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6 November 2020
Drug Dealer Who Sold “Ghost Guns,” Silencers, and a Machinegun Sentenced to Thirty Years in Federal PrisonRead the Press Release
A man who sold cocaine and firearms, including a machinegun with an integrated silencer, to another drug dealer was sentenced today to serve thirty years in federal prison.
Raven Damien Meader Burkhow, age 26, from Cedar Rapids, Iowa, received the prison term after a January 17, 2020 guilty plea to conspiracy to distribute a controlled substance, two counts of use and possession of a firearm during and in furtherance of a drug trafficking crime, possession of a sawed-off shotgun in furtherance of a drug trafficking crime, possession of machineguns, and possession of an unregistered pipe bomb.
Evidence at sentencing and prior hearings showed that Burkhow sold cocaine on five occasions to a confidential informant, who Burkhow knew to be a drug dealer. After one such transaction, Burkhow offered to sell the informant a pipe bomb. Burkhow also sold a gun without a serial number, otherwise known as a “ghost gun,” with a silencer and a machinegun with an integrated silencer to the informant. Burkhow sold the cocaine and guns from the doorway of his apartment building located in downtown Cedar Rapids. Law enforcement officers searched Burkhow’s apartment and seized twenty firearms, including machineguns, a sawed-off shotgun, and a pipe bomb. They also found cocaine, thirteen silencers, and thousands of rounds of ammunition in his apartment. Burkhow was also ordered to forfeit $177,720 in cash, six gold bars valued at approximately $5,522.50, firearms, and ammunition, which were seized in connection with the case.
Burkhow was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Burkhow was sentenced to 360 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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 /media/1122011/dl?inline.
Burkhow is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Kyndra Lundquist and Richard Murphy and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-59.
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Court of Appeals upholds conviction of local man who tried to join ISISRead the Press Release
DAYTON – U.S. Attorney David M. DeVillers announced the United States Sixth Circuit Court of Appeals ruled yesterday in favor of the government, upholding the conviction of Laith Waleed Alebbini. The 29-year-old Jordan citizen was convicted of conspiring and attempting to join ISIS following a bench trial in Dayton in November and December 2018 before U.S. District Judge Walter H. Rice.
Court documents and trial testimony detail that on April 26, 2017, FBI agents arrested Alebbini at the Cincinnati-Northern Kentucky International Airport, as he was attempting to travel to Turkey and then Syria to join ISIS – a designated foreign terrorist organization. Alebbini is a U.S. legal permanent resident who was living in Dayton.
About one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS. Alebbini responded in three separate back-to-back text messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid.”
In another, previous conversation with a friend, Alebbini said, “I, cousin, want to go be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.
Alebbini was sentenced in June 2019 to 180 months in prison and 25 years of supervised release for attempting to and conspiring to join the Islamic State of Iraq and al-Sham (ISIS). He will likely face deportation following service of his prison term.
In his appeal, Alebbini challenged the sufficiency of the evidence for both of his convictions. He argued the proof was insufficient to convict him of conspiring to provide material support to ISIS because it did not demonstrate that he entered into any kind of agreement with his cousin, Raid, his alleged co-conspirator, who departed Dayton prior to Alebbini’s attempt but was apprehended by Jordanian authorities upon arrival there. He also argued that the evidence was insufficient to convict him of attempting to provide material support to ISIS because, in his view, it did not demonstrate that he took a substantial step towards the crime, or that he intended to work under the direction and control of ISIS.
The Court of Appeals ruled against Alebbini’s arguments, stating in a precedent-setting published opinion that the government proved the elements of the crimes beyond a reasonable doubt.
Specifically, the Court of Appeals stated the government sufficiently proved conspiracy elements through consistent information and conversations detailing Alebbini’s plans with a co-conspirator to join and fight for ISIS.
Likewise, the government showed sufficient evidence that Alebbini took a substantial step towards the crime when, after research, preparation, and conveying to others his intent to join ISIS and work under its direction and control, Alebbini embarked on his journey to ISIS by departing Dayton, traveling to the Cincinnati/Kentucky International airport, sending farewell messages to family, checking in for his flight, and walking toward the airport security checkpoint after obtaining his airline ticket, all of which corroborated Alebbini’s intent
First Assistant United States Attorney Vipal J. Patel argued the appeal on behalf of the United States.
The FBI’s Joint Terrorism Task Force investigated the criminal case against Alebbini. First Assistant Vipal J. Patel and Assistant U.S. Attorney and Deputy Criminal Chief Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted the criminal case.
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Convicted Felon Arrested on Federal Child Pornography ChargeRead the Press Release
BOSTON – An Auburn man who is currently on supervised release for a child pornography conviction was arrested today for a child pornography offense.
Christopher Rondeau, 35, was charged by criminal complaint with one count of possession of child pornography. Following an initial appearance today before U.S. Magistrate Judge David H. Hennessy, Rondeau was detained pending a detention hearing scheduled for Nov. 13, 2020.
According to the charging documents, law enforcement executed a search warrant at Rondeau’s residence and found a cell phone containing images and videos of child pornography hidden under a dresser in his bedroom. In 2016, Rondeau was convicted of receipt of child pornography and sentenced to 68 months in prison and seven years of supervised release. He was released from federal custody in August 2019 and is registered as a Level II sex offender in the Commonwealth of Massachusetts.
Due to Rondeau’s prior conviction, the charging statute provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, a minimum of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Auburn Police Chief Andrew J. Sluckis, Jr; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charity Founders Sentenced to Prison for Using Non-Profit to Steal from Donors and Cheat on Their TaxesRead the Press Release
Assistant U.S. Attorney Rebecca S. Kanter (619) 546-7304
NEWS RELEASE SUMMARY – November 6, 2020
SAN DIEGO – A Bonita husband and wife were sentenced in federal court today to 9 months and 15 months, respectively, in prison for using their charity to obtain donations from various companies – supposedly to give to the needy - and then selling those donations for a profit and failing to pay taxes on the profits.
According to plea agreements, Geraldine and Clayton Hill admitted they used lies and false promises to induce prominent companies to donate valuable goods to the Hills’ 501(c)(3) tax-exempt non-profit organization, known as On Your Feet, Inc., also known as Family Resource Center. Instead of using all the clothing and other donations to help the down-on-their luck get back on their feet, as their charity’s name suggested, or to provide resources for families, the Hills brazenly sold many donated goods for cash to be resold at discount outlets, and pocketed the proceeds. By preying on the generosity of others, they managed to get valuable goods at no cost and tax-free, which they resold for their personal benefit. What is more, the Hills used the tax-exempt charity as their personal bank account and evaded their own tax obligations, cheating the IRS by failing to pay over $50,000 in taxes on over a million dollars in ill-gotten gains from their fraud.
According to court documents, On Your Feet, Inc. claimed to “provid[e] assistance to low-income families and individuals in need to better their living conditions and quality of life.” Beginning at least as early as March 2009, however, the Hills conspired to fraudulently obtain charitable donations of clothing and other items from multiple companies by falsely promising and certifying that they would not to sell the merchandise for profit. The Hills violated those promises, knowingly reselling donated merchandise and using the proceeds from selling donated items to financially support themselves, their family members and other associates.
The Hills tricked multiple companies, including Forever 21, Feed the Children, Brooks Sports and Goods360, into donating millions of dollars of goods to their so-called charity. For example, in soliciting donations from Forever 21, the Hills falsely claimed in their marketing materials that “[t]he merchandise is never sold by On Your Feet Incorporated and any merchandise impossible to sell is disposed of.” In an email on May 20, 2015, to Forever 21, Geraldine Hill explained that the “routine for processing donated items” included “cutting [the] inside label in half” and “defacing [the] inside label with permanent marker,” and falsely insisted that “we’ve never had a problem with any donations we have received that companies have been so kind to donate.” In fact, Geraldine Hill knew at the time she sent that email to Forever 21 that her statement was a lie, because at least three years earlier, she had learned that Disney no longer wanted its donations to go to On Your Feet because the donated goods were appearing at local flea markets for sale.
In reliance on Ms. Hill’s false promises that the goods would not be re-sold, in June 2015, Forever 21 donated to On Your Feet approximately 161 pallets of clothing, which Forever 21 estimated had a retail value of $5.6 million. Immediately upon receiving the pallets from Forever 21, the Hills sold the donated goods to an operator of for-profit discount retailers. In September 2016, the Hills solicited additional donations from Forever 21 by promising to use them for a “Christmas Giveaway,” and in response, in October Forever 21 donated another 16 pallets of clothing with a retail value of $314,371. Once again, immediately upon receiving the pallets from Forever 21, the Hills sold donated goods to the same for-profit discount retailer. Based on the Hills’ series of false representations, Feed the Children and Forever 21 – just two of the Hills’ multiple victims – donated over $16 million in goods between 2010 and 2017.
With their repeated lies, between 2011 and 2016, the Hills personally received proceeds from the fraud totaling over $1.3 million. They spent the money on personal expenses including luxury retail purchases, vacations, entertainment, vehicles (including a $124,000 Mercedes), rent on a seven-bedroom, seven-bathroom home, and donations to their church. In their plea agreements, they admitted that they paid no taxes on their illegal gains.
The Hills further exploited their non-profit organization to cheat in other ways. For example, they falsified pay stubs claiming that defendant Clayton Hill earned a salary of over $100,000 from On Your Feet (even though the organization had never issued paystubs or W2s to Hill, and Hill was not claiming income in any tax filing). Armed with the phony pay stubs to demonstrate their income, the Hills applied to rent a seven-bedroom, seven-bathroom home that cost $6,000 per month.
In order to conceal their true income from the IRS and obstruct the IRS’s ability to monitor the charity’s tax-exempt status, the Hills filed false charitable tax returns. The charity’s tax returns falsely claimed that On Your Feet received less than $25,000 in gross receipts in tax year 2009, and less than $50,000 in tax years 2011-2015. In reality, the organization had received millions of dollars in valuable in-kind donations, and hundreds of thousands of proceeds from the unauthorized sale of those donations. By hiding the non-profit’s income, the Hills were able to hide their own income. As a result of the Hills’ fraudulent concealment of their income, they avoided paying $50,933 in tax years 2013 and 2014.
In addition to their prison sentences, the Hills were ordered to pay $50,933 in restitution to the IRS; a further restitution hearing related to the donor victims is scheduled for December 11, 2020.
“Geraldine and Clayton Hill abused the generosity of charitable donors and used their non-profit charity organization as their personal bank account,” said U.S. Attorney Robert Brewer “Although all tax evasion is serious, the conduct by the Hills is particularly offensive because they have undermined the faith of donors in charitable giving.” Brewer commended Assistant U.S. Attorney Rebecca Kanter and Trial Attorney Valerie Preiss of the Justice Department’s Tax Division, as well as agents from the IRS and FBI for their excellent work on this case.
“The Hills’ fraudulent scheme undermined legitimate charities with true intent to benefit low income families in order to satisfy their personal greed and an indulgent lifestyle,” said Suzanne Turner, Special Agent in Charge of FBI San Diego. “The FBI is hopeful that this sentence will send a message to anyone who would try to take advantage of the generosity of donors intending to help those in need.”
“Geraldine and Clayton Hill lied to unsuspecting donors about the direction of charitable contributions and engaged in tax fraud to cover their trail,” said Jim Lee, Chief of IRS Criminal Investigation. “Unfortunately, the donors were well-meaning organizations interested in helping the needy and this fraud prevented real people in need from receiving assistance. IRS Criminal Investigation works tirelessly to ensure that criminals like the Hills are brought to justice. In cases like these, not only do the needy of our communities suffer, but also taxpayers and the United States government.”
This case was prosecuted by Assistant U.S. Attorney Rebecca Kanter and Special Assistant U.S. Attorney Valerie Preiss.
DEFENDANTS Case Number 20CR0783-DMS
Geraldine Hill Age: 60 Bonita, CA
Clayton Hill Age: 59 Bonita, CA
SUMMARY OF CHARGES
Conspiracy to Commit Mail Fraud – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Tax Evasion – Title 26, U.S.C., Section 7201
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Internal Revenue Service Criminal Investigations
Federal Bureau of Investigation
California man sentenced to two years in prison for sexual assault on an aircraftRead the Press Release
Seattle – A 43-year-old Van Nuys, California, man was sentenced today in U.S. District Court in Seattle to two years in prison for two federal felonies for his sexual assault of a young woman on a flight from London to Seattle, announced U.S. Attorney Brian T. Moran. BABAK REZAPOUR was convicted on January 22, 2020, of abusive sexual contact in a special aircraft jurisdiction and abusive sexual contact with an incapacitated victim. The jury deliberated about two and a half hours following a five-day jury trial. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said the crime was “an evil act…. An awful, horrible, nightmare situation.”
“This defendant not only assaulted this young woman on the plane, his history shows escalating assaults on women even before this incident,” said U.S. Attorney Brian Moran. “I commend this brave victim who has endured the pain of describing this crime to first responders, investigators, and ultimately to the jury.”
According to records filed in the case and testimony at trial, REZAPOUR sexually assaulted the 20-year-old victim while she was incapacitated from medication and alcohol on a Norwegian Air flight from London to Seattle on January 10, 2018. The victim had taken prescribed anti-anxiety and anti-nausea medication and drank a glass of wine. The victim then accepted a second glass of wine purchased for her by REZAPOUR. After drinking the second glass, the victim became unusually sleepy. She awoke to find REZAPOUR sexually assaulting her. REZAPOUR used his jacket to shield the activity from other passengers. The victim fled to the back of the plane and reported the assault to flight attendants.
At trial, witnesses described seeing REZAPOUR move into the seat next to the victim, contradicting his statements to law enforcement that he had stayed in his aisle seat with an open seat between them. In multiple statements to different investigators following the incident, REZAPOUR changed his description of what had occurred on the plane. In addition to consistent statements from the victim and witnesses, prosecutors used DNA evidence to prove REZAPOUR’s guilt beyond a reasonable doubt. An FBI DNA expert described how she discovered REZAPOUR’s DNA inside the victim’s underwear.
In sentencing documents, prosecutors describe how REZAPOUR’s criminal history shows a pattern of sexual assault. REZAPOUR was charged in 2012 in a prostitution sting in California. In 2017, just six months before the airplane assault, REZAPOUR was escorted out and banned from a North Carolina resort hotel after molesting a hotel worker who was cleaning the men’s locker room. “These were not isolated incidents. They can credibly be interpreted as a continuing course of conduct reflecting an ongoing urge to sexually assault strangers in increasingly serious attacks,” prosecutors wrote in their sentencing memo.
Prosecutors asked for an above guidelines sentence, noting that sex assault crimes on aircraft are on the rise and need to be deterred. According to the FBI, in 2014, 38 cases of in-flight sexual assaults were reported. In 2017, that number increased to 63 reported cases. In 2019, these assaults increased to 119 reported cases.
At the sentencing hearing the victim spoke to REZAPOUR saying “you saw me as an object and took from me whatever you wanted… You made me distrust every man in my life…. You made me feel less than what I was.” After she spoke Judge Lasnik told her she should be proud of how strong she has been in working to recover from this sexual assault and hold REZAPOUR accountable.
REZAPOUR has been in custody since the jury verdict in January 2020. He told the court he was begging for forgiveness, “I have a problem and I need help.”
REZAPOUR is required to register as a sex offender following his prison term.
The case was investigated by the Port of Seattle Police and the FBI. The case was prosecuted by Assistant United States Attorneys Marie Dalton and Grady Leupold.
Calhan School Teacher Sentenced to Nearly 4 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Patrick McMahon, age 30, a resident of Colorado Springs, Colorado who was a former school teacher in Calhan, Colorado, was sentenced to serve 46 months in federal prison (nearly 4 years) followed by 5 years supervised release for possession of child pornography. He was also ordered to pay $30,000 in restitution to certain victims of his crime. McMahon appeared at the hearing remotely, free on bond. He was ordered to voluntarily surrender to a Bureau of Prisons facility. Homeland Security Investigations (HSI) joined in this announcement.
According to the stipulated facts contained in McMahon’s plea agreement, defendant Patrick McMahon was brought to the attention of law enforcement when his ex-wife asked the Colorado Springs Police Department (CSPD) to analyze his laptop. She was in possession of the computer and was concerned because he had previously used it to show her child pornography. Colorado’s Internet Crimes Against Children (ICAC) Task Force obtained a search warrant leading to a computer forensic examination which revealed that the laptop contained child pornography or child erotica. Additionally, there was evidence that a peer-to-peer file sharing program had been installed on the computer and the program contained terms indicative of child pornography.
Based on the discovery of child pornography on the laptop, state search warrants were obtained for the defendant's home, school, vehicle, and person. Those search warrants were executed on January 7, 2019. McMahon was searched at his place of employment, a Calhan high school where he was a teacher. In addition to the child pornography discovered on the defendant’s laptop, the computer forensic examination revealed child pornography on additional devices belonging to the defendant: a cell phone recovered from the defendant's person at the school and a custom desktop computer with two hard drives as well as an external hard drive recovered from the defendant's home.
Copies of all of the files depicting child pornography were provided to the National Center for Missing and Exploited Children (NCMEC). NCMEC reported that 602 of the image files and two of the video files possessed by McMahon depict minor victims previously identified by law enforcement.
“Stopping the use of child pornography is a top priority for this office,” said U.S. Attorney Jason Dunn. “Thanks to the outstanding work of our HSI and ICAC partners, Mr. McMahon will go from spending his days in a high school classroom to spending them in a federal prison cell.”
“The victimization of children is a heartbreaking violation of trust and HSI worked relentlessly with our partners to bring McMahon to justice. Because he was a teacher we hope this sentence ensures he can never work with children again,” said Steven Cagen, special agent in charge of Homeland Security Investigations, Denver. “HSI, along with local, state and federal partners, worked tirelessly to investigate and prosecute McMahon to the fullest extent possible.”
This case was investigated by HSI and the Colorado ICAC Task Force. The case was prosecuted by Assistant United States Attorney Alecia L. Riewerts.
Patrick McMahon was charged by Indictment on April 18, 2019, and pleaded guilty to the charge on January 16, 2020. The sentence was pronounced by U.S. District Court Judge R. Brooke Jackson on November 2, 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-185.
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.
Bergen County Man Sentenced to 14 Years in Prison for Role in $7 Million Fraud Scheme and Cross-Country Drug Distribution SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 168 months in prison for using bogus litigation support companies to obtain millions from two law firms where his wife was a partner and for his role in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Melvin Feliz, 54, of Englewood Cliffs, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. He also previously pleaded guilty to Count One of an indictment charging him and two co-defendants with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in these cases and statements made in court:
Feliz’s wife, Keila Ravelo, 55, also of Englewood Cliffs, worked as a partner at Law Firm 1 from July 1, 2005, through October 2010. She then joined Law Firm 2 as a partner and worked there from October 2010 through November 2014. Feliz admitted that during that time, Feliz and Ravelo formed two limited liability companies, Vendor 1 and Vendor 2, that purported to provide litigation support for both firms, but in fact provided no actual services.
Feliz admitted that from 2008 through July 2014, he and Ravelo controlled the Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1, Law Firm 2 and a client of both firms for work that was never performed. Ravelo, in her capacity as a partner at the law firms, approved payments to Vendor 1 and Vendor 2 that Ravelo and Feliz later used for personal expenses.
Over the course of the conspiracy, the law firms paid Vendor 1 and Vendor 2 approximately $7.8 million. Feliz admitted that he failed to report the income on his tax returns, including $2.36 million in illicit profits from 2012 alone.
Separately, Feliz and co-defendants Irving Olivero-Pena, 48, of Edgewater, New Jersey, and Robert Crawford, 45, of Long Island City, New York, each previously pleaded guilty to their roles in a cocaine distribution scheme. They admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
In addition to the prison term, Judge McNulty sentenced Feliz to five years of supervised release and ordered forfeiture of $7.9 million. Restitution will be determined at a later date. Ravelo was sentenced in October 2018 to five years in prison. Crawford was sentenced in July 2015 to 10 years in prison. Olivero-Pena is scheduled to be sentenced Nov. 9, 2020.
U.S. Attorney Carpenito credited special agents from the U.S. Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Susan A. Gibson; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Amsterdam Man Charged with Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas Love, Jr., age 31, of Amsterdam, New York, was ordered detained yesterday on a charge of distributing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
On October 27, 2020, Love was charged by criminal complaint with distributing child pornography. Yesterday, United States Magistrate Judge Christian F. Hummel conducted a detention hearing and ordered Love detained pending trial.
The complaint alleges that, on or about July, 11, 2020, Love distributed images depicting the sexual exploitation of children via an online social media platform. Love further admitted to distributing child pornography on other social media platforms and over email, as well.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty. If convicted, Love faces at least 5 and up to 20 years in prison, a mandatory term of supervised release of at least 5 years and up to life, and a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Love would also have to register as a sex offender.
This case is being investigated by the FBI and its Child Exploitation Task Force, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.
Anyone who wants to provide law enforcement with information about the defendant should contact the FBI Albany Field Office at (518) 465-7551.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
5 November 2020
Wythe County Man Pleads Guilty to Drug and Firearms ChargesRead the Press Release
ABINGDON, Va. – Joseph Miles, a Wythe County, Virginia man who conspired to distribute oxycodone and illegally possessed a firearm, pleaded guilty today in U.S. District Court in Abingdon to a pair of federal charges, Acting United States Attorney Daniel P. Bubar announced.
Miles, 34, pleaded guilty to one count of conspiracy to distribute oxycodone and one count of illegal possession of a firearm while being an unlawful user of a controlled substance. At sentencing, Miles faces up to twenty years in prison and/or a fine of up to $1 million.
According to court documents, from July 2016 through February 2019, Miles, and others, conspired to distribute oxycodone for himself and his father by having Dr. David Lelio write prescriptions in his name that had no legitimate medical purpose and were outside the scope of professional practice, with an agreement that some of the oxycodone pills would be shared with Dr. Lelio’s wife.
Evidence also showed that on February 15, 2019, Miles, while being an unlawful user of an addictive controlled substance, including oxycodone, possessed a firearm.
The investigation of the case was conducted by the Wythe County Sheriff’s Office and Virginia State Police. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
Wise Psychiatrist Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
ABINGDON, Va. – Uzma Ehtesham, a Wise, Virginia psychiatrist who defrauded Virginia Medicaid and Medicare by fraudulently billing these programs for services, pleaded guilty today to federal health care fraud. Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring announced today.
Ehtesham, 52, waived her right to be indicted and pleaded guilty today to a one-count Information charging her with health care fraud.
“Through Ehtesham’s fraud scheme, she stole funds from Virginia Medicaid and Medicare, which provide an essential safety net for our most vulnerable residents. When someone defrauds that system, the Department of Justice, and our partners with the Virginia Attorney General’s Office will hold them accountable,” United States Attorney Bubar said today. “I am thankful to the many local, state, and federal partners who assisted in this complex investigation.”
“Health care fraud not only undermines an important system that provides critical medical services to tens of thousands of Virginias but it also wastes hundreds of thousands of taxpayer dollars,” said Virginia Attorney General Mark Herring. “I want to thank my Medicaid Fraud Control Unit for their continued hard work to hold health care providers accountable when they defraud the system and we will continue to work with our local, state, and federal partners to pursue these cases.”
According to court documents, from 2010 to 2016, Ehtesham devised a scheme to defraud Virginia Medicaid and Medicare by billing for individual office visits when she often saw patients in groups of two to four patients per visit.
In addition, Ehtesham billed for extensive, time consuming, and costly office visits when she was conducting brief office visits consisting of five to six minutes and billed for services not supported by required documentation.
During the time of the investigation, Ehtesham was seeing in excess of 50 patients per day. Often, prescriptions were written in advance of a scheduled visit by the office staff, placed in patient files, and signed by Ehtesham during the brief patient visit. At times, Ehtesham did not employ any medically certified staff to compile patient’s vital statistics at each visit. Instead, vital statistics were copied from previous patient visits to each new visit information sheet at Ehtesham’s direction.
As part of the scheme to defraud, Ehtesham received $500,000 in fraudulently obtained processed from Virginia Medicare and Medicaid.
As part of the plea agreement, Ehtesham is required to pay a total of $1,000,000, consisting of restitution, fines, and forfeiture.
A sentencing hearing has been scheduled for January 28, 2021, at 2:30 p.m.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Norton Police Department, Southwest Virginia Drug Task Force, and Virginia State Police. The following agencies assisted with the execution of a search warrant during the investigation: Big Stone Gap Police Department, Virginia Alcohol and Beverage Control Special Investigations Unit, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, and Wise Police Department. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threat Unit, is prosecuting the case for the United States. Virginia Assistant Attorney Generals and Special Assistant United States Attorneys Janine Myatt and Joe Hall also assisted with the investigation.
Wheeling man sentenced for distributing methRead the Press Release
WHEELING, WEST VIRGINIA – Deante Creel, of Wheeling, West Virginia, was sentenced today to 121 months of incarceration for drug distribution in the Wheeling area, U.S. Attorney Bill Powell announced.
Creel, also known as “G,” pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in June 2020. Creel, age 33, admitted to having methamphetamine in Ohio County in May 2019.
Creel was also ordered for forfeit $12,467 in cash, three firearms, and ammunition.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
United States Files A Civil Action to Forfeit Cryptocurrency Valued at over One Billion U.S. DollarsRead the Press Release
SAN FRANCISCO - The United States filed a civil complaint today to forfeit thousands of Bitcoins, valued at over $1 billion dollars, seized by law enforcement on November 3, 2020, announced United States Attorney David L. Anderson of the Northern District of California and Special Agent in Charge of the Washington DC Field Office, Internal Revenue Service Criminal Investigation (IRS-CI) Kelly R. Jackson. The seizure represents the largest seizure of cryptocurrency in the history of the Department of Justice.
“Silk Road was the most notorious online criminal marketplace of its day,” said U.S. Attorney Anderson. “The successful prosecution of Silk Road’s founder in 2015 left open a billion-dollar question. Where did the money go? Today’s forfeiture complaint answers this open question at least in part. $1 billion of these criminal proceeds are now in the United States’ possession.”
“Criminal proceeds should not remain in the hands of the thieves. Through CI’s expertise in following the money, we were able to track down the illicit funds,” said IRS-CI Special Agent in Charge Kelly R. Jackson. “The Washington DC Cyber Crimes Unit is uniquely specialized in tracing virtual currency transactions and we will continue to hone our skills to combat illegal activity.”
According to the allegations of the civil forfeiture complaint, from 2011 until October 2013 when it was seized by law enforcement, Silk Road was the most sophisticated and extensive criminal marketplace on the Internet. It served a sprawling black market bazaar where unlawful goods and services were bought and sold regularly by the site’s users. The complaint alleges that while in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs as well as other unlawful goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions. At the time it was taken down in 2013, Silk Road had nearly 13,000 listings for controlled substances and many more listings offering illegal services, such as computer hacking and murder for hire, which generated sales revenue totaling over 9.5 million Bitcoins and commissions from these sales totaling over 600,000 Bitcoins. The complaint further alleges that Silk Road used a so-called “tumbler” to process Bitcoin transactions in a manner designed to frustrate the tracking of individual transactions through the cryptocurrency Blockchain.
The Silk Road creator Ross Ulbricht, following his arrest in San Francisco, was convicted in 2015 by a New York federal jury of seven criminal counts, including conspiracy to distribute narcotics and money laundering.
The complaint further alleges that in 2020 agents of the IRS CI used a third party bitcoin attribution company to analyze bitcoin transactions executed by Silk Road and were able to identify 54 previously undetected bitcoin transactions executed by Silk Road, all of which appear to represent bitcoin, which was the proceeds of unlawful activity, that was stolen from Silk Road in or about 2012 and 2013.
The complaint alleges that these funds were traced to a bitcoin address. Further investigation of that bitcoin address by the United States Attorney’s Office and IRS CI agents revealed that the funds were connected to Individual X. It was further determined that Individual X had hacked the funds from Silk Road. Pursuant to that investigation of the hack, law enforcement seized several thousand Bitcoins on November 3, 2020. On November 4, 2020, the seized Bitcoin had a value of over $1 billion.
The civil complaint merely alleges that certain property is subject to forfeiture. The United States must prove, by a standard of preponderance of the evidence, that the items are subject to forfeiture. If the United States prevails, the court will order all interests of any potential claimant forfeited.
Assistant U.S. Attorneys Claudia Quiroz, William Frentzen, David Countryman, and Chris Kaltsas of the Northern District of California are prosecuting the forfeiture with the assistance of Carolyn Jusay. The forfeiture action is the result of an investigation by IRS – Criminal Investigation Cyber Crimes Unit with assistance from Chainalysis and Excygent.
U.S. Law Enforcement Assists Brazilian Law Enforcement Takedown of Numerous Digital Piracy Sites and Apps Alleged to Have Caused Millions of Dollars in Losses to U.S. Media CompaniesRead the Press Release
Seizure warrants have been executed against three domain names of commercial websites engaged in the illegal reproduction and distribution of copyrighted works in support of a Brazilian-led takedown of digital piracy sites there, dubbed “Operation 404”.
The coordinated federal law enforcement operation targeted online services that provided illegal copies of copyrighted works, including television shows and movies.
“By seizing these domain names, law enforcement has disrupted the unlawful reproduction and distribution of thousands of pirated television shows and movies, while also cutting off the profits to unlawful actors willing to exploit the hard work of others for their own personal gain,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Justice Department, together with our international law enforcement partners, will continue to take enforcement actions to identify, seize, and disable these sites wherever they exist around the globe.”
“Illegal streaming is not a victimless crime,” said Derek Benner, Executive Associate Director for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “It harms the content creators of the shows that you know and love, and feeds a criminal enterprise whose profits support organized criminal endeavors. Now more than ever, the partnerships between the creative industry and law enforcement agencies are essential to combat digital piracy and protect consumers. The collaborative nature of this investigation is representative of the ongoing work HSI conducts with its international law enforcement partners to proactively identify, target and investigate individuals who violate U.S. intellectual property rights laws.”
According to the affidavit in support of the seizure warrants, each of the three domains—megatorrentshd.biz, comandotorrentshd.tv, and bludv.tv—offered “free access to copyrighted content to website visitors all over the world, including released and pre-release feature-length movies and television shows.” Megatorrentshd.biz featured approximately 84 navigation pages, with 20 film titles per page and approximately 21 navigation pages with approximately 16 television series titles per page. Comandotorrentshd.tv offered movies and television shows, with approximately 10 titles per page, distributed throughout approximately 124 navigation pages. Bludv.tv displayed approximately 670 navigation pages with approximately 14 titles per page.
Operation 404 was coordinated with Brazil’s Secretariat of Integrated Operations (SEOPI) at Brazil’s Ministry of Justice and Public Security (MoJPS). More information about the operation is available here.
The seized domains are in the custody of the federal government. Visitors to the sites will now find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime.
The Justice Department thanks its Brazilian partners at SEOPI and the MoJPS, the City of London Police Intellectual Property Crime Unit, and its domestic partners at the U.S. Attorney’s Office for the Eastern District of Virginia, HSI’s Washington D.C. field office and ICE HSI Attaché at the U.S. Embassy in Brasilia, Brazil, for its assistance and collaboration in this matter.
The Justice Department is working to provide intellectual property related training and technical assistance in other countries through the International Computer Hacking and Intellectual Property (ICHIP) program. Learn more about the Criminal Division’s ICHIP Program, jointly administered by the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training and the Computer Crime and Intellectual Property Section, here.
The National Intellectual Property Rights Coordination Center (IPR Center) is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its member agencies to share information, develop initiatives, and coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorneys Mike Stuart and Bill Powell Announce $4.85 Million to Combat Violent Crime in West VirginiaRead the Press Release
Awards Are Part of More than $458 Million in Justice Department Funding Announced by Attorney General Barr
CHARLESTON, W.Va. – U.S. Attorneys Mike Stuart and Bill Powell today announced more than $4.85 million in Department of Justice grants to fight and prevent violent crime in the Southern and Northern Districts of West Virginia. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“I am thankful for this Justice Department funding that will further support law enforcement efforts to reduce violent crime,” said United States Attorney Mike Stuart. “We will continue to work closely with our federal, state and local partners to keep West Virginia communities safe.”
“I am proud to announce funding that will assist law enforcement in keeping our great state safe for all of us. We must continue our good work to ensure that West Virginia continues to be “almost heaven,” said Powell.
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations received funding:
BJA Project Safe Neighborhoods ($166,713) The efforts of Project Safe Neighborhoods include addressing criminal gangs and the felonious possession and use of firearms. PSN collaborates with local, state, tribal and federal law enforcement agencies, as well as the communities they serve, in a unified approach led by the U.S. Attorney in all 94 districts. Information on the awards is available here.
- Northern District of West Virginia: $88,955
- Southern District of West Virginia: $77,758
BJA Edward Byrne Justice Assistance Grant ($1.575 million) Byrne JAG supports a broad range of initiatives that work to prevent and reduce violent crime. It also provides funds to help crime victims and assist efforts in enforcement, prosecution, adjudication, detention and rehabilitation. Byrne JAG grants local and tribal, and state, District of Columbia and territory awards through separate solicitations.
- City of Wheeling: $40,284
- City of Martinsburg: $10,797
- City of Morgantown: $12,783
- Berkeley County: $10,846
- Marion County: $10,507
- Monongalia County: $15,833
- Randolph County: $10,120
- City of Huntington: $60,862
- City of Charleston: $81,005
- City of Parkersburg: $30,165
- City of Beckley: $23,241
- City of Bluefield: $15,833
- City of South Charleston: $10,216
- Kanawha County: $42,802
- Wood County: $15,300
- Fayette County: $10,652
- Jackson County: $12,056
- Logan County: $15,639
- Mercer County: $11,233
- Nicholas County: $22,031
- Putnam County: $24,500
- Raleigh County: $15,785
- State of West Virginia: $1,072,540
National Instant Criminal Background Check System (NICS) Act Record Improvement Program (NARIP) ($1.73 million) NARIP provides financial and technical assistance to states and tribes to improve the completeness, automation and transmittal of records to state and federal systems used by the NCIS.
- West Virginia Court of Appeals: $1,739,332
National Criminal History Improvement Program ($1.37 million) NCHIP enhances the quality, completeness, and accessibility of criminal history record information to state, territory and federal systems used by the NICS and ensures the nationwide implementation of criminal justice and noncriminal justice background check systems.
- West Virginia Justice and Community Services: $1,374,733
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
Follow us on Twitter: SDWVNews and USAttyStuart
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U.S. Attorney McCoy Announces More than $4.5 million to Combat Violent Crime in the District of South CarolinaRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today more than $4.5 million in Department of Justice grants to fight and prevent violent crime in the District of South Carolina. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“Today’s grants will bolster crime-fighting efforts in communities throughout South Carolina and continue this office’s mission to keep the people of South Carolina safe,” said U.S. Attorney McCoy. “Our efforts in combatting and reducing violent crime are only possible because of the great work of our state and local partners. These funds provide assistance to these team members so we can continue our critical work.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations in South Carolina received funding:
- South Carolina Law Enforcement Division: $2,271,078
- City of Spartanburg: $1,000,000
- City of Myrtle Beach: $700,000
- Commission on Prosecution Coordination: $340,000
- Horry County Government: $265,258
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
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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.
U.S. Attorney Marc Krickbaum and Police Chief Paul Sikorski Announce Nearly $700,000 to Combat Violent Crime in DavenportRead the Press Release
Awards Are Part of More than $458 Million in Justice Department Funding Announced by Attorney General Barr
DAVENPORT, Iowa – United States Attorney Marc Krickbaum today announced nearly $700,000 in Department of Justice grants to fight and prevent violent crime in Davenport, Iowa. The grant, awarded by the Department’s Office of Justice Programs, is part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
The City of Davenport applied for the Bureau of Justice Assistance Strategies for Policing Innovation grant in May 2020. The Davenport Police Department will utilize the grant funding to create a new crime analysis division within the department. The crime analysis division will enable the department to more effectively and efficiently collect and analyze data to inform crime reduction strategies aimed at reducing violent crime, and specifically gun violence, in Davenport.
“The Davenport Police Department is thrilled to receive the Strategies for Policing Innovation grant through the Department of Justice. This funding will be instrumental to our department in creating a new crime analysis division that will further our ability to bring the perpetrators of violent crime in the community to justice,” Davenport Police Chief Sikorski stated. “We are thankful for our partnership with the U.S. Attorney’s Office as we work together to address gun crime in Davenport.”
In July 2019, the City of Davenport announced that it had been selected to join the National Public Safety Partnership (PSP). PSP is a three-year commitment that serves as a Department of Justice-wide program that enables cities to consult with and receive coordinated training and technical assistance and a variety of resources from the Department of Justice to enhance local violence reduction strategies.
In 2019, the City of Davenport was selected to receive approximately $120,000 in funding from Project Safe Neighborhoods to hire a research partner through the University of Iowa. The research project will integrate evidenced-based research into the department’s strategic planning process, identifying opportunities to enhance gun enforcement efforts, build on intervention programs, and establish sustainable gun crime prevention measures. The research project is expected to begin in January 2021 and last approximately 18 months. Additionally, it has been proposed, but not yet finalized, that the City of Davenport receive approximately $55,000 of the Project Safe Neighborhoods funding for fiscal year 2020 to further gun investigations.
“The U.S. Attorney’s Office is committed to working with the Davenport Police Department and other law enforcement agencies to meet the growing threat of gun crime in the Quad Cities,” said U.S. Attorney Marc Krickbaum. “This grant will help ensure that we are targeting the most violent offenders. When those offenders are caught with a gun in Davenport, they should expect to serve long terms in federal prison.”
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
U.s. Attorneys Bill Powell and Mike Stuart Announce $4.85 Million to Combat Violent Crime in West VirginiaRead the Press Release
WEST VIRGINIA – U.S. Attorneys Bill Powell and Mike Stuart today announced more than $4.85 million in Department of Justice grants to fight and prevent violent crime in the Northern and Southern Districts of West Virginia. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“I am proud to announce funding that will assist law enforcement in keeping our great state safe for all of us. We must continue our good work to ensure that West Virginia continues to be “almost heaven,” said Powell.
“I am thankful for this Justice Department funding that will further support law enforcement efforts to reduce violent crime,” said United States Attorney Mike Stuart. “We will continue to work closely with our federal, state and local partners to keep West Virginia communities safe.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations received funding:
BJA Project Safe Neighborhoods ($166,713) The efforts of Project Safe Neighborhoods include addressing criminal gangs and the felonious possession and use of firearms. PSN collaborates with local, state, tribal and federal law enforcement agencies, as well as the communities they serve, in a unified approach led by the U.S. Attorney in all 94 districts. Information on the awards is available here.
• Northern District of West Virginia: $88,955
• Southern District of West Virginia: $77,758BJA Edward Byrne Justice Assistance Grant ($1.575 million) Byrne JAG supports a broad range of initiatives that work to prevent and reduce violent crime. It also provides funds to help crime victims and assist efforts in enforcement, prosecution, adjudication, detention and rehabilitation. Byrne JAG grants local and tribal, and state, District of Columbia and territory awards through separate solicitations.
• City of Wheeling: $40,284
• City of Martinsburg: $10,797
• City of Morgantown: $12,783
• Berkeley County: $10,846
• Marion County: $10,507
• Monongalia County: $15,833
• Randolph County: $10,120
• City of Huntington: $60,862
• City of Charleston: $81,005
• City of Parkersburg: $30,165
• City of Beckley: $23,241
• City of Bluefield: $15,833
• City of South Charleston: $10,216
• Kanawha County: $42,802
• Wood County: $15,300
• Fayette County: $10,652
• Jackson County: $12,056
• Logan County: $15,639
• Mercer County: $11,233
• Nicholas County: $22,031
• Putnam County: $24,500
• Raleigh County: $15,785
• State of West Virginia: $1,072,540
National Instant Criminal Background Check System (NICS) Act Record Improvement Program (NARIP) ($1.73 million) NARIP provides financial and technical assistance to states and tribes to improve the completeness, automation and transmittal of records to state and federal systems used by the NCIS.• West Virginia Court of Appeals: $1,739,332
National Criminal History Improvement Program ($1.37 million) NCHIP enhances the quality, completeness, and accessibility of criminal history record information to state, territory and federal systems used by the NICS and ensures the nationwide implementation of criminal justice and noncriminal justice background check systems.
• West Virginia Justice and Community Services: $1,374,733
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here.
Two Stockton Gang Members Indicted for Firearms TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against two Stockton residents and alleged members of the Everybody Killa (EBK) street gang, charging them with conspiring to deal firearms without a license and other charges, U.S. Attorney McGregor W. Scott announced.
Johnnie Earl Ross Jr., 20, is charged with conspiring to deal firearms without a license, dealing firearms without a license, and possession of an unregistered machine gun. Vin Whealen Gaines Jr., 32, is charged with conspiring to deal firearms without a license, dealing firearms without a license, two counts of being a felon in possession of a firearm, and distribution of methamphetamine.
According to court documents, between Oct. 10, 2019, and Oct. 22, 2020, Ross and Gaines sold at least 13 firearms to an undercover agent or confidential source on behalf of the EBK street gang in Stockton. Many of the firearms were obtained out of state, in Reno, Nevada, and some were obtained by a straw purchaser from federally licensed firearms dealers in Reno. One of the firearms was a Glock handgun with a switch that converted it to a fully automatic firearm. Gaines has prior felony convictions, making it illegal for him to possess a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
This case is part of an investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a prosecutor-led, intelligence-driven, multi‑agency task force that leverages the authorities and expertise of federal, state, and local law enforcement.
The charges carry the following penalties: a maximum statutory penalty of five years in prison and a fine of up to $250,000 for conspiracy to deal firearms without a license; a maximum of five years in prison and a fine of up to $250,000 for dealing firearms without a license; a maximum of 10 years in prison and a fine of up to $10,000 for possession of an unregistered machine gun; a maximum of 10 years in prison and a fine of up to $250,000 for being a felon in possession of a firearm; and a maximum statutory penalty of 20 years in prison and a fine of up to $1 million for methamphetamine distribution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Two Sentenced for Conspiracy to Grow 8,656 Marijuana Plants in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced two Mexican nationals today for a conspiracy to cultivate marijuana, marijuana cultivation in the Shasta-Trinity National Forest, and depredation of federal lands and resources, U.S. Attorney McGregor W. Scott announced.
Armando Vargas Garcia, 38, of Mexico, and Eduardo Montero Aleman, 38, of Puerto Vallarta, Mexico, were each sentenced to 21 months in prison and ordered to pay $34,931 in restitution for the damage caused to the land by the cultivation in the National Forest.
According to court documents, between Aug. 29 and Sept. 5, the defendants were involved in the cultivation of 8,656 marijuana plants in the Big Mountain area in Shasta-Trinity National Forest. Two compound archery bows, nine arrows, and 42 rounds of hollow-point .22-caliber ammunition were discovered on the site. Officers also discovered bottles of carbofuran, a toxic pesticide, which is banned in the United States.
This case was the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the California Department of Fish and Wildlife, and the Trinity County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Two Pinellas County Men Sentenced in Timeshare ScamRead the Press Release
Tampa, Florida – U.S. District Judge Thomas Barber has sentenced Ronald Carapellucci (51, Clearwater) to six years in federal prison and Manuel Parrado (47, St. Petersburg) to two years and six months in federal prison for their participation in a property-sale fraud scheme. Carapellucci and Manuel had pleaded guilty in July 2020.
According to court records, from 2015 through at least 2018, Carapellucci and Parrado conspired with others to take money from victims throughout the United States who wanted to sell their timeshare or other properties. Carapellucci, Parrado, and other conspirators placed telephone calls to these victims impersonating attorneys and real estate professionals. They misled the timeshare owners to believe that the conspirators had identified buyers for the victims’ timeshares and other properties. The conspirators further advised the victims that the timeshare and property sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus fees, the conspirators directed the victims to send funds via wire transfers to one of the conspirators. That conspirator then withdrew the fraud proceeds and shared them with the others, based upon each conspirator’s role in the fraudulent transaction. The conspirators often repeatedly re-contacted their victims and fraudulently advised them that additional fees were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims either ran out of money or became aware of the scam.
Several related defendants have pleaded guilty to charges related to this property-sale fraud scheme:
Name
Charge
Sentence
Gary Kinard
Wire fraud conspiracy and aggravated identity theft
7 years and 11 months in prison
Martin Steele
Wire fraud conspiracy and aggravated identity theft
7 years and 5 months in prison
Mark Boring
Wire fraud conspiracy and aggravated identity theft
7 years in prison
Richard Bell
Money laundering conspiracy
3 years and 4 months in prison
Jeffrey Grospitch
Wire fraud conspiracy
2 years and 3 months in prison
David Bell
Money laundering conspiracy
2 years and 3 months in prison
Joseph Willett
Money laundering conspiracy
2 years and 3 months in prison
Donald Seimo
Money laundering conspiracy
18 months in prison
Kevin McGarry
Money laundering conspiracy
18 months in prison
Bryan English
Money laundering conspiracy
12 months in prison
Phillip Torres
Money laundering conspiracy
Five years’ probation
Michael Levan
Money laundering conspiracy
Five years’ probation
Troy Cater
Money laundering conspiracy
Five years’ probation
Paul Wagner
Money laundering conspiracy
Sentence pending
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Troy Man Pleads Guilty to Threatening Police Officers over FacebookRead the Press Release
ALBANY, NEW YORK – Jhajuan Sabb, age 21, of Troy, New York, pled guilty today to threatening to attack the Troy Police Department during a June 2020 demonstration.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Sabb admitted to making Facebook Live recordings on June 5, 2020 in which he threatened to throw bricks at the Troy Police building and vehicles. Sabb also threatened to use a vehicle to run over police officers.
Senior United States District Judge Lawrence E. Kahn scheduled sentencing for March 3, 2021. Sabb, who has been in custody since June 6, faces up to 5 years in prison, to be followed by up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of state and local law enforcement agencies, including the Troy Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Three Sentenced to Prison for Methamphetamine TraffickingRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced three individuals for trafficking methamphetamine in Catawba County, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Chha Chham, 43, of Mooresville, North Carolina, was sentenced to 20 years in prison and five years of supervised release. Kong Sayavong, 40, of Visalia, California, was sentenced to 10 years in prison, followed by five years of supervised release. Hannah Olivia Secrest, 23, of Morganton, North Carolina, was sentenced to three years in prison and three years of supervised release.
According to filed court documents and statements made in court, from 2018 to September 2019, Chham, Sayavong, and Secrest, were involved in a conspiracy to traffic methamphetamine in Catawba County and elsewhere. Court records show that Chham was the leader of the drug conspiracy, and obtained the methamphetamine from a supply source in California. According to court records, co-conspirator David Alexander Moralez, Jr. worked at a shipping company in California as a mail clerk, and was responsible for mailing packages containing methamphetamine from California to traffickers on the East Coast, including Chham. Sayavong and Secrest were Chham’s local drug distributors. Sayavong was also responsible for arranging drug shipments with Moralez, and Secrest frequently picked up the packages shipped by Moralez and collected drug proceeds for Chham. According to court records, Chham, Sayavong, and Secrest sent drug proceeds back to California via Walmart-to-Walmart transfers and bank deposits, to pay for, among other things, Moralez’s fees and expenses.
Chham, Sayavong and Secrest previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine. Sayavong also pleaded guilty to distribution and possession with intent to distribute methamphetamine. On October 21, 2020, a federal jury convicted Moralez of conspiracy to possess with intent to distribute methamphetamine, two counts of distribution of methamphetamine, and money laundering conspiracy. Moralez is currently awaiting sentencing.
Today’s sentences are the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation codenamed “Dixie Crystal.” According to court documents, since 2015, more than 200 individuals have been prosecuted and law enforcement has seized far in excess of 120 kilograms of crystal methamphetamine, $1,000,000 in U.S. currency and other assets, and dozens of firearms. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray thanked the following agencies for their investigative efforts which led to the prosecution of this case: ICE’s Homeland Security Investigations (HSI) in Charlotte; HSI in Greenville and Nashville; the Drug Enforcement Administration’s Charlotte Field Office; the U.S. Postal Inspection Service in Charlotte; the North Carolina State Bureau of Investigation; the Alexander County Sheriff’s Office; the Boone Police Department; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the Charlotte Mecklenburg Police Department; the Cleveland County Sheriff’s Office; the Davie County Sheriff’s Office; the Gaston County Police Department; the Gastonia Police Department; the Huntersville Police Department; the Lincoln County Sheriff’s Office; the Hickory Police Department; the Johnson County, Tennessee Sheriff’s Office; the Mooresville Police Department; the Newton Police Department; the Longview Police Department; the Morganton Department of Public Safety; the Rutherford County, Tennessee Sheriff’s Office; and the Troutman Police Department.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Three Foreign Nationals Facing Federal Indictment in Maryland for $3.5 Million Wire Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted three foreign nationals residing in Baltimore County for a bank fraud scheme in which the defendants and their co-conspirators obtained or attempted to obtain more than $3.5 million. The defendants, Damilola Lawal, a/k/a DML, D Baba, and Dami, age 31, of Windsor Mill, Maryland, Idowu Ademola Raji, a/k/a ID, King Soso, and James, age 39, of Pikesville, Maryland; and Akolade Ojo, a/k/a Kola and Boogz, age 30, of Owings Mills, Maryland are charged with a federal wire fraud conspiracy, wire fraud, passport fraud, and aggravated identity theft. The indictment was returned on October 26, 2020, and was unsealed at their initial appearances late on November 4, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
According to the 12-count indictment, from August 2018 and continuing until October 26, 2020, the defendants conspired with Adewumi Abioye, Hameed Adesokan, Lukman Salam, and another person to defraud victim businesses and victim financial institutions. Specifically, the indictment alleges that the defendants and their co-conspirators used false, forged, and counterfeited passports and other identification documents that contained the facial images of co-conspirators but not their real names. They used the forged documents to create limited liability companies, and to open fraudulent bank accounts, often where the only authorized signatory was an alias or stolen identity used by the defendants and their co-conspirators. The defendants and their co-conspirators used a messaging app to communicate the timing of financial transactions, including directing members of the conspiracy regarding the deposit, withdrawal, transfer, and conversion of fraudulently obtained funds.
For example, as detailed in the indictment, on September 17, 2019, a co-conspirator sent a victim a fraudulent e-mail purporting to be from the victim’s attorney, advising the victim to send a $65,000 wire transfer to an account controlled by Salam as part of a real estate purchase. Lawal used the messaging app to send photographs and messages to Salam to show that the victim was making the wire transfer and listed a reference number. Once the funds had arrived in the account, Lawal instructed Salam to obtain a cashier’s check and make cash withdrawals so Salam could pay some of the cash to Lawal. Similarly, the indictment alleges that between October 5, 2018 and October 9, 2018, Salam engaged in numerous financial transactions at Raji’s direction, after a co-conspirator fraudulently obtained $390,000 from a victim business by sending the victim business e-mails purporting to come from an employee of one of the victim business’ service providers and requesting that payment be wired to an account in the name of Salam’s alias, Matthew John. Salam then allegedly purchased checks, made cash withdrawals, and engaged in ATM and point of sale transactions using a debit card, in order to obtain access to the fraudulently obtained funds and to conceal their further use.
According to the indictment, on June 11, 2019, Lawal alerted Abioye that fraud proceeds from another victim business were being sent to a bank account that Abioye had opened using a fraudulent passport in the name of Andrew Ali. The account was registered to Geotric Global LLC, and listed Andrew Ali as the only signatory. That same day, the victim business sent a $339,680.63 ACH transfer to the account, believing it was paying a legitimate services vendor after receiving fraudulent e-mails purporting to be from the vendor, and providing payment instructions. On December 30, 2019, Ojo received a $33,729 cashier’s check purchased by a co-conspirator using part of the $66,278.81 fraudulently obtained from a victim business. Ojo provided the check to Salam for deposit. Between December 2019 and January 2019, Salam engaged in multiple withdrawals from the account where the fraudulent funds were deposited and provided Ojo with a portion of the proceeds from the fraud of the victim business.
If convicted, the defendants face a maximum sentence of 30 years in federal prison for the wire fraud conspiracy and for each count of wire fraud. Lawal also faces a maximum sentence of 10 years in federal prison for passport fraud; and Raji faces a mandatory sentence of two years in prison, consecutive to any other sentence imposed for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Deborah Boardman ordered that that all three defendants be detained pending a detention hearing. Detention hearings for Ojo and Lawal are scheduled for November 13, 2020, at 9:30 a.m. and 10:30 a.m., respectively, and a detention hearing for Raji is scheduled for November 18, 2020 at 11:30 a.m.
In a separate federal case in Maryland, Nigerian nationals Abioye, age 33, of Baltimore, and Salam, age 36, of New Jersey and Delaware, have pleaded guilty to related federal charges are awaiting sentencing. Adesokan, age 33, also of New Jersey and Delaware, is scheduled to go to trial, although no date has been set.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended HSI and the U.S. Department of State’s Diplomatic Security Service for their work in the investigation and thanked the U.S. Postal Inspection Service for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Dana Brusca, who are prosecuting the case.
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Texas man sentenced to prison for scheme to fraudulently bill government medical insurance programsRead the Press Release
AUGUSTA, GA: A Texas man has been sentenced to federal prison for organizing a scheme that paid workers to solicit elderly and low-income residents for information used to fraudulently bill government medical programs.
Patrick Siado, 39, of Houston, was sentenced to 51 months in federal prison and ordered to pay $50,075 in restitution by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to one count of Conspiracy, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison sentence, Siado must serve three years of supervised release.
“Of the nearly three dozen defendants prosecuted in the past year for health care fraud in the Southern District of Georgia, Patrick Siado represents a hands-on example of exploiting vulnerable and elderly people for illicit profit,” said U.S. Attorney Christine. “We’re grateful for the work of law enforcement partners, especially the Augusta District Attorney’s Office and the Burke County Sheriff’s Office, for their work in protecting the citizens and their public safety net.”
As described in court documents and testimony, Siado admitted that he and unindicted co-conspirators hired individuals to solicit information and take DNA swabs from low-income and elderly residents. The individuals were paid $150 for each “patient,” with the information used by other conspirators to submit fraudulent claims to Medicare and Medicaid. Siado would then receive an illegal kickback ranging from $100 to $575 per test accepted for billing, which typically generated a claim to Medicaid of more than $30,000 each.
“There are many losers, to include every single taxpayer in this country, when individuals like Siado scheme to bilk government subsidized programs like Medicare and Medicaid,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “In this case the biggest losers were the vulnerable low-income and elderly who are entitled to those funds. Along with our federal, state and local partners we are making it a priority to uncover this sort of abuse.”
“Today’s sentencing is yet another instance in which an unscrupulous player thought he could fortify his bank account at the expense of taxpayers, but he was decidedly wrong,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Our office, along with our dedicated partners, will continue in the fight to safeguard all federally funded health care programs.”
“It is unacceptable that there are those in our society who will sink to a level so low and use Georgia citizens, specifically older, at-risk adults, as pawns for their financial gain,” said Georgia Attorney General Chris Carr. “I commend the Augusta District Attorney’s Office and Burke County Sheriff’s Office for their work in protecting our most vulnerable. Our Office, through the Medicaid Fraud Division, will continue to work collaboratively with U.S. Attorney Bobby Christine’s Office and all other law enforcement to safeguard our healthcare system and those that depend on it.”
The Southern District of Georgia has now charged 30 individuals and companies as part of the nationwide crackdown on fraudulent genetic testing, and prescribing of orthotic braces and pain creams, identifying more than $1.5 billion in losses to Medicare and Medicaid. Those who believe they might have been a victim of such a scheme should contact Assistant U.S. Attorney J. Thomas Clarkson at 912-652-4422.
The investigation was conducted by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Georgia Attorney General’s Office, the Augusta Judicial Circuit District Attorney’s Office, and the Burke County Sheriff’s Office, and prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson and Hank Syms, and Special Assistant U.S. Attorney James P. Mooney.
Tampa Gift Card King Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Stephen H. McIntyre (51, Tampa) to five years and three months in federal prison for conspiring to commit money laundering. The court also ordered McIntyre to forfeit more than $690,000, a 2014 Cadillac Escalade, and other funds that are traceable to the proceeds of the money laundering conspiracy.
McIntyre had pleaded guilty on January 21, 2020.
According to court documents, from March 2014 through February 2019, McIntyre operated SHM Gulf Enterprises, LLC, doing business as Tampa Gift Card King (“GCK”). Located in Tampa, GCK was a secondhand dealer where individuals sold their unused, or partially used, returned merchandise cards and retail gift cards, some of which were procured via theft or fraud, for a percentage of the cards’ face value in exchange for cash. Thereafter, McIntyre and his co-conspirators resold the returned merchandise cards and gift cards even though they knew some of the cards had been obtained via theft or fraud. McIntyre and his co-conspirators also conducted other illicit transactions involving the cards and used the proceeds for their personal enrichment.
In operating GCK, McIntyre violated certain state law requirements including operating without registering as a secondhand dealer, flouting the requirement to wait 15 days between the purchase and resale of a secondhand good, and failing to accurately report all secondhand good purchases in the designated computer database, Business Watch International. In fact, McIntyre could not register as a secondhand dealer because he has prior theft-related felony convictions that precluded such registration. When confronted by law enforcement about this fact, McIntyre orchestrated a purported sale of the GCK to a nominee owner, but he never relinquished control of the business.
McIntyre and his co-conspirators resold most of the merchandise and gift cards via online commercial platforms, direct internet sales, and other means. McIntyre generated more than $10 million in proceeds from the resales of the cards to unwitting third-party purchasers via online commercial platforms including Raise.com and CardCash.
McIntyre and co-conspirator Brandy Fuller later used the card numbers and PINs of some of the previously sold cards in order to identify residual balances on the cards. They then stole the residual balances, aggregated them, and used the proceeds to purchase new gift cards.
McIntyre and his co-conspirators used the proceeds of this fraud scheme to purchase and renovate real properties, acquire vehicles, finance business operations, and otherwise for their personal enrichment.
Fuller previously pleaded guilty to her role in this case. She was sentenced to 36 months’ probation and was ordered to pay $25,925 in restitution.
This case was investigated by the Hillsborough County Sheriff’s Office and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke. The forfeiture was handled by AUSA Suzanne Nebesky.
Three Milwaukee Residents Sentenced for Armed CarjackingRead the Press Release
THREE MILWAUKEE RESIDENTS SENTENCED FOR ARMED CARJACKING
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on November 2, 2020, Chief United States District Judge Pamela Pepper sentenced the last of three defendants for an Armed Carjacking that occurred in Milwaukee in August 2018. Paul E. Anderson (20) of Milwaukee, Wisconsin, was sentenced to 102 months in prison, after he pled guilty to one count of Motor Vehicle Robbery, in violation of Title 18, United States Code, Section 2119(1), and one count of brandishing a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c), which carries a seven-year mandatory minimum sentence.
One of Anderson’s co-defendants, O’Keefer Hooker (23) was sentenced to 72 months in prison after he pleaded guilty to one count of Motor Vehicle Robbery and one count of carrying a firearm during and in relation to a crime of violence, which carries a 5-year mandatory minimum sentence. Anderson’s other co-defendant, Asia Rogers (21), pleaded guilty to one count of Motor Vehicle Robbery and was sentenced to a time served sentence of 13 months’ imprisonment and three years of supervised release.
The sentences stem from an armed carjacking that took place in August 2018 when Anderson pointed a loaded firearm at the victim’s head and demanded her car keys. Fearing for her life, the victim handed over her keys. Anderson and his co-defendants then stole the car, and evaded law enforcement detection for over an hour. Shortly after parking the stolen car, Anderson’s two co-defendants, Rogers and Hooker, were arrested. Anderson evaded law enforcement for several months, but he was identified and indicted in December 2018.
At sentencing, Chief United States District Judge Pamela Pepper noted that carjackings like this one are among the most serious federal crimes and that the defendants’ actions put the victim and the community at significant risk.
“Because Anderson and his co-defendants terrorized their victim and the surrounding neighborhoods, they now face time in federal prison,” said U.S. Attorney Krueger. “This is an excellent example of federal agents working side-by-side with local law enforcement to address violent crime in Milwaukee.”
FBI Special Agent in Charge Robert E. Hughes said: “Serious crime has serious consequences for the offenders. The FBI will continue to work with our partners to get violent criminals off the streets and keep our neighborhoods safe".
The case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, and the Milwaukee County District Attorney’s Investigators. It was prosecuted by Assistant United States Attorneys Julie F. Stewart and Margaret B. Honrath.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Steubenville man sentenced for his role in a drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Michael Bernard Barnett, of Steubenville, Ohio, was sentenced today to 41 months of incarceration for his role in a crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Barnett, age 44, also known as “Gator,” pled guilty to one count of “Distribution of Cocaine Base” in January 2020. Barnett admitted to selling cocaine base, also known as “crack,” in January 2019 in Brooke County.Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. District Judge John Preston Bailey presided.
St. Thomas Man Sentenced to Federal Prison for Possessing and Transporting a Firearm with Obliterated Serial Number and Fleeing the Customs Facility Without AuthorizationRead the Press Release
St. Thomas, USVI – United States Attorney, Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Javier Enrique Lima of St. Thomas was sentenced yesterday after pleading guilty to possessing and transporting a firearm with an obliterated serial number and fleeing a designated customs facility without authorization.
According to the documents filed in this case, on February 3, 2020, defendant presented himself to the Customs and Border Protection (CBP) in the Red Hook ferry terminal after returning from Tortola, British Virgin Islands. A CBP Officer working the x-ray machine noticed a firearm in the backpack Lima brought with him, and called for another officer. Lima immediately fled the facility on foot, leaving his backpack. The backpack contained a firearm with an obliterated serial number. Law enforcement agents made multiple efforts to locate Lima, but were unable to do so. He later turned himself in and pled guilty.
United States District Court Judge Robert A. Molloy sentenced Lima to thirty (30) months imprisonment followed by two years of supervised release on one count and twelve (12) months imprisonment followed by one year of supervised release on one count; to be run concurrently.
The case was investigated by the Department of Homeland Security.
Springdale Man Sentenced to over 22 Years in Federal Prison for Sexual Exploitation of A ChildRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Juan Ordenas-Lucas, age 27, of Springdale, Arkansas, was sentenced today to 276 months in federal prison without the possibility of parole followed by 20 years of supervised release on one count of Sexual Exploitation of a Minor via the Production of Child Pornography. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November 2019 the Springdale Police Department was made aware of videos of child exploitation located on Ordenas-Lucas’ phone. A subsequent search warrant of the phone revealed a video recorded by Ordenas-Lucas of him sexually abusing a 7-year-old female.
Ordenas-Lucas was indicted in January of 2020 and entered a guilty plea in June of 2020.
This case was investigated by Homeland Security Investigations Fayetteville, the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force and the Springdale Police Department. Assistant United States Attorney Carly Marshall prosecuted the case for the United States.
Springdale Man Sentenced to over 15 Years in Federal Prison for Drug Trafficking Related OffenseRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Robert Don Henderson, age 35, was sentenced today to 188 months in federal prison, followed by 4 years of supervised release for Aiding and Abetting in the Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on September 23, 2019, officers with the Lincoln Police Department initiated a traffic stop on a vehicle operated by Henderson. Once the officers initiated a traffic stop, Henderson failed to stop his vehicle and fled from the officers at a high rate of speed. Henderson lost control of the vehicle, and crashed through a fence, at which point, he jumped out of the vehicle and continued his flight on foot. Officers eventually caught up to Henderson, and he surrendered by kneeling on the ground and placing his hands in the air. During a search of Henderson’s person, officers located two firearms. During an inventory search of the vehicle, officers located additional firearms. Later, after receiving additional information, investigators sought and obtained a search warrant for the vehicle driven by Henderson. Upon execution of the search warrant, investigators located approximately one-half of a pound of methamphetamine in a jacket inside the vehicle.
A federal grand jury indicted Henderson in March 2020, and he entered a guilty plea in July 2020.
This case was investigated by the Drug Enforcement Administration, the 4th Judicial District Drug Task Force and the Lincoln Police Department. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Six Individuals Indicted by Federal Grand Jury for Operating Large-Scale Operation to Sell Marijuana Out-of-StateRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that a federal grand jury in Denver has returned a 53-count indictment charging six Metro Denver residents with marijuana possession, distribution, money laundering and money laundering concealment. Of the six individuals charged, five have been arrested and one is a fugitive from justice. The U.S. Postal Inspection Service (USPIS) and the ATF joined in today’s announcement.
According to the Indictment, as well as details from other court documents, the defendants would buy marijuana at a Colorado marijuana dispensary using medical marijuana cards. They would then use the U.S. Mail to send the marijuana to customers throughout the United States who ordered the marijuana using social media and other forms of communication.
During a one-year period, the defendants purchased more than $665,000 worth of marijuana from the dispensary and received more than $923,000 in deposits from out-of-state customers.
USPIS agents executed arrests on October 28, 2020, apprehending 5 of the 6 defendants. During searches conducted subsequent to arrests, law enforcement recovered approximately $10,000 in cash, seven firearms (in addition to five firearms seized earlier in the investigation), 1.5 kilograms of cocaine and a half-pound of methamphetamine.
Those indicted include:
- Delano Monroe of Aurora
- Solomon Chambers of Thornton
- Alexis Monroe of Aurora
- Joshua Sampson of Aurora
- Michael Waterton of Highlands Ranch (fugitive)
- Ashley Montgomery of Denver
If convicted, the defendants face a possible sentence of not more than 20 years per count.
Assistant United States Attorney Zachary Phillips is prosecuting the case. The USPIS and the ATF is conducting the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The case number is 20-cr-343.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty 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.
Savannah man pleads guilty to role in armed carjackings and attempted robberyRead the Press Release
BRUNSWICK, GA: A Savannah man who participated in an attempted robbery and armed carjackings across south Georgia has pled guilty to a series of violent crime charges.
Samuel Renardo Chisholm, a/k/a “Chilly Willy,” a/k/a “Pooh,” 29, of Savannah, pled guilty in U.S. District Court to brandishing a firearm during an attempted carjacking in Ware County, and conspiring to use and carry a firearm during a carjacking in Savannah and an attempted armed robbery in Waycross, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry a possible penalty of up to life in prison, and there is no parole in the federal system.
“These crimes terrorized multiple innocent citizens who shouldn’t have to live in fear of violent attacks,” said U.S. Attorney Christine. “We applaud the efforts of our local, state and federal law enforcement partners in investigating these violent crimes.”
As described in court documents and testimony, on July 25, 2019, Chisholm participated in the armed carjacking of a woman in Savannah. The next day, Chisholm participated in the attempted robbery of a customer outside the TJ Maxx store in Waycross, Ga., and then a short time later, he attempted to carjack a vehicle in Ware County by brandishing a handgun. He was arrested by Ware County law enforcement shortly after the attempted carjacking and has remained in custody.
“Who knows how many more innocent citizens would have been terrorized if local law enforcement had not made this arrest,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The cooperation between local and federal agencies will lead to a sentence that hopefully will ease the trauma to the victims of these violent crimes.”
The case was investigated by the FBI, the Savannah Police Department, the Ware County Sheriff’s Office, and the Waycross Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Ringleader convicted in immigration scam that offered fake marriages for $70,000Read the Press Release
HOUSTON – A 55-year-old woman has admitted guilt for her role in at least 40 sham marriages that charged foreigners up to $70,000 and often provided a fake wedding album to help obtain legal permanent resident status, announced U.S. Attorney Ryan K. Patrick.
Ashley Yen Nguyen aka Duyen was the group’s ringleader. Today, she admitted she ran the criminal organization out of the Southwest Houston area but had associates operating across the state and in Vietnam. As part of her plea, she admitted to conspiring to engage in marriage fraud, mail fraud, immigration fraud, money laundering and making false statements in a tax return.
At times, Nguyen falsely represented herself as an attorney. She also admitted to arranging at least 40 sham marriages in which a Vietnamese national would pay her group $50,000 to $70,000 to marry a wife or husband in the United States to fraudulently obtain lawful permanent resident status. Nguyen issued routine payments of approximately $200 to those U.S. citizens who participated in the fake immigration proceedings.
Nguyen acknowledged the fake spouses did not live together and did not intend to live together, contrary to documents and statements submitted to federal authorities. At her instruction, the spouses only met briefly, immediately before they obtained their marriage license or not at all. The spouses entered into the marriage pursuant to a financial arrangement for the primary purpose of circumventing U.S. immigration laws.
The criminal organization even prepared and provided fake wedding albums containing photographs to make it appear as if they had a wedding ceremony above and beyond a marriage at a courthouse. Following the arrangement, the group also submitted fabricated paperwork to authorities including tax, utility and employment information in order to help their clients gain entry and residency into the country.
To prepare the fake spouses for their interviews with immigration officials, Nguyen and her criminal organization provided fabricated facts to the fake spouses to study and recite details to falsely establish the pair was living together and familiar with each other’s daily habits.
Nguyen purchased multiple residences with the criminal proceeds. She used them as part of the scheme to either collect, distribute the proceeds and/or stage some of the rooms for the times when authorities indicated they would conduct a site inspection. The rooms were setup to appear as if they belonged to the fake spouses. The investigation revealed approximately 500 sham marriages in addition to the ones that were charged in the indictment.
Nguyen pled guilty to three counts for her role in running the marriage fraud scheme as well as a count to false statements in tax returns and conspiracy to commit money laundering.
U.S. District Judge Kenneth M. Hoyt will impose sentencing at a later date. At that time, she faces up to 20 years in prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Adam Laurence Goldman, Michael Day and Kate Suh are prosecuting the case.
Relative of Amazon finance employee pleads guilty to insider tradingRead the Press Release
Seattle - A 36-year-old Bothell, Washington man pleaded guilty today in U.S. District Court in Seattle to securities fraud for his insider trading activity, announced U.S. Attorney Brian T. Moran. VIKY BOHRA admits that between 2015 and 2018, he used Amazon inside information he obtained from his relative to place trades in Amazon stock–making a profit of $1,428,264. BOHRA is scheduled to be sentenced by U.S. District Judge James L. Robart on February 8, 2021.
According to the plea agreement, BORHA’s relative worked in the Amazon Finance Department and had access to confidential information regarding Amazon revenue and expenses. Because of that work, the relative was subject to blackout periods during which no stock could be traded by the employee or her immediate relatives. The employee also was advised of insider trading policies making it clear the responsibility to safeguard confidential financial information. Despite those warnings, BOHRA obtained confidential information from the relative and traded in Amazon stock in accounts tied to him and his father. Trades occurred during blackout periods and, from 2015 to 2018, relied in part on information from his relative to make successful trades in advance of Amazon earnings announcements.
As part of the plea agreement, BOHRA agrees to forfeit the proceeds of his trades, $1,428,264 to the United States. On September 28, 2020, BOHRA was charged by the Securities and Exchange Commission (SEC) in a civil insider trading case. The recoveries in that case will be credited toward the forfeiture owed to the United States.
As part of the plea agreement, BOHRA’s relative will not face criminal charges. The relative is no longer employed at Amazon.
Securities Fraud is punishable by up to 25 years in prison and a $250,000 fine. Under the terms of the plea agreement prosecutors will recommend a sentence of no more than 33 months in prison. The ultimate sentence is up to Judge Robart after considering the sentencing guidelines and other factors.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Justin Arnold.
Puerto Rico Legislator Indicted for Theft, Bribery, and Honest Services Wire FraudRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned a nine-count indictment on November 4, 2020 against legislator Nestor Alonso-Vega, for his alleged participation in a theft, bribery, and kickback scheme. U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and FBI Special Agent in Charge Rafael Riviere Vázquez made the announcement.
“Public corruption poses a threat to our democratic institutions, erodes confidence in government, and, if left unchecked, can tear apart the very fabric of our democracy,” said U.S. Attorney Muldrow. “My office will continue to diligently investigate and prosecute public corruption schemes to protect the public and hold these persons involved accountable for their actions.”
“As I have said before, public corruption erodes public trust in its government institutions. Very few other violations can cause the generalized public anxiety and civil unrest, which corruption does. This is why public corruption is and will remain FBI San Juan’s top priority,” said FBI Special Agent in Charge Riviere Vázquez. “The public is reminded that coming forward to report acts of corruption is not only in everyone’s best interests, but it is also a civic and patriotic duty, of everyone who loves this beautiful island.”
The indictment charges Alonso-Vega with Federal Funds Theft, Bribery, and Kickbacks; and Honest Services Wire Fraud. Alonso-Vega, aided and abetted by others, executed said scheme from April 2018 through September 2020.
As detailed in the indictment, between April 2018 and September 2020, Alonso-Vega authorized several salary adjustments for Person A, an employee in Alonso-Vega’s legislative office. Between in or about February 2018, and in or about April 2018, Person A’s bi-weekly, net government salary was approximately $760.02. Starting in or about April 2018, Person A’s bi-weekly, net government salary was increased to approximately $1,446.52 by Alonso-Vega. Starting in or about May 2018, Person A’s bi-weekly, net government salary was increased to approximately $2,043.08. Starting in or about July 2018, Person A’s bi-weekly, net government salary was decreased to approximately $1,417.00, due to an across-the-board budget cut. However, starting in or about October 2019, Person A’s bi-weekly, net government salary was again increased to approximately $2,270.68 by Alonso-Vega, and remained at that level until in or about July 2020, when Person A left Alonso-Vega’s office.
Out of every inflated paycheck, it was agreed that Person A would kickback to Alonso-Vega half of the total amount of the pay raise, split between each pay day.
The indictment further alleges that Person A used a variety of means to transfer the kickbacks to Alonso-Vega. For example, Person A would sometimes transfer money by using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones; make withdrawals around the time he received his directly deposited paycheck and pay Alonso-Vega in cash; and, at times, Person A would make payments to Alonso-Vega’s Home Depot account.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Assistant U.S. Attorney Scott Anderson.
The federal program bribery and theft charges carry a maximum penalty of 10 years in prison. Each count of honest services wire fraud carries a maximum penalty of 20 years in prison.
An indictment is merely an allegation and the defendant is 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.
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Prince George’s County Man Facing Federal Indictment for Possession with Intent to Distribute Fentanyl and for Assaulting a Federal OfficerRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Andrew Joseph Trimmer, a/k/a D and Smoke, age 31, of Bowie, Maryland, on the federal charges of possession with intent to distribute fentanyl, and for assault on a federal officer. The indictment was returned on November 4, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to the two-count indictment, on September 25, 2020, Trimmer possessed a substance containing a detectable amount of fentanyl, with the intent to distribute that substance. According to court documents, Trimmer was the subject of an investigation into narcotics sales in Southern Maryland. The investigation revealed that Trimmer had been living in a rental home in Bowie, Maryland, but had moved on September 15, 2020. Trimmer was subsequently located living in a hotel in the area of the Bowie Towne Center. As detailed in court documents, law enforcement found Trimmer sitting in his vehicle outside the hotel. As soon as investigators identified themselves as police officers, Trimmer fled. A law enforcement officer grabbed Trimmer, but Trimmer assaulted the officer. During the physical altercation, another officer deployed his Taser, but Trimmer continued to fight. Trimmer was able to get to his feet and run to a nearby fast food restaurant, where he was apprehended by a third law enforcement officer. Court documents allege that Trimmer continued to resist arrest and physically assaulted the third officer during the arrest.
If convicted, Trimmer faces a maximum sentence of 20 years in federal prison for possession with intent to distribute fentanyl and 20 years in federal prison for assaulting a federal officer. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Trimmer is expected to have an initial appearance in U.S. District Court in Greenbelt, although no date has been scheduled. Trimmer is detained on an unrelated state charge.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the DEA and Prince George’s County Police Department for their work in the investigation and thanked the Crofton Police Department and the Anne Arundel County Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorney Erin B. Pulice, who is prosecuting the case.
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Postal Worker Arrested and Charged with Failing to Deliver over 800 Pieces of Mail Which Included Three Absentee BallotsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Wilson, 27, of Buffalo, NY, was arrested and charged by criminal complaint with delay or destruction of mail. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
“This Office is committed not only to ensuring the integrity of the mails but also of individuals’ rights to vote in a free and fair election,” stated U.S. Attorney Kennedy. “The criminal conduct with which this defendant is alleged to have engaged, undermined both of those interests.”
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the complaint, on November 3, 2020, at approximately 7:34 p.m., Customs and Border Protection (CBP) Officers encountered the defendant, an employee of the United States Postal Service (USPS), at the Peace Bridge Port of Entry. As part of a standard CBP vehicle sweep, Wilson opened the trunk of his vehicle for CBP Officers. A USPS mail bin containing numerous mail pieces was observed by a CBP officer inside the trunk. CBP officers also observed multiple USPS uniform items bearing the USPS logo along with a USPS identification badge with the defendant’s name. Wilson stated the mail belonged to him and his mother. However, the defendant could not account for additional names printed on the mail pieces. Wilson further stated that he had intended to deliver the mail and had forgotten to return the mail pieces to the post office.
The United States Postal Service, Office of Inspector General, was called to retrieve the recovered mail pieces. A subsequent inventory of the recovered mail pieces revealed three absentee ballots sent to two Buffalo, NY, addresses from the Erie County, NY Board of Elections, 106 political mailings, 220 first class mailings, and 484 standard mailings for an approximate total of 813 mail pieces. The first-class letter mailings were destined for zip codes 14227, 14211, 14214, with the majority destined for 14215. Cancellation dates showed seven dates between September 16 and October 26, 2020.
The complaint is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Customs and Border Protection, under the direction of Director of Field Operations, Rose Brophy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Portland-Area Resident Indicted for Providing Material Support to ISISRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon and Renn Cannon, Special Agent in Charge, Federal Bureau of Investigation (FBI), Portland Field Office, announced today that a federal grand jury in Portland returned an 5 Count Indictment against Troutdale, Oregon resident Hawazen Sameer Mothafar, 31, charging two counts of Conspiracy to Provide Material Support to a Designated Terrorist Organization and one count of Providing and Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, in violation of Title 18, United States Code, Section 2339B(a)(1). In addition, the indictment charges Mothafar with one count of False Statements in an Immigration Application in violation of Title 18, United States Code, Section 1546(a) and one count of False Statement to a Government Agency in violation of Title 18, United States Code, Section 1001(a)(2).
Mothafar had his initial appearance in front of U.S. Magistrate Judge Jolie A. Russo today. Due to the fact that Mothafar has physical disabilities and is confined to a wheelchair, the Government did not seek detention. Rather, Mothafar was released on conditions including limitations on travel and the use of electronic devices.
According to the allegations contained within the indictment, between February 2015, and up to the time of arrest, Mothafar conspired with ISIS members to provide material support to ISIS. This support included a range of activities. Mothafar produced and distributed ISIS propaganda and recruiting materials that he created and edited in coordination with official ISIS media operatives located overseas. Mothafar produced, edited, and distributed a number of publications and articles including “Effective Stabbing Techniques,” which provided detailed guidance on how to best kill and maim a target in a knife attack, a tutorial on using explosive ignition devices entitled “How Does a Detonator Work,” and propaganda that encouraged readers to carry out attacks in their home countries if they could not travel overseas to fight. Mothafar also maintained contact with ISIS officials overseas and provided technical support to these individuals that included opening social media and email accounts for official use. During the time of this alleged activity, Mothafar also made false statements on immigration documents and to government officials denying any ties to terrorist organizations.
“This defendant is a legal permanent resident of the United States who abandoned the country that took him in and instead pledged allegiance to ISIS and repeatedly and diligently promoted its violent objectives” said United States Attorney Williams. “Our national security prosecutors and law enforcement partners will continue to ensure that those who threaten our country are prosecuted to the fullest extent of the law.”
"The threat of ISIS-inspired terrorism remains very real thanks, in part, to an army of online supporters who produce propaganda that aims to incite 'lone actor' operators in the U.S. and around the world. Today, the FBI arrested one such man in our own community for his alleged role as a leading figure in the Islamic State's media network," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "When it comes to cases like this one, a computer and a keyboard can be powerful weapons against enemies of the Islamic State."
This case is being investigated by the FBI’s Portland Field Office and prosecuted by Assistant United States Attorneys Ethan Knight and Geoffrey Barrow.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Podiatrist Indicted for Health Care FraudRead the Press Release
KNOXVILLE, Tenn.- A federal grand jury in Knoxville returned a forty-count indictment on November 3, 2020 against Andrew Lynn, D.P.M., 63, of Knoxville, Tennessee, charging him with health care fraud. Lynn appeared in court on November 5, 2020, before Chief U.S. Magistrate Judge H. Bruce Guyton and entered a plea of not guilty to the charges in the indictment. Lynn was released pending trial, which has been set for January 12, 2021 in front of United States District Judge Thomas A. Varlan, in Knoxville, Tennessee.
The indictment alleges that Lynn, a Doctor of Podiatric Medicine, engaged in a scheme to defraud when he billed Medicare for services not rendered. As part of this scheme to defraud, the indictment alleges that Lynn preformed routine foot care and then billed Medicare for unperformed surgical procedures. The indictment alleges that as a result of this scheme, Medicare was billed in excess of $1.1 million and paid out in excess of $850,000.
If convicted, Lynn faces a term of up to ten years in prison, up to three years supervised of release, up to a $250,000.00 fine and mandatory restitution.
This indictment is the result of an investigation by HHS-OIG and FBI. Assistant U.S. Attorney Cynthia F. Davidson will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
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Plumas County Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Damion Jay Phillips, 42, of Chester, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 12, Phillips was arrested following a traffic stop in Lassen County. He was found in possession of a 9 mm handgun. Phillips has several prior felony convictions for burglary, drug offenses, attempted arson, and a prior conviction for illegally possessing a firearm that prohibit him from possessing firearms.
This case is the product of an investigation by the Lassen County District Attorney’s Office, the California Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
If convicted, Phillips faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Physician indicted on assault chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Kenneth C. Ramdat, a physician employed at the Louis A. Johnson VA Hospital in Clarksburg, West Virginia, is facing federal criminal charges, U.S. Attorney Bill Powell announced.
Ramdat, 65, of Silver Springs, Maryland, was indicted on two counts of “Abusive Sexual Contact” and two counts of “Simple Assault.” Ramdat is accused of touching two staff women’s breasts without permission in two separate incidents in August 2019 and October 2019 at the hospital in Harrison County.
Ramdat faces up to two years of incarceration and a fine of up to $250,000 for each of the sexual contact counts and faces up to six months of incarceration and a fine of up to $10,000 for the assault counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Veterans Affairs Office of Inspector General, the FBI, the Veterans Affairs Police and the Clarksburg Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pesticide Smuggler Convicted by Federal JuryRead the Press Release
Assistant U. S. Attorneys Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY –November 5, 2020
SAN DIEGO – A federal jury has found Veronica Perez of Hemet, California, guilty of smuggling an unregistered Mexican pesticide into the United States.
After a three-day trial, the jury found that Perez concealed twenty containers of Fosfuro de Zinc (zinc phosphide) in her purse, and failed to declare them at the border when she attempted to cross into the United States from Mexico on July 11, 2019. The jury returned its verdict late yesterday.
According to the EPA, zinc phosphide is an extremely toxic rodenticide, and the ingestion of small amounts can cause death in animals and humans. In fact, consumption of a single bait zinc phosphide pellet can be lethal to a small bird or mammal. Ingestion of seven drops to one teaspoon of zinc phosphide would likely kill a 150-pound person. After it is ingested, the zinc phosphide reacts with acid in the stomach, producing phosphine gas, which blocks cells from making energy, killing the cells. Phosphine gas can also be produced in the stomach if zinc phosphide dust is inhaled and swallowed after clearing from the lungs. Phosphine gas is extremely toxic and damages the heart, brain, kidney, and liver.
“There’s a reason these toxic chemicals are restricted in the United States,” said U.S. Attorney Robert Brewer. “This verdict serves as a warning that violators will be prosecuted as part of our best effort to protect people and the environment from deadly pesticides.” Brewer commended prosecutors Melanie Pierson and Steve DaPonte, and federal agents with Homeland Security Investigations and the U.S. Environmental Protection Agency, Criminal Investigations Division, for their excellent work to achieve justice in this matter.
“Illegal pesticides contain very dangerous and toxic chemicals, and their use jeopardizes public safety, pollutes the environment, and puts people’s health at risk,” said Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI). “These unregistered substances can be very harmful, and HSI and our partners at EPA-CID, CBP, and the U.S. Attorney’s Office are committed to working together to stop these deadly pesticides from entering the United States.”
“The pesticides involved in this case pose serious public health and environmental dangers,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in California. “The verdict in this case demonstrates that individuals who intentionally violate smuggling and environmental protection laws will be held responsible for their crimes.”
This case was prosecuted by Assistant U.S. Attorney Melanie Pierson from the Southern District of California and Special Assistant U.S. Attorney Steve DaPonte of the Department of Justice Environmental Crimes Section.
DEFENDANT Case Number 20cr869-DMS
Veronica Perez Age: 40 Hemet, CA
SUMMARY OF CHARGES
Smuggling – Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCY
Homeland Security Investigations
U.S. Environmental Protection Agency, Criminal Investigations Division
Owner of New Jersey Scrap Metal Company Charged with $600,000 Fraud SchemeRead the Press Release
NEWARK, N.J. – The owner of a New Jersey-based scrap metal company has been arrested for allegedly orchestrating a scheme to defraud one of his customers, U.S. Attorney Craig Carpenito announced.
Creed White, a/k/a “Dan Stein,” 62, of Freeland, Maryland, is charged by complaint with four counts of wire fraud. White made his initial court appearance today by videoconference before U.S. Magistrate Judge Martin C. Carlson in Harrisburg, Pennsylvania, federal court.
According to documents filed in this case and statements made in court:
In early 2017, White contacted the victim through an internet message board and offered to sell the victim aluminum scrap metal. White introduced himself as “Dan Stein.” White’s company, American Scrap LLC, sold the victim 25 containers of aluminum scrap metal in exchange for wire payments totaling approximately $629,973. The containers were shipped to Korea. When the first container arrived at its destination, the victim discovered that the container contained dirt and debris and no aluminum scrap metal. The victim reached out to White to complain and met him in person in Newark in March 2017. White, posing as “Dan Stein,” assured the victim that he would correct the mistake and reimburse the victim for the costs incurred in connection with the container that contained useless waste.
Prior to shipping the next container, White sent the victim photos of the contents of the container. The photos showed that the container was filled with aluminum scrap. There was a copy of the New York Post inside the container to document the date the photos were taken. However, each of the remaining containers arrived in Korea was filled with dirt, debris or plastic waste, and no aluminum. White promised to make the victim whole and sent wire transfers to the victim in the amount of $15,000, but then failed to make good on his promise, causing the victim losses in excess of $600,000.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss derived from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oregon Officers Receive Attorney General Award for Distinguished Service in PolicingRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams congratulates Sergeant Jason Thien of the Curry County Sheriff’s Office and Detective Archie Lidey of the Grants Pass Department of Public Safety, who were honored by United States Attorney General William P. Barr for their distinguished service in policing. The awards were announced on November 3, 2020.
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. This year’s awards recognized the exceptional work of 23 law enforcement officers and deputies from 12 jurisdictions across the country.
The Distinguished Service Award for Sergeant Thien was in the category of Criminal Investigations and reads as follows:
In Curry County, Oregon, Sergeant Jason Thien often works alone on his shift, where he services a 1,600-square mile county and more than eighty miles of the Pacific Coast Highway. Even so, he did not hesitate to give it his all when word came down of a widespread manhunt for a murder suspect, who was thought to be in Curry County. Working his contacts, combing property records, and using other investigative tools, he found his man. Thanks to Sergeant Thien’s dedicated efforts, he apprehended the subject, who will soon be facing charges.
The Distinguished Service Commendation for Detective Lidey was in the category of Innovations in Community Policing and reads as follows:
When Josephine County, Oregon, suffered a funding crisis, Detective Archie Lidey zoomed into action. The situation was dire, with staffing reduced at the sheriff’s office and the jail, limiting the number of offenders that could be housed. Citations were issued to most criminal offenders instead of placing them under arrest. But Detective Lidey began a grassroots effort to find and maintain funding. As a founding member of Securing Our Safety (SOS), formed specifically to overcome the law enforcement–funding crisis, Detective Lidey organized a 5k race that grew to 700 participants in 2020. Lidey and SOS also raised over $60,000 to complete a study of local justice and law enforcement programs. They also formed a nonprofit called Grace Roots, to establish a residential treatment center for people with addictions; and he was key in establishing the Grants Pass Treatment Center, a methadone and suboxone treatment program for substance abuse addiction. Josephine County went from having no treatment facility to one that now sees more than 300 patients a day. And funding-wise, it has all paid off: since 2013, Detective Lidey has coordinated events and contributions that now total $324,000.
“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 local 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.”
“I look forward to presenting these awards to Sergeant Thein and Detective Lidey” said United States Attorney Williams. “These awards are a testament to the dedication, bravery and skill of all law enforcement across our nation and I cannot be happier that two of our own have been recognized for their public safety efforts.”
U.S. Attorney Williams will present the award to Sergeant Thien on November 18, 2020, at 9:00 a.m. at the Curry County Board of Commissioners Annex in Gold Beach, Oregon, and to Detective Lidey on November 24, 2020, at 3:30 p.m. at the Department of Public Safety in Grants Pass, Oregon.
New York man sentenced to prison in $1.6 million investment fraudRead the Press Release
MISSOULA — A New York man who admitted defrauding investors, including a Montana resident, in a $1.6 million scheme was sentenced today to three years in prison, three years of supervised release and ordered to pay $1,643,073 restitution, U.S. Attorney Kurt Alme said.
Christopher Fulco, 44, of Staten Island, N.Y., also known as Christian Anthony, pleaded guilty on July 17 to mail fraud, money laundering and securities fraud.
U.S. District Judge Donald W. Molloy presided. Fulco was released and allowed to self-report to prison.
“Montanans are used to taking people at their word. Those who exploit that trust to commit fraud will be caught, prosecuted and jailed,” U.S. Attorney Alme said.
In court documents filed in the case, the prosecution said Fulco, operating as JM Capital in New York, took money from 11 victims in a scheme that ran from 2014 to 2019. Fulco solicited funds in exchange for shares of stock in two companies, identified as Company 1 and Company 2. Fulco failed to obtain any shares of stock, and instead, spent the money on himself. One of Fulco’s victims is a Montana resident. When Fulco’s victims agreed to buy stock from him, Fulco deposited their money into his JM Capital Citibank account. He was the only signor on the account. Bank records indicated that Fulco spent the money on himself, including making large cash deposits and debit card transactions at casinos in Atlantic City.
At sentencing, Judge Molloy noted that Fulco was responsible for defrauding the Montana investor of more than $350,000.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the FBI.
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New York Man Admits Credit and Gift Card Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted he defrauded credit card companies of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.
James Olla, 28, of Brooklyn, New York, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to one count of a superseding indictment charging him with conspiracy to sell, receive or possess stolen goods.
According to documents filed in this case and statements made in court:
From January 2014 through June 2015, Olla and others procured stolen information related to credit cards belonging to various individuals, including victims living in New Jersey. Using this stolen information, Olla and his conspirators obtained gift cards from various retailers and then sold the cards in Brooklyn and elsewhere, often for large sums of cash.
The count of conspiracy to sell, receive or possess stolen goods carries a maximum potential penalty of five years in prison. Sentencing is scheduled for March 18, 2021.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s guilty plea.
The government is represented by Cybercrime Unit Chief David W. Feder and Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
New Orleans Personal Injury Attorney Indicted in Connection with Staged Accident ProbeRead the Press Release
United States Attorney Peter G. Strasser announced today the Indictment of DANNY PATRICK KEATING, Jr., age 51, of New Orleans, Louisiana, who was charged in a one-count federal indictment with Conspiracy to Commit Mail and Wire Fraud in violation of Title 18, United States Code, Section 371. If convicted, KEATING faces a maximum term of five (5) years imprisonment, a fine of $250,000.00 or twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, KEATING faces a term of supervised release up to three (3) years after his release from prison.
KEATING constitutes the thirty-third (33rd) defendant charged in the Government’s federal probe into the intentional staging of motor vehicle accidents with tractor-trailers and commercial vehicles in the metropolitan New Orleans area. Thus far, eleven (11) of the 33 indicted defendants have tendered guilty pleas in federal court.
According to today’s Indictment, KEATING was a personal injury attorney licensed to practice law in the State of Louisiana. KEATING was charged with conspiring with Damian Labeaud and others to defraud insurance companies, commercial carriers, and trucking companies in a scheme involving intentionally staging automobile accidents.
Labeaud referred staged accidents to KEATING and other New Orleans personal injury attorneys referenced in the Indictment as Attorneys A, B, and C, for $1,000.00 per passenger for accidents involving tractor-trailers and $500.00 per passenger for accidents not involving tractor-trailers. KEATING advanced Labeaud thousands of dollars for these accidents and instructed Labeaud that he owed KEATING a certain number of accidents based on the amount of money advanced. For instance, on July 17, 2017, KEATING gave Labeaud $15,000.00 so Labeaud could purchase a $15,000.00 Chase Bank cashier’s check to buy Mario Solomon’s truck.[1] Additionally, on September 25, 2017, KEATING wrote a $17,000.00 to himself for “advertising” and used the proceeds to purchase a $17,000.00 cashier’s check payable to Labeaud. The Indictment alleges KEATING paid Labeaud another $12,500.00 in checks during the month of June 2017.
KEATING knowingly paid Labeaud for thirty-one (31) illegally staged tractor-trailer accidents. KEATING represented 77 plaintiffs involved in the 31 accidents staged by Labeaud. KEATING settled 17 of the 31 staged accidents. The Indictment charges that KEATING and his 77 clients received approximately $1,500,000.00 in settlement resulting from his representation of his clients involved in the staged accidents and that KEATING kept approximately $358,000.00 in attorney’s fees.
The Indictment alleges that Labeaud and KEATING sometimes discussed the staging of accidents before they happened and communicated via coded language regarding staging accidents. KEATING discussed with Labeaud about changing the locations of the staged accidents, varying the number of passengers, avoiding talking to the police, and avoiding cameras. KEATING also discussed with his clients in the staged accidents that they would likely receive more money in settlement if they received medical treatment.
KEATING filed lawsuits in state and federal court in Louisiana on behalf of his clients who were involved in the staged accidents. The lawsuits filed on behalf of the 77 plaintiffs fraudulently alleged who was driving the vehicles, misrepresented who was at fault in the staged accidents, and falsely claimed injuries. KEATING used the U.S Postal Service to mail settlement demands on behalf of his clients who were involved in staged accidents from the Eastern District of Louisiana to various out-of-state locations. In many cases, clients of KEATING provided false testimony in depositions taken in conjunction with lawsuits filed by KEATING.
”Mr. Keating was supposed to uphold the law rather than manipulate it to benefit himself and other co-conspirators financially”, said FBI Special Agent in Charge Bryan Vorndran. “This indictment is the culmination of an investigation conducted by Special Agents and Intelligence Analysts who worked tirelessly to bring Mr. Keating to justice and is one of many in this case that hopefully will deter others from fraudulently filing false auto and medical insurance claims.”
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.
[1] Solomon was a spotter who worked with Labeaud in staging automobile accidents and pled guilty on May 28, 2020.
Narcotics Smugglers Sentenced after Being Stopped with 1,355 pounds of Marijuana on VesselRead the Press Release
St. Thomas, USVI – United States Attorney, Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Cristian Valencia-Mendoza of Colombia, was sentenced after being found guilty by a jury of Conspiracy to Possess and Possession of a Controlled Substance with Intent to Distribute on Board a Vessel Subject to the Jurisdiction of the United States.
According to court filings, the defendant was on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. The USCG first sighted the go-fast vessel on October 18, 2019, at approximately 45 nautical miles north of Malpelo Island, Columbia. The vessel did not have any display indicating its nationality. The USCG boarded the vessel and successfully seized 21 bales of marijuana, which weighed approximately 1,355 pounds, and arrested the two individuals on board. Defendant later confessed to being hired to assist the boat captain in delivering the drugs. A federal jury returned guilty verdicts on January 22, 2020.
United States District Court Judge Robert A. Molloy sentenced Mendoza to thirty-three (33) months imprisonment followed by two years of supervised release.
The captain of the vessel, Centeno A. Hansel-Andres, of the Dominican Republic, previously pled guilty and was sentenced to thirty seven (37) months in prison.
This case was investigated by the United States Coast Guard and the Drug Enforcement Administration.
Multiple Passengers Arrested for Having Marijuana in Carry-On Bags in St. Thomas Upon Arrival at Cyril E. King AirportRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that two complaints have been filed against Kharim Moore, Trevon Richards and Dennis Weekes for possession with intent to distribute marijuana. Moore, Richards and Weekes made their initial appearances in federal court Thursday, November 5th, in St. Thomas.
According to the two affidavits filed in the cases, Moore was stopped at the Cyril E. King airport after arriving in St. Thomas from Atlanta, GA. Customs and Border Protection (CBP) officers then searched his carry-on bag and found approximately three kilograms of marijuana. Richards and Weekes arrived at the Cyril E. King airport after arriving in St. Thomas from Atlanta, GA on a separate flight. CBP officers searched both their carry-on bags and found marijuana. Richards’ bag contained approximately three kilograms of marijuana. Weekes’ bag contained approximately 1.5 kilograms of marijuana.
These cases are being investigated by the Department of Homeland Security and prosecuted by United States Attorney’s Office for the Virgin Islands.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Montgomery County Man Admits to Unlawfully Selling “Ghost Guns”Read the Press Release
ALBANY, NEW YORK – Michael Castelluccio, age 42, of Fultonville, New York, pled guilty today to unlawfully transferring an unregistered short-barreled rifle that had machinegun capability.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Castelluccio admitted that between August and October 2019, he built and sold firearms from component parts ordered online. These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.
Castelluccio admitted to building and selling short-barreled rifles, which are rifles with barrels less than 16 inches long. Castelluccio admitted to doing so without having filed an application with or received approval from the Secretary of the Department of the Treasury, or paying the tax required by federal law. He also admitted that one of the firearms he sold was modified to allow it to automatically shoot more than one shot by a single function of its trigger.
Chief United States District Judge Glenn T. Suddaby scheduled sentencing for April 1, 2021. Castelluccio faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Castelluccio also agreed to forfeit a pickup truck that he used to transport the firearms. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the ATF and HSI, as well as the Schenectady County and Montgomery County Sheriff’s Offices. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
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; 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/ag/project-guardian-memo-2019/download