ventilators Intended for Critically Ill Covid-19 Patients in El SalvadorRead the Press Release
Miami, Fl. -- Two Miami residents accused of stealing 192 U.S. government-owned medical ventilators worth about three million dollars were indicted on federal charges. According to court documents, the ventilators were heading to a COVID-19 intensive care facility in El Salvador as part of a United States Government COVID-19 aid program when they were stolen in South Florida, while in transit.
The indictment charges Yoelvis Denis Hernandez, a/k/a "Guajiro," 42, and Luis Urra Montero, a/k/a "Flaco," 24, with federal conspiracy, possession of stolen goods being shipped interstate, and theft of government property. According to the indictment and other court documents, on August 9, 2020, Hernandez and Montero stole a tractor trailer loaded with 192 medical ventilators, during its transport by truck to Miami International Airport. USAID had acquired the ventilators and was sending them to the Government of El Salvador as part of an aid program to treat critically ill COVID-19 patients there. According to court documents, Hernandez and Montero stole the trailer from a lot where the driver had left it overnight. Following an investigation, law enforcement found most of the stolen ventilators.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Ann Calvaresi Barr, Inspector General, United States Agency for International Development, Office of Inspector General ("USAID-OIG"), made the announcement.
FBI, FBI Miami's Major Theft Task Force, and USAID-OIG investigated this case, with assistance from Boynton Beach Police Department, Miami Dade Police Department, Medley Police Department, City of Miami Gardens Police Department, and Broward Sheriff's Office. Assistant U.S. Attorney Lindsey Lazopoulus Friedman is prosecuting it.
An indictment is merely a charging document and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud Hotline at 866-720-5721.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20252.
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Fitchburg Woman Pleads Guilty to Social Security, MassHealth and Food Stamp FraudRead the Press Release
BOSTON – A Fitchburg woman pleaded guilty today to fraudulently receiving Social Security disability benefits, MassHealth and Supplemental Nutrition Assistance Program (SNAP) benefits.
Rhonda Bernal, 62, pleaded guilty to three counts of theft of public funds and two counts of making false statements. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 5, 2021. In July 2019, Bernal was arrested and charged.
Over a period of approximately eight years, Bernal stole $71,462 in Social Security benefits, $6,444 in MassHealth benefits and $13,505 in SNAP benefits (previously known as Food Stamps). In February 2015, Bernal falsely informed the Massachusetts Department of Transitional Assistance that she was the only person in her household when, in fact, she was living with her husband. In addition, Bernal falsely told Social Security in April 2016 that she and a relative, who was not her husband, were the only members of her household.
The charges of theft of public funds provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making false statements provide for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Fake “Model Scout” Is Sentenced to 19 Years for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Thursday, December 10, 2020, U.S. District Judge Martin Reidinger sentenced Keith Eric Saunders, 50, of Brevard, N.C. to 19 years in prison for production of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Saunders was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina, and Chief John Phillip Harris, Jr. of the Brevard Police Department join U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, sometime between December 2017 and January 2018, Saunders met the female victim in Brevard. At the time, the victim was 15 years old. Saunders told the victim that he was a model scout and a photographer for a New Jersey-based modeling agency called “K.” Saunders was not a model agent and “K” did not actually exist. Court records show that, on multiple occasions, Saunders contacted the victim and told her that he needed photographs of her, at the request of the modeling agency. The victim met Saunders and Saunders used his phone to take pictures of the minor. On February 28, 2018, Saunders once again made contact with the victim, and told her that “K” wanted “more pics” of her. Saunders then took the victim, who by then had turned 16, to an apartment in Brevard, and proceeded to take photos of the victim that depicted sexually explicit conduct. According to court records, Saunders proceeded to have a forcible sexual encounter with the victim.
On October 18, 2019, Saunders pleaded guilty to production of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended HSI and the Brevard Police Department for their investigation of this case.
The case was prosecuted by the U.S. Attorney’s Office in Asheville.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Failure to Surrender to Serve Sentence Results in New Federal Conviction and SentenceRead the Press Release
A woman who failed to surrender to serve a federal prison sentence was sentenced today to more than one year of additional prison time.
Angela Hermine Walters, age 45, from Cedar Rapids, Iowa, received the prison term after a September 4, 2020 guilty plea to one count of failing to surrender to the United States Marshal’s Service to begin serving a term of imprisonment that was imposed in May 2020.
Walters was first sentenced in 2009 to serve a sentence of 85 months’ imprisonment for a federal drug crime in case number 08-CR-04060. Walters was released from custody and went on supervised release in 2014. Walters’s supervised release in that case was revoked on a number of occasions. On August 24, 2019, Walters escaped from her place of confinement and was prosecuted for escape in case number 19-CR-0095. After her prison sentence, she was again placed on supervised release. On May 21, 2020, the Court revoked Walters’s supervised release, sentenced her to serve five months’ imprisonment, and allowed her to self-surrender to the United States Marshal’s Service on May 28, 2020. At her guilty plea in this case, Walters admitted she did not surrender as required and was later arrested on May 29, 2020.
Walters was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Walters was sentenced to 15 months’ imprisonment and she must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Walters is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and investigated by United States Marshal’s Service in conjunction with the Eastern Iowa Fugitive Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-0056.
Factory Manager at USP-Marion Pleads Guilty After Hiding Outside Payments from Government ContractorRead the Press Release
Shawn E. Whitecotton, 49, of Herrin, Illinois, pleaded guilty today to a two-count felony information charging him with making false statements on government forms. As part of his guilty plea, Whitecotton admitted concealing from the federal government thousands of dollars he received from a government contractor. Sentencing will be held at the federal courthouse in Benton, Illinois, on March 11, 2021, at 10:00am. Whitecotton faces up to 5 years in prison and a fine up to $250,000 on each count.
According to court documents, Whitecotton was the factory manager of the UNICOR manufacturing facility operating within the federal penitentiary at Marion, Illinois (USP-Marion).1 In 2014, USP-Marion’s UNICOR facility contracted with a private company, PGB Hangers, LLC ("PGB"), to manufacture wire clothing hangers. As the UNICOR factory manager, Whitecotton was responsible for overseeing the contract. After the work began, Whitecotton convinced PGB to hire him as a salesperson. He created a new entity – "TRCB, LLC" – to engage in his side job and subsequently received over $20,000 in payments from PGB.
1 UNICOR is a wholly-owned government corporation administered by the Bureau of Prisons (BOP) that operates manufacturing facilities in certain BOP facilities. The goal is to prepare federal inmates for successful reentry into society by providing them with job training and work skills. UNICOR hires BOP inmates to work in its factories, which manufacture a variety of goods at different locations. In some circumstances, UNICOR contracts with private companies to provide product manufacturing services.
As a supervisory employee in the executive branch of the United States, Whitecotton was required to annually report his financial interests, any outside employment activities, and any positions held outside his role at the prison. The purpose of this requirement was to uncover any possible conflicts of interest a supervisory employee may have in the performance of his or her duties. The forms require disclosure of any sources of income over $200.
In court documents, Whitecotton admitted that he knowingly and willfully failed to disclose his work for PGB and the payments he received as outside income. Whitecotton also admitted that when it appeared his unlawful conduct would be discovered, he took steps to suppress or interfere with investigators’ discovery of the truth, including by unlawfully instructing a witness to lie about Whitecotton’s involvement with TRCB and receipt of payments from PGB.
The investigation was conducted by the FBI and Department of Justice Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Dominican National Pleads Guilty to Passport and Social Security FraudRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston in connection with fraudulently using the identity of a U.S. citizen to apply for a passport and driver’s license.
Wagner Pimentel Soto, 41, who previously resided in West Roxbury, pleaded guilty to one count of making a false statement in a passport application and two counts of fraudulent use of a Social Security number. U.S. District Judge Douglas P. Woodlock scheduled sentencing for April 7, 2021.
According to court records, in February 2019, Pimentel Soto applied for a U.S. passport at a U.S. Post Office in Everett using the name and Social Security number of a U.S. citizen. In April 2018, Pimentel Soto applied for a Massachusetts driver’s license at the Haymarket branch of the Registry of Motor Vehicles in Boston. In support of his applications, Pimentel Soto submitted a variety of identity documents bearing the name, date of birth and Social Security number of the victim.
This case was investigated by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF),which is comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
The charge of making a false statement in a passport application provides for a sentence of up to 10 years in prison, and the charge of fraudulent use of a Social Security number provides for up to five years in prison. Both charges provide for up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of the U.S. Department of State's Diplomatic Security Service; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
Doctor Pays $153,000 to Resolve Allegations of Overprescribing Opioids at his Escondido ClinicRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – December 11, 2020
SAN DIEGO – Escondido pain clinic doctor Bradley Chesler, M.D., has paid the United States $153,000 to resolve allegations that he overprescribed opioids. Dr. Chesler is a board-certified physiatrist who operates a pain clinic in Escondido, California. This settlement stems from the United States’ investigation into whether Dr. Chesler illegally prescribed opioids to his patients in violation of the Controlled Substances Act.
Pursuant to the Controlled Substances Act, doctors may write prescriptions for opioids only for a legitimate medical purpose while acting in the usual course of their professional practice. Based on its investigation, the United States alleged that from January 1, 2014 to August 31, 2019, Dr. Chesler wrote opioid prescriptions that violated the Controlled Substances Act, which included prescriptions for fentanyl, hydromorphone, methadone, and oxycodone. The United States further alleged that Dr. Chesler prescribed opioids while he concurrently prescribed benzodiazepines, and he prescribed to some patients a combination of at least one opioid, one benzodiazepine, and one muscle relaxant. Drug abusers colloquially refer to the opioid, benzodiazepine, and muscle relaxant combination as the “Trinity” because of its rapid euphoric effects. These drug combinations are known to increase the risk of abuse, addiction, and overdose.
The investigation exemplifies the Department of Justice’s willingness to investigate doctors who may be overprescribing opioids while treating patients who suffer painful conditions. Health care providers treating patients who suffer from pain must still only prescribe opioids in accordance with recognized and accepted medical standards. Indeed, public health experts have long warned health care providers that overdose risk is elevated in patients receiving medically prescribed opioids, particularly those receiving high dosages. As such, it has been recommended that health care providers carefully track the potency of opioids prescribed to patients by noting the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. Among other things, tracking MMEs advances better practices for pain management by reinforcing the need for providers to consider alternatives to using high-dosage opioids to treat pain, and to appropriately justify decisions to use opioids at dosages that place patients at high risk of addiction, abuse, and overdose. Furthermore, prescribing high dosages increases the risk that patients will divert opioids to people who were not prescribed them.
Based on its investigation, the United States alleged that Dr. Chesler prescribed large quantities of opioids to his patients that reached high daily MME levels (sometimes even exceeding 180 MME). The United States further alleged that Dr. Chesler failed to properly address aberrant urine drug test results when prescribing opioids.
“Doctors have an important responsibility to properly treat their patients and not overprescribe opioids,” said U.S. Attorney Robert Brewer. “When doctors or other health care providers illegally prescribe opioids outside of the law, my office will pursue the appropriate legal remedy and protect our citizens. As we have consistently demonstrated, our prosecutors will continue to use all available tools to combat the serious opioid epidemic.” Brewer praised Assistant U.S. Attorney Dylan Aste and DEA agents for their excellent work on this case.
DEA Special Agent in Charge John Callery said, “Although 99 percent of medical professionals abide by DEA guidance and federal law, we will investigate those who put illicit profits before their oaths and bring them to justice.”
To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499, or visit the DEA’s website (https://www.deadiversion.usdoj.gov/) and click on “Report Illicit Pharmaceutical Activities.”
Assistant U.S. Attorneys Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California handled this matter along with DEA investigators.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Delaware County Man Detained on Child Pornography Charges for Preying on Young Boys over Online Gaming SystemsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Geoffrey Hines, 34, of Upper Darby, PA, was arrested and charged by Indictment with 29 counts of child pornography offenses. The defendant made his initial appearance in federal court this afternoon in front of United States Magistrate Court Judge Richard Lloret, who ordered him detained pending trial.
The Indictment charges Hines with multiple counts each of enticing a minor to engage in sexually explicit conduct, manufacturing and attempting to manufacture child pornography, and possession of child pornography. According to court documents, for at least five years, the defendant preyed on young boys over their online games like Fortnite and Minecraft using X-box and PlayStation systems, communicating with them for days at a time and ultimately convincing them to live-stream sexually explicit images of themselves. In most instances Hines disguised his true identity so that the children were unaware that the person they were communicating with was actually an adult man in his thirties who was secretly recording them as they exposed themselves. In some cases, if a child was reluctant to remove his clothes, Hines allegedly made donations to the child’s gaming account or sent the child a code to redeem a gift card if the child complied with his demands. Dozens of young boys ranging in age from 8 to 13 years old were allegedly victimized by this defendant, who was also found to be in possession of more than 47,000 images and videos of child pornography at the time of his arrest.
“The defendant’s alleged conduct in this case is nightmare scenario for parents of children who like to play games online,” said First Assistant U. S. Attorney Williams. “Here, Hines is charged not only with sexually exploiting his many victims online, but also surreptitiously recording these children, forever preserving their exploitation and trauma. To parents out there whose children interact with third parties during online gaming, please speak with them frequently about the dangers and pay very close attention to their online activities and communications. And to anyone out there who is considering using online gaming platforms to prey on children in this disgusting manner, you can be confident that we will find you, we will prosecute you, and we will convict you.”
“The internet connects our homes and families to the world — and vice versa,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In doing so, unfortunately, it offers a potential way in for those despicable individuals looking to prey on children. Geoffrey Hines allegedly victimized boys as young as eight, plying them with gifts in exchange for sexually explicit images. It’s a disturbingly common scenario, one the FBI and our partners are working each and every day to combat. We’d urge parents to talk directly with their children about cybersafety and the risk of online predators. If you need some support in doing so, you can find more information and resources at fbi.gov/sextortion.”
If convicted, the defendant faces a maximum possible sentence of life imprisonment.
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation, the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defense contractors charged and sentenced for Turkey-based defense contracting fraud schemeRead the Press Release
ATLANTA – Multiple defense contractors have been charged and/or sentenced for participating in a multi-million-dollar defense contracting fraud scheme based out of Turkey.
“Our nation relies on the defense contracting process to carry out important duties,” said U.S. Attorney Byung J. (“BJay”) Pak. “When contractors circumvent the rules they agreed to follow, they jeopardize the lives of those servicemen they signed up to serve.”
“This conspiracy to steal military technology was not only fraudulent, it endangered lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is dedicated to working with our federal partners to seek justice for anyone who would subvert the defense contracting process, but more importantly, threaten the safety of the men and women in the U.S. military.”
“The Bureau of Industry and Security, Office of Export Enforcement will aggressively pursue violators of U.S. export controls,” said Acting Special Agent in Charge Alan Berkowitz. “Working closely with our law enforcement partners, our joint investigation disrupted an ongoing conspiracy to divert U.S. military technology and protect our warfighters.”
“Compromising the Department of Defense contracting process threatens the safety of our warfighters and the strength of our national defense,” said Special Agent in Charge Cynthia A. Bruce, DCIS Southeast Field Office. “We will aggressively pursue those who abuse the contracting system and hold them accountable for their criminal schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Murat Gonenir, along with at least two other defendants, participated in an extensive Turkey-based scheme to defraud the U.S. military. The defendants applied for and obtained access to a sensitive Department of Defense (“DOD”) contracting database housing some of the military’s most sensitive schematics, which is only lawfully accessible by U.S. and Canadian citizens or permanent residents.
Once the defendants obtained access to the database, they downloaded thousands of sensitive schematics for parts such as a handle casting for an 105 millimeter tray assembly for an AC-130H Gunship, and catapult/arresting gear for Nimitz and Forrestal Class aircraft carriers. Gonenir obtained access to this sensitive database by falsely claiming he was a U.S. or Canadian citizen or permanent resident.
The defendants offered bids on numerous defense contracts for these sensitive schematics that required them to produce these parts in the United States. Instead, they produced these parts in Gonenir’s manufacturing plants in Turkey and then falsely claimed to the DOD that the parts had been lawfully produced in the United States. The DOD paid millions of dollars to the various defense contractors who took part in this scheme as a result of these false statements.
DOD testing revealed that various parts produced at Gonenir’s plants were of such inferior design that they could have resulted in serious injury or death to U.S. military personnel if the parts had been put into production. Several members of the conspiracy were told that DOD testing had determined that at least one of the parts had failed inspection. However, the defendants kept producing parts in Turkey and falsely claiming the parts were produced in the United States.
The defendants and their sentences are as follows:
- Murat Gonenir, 59, of Cankaya, Turkey was sentenced to three years, five months in prison and three years of supervised release, and he was ordered to pay $1,487,950.77 in restitution and a special assessment of $100.
- Batur Ustol, 61, of Atlanta, Georgia, was sentenced to two years and six months in prison and three years of supervised release for his role in the conspiracy, and he was ordered to pay $100,000 in restitution and a special assessment of $100. In a related matter.
- Suleyman Sevket Bayraktar, 43, of Fountain Valley, California, was sentenced to six months in prison, six months of home confinement, and three years of supervised release, and he was ordered to pay $161,925 in restitution and a special assessment of $100.
This case was investigated by the Department of Commerce – Bureau of Industry & Security, Federal Bureau of Investigation, and the Department of Defense Criminal Investigative Service.
Assistant U.S. Attorney Thomas J. Krepp and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Section prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cupertino Man Sentenced to Four Years in Prison for Embezzling More Than $7.5 Million in Church FundsRead the Press Release
SAN JOSE - Jonathan Chang, an elder at a South Bay church, was sentenced to 48 months in prison for stealing more than $7.5 million in donated funds intended for the church, announced United States Attorney David L. Anderson and Federal Bureau of Investigation and Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable Edward J. Davila, United States District Judge.
The sentence follows a guilty verdict after a five-week trial in United States District Court. The evidence at trial demonstrated that Jonathan Chang, 64, of Cupertino, California, engaged in a scheme to defraud a wealthy donor of money intended to support the Home of Christ 4 Christian Church (HOC4), located in Saratoga, California. Chang, who served as an elder responsible for managing the finances of the church, furthered his scheme by creating entities with names similar to the church. He then directed more than $6.7 million from the donor to his own organizations rather than to the HOC4. In addition, Chang embezzled more than $750,000 from HOC4-related bank accounts in his scheme to defraud.
The jury concluded that Chang solicited funds from the wealthy donor for the stated purpose of acquiring a new HOC4 church house and conducting missionary work. In response to Chang’s requests, the donor provided $2.25 million in one-time donations, a $3 million loan to acquire the new building, and approximately $1.5 million total in monthly donations.
Chang did not use the funds as intended and directed by the donor. Instead, he personally enriched himself with the money. For example, Chang used the funds to make all-cash purchases of multiple houses for himself in the Bay Area, to purchase luxury vehicles, to obtain 15 timeshare interests, to invest in commercial real estate, and to pay for his health insurance and athletic club dues. The evidence also showed that Chang purchased a home in Fremont with the donor’s funds and then leased the house to one of the donor’s companies, thereby personally collecting rent on a house purchased with stolen funds the donor earmarked for the church. Similarly, Chang purchased another home with donor funds intended for religious purposes but ultimately rented the home to his son and collected the rent. With an average annual salary reported as $65,000, Chang purchased millions of dollars in real property, owned a Mercedes, and lived a luxurious life. In total, between 2004 and January 2016, Chang obtained more than $7.5 million in funds from the donor and HOC4.
The evidence at trial demonstrated that Chang created fraudulent entities to conceal the wire fraud scheme and forwarded the funds to a variety of bank accounts he controlled before spending the money on personal purchases and investments. Documents submitted in connection with the sentencing established that Chang was able to buy three additional houses with over $1.6 million in a money laundering scheme that involved transferring funds back to the United States from overseas bank accounts.
When discussing the reasons for imposing the 48-month prison term, Judge Davila made clear that Chang’s decade long scheme was an “enormous betrayal” of his church and his community.
On February 4, 2016, a federal grand jury indicted Chang and his wife, Grace Chang, 60, charging each with one count of conspiracy to commit wire or mail fraud, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); and three counts of money laundering, in violation of 21 U.S.C. § 1956(a). The jury found Jonathan Chang guilty of all the wire fraud and money laundering counts. The jury did not reach a verdict as to the two charged conspiracy counts, nor did the jury reach a verdict as to the counts filed against Grace Chang.
In addition to the prison term, Judge Davila also ordered Jonathan Chang to serve a three year term of supervised release to begin after the prison term. He was also ordered Chang to pay $11,701,262 in restitution to his victims and to forfeit his interest in five real properties which will result in a forfeited amount of at least $8,841,749.
Assistant U.S. Attorneys Patrick R. Delahunty and Sarah E. Griswold are prosecuting the case with the assistance of Susan Kreider. Assistant U.S. Attorney David Countryman assisted in the forfeiture. The prosecution is the result of an investigation by the FBI.
Convicted Embezzler Charged with Illegal Sexual Conduct and Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that Marcin Stanislaw Garbacz of Rapid City, South Dakota, who was convicted in March of 2020 on 65 counts of wire fraud, money laundering, transfer of stolen money, and filing false tax returns, has now been charged in federal district court with Engaging in Illicit Sexual Conduct in a Foreign Place and Possession of Child Pornography.
Garbacz, age 41, was charged on February 19, 2020, in a sealed indictment. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 24, 2020, and pleaded not guilty to the new charges.
The maximum federal prison time upon conviction for Engaging in Illicit Sexual Conduct in a Foreign Place is 30 years, and the maximum federal prison time upon conviction of Possession of Child Pornography is 10 years. Both charges also include a penalty of a potential $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Garbacz, while traveling in Poland, video recording an unclothed minor. Additionally, Garbacz possessed child pornography on an electronic device.
The charges are merely an accusation and Garbacz is presumed innocent until and unless proven guilty.
The investigation is being conducted by Federal Bureau of Investigation. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Garbacz was sentenced on November 23, 2020, to 7 years and 9 months in custody on the previous charges.
Garbacz was detained pending trial.
Colombian National Sentenced for Cocaine Trafficking and Illegal ReentryRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Boston for cocaine trafficking and illegal reentry charges.
Ricardo Lopera-Arteaga, 59, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to five years in prison and four years of supervised release. Lopera-Arteaga will be subject to deportation proceedings upon completion of his sentence. In August 2020, Lopera-Arteaga pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute 500 grams or more of cocaine and one count of unlawful reentry of a deported alien. He has been in federal custody since his arrest on Oct. 9, 2019 with co-defendant Diego Sanchez, 34, who pleaded guilty to similar charges and was sentenced to 27 months in prison.
Lopera-Arteaga and Sanchez conspired together to sell one kilogram of cocaine to a cooperating witness in East Boston in October 2019. Sanchez also engaged in two sales of cocaine to the same cooperating witness on Sept. 10 and 27, 2019 in East Boston. On Oct. 9, 2019, law enforcement agents observed both men meet and walk together towards a spot arranged for the drug transaction. Agents arrested both men a short time later and seized one kilogram of cocaine from Lopera-Arteaga.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Charlotte Woman Pleads Guilty to Orchestrating A $1.9 Million Debt Collection SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Carissa Eugenia Brown, 33, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to orchestrating a $1.9 million debt collection scheme.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
According to filed plea documents and today’s plea hearing, from 2015 to July 2020, Brown executed a fraudulent debt collection scheme that defrauded hundreds of victims located in North Carolina and elsewhere in the United States. Court records show that, during the relevant time period, Brown had registered three companies in North Carolina, which she used in furtherance of the scheme: Accredited Recovery Solutions, LLC, (a/k/a Accredited RecoveryNetwork); Elite Credit Adjusters, LLC (a/k/a Elite Credit Network); and Martin Recovery Group, LLC (a/k/a Martin Recovery, P.C. and the Law Office of Martin and Associates).
As Brown admitted in court today, she operated her fraudulent debt collection scheme by contacting individuals who had been sued by various creditors for their outstanding debt and falsely represented that she was authorized to collect the debt on behalf of those creditors. Brown further admitted that she generally offered victims to “settle” the outstanding debt for a reduced amount, but only if the victims accepted the offer and paid the reduced amount in full, or began making immediately to one of Brown’s companies. As court records show, Brown often mailed victims official-looking documents, including a purported settlement agreement. Victims then made a lump-sum payment, or several payments, to Brown and her companies, believing that doing so would resolve their debt and outstanding court case, only to later learn that Brown was not authorized to collect the debt and they still owed the full debt to the actual creditor.
To further induce victims to comply with the debt repayment demands, Brown sent correspondence to victims on letterhead that implied the communication was coming from a law firm, and left voicemails for victims falsely representing that she was calling from a law firm. In addition, Brown also employed threatening and harassing pressure tactics to fraudulently induce victims to pay her, including threatening to garnish victims’ wages, to seize victims’ bank accounts, or to file judgments in court if payment on the debt was not received.
As a result of the false and fraudulent representations and threatening and harassing tactics used by Brown, court documents show that hundreds of individuals throughout the United States were fraudulently induced to pay Brown and her companies more than $1.9 million. This resulted in victims being placed in the untenable position of either having to pay their debts twice, or face the financial consequences for failing to pay the true creditor.
Brown has pleaded guilty to wire fraud and money laundering and was released on bond. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The money laundering charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or a fine of not more than twice the amount of criminally derived property. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney Murray thanked the IRS-CI and USPIS for handling the investigation.
Assistant United States Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Charlo man sentenced to prison for sexually abusing minor girls in Lodge GrassRead the Press Release
BILLINGS — A Charlo man convicted at trial of sexually abusing minor girls in Lodge Grass on the Crow Indian Reservation was sentenced today to 70 months in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
After a three-day trial, a jury on July 13 found Jack Preston Coversup, 58, guilty of sexual abuse of a minor and abusive sexual contact.
U.S. District Judge Susan P. Watters presided.
During trial, the prosecution presented evidence that Coversup had sexually molested minor girls in a Lodge Grass residence from about December 2015 to February 2016. The victims were under the age of 16.
Assistant U.S. Attorneys Tom Godfrey and Lori Suek prosecuted the case, which was investigated by the FBI.
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Camden Man Admits Trafficking in High-Dose Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A Camden man today admitted conspiring to distribute and selling high-dose oxycodone pills in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.
Erick Bell, 48, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone.
According to documents filed in this case and statements made in court:
Bell admitted that on multiple occasions from January 2020 to March 2020, he worked with Rocco DePoder, 67, of Gloucester City, New Jersey, Alfred Kee Jr., 52, of Blackwood, New Jersey, and others to sell oxycodone in and around Camden and Gloucester City. For example, Bell admitted that on Feb. 3, 2020, he obtained 160 80 mg. oxycodone pills from Kee, and sold DePoder 60 of the pills for $25 each and 100 of the pills to Maurice Williams for $24 each. Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
Both charges carry a maximum penalty of 20 years in prison and a fine of $1 million, or twice the gross loss or gain caused by the offenses, whichever is greater. Sentencing is scheduled for April 12, 2021.
Eight other defendants – DePoder; Kee; Marcus Rushworth, 47, and Kenneth Rushworth, 59, both of Gloucester City; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; Steven Walker, 47, and Alexander Siaca, 55, both of Camden – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the U.S. Attorney’s Office’s Camden Office and Sara F. Merin of the Newark Office.
Buffalo Man Serving State Murder Sentence Receives an Additional Term in Federal Prison as A Result of Federal Conviction on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gregory Ramos a/k/a Prospect, 29, of Buffalo, NY, who was convicted following a jury trial of possessing with intent to distribute cocaine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm by a person subject of a domestic violence order of protection, was sentenced to serve 101 months in prison by U.S. District Judge Lawrence J. Vilardo. Ramos’s sentence was imposed to run consecutive to a previously imposed indeterminate sentence of 20 years to life that he received in New York State Court following his convictions for second-degree murder and criminal possession of a weapon for his role in the Anchor Bar shooting death of Freddie Dizon and for the strangulation of a former girlfriend.
Assistant U.S. Attorneys Joshua A. Violanti and Laura A. Higgins, who handled the prosecution of the case, stated that Ramos was a member of the FEB Gang which has a history of drug trafficking, firearms possession and violent crime. On May 21, 2016, Buffalo Police received a complaint involving a domestic dispute on Fargo Avenue between a woman and the defendant. An investigation determined that Ramos assaulted the woman, causing abrasions and bruising, and threatened her life. At the time of the domestic assault, Buffalo Police were looking for the defendant in connection with the fatal shooting at the Anchor Bar Restaurant, which occurred the previous day.
On May 23, 2016, Niagara Falls Police Officers spotted defendant’s car on Pine Avenue and attempted to stop the vehicle. As officers approached, the defendant sped away. A high-speed chase ensued during which Ramos threw bags of cocaine and a gun from his car window. The cocaine struck the windshield of the officers’ car on Hyde Park Avenue, while the gun struck and shattered the rear window of another driver’s vehicle.
The chase, which involved multiple Niagara Falls Police vehicles, proceeded onto Grand Island, where a toll collector at the Grand Island Bridge reported that the defendant’s vehicle was traveling approximately 100 miles per hour as it went through the tollbooths. Once on Grand Island, Ramos abandoned his vehicle on Stony Point Road and fled into a wooded area. A few minutes later, the Erie County Sheriff’s Department received a call from an individual who identified himself as Gregory Ramos. The caller claimed his vehicle had been stolen in Niagara Falls by an unknown black male. The defendant Ramos was apprehended a short time later in a wooded area on the Island and taken into custody. At the time, Ramos was in possession of $3,640 in cash.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Niagara Falls Police Department, under the direction of Acting Superintendent John Faso; and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
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Bronx Gang Member Charged with Racketeering and Firearms OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing today of an Indictment charging NICHOLAS JOSEPH, a/k/a “Gotti,” a/k/a “Finesse,” with various racketeering and firearms offenses relating to the Castle Hill Crew, which operates principally in the Castle Hill Houses in the Soundview neighborhood of the Bronx. The charges include assault with a deadly weapon and attempted murder in aid of racketeering for the April 28, 2017, shooting in the Story Playground in Soundview, during which a 12-year-old child was struck by gunfire.
JOSEPH was taken into custody last night and will be presented before U.S. Magistrate Judge Sarah Netburn later today. The case is assigned to U.S. District Judge P. Kevin Castel.
Acting U.S. Attorney Audrey Strauss said: “As alleged in the indictment, the defendant carried out a shooting in a playground that injured a 12-year-old child. Thanks to the extraordinary work of the NYPD, HSI, and DOI, the defendant now faces federal charges for his crimes.”
NYPD Commissioner Dermot Shea said: “Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners. By precisely targeting the relatively small percentage of people responsible for committing much of the violence in New York, we are making New Yorkers safer. We remain relentless in our efforts to identify, arrest, and prosecute anyone who involves themselves in such behavior. I thank our colleagues at the Southern District and Homeland Security for their unceasing professionalism and dedicated work in removing from our streets those who allegedly commit crime and disorder, especially when it’s in the form of gang violence.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “As alleged, the Castle Hill gang was involved in drug dealing, firearms offenses, and conspiracy to murder. Their ruthlessness and blatant disregard for human life is further evidenced as Joseph is alleged to have opened fire on a rival gang member at a playground, only to have a child caught in the crossfire. We too will be relentless in our commitment to public safety and removing these violent gang members from our streets and playgrounds. Every parent and child should feel safe to play in their neighborhoods without wondering where the next stray bullet will come from.”
DOI Commissioner Margaret Garnett said: “This is a tragic example of how gang activity devastates our public housing neighborhoods and the families who live there, in this case, making a children’s playground perilous for a 12-year-old child. We cannot and will not stand for that violence. Working with our law enforcement partners we will make sure that those allegedly involved in this kind of brutality will be held accountable, and today’s arrest is part of that joint effort.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
JOSEPH is a member and associate of the Castle Hill Crew, a racketeering enterprise that operates principally in the Castle Hill Houses in the Soundview neighborhood of the Bronx. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, Castle Hill Crew members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder; distributed and possessed with intent to distribute narcotics; engaged in fraud; and obtained, possessed, and used firearms.
On or about April 28, 2017, JOSEPH and others shot at a rival gang member in the vicinity of the Story Playground in the Bronx, New York, during which a 12-year-old child was injured.
* * *
The defendant is charged with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of attempted murder, assault with a deadly weapon, and attempted assault with a deadly weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison; one count of using and carrying a firearm in furtherance of a crime of violence, which was brandished and discharged, which carries a maximum sentence of life and a mandatory minimum sentence of 10 years in prison; and one count of being a felon in possession of a firearm and ammunition, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case 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 investigative work of the NYPD, HSI, and DOI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Justin V. Rodriguez are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Bellefonte Man Charged with Possession of Five Explosive DevicesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 10, 2020, Mitchell Ocker-Mullen, age 23, of Bellefonte, Pennsylvania, was indicted by a federal grand jury for possession of five explosive devices.
According to United States Attorney David J. Freed, the three-count indictment alleges that Ocker-Mullen received and possessed five grenades from on or about October 12, 2020 through October 29, 2020. The indictment also alleges that Ocker-Milton was prohibited from possessing the explosives because he had been previously convicted of a felony offense in Centre County. In addition, the indictment alleges that Ocker-Mullen was not licensed to possess the grenades and had not registered the explosives in the National Firearms Registration and Transfer Record.
The case was investigated by the Bellefonte Police Department and the FBI. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the three offenses is 10 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baggage Handler at Newark Liberty International Airport Sentenced to 15 Years in Prison for Role in Cocaine Smuggling SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that TYRONE WOOLASTON was sentenced today by U.S. District Judge Alison J. Nathan to 180 months in prison for his participation in a multi-year scheme to smuggle cocaine into the United States through Newark Liberty International Airport. WOOLASTON was convicted in February 2019, after a two-week jury trial, of conspiring to distribute more than five kilograms of cocaine, and using a firearm in furtherance of cocaine trafficking.
Acting U.S. Attorney Audrey Strauss said: “Tyrone Woolaston used his position as a baggage handler at Newark Liberty Airport to smuggle cocaine into the United States. When law enforcement conducted an undercover operation to investigate, Woolaston, carrying a semi-automatic pistol, delivered five kilos of what he believed to be cocaine. Now Woolaston has been sentenced to 15 years in prison for his crimes.”
According to court documents and the evidence at trial:
WOOLASTON was a lead baggage handler for a commercial airline at Newark Liberty International Airport (the “Airport”). From in or about 2013 through February 2018, WOOLASTON conspired to smuggle shipments of cocaine into the United States. WOOLASTON abused his secure access to the restricted areas of the Airport to remove suitcases containing shipments of multiple kilograms of cocaine from international flights and smuggle them through the Airport for distribution in the New York City area.
In 2017 and 2018, agents from the New Jersey Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”) conducted an undercover operation to investigate cocaine smuggling at the Airport. As part of the investigation, a confidential source met with WOOLASTON to arrange a cocaine shipment, and WOOLASTON agreed to bring a suitcase containing five kilograms of cocaine through the Airport. On February 10, 2018, HSI agents placed a suitcase containing approximately five kilograms of sham cocaine on an international flight from the Cayman Islands to the Airport. WOOLASTON was working on the Airport ramp when the flight arrived at the Airport, and took possession of the suitcase and carried the sham cocaine shipment through the Airport, evading customs screening. The following day, WOOLASTON carried a .40 caliber Glock pistol, equipped with a laser sight, to deliver the sham cocaine to the confidential source.
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In addition to the prison term, WOOLASTON, 35, of Orange, New Jersey, was sentenced to five years of supervised release.
Ms. Strauss praised the outstanding investigative work of HSI.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thane Rehn and Alison Moe are in charge of the prosecution.
Assistant Attorney General Beth A. Williams Announces Departure from the Office of Legal PolicyRead the Press Release
Assistant Attorney General Beth A. Williams of the Justice Department’s Office of Legal Policy (OLP) announced her departure from the department, effective today.
“Beth has served the Department of Justice with distinction,” said Attorney General William P. Barr. “Beth led the judicial nomination process for the department, resulting in the confirmation of hundreds of principled jurists who have demonstrated an unwavering commitment to the Constitution and the rule of law. Beth also helped shape the terms of national debate on a range of legal policy questions of significant priority to the department and the administration, including advocating against unlawful nationwide injunctions, protecting religious liberty, improving our regulatory process, and combating human trafficking. I am deeply appreciative of Beth’s service to the department and our country.”
“It has been the honor of my career to serve as Assistant Attorney General of the Office of Legal Policy,” said Assistant Attorney General Williams. “For three and a half years, I have had the privilege of working to make our country safer and more secure, and to preserve and protect our most fundamental freedoms. I have been grateful to work alongside the talented public servants at the department who dedicate their careers to this mission.”
Since 2017, OLP has assisted President Trump in appointing 229 Article III judges to the bench — more than any president has appointed in a single term since 1980. The president’s nominees to date include three Supreme Court justices, 53 Circuit Court judges, 170 District Court judges, three Court of International Trade judges, and numerous judges to other federal courts.
Under Assistant Attorney General Williams’s leadership, OLP has also led the department in taking significant steps to make the regulatory process more lawful, accountable, and transparent. The department recently issued two new regulations establishing a process for the responsible review, clearance, and issuance of guidance documents. The rules officially prohibit the use of guidance documents as an end-run to lawful regulation. OLP also played an instrumental role in the department’s landmark report to Congress issuing a formal recommendation that Congress modernize the 74-year-old Administrative Procedure Act.
Assistant Attorney General Williams also spearheaded departmental efforts to protect religious liberty. As part of this effort and consistent with recent Supreme Court holdings, OLP worked closely with the Office of Justice Programs and other department components to issue guidance making clear that recipients of Department of Justice grant funding would not be discriminated against on the basis of their faith. The guidance is an important affirmation of the department’s commitment to ensure that individuals and organizations driven by faith to serve their communities are not subject to unequal treatment by virtue of their religious identity.
In response to the challenges created by the COVID-19 pandemic, Assistant Attorney General Williams has focused on policy initiatives geared at protecting our most vulnerable members of society. OLP has worked with department components to prioritize the protection of children from online exploitation, to seek justice for victims of human trafficking, to ensure responsible policing, and to combat elder fraud and abuse.
During Ms. Williams’s tenure as Assistant Attorney General, OLP played a lead role in the department’s cyber policies, including coordinating the development of a recent white paper on cryptocurrency as part of the Cyber-Digital Task Force, and undertaking a comprehensive assessment of the department’s work in the cyber area to identify how federal law enforcement can even more effectively accomplish its mission.
OLP and the entire Department of Justice thank Assistant Attorney General Williams for her service and leadership.
3 Defendants, 16 Defendant Pharmacies Admit Executing Health Care Fraud Schemes That Targeted VeteransRead the Press Release
PITTSBURGH - Residents of Los Angeles, California, and Henderson, Nevada, pleaded guilty this week in federal court to charges of healthcare fraud, conspiracy to commit fraud, and conspiracy to violate the federal anti-kickback statutes, United States Attorney Scott W. Brady announced today. Additionally, 16 corporate entities (pharmacies) pled guilty to charges of healthcare fraud, conspiracy to commit fraud, and/or conspiracy to violate the federal anti-kickback statutes.
Brothers Mehran David Kohanbash, and Joseph Kohan and their nephew, Nima Rodefshalom, entered pleas of guilty to three counts of a criminal Information before United States District Judge Susan Paradise Baxter. In addition to the three individual defendants, 16 pharmacies scattered between California, Texas, Wyoming, Arizona and Nevada also entered guilty pleas. Those pleading guilty included Insure Nutrition, Inc., Affordable Pharmacy, Inc., ASC Pharmaceutical, LLC, DQD Enterprise Corporation, DTST Ventures, LLC, Econo Pharmacy, Inc., Emerson Pharmacy, Inc., Genorex Pharmaceutical, LLC, Nutrition Plus, Inc., Pharmatek Pharmacy, Inc., Premier Med Services, Inc., Rexford Pharmacy, Inc., Specialty Pharmacy Management of America, Inc., Solutech Pharmaceuticals, LLC, Village Drug & Compounding, Inc., and Vitamed LLC.
"For nearly five years, these defendants executed elaborate schemes to steal millions of dollars from health care systems across the United States, including both Highmark and TRICARE beneficiaries in Erie, Pennsylvania," said U.S. Attorney Brady. "Where fraudsters target our veterans or vulnerable members of our community, especially relating to their health care, we will come after them."
"These defendants intended to defraud our healthcare systems and deprive patients of their right to honest services," said FBI Pittsburgh Special Agent in Charge Michael Christman. "They manipulated patients who were seeking bariatric treatment and preyed on their emotions, all to get the patient’s health insurance information. Without thinking twice, these defendants lined their pockets while putting a burden on our taxpayer-funded and private healthcare systems that in turn drives up insurance costs for everyone. Thank you to our partners, the United States Attorney’s Office and Department of Defense, Defense Criminal Investigative Service for their efforts on this investigation and prosecution."
"These Plea Agreements demonstrate the continued commitment of the Defense Criminal Investigative Service, partnering with the Federal Bureau of Investigation, the Defense Health Agency, and the United States Attorney's Office in the Western District of Pennsylvania, to protect the American taxpayer and its military members from those that exploit our nation's healthcare programs including TRICARE," said Bryan Denny, Patrick Hegarty, and Chris Dillard, Special Agents in Charge, U.S. Department of Defense Inspector General, Defense Criminal Investigative Service. "False and inappropriate billings, by virtue of intended schemes or willful ignorance, place the American Warfighter in danger, erode public confidence and undermine the mission of our military services. DCIS and its law enforcement partners will continue to investigate healthcare fraud allegations in order to protect U.S. military members and the American taxpayer."
According to the information presented to the Court at the time of the pleas the three defendants conspired together to execute health care fraud schemes that targeted patients that had undergone, or were to undergo, bariatric surgical procedures. The individual defendants together with the defendant pharmacies engaged in a series of interconnected actions that resulted in misleading advertising associated with supplying what were described to the Court as nutritional shakes; the inducement to enlist various patients in ordering the nutritional shakes resulted in the defendants and the pharmacies securing the patients’ insurance information which in turn resulted in the defendants (individual defendants and by and through the pharmacies) soliciting the patients to appeal to their respective physicians to prescribe what were described for the Court as High Yield (expensive) medications.
These medications were often compounded, meaning that one or more of the pharmacies mixed together preexisting medications or substances to provide a new or different product. It was a part of the scheme(s) involved in the guilty pleas that the defendants conspired to promote these medications that often yielded extremely high profits. It was a part of the healthcare fraud scheme that the defendants defrauded healthcare benefit programs, both private insurance carriers and the government run health care program, TRICARE, for military members and their families, by manipulating the collection of co pays on various medications to make it appear that co pays were being collected when in fact they were not. An honest reporting of the failure to collect co pays would have resulted in the defendants being unable to bill insurance carriers for the cost of the various medications. The various schemes in which the defendants were involved were overlapping and ran from September of 2013 through May of 2018.
Judge Susan Paradise Baxter scheduled sentencing for April 7-8, 2020 for the individual defendants. Sentencing for the defendant pharmacies has not been scheduled. For each individual defendant, the law provides for a maximum total sentence of 35 years in prison, a fine of $750,000, or both.The three defendants and the 16 corporations agreed to forfeiture, restitution, fines and civil penalties amounting to more than $60,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
Pending sentencing, the court released each of the individual defendants on bail.
Assistant United States Attorneys Shardul S. Desai and James R. Wilson are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Department of Defense Office of the Inspector General conducted the investigation that led to the prosecution of Nima Rodefshalom, Mehran David Kohanbash, Joseph Kohan, Insure Nutrition, Inc., Affordable Pharmacy, Inc., ASC Pharmaceutical, LLC, DQD Enterprise Corporation, DTST Ventures, LLC, Econo Pharmacy, Inc., Emerson Pharmacy, Inc., Genorex Pharmaceutical, LLC, Nutrition Plus, Inc., Pharmatek Pharmacy, Inc., Premier Med Services, Inc., Rexford Pharmacy, Inc., Specialty Pharmacy Management of America, Inc., Solutech Pharmaceuticals, LLC, Village Drug & Compounding, Inc., and Vitamed LLC.
10 December 2020
“Diamond Enterprise” Members and Associates Indicted for Racketeering, Gambling, Extortion, Fraud, Money Laundering, and Obstruction OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Amaleka McCall-Brathwaite, Special Agent-in-Charge of the Eastern Region Office of the Inspector General of the U.S. Small Business Administration (“SBA-OIG”), announced the unsealing of an Indictment charging 16 defendants in counts including racketeering, gambling, extortion, fraud, money laundering, and obstruction of justice offenses. Of the 16 defendants, ABDURAMAN ISENI, a/k/a “Diamond,” ERVIN MAKISHTI, a/k/a “Vinny,” SOKOL GJONI, MIRALEM LJULJANOVIC, and JETMIR SULAJ, are associated with a racketeering enterprise referred to in the Indictment as the “Diamond Enterprise,” a criminal group overseen by ISENI, and are charged in United States v. Iseni, et al. (the “Indictment”), which has been assigned to U.S. District Judge Andrew J. Carter.
Eleven additional defendants are charged in the Indictment with various offenses, many relating to the operations of the overarching Diamond Enterprise, including extortion, operation of illegal gambling establishments, money laundering, bank fraud, fraud on the federal Paycheck Protection Program (“PPP”), and obstruction of justice. Specifically:
- ISENI, MAKISHTI, GJONI, LJULJANOVIC, SULAJ, ELDI MAKISHTI, ENRI DIMO, a/k/a “Eni,” DARREN DANZIERI, AMIR BECOVIC, and RAFAEL JACOBS are charged with conspiring to operate illegal gambling businesses, including live poker, electronic poker machines, and gambling on sporting events.
- ISENI, MAKISHTI, GJONI, LJULJANOVIC, ISLAM LAMCE, a/k/a “Bachi,” BRAJAN TOLA, GAZMEND LITA, and SMAIL DJOKIC, a/k/a “Ismail Gjoka” are charged with conspiring to transmit wagering information by wire communication facility to assist in the placing of bets and wagers on sporting events.
- ISENI and BESIM KUKAJ are charged with conspiring to commit extortion and interstate threats, extortion, and interstate threats in connection with ISENI’s call to a victim threatening physical violence.
- KUKAJ is charged with bank fraud conspiracy, as part of a scheme to obtain Government-guaranteed loans from banks via the fraud on the Paycheck Protection Program, a law intended to assist small businesses during the COVID-19 pandemic.
- ISENI is charged with money laundering funds that were represented to be the proceeds of a scheme to fraudulently obtain Paycheck Protection Program funds.
- MELSA SKRAPALLIU is charged with obstruction of justice for false statements made to a federal law enforcement officer in order to interfere with an investigation of ISENI.
- ISENI and SKRAPALLIU are charged with bank fraud conspiracy and making false statements to a bank.
ISENI, ERVIN MAKISHTI, GJONI, LJULJANOVIC, SULAJ, ELDI MAKISHTI, DIMO, DANZIERI, JACOBS, TOLA, DJOKIC, KUKAJ, and SKRAPALLIU were taken into federal custody today and will be presented before U.S. Magistrate Judge Sarah Netburn of the Southern District of New York. LITA, LAMCE, and BECOVIC remain at large.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Abduraman Iseni and his co-defendants allegedly operated a network of underground gambling establishments, and laundered the proceeds of that activity, to prop up a criminal enterprise under Iseni’s control. Going well beyond that racketeering activity, Iseni and others allegedly engaged in a variety of crimes, including extortion through violent threats, obstruction of justice, fraud on legitimate financial institutions, and fraud on the critical Paycheck Protection Program. They now face the possibility of serious time in prison for their alleged crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “The organization we’ve disrupted with our enforcement action today is a textbook example of an organized-crime group. As we allege, the crimes these men committed ran the gamut from running illegal gambling operations to making extortionate threats to defrauding the government of PPP benefits intended for honest Americans suffering economic harm during the pandemic. While these men did all they could to avoid making an honest living, the outstanding work done by the FBI’s New York Balkan Organized Crime team ensures they won’t be able to avoid facing justice.”
SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said: “The Paycheck Protection Program was developed to aide small businesses during these challenging times. Our Office will relentlessly pursue organized criminal enterprises that seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
NYPD Commissioner Dermot Shea said: “The web of alleged crimes unveiled by this federal indictment victimized everyday New Yorkers, undercut a federal aid program and eroded the fabric of life in the city. I commend our NYPD detective and federal partners for their sustained work in this important case.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court and statements made during Court proceedings:
As alleged, the Diamond Enterprise was an organized criminal group operating under the direction of ISENI, who had substantial influence in the criminal underworld. The Diamond Enterprise operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks, particularly operation of illegal gambling parlors, sports gambling by wire, and money laundering, among others. For their roles in leading and managing the Diamond Enterprise’s criminal activities, ABDURAMAN ISENI, a/k/a “Diamond,” ERVIN MAKISHTI, a/k/a “Vinny,” SOKOL GJONI, MIRALEM LJULJANOVIC, and JETMIR SULAJ are charged in Count One of the Indictment with racketeering conspiracy. The Diamond Enterprise thrived in part on the revenues generated by a network of illegal gambling parlors – “Sports Café,” “Friendly Café,” and “Oasis Café” – located throughout Brooklyn, that hosted underground poker games and hosted illegal sports books. Some of these revenues, in turn, were laundered through a series of bank accounts in an effort to conceal and facilitate the Enterprise’s continued operations.
In addition to the Enterprise’s operations, ISENI allegedly engaged in a series of additional crimes ranging from extortion through threats of violence, to money laundering, to fraud on the PPP. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. As alleged, defendant KUKAJ engaged in a fraud to obtain PPP loan funds, which ISENI then attempted to launder through bank accounts designed to conceal the source and ownership of those fraudulently obtained funds.
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A chart containing the names, charges, and maximum penalties for each of the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant would be determined by the judge.
Ms. Strauss praised the outstanding work of FBI New York’s Balkans and Middle East Organized Crime Squad, as well as the FBI’s Newark Office, the New York City Police Department, the Department of State Diplomatic Security Service, the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, the New York State Liquor Authority, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Samuel L. Raymond and David R. Felton are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendants
Max. Penalty
Count One: Racketeering Conspiracy (18 U.S.C. § 1962(d))
Abduraman Iseni,
a/k/a “Diamond,”
Ervin Makishti,
a/k/a “Vinny,”
Sokol Gjoni,
Miralem Ljuljanovic,
Jetmir Sulaj,
20 years’ imprisonment
Count Two: Conspiracy to Operate Illegal Gambling Businesses (18 U.S.C. §§ 371 and 1955)
Abduraman Iseni,
a/k/a “Diamond,”
Ervin Makishti,
a/k/a “Vinny,”
Sokol Gjoni,
Miralem Ljuljanovic,
Jetmir Sulaj,
Eldi Makishti,
ENRI DIMO,
a/k/a “Eni,”
Darren Danzieri,
AMIR BECOVIC,
RAFAEL JACOBS
5 years’ imprisonment
Count Three: Conspiracy to Transmit Wagering Information (18 U.S.C. §§ 371 and 1084)
Abduraman Iseni,
a/k/a “Diamond,”
Ervin Makishti,
a/k/a “Vinny,”
Sokol Gjoni,
Miralem Ljuljanovic,
Islam Lamce,
a/k/a “Bachi,”
BRAJAN TOLA,
Gazmend Lita,
SMAIL DJOKIC,
a/k/a “Ismail Gjoka,”
5 years’ imprisonment
Count Four: Conspiracy to Commit Extortion and Interstate Threats (18 U.S.C. §§ 371 and 875)
Abduraman Iseni,
a/k/a “Diamond,”
BESIM KUKAJ
5 years’ imprisonment
Count Five: Extortion (18 U.S.C. § 875(b))
Abduraman Iseni,
a/k/a “Diamond,”
BESIM KUKAJ
20 years’ imprisonment
Count Six: Interstate Threats (18 U.S.C. § 875(c))
Abduraman Iseni,
a/k/a “Diamond,”
BESIM KUKAJ
5 years’ imprisonment
Count Seven: Bank Fraud Conspiracy (18 U.S.C. § 1349)
Besim Kukaj
30 years’ imprisonment
Count Eight: Money Laundering (18 U.S.C. § 1956)
Abduraman Iseni,
a/k/a “Diamond,”
20 years’ imprisonment
Count Nine: Obstruction of Justice (18 U.S.C. § 1512(c))
MELSA SKRAPALLIU
20 years’ imprisonment
Count Ten: Bank Fraud Conspiracy (18 U.S.C. § 1349)
Abduraman Iseni,
a/k/a “Diamond,”
MELSA SKRAPALLIU
30 years’ imprisonment
Count Eleven: False Statements to a Bank (18 U.S.C. § 1014)
Abduraman Iseni,
a/k/a “Diamond,”
MELSA SKRAPALLIU
30 years’ imprisonment
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Waterbury Man Sentenced to 87 Months in Federal Prison for Role in Heroin and Fentanyl Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RONEY SOSA, 24, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by five years of supervised release for his role in a heroin and fentanyl trafficking ring.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.
On May 18, 2019, Nestor Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge. On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin. Roney Sosa drove a separate vehicle, which contained empty concealed apartment that could be used to transport narcotics, to the location of the planned drug transaction, but was not arrested at that time.
While he was detained pending trial in the New York case, Nestor Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with Roney Sosa and other co-conspirators. Sosa regularly processed and packaged narcotics at the Bishop apartment on behalf of the organization.
Roney Sosa and several co-defendants were arrested on October 29, 2019. On that date, investigators executed five search warrants and seized approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash.
On June 9, 2020, Sosa pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin and 400 grams or more of fentanyl. He is currently detained.
Sosa-Ortiz pleaded guilty and awaits sentencing.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Lauren Clark through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney W. Stephen Muldrow Statement on the Passing of Judge Juan Pérez-GiménezRead the Press Release
United States Attorney W. Stephen Muldrow released the following statement regarding the passing of The Honorable Juan M. Pérez-Giménez, United States Court, District of Puerto Rico:
On behalf of the U.S. Attorney’s Office for the District of Puerto Rico, we mourn the loss of Senior Judge Pérez-Giménez. We honor the life and legacy of The Honorable Juan Pérez-Giménez for his many years of dedicated public service. He was an advocate before the Court, an incisive questioner, a clear and careful writer, and a model of dignity and civility.
I extend our deepest condolences to his family, his colleagues on the Court, his former law clerks, and all who knew and admired him. May his memory be eternal.
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Two Jamestown Women Arrested on Methamphetamine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Antasia Babcock, 27, and Celeste Carr, 34, both of Jamestown, NY, were charged in separate criminal complaints with possessing with intent to distribute methamphetamine and maintaining a premises for drug use and distribution. Defendant Carr is also charged with possessing with intent to distribute heroin. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the criminal complaints, on October 16, 2020, the Jamestown Metro Drug Task Force executed a New York State search warrant at Babcock’s Wescott Street residence. During that search, law enforcement officers seized one pound of suspected methamphetamine hydrochloride, drug paraphernalia, and approximately $62,000 in cash. That same day, the task force executed another New York State search warrant at defendant Carr’s residence, which was also located on Wescott Street in Jamestown. During that search, law enforcement officers recovered approximately 15 ounces of suspected methamphetamine hydrochloride, approximately 3 ounces of suspected fentanyl, packaging material, a digital scale, and a drug ledger.
The complaints are the result of an investigation by the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Individuals Arrested for Human Smuggling Conspiracy and Defrauding U.S. Government AgenciesRead the Press Release
Earlier today, in federal court in Central Islip, a six-count indictment was unsealed charging Dat Tat Ho and Manh Ngoc Nguyen with conspiring to defraud U.S. government agencies and alien smuggling for financial gain, and related crimes. The defendants were arrested this morning and arraigned this afternoon before United States Magistrate Judge Anne Y. Shields. Both defendants were ordered detained pending trial.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Michael C. Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Region (DOL-OIG), announced the indictment and arrests.
"As alleged, Ho and Nguyen conspired to smuggle aliens into the United States, keep them under the defendants’ control and pay them illegally low wages to work in nail and hair salons,” stated Acting United States Attorney DuCharme. “As this case demonstrates, we take seriously our responsibility to maintain security at our borders and prosecute those who seek unlawful commercial advantage and financial profit through the exploitation of other human beings.”
Mr. DuCharme thanked the U.S. Citizenship and Immigration Services (USCIS), U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Attorney’s Office for the Southern District of New York, the New York City Police Department, Nassau County Police Department and Suffolk County Police Department for their valuable assistance during the investigation.
“This case is an example of callous labor trafficking hiding in plain sight. In what seemed to be an endless scheme, this transnational criminal organization allegedly manipulated the asylum process and profited off the plight of their nail salon employees whom they victimized,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI, through collaboration with its federal, state and local partners, methodically unraveled the vast reach of this enterprise which led to the indictment of these criminals. It is important for anyone who is a victim of human smuggling to know that these investigations prioritize ensuring the safety of the victims while bringing those responsible to justice.”
“It is reprehensible when others allegedly seek personal financial gain by smuggling persons into the United States and paying them illegally low wages,” stated IRS-CI Special Agent-in-Charge Larsen. “We will continue to work with our law enforcement partners to prevent this abuse and protect the financial integrity of our tax system.”
“Combatting labor trafficking is an important part of the mission of the Department of Labor’s Office of Inspector General. We will continue to work with our law enforcement partners to investigate all forms of labor trafficking,” stated DOL-OIG Special Agent-in-Charge Mikulka.
According to court filings, the defendants owned or managed numerous nail and hair salons in Queens, the Bronx and on Long Island. Between January 2017 and September 2020, the defendants and others arranged for Vietnamese foreign nationals to enter the United States via illegal border crossings at the U.S. border with Mexico, as well as at other ports of entry. After the foreign nationals crossed the border, the defendants facilitated their travel to New York to work in their salons at illegally low wages and overstay their transit visas. The defendants also caused foreign nationals to make false statements to USCIS and submit fraudulent asylum applications to USCIS. The foreign nationals were housed in residences that the defendants owned or controlled.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Nguyen and Ho face a minimum of five years’ imprisonment and up to 15 years’ imprisonment.
Assistant United States Attorneys Allen Bode, Charles Rose and Andrew D. Grubin are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is handling forfeiture matters.
The Defendants:
MANH NGOC NGUYEN (also known as “Peter”)
Age: 44
Hicksville, New YorkDAT TAT HO (also known as “Chris”)
Age: 33
Bronx, New YorkE.D.N.Y. Docket No. 20-CR-486 (JS)
Two Indicted for Possession with Intent to Distribute Methamphetamine in StocktonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ausencio Alvarez Cortez, 41, of Stockton, and Angel Ismael Ramirez, 30, of Los Angeles, charging them jointly with conspiring to distribute methamphetamine and possession of methamphetamine with intent to distribute, and charging Cortez separately with distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 26, a confidential source bought 3 pounds of methamphetamine from Cortez. Following that purchase, on Nov. 12, the source met again with Cortez, who was accompanied by Ramirez, ostensibly to execute a transaction for 50 pounds of methamphetamine. When Cortez showed the source the requested methamphetamine, however, law enforcement officers converged on the scene, arresting Cortez and Ramirez, and seizing the 50 pounds of methamphetamine as well as a loaded semi-automatic handgun from the back seat of Cortez’s pickup truck.
This case is the product of an investigation by the Federal Bureau of Investigation, the San Joaquin Metropolitan Narcotics Task Force, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, both Cortez and Ramirez face a maximum statutory penalty of life in prison and a $10 million fine, for each of the narcotics charges, all of which have a statutory mandatory minimum penalty of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.