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19 November 2020
Former City of Newark Official Charged with Scheming with Two Newark Businessmen to Obtain BribesRead the Press Release
NEWARK, N.J. – A former City of Newark official and officer of the Newark Community Economic Development Corporation (NCEDC) and two business owners were charged today for their roles in a bribery scheme, U.S. Attorney Craig Carpenito announced.
Carmelo G. Garcia, 45, of Hoboken, New Jersey; Frank Valvano Jr., 52, of Florham Park, New Jersey; and Irwin Sablosky, 60, of Springfield, New Jersey, are each charged by complaint with one count of conspiracy to commit bribery in connection with the business and transactions of a federally funded local government and organization. Garcia was a high-level Newark official, and prior to that, an executive officer of the NCEDC (now known as “Invest Newark”). Valvano and Sablosky are co-owners of a New Jersey-based pawnbroker and jewelry business. The defendants will appear in federal court on a date to be determined
According to documents filed in the case and statements made in court:
From 2017 through April 2019, Garcia sought and received significant monetary payments and other benefits from Valvano, Sablosky, and others in exchange for Garcia’s use of his official positions and influence to assist Valvano and Sablosky with securing redevelopment agreements (RDAs) with the City of Newark to purchase and acquire various city-owned properties for redevelopment, including obtaining preliminary designated developer status, and to ensure that Garcia did not act against their interests. In addition to money, Garcia also received jewelry from the pawnbroker and jewelry business that Valvano and Sablosky co-own.
Phone records and text messages obtained by law enforcement document extensive communications among Garcia, Valvano, Sablosky, and others about the bribery scheme, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then acting deputy mayor and director of the city’s Department of Economic and Housing Development (EHD Department), received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant. Text messages obtained by law enforcement show that Garcia used his personal cellular phone to coordinate the location and timing of the meeting. Approximately five days later, the EHD Department issued letters granting preliminary designated developer status for several properties to two limited liability companies controlled by Valvano and Sablosky. Garcia, whose name and official title were also prominently displayed on the letterhead, was copied on both letters.
In text messages, Valvano and Sablosky discussed additional payments of money and jewelry the two had made to Garcia, and also to an associate of Garcia (Individual 1), as well as their ongoing efforts to obtain RDAs with the city to acquire and redevelop additional properties. For instance, on March 31, 2019, Valvano texted Sablosky to complain that Garcia’s associate, who sometimes served as an intermediary between Garcia and Sablosky and Valvano, was “already looking for [more] money.” After observing that “We’ve done nothing but spend tons of money and give away jewelry,” Sablosky noted that “Carmelo [Garcia] wants more too. We can’t afford it . . . We’re a [expletive] money well for these guys to keep coming back to.”
On April 13, 2019, Sablosky also sent text messages to Valvano regarding a meeting he had with Garcia the previous day and his giving Garcia an additional payment of $5,000. Sablosky noted that Garcia had “showed up [at] 5pm last night” to discuss another “RDA” he and Valvano were attempting to obtain from the city. When Valvano asked whether there was “Any mention of $$,” Sablosky responded, “He [Garcia] didn’t just come to visit!! Lol. He got another 5,” referencing the $5,000 payment. Sablosky also told Valvano, “When you get back we have to add everything and sit down with him [Garcia]. I want to get these RDAs through before we start rocking the boat.”
The count of conspiracy to commit bribery carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jeffrey J. Manis, Elaine K. Lou, and Jihee G. Suh of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Chief Executive Officer and Chief Operating Officer of Publicly Traded Biopharmaceutical Company Found Guilty of Accounting FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that, following a four-week trial, PARKER H. “PETE” PETIT, the former chief executive officer of MiMedx Group, Inc. (“MiMedx”), a publicly traded biopharmaceutical company, was convicted of securities fraud, and WILLIAM TAYLOR, the former chief operating officer of MiMedx, was convicted of conspiracy to commit securities fraud, to make false statements in SEC filings, and to mislead the conduct of audits. The convictions stem from their participation in a scheme to fraudulently inflate MiMedx’s revenue.
Acting U.S. Attorney Audrey Strauss said: “As the jury found, Parker Petit and William Taylor employed secret agreements and corrupt financial inducements with four distributors to materially misstate the quarterly and annual sales revenue of MiMedx. In the process, they deceived the SEC, auditors, and the investing public, repeatedly misrepresenting the financial condition of their publicly traded company. Now they await sentencing for their crimes.”
According to the allegations contained in the Indictment and the evidence presented at trial:
MiMedx was headquartered in Marietta, Georgia, and its securities traded under the symbol “MDXG” on the NASDAQ. MiMedx sold regenerative biologic products, such as skin grafts and amniotic fluid, both directly to end users, such as public and private hospitals, and to various stocking distributors, which, in turn, resold the product to end users.
One of the most critical financial metrics disclosed in MiMedx’s public filings with the Securities and Exchange Commission (“SEC”), and touted in MiMedx’s accompanying press releases, was MiMedx’s quarterly and annual sales revenue. Under Generally Accepted Accounting Principles (GAAP) and SEC guidance, a company like MiMedx that engages in the sale of products through a distributor may recognize revenue upon transfer of the product to a distributor if certain requirements are satisfied, including that delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability of payment is reasonably assured. PETIT and TAYLOR repeatedly demonstrated and touted their understanding of these rules governing revenue recognition. They also publicly identified revenue as the principal metric reflecting MiMedx’s growth, and touted MiMedx’s consistent record of quarter-over-quarter revenue growth and meeting or exceeding revenue guidance in 17 consecutive quarters, from 2011 through year-end 2015. By 2015, however, it became increasingly difficult for MiMedx to reach its revenue guidance due to decreased demand from certain distributors and the increasingly aggressive revenue targets that MiMedx had publicly announced.
Confronted with the difficulties faced by MiMedx in meeting its quarterly and annual revenue guidance by legitimate means, PETIT and TAYLOR engaged in a fraudulent scheme to falsely recognize revenue upon the shipment of MiMedx product to four stocking distributors, CPM, SLR, Stability Biologics (“Stability”), and First Medical, in the second through fourth quarters of 2015. PETIT and TAYLOR caused MiMedx to report fraudulently inflated revenue figures to the investing public in order to ensure that the reported figures fell within MiMedx’s publicly announced revenue guidance, and to fraudulently convey to the investing public that MiMedx was accomplishing consistent growth quarter after quarter, as PETIT and TAYLOR had falsely touted to the investing public. The fraudulent scheme involved the following central features:
- As to CPM, in the second quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $1.4 million in revenue by (1) making a $200,000 sham “consulting” payment to CPM’s owner to bribe CPM to buy MiMedx product and (2) secretly agreeing to send CPM approximately $1.1 million of product it did not want and did not intend to sell, while promising that CPM could return the product to MiMedx and swap it for different product in a subsequent quarter. PETIT and TAYLOR entered into the sham “consulting” agreement to conceal that the payment was a bribe to purchase product, and CPM’s owner performed no consulting work for the payment. Neither PETIT nor TAYLOR disclosed to MiMedx’s outside auditors the “consulting” payment or product swap.
- As to SLR, in the third quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $4.6 million in revenue by booking the revenue despite understanding that SLR would not make a timely payment for the product, and certainly would not do so within contractual terms. To hide from MiMedx’s auditors that the collectability of payment from SLR was questionable, during the fourth quarter 2015, PETIT arranged for his adult children to use a shell company to loan money to SLR (money that came from a trust fund established by PETIT for their benefit), with the understanding that the loan proceeds would be used in substantial part to pay down SLR’s debt to MiMedx. PETIT did not disclose the loan to MiMedx’s outside auditors and made false and misleading statements to the auditors about SLR’s ability to pay MiMedx.
- As to Stability, in the third and fourth quarters of 2015, PETIT and TAYLOR caused MiMedx improperly to recognize $2.6 million of revenue, where they (1) failed to agree with Stability on the essential terms of the deal, including when payment was due; (2) reached a secret understanding that Stability could swap or return unwanted product in subsequent quarters; and (3) understood that Stability could not pay for the product in a timely fashion. In fact, PETIT granted the right of return to Stability in a back-dated letter he hid from MiMedx’s internal accountants and outside auditors.
- As to First Medical, in the fourth quarter of 2015, TAYLOR caused MiMedx improperly to recognize $2.2 million in revenue by making an undisclosed promise to First Medical that it could return any product that it could not sell and that MiMedx would not leave First Medical with any losses. To carry out the scheme, TAYLOR sent two emails four seconds apart to First Medical. The first was a “cover story” that purported to require payment within a fixed period, as required by MiMedx’s accountants. TAYLOR forwarded the first email to MiMedx’s accounting department. The second email, sent only four seconds after the first, memorialized the true terms of the deal, which involved an agreement to defer payment and take back product if it could not be sold. TAYLOR hid the second email from MiMedx’s internal accountants and outside auditors. TAYLOR also arranged for a false audit “confirmation,” which falsely represented that First Medical was required to pay within a fixed period and omitted the true terms of the deal, to be provided to MiMedx’s outside auditors.
PETIT’s and TAYLOR’s fraudulent manipulation of MiMedx’s revenue caused MiMedx to report materially inflated revenue in the second, third, and fourth quarters of 2015, and for the full year 2015. In its 2015 10-K, MiMedx reported annual revenue that was fraudulently inflated by approximately $8.2 million. Absent this fraudulent inflation of revenue, MiMedx would have missed both (1) its quarterly revenue guidance in the third and fourth quarters of 2015 and annual revenue guidance for 2015 and (2) analyst revenue consensus for the second through fourth quarters of 2015 and the full year 2015.
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PARKER H. “PETE” PETIT, 81, was convicted of one count of securities fraud, and WILLIAM TAYLOR, 52, was convicted of one count of conspiracy to commit securities fraud, make false filings with the SEC, and mislead the conduct of audits. The securities fraud count carries a maximum sentence of 20 years in prison, and the conspiracy count carries a maximum sentence of five 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 defendants would be determined by the Court.
PETIT is scheduled to be sentenced before Judge Rakoff on February 23, 2021, and TAYLOR is scheduled to be sentenced before Judge Rakoff on February 24, 2021.
Ms. Strauss praised the outstanding investigative work of the United States Postal Inspection Service. Ms. Strauss also thanked the SEC, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Scott A. Hartman, and Daniel M. Tracer are in charge of the prosecution.
Florida Man Admits Role in $4.6 Million Health Care Fraud and Kickback Schemes Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in using his company to defraud the Medicare Program in connection with fraudulent orders for genetic tests, Attorney for the United States Rachael A. Honig announced.
Edward B. Kostishion, 60, of Lakeland, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of conspiracy to commit an offense against the United States in connection with schemes to commit health care fraud and violate the Anti-Kickback Statute. Kostishion and five co-defendants were previously charged by indictment in September 2019 in connection with these conspiracies.
According to documents filed in this case and statements made in court:
Kostishion and certain conspirators operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that another conspirator operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Matthew S. Ellis, a physician based in Gainesville, Florida, and a co-defendant charged in the indictment, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, and other conspirators submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in some cases, falsely indicated that a patient had a personal or family history of cancer. In 2018 alone, Medicare paid clinical laboratories at least $4.6 million for genetic tests that Ellis ordered as part of this scheme.
In addition, Kostishion and certain conspirators entered into kickback agreements with certain clinical laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Among other things, Ark concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. In 2018, the clinical laboratories paid Ark at least $1.8 million in bribes.
Each conspiracy count carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Kostishion’s sentencing is scheduled for April 1, 2021.
Co-defendants Kacey C. Plaisance, of Altamonte Springs, Florida, and Kyle D. McLean, of Arlington Heights, Illinois, previously pleaded guilty. Plaisance is scheduled to be sentenced on March 15, 2021. McLean is scheduled to be sentenced on April 12, 2021.
Attorney for the United States Honig credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit.
The charge and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Five Men Charged with Distributing Narcotics in New HavenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Chief Otoniel Reyes today announced that five men were arrested yesterday on federal narcotics charges related to the distribution of heroin and crack cocaine in New Haven.
According to statements made in court, these prosecutions are part of a coordinated law enforcement effort to address rising drug-related violence in the Newhallville section of New Haven.
On November 9, 2020, a federal grand jury in New Haven returned indictments charging:
HERMAN BELLAMY, 43, of East Haven, with two counts of possession with intent to distribute, and distribution of, heroin;
TYRONE DUPREE, 24, of Hamden, with three counts of possession with intent to distribute, and distribution of, heroin, and one count of possession with intent to distribute, and distribution of, cocaine base (“crack”) and heroin;
CORNELIUS IVORY, 34, of New Haven, with two counts of possession with intent to distribute, and distribution of, heroin, and one count of possession with intent to distribute, and distribution of, cocaine base and heroin;
SHANTE DAVIS, 44, of West Haven, with four counts of possession with intent to distribute, and distribution of, cocaine base and heroin;
ELIGHI AGNEW, also known as “Lil Bro,” 32, with three counts of possession with intent to distribute, and distribution of, cocaine base and heroin, and one count of possession with intent to distribute, and distribution of, cocaine base.
Each charge carries a maximum term of imprisonment of 20 years.
Dupree is currently detained, and Bellamy, Ivory, Davis and Agnew are released under supervision by the U.S. Probation Office while awaiting trial.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force and the New Haven Police Department. The Task Force includes members from the New Haven, Milford, East Haven and West Haven Police Departments, the Connecticut State Police and the Connecticut Department of Correction.
These cases are being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile, S. Dave Vatti and Douglas P. Morabito 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.
Five Baltimore Men—Including Former Member of Baltimore Safe Streets Program—Facing Federal Indictment for Drug Trafficking OffensesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging four Baltimore men on the federal charge of conspiracy to distribute controlled substances, and a fifth man with possession with intent to distribute controlled substances, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime. The superseding indictment, which was returned on November 18, 2020, adds three new defendants and nine new counts. Charged in the indictment are:
Ronald Alexander, age 50; Mark Brinkley, age 51; Thomas Corey Crosby, age 51; Joseph McClean, age 49; and
Mark McCoy, age 53.The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the 10-count indictment, from at least May 2020 through August 14, 2020, Alexander, Brinkley, Crosby, and McClean conspired to distribute heroin, fentanyl, cocaine, and crack cocaine. According to court documents, Alexander participated in the conspiracy while he was employed by the Safe Streets program in Baltimore City. McClean allegedly distributed controlled substances, including fentanyl and heroin on five occasions between July 1 and July 30, 2020. Brinkley allegedly possessed with the intent to distribute at least 100 grams of heroin, 40 grams of fentanyl, and cocaine. Finally, on August 14, 2020, McCoy allegedly possessed a .40-caliber pistol in furtherance of a drug trafficking crime, specifically, possession with intent to distribute crack cocaine. As stated in the superseding indictment, McCoy had a previous felony conviction and was prohibited from possessing a firearm.
If convicted, as a result of previous federal felony convictions, Alexander and Crosby face a mandatory minimum of 10 years in federal prison and a maximum sentence of life in prison for the drug conspiracy. Brinkley and McClean each face a mandatory minimum of five years in federal prison and a maximum of 40 years in federal prison for the conspiracy. McClean also faces a maximum of 20 years in federal prison for each of five counts of distribution of controlled substances. Brinkley and McCoy face a maximum of 20 years in federal prison for possession with intent to distribute controlled substances, and McCoy also faces a maximum of 10 years in federal prison for being a felon in possession of a firearm. Finally, as a result of a previous federal conviction on the same charge, McCoy faces a mandatory 25 years in prison, consecutive to any other sentence imposed, and up to life in prison, for possession of a firearm in furtherance of a drug trafficking crime. Actual sentences for federal crimes are typically less than the maximum penalties and a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Alexander and Crosby remain detained. Brinkley and McCoy are in state custody on related charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who are prosecuting the case.
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Firearms Thief in Harrison County Sentenced to over 5 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Gulfport, Miss. – Casey Lee Gilmer, 34, of Harrison County, Mississippi was sentenced today by U.S. District Judge Louis Guirola, Jr. to 70 months in federal prison, followed by three years of supervised release, for being an unlawful user of a controlled substance in possession of multiple firearms, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). Gilmer was also ordered to pay a $5,000 fine.
In September 2019, Gilmer stole ten firearms from a residence where he was working in Jackson County, Mississippi. Gilmer then pawned the firearms at multiple pawnshops along the Mississippi Gulf Coast in order to feed his drug addiction. After the firearms were reported stolen, law enforcement officials were able to identify Gilmer, locate the firearms, and successfully return the firearms to their rightful owner.
Gilmer was indicted on June 23, 2020 and he pled guilty before Judge Guirola on August 27, 2020.
This case was investigated by the ATF and Jackson County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jonathan Buckner.
Final Defendant Sentenced to More than 17 Years in MS-13 CaseRead the Press Release
An MS-13 gang member was sentenced Tuesday to more than 17 years in federal prison for his role in a brutal machete attack at an apartment complex in Dallas, Texas.
Arnold Stephen Miralda-Cruz, age 23, pleaded guilty in February to RICO conspiracy, and was sentenced Tuesday to 210 months in federal prison by U.S. District Judge Jane J. Boyle. Miralda-Cruz is the last of seven defendants sentenced in the case.
“With this sentencing, seven MS-13 gang members responsible for multiple brutal attacks in the Dallas area have now been brought to justice,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department of Justice will not waver in its commitment to dismantle and destroy the scourge of MS-13.”
“MS-13 is one of the most vicious gangs operating in America today,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When machete-wielding gang members terrorize our streets, they will be met with certain justice. The Northern District of Texas thanks our law enforcement partners, led by Homeland Security Investigations, who worked tirelessly to take seven brutal men out of our community.”
“This sentencing brings an end to the violence posed by these criminal gang members who have inflicted mayhem in our communities without any remorse or empathy for anyone,” said Deputy Agent in Charge Christopher M. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas. “The violent crimes this thug and his cohorts committed for the sake of street credibility and their gang’s reputation has ended with this illegal perpetrator behind bars.”
According to court documents, the defendants – mostly El Salvadorian nationals in the United States illegally – admitted they belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.” As members, the defendants were required to commit acts of violence to protect the gang’s reputation, and were urged to attack and kill rivals whenever possible.
To that end, on July 14, 2017, Miralda-Cruz and several other gang members, including codefendants Rolan Ivan Hernandez Fuentes and Jerson Gutierrez-Ramos, ambushed a rival gang member and his roommate inside an apartment complex in Dallas. Armed with machetes, knives, box cutters, and a metal bar, they struck, stabbed, and cut the victims with intent to kill. The attack left one man with his chest and neck sliced open, necessitating emergency cardiac surgery, and the other with lacerations to his face, requiring hospitalization. Following the attack, Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
The following day, on July 15, 2017, Miralda-Cruz, Hernandez-Fuentes, Gutierrez-Ramos, and another gang member attacked and extorted a third man outside his home in Irving. Armed with a machete from the night before, Hernandez-Fuentes forced the victim to kneel, then kicked him and stuck him with the machete. The group demanded the victim, a heroin dealer, pay their MS-13 clique an extortion fee, a “tax,” to deal drugs in their territory.
On Aug. 9, 2017, several gang members attacked another rival gang member at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered stab wounds to his back and lacerations on several parts of his body, requiring hospitalization.
On Aug. 19, 2017, several gang members attacked and robbed another rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a Shell gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered a fractured skull and bleeding from his brain, requiring hospitalization.
In late August, several gang members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they lay in wait with machetes and a shotgun. The victim ultimately refused to get out of his car, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they confronted the victim with a shotgun. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim managed to drive away.
On Sept. 25, 2017, Hernandez-Fuentes, Gutierrez-Ramos, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel.
A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
Other sentences in the case are as follows:
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
- Jerson Gutierrez-Ramos, aka “Sparky,” sentenced to 475 months in federal prison for RICO conspiracy
- Arnold Steven Miralda-Cruz, aka “Sico,” sentenced to 210 months in federal prison for RICO conspiracy
- Kevin Cruz, aka “Street Danger,” sentenced to 250 months in federal prison for RICO conspiracy
- Manuel Amaya-Alvarez, aka “Chocolate,” sentenced to 240 months for two counts of attempted murder in aid of racketeering
- Jose Armando Saravia-Romero, aka “Pinky,” sentenced to 57 months in federal prison for assault with a dangerous weapon in aid of racketeering
- Jonathan Alexander Baires, aka “Splinter,” sentenced to 120 months for attempted murder in aid of racketeering
HSI, the Irving Police Department, and the Dallas Police Department conducted the investigation. Trial Attorney Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Sid Moody prosecuted the case.
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.
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
Final Defendant Sentenced to 17+ Years in MS-13 CaseRead the Press Release
An MS-13 gang member was sentenced this week to more than 17 years in federal prison for his role in several brutal machete attacks at apartment complexes in Dallas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Arnold Stephen Miralda-Cruz, 23, pleaded guilty in February to RICO conspiracy, and was sentenced Tuesday afternoon to 210 months in federal prison, an upward departure by U.S. District Judge Jane J. Boyle. Mr. Miralda-Cruz is the last of seven defendants sentenced in the case.
“MS-13 is one of the most vicious gangs operating in America today,” said U.S. Attorney Erin Nealy Cox. “When machete-wielding gang members terrorize our streets, they will be met with certain justice. The Northern District of Texas thanks our law enforcement partners, led by Homeland Security Investigations, who worked tirelessly to take seven brutal men out of our community.”
“With this sentencing, seven MS-13 gang members responsible for multiple brutal attacks in the Dallas area have now been brought to justice,” said Acting Assistant Attorney General Brian C. Rabbitt. “The Department of Justice will not waver in its commitment to dismantle and destroy the scourge of MS-13.”
“This sentencing brings an end to the violence posed by these criminal gang members who have inflicted mayhem in our communities without any remorse or empathy for anyone,” said Christopher M. Miller, deputy agent in charge Homeland Security Investigations Dallas. “The violent crimes this thug and his cohorts committed for the sake of street credibility and their gang’s reputation has ended with this illegal perpetrator behind bars.”
According to court documents, the defendants – all El Salvadorian and Honduran nationals in the United States illegally – admitted they belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.” As members, the defendants were required to commit acts of violence to protect the gang’s reputation, and were urged to attack and kill rivals whenever possible.
To that end, on July 14, 2017, Mr. Miralda-Cruz and several other gang members, including codefendants Rolan Ivan Hernandez Fuentes and Jerson Gutierrez-Ramos, ambushed a rival gang member and his roommate inside an apartment complex in Dallas. Armed with machetes, knives, box cutters, and a metal bar, they struck, stabbed, and cut the victims with intent to kill. The attack left one man with his chest and neck sliced open, necessitating emergency cardiac surgery, and the other with lacerations to his face, requiring hospitalization. Following the attack, Mr. Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
The following day, on July 15, 2017, Mr. Miralda-Cruz, Mr. Hernandez-Fuentes, and Mr. Gutierrez-Ramos attacked and extorted a third man outside his home in Irving. Armed with the a machete from the night before, Mr. Hernandez-Fuentes forced the victim to kneel, then kicked him and stuck him with the machete. The group demanded the victim, a heroin dealer, pay their MS-13 clique an extortion fee, a “tax,” to deal drugs in their territory.
On August 9, 2017, several gang members attacked another rival gang member at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered stab wounds to his back and lacerations on several parts of his body, requiring hospitalization.
On August 19, 2017 several gang members attacked and robbed another rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered a fractured skull and bleeding from his brain, requiring hospitalization.
In late August, several gang members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they lay in wait with machetes and a shotgun. The victim ultimately refused to get out of his car, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they confronted the victim with a shotgun. Mr. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim managed to drive away.
On September 25, 2017, Mr. Hernandez-Fuentes, Mr. Gutierrez-Ramos, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel.
A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
Other sentences in the case are as follows:
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
- Jerson Gutierrez-Ramos, aka “Sparky,” sentenced to 475 months in federal prison for RICO conspiracy
- Arnold Steven Miralda-Cruz, aka “Sico,” sentenced to 210 months in federal prison for RICO conspiracy
- Kevin Cruz, aka “Street Danger,” sentenced to 250 months in federal prison for RICO conspiracy
- Manuel Amaya-Alvarez, aka “Chocolate,” sentenced to 240 months for two counts of attempted murder in aid of racketeering
- Jose Armando Saravia-Romero, aka “Pinky,” sentenced to 57 months in federal prison for assault with a dangerous weapon in aid of racketeering
- Jonathan Alexander Baires, aka “Splinter,” sentenced to 120 months for attempted murder in aid of racketeering
The defendants, who were in the United States illegally at the time of the crimes, may be subject to deportation after serving their sentences.
Homeland Security Investigations, the Irving Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case with Trial Attorney Julie Finocchiaro of the Department of Justice's Organized Crime and Gang Section.
Federal Way, Washington, woman sentenced to 52 months in prison for eight federal felonies in fraud scheme to ‘steal’ and sell aircraftRead the Press Release
Seattle — A repeat identity thief, who tried to flee to Canada while out on bond, was sentenced today in U.S. District Court in Seattle to 52 months in prison announced U.S. Attorney Brian T. Moran. MICHELLE RENEE HUGHES, 43, previously known as Jose Trinidad Gonzalez, pleaded guilty in April 2020 to two counts of mail fraud, four counts of false statements, and two counts of Aggravated Identity theft. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said, HUGHES had “demons she was wrestling with in life,” and warned her that she faces increasing prison time if she does not change her behavior.
“This defendant has pursued identity theft and fraud crimes for more than a decade,” said U.S. Attorney Brian Moran. “These are not victimless crimes—real people have to sort out the damage done to their credit and financial life. In this case victims’ sense of health and well-being and their ability to help others was derailed by this brazen fraud scheme.”
According to records filed in the case, HUGHES (who has a 2011 conviction for identity theft) used her skill with falsified documents to engage in a scheme where she submitted forged bills of sale and falsely changed aircraft registrations in a public Federal Aviation Administration database. HUGHES made it appear she had purchased various aircraft and then offered those same aircraft for sale, attempting to get payments from unsuspecting buyers. One of the ‘buyers’ who responded was an undercover agent for Homeland Security Investigations. In June 2018, when HUGHES showed up and collected a $1,000 down payment, she was placed under arrest.
When agents searched HUGHES’ Federal Way, Washington, apartment, they found a large collection of identity theft material including false passport cards and identity material for HUGHES as a certified counselor at a middle school, as a financial advisor for Morgan Stanley, a flight attendant, and a counterfeit “World Passport” book with HUGHES’ photograph but a different name. They also found identity material related to a victim from HUGHES’ 2011 federal conviction for aggravated identity theft. HUGHES has a criminal history of fraud crimes dating back to 2007.
In March 2020, HUGHES and a girlfriend attempted to flee to Canada, even as trial on these charges was scheduled for May 2020. Canadian border officials at the Blaine Port of Entry refused the couple entry, and they were returned to the U.S. A search of HUGHES’ apartment following that incident turned up more identity information that could be used for fraud.
In their sentencing memo, prosecutors noted that the true owners of the aircraft have incurred legal fees and stress trying to get clear title to their planes restored. One pilot, who volunteers to fly medical patients to appointments, was unable to assist five different patients while waiting for the title situation to be resolved.
HUGHES seems unconcerned about living a life of lies. “… Defendant is singularly committed to defrauding people. For over a decade, Defendant has continually engaged in fraudulent schemes. Whether it’s stealing an identity, forging court orders, passing bad checks, forging birth certificates, lying to a DSS agent about being undercover, or impersonating a police officer and lying to a deputy sheriff about her death to evade justice, Defendant lacks any compunction about dishonesty,” prosecutors wrote in their sentencing memo.
Chief Judge Martinez ordered HUGHES to complete three years of supervised release following prison and pay one of the victims just over $11,000 to compensate him for the legal fees incurred trying to clear title to his aircraft.
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Angelica Williams and Brian Werner.
Federal Jury Convicts Man for Pointing Laser at San Diego Police HelicopterRead the Press Release
Assistant U. S. Attorneys John Parmley (619) 546-7957 and Jonathan Shapiro (619) 546-8225
NEWS RELEASE SUMMARY – November 19, 2020
SAN DIEGO – Rudy Alvarez of Lemon Grove was convicted by a federal jury late yesterday for knowingly aiming the beam of a laser pointer at a San Diego Police helicopter as the aircraft flew over a protest in the wake of George Floyd’s death in Minneapolis.
After a two-day trial, the jury deliberated for 2.5 hours before rendering its verdict. Alvarez is scheduled to be sentenced on February 22 at 9 a.m. before Chief U.S. District Judge Larry Burns.
“This is a very important verdict,” said U.S. Attorney Robert Brewer. “This kind of crime could have a disastrous impact if a pilot’s sight is compromised. We support the Constitutional rights of free speech and assembly, but the rule of law must be respected. It’s there for a reason – to protect the public and law enforcement from danger.” Brewer praised prosecutors John Parmley and Jonathan Shapiro as well as San Diego police officers and detectives and agents from the FBI for their diligence in seeking justice.
“The guilty verdict returned in this case is a reminder that using a laser pointer as a weapon against aircraft is a federal crime and offenders will face justice,” said FBI Special Agent in Charge Suzanne Turner. “The FBI will continue to protect the public and pilots from the dangerous actions of those intentionally using lasers pointers to cause harm.”
The incident occurred at a large demonstration that passed through the area of 500 University Avenue in San Diego on June 4 at 8:30 p.m. Two officers from the San Diego Police Department’s Air Support Unit were monitoring the crowd in a marked San Diego Police Department helicopter. The officers reported that one of the demonstrators in the crowd was shining a laser at their aircraft that threatened their ability to safely operate the helicopter.
The San Diego police officers were able to locate the man who pointed the laser at the helicopter multiple times over the course of an hour as he marched with the protestors in downtown San Diego.
DEFENDANT Case Number 20cr1809
Rudy Alvarez Age: 25 Lemon Grove
SUMMARY OF CHARGES
Aiming a Laser Pointer at an Aircraft – Title 18, United States Code, Section 39A
Maximum penalty: Five years in prison, $250,000 fine
AGENCIES
San Diego Police Department
Federal Bureau of Investigation
Federal Jury Convicts Lady Lake Man of Possessing Child PornographyRead the Press Release
Ocala, Florida – A federal jury has found Terry George Zimmerman (73, Lady Lake) guilty of possession of child pornography. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for April 23, 2021.
Zimmerman was originally indicted on December 11, 2019. A superseding indictment followed on February 26, 2020.
According to testimony and evidence presented at trial, the Lady Lake Police Department executed a search warrant at Zimmerman’s residence and seized several electronic devices containing materials involving the sexual exploitation of young children. Agents from Homeland Security Investigations recovered more than 2,395 images and 309 video files depicting children who were being sexually assaulted and exploited from two computers and twelve USB drives that Zimmerman had kept in his living room and bedroom.
Zimmerman had previously been convicted of this same child sexual exploitation offense on June 19, 1995, in New York. As a result, he faces a minimum mandatory sentence of 10 years for this latest conviction.
This case was investigated by Homeland Security Investigations, the Lady Lake Police Department, and the Ocala Police Department. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Tyrie K. Boyer.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Grand Jury B Indictments Announced for NovemberRead the Press Release
United States Attorney Trent Shores announced today the results of the November Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Sheila Marie Brewer. Felon in Possession of a Firearm. Brewer, 29, of Tulsa, is charged with being a felon in possession of a Springfield 12-gauge shotgun. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Country Sheriff’s Office are the investigative agencies.
Oscar Manuel Cabrera-Westerheidy. Aggravated Sexual Abuse of a Minor Under Twelve Years of Age in Indian Country; Abusive Sexual Contact With a Minor Under Twelve Years of Age in Indian Country; Abusive Sexual Contact With a Minor Between Twelve Years and Sixteen Years of Age in Indian Country. Cabrera-Westerheidy, 37, of Tulsa, is being charged with engaging in sexual acts and sexual contact with a young female under the age of 12. The FBI and Tulsa Police Department are the investigative agencies.
Roger Cervantez. Felon in Possession of a Firearm and Ammunition; Possession of an Unregistered Weapon Made From a Shotgun Having a Barrel of Less Than 18 Inches in Length. Cervantez, 35, of Tulsa, is charged with being a felon in possession of an unregistered Remington 20-gauge shotgun and 23 rounds of ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Kyle Marche Williams and Marcus Layvon Jackson II. Obstructing, Delaying, and Affecting Commerce by Robbery; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Felon in Possession of Firearm and Ammunition; Conspiracy to Obstruct, Delay, and Affect Commerce by Robbery; Conspiracy to Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence. (superseding) Williams, 29, of Dallas, and Jackson, 28, of Desoto, Texas, is alleged to have unlawfully took packages from an employee of UPS by means of actual and threatened force, including threatening him with a firearm if he did not comply. They are both being charged with possessing firearms, a Glock .375 SIG caliber pistol and a SSCY 9mm luger caliber pistol, during and in relation to a crime of violence. Jackson is a 4-time convicted felon; therefore, he is being charged with being a felon in possession of a Glock, .375 SIG caliber pistol and 31 rounds of ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Owasso Police Department are the investigative agencies.
Brannon Michael Jefferies. Failure to Register as a Sex Offender. Jefferies, 34, of Tulsa, is charged with knowingly failing to register as a sex offender. The FBI and U.S. Marshals Service are the investigative agencies.
Stephanie Ann Manning. Felon in Possession of a Firearm; Assault With a Dangerous Weapon in Indian Country; Simple Assault in Indian Country (Misdemeanor). Manning, 30, of Broken Arrow, is charged with being a felon in possession of a Rock Island Armory .45 caliber semiautomatic pistol. Manning is further being charged with assault after hitting a man with a baseball bat. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Broken Arrow Police Department are the investigative agencies.
Michael Osage Moses. Felon in Possession of a Firearm and Ammunition. Moses, 35, of Sand Springs is charged with being a felon is possession of a Sturm & Ruger semi-automatic 9mm pistol and seven rounds of ammunition. Moses is a 4-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Muscogee (Creek) Nation Lighthorse Police are the investigative agencies.
David Gene Randle. Felon in Possession of a Firearm and Ammunition. Randle, 50, of Mannford, is charged with being a felon in possession of a Taurus 9mm caliber semi-automatic pistol, a Winchester .22 caliber semi-automatic rifle, a Stevens 20-gauge shotgun, and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Creek County Sheriff’s Office are the investigative agencies.
Christopher Scott Smith. Possession of Methamphetamine With Intent to Distribute. Smith, 31, is charged with knowingly possessing methamphetamine with the intent to distribute. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Kerri Jo Stevens. Theft Over $1,000 in Indian Country; Aggravated Identity Theft; Bank Fraud. Stevens, 37, of Tulsa on Sept. 27, 2020, allegedly stole the victim’s wallet, containing cash and other items of value, with the total property value exceeding $1,000. On Sept. 28, Stevens then used the victim’s debit card issued by the Bank of Oklahoma, to obtain funds, credits, assets, securities, and other property owned by the Bank of Oklahoma. The FBI and Sand Springs Police Department are the investigative agencies.
Dustin Thebeau. Attempted Possession of Methamphetamine With Intent to Distribute. Thebeau, 33, of Mountain Grove, Missouri, is charged with knowingly attempting to possess with intent to distribute 500 grams or more of methamphetamine.
Clayton Jacob Waldon. Distribution of Child Pornography; Possession of Child Pornography. Waldon, 50, of Tulsa, is charged with possessing and distributing material that contained images and videos of child pornography involving a minor who had not attained the age of 12. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Tulsa Police Department, and Oklahoma State Bureau of Investigations are the investigative agencies.
Nicole Deon Williams. Felony Murder in the First Degree in Indian Country; Robbery in Indian Country. Williams, 36, of Tulsa, is charged with causing the unlawful killing of another individual. Williams allegedly aided in coordinating a robbery and during the robbery attempt, Williams’ accomplice killed the victim by shooting him in the chest. The FBI and Tulsa Police Department are the investigative agencies.
Candelaria V. Yazzie. Child Neglect in Indian Country. Yazzie, 24, of Jenks, is charged with three counts of child neglect. According to the indictment, Yazzie left a female victim, who is under the age of 18, unsupervised within a locked car in a liquor store parking lot. Further, Yazzie also allegedly neglected to adequately provide for two other female victims, under the age of 18, left unsupervised in an apartment. The FBI and Tulsa Police Department are the investigative agencies.
Cody Lloyd Youtsey. Abusive Sexual Contact in Indian Country. Youtsey, 28, of Oilton, is charged with knowingly engaging in non-consensual sexual contact with the female victim. The FBI and Oilton Police Department are the investigative agencies.
Evansville Police Officer honored by Justice Department with Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Evansville – Attorney General William P. Barr and U.S. Attorney Josh J. Minkler announced today that Evansville Police Officer Phillip Smith was a recipient of the Fourth Annual Attorney General’s Award for Distinguished Service in Policing. This year 23 law enforcement officers and deputies from 12 jurisdictions across the country were recognized for their exceptional work.
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. This year, the department received 214 nominations recognizing a total of 355 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
“There is no career nobler than that of a police officer, and the 23 officers we honor this year demonstrate that clearly,” said Attorney General William P. Barr. “These individuals are distinguished in their service for field operations and criminal investigations – from investigating homicides to drug trafficking to sexual exploitation and assault – to making positive change in their communities through innovative outreach to residents. Their actions are a testament to what law enforcement officers contribute to our nation each day, keeping us safe from violent crime and building more trusting communities, and they are deserving of our collective thanks. I am pleased to honor these 23 officers for their distinguished service in policing.”
“Congratulations to Officer Phillip Smith and the entire Evansville Police Department,” said Minkler. “Officer Smith has garnered the respect of the community and now the country through the way he serves the citizen he has sworn to protect. He has set an example for all officers across Indiana and the county on how they too can make a positive impact on the communities they serve. Job well done sir."
“There isn’t an Officer out there more deserving of this award than Phil Smith,” said Evansville Police Chief Billy Bolin. “Through his infectious personality, he leaves a trail of laughter and smiles wherever he goes. He is not only an asset to the Evansville Police Department but to the entire profession of law enforcement.”
The Department of Justice works closely with local law enforcement and strives to be a ready resource for them. The Attorney General’s Award for Distinguished Service in Policing is just one more way the department can show its continued commitment to the profession and honor the men and women who so bravely serve it.
INNOVATIONS IN COMMUNITY POLICING
Officer Philip Smith, Evansville Police Department
Officer Philip Smith is the symbol of community policing in Evansville, Indiana, where he serves as the special project’s coordinator for the Evansville Police Department. His community outreach efforts have put a human face on the badge, and his efforts have encouraged the public to work with the police and the police to have an ally in the public. Smith runs the department’s Facebook page, which now has 45,000 subscribers – in a city of 117,000. His social media activity includes weekly videos celebrating different officers and community members, and photos of police and kids on department-sponsored trips to theme parks. He also helped create the department’s breast cancer awareness fundraiser and established a program where salons and barbershops host officers for informal chats with their patrons. All this community outreach has meant that when the department now has to explain an officer involved shooting, or asks the public for help in recognizing a criminal, there is a community now pre-disposed to understand and work with the department more than ever before.
Information on the other recipients can be found on the national release at the following link: https://www.justice.gov/opa/pr/justice-department-honors-law-enforcement-officers-and-deputies-fourth-annual-attorney
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.
Erie Woman Prepared False Tax Returns for Herself and OthersRead the Press Release
Erie, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of filing false income tax returns and aiding and assisting the filing of false and fraudulent income tax returns, United States Attorney Scott W. Brady announced today.
Andrea Jones, 52, pleaded guilty to fourteen counts before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that Jones prepared and filed false federal income tax returns for herself and others, who used her as their return preparer, for tax years 2011, 2012, 2013, 2014 and 2015.
Judge Haines scheduled sentencing for March 9, 2021 at 10:30 a.m. The law provides for a total sentence of 42 years in prison, a fine of $3,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Jones on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Jones.
Erie Man Charged with Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to unlawfully exporting firearm ammunition magazines, smuggling goods from the United States, and possessing unregistered firearms, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Donald Robert Witherow, 47, 6661 Buffalo Road, Erie, Pennsylvania, as the sole defendant.
According to the Superseding Indictment presented to the court, in September 2019, Witherow, without first obtaining the required approval, sent ammunition and ammunition magazines to the Netherlands. In addition, on March 26, 2020, Witherow possessed unregistered firearms, namely destructive devices.
The law provides for a maximum total sentence of 40 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the superseding indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Employee of Government Contractor Pleads Guilty to Fraud and Kickback ChargesRead the Press Release
An employee of a government contractor pleaded guilty today to his involvement in a scheme to overbill a contract administered by the General Services Administration (GSA) by approximately $1.25 million, and solicit and receive kickbacks from a subcontractor in exchange for providing that subcontractor valuable contract modifications.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Special Agent in Charge Eric D. Radwick, Mid-Atlantic Division, Office of Investigations, GSA Office of Inspector General; Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office; and Special Agent in Charge Robert J. Smolich of the Department of State’s Office of Inspector General, Office of Investigations, Americas, Pacific, and Asia Division made the announcement.
Elmer Baker, 68, of Gulf Breeze, Florida, pleaded guilty to one count of conspiracy to violate the anti-kickback statute and four counts of wire fraud before Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia. Sentencing will be scheduled for a later date.
According to admissions made in connection with the plea agreement, Baker served as the project manager for his company on the contract administered by the GSA. After his company awarded a subcontract to a construction company for work on the facility, Baker began receiving kickbacks in the form of meals, golf sessions, vacations, and other things of value. In or around 2015, Baker began demanding monetary kickbacks that were valued at 10 percent of the amount of each of the subcontract modifications that he awarded the subcontractor. Baker sent the subcontractor fake invoices to make it appear as though the payments he was receiving were for legitimate work, and he set up a shell company to receive the payments. Additionally, Baker took the subcontract estimates provided to him and illegally inflated them in his requests to the GSA. Over the course of several subcontract modifications, Baker defrauded the GSA out of approximately $1.25 million.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority on government procurement fraud and corruption matters.
The GSA Office of Inspector General, FBI’s Washington Field Office, and the State Department Office of Inspector General are investigating this case. Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section is prosecuting the case.
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.
Dover Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Preston Elliott, 25, of Dover, pleaded guilty in federal court to possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 6, 2019, a New Hampshire State Police trooper conducted a motor vehicle stop in North Hampton. In addition to the driver, Elliott was the sole passenger in the back seat of the vehicle. After the driver consented to a search of the vehicle, the trooper found over 503 grams of fentanyl in a bag at the Elliott’s feet. Elliott also had $1,065 in cash.
Elliott is scheduled to be sentenced on February 25, 2021.
“Fentanyl traffickers are jeopardizing public health and safety by distributing a potent and deadly drug,” said U.S. Attorney Murray. “The large quantity of fentanyl involved in this case could have led to many overdoses and deaths. I am grateful to the New Hampshire State Police and the DEA for their efforts to prevent this significant amount of fentanyl from being distributed in the Granite State.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Dominican National Sentenced for Unlawful Re-EntryRead the Press Release
BOSTON – A Dominican national was sentenced today for unlawful re-entry of a deported alien. After reentering the United States within months of being removed, the defendant was charged with a heroin-related offense and was in possession of a phone that had been used in a drug transaction with an individual who died of an apparent overdose.
Joel Perez Matos, 35, who resided in Boston, was sentenced by U.S. District Court Judge Indira Talwani to 48 months in prison and three years of supervised release. In August 2020, Matos pleaded guilty to unlawfully re-entering the United States after being deported. He has been detained since his arrest in April 2020 and will be subject to deportation following his sentence.
Perez Matos unlawfully re-entered the United States after being deported in December 2019. He had previously been removed in February 2016, and had unlawfully returned to the United States later that year.
On March 22, 2020, within a few months of having been removed from the United States, Perez Matos was arrested by local law enforcement in Stow and charged with a heroin-related offense. At the time of his arrest, Perez Matos was in possession of a cell phone that had been used the previous day to set up a drug transaction with a Massachusetts resident. On March 22, 2020, that resident died of an apparent drug overdose. When arrested, Perez Matos presented police with an out-of-state driver’s license in a fake name.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. The Stow Police Department also provided valuable assistance. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, prosecuted the case.
Dominican National Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Dominican national was sentenced today for distributing fentanyl.
Jose Guerrero-Soto, 26, was sentenced by U.S. District Court Judge William G. Young to two years in prison and two years of supervised release. In July 2020, Guerrero-Soto pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. Guerrero-Soto was initially charged by criminal complaint and has been in custody since Sept. 12, 2019.
With a companion, Guerrero-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
United States Attorney Andrew Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division prosecuted the case.
Dominican National Pleads Guilty to Drug TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to heroin trafficking.
Angel Martinez-Peguero, 28, formerly of Lawrence, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, one count of possession with intent to distribute 100 grams or more of heroin and one count of possession of a firearm in furtherance of a drug trafficking crime. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 14, 2021.
In January 2019, Angel Martinez-Peguero was charged along with his brother Alexander Martinez-Peguero, 39, who previously pleaded guilty.
On Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest. During a search of the Martinez-Peguero brother’s residence agents seized over $15,000 cash and $17,000 worth of jewelry.
The charges of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and possession with intent to distribute 100 grams or more of heroin carry a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of five years in prison to be served consecutive to any sentence imposed for the underlying drug trafficking crime. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Dominican National Indicted on Fentanyl Possession ChargeRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was indicted by a federal grandy jury for fentanyl possession.
Esteban Nivar Araujo, 38, was indicted on one count of possession with intent to distribute 40 grams or more of fentanyl. Araujo was charged by criminal complaint in October 2020 and arrested.
According to charging documents, on July 25, 2019, Nivar Araujo possessed with intent to distribute 40 grams or more of fentanyl.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charging statute provides for a sentence of at least five years and up to 40 years in prison, a least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Charles B. Weinograd of Lelling’s office is prosecuting the case.
Dominican Man Sentenced to 78 Months for Participation in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Luis Angel Polanco Huma, 24, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, was sentenced to 78 months in federal prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Polanco Huma participated in a drug trafficking organization that was led by Sergio Martinez. Martinez employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Polanco Huma assisted Martinez with distribution of bags of fentanyl to distributors serving the Martinez phone banks. He then collected cash proceeds from the sales and delivered them to the leaders of the organization. From June to December, 2017, Polanco Huma was primarily responsible for delivering all 200-gram bags for distributors, which investigators would prove totaled over 36 kilograms of fentanyl.
Polanco Huma previously pleaded guilty on August 14, 2019. He will likely face deportation after he has served his sentence.
“Interstate fentanyl traffickers profit from peddling a deadly drug in New Hampshire,” said U.S. Attorney Murray. “Sales of their product have caused incalculable damage to communities throughout our state. The successful investigation and prosecution of the Martinez organization is an example of what can be achieved by law enforcement agencies working collaboratively across territorial and jurisdictional lines. Those who distribute fentanyl should be aware that these agencies are working together every day to dismantle their operations and bring them before the court to face justice.”
“The state of New Hampshire is faced with an opioid crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. MacDonald and Seth R. Aframe.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Doctor and Office Manager Charged for Illegally Distributing Oxycodone from Midtown Manhattan PracticeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today the unsealing of an Indictment in Manhattan federal court charging HOWARD ADELGLASS, a licensed physician, and MARCELLO SANSONE, an employee at ADELGLASS’s clinic, with conspiracy to distribute oxycodone illegally. The defendants were arrested yesterday afternoon, and will be presented before United States Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court today. The case is assigned to U.S. District Judge Kimba M. Wood.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Howard Adelglass betrayed his profession by writing thousands of medically unnecessary opioid prescriptions for more than a million oxycodone pills in less than three years. Marcello Sansone allegedly got promoted from trusted gatekeeper patient to office manager, helping Adelglass run his grotesquely lucrative pill mill. Now both are in custody and facing federal felony charges.”
FBI Assistant Director William F. Sweeney Jr. said: “The alleged behavior of Adlelglass, a licensed physician, who held a position of trust in our society, causes lasting harm to our communities. To intentionally peddle these substances into our communities, especially to those who have struggled to overcome the addiction of powerful painkillers, is an offense against all of society. The type of conspiracy alleged here has led to devastating consequences for addicted patients and their families, and has placed an immense burden on communities who will be left to pick up the pieces of shattered lives. This particular alleged operation has been shut down, but our message to others engaging in the same type of illegal activity should be clear – put the prescription pad away. Your medical degree won’t provide you immunity from federal charges or the consequences that will follow.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The defendants allegedly operated a greed-fueled scheme that callously put lives at risk and worsened the opioid epidemic that plagues our country. Working with our law enforcement partners, we will continue to hold accountable medical professionals who act like drug dealers at the expense of some of the most vulnerable people in our society.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
HOWARD ADELGLASS is a licensed physician who, with MARCELLO SANSONE, operated a pain-management clinic located in Midtown Manhattan (the “Clinic”). The Clinic serviced purported patients seeking oxycodone and other pain-relief medications commonly diverted for illicit purposes. In exchange for cash payments, ADELGLASS wrote thousands of prescriptions for large quantities of oxycodone to individuals who ADELGLASS knew did not need the pills for any legitimate medical purpose. Many of the purported patients were addicted to opioids and, in some cases, sold oxycodone pills on the street to drug users. Most patients were referred to the Clinic by existing, trusted “gatekeeper” patients, of which SANSONE was one. The Clinic primarily operated on a cash-only basis, and generally operated only for a few hours per day, opening sometime between approximately 2:00 p.m. and 5:00 p.m. After serving as a gatekeeper patient, SANSONE’s role at the Clinic expanded beginning in or about October 2018, when he joined ADELGLASS in managing the Clinic’s operations. SANSONE helped to control access to ADELGLASS and the lucrative prescriptions he wrote for medically unnecessary oxycodone.
Between in or about November 2017 and in or about September 2020, ADELGLASS prescribed more than 1.3 million oxycodone pills. ADELGLASS generally dispensed these pills after conducting limited or no examination of the purported patient. The purported patients who obtained oxycodone through ADELGLASS and SANSONE at the Clinic were often drug-addicted individuals who failed drug tests administered by the Clinic. ADELGLASS nevertheless continued to prescribe large quantities of oxycodone to these patients, many of whom traveled long distances to obtain the illicit oxycodone from the Clinic.
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HOWARD ADELGLASS, 65, of New York, New York, and MARCELLO SANSONE, 35, of Old Bridge, New Jersey, are charged each with one count of conspiracy to distribute oxycodone illegally, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI, NYPD, and HHS-OIG. She also thanked for its assistance the Drug Enforcement Administration (“DEA”) Tactical Diversion Squad - New York City, which comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, New York National Guard, New York City Department of Investigation, and New York State Department of Health Bureau of Narcotics Enforcement.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo and Daniel G. Nessim are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Detroit-area man sentenced to 9 years for possessing stolen firearms and currencyRead the Press Release
U.S. Attorney Justin Herdman announced today that Filmel Williams, Jr., age 20, of Brownstown, Michigan, was sentenced by U.S. District Court Judge James G. Carr to nine years imprisonment after Williams pleaded guilty to transportation of a stolen firearm, possession of a stolen firearm and ammunition, possession of counterfeit United States currency, and possession of a firearm by a prohibited person.
According to court documents, in 2018, Secret Service agents learned of a scheme involving the defendant, in which Williams and others would use online classified ads to purchase firearms, including pistols and assault rifles, from victims in Northwest Ohio in exchange for counterfeit currency. After acquiring the firearms, Williams and others would transport the weapons to the Detroit area and offer them for sale.
After learning of this scheme, law enforcement arranged for a controlled sale of a firearm to Williams and the other defendants. Williams and his driver arrived at the scene of the sale, and Williams was arrested as soon as he exited the vehicle. Law enforcement agents found counterfeit currency in Williams’ possession. Simultaneously, the driver of the vehicle struck a police vehicle, fled the scene, and struck another police vehicle on I-75 during a high-speed pursuit.
At the time of his arrest, Williams had accrued convictions of larceny, possession of a controlled substance, interfering with a police investigation, and brandishing a firearm.
This case was investigated by agents with the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorney Robert Melching.
DNA Found on Firearm Lands Convicted Felon Back in PrisonRead the Press Release
Fort Myers, FL – United States District Judge John L. Badalamenti has sentenced Charles Arthur Herzberger (26, North Fort Myers) to three years and one month in federal prison for possessing a firearm as a convicted felon. Herzberger had pleaded guilty on December 20, 2019.
According to court documents, officers from the Fort Myers Police Department observed Herzberger driving without wearing a seatbelt. As the officers attempted to maneuver their patrol vehicle into position to conduct a traffic stop, Herzberger quickly pulled into a parking space at a convenience store, exited the vehicle, and sprinted from the car. After a brief foot pursuit, Herzberger was apprehended. Officers searched the vehicle and located a loaded 9mm handgun under the driver’s seat. DNA analysis performed by a Florida Department of Law Enforcement analyst revealed that Herzberger’s DNA profile matched the DNA extracted from the firearm. As a previously convicted felon, Herzberger is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Myers Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Convicted Pipe Bomber Sentenced to 33 More Years in Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Lombardi, 62, formerly of Tallahassee, Florida, was sentenced to serve an additional 33 years in federal prison at a hearing today at the U.S. Courthouse in Tallahassee. The sentencing hearing was a result of Lombardi’s conviction in 2000 for planting and detonating two pipe bombs on the campus of Florida Agricultural and Mechanical University (FAMU) in August and September of 1999. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“Lawrence Lombardi’s criminal acts terrorized FAMU faculty, students, and their family members during the fall of 1999 and generated fear in our community that lingered on well past his arrest,” said U.S. Attorney Keefe. “The U.S. Attorney’s Office is committed to doing everything legally possible to pursue, prosecute, and punish criminals like Lombardi, whose reckless acts are intended to injure or kill innocent citizens.”
In 1999-2000, the United States Attorney’s Office for the Northern District of Florida prosecuted Lombardi for detonating two pipe bombs on the campus of the historically black university. Although no one was injured, the trial evidence left no doubt that the bombings were motivated by racial prejudice. The federal jury convicted Lombardi of six counts: two counts of maliciously damaging property, two counts of using a destructive device during and in relation to a crime of violence, and two counts of interfering with federally protected activities on the basis of race or color. Lombardi was subsequently sentenced to life plus 39 years in federal prison.
When Lombardi was sentenced in 2000, the two counts of using a destructive device during and in relation to a crime of violence were the most impactful because they carried significant mandatory sentencing requirements. Lombardi faced a mandatory consecutive term of 30 years’ imprisonment on the first count, and a mandatory consecutive term of life imprisonment on the second count. On the remaining four counts of the conviction, Lombardi was sentenced to concurrent terms of 108 months (or 9 years).
In 2019, the United States Supreme Court decided United States v. Davis, 139 S. Ct. 2319 (2019), and held that part of the definition of a “crime of violence” is unconstitutionally vague. Citing Davis, Lombardi filed a collateral motion in the district court challenging his two convictions for using a destructive device during and in relation to a crime of violence. While the government opposed Lombardi’s motion, the district court concluded that those two convictions were invalid under Davis.
When the two convictions were vacated, along with the mandatory consecutive penalties accompanying them, Lombardi sought to have his sentence reduced to time served in a motion filed by his attorney in February, 2020. The government opposed the motion and the district court determined that a resentencing on the four remaining counts of the conviction was warranted.
The Honorable District Judge Robert E. Hinkle heard victim impact statements from survivors of the bombings at today’s hearing before imposing a combined total sentence of 54 years. Lombardi has already served approximately 21 years in prison. Assistant United States Attorney Jordane Learn represented the government.
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 U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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.
Press Release - U.S. v. LombardiConvicted Armed Robber Sentenced to 15 Years in PrisonRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 15 years in prison for discharging a firearm during an armed robbery in Petersburg.
According to court documents, in November 2014, Deontae J. Hargrave, 28, committed an armed robbery of a 7-Eleven convenience store in Petersburg. When demanding money from the cashier, Hargrave fired a .40 caliber round of ammunition into the display case behind the cashier. Hargrave obtained approximately $40 and three packs of cigarettes from the robbery. Subsequently, Hargrave sent a threatening letter to a detective investigating a crime he was allegedly involved in.
In 2015, Hargrave pleaded guilty and was sentenced to a total of 237 months in prison. The U.S. Court of Appeals for the Fourth Circuit affirmed Hargrave’s convictions for the armed robbery (count one) and discharge of the firearm during the robbery (count two). The court, however, determined that the sentencing judge needed to more fully explain why he imposed a 15-year sentence on count two, as opposed to the mandatory minimum of 10 years. Following remand, sentencing judge again imposed a 15-year sentence on count two.
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 a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorney Kenneth Simon 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. 3:15-cr-37.
Connecticut Man Sentenced to Six Years for Unlawfully Possessing FirearmsRead the Press Release
PORTLAND, Maine: A Connecticut man was sentenced in federal court today in Portland for being a felon in possession of firearms, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced Jeremy Rogers, 26, to six years in prison and three years of supervised release. Rogers pleaded guilty on February 20, 2020.
According to court records, in the summer of 2019, Rogers moved to Maine. After living briefly in Lewiston, he moved in with a family in Rockport that owned numerous firearms. On August 18, 2019, he took a Stag Arms multi-caliber rifle and a Glock 9 mm pistol, loaded ammunition into each, and fired them on the property outside of the Rockport residence. Rogers was prohibited from possessing firearms because of his 2016 Connecticut convictions for Criminal Possession of a Firearm and Risk of Injury to a Child.
The FBI, the U.S. Border Patrol, and the Rockport, Rockland and Thomaston police departments investigated the case.
Cincinnati city council member arrested, charged with accepting $40k in bribesRead the Press Release
CINCINNATI – FBI agents arrested a Cincinnati city council member this morning after a federal grand jury charged him in a sealed indictment yesterday.
Alexander (also known as P.G.) Sittenfeld, 36, of Cincinnati, allegedly accepted eight checks totaling $40,000 in exchange for specific action in his role as a city official.
According to the six-count indictment, Sittenfeld accepted bribe money in 2018 and 2019, while promising to “deliver the votes” and perform other official action with respect to a development project before city council.
It is alleged that Sittenfeld corruptly solicited and received payments to a PAC he controlled.
Specifically, in November and December 2018, Sittenfeld promised he could “deliver the votes” in city council to support a development project in exchange for four $5,000 contributions to his PAC. It is alleged that Sittenfeld again corruptly accepted four $5,000 checks in September and October 2019.
For example, the indictment details that in November 2018, Sittenfeld indicated to undercover agents posing as investors that he would shepherd votes for the development project. He allegedly presented voting data showing that he is politically popular throughout Cincinnati and said he is likely to be the next mayor. Sittenfeld said, “I can move more votes than any other single person…,” according to the indictment. He allegedly reiterated in December 2018, “don’t let these be my famous last words, but I can always get a vote to my left or a vote to my right.”
Over the next several months, it is alleged Sittenfeld told the investors he was continuing to apply pressure, and promised to apply additional pressure, to public officials relating to their agreement involving the development project.
Sittenfeld is charged with two counts each of honest services wire fraud (up to 20 years in prison), bribery (up to 10 years) and attempted extortion by a government official (up to 20 years).
His initial appearance is scheduled for 1:30pm today.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Career Offender Is Sentenced to over 11 Years in Prison on Drug ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Ryan Eugene Farley, 31, of Catawba, N.C. was sentenced to 135 months in prison and four years of supervised release on federal drug charges. As a result of Farley’s multiple prior drug trafficking convictions, the Court today sentenced him as a career offender.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Donald G. Brown II, of the Catawba County Sheriff’s Office, join U.S. U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court records, between April 2019 and March 2020, Farley distributed narcotics in Catawba County and elsewhere. Court records show that on April 6, 2019, a deputy with the Catawba County Sheriff’s Office approached Farley for a traffic violation. Over the course of the encounter, law enforcement seized crack cocaine and $1,052 in drug proceeds from Farley. According to court records, on August 12, 2019, a Catawba County Sheriff’s Office deputy initiated a traffic stop of Farley’s vehicle in Claremont, North Carolina, in connection with an outstanding arrest warrant. Law enforcement recovered from Farley’s seized vehicle four clear plastic bags that contained what was later determined to be crack cocaine. On March 3, 2020, law enforcement arrested Farley on a federal arrest warrant for the two aforementioned incidents. In addition to the previously seized narcotics, law enforcement also located at Farley’s residence additional crack cocaine, cash, a digital scale, and drug paraphernalia. On July 24, 2020, Farley pleaded guilty to three counts of possession with intent to distribute crack cocaine.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Catawba County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Businesswoman Sentenced for $1M Fraud and Embezzlement SchemeRead the Press Release
NORFOLK, Va. – A Chesapeake businesswoman was sentenced today to 42 months in prison and ordered to pay over $1 million in restitution for engaging in a fraudulent rental agreement scheme and embezzling monies entrusted to her for postage.
According to court documents, Tonya Saxby, 46, owned and operated Mail Solutions of Virginia LLC, which was an authorized dealer for Neopost (now Quadient), a mail, shipping and document solutions company in Connecticut. Neopost manufactured mail processing equipment that it leased through rental agreements to customers throughout the United States. In her capacity as an agent for Neopost, Saxby negotiated equipment rental agreements with Ferguson Enterprises, a company headquartered in Newport News, Virginia. In order to get business with Ferguson Enterprises, Saxby negotiated agreements with it for monthly rental payments that were significantly lower than Neopost’s pricing guidelines, knowing that Neopost would not have approved them. She created 82 false and fraudulent rental agreements, forged the signatures of Ferguson Enterprises employees onto them, and sent them to Neopost. Neither Neopost nor Ferguson Enterprises were aware of the fraudulent rental agreements.
According to court documents, Saxby earned $91,707.29 in commissions to which she was not entitled. When Neopost discovered the fraud, it reclaimed and disposed of the equipment it had delivered to Ferguson Enterprises, resulting in a loss to Neopost of $801,634.46. Saxby also embezzled monies provided to her by customers for the purpose of purchasing postage from the U.S. Postal Service to load onto postal meters installed on their equipment, resulting in a loss of $38,544.32 to the U.S. Postal Service, which had already loaded the postage. Saxby embezzled an additional $91,112.21 from customers that entrusted her with money to purchase postage.
The total loss sustained by victims as a result of Saxby’s fraud was $1,022,998.28.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Karl Schumann, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Alan M. Salsbury 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. 2:20-cr-20.
American Contractor Sentenced to Prison for Theft of Government Equipment on U.S. Military Base in AfghanistanRead the Press Release
An American military contractor was sentenced today to more than three years in prison for his role in a theft ring on a military installation in Kandahar, Afghanistan.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Larry J. Green, 43, of Chesapeake, Virginia was sentenced before U.S. District Judge Arenda L. Wright Allen to 41 months imprisonment to be followed by two months of supervised release, and ordered to pay restitution in the amount of $179,708. In July 2020, Green pleaded guilty to one count of conspiracy to defraud the United States and commit theft of property of value to the United States worth over $300,000; one count of theft of property of value to the United States; and one count of aiding and abetting the submission of false statements.
Green admitted that, between April 2015 and July 2015, he and others conspired to and did steal property of value to the United States including generators and a truck. Green negotiated the sale of the stolen property with a third-country national middleman, who facilitated the sale of the items to unknown persons in Kandahar, Afghanistan. Green admitted that, in order to effectuate the theft of the generators, he aided and abetted one of his co-conspirators, Varita Quincy, a security badging and escort pass supervisor, in the creation of false official documents.
The false official documents facilitated both the entry of unknown and unvetted Afghan nationals and their vehicles onto the military installation and effectuated the removal of the stolen property from the installation. The falsified documents were used to deceive security officers and gate guards and compromised the security of U.S. military and civilian personnel on the military installation. Quincy pleaded guilty to similar charges on Oct. 13, 2020.
Sentencing for Varita Quincy is set for Feb. 23, 2021.
SIGAR investigated the case with help from Army Criminal Investigation Command (CID) and the 939th Military Police Detachment of the Indiana Army National Guard. Trial Attorneys Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section, Rosaleen O’Gara of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia are prosecuting the case.
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.
22 Individuals Indicted in a Methamphetamine Drug ConspiracyRead the Press Release
Twelve individuals were arrested today for allegedly taking part in methamphetamine trafficking operations, announced U.S. Attorney Trent Shores. The arrests were part of an Organized Crime Drug Enforcement Task Force (ODETF) operation.
The takedown resulted from an indictment filed this week charging 22 individuals for two counts of methamphetamine drug conspiracy and other charges. Twelve indicted defendants were arrested and three others were already in custody.
The alleged crimes involved couriers and distributors of methamphetamine transported from Mexico. The deadly drug was brought up to Tulsa and then provided to distributors who sold the methamphetamine in the Northern District of Oklahoma
“Today’s takedown of another drug trafficking operation is a reminder that even in the midst of a pandemic, illicit drugs are making their way into our communities,” said U.S. Attorney Trent Shores. “In the last two weeks, federal prosecutors have charged more than 50 defendants for their roles in heroin or methamphetamine distribution networks. I’m thankful for the diligent work of the hundreds of law enforcement officers who made these arrests happen.”
Count 1 of the indictment charges 14 defendants, including couriers and distributors, with conspiring to possess with intent to distribute 500 grams or more of methamphetamine and to distribute 500 grams or more of methamphetamine.
In Count 2 of the indictment, six defendants are charged with conspiring to possess with intent to distribute methamphetamine and to distributing methamphetamine. The accused distributors named in Count 2 allegedly worked together to mutually benefit from the illicit drug sales. The remaining counts involve drug deals made on different dates by multiple defendants.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles 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.
Thursday’s law enforcement action was led by the Drug Enforcement Administration and Oklahoma Bureau of Narcotics and Dangerous Drugs in partnership with the Oklahoma Highway Patrol, Tulsa Police Department, Thursday’s law enforcement action was led by the Drug Enforcement Administration and Oklahoma Bureau of Narcotics and Dangerous Drugs in partnership with the Oklahoma Highway Patrol, Tulsa Police Department, Tulsa County Sheriff’s Office, Broken Arrow Police Department, Rogers County District Attorney’s Office, Miami Police Department, Bureau of Indian Affairs, and in Kansas- the Kansas Bureau of Investigation, Parsons Police Department and Labette County Sheriff’s Office.Assistant U.S. Attorney Eric O. Johnston is prosecuting the case.
20 Members of A Violent Gang Charged for Drug Trafficking and Firearms Violations in Santa Isabel, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On November 9, 2020, a federal grand jury in the District of Puerto Rico returned an indictment charging 20 violent gang members with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) Ponce Strike Force investigated the case.
“We are committed to dismantling and removing the threat posed by criminal organizations that insist on flooding our communities with narcotics and violence,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this successful operation. Our continued collaboration is critical to dismantle these criminal organizations.”
“The Drug Enforcement Administration initiated Project Safeguard to target violent drug trafficking networks like the one taken down this week here in Puerto Rico,” said Acting Administrator Timothy J. Shea. “Building on our relationships with law enforcement organizations like the Puerto Rico Police Bureau Strike Force, as well as the FBI, and U.S. Marshal’s Service, DEA is helping to make communities in America and her territories safer because no one should have to live with bullets flying and drug dealing right outside their doors.”
DEA Caribbean Division Special Agent in Charge, A.J. Collazo said that “Yesterday’s arrests are a reminder of our message to local drug trafficking organizations that our inter-agency consolidated efforts to track them down and bring them to justice, will continue. Our enforcement operations will prevail, to enhance the safety of our communities and families. We welcome DEA’s Administrator, Timothy Shea to Puerto Rico to share in the success of this operation.”
The indictment alleges that from in or about the year 2015, to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine, cocaine base (commonly known as “crack”), and marihuana, within 1,000 feet of the Rincón Taíno and the Pedro Descartes Public Housing Projects (PHP), and other areas in the municipality of Santa Isabel, all for financial gain and profit. Fifteen (15) defendants are facing one charge for possession of firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of $3,558,750.
As part of the conspiracy, the members of the drug trafficking gang established a drug point that would move within different areas inside the public housing projects in order to avoid police detection. Some co-conspirators would collect the profits from the drug trafficking sales and travel within the municipality of Santa Isabel and other areas nearby to deliver the proceeds to the leaders of the organization. The defendants had access to different vehicles in order to transport money, narcotics, and firearms. The leaders had final approval authority to impose disciplinary action upon residents of the Rincón Taíno and Pedro Descartes PHP, on members of rival drug trafficking gangs, and on the members of the conspiracy if they disobeyed the rules imposed by the drug trafficking organization. The members of the gang would use force, violence, and intimidation in order to maintain control of the areas in which they operated. The defendants indicted are:
David Pacheco-Torres, a/k/a “Peluco”
Luis Enrique Torres-Torres, a/k/a “Riquito”
José M. Morales-Torres, a/k/a “Pipito”
Luis E. Brito-Rodríguez, a/k/a “Quiri”
Moisés Torres-Sánchez, a/k/a “Moi”
Juan Ramón Díaz-Valcárcel, a/k/a “Sombra”
Fabián Morales-Montes, a/k/a “Fabio”
José Fabián Morales-De Jesús, a/k/a “Fabián”
Jarette Fabián Morales-De Jesús, a/k/a “Jare”
Héctor A. Quintana-Santos, a/k/a “Hectito”
Eduardo Antongiorgi-Cartagena, a/k/a “Esquipi”
Eduardo Peña-Zayas, a/k/a “Jordan/Goldo”
Noel Malavé-Santiago
Bryan Torres-Torres, a/k/a “Puchita/Pucha”
José Osvaldo Reyes, a/k/a “Bubu”
Lisandra Baerga-Torres
Raúl L. Cabán-Ortiz, a/k/a “Rauly”
Marilyn Báez-Rentas
Kevin M. Pérez-Montañez
Christopher A. Cordero-Sostre
Gang Section Assistant U.S. Attorney Pedro R. Casablanca and Special Assistant U.S. Attorney Yanira Colón-García are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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18 November 2020
Young man who scouted for tanker truck loaded with 23 aliens heads to prisonRead the Press Release
LAREDO, Texas – A 20-year-old Laredo man has been sentenced after he admitted to conspiring to transport aliens, announced U.S. Attorney Ryan K. Patrick.
Luis Alberto Puente pleaded guilty Jan. 10, admitting he acted as a scout for a tanker truck loaded with 23 aliens.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Puente to serve a 51-month sentence to be immediately followed by three years of supervised release. At the hearing, the court noted his other criminal behavior while he was previously out on bond.
On Sept. 13, 2019, a tanker truck arrived at the Border Patrol (BP) checkpoint on Texas State Highway 359 near Bruni. At that time, a K-9 had alerted to the presence of concealed humans and/or narcotics. Authorities directed the driver to the secondary inspection area.
Instead of complying, he accelerated at a high rate of speed and fled the checkpoint. Authorities pursued him until he came to a stop on the side of the road and absconded into the brush.
During the pursuit, a blue Ford F-150 arrived at the checkpoint. Puente was the passenger in that vehicle. He ultimately admitted to acting as a scout for the tanker truck, looking out for law enforcement as the truck drove to San Antonio.
Law enforcement unlocked the hatch to the tank of the truck, releasing hot steam. They then recovered 23 people who had been standing in approximately two feet of water and sweating profusely. They asked for help and for fresh air.
All were determined to be in the United States illegally from Mexico, Guatemala, Ecuador and Honduras. They had paid to be smuggled into the country. Several described the fear they felt while riding in the tanker. One stated she was forced into the tanker against her will.
Puente has been in custody since violating his conditions of release where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Michael Bukiewicz prosecuted the case.
Woburn Man Indicted on Wire Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Woburn man was indicted yesterday in connection with a scheme to defraud an elderly relative of her interest in a three-family home.
Giorgio “George” Fiorenza, 50, was charged with one count of wire fraud and one count of aggravated identity theft. Fiorenza was previously charged by criminal complaint and arrested on Aug. 27, 2020.
The indictment alleges that between August and September 2017, Fiorenza defrauded the victim into unknowingly signing a deed conveying her interest in the property to his wife, and forged the victim’s name on a kinship affidavit concerning title to the property, both of which he caused to be recorded. Fiorenza then took out a $750,000 loan in his wife’s name and secured by the property, and subsequently caused the lender to foreclose on the property.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterbury Man Sentenced to More Than 7 Years in 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 DARRY JOSE GUERRERO, also known as “Domi,” 29, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by three 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. After Nestor Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The investigation revealed that Guerrero helped to maintain the Bishop Street apartment, and that he processed and packaged narcotics on behalf of the organization.
Guerrero 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 18, 2020, Guerrero 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.
Sosa-Ortiz pleaded guilty and awaits sentencing.
Guerrero, who was released on a $50,000 bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
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.
Waterbury Man Sentenced to More Than 5 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANCISCO LOPEZ, 34, of Waterbury, was sentenced today by U.S. District Judge Janet C. Hall to 66 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to the evidence disclosed during Lopez’s trial earlier this year, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that a Waterbury-based drug trafficking organization was receiving large quantities of heroin and cocaine from various suppliers and distributing narcotics in and around Waterbury. Intercepted communications indicated that, on two occasions in December 2018, Lopez ordered 150 grams of heroin from two other members of the conspiracy.
Three hundred grams of heroin is enough to produce 12,000 individual bags of heroin that can be sold for approximately $5 each on the street.
On February 3, 2020, a jury found Lopez guilty of one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin, and one count of using a telephone to facilitate a drug trafficking crime.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Lopez and 28 other individuals with various offenses related to the distribution of heroin, cocaine and crack cocaine. Lopez has been detained since his arrest on March 20, 2019.
On March 21, 2019, in association with the arrests of several of Lopez’s codefendants, investigators seized approximately 3,000 bags of heroin, 400 grams of cocaine, 350 grams of fentanyl/heroin mixed, 400 grams of heroin, 10 grams of crack, 20 pounds of marijuana, fentanyl patches, a one-kilogram press, four handguns, approximately $120,000 in cash and four vehicles.
All 29 defendants in this case have been convicted.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. 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 S. Dave Vatti and Nathaniel J. Gentile.
Wadena Insurance Agent Charged with Mail FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging JOHN DAVID PAULSON, 56, with two counts of mail fraud. PAULSON will make his initial appearance in U.S. District Court before a Magistrate Judge at a later date.
According to the allegations in the indictment, PAULSON owned and operated the David Paulson Agency Inc., an independent insurance agency located in Wadena, Minnesota. Between 2011 and 2018, PAULSON engaged in a scheme to defraud by stealing money he collected from his clients for their insurance premiums. As part of the scheme, PAULSON provided fake invoices to his clients that fraudulently inflated the amount of money they owed to their insurance companies. Instead of paying over the premiums to the insurance companies, PAULSON used much of his clients’ money for his own purposes, including paying his home mortgage and personal credit card bills. PAULSON’s scheme left his clients owing large amounts to their insurance companies or without insurance policies. In total, PAULSON stole approximately $524,000 from his clients.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the United States Postal Inspection Service. United States Attorney MacDonald also thanks the Wadena County Sheriff’s Office for their assistance with the investigation.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
JOHN DAVID PAULSON, 56
Wadena, Minn.
Charges:
- Mail fraud, 2 counts
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Utah Man and His Company Indicted for Wildlife TraffickingRead the Press Release
A Utah man and his company were charged in an indictment today with violating the Endangered Species Act and Lacey Act for their role in illegal wildlife trafficking, announced Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney John W. Huber of the District of Utah.
Jean-Michel Arrigona, 58, and his company Natur, Inc. in Midvale, Utah, sell wildlife in the forms of art, taxidermy mounts, bones, and skeletons. The indictment alleges that Arrigona imported wildlife into the United States without declaring it to U.S. Fish and Wildlife Service or customs authorities. He later resold the wildlife from the Natur store and its website.
The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, selling wildlife that had been illegally brought into the country. The Endangered Species Act and federal regulations require importers to declare wildlife when it enters the country. Between December 2015 and September 2020, Arrigona imported approximately 460 wildlife items without declaring them. The wildlife, primarily from Indonesia, included bats, lizards, turtles, insects, starfish, and mollusks. Arrigona did not import any live animals. Some of the wildlife, such as the flying fox (Pteropus sp.) and monitor lizard (Varanus sp.) are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which regulates trade in endangered or threatened species through permit requirements. The United States and 182 other countries are signatories to the CITES treaty.
The U.S. Fish and Wildlife Service’s Office of Law Enforcement in Redmond, Washington, conducted the investigation as part of Operation Global Reach. The operation focused on the trafficking of wildlife from Indonesia to the United States. Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Melina Shiraldi for the District of Utah are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
United States Attorney Josh Minkler announces his resignation as United States AttorneyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler has announced his resignation as the U.S. Attorney for the Southern District of Indiana effective, November 21st, 2020. Starting November 23rd, 2020, Josh plans on joining a private law firm in the Indianapolis area.
“Josh Minkler is a devoted public servant who has served the country and the citizens of the Southern District of Indiana with distinction,” said Attorney General William P. Barr. “I thank him for his service, leadership and integrity and wish him the best in his future endeavors.”
"Josh Minkler has earned praise from people of all political persuasions who are working to keep our cities and our state safe,” said Indiana Senator Todd Young. “I congratulate Josh on his outstanding career in public service, and I wish him the best."
“Josh Minkler has served Indiana well for more than two decades — first as an Assistant United States Attorney, then as my First Assistant and, most recently, as the United States Attorney for the Southern District of Indiana,” said Mayor Joe Hogsett. “He is a man of integrity and ethics, proving time and time again that his commitment to our community was paramount in his decision-making and leadership. I want to thank him for his service and wish him well in this next chapter of his career.”
U.S. Attorney Minkler was appointed by President Trump as the United States Attorney for the Southern District of Indiana and unanimously confirmed by the United States Senate. Minkler was sworn in as the current United States Attorney on October 10, 2017.
Prior to the Presidential appointment, Minkler was appointed by former Attorney General Holder to serve as United States Attorney in February of 2015. Later, in June of 2015, Minkler was unanimously appointed to serve as United States Attorney by the District Judges of the United States District Court for the Southern District of Indiana.
Prior to his first appointment as United States Attorney, Minkler served as First Assistant United States Attorney for former United States Attorney Joseph H. Hogsett. Minkler also served as Drug and Violent Crimes Unit Chief, and as an Assistant United States Attorney in the Criminal Division since 1994.
Before joining the office, he was an Assistant Prosecuting Attorney in Kent County, Michigan. A native of Muncie, Indiana, Minkler graduated Wabash College in 1985 and Indiana University Mauer School of Law in 1988.
Effective November 22nd, 2020, First Assistant United States Attorney John Childress will succeed Minkler as Acting United States Attorney for the Southern District of Indiana.
Union County Man Sentenced to 88 Months in Prison for Possessing and Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 88 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Nicholas Pecil, 33, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding indictment charging him with one count of distributing child pornography and one count of possessing child pornography. Judge Vazquez imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Pecil used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. In February 2017, law enforcement downloaded 11 videos of child sexual abuse from Pecil’s computer. After executing a search warrant at Pecil’s home in May 2017, agents located more than 1,000 videos and over 6,000 images of child sexual abuse on Pecil’s computers. Pecil admitted that he used the peer-to-peer file-sharing program to make images and videos of child sexual abuse available for others to download from his computer.
In addition to the prison term, Judge Vazquez sentenced Pecil to 15 years of supervised release and ordered him to register as a sex offender.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.
U.S. Attorney’s Office Receives Funding to Hire Prosecutor Dedicated to Pursuing Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Acting United States Attorney Antoinette T. Bacon announced today that the U.S. Attorney’s Office for the Northern District of New York has been allocated funding to hire a prosecutor, for a one-year term, who will focus on cases involving fraudulent schemes to unlawfully obtain unemployment insurance (UI) benefits, and related offenses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 allocated $270 billion for supplemental federal UI benefits. Additionally, President Trump directed that $44 billion in federal Disaster Relief Funds be used to provide supplemental UI benefits to eligible claimants. The substantial increase in funding for UI benefits spurred a dramatic spike in UI fraud across the country, resulting in the theft of federal funds intended to help those struggling with unemployment during the current pandemic and economic crisis.
Acting U.S. Attorney Antoinette T. Bacon stated: “We are grateful for the creation of this additional Assistant U.S. Attorney position, which will add to our existing efforts to prosecute, prevent and deter the torrent of unemployment insurance fraud that we have seen since the pandemic started. These investigations are complex – in some instances, involving thousands of unemployment claims filed in the names of people whose identities have been stolen – and often involve organized fraud rings based overseas. The Department of Justice, along with its federal and state partners, is aggressively pursuing these pernicious frauds that target programs created for people struggling with the economic effects of the coronavirus pandemic.”
The Department of Justice, in close coordination with the U.S. Department of Labor and other federal agencies, created the U.S. Department of Justice National Unemployment Insurance Fraud Task Force. This task force is charged with investigating numerous CARES Act fraud schemes targeting the unemployment insurance programs of state workforce agencies and will work closely with United States Attorney’s’ offices to prosecute those individuals who have fraudulently diverted these funds from those struggling with unemployment.
The Department encourages the public to report suspected fraud schemes related to COVID-19 to the National Center for Disaster Fraud (NCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form
Two Separate and Unrelated Indictments Charge Individuals in Connection with Business Email Compromise Fraud SchemesRead the Press Release
BIRMINGHAM, Ala. – Prim F. Escalona, the United States Attorney for the Northern District of Alabama, and Johnnie Sharp, Jr. the Special Agent in Charge of the Birmingham Field Office of the Federal Bureau of Investigation (“FBI”), announced two indictments against four defendants charged for their roles in separate and unrelated business email compromise fraud schemes.
On November 17, 2020 a federal grand jury indicted Oyedele Aro Benjamin, 26, of Chicago, Illinois, and Adetona Lala, 37, of Country Club Hills, Illinois, with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, aggravated identity theft, and conspiracy to commit money laundering. The indictment alleges that from September 2018 to May 2019, Benjamin and Lala were part of an international criminal conspiracy that targeted companies throughout the United States of America with business email compromise schemes. Members of the conspiracy tricked and deceived victims into sending payments for legitimate business services to bank accounts that were controlled by the defendants and used for money laundering. The defendants executed this fraudulent scheme by, among other things, using fake names, false identity documents, and shell companies to open bank accounts used to receive fraud proceeds and then to launder those funds. The charges of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison. The charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering each carry a maximum penalty of 20 years in prison. Benjamin and Lala are also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the Northern District of Illinois and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorneys Edward J. Canter and Catherine L. Crosby are prosecuting the case.
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On November 17, 2020, a federal grand jury indicted Ohimai Asikhia, 36, of Glassboro, New Jersey, and Paulinus Ebhodaghe, 39, of Clementon, New Jersey with conspiracy to commit money laundering. The indictment alleges that from June 2018 through November 2018, Asikhia and Ebhodaghe conspired to launder the proceeds of various fraud schemes, including business email compromise fraud schemes and online romance scams. If convicted Asikhia and Ebhodage face a maximum penalty 20 years in prison and a fine of $500,000 or both for conspiracy to commit money laundering.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the District of New Jersey and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorney Edward J. Canter is prosecuting the case.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Separate and Unrelated Indictments Charge Individuals in Connection with Business Email Compromise Fraud SchemesRead the Press Release
BIRMINGHAM, Ala. – Prim F. Escalona, the United States Attorney for the Northern District of Alabama, and Johnnie Sharp, Jr. the Special Agent in Charge of the Birmingham Field Office of the Federal Bureau of Investigation (“FBI”), announced two indictments against four defendants charged for their roles in separate and unrelated business email compromise fraud schemes.
On November 17, 2020 a federal grand jury indicted Oyedele Aro Benjamin, 26, of Chicago, Illinois, and Adetona Lala, 37, of Country Club Hills, Illinois, with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, aggravated identity theft, and conspiracy to commit money laundering. The indictment alleges that from September 2018 to May 2019, Benjamin and Lala were part of an international criminal conspiracy that targeted companies throughout the United States of America with business email compromise schemes. Members of the conspiracy tricked and deceived victims into sending payments for legitimate business services to bank accounts that were controlled by the defendants and used for money laundering. The defendants executed this fraudulent scheme by, among other things, using fake names, false identity documents, and shell companies to open bank accounts used to receive fraud proceeds and then to launder those funds. The charges of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison. The charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering each carry a maximum penalty of 20 years in prison. Benjamin and Lala are also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the Northern District of Illinois and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorneys Edward J. Canter and Catherine L. Crosby are prosecuting the case.
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On November 17, 2020, a federal grand jury indicted Ohimai Asikhia, 36, of Glassboro, New Jersey, and Paulinus Ebhodaghe, 39, of Clementon, New Jersey with conspiracy to commit money laundering. The indictment alleges that from June 2018 through November 2018, Asikhia and Ebhodaghe conspired to launder the proceeds of various fraud schemes, including business email compromise fraud schemes and online romance scams. If convicted Asikhia and Ebhodage face a maximum penalty 20 years in prison and a fine of $500,000 or both for conspiracy to commit money laundering.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the District of New Jersey and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorney Edward J. Canter is prosecuting the case.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Tulsa Woman Sentenced for Destruction of Federal PropertyRead the Press Release
A Tulsa woman was sentenced today for destroying post office boxes at a U.S. Post Office station located in south Tulsa, announced U.S. Attorney Trent Shores.
Hillary Ginn was sentenced to 5 years probation this morning before U.S. Magistrate Judge Jodi F. Jayne. Ginn will also be responsible for paying $281.20 in restitution to the U.S. Postal Service.
“As Americans, we rely on the U.S. postal system for so many things. From personal finance to personal correspondence, we regard the mail as sacred,” said U.S. Attorney Trent Shores. “It is our job as prosecutors and law enforcement to stop criminals like Hillary Ginn who would raid mailboxes and destroy receptacles all for her personal gain.”
On Aug. 26, 2020, Ginn pleaded guilty to destruction of federal property. Ginn admitted that from Aug. 18, 2019 through Sept. 22, 2019, she damaged letter boxes, mailboxes, and other receptacles located in the Tulsa, Oklahoma, Sheridan Station.
The Tulsa Police Department and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Kevin Leitch prosecuted the case.
Tulsa Man Pleads Guilty to Sexually Abusing a Child in Indian CountryRead the Press Release
A Tulsa man who sexually abused a child for more than two years pleaded guilty Wednesday in federal court, announced U.S. Attorney Trent Shores.
Joshua Dale Armstrong, 33, pleaded guilty to aggravated sexual abuse of a minor under 12 years old in Indian Country and abusive sexual contact of a minor under 12 years old in Indian Country. At the plea hearing, Armstrong admitted that from January 2018 to April 2020, he knowingly engaged in sex acts with a child, including rape.
“There are forces for good in this world who are ever vigilant against the threat of child sex predators. I’m so thankful the FBI and Tulsa Police Department teamed up to investigate Joshua Dale Armstrong. The criminally perverse acts that Armstrong inflicted upon a helpless child were sickening,” said U.S. Attorney Trent Shores. “Make no mistake, we will bring the full weight of federal law against every pedophile who harms Oklahoma’s children in our jurisdiction.”
At the time of sentencing, set for Feb. 25, 2021, Armstrong faces a minimum sentence of 30 years imprisonment and a maximum sentence of life imprisonment. He also faces a maximum fine of $250,000.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Edward Snow, Christopher Nassar and Devon Lash are prosecuting the case. AUSA Lash is a prosecutor from the Eastern District of New York. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Three Felons Appear in Federal Court for Gun and Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that three felons appeared before United States District Judge Robert C. Chambers for gun and drug crimes.
Justin J. Monroe, 34, of Beckley, was sentenced to 30 months in federal prison for being a felon in possession of a firearm. Monroe previously admitted that on September 20, 2019, a vehicle in which he was a passenger was stopped by the West Virginia State Police for speeding along Interstate 64 near Hurricane. Troopers later searched the vehicle, which was being driven by an inebriated driver, and recovered a Glock model 23 .40 caliber pistol. Monroe claimed ownership of the firearm on the scene, and later admitted to law enforcement that he knew he was a convicted felon which barred him from possessing the firearm, but he chose to keep it for protection. Monroe has two prior felony convictions in Raleigh County Circuit Court. The West Virginia State Police conducted the investigation. Assistant United States Attorney Negar M. Kordestani handled the prosecution.
Desean Briscoe, 30, of Huntington, entered a guilty plea to an indictment charging him with possession with the intent to distribute heroin and being a felon in possession of a firearm. Briscoe admitted that on January 23, 2020, officers executed a search warrant at his residence at 850 Bronson Court in Huntington, finding two firearms. After he was arrested and taken to the Huntington Police Department, Briscoe told officers he had heroin hidden on his person. Officers retrieved approximately 16 grams of heroin from Briscoe. Briscoe was prohibited from possessing firearms due to a 2015 felony conviction in Wayne County Circuit Court for attempt to deliver a controlled substance. Briscoe faces up to thirty years in federal prison when he is sentenced on February 16, 2021. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
Joshua Ellis Paholsky, 47, of Ironton, Ohio, pled guilty to one count of being a felon in possession of a firearm. On March 11, 2019, FBI task force officers and deputies with the Cabell County Sheriff’s Office were coordinating drug interdiction on vehicles leaving a residence near 17th Street in Huntington. A deputy pulled over one such vehicle driven by Paholsky, and a canine unit responded to the scene soon thereafter. The drug canine alerted on the vehicle, and a search of the vehicle revealed approximately 1 gram of heroin and a loaded .380 caliber Smith and Wesson pistol. In a Mirandized interview, Paholsky admitted to possessing the firearm. Paholsky has a prior felony conviction for first degree robbery out of Cabell County. Paholsky faces a maximum of 10 years in prison when sentenced on February 16, 2021. The FBI Southern Transnational Organized Crime (TOC) West Task Force and the Cabell County Sheriff’s Office conducted the investigation. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:20-cr-00047 (Monroe) 3:20-cr-00040 (Briscoe) and 3:19-cr-00199 (Paholsky).
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Texas Physician Sentenced for Multi-Million Medicare Fraud SchemeRead the Press Release
A Texas physician was sentenced to five years in prison today for her role in a multi-million Medicare fraud scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Yolanda Hamilton, M.D., 57, of Harris County, Texas, the physician-owner and operator of HMS Health and Wellness Center, PLLC, was sentenced by U.S. District Judge Keith P. Ellison of the Southern District of Texas. Judge Ellison also ordered the defendant to pay $9.5 million in restitution.
Hamilton was convicted by a federal jury of one count of conspiracy to commit health care fraud, one count of conspiracy to solicit and receive health care kickbacks, and two counts of false statements relating to health care matters in October 2019. According to the evidence presented at trial, from January 2012 to August 2016, Hamilton conspired with others to defraud Medicare by signing false and fraudulent home healthcare paperwork that was used to submit fraudulent claims to Medicare.
Hamilton and her co-conspirators made it appear that the patients qualified and received home healthcare services, when they often did not. In fact, members of the conspiracy paid the patients to receive the home healthcare services, which were often medically unnecessary, not provided, or both. The evidence also showed that Hamilton required home healthcare agencies to pay an illegal kickback, which Hamilton disguised as a “co-pay,” in exchange for Hamilton certifying and recertifying patients for home healthcare services.
Hamilton typically would not release the home healthcare paperwork until the home healthcare companies or their marketers paid her the kickback, the evidence showed. The scheme resulted in approximately millions in false and fraudulent claims for home-health services to Medicare and in Hamilton receiving over $300,000 in kickbacks.
All defendants are presumed innocent until convicted beyond a reasonable doubt in a court of law.
To date, several co-conspirators including marketers, patient recruiters along with doctors, and nurses who purchased plans of care and other signed medical documents from Hamilton have been charged, found guilty, or pleaded guilty to conspiracy to commit health care fraud and/or paying or receiving kickbacks.
The FBI, HHS-OIG, and MFCU investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Trial Attorneys Catherine Wagner, Thomas Tynan, and Carlos Lopez of the Fraud Section prosecuted the case. Trial Attorney Scott Armstrong indicted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, 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.
Staten Island Man Sentenced to 96 Months in Prison for Robbery, Identity Theft, and Defrauding Numerous Women and BusinessesRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 96 months in prison for robbing a New Jersey business owner in February 2019, defrauding eight New Jersey businesses from July 2016 through January 2019, and defrauding and stealing the identities of three women, U.S. Attorney Craig Carpenito announced.
Raymond Scura, 31, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with wire fraud affecting a financial institution, aggravated identity theft, and Hobbs Act robbery. Judge Cecchi imposed the sentence by videoconference today.
According to the documents filed in this case and statements made in court:
Scura used bad checks and stolen credit cards to obtain luxurious goods and services, such as a country club membership, limousine services, luxury hotel expenses, exotic car rentals, and a Rolex watch, in order to appear wealthy and obtain the confidence of his victims, who were usually women. Once he convinced his victims of his purported wealth, he would then steal their identities and credit cards to make additional purchases. As a result of his fraud and aggravated identity theft offenses, Scura caused losses to individuals and businesses in excess of $250,000
In February 2019, Scura was a customer of an internet-based business owned and operated by a New Jersey man. To pay for the services of the business, Scura wrote at least one fraudulent check to the victim. When the victim insisted on cash payment, Scura drove with the business owner to a bank, where Scura brandished a gun, threatened to kill the victim, and demanded that the victim deposit a fraudulent check for $10,000 into the victim’s bank account and then withdraw $10,000. The victim did as Scura directed and then gave Scura the $10,000.
In addition to the prison term, Judge Cecchi sentenced Scura to three years of supervised release and ordered him to pay restitution to the numerous victims totaling $166,505.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to today’s sentencing. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Christopher Amore of the Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark.