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Friday 21 August 2020
Idaho Man Charged with Importation and Distribution of FentanylRead the Press Release
BOISE – Dakota James Hoffman, 28, of Bellevue, Idaho, was indicted on July 14, 2020, by a federal grand jury sitting in Boise for importation and distribution of fentanyl, U.S. Attorney Bart M. Davis announced today.
The indictment alleges that on March 15, 2020, Hoffman imported fentanyl into the United States and further distributed it within the District of Idaho.
The charges of importation of fentanyl and distribution of fentanyl are each punishable by up to 20 years in federal prison, a maximum fine of $1,000,000, and up to three years of supervised release.
Hoffman was arrested on August 14, 2020, in the Northern District of California. He initially appeared there and was ordered to appear on September 3, 2020, in the District of Idaho where he will be formally arraigned on the indictment and a trial date will be set. Further proceedings will take place before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the Blaine County Sheriff’s Office and the Drug Enforcement Administration.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Harrisburg Law Firm Pays $53,295 to Reimburse Medicare ProgramRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Angino Law Firm, P.C., has agreed to pay the United States $53,295 to resolve liability under the Medicare Secondary Payer Statue (MSPS).
Enacted in 1980, the Medicare Secondary Payer Statue requires insurers to make the primary payment for services rendered by Medicare beneficiaries, leaving the Medicare program to provide benefits as a secondary payer. Under the MSPS, Medicare may make conditional payments for a beneficiary’s care, then seek reimbursement from a primary source such as a primary insurance company. The MSPS permits Medicare to seek reimbursement directly from a primary insurance company or another person, such as the Medicare beneficiary or the beneficiary’s attorney, who received payment from the primary insurer but does not remit the payment to Medicare.
According to U.S. Attorney David J. Freed, the Angino Law Firm represented a Medicare beneficiary, “the client,” in a state medical malpractice claim against Bloomfield Pharmacy, Inc. and Bio-Medical Applications of Pennsylvania, Inc., alleging that the pharmacies had dispensed an incorrect drug to the client. In 2011, Medicare conditionally paid approximately $84,353 for the client’s medical care. The Angino Law Firm settled the state medical malpractice claim in 2014 and received payment on behalf of the pharmacies. Under the Medicare Secondary Payer Statute, the Angino Law Firm was required to repay $53,295 to the Medicare Program. Because the Angino Law Firm refused to repay the Medicare Program, the United States filed suit to recover the money owed to the Government in July 2017.
After extension litigation in the district court, the parties agreed to amicably resolve the matter. Under the terms of the settlement, the Angino Law Firm paid the United States $19,545.15 and Bio-Medical Applications of Pennsylvania paid the Government $33,750, which had been set aside in escrow from the state medical malpractice settlement. The settlement agreement is not an admission of liability by any of the parties, but it does result in the Medicare Program being reimbursed the funds it expended for the client’s treatment.
“Medicare benefits are a vital lifeline for thousands of citizens in the Middle District of Pennsylvania,” said U.S. Attorney Freed. “Our Affirmative Civil Enforcement Unit is focused on making sure that such funds are appropriately billed and spent, and recovered when the situation requires. The health of our Medicare beneficiaries is far too important for our office to stand on the sidelines.”
This matter was litigated by the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office and is assigned to Assistant U.S. Attorney D. Brian Simpson. The Office of General Counsel, U.S. Department of Health and Human Services, also assisted in this case. The case is docketed as U.S. v. Richard C. Angino.et al., Civ. No. 3:17-1193 (M.D. Pa.).
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Grant County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Timothy Elliot Wheeler, of Petersburg, West Virginia, was sentenced to 60 months of incarceration for a firearms violation, U.S. Attorney Bill Powell announced.
Wheeler, age 29, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Crime” in November 2019. Wheeler admitted to having a 9mm pistol during a drug trafficking crime in March 2019 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Grant County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Grant County Man Sentenced to 132 Months for Transporting Child PornographyRead the Press Release
COVINGTON, KY- A Cornith, Ky., man, Robert Stanton Sexton, 28, was sentenced in federal court on Friday to 132 months in prison, by U.S. District Judge David Bunning, for transporting child pornography.
According to his guilty plea agreement, on October 3, 2018, Sexton admitted to using his Tumblr account to upload approximately seven video files depicting prepubescent children engaged in sexually explicit conduct. Law enforcement interviewed Sexton at his home and he admitted to viewing, downloading, and transporting child pornography. Sexton further admitted that his cell phone contained child pornography, including approximately 20 nude images of a minor girl, with whom he had been exchanging text messages. He also admitted to sending nude images of himself to an additional minor girl, via text messages.
Sexton pleaded guilty in May 2020.
Under federal law, Sexton must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 25 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI); and Commissioner Rodney Brewer, Kentucky State Police, jointly made the announcement.
The investigation was directed by Homeland Security Investigations and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Wade Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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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Grand Jury Indicts Man on Carjacking and Firearm Charges for Allegedly Stealing Vehicle at Gunpoint in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly stealing a vehicle at gunpoint in Chicago last month.
On the afternoon of July 28, 2020, MICHAEL C. PEARSON forcibly took a 2006 Buick Lucerne from two victims in the Uptown neighborhood of Chicago, according to an indictment returned Thursday in U.S. District Court in Chicago. Pearson discharged a handgun during the carjacking, the indictment states. Neither victim was wounded.
The indictment charges Pearson, 18, of Chicago, with one count of carjacking and one count of discharging a firearm during a crime of violence. He is currently in law enforcement custody. Arraignment on the federal charges has not yet been scheduled.
The firearm charge carries a maximum sentence of life in federal prison, while the carjacking charge is punishably by up to 15 years.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges. The government is represented by Assistant U.S. Attorney Albert Berry III.
“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney Lausch. “Our office is committed to working closely with the FBI, CPD, and other law enforcement partners to pursue and prosecute violent offenders. The carjacking and gun charges announced today are the direct result of that strong partnership.”
“This indictment proves that Operation Legend is working, and is successfully getting violent criminals off the streets of our city,” said FBI SAC Buie. “The FBI and CPD Vehicular Hijacking Taskforce, along with our partners at the U.S. Attorney's Office, will continue to bring justice to those that commit these intolerable violent crimes.”
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses. Since the operation’s launch in Chicago on July 22, 2020, more than 60 defendants have been charged in cases alleging federal felony offenses relating to violent crime affecting the city of Chicago. Those cases include more than 30 defendants facing a lead firearms-related charge.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Grand Jury - August 2020Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 9 unsealed Indictments charging 9 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jason L. Bates, age 48, of Omaha, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on July 18, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, life term of supervised release, and a $100 special assessment.
* Michael C. Becker, age 23, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with receipt of child pornography beginning on or about August 12, 2018. The maximum possible penalty is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count II charges the defendant with possession of child pornography beginning on or about August 14, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment and $5,000 additional special assessment.
* Edward Charles Cress, age 33, of Grand Island, Nebraska, is charged with possession of child pornography beginning on or about May 23, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment and $17,000 additional special assessment.
* Hector Esparza-Varela, age 40, is charged with illegal reentry after deportation following a felony conviction on or about August 18, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* David Felipe Martin, a/k/a Alejandro Rodriguez, age 36, is charged with illegal reentry after deportation on or about August 17, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Victor Lopez-Gutierrez, age 36, is charged with illegal reentry after deportation on or about August 10, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Cayla Pritchard, age 35, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with conspiracy to distribute and possession with intent to deliver 28 grams or more of crack cocaine on June 15, 2020 and continuing to on or about June 26, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 28 grams or more of crack cocaine on June 26, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment.
* Bernavel Rodas-Lopez, age 51, is charged with illegal reentry after deportation on or about July 30, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Carlos Armando Zazueta-Arrellano, age 28, is charged with illegal reentry after deportation following a felony conviction on or about July 10, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Government obtains more than $5 million in judgments to resolve healthcare fraud allegations against Georgia chiropractor, practiceRead the Press Release
BRUNSWICK, GA: A Brunswick, Ga. chiropractor and her medical practice have been ordered to pay more than $5 million to resolve a civil fraud complaint filed by the federal government.
The judgment, approved by the U.S. District Court for the Southern District of Georgia, awards the United States more than $4.3 million against Brunswick-based Heller Family Medicine, LLC and $700,000 against its owner, Dr. Jennifer Heller, D.C., a Brunswick chiropractor, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“There is no room in healthcare for medical practices to game the system to collect money that should go to providers performing legitimate procedures,” said U.S. Attorney Christine. “This office is committed to using all available tools to investigate anyone who defrauds federally funded health care programs.”
According to court documents, the United States alleges that Dr. Heller and her medical practice violated the False Claims Act by submitting claims to the Medicare Program for hundreds of surgical procedures involving implantable neurostimulators, when in actuality the practice used an acupuncture device commonly referred to as a “P-Stim.” The “P-Stim” device provides stimulation by electrical impulses when affixed with an adhesive behind a patient’s ear.
While Medicare pays thousands of dollars for the surgical neurostimulator procedure, it does not cover acupuncture services. In court documents, the United States alleged the medical practice falsely certified that they were performing the surgical procedure, rather than using the acupuncture device. In total, Medicare paid Dr. Heller’s medical practice more than $1.4 million for the false claims during a two-year period.
“Falsely submitting claims for non-covered services and thereby bilking Medicare out of more than a million dollars is inexcusable,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Together with our law enforcement partners, we will continue the fight to safeguard the Medicare Trust Fund.”
U.S. Attorney Christine commended Dr. Heller for working with federal authorities after being approached with this investigation. The investigation into others involved in this scheme remains ongoing.
U.S. Attorney Christine lauded the hard work of the investigative team, which was led by Special Agent David Graupner of the Department of Health and Human Services Office of Inspector General and Investigative Analyst Charles Sikes of the U.S. Attorney’s Office. The United States was represented by Assistant U.S. Attorneys Patrick J. Schwedler and Jonathan A. Porter.
Georgia Man Sentenced for Illegal Firearms PossessionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 19, 2020, Jemel Xavier Williams, age 37, of Macon, Georgia, was sentenced to 92 months’ imprisonment by U.S. District Court Judge Christopher C. Conner for being a previously convicted felon in possession of firearms.
According to United States Attorney David J. Freed, on February 15, 2017, in Franklin County, Williams was found to be in possession of a Glock 19, 9mm and a Glock 36, .45 caliber firearms as a previously convicted felon.
The case was investigated by the Pennsylvania State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
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Georgia Man Pleads Guilty to Conspiracy Charges for Defrauding the North and South Carolina Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. – Markuetric Stringfellow, 37, of Powder Springs, Georgia, appeared in court today and pleaded guilty to federal conspiracy charges filed in the U.S. District Courts in North and South Carolina, for defrauding the states’ Medicaid programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina, and U.S. Attorney Peter M. McCoy, Jr., of the U.S. Attorney’s Office for the District of South Carolina. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
The North Carolina Scheme
According to filed plea documents and today’s plea hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina, among others. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.
According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H, and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.
In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.
The South Carolina Scheme
In addition to executing a fraudulent scheme in North Carolina, Stringfellow has admitted to defrauding the South Carolina Medicaid program. According to the bill of information and documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid.
Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement. According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Stringfellow pleaded guilty today to two counts of conspiracy to commit Medicaid fraud. The South Carolina case will be transferred to the U.S. District Court for the Western District of North Carolina. Each conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. A sentencing date for Stringfellow has not been set.
In making today’s announcement U.S. Attorney Murray and U.S. Attorney McCoy commended the investigative work of the FBI field offices in Charlotte, Columbia and Atlanta, and the Medicaid Investigation Divisions in Raleigh, Columbia and Atlanta, and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.
Assistant U.S. Attorneys Michael Savage in Charlotte and Brook Andrews in Columbia are prosecuting the case.
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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.
Georgia Man Pleads Guilty to Conspiracy Charges for Defrauding the North and South Carolina Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. – Markuetric Stringfellow, 37, of Powder Springs, Georgia, appeared in court today and pleaded guilty to federal conspiracy charges filed in the U.S. District Courts in North and South Carolina, for defrauding the states’ Medicaid programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina, and U.S. Attorney Peter M. McCoy, of the U.S. Attorney’s Office for the District of South Carolina. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
The North Carolina Scheme
According to filed plea documents and today’s plea hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina, among others. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.
According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H, and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.
In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.
The South Carolina Scheme
In addition to executing a fraudulent scheme in North Carolina, Stringfellow has admitted to defrauding the South Carolina Medicaid program. According to the bill of information and documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid.
Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement. According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Stringfellow pleaded guilty today to two counts of conspiracy to commit Medicaid fraud. The South Carolina case will be transferred to the U.S. District Court for the Western District of North Carolina. Each conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. A sentencing date for Stringfellow has not been set.
In making today’s announcement U.S. Attorney Murray and U.S. Attorney McCoy commended the investigative work of the FBI field offices in Charlotte, Columbia and Atlanta, and the Medicaid Investigation Divisions in Raleigh, Columbia and Atlanta, and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.
Assistant U.S. Attorneys Michael Savage in Charlotte and Brook Andrews in Columbia are prosecuting the case.
Former Queens Cardiologist Settles Civil Fraud AllegationsRead the Press Release
Ghanshyam Bhambhani, a former Queens cardiologist, will pay a total of $2 million to settle civil claims that he paid kickbacks to other physicians for referrals of patients insured by Medicare, Medicaid and the Federal Employees’ Health Benefits Program. Under the terms of the settlement, Bhambhani will pay the United States $1,370,294.50. In addition, he will pay the State of New York $629,705.50.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General for the Office of Personnel Management (OPM-OIG), announced the settlement.
An investigation by the Office, the FBI and OPM-OIG revealed that, from 2010 through 2017, Bhambhani paid other doctors compensation disguised as rent for patient referrals in violation of the Anti-Kickback Statute and the False Claims Act. The investigation also revealed that Bhambhani falsified records to justify cardiac procedures. Bhambhani admitted engaging in this conduct and has agreed to cooperate with the Government.
“Paying kickbacks for patient referrals erodes the integrity of our healthcare system and costs taxpayers precious dollars. Doctors must put patients first, not treat them like commodities unscrupulously paid for with government funds,” stated Acting United States Attorney DuCharme. Mr. DuCharme expressed his grateful appreciation to the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the New York State Attorney General for their assistance with the case.
“The OPM-OIG has zero tolerance for fraud against the Federal Employees Health Benefits Program (FEHBP). Submitting false claims for services that are not medically necessary and creating false documentation to justify procedure undermines the FEHBP, wastes taxpayer dollars, and increases the cost of medical care for us all,” stated OPM-OIG Deputy Inspector General Vint. “This settlement is a result of the hard work of our investigative staff and our partners at the U.S. Attorney’s Office, EDNY, FBI, HHS OIG, and the New York State Attorney General’s office.”
The agreement resolves a lawsuit originally brought by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, captioned United States ex rel. FNU LNU LLC v. New York Cardiology P.C., et al., Civil No. 14-4581 (EDNY). The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery.
In 2018, Bhambhani surrendered his medical license after pleading guilty in the Eastern District of New York to one count of conspiracy to pay healthcare kickbacks. He was sentenced to 34 months in prison, three years’ supervised release and ordered to pay $217,364.83 in criminal restitution and $1,080,000 in criminal forfeiture.
The government’s case was handled by Assistant U.S. Attorney Lisa Kutlin of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
Former Employee Pleads Guilty to Stealing Company Property and Selling It on EbayRead the Press Release
GRAND RAPIDS, MICHIGAN - Laura Arlene Barnett, 53, of Allegan, Michigan, pleaded guilty to the interstate transportation of stolen property, U.S. Attorney Andrew Birge announced today. The sentencing before Chief U.S. District Judge Robert J. Jonker is scheduled for November 30, 2020. At sentencing, Barnett will face up to 10 years’ mprisonment. As partof her plea agreement, Barnett agreed to pay restitution of $413,903.38 to repay her employer for the parts and supplies that she stole.
Barnett was an employee of Perrigo, a global consumer self-care company that manufactures over-the-counter and branded products. Barnett worked as a Maintenance Repair and Operations Coordinator in Perrigo’s Allegan maintenance department. She was responsible for ordering and processing parts used in the manufacturing facilities. Barnett used her position to gain access to equipment, parts, and supplies that the company used to operate packing machinery. She stole more than 470 items of equipment, parts, and supplies worth approximately $413,903.38 and sold the items on eBay.
This case was investigated by the FBI and the Allegan County Sheriff’s Office, and prosecuted by Assistant United States Attorney Daniel Mekaru. Perrigo has fully cooperated throughout the process.
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Former Army Special Forces Officer Charged in Russian Espionage ConspiracyRead the Press Release
A Gainesville, Virginia, man was arrested today for conspiring with Russian intelligence operatives to provide them with United States national defense information.
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 45, a former member of the U.S. Army, allegedly conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Two espionage arrests in the past week — Ma in Hawaii and now Debbins in Virginia — demonstrate that we must remain vigilant against espionage from our two most malicious adversaries — Russia and China,” said John C. Demers, Assistant Attorney General for National Security. “Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy. Our country put its highest trust in this defendant, and he took that trust and weaponized it against the United States.”
“Our military is tasked with the awesome responsibility of protecting our nation from its adversaries, and its service members make incredible sacrifices in service of that duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “When service members collude to provide classified information to our foreign adversaries, they betray the oaths they swore to their country and their fellow service members. As this indictment reflects, we will be steadfast and dogged in holding such individuals accountable.”
"The facts alleged in this case are a shocking betrayal by a former Army officer of his fellow soldiers and his country," said Alan E. Kohler, Jr., FBI Assistant Director of the Counterintelligence Division. "Debbins is accused of giving Russian intelligence officers sensitive information about the units in which he once served and also providing the names of other service members so Russia could try to recruit them. These actions cannot stand and the FBI will aggressively pursue such cases."
“According to the allegations, Mr. Debbins knowingly provided information to self-proclaimed members of Russia's Intelligence Service, the GRU,” said James A. Dawson, Acting Assistant Director in Charge of the FBI Washington Field Office. “As a member of the U.S. Armed Forces, the American people and his fellow service men and women should have been able to trust Debbins with secrets and information. Debbins allegedly fell very short of that and exploited his role in the military and his fellow service members to benefit one of our top adversaries for years. Today’s charges are another example of the dedicated and unrelenting efforts of the FBI and our partners, domestic and international, to aggressively pursue and bring to justice those who violate this sacred trust and place our national security at risk.”
Over the course of the conspiracy, Debbins allegedly provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
Debbins is charged with conspiring to provide United States national defense information to agents of a foreign government. If convicted, Debbins faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
John C. Demers, Assistant Attorney General for National Security; G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Acting Assistant Director of FBI Washington Field Office made the announcement. Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Assistant Attorney General Demers and U.S. Attorney Terwilliger greatly appreciate the assistance of the FBI’s Minneapolis Field Office, and Army Counterintelligence, along with the United Kingdom's Metropolitan Police and MI5.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former Army Green Beret Charged in Russian Espionage ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former Army Green Beret was arrested today for allegedly conspiring with Russian intelligence operatives to provide them with United States national defense information.
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 45, of Gainesville, a former member of the U.S. Army, allegedly conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Our military is tasked with the awesome responsibility of protecting our nation from its adversaries, and its service members make incredible sacrifices in service of that duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “When service members collude to provide classified information to our foreign adversaries, they betray the oaths they swore to their country and their fellow service members. As this indictment reflects, we will be steadfast and dogged in holding such individuals accountable.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents allegedly encouraged him to join and pursue a career in the Special Forces, which he did, where he served at the rank of Captain.
“Two espionage arrests in the past week – Ma in Hawaii and now Debbins in Virginia – demonstrate that we must remain vigilant against espionage from our two most malicious adversaries – Russia and China,” said John C. Demers, Assistant Attorney General for National Security. “Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy. Our country put its highest trust in this defendant, and he took that trust and weaponized it against the United States.”
Over the course of the conspiracy, Debbins allegedly provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, a number of his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
“According to the allegations, Mr. Debbins knowingly provided information to self-proclaimed members of Russia's Intelligence Service, the GRU,” said James A. Dawson, Acting Assistant Director in Charge of the FBI Washington Field Office. “As a member of the U.S. Armed Forces, the American people and his fellow service men and women should have been able to trust Debbins with secrets and information. Debbins allegedly fell very short of that and exploited his role in the military and his fellow service members to benefit one of our top adversaries for years. Today’s charges are another example of the dedicated and unrelenting efforts of the FBI and our partners, domestic and international, to aggressively pursue and bring to justice those who violate this sacred trust and place our national security at risk.”
“The facts alleged in this case are a shocking betrayal by a former Army officer of his fellow soldiers and his country,” said Alan E. Kohler, Jr., FBI Assistant Director of the Counterintelligence Division. “Debbins is accused of giving Russian intelligence officers sensitive information about the units in which he once served and also providing the names of other service members so Russia could try to recruit them. These actions cannot stand and the FBI will aggressively pursue such cases.”
Debbins is charged with conspiring to provide United States national defense information to agents of a foreign government. If convicted, Debbins faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
U.S. Attorney Terwilliger and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service, and MI5.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-193.
Fmr. Dallas Police Officer Pleads Guilty to Possession of ‘Sadistic’ Child PornRead the Press Release
An ex-Dallas police officer has pleaded guilty to possessing sexually explicit images of little girls, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daniel Lee Collins, a 35-year-old former senior corporal, pleaded guilty to possession of child pornography before U.S. Magistrate Judge Jeffrey Cureton Friday morning.
According to plea papers, Mr. Collins admitted he accessed child pornography via his Google email account in spring 2020.
Mr. Collins further admitted he knew the images depicted actual minors, including a nude prepubescent female, and portrayed “sadistic or masochistic conduct.” He also acknowledged that on one occasion, he knowingly distributed a file containing sexually explicit images of a child.
According to a criminal complaint filed in July, the investigation was triggered when Google detected sexually explicit images uploaded to Mr. Collin’s Google account via the City of Dallas’ internet network.
Google flagged the images – one uploaded on May 13 to an account tagged “Dan Collins” and two more uploaded on June 29 to an account tagged “John Smith” – to the National Center for Missing and Exploited Children, which filed a Cyber Tipline report with the Dallas Police Department.
A Dallas IT specialist traced the IP addresses used for the uploads to the City of Dallas internet network. Investigators determined that the same Google accounts were also accessed from Mr. Collin’s residence.
Mr. Collins, who resigned from the Dallas Police Department earlier this week, now faces up to 20 years in federal prison. His sentencing is slated for Jan. 8, 2021.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Fayette County Man Sentenced to 166 Months for Two Armed Robberies of Lexington PharmacyRead the Press Release
LEXINGTON, KY- A Lexington man, Michael R. McReynolds Jr., 32, was sentenced to 166 months on Friday, before Chief United States District Judge Danny Reeves, to Hobbs Act robbery and carrying and using a firearm during a crime of violence.
According to McReynolds’ plea agreement, on September 27, 2019, he robbed the Hubbard & Curry Pharmacy located in Lexington. McReynolds, who was armed with an AK-style firearm, took oxycodone pills, other drugs, and approximately $300. On October 21, 2019, McReynolds again robbed the pharmacy. During the second robbery, McReynolds was again armed with an AK-style firearm, and he stole approximately 500oxycodone pills.
Based on evidence collected, law enforcement officers identified McReynolds as the perpetrator of both robberies. Officers arrested McReynolds at his fiancée’s home on October 21, 2019, and located several of the prescription pills that were stolen during the pharmacy robberies.
As part of his plea agreement, McReynolds admitted to possessing and brandishing a firearm to help facilitate his robberies of the pharmacy.
Under federal law, McReynolds must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Lawrence Weathers, Chief of Police, Lexington Police Department jointly announced the sentencing.
The investigation was directed by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
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 PSN program was reinvigorated 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.
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. Click here for more information about Project Guardian.
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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FEMA Employee Facing Federal Indictment in Maryland for Preparing Fraudulent Tax Returns for Herself and 11 ClientsRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Shanta Johnson, age 43, of Germantown, Maryland, on the federal charges of aiding and assisting in the filing of false tax returns and subscribing to false tax returns. The indictment was returned on July 13, 2020, and was unsealed at her initial appearance today.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Assistant Special Agent in Charge Karen Jordan of the Department of Homeland Security, Office of Inspector General (DHS-OIG), Washington, D.C. Field Office.
According to the indictment, Johnson – who is a program analyst at the U.S. Department of Homeland Security, Federal Emergency Management Agency - prepared false and fraudulent tax returns from her home as well as from her workplace. Johnson allegedly prepared fraudulent tax returns for 11 clients for tax years 2014 and 2015. Johnson reported inflated or fictitious deductions for gifts to charity and unreimbursed employee expenses; false profits or losses to either inflate or reduce her clients’ earned income; and entirely fictitious expenses for educational institutions her clients had not attended. For example, as detailed in the indictment, Johnson reported for Client A fraudulent unreimbursed employee expenses of $8,125. The falsities that Johnson created and reported to the IRS reduced tax liabilities for her clients and increased tax credits, including the Earned Income Credit, and refunds for the client-taxpayers.
Further, the indictment alleges that Johnson did not report the money she received from preparing clients’ tax returns on her own tax returns and she falsely reported net business losses to reduce her own reported income.
If convicted, Johnson faces a maximum sentence of three years in federal prison for each of the 18 counts of aiding and assisting in the filing of a false tax return; and for each of the three counts of making and subscribing to a false tax return. 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.
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 IRS-CI, and DHS-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory Bernstein, who is prosecuting the case.
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Eleven More Charged in Expanding Federal Probe into the Staging of Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today the Indictment of RODERICK HICKMAN (“HICKMAN”), age 49, of Baton Rouge, Louisiana; LOIS RUSSELL (“RUSSELL”), age 61, of Gibson, Louisiana; JAMES WILLIAMS (“WILLIAMS”), age 65, of Gibson, Louisiana; TANYA GIVENS (“GIVENS”), age 42, of Gibson, Louisiana; JOHN DIGGS (“J. DIGGS”), age 59, of Thibodaux, Louisiana; HENRY RANDLE (“RANDLE”), age 63, of Gibson, Louisiana; RYAN WHEATEN (“WHEATEN”), age 52, of Lafayette, Louisiana; DAKOTA DIGGS (“DIGGS”), age 25, of Ft. Smith, Arkansas; BERNELL GALE (“GALE”), age 43, of Raceland, Louisiana; MARVEL FRANCOIS (“FRANCOIS”), age 56, of Houma, Louisiana; and TROY SMITH (“SMITH”), age 56, of Houma, Louisiana. These eleven defendants were charged in a seven-count federal indictment with one (1) count of Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371 and six (6) counts of Mail Fraud in violation of Title 18, United States Code, Section 1341. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-7. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count.
Today’s indictment charges these defendants and others with intentionally staging automobile accidents with tractor-trailers in New Orleans to defraud trucking and insurance companies through fraud. According to today’s indictment, defendants HICKMAN, RUSSELL, WILLIAMS, GIVENS, and J. DIGGS intentionally collided with a tractor-trailer on March 27, 2017, at the intersection of Chef Menteur Highway and Downman Road. The indictment alleges that HICKMAN intentionally struck the 18-wheeler and then fled the scene with Damian Labeaud (“Labeaud”), who pled guilty to a previous indictment charging him and seven others with staging automobile accidents.
The indictment also alleges that defendants RANDLE, D. DIGGS, and WHEATEN intentionally collided with a tractor-trailer on May 17, 2017, in the area of Calliope Street and US-90 East. Labeaud was the actual driver of the vehicle when he intentionally caused the accident with the tractor-trailer. Mario Solomon, also charged and convicted in an earlier indictment, picked up Labeaud from the collision site. Labeaud participated in another staged accident approximately 30 minutes later in the vicinity of Louisa Street and Chickasaw Street. The participants in the Louisa Street staged accident were FRANCOIS, GALE, SMITH, and another passenger. Again, Labeaud fled the scene.
As discussed in the indictment, the passengers were referred to attorneys who paid HICKMAN and Labeaud to stage the accidents. In some cases, the attorneys knew that the participants were uninjured but referred them to medical providers for treatment to increase the value of subsequent lawsuits. In total, the victim trucking and insurance companies paid out $277,500.00 for these fraudulent claims.
Arrest Warrants were issued for RUSSELL, J. DIGGS, WHEATEN, and D. DIGGS. The remaining defendant’s will be required to appear, at a later date, before a United States Magistrate Judge for an initial appearance and arraignment on this indictment.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants 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.
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Dallas Mystic Shop Owner Pleads Guilty to Wildlife CrimesRead the Press Release
A Dallas mystic shop owner has pleaded guilty to trafficking dried hummingbird carcasses in violation of the Migratory Bird Treaty Act, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Cynthia Macias-Martinez, 48, pleaded guilty to the sale of wildlife taken in violation of federal law before United States Magistrate Judge Renee H. Toliver on Tuesday.
According to court documents, Ms. Macias-Martinez, owner of a Dallas mystic shop, admitted to selling dried hummingbird carcasses known as “chuparosas” without a valid permit or authorization. “Chuparosas” are believed by some to have mystical benefits and are commonly used as amulets or charms.
The hummingbird, a migratory bird, is protected by the Migratory Bird Treaty Act. Pursuant to Federal regulations, it is illegal to take, possess, import, export, transport, or sell a hummingbird, or its parts, nests, or eggs, except under the terms of a valid permit.
Ms. Macias-Martinez admitted the dried hummingbird carcasses she acquired were illegally imported and smuggled into the United States from Mexico. Without a valid permit or authorization, Ms. Macias-Martinez offered the dried hummingbird carcasses for sale in her store.
She further admitted to both possessing and selling dozens of dried hummingbird carcasses of different species each of which are protected under the Migratory Bird Treaty Act.
Ms. Macias-Martinez faces up to 5 years in federal prison, a$250,000 fine, and restitution for her crimes. A sentencing date has not yet been set.
This case was investigated by the U.S. Fish and Wildlife Service, IRS-Criminal Investigations, and Homeland Security Investigations. Assistant U.S. Douglas Brasher is prosecuting this case.
Columbus man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Aaron B. Callahan, Jr., of Columbus, Ohio, has admitted to distributing methamphetamine, heroin, cocaine and cocaine, U.S. Attorney Bill Powell announced.
Callahan, also known as “A1,” age 30, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Callahan admitted to working with others to distribute methamphetamine, heroin, cocaine and cocaine base in Wetzel County, Ohio, Georgia, and the Southern District of West Virginia from 2016 to April 2018.
Callahan faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
The investigation was funded in part 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. Magistrate Judge James P. Mazzone presided.
Cleveland man accused of attempting to evade income taxRead the Press Release
U.S. Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned a four-count indictment charging Yaser Najjar, age 58, of Westlake with attempt to evade and defeat income tax.
According to the indictment, from 2009 to 2017, the defendant allegedly owned and operated a gas station on East 152nd Street in Cleveland. During this time, the defendant allegedly maintained a handwritten ledger documenting the gas station’s daily gross receipts, gasoline and convenience store sales and used an accountant to prepare his taxes for the calendar years 2009 through 2016. The indictment states that in connection with the preparation of these taxes, and as part of a scheme to evade income taxes due and owing, the defendant materially misrepresented and concealed a substantial portion of the gas station’s gross receipts to his accountant.
The defendant is accused of providing the accountant with the markup (profit) per gallon of gasoline and convenience store sales, which figures substantially underreported actual gross receipts as reflected in the handwritten ledger. It is alleged that the defendant did not provide the accountant with certain information related to actual gasoline and convenience store sales and concealed other sources of income, including ATM fees, vacuum machine receipts, air machine receipts, and car wash receipts.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant's sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Internal Revenue Service – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorney Megan R. Miller.
Charlotte Man Appears in Federal Court for Orchestrating Multiple Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – Dino Crnalic, 33, of Charlotte, appeared in federal court today following his arrest on Friday, August 21, 2020, for various fraud schemes that defrauded the U.S. Small Business Administration (SBA) and others of more than $800,000, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David S. Cayer presided over the hearing. The alleged fraud schemes involved Crnalic’s efforts to open a sushi restaurant and fitness center near Uptown Charlotte.
According to allegations contained in the indictment, from July 2017 through at least November 2019, Crnalic executed multiple fraudulent schemes and obtained more than $800,000 in SBA-backed loans from various federally insured financial institutions and from other entities. As alleged in the indictment, Crnalic secured the SBA-backed loans by submitting fraudulent documents, including fraudulent applications and fake supporting documentation, and by making various false statements. As part of his fraudulent schemes, the indictment alleges that Crnalic also stole the identity of at least one individual identified in court documents as C.P., and used various falsified documents in C.P.’s name, including a falsified United States Passport. According to the indictment, Crnalic fraudulently obtained more than $800,000 through his schemes, which he used for, among other things, personal expenses, including trips to various casinos, and attempted to obtain hundreds of thousands of dollars.
The indictment alleges that, during the relevant time period, Crnalic formed various business entities doing business in the Charlotte area that he controlled, including Suki Sushi LLC (Suki), Suki Akor LLC (Akor) and Surge Fitness Centers, LLC (Surge). As alleged in the indictment, by no later than the summer of 2016, Crnalic began the process of opening a new sushi restaurant in uptown Charlotte named Suki Akor. As part of that process, Crnalic applied for a loan with a financial institution in the name of Suki, through the SBA 7(a) Loan Guaranty Program. Under this program, the SBA does not loan money directly to small businesses, but provides guaranty to the lending financial institutions that the SBA will repay a percentage of a qualified loan in the event that a borrower defaults.
In applying for the loan with the financial institution for an SBA-backed loan, and obtaining the loan disbursements, the indictment alleges that Crnalic submitted numerous fraudulent documents and made various false statements, including that C.P. was a partner in Suki, when in fact C.P. had nothing to do with Suki or the Suki Akor restaurant. Crnalic also submitted fake invoices for construction costs at the restaurant, fraudulent operating agreements bearing C.P.’s forged signature, falsified bank statements, and fraudulent loan applications. Furthermore, as alleged in the indictment, Crnalic sent and received emails using an email address purportedly belonging to C.P., when in fact Crnalic controlled the email address.
The indictment alleges that, contrary to promises Crnalic made to the financial institution that provided the loan, Crnalic spent a portion of the loan proceeds to cover personal expenses, including to gamble, pay rent on an apartment in Uptown Charlotte, make a car payment on a luxury vehicle, and make purchases at restaurants and bars throughout North Carolina, Florida and in Las Vegas.
According to allegations in the indictment, on or around January 2018, Crnalic applied for an SBA line of credit in the name of Suki through the same financial institution. As with a previous loan application, Crnalic submitted fraudulent loan documents that contained, among other things, forged signatures for C.P., some of which had been notarized through the use of a falsified United States Passport in C.P’s name. Based on the fraudulent documentation, Crnalic was able to obtain an SBA-guaranteed line of credit loan through the financial institution. Contrary to his representations about how the proceeds would be used, Crnalic used a portion of the proceeds for personal use, including to fund a trip to Harrah’s casino in New Orleans.
As alleged in the indictment, in or around March 2018, Crnalic opened up a restaurant in uptown Charlotte named Suki Akor. By no later than May 2018, the restaurant closed, and it ceased operations permanently. At the time of its closing, the indictment alleges that Suki and Akor had hundreds of thousands of dollars in unpaid obligations in addition to the SBA-backed loans from the financial institution, most of which were never paid.
According to allegations in the indictment, by no later than the fall of 2018, Crnalic began the process of opening Surge, a new fitness center located near Uptown Charlotte, and applied for a $250,000 business loan with another financial institution. As with the previous restaurant scheme, Crnalic submitted numerous fraudulent documents and made various false statements while attempting to obtain the loan, including making false statements about the business and C.P.’s involvement. When the financial institution requested to meet with Crnalic and C.P. to discuss the loan further, the indictment alleges that Crnalic stopped pursuing the loan. Also in connection with his efforts to open Surge, Crnalic used C.P.’s identity and other falsified documents to finance $47,473 in fitness equipment through an equipment financing company headquartered in Alexandria, Minnesota. As alleged in the indictment, Surge ultimately defaulted on the lease agreement with the company.
Crnalic is charged with two counts of financial institution fraud, which carry a maximum sentence of 30 years in prison and a $1,000,000 fine per count; three counts of aggravated identity theft, which carry a mandatory sentence of two years in prison per count, consecutive to any other sentence imposed; concealment money laundering, which carries a maximum prison term of 20 years and a $500,000 fine; making a false statements to a bank in connection with a loan, which carries a maximum prison sentence of 30 years and a $1,000,000 fine; and wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine. The indictment also contains a forfeiture money judgment in the amount of at least $845,000, such amount constituting the fraudulent proceeds of the loan scheme.
The charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray credited the Charlotte Division of the FBI the SBA’s Office of the Inspector General for the investigation of this case.
Assistant U.S. Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
If you believe you are a victim or have information related to this case, please contact the FBI at 704-672-6100, and select option 2 when prompted.
Charlestown Man Arrested and Charged with Trafficking Firearms and Being a Felon in Possession of FirearmsRead the Press Release
BOSTON – A Charlestown man was arrested yesterday and charged in connection with trafficking in firearms obtained from a straw purchaser in New Hampshire.
Charles Baker, 44, was indicted on one count of dealing in firearms without a license and two counts of being a felon in possession of a firearm. Baker was arrested yesterday morning and made an initial appearance before Magistrate Judge Donald L. Cabell. A detention hearing is scheduled for Aug. 25, 2020.
As alleged in the indictment, Baker dealt in firearms until May 2019. Due to a prior conviction, Baker is prohibited from possessing firearms, and does not possess a federal license to sell firearms.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division made the announcement. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chapel Hill Risk Consultant Pleads Guilty to Tax Fraud and Firearm ChargesRead the Press Release
GREENSBORO, N.C. - A North Carolina businessman from Chapel Hill pleaded guilty today to filing a false tax return and being a felon in possession of a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court filed documents, Charles Agee Atkins controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management, LLC, Risk Assessment & Management, LLC, and Ram Omni, LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the Internal Revenue Service (IRS). Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several previous years. All told, Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12 gauge shotgun, which Atkins could not legally possess because of his prior convictions.
U.S. District Judge Catherine Eagles will set sentencing at a later date. At sentencing, Atkins faces a maximum sentence of three years in prison on the tax charge and ten years in prison on the felon in possession charge. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Tanner Kroeger, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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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California Executive Charged in College Admissions CaseRead the Press Release
BOSTON – A California insurance and private equity executive has agreed to plead guilty to charges in connection with using fraud and bribery to cheat on the ACT exam on behalf of his daughter.
Mark Hauser, 59, of Los Angeles, Calif., will plead guilty to an Information charging him with one count of conspiracy to commit mail fraud and honest services mail fraud. A plea hearing has not yet been scheduled by the Court.
According to the terms of Hauser’s plea agreement, the government will recommend a sentence of six months in prison, one year of supervised release, a fine of $40,000 and restitution. Hauser is the 29th parent to plead guilty and the 42nd person overall to plead guilty in this case.
As set forth in the charging document, Hauser agreed with William “Rick” Singer to pay an amount, ultimately totaling $40,000, to facilitate cheating on his daughter’s ACT exam. As part of the scheme, co-conspirator Mark Riddell traveled to Houston, Texas, where Hauser’s daughter took the exam, and purported to proctor the test. Instead, Riddell corrected the answers on the exam after she completed it. Two days later, Singer paid an intermediary, Martin Fox, $25,000, with the understanding that Fox would pass part of the payment on to Niki Williams, the test site administrator who allowed the cheating to occur. Singer also paid Riddell $10,000 for his role in the scheme.
Singer, Riddell and Fox have previously pleaded guilty and are cooperating with the government’s investigation. Williams has agreed to plead guilty. The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
California Couple in College Admissions Case Sentenced to PrisonRead the Press Release
BOSTON – Lori Loughlin and Mossimo Giannulli were sentenced to two months and five months in prison, respectively, in connection with securing the fraudulent admission of their two daughters to the University of Southern California (USC) as purported athletic recruits.
Loughlin, 56, of Los Angeles, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two months in prison, two years of supervised release during which time she must complete 100 hours of community service and ordered to pay a fine of $150,000. Giannulli, 57, was sentenced by Judge Gorton to five months in prison, two years of supervised release during which time he must complete 250 hours of community service and ordered to pay a fine of $250,000.
In May 2020, Loughlin entered a plea of guilty to one count of conspiracy to commit wire and mail fraud and Giannulli entered a plea of guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud.
In 2016, Loughlin and Giannulli agreed to have William “Rick” Singer facilitate their older daughter’s admission to USC as a purported crew recruit. In an August 2016 email, Singer told Loughlin and Giannulli that he would “create a coxswain profile.” Giannulli emailed Singer a picture of his older daughter purporting to row on an ergometer for inclusion in the falsified profile.
Giannulli further agreed to make purported charitable contributions totaling $250,000 as a quid pro quo to facilitate his daughter’s fraudulent admission to USC. Giannulli caused $50,000 to be paid to an account belong to the USC athletics administrator and paid $200,000 to Singer’s sham charity, Key Worldwide Foundation (KWF). Giannulli forwarded the invoice from KWF to his financial advisor writing: “Good news my daughter [ ] is in [U]SC . . . bad [news] is I had to work the system.”
In 2017, Loughlin and Giannulli agreed with Singer to facilitate their younger daughter’s admission to USC as a purported crew recruit even though she too had never participated in the sport. In July 2017, Singer emailed Giannulli and Loughlin telling them he would “build an athletic profile for USC” and noted that he would falsely present her as a coxswain. Shortly thereafter, Giannulli, copying Loughlin, emailed Singer a photograph of their younger daughter on an ergometer.
In November 2017, Singer emailed Loughlin and Giannulli a “likely letter” stating that their younger daughter had been provisionally admitted to USC as an athletic recruit. Loughlin, copying Giannulli, responded: “This is wonderful news!”
Thereafter, Giannulli caused $50,000 to be paid to a USC athletic account controlled by the USC athletic administrator and $200,000 to be paid to KWF. Giannulli forwarded the KWF invoice to his financial advisor, noting that it was “the last college ‘donation’ for” his daughter, and asking, “Can’t I write this off?”
Singer has pleaded guilty and is cooperating with the government’s investigation.
Loughlin and Giannulli are the 21st and 22nd parents to be sentenced in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man Going to Prison for Speeding Through Lewiston Border Crossing in A Stolen CarRead 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 Raison Holt, 25, of Buffalo, NY, who was convicted of high speed flight from a border checkpoint, was sentenced to serve 20 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on January 20, 2020, around 6:00 a.m., the defendant was driving a motor vehicle on the Lewiston-Queenstown Bridge, heading into Canada. Before entering Canada, Holt turned around in the middle of the bridge and drove toward the United States at the Lewiston Bridge Port of Entry in Lewiston. Despite numerous “stop” signs posted by U.S. Customs and Border Protection, the defendant failed to stop for federal inspection.
At a vehicle check point just past the initial inspection gate, a CBP officer verbally ordered Holt to stop, but the defendant ignored the command and accelerated on Interstate 190, and then onto the route 104 exit ramp. CBP vehicles gave chase in pursuit of the defendant’s speeding vehicle. Officers witnessed Holt lose control of his vehicle and crash into a ditch on the side of the road. The defendant attempted to run away but officers took the Holt into custody. It was subsequently determined that the vehicle the defendant was driving was stolen. Holt was turned over to the Buffalo Police Department for an outstanding arrest warrant for Grand Larceny and Unauthorized Use of a Motor Vehicle.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
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Buffalo Man Going to Prison for Robbing Four Banks, Attempting to Rob A Fifth Bank, and Threatening His Ex-GirlfriendRead 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 Vincent Gibson, 39, of Buffalo, NY, who was convicted of bank robbery, entering a bank with intent to commit a larceny, bank larceny, and interstate communication of a threat to injure a person, was sentenced to serve 60 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay restitution totaling $5,000 to M&T Bank.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that the defendant committed four bank robberies, and attempted to rob a fifth bank:
• On September 11, 2017, Gibson robbed the M&T Bank located at 1300 Jefferson Avenue in Buffalo;
• On September 13, 2017, the defendant attempted to rob the Key Bank at 592 Elmwood Avenue in Buffalo;
• On September 13, 2017, Gibson robbed the M&T Bank located at 130 Grant Street in Buffalo;
• On September 18, 2017, the defendant robbed the M&T Bank at 644 Bailey Avenue in Buffalo; and
• October 10, 2017, Gibson robbed the M&T Bank at 1877 Main Street in Buffalo.In addition, on October 14, 2018, a woman with whom Gibson has a child, was threatened by the defendant via text message after she ended their relationship. Those threats included statements such as, “I'm (sic) kill you and I mean it,” “I'm about to get your kids,” and “I be at your house you die.”
The sentencing is the result of an investigation by the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Broken Bow Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wendell Ray Caudle, age 51, of Broken Bow, Oklahoma entered a guilty plea to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The maximum possible penalty for Possession with Intent to Distribute Methamphetamine is imprisonment for a period of not more than 20 years and/or a fine of $1,000,000.00, and a term of supervised release to be determined by the Court. The maximum possible penalty for Possession of a Firearm in Furtherance of a Drug Trafficking Crime is imprisonment for a period of not less than 5 years consecutive to the sentence in Count One, and/or a fine of $250,000.00.
The Indictment alleged that from on or about December 24, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess, with intent to distribute, a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The Indictment further alleged that on or about December 24, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm, to wit: one (1) Derringer, .32 caliber revolver, Model D-32, serial number 286056, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Nalani Ching represented the United States at the change of plea hearing.
Bridgeport Tax Preparer Sentenced to Prison for Preparing Numerous False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VERONICA HUITZIL, 39, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to six months of imprisonment, followed by one year of supervised release, for preparing false tax returns for numerous clients.
According to court documents and statements made in court, Huitzil, who operated a tax return preparation practice in Bridgeport, assisted in the preparation and filing of more than 3,700 federal tax returns for the 2014 through 2018 tax years. Many of the filed tax returns claimed dependents who were not dependents, deducted thousands of dollars in business losses for fictitious businesses, and included inflated or fabricated medical expenses, charitable contributions and employee business expenses. The loss suffered by the IRS as a result of Huitzil’s fraudulent conduct totaled $898,665.
Judge Dooley ordered Huitzil to make full restitution.
On February 11, 2020, Huitzil pleaded guilty to one count of aiding and assisting the filing of a false tax return.
Huitzil, who is released on bond, is required to report to prison on November 30, 2020.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Berkeley County woman admits to firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kristal Rayne Montieth, of Martinsburg, West Virginia, has admitted to her role in a firearms trafficking conspiracy, U.S. Attorney Bill Powell announced.
Montieth, 24, pled guilty to one count of “False Statement During Purchase of Firearm.” Montieth purchased a firearm a 9mm pistol, making a false statement on the ATF in December 2019 in Berkeley County.
Montieth faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (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. Magistrate Judge Robert W. Trumble presided.
Bay Area Man Pleads Guilty to Operating Unlicensed Money Transmitting Business that Facilitated International Fraud SchemeRead the Press Release
LOS ANGELES – An Alameda County resident has pleaded guilty to operating an unlicensed money transmitting business that provided essential services to a fraudulent technical-support company, the Justice Department announced today.
Dapinderjeet Singh, 24, of Newark, California, pleaded guilty Thursday afternoon to a one-count felony information before United States District Judge Percy Anderson.
Singh admitted that he owned and operated Alpha Technologies LLC, which claimed to offer technical-support services to the public. In reality, Alpha was simply a conduit for funds to be transmitted from victims of a technical-support fraud scam to the scam’s perpetrators.
According to court documents, an India-based call center lied to victims about virus and hacking attacks on their computers and induced victims to send money to Alpha Technologies, purportedly to fix their computers. Singh, through Alpha Technologies, received victim proceeds and forwarded them to India-based scheme operators.
“This defendant provided an essential service to criminals behind an international fraud by providing what appeared to be a legitimate business, but in reality was simply a funnel to direct stolen funds to con artists,” said United States Attorney Nick Hanna. “This case demonstrates how we dismantle criminal organizations by targeting those who orchestrate the illegal conduct, as well as those who play key roles to facilitate the delivery of ill-gotten gains.”
“The defendant provided crucial assistance to foreign fraudsters who stole from consumers, including many elderly victims, under the guise of technical support,” said Ethan P. Davis, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Time and time again, the Civil Division’s Consumer Protection Branch has shown that both perpetrators and facilitators of elder fraud will be held accountable.”
“Mr. Singh admitted to his role in a scheme to defraud vulnerable computer users, including many elderly victims, who were led to believe their computers had been compromised and who paid for the purported expertise of others,” said John F. Bennett, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Computer users should avoid unsolicited offers they receive by phone or online and seek technical assistance from trusted sources only, particularly when demands for cash are being made.”
“Fraud schemes that cheat vulnerable consumers, especially the elderly, will not be tolerated,” said Makan Delrahim, Assistant Attorney General for the Justice Department’s Antitrust Division. “The Antitrust Division is pleased to lend the time and talent of its prosecutors to the Elder Justice Initiative.”
Singh admitted that he worked with India-based scheme operators from late 2016 until February 2018. In addition to opening Alpha Technologies as a corporate entity, Singh maintained post office boxes that were used to receive payments sent by victims, and he forwarded proceeds to scheme operators in India and elsewhere. Through Alpha, Singh engaged in a money transmitting business that was neither licensed by the State of California, nor registered with the Financial Crimes Enforcement Network or the U.S. Department of Treasury.
Singh is scheduled to be sentenced by Judge Anderson on November 2.
Three other individuals previously have been charged in this investigation. In 2019, Indian citizens Aman Mehndiratta and Aman Kheira were charged with wire fraud in connection with the scheme. The criminal complaint alleges that Mehndiratta and Kheira recruited another California resident – Parmjit Brar – to serve as a payment gateway for the scheme. According to the criminal complaint, many victims lost hundreds of dollars, while some elderly victims lost hundreds of thousands of dollars. In 2019, Parmjit Brar pleaded guilty to conspiracy to commit wire fraud, and he is scheduled to be sentenced on September 28 by Judge Anderson.
This matter was investigated by the FBI.
The prosecution is being handled by Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section; DOJ Trial Attorney Justin Murphy of the Antitrust Division; and Senior Counsel Richard Goldberg of the Civil Division’s Consumer Protection Branch.
BREAKING NEWS: U.S. Marshals Apprehend Kymoni Davis in DetroitRead the Press Release
Davis was Indicted by Federal Grand Jury in January
CHARLESTON, W.Va. – U. S. Marshals have apprehended Kymoni Davis, also known as “Money,” in Detroit, announced United States Attorney Mike Stuart. Davis, 31, was charged by federal indictment in January 2020 with being a felon in possession of ammunition. He has remained a fugitive since his indictment. The indictment alleges that on January 1, 2020, Davis possessed 9mm ammunition. According to the indictment, Davis has three prior felony convictions in state court in Michigan.
Davis also faces state felony charges in Cabell County, in connection with a New Year’s Day shooting in Huntington at the Kulture Hookah Bar.
“Great work by the Detroit Police Department and the U.S. Marshals Service,” said United States Attorney Mike Stuart. “The people of Huntington can rest assured that my team is working closely with our federal, state and local law enforcement partners and the Cabell County Prosecutor’s Office to reduce violent crime in Huntington and hold trigger-pullers accountable.”
“ATF is committed to our law enforcement partnerships whose good work today resulted in the arrest of a fugitive wanted for violent crimes,” said R. Shawn Morrow, ATF Louisville Special Agent in Charge. “Our streets are safer due to these partnerships.”
Davis faces up to 10 years in prison, if convicted.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are conducting the investigation. Assistant United States Attorney Greg McVey is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
Please note: An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00018.
Follow us on Twitter: SDWVNews and USAttyStuart
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Assistant Attorney General Beth A. Williams Commends the Administrative Office of the U.S. Courts for New Website Enhancing Access to JusticeRead the Press Release
Assistant Attorney General Beth A. Williams issued the following statement today on the efforts by the Administrative Office of the U.S. Courts to enhance public and litigant access to electronic court records. This year, as part of its access to justice efforts, the Office of Legal Policy at the Department of Justice partnered with the Administrative Office of the U.S. Courts to improve transparency regarding fee exemptions for access to court records in the Public Access to Court Electronic Records (PACER) system. As part of that partnership, the Administrative Office of the U.S. Courts announced an enhanced PACER website that makes it easier for indigent individuals, as well as pro bono attorneys, academic researchers, and non-profit organizations, to understand how they may access court records for free.
“The Department of Justice is pleased that the Administrative Office of the U.S. Courts has improved its PACER website to better inform indigent individuals that they may access court records for free, and to make it easier for them to do so. The new website promotes access to justice through increased accessibility and transparency. Public records should be available to all, irrespective of wealth or status. We look forward to continuing our partnership with the Administrative Office to eliminate barriers that may prevent individuals from understanding and exercising their rights.”
Approximately Two Million Dollars Seized After Fugitive’s ArrestRead the Press Release
SAN JUAN, Puerto Rico – On August 20, 2020, Elvin O. Cruz-Verges, a/k/a “Mellao,” was arrested in a joint law enforcement operation by the FBI, Police of Puerto Rico San Juan Strike Force, and the U.S. Marshals, in the municipality of Aguas Buenas, PR. Defendant Cruz-Verges was a fugitive since February of 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
After the arrest, law enforcement authorities requested a search warrant for a residence where the accused was living, and seized approximately two million dollars in cash, 88 kilograms of cocaine, 3.8 kilograms of heroin, and other items.
Defendant Cruz-Verges was a leader in the drug trafficking organization known as “Las FARC,” (Las Fuerzas Armadas Revolucionarias de Cantera). “Las FARC” operated out of Barrio Obrero Ward, including but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about the year 2006. The goal of “Las FARC” was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
Cruz-Verges had been previously charged in a seven-count indictment for conspiracy to possess with intent to distribute narcotics, aiding and abetting in the possession and distribution of heroin, crack, cocaine, and marihuana, and possession of a firearm in furtherance of drug trafficking. The charged drug conspiracy included 75 defendants.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa S. Zapata-Valladares are in charge of the prosecution of the case. If convicted the defendant faces a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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26 Charged in Wiretap Investigation into Drug Trafficking and Gun Violence by Street Gang “Shot Boyz” in Wilkinsburg and East HillsRead the Press Release
PITTSBURGH, PA - A federal grand jury in Pittsburgh has returned two separate, but related, Indictments following a five-month Title III wiretap investigation into drug trafficking and violence in and around Wilkinsburg and the East Hills neighborhood in Pittsburgh, United States Attorney Scott Brady announced today. The Indictments charge 26 residents of western Pennsylvania with narcotics trafficking and firearms violations.
“Every family in Pittsburgh deserves to live, work and raise their children in a community free from violence,” said United States Attorney Scott Brady. “For far too long, the people of the East End, Homewood and Wilkinsburg have suffered from disproportionate numbers of homicides, shootings and dispatches for shots fired. Our goal remains the same: to make Pittsburgh the safest city in America. In order to do so, we must prosecute and remove the most violent criminals from these neighborhoods. And that is what we have done. The Shot Boyz gang is done.”
“The Shot Boyz gang has terrorized our community with violence and drug trafficking for long enough,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “The community will not be handcuffed by fear of leaving their homes, getting attacked, having their children hurt or worse, being killed. These arrests are the first step to making the community safer from individuals intent on harming their neighbors. I commend the work of the Pittsburgh Safe Streets Task Force and our numerous other local and state partners for working diligently to bring those solely focused on illegal activity to justice.”
“ATF is committed to working with our local, state and federal partners to target those responsible for drug trafficking and gun violence in our communities,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “This coordinated effort between ATF and our partners demonstrates our continued dedication to identify, target, and investigate violent criminals who lessen the quality of life in our neighborhoods.”
“The people of Pittsburgh and western Pennsylvania deserve to live in drug-free and violence-free neighborhoods,” Pittsburgh Police Chief Scott Schubert said. “This coordinated effort illustrates the unwavering commitment of the Pittsburgh Bureau of Police and our partner law enforcement agencies to guard, protect and serve our communities.”
“It was an honor and privilege to work so closely with such professionals in this case,” added Latrobe Police Chief John Sleasman. “The amount of heroin and fentanyl coming into Westmoreland County and Latrobe will be dramatically reduced as will the amount of senseless overdoses in our area. I want to personally thank all of the case agents, local agents and local officers who worked tirelessly on this distribution case. The citizens of Latrobe are forever grateful.”
The first Indictment, returned on August 19 and unsealed today, names the following 25 individuals as defendants:
- Tyric Allen, 25, of Pittsburgh, Pennsylvania;
- Phillip Ahmad-Revis, 20, of Pittsburgh, Pennsylvania;
- Djuan Beasley, 20, of Swissvale, Pennsylvania;
- Marcus Best, 27, of Munhall, Pennsylvania;
- Davon Cleveland, 20, of Pittsburgh, Pennsylvania;
- Donshae Dunning, 32, of McKeesport, Pennsylvania;
- Dominic Fields, 33, of McKeesport, Pennsylvania;
- Donald Hantz, 37, of Latrobe, Pennsylvania;
- Taire Hardeman, 20, of Wilkinsburg, Pennsylvania;
- Natrell Jeffries, 21, of Wilkinsburg, Pennsylvania;
- Mandee Kozar, 34, of Latrobe, Pennsylvania;
- Seth Lindsey, 26, of Verona, Pennsylvania;
- Davon Loveings, 29, of Pittsburgh, Pennsylvania;
- Bryan Matthews, 31, of Penn Hills, Pennsylvania;
- Tayvon Mattox, 20, of Pittsburgh, Pennsylvania;
- Barbara McClure, 46, of Latrobe, Pennsylvania;
- Jerome Pleasant-Simpson, 25, of Pittsburgh, Pennsylvania;
- Parris Scott, 20, of Pittsburgh, Pennsylvania;
- Nikki Sherback, 35, of Latrobe, Pennsylvania;
- Robert Smiley, 30, of Pittsburgh, Pennsylvania;
- Patrick Smith, 36, of Latrobe, Pennsylvania;
- Jeffrey Tumer, 29, of Monroeville, Pennsylvania;
- Garrett Weaver, 38, of Monroeville, Pennsylvania;
- Jeremy Winfield, 25, of Pittsburgh, Pennsylvania; and
- Marquille Wright, 25, of Munhall, Pennsylvania.
According to the Indictment, the named defendants are collectively the members and associates of a group of drug traffickers identifying themselves as “Shot Boyz,” “Drive Boyz,” and/or “OTS” (collectively, the “Shot Boyz”). During the periods of time set forth in the Indictment, the Shot Boyz sold large quantities of fentanyl in the City of Pittsburgh and the surrounding neighborhoods, including East Hills, Homewood, and Wilkinsburg. Associates of the Shot Boyz also distributed fentanyl in Latrobe, Pennsylvania. In order to further their drug trafficking operation, and to protect themselves, their drugs, and their proceeds from drug trafficking, members of the Shot Boyz obtained and possessed firearms.
The Indictment alleges that the defendants conspired to possess with intent to distribute and distribute at least 400 grams of fentanyl from March 2019 through August 2020. The Indictment further alleges individual drug trafficking charges against Tyric Allen, Phillip Ahmad-Revis, and Davon Loveings, as well as individual firearms violations against Allen and Loveings.
The second Indictment, returned on August 19 and also unsealed today, charges Keith Redman, 22, of Braddock, Pennsylvania, with one count of possessing a firearm and ammunition on May 21, 2020, after being convicted of a crime punishable by more than a year in prison, namely, aggravated assault. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
For all defendants associated with the first Indictment, the law provides for a maximum total sentence of up to life imprisonment, a fine of not more than $10,000,000, or both. As to Keith Redman, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The FBI Greater Pittsburgh Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Bureau of Police, the Latrobe Police Department, the Allegheny County Sheriff's Office, the Munhall Police Department, the Pennsylvania Office of the Attorney General, Allegheny County Probation, the Wilkinsburg Police Department, the Monroeville Police Department, and the Penn Hills Police Department conducted the investigation leading to the Indictments in this case.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Thursday 20 August 2020
Woman Who Faked Cancer to Delay Prison Date Sentenced to 5 More YearsRead the Press Release
A Denison, Texas woman who faked stomach cancer in order to delay a prison sentence has been sentenced to an additional five years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kassie Bond Carpenter, 42, pleaded guilty in February to obstruction of justice. She was sentenced Thursday afternoon by U.S. District Judge Jane J. Boyle.
In plea papers, Ms. Carpenter – who’d already been sentenced to 41 months in federal prison for wire fraud – admitted she attempted to delay her prison reporting date by submitting to the Court at least nine sets of forged medical records indicating she had been diagnosed and was receiving treatment for adenocarcinoma, a cancer that begins in the glandular cells that line the stomach and other organs.
Ms. Carpenter “is now receiving radiation therapy for her stomach cancer,” her attorney wrote in an motion asking to delay her reporting date, noting that the defendant had access to only some of the medical records related to her treatment.
“Without proper treatment, [her] cancer will turn malignant and metastasize,” he added.
Based on the sham medical records, the Court granted multiple extensions, delaying her prison reporting date from Aug. 22, 2017 to Jan. 30, 2018, then to Aug. 7, 2018, then to Nov. 6, 2018, then to Jan. 29, 2019, and finally to April 29, 2019.
On Jan. 29, 2019, her defense attorney moved to withdraw from the case, stating that he believed he had been “an unwitting tool in a fraud on this Court” due to potential deceit by his client. Two days later, U.S. District Judge Sidney Fitzwater vacated his order extending Ms. Carpenter’s reporting date, and ordered her arrested.
The 60-month sentence handed down today will be served consecutive to the 41-month sentence handed down by Judge Fitzwater in the wire fraud case.
In that case, Ms. Carpenter pleaded guilty to embezzling money from a property management company where she worked. She admitted she fraudulently issued at least $133,000 in checks payable to herself, $157,000 in checks payable to a fictitious company she created, and used company money to pay off personal accounts with JC Penny, DirectTV, TXU Energy, and Verizon, resulting in more than $372,000 of losses to the property management company.
The Federal Bureau of Investigation’s Dallas Field Office investigated both the wire fraud case and the obstruction case. Assistant U.S. Attorney Christopher Stokes prosecuted both cases.
Upshur County Couple Indicted for Identity Theft in Connection with CARES Act Economic Impact PaymentsRead the Press Release
TYLER, Texas – A couple from Gilmer, Texas has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Dalton Brewer and Emilee Fenton, both 24, were indicted by a federal grand jury on August 19, 2020 and charged with conspiracy to unlawfully transfer, possess, and use a means of identification. Fenton was also charged with theft of government money and aggravated identity theft.
According to the indictment, from at least November 2019 through June 2020, Brewer and Fenton conspired to possess and use the means of identification of other persons, including names, Social Security numbers, and dates of birth, in connection with the theft of government money, aggravated identity theft, wire fraud, theft of mail, and fraudulent use or possession of identifying information. Fenton was also charged with theft of government money and aggravated identity theft for her role in obtaining two Economic Impact Payments (EIPs) using the means of identification of other persons.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old. Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.
“Fraudsters engaged in identity theft to steal taxpayer refunds have now turned their attention to stealing Economic Impact Payments,” said U.S. Attorney Stephen J. Cox. “We are committed to fighting fraud and criminal activity relating to the COVID-19 pandemic – this is a top priority for the Eastern District of Texas – and, along with our law enforcement partners, we will use all available tools to pursue wrongdoers who seek to exploit the crisis.”
“It’s disheartening to see individuals and communities already facing challenges related to COVID-19 be targeted with crimes like these,” said Ketty Larco, Acting Inspector in Charge of the Fort Worth Division of the U.S. Postal Inspection Service. “Protecting the U.S. Mail and American public are priorities for Postal Inspectors however, and these arrests are a product of that commitment. The Postal Inspection Service appreciates the efforts of all our federal and local partners who helped bring this crime spree to an end.”
“The Treasury Inspector General for Tax Administration (TIGTA), and its law enforcement partners, will aggressively pursue those who endeavor to steal Economic Impact Payments afforded to the American public under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts of the IRS Criminal Investigation Division and the U.S. Postal Inspection Service in this investigation.”
“IRS Criminal Investigation continues to pursue identity thieves who view the American taxpayer as an easy target,” said Acting Assistant Special Agent in Charge Marcus Henderson of the Dallas Field Office. “Today’s indictments highlight our commitment to protecting the very people the Economic Impact Payments were intended to benefit during this global crisis.”
If convicted, Brewer and Fenton face up to 15 years in federal prison. A grand jury indictment is not evidence of guilt.
This case is being investigated by the United States Postal Inspection Service (USPIS), Treasury Inspector General for Tax Administration (TIGTA), and the Internal Revenue Service-Criminal Investigations (IRS-CI) and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
United States Receives $1.1 Million to Settle Civil Claims with Defense Contractor Accused of FraudRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces that the United States has settled allegations that Islands Mechanical Contractor, Inc. (IMC) improperly submitted claims for standby or delay costs associated with construction contracts at Naval Station Guantanamo Bay.
IMC is a defense contractor that provides construction services at Naval Station Guantanamo Bay. IMC agreed to construct a facility at Guantanamo Bay, but delays occurred. IMC submitted requests for equitable adjustment for additional stand-by and delay costs, but the United States alleges that IMC’s claims for equipment and labor costs were inflated and based on misrepresented, incomplete, and insufficient data. The Defense Contract Audit Agency (DCAA) determined that the claimed equipment was not needed for the relevant project, the actual age of the equipment did not match the claimed equipment age, and that the equipment was diverted to other projects instead of being placed on stand-by. Similarly, the DCAA found that the workers claimed to be on stand-by were reallocated to other projects, and the payroll records supporting their standby status were falsified.
“Protecting the integrity of services provided to our armed forces is a high priority for our office,” said U.S. Attorney Maria Chapa Lopez. “We will work vigorously to ensure that defense contractors fulfill their contractual obligations and do not inflate claims for payments so that our military can accomplish its mission.”
NCIS Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office said, “Fraud is not a victimless crime, and puts our Sailors and Marines at greater risk. The American taxpayers are also victims as the blatant and wrongful misuse of American taxpayer dollars not only erodes the public trust but also diminishes the Department of Navy’s ability to obtain the best technology, services, and equipment for our brave military members.”
This case was investigated by the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and Assistant United States Attorney Shea Gibbons.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney and the Federal Bureau of Investigation Warn Iowans about the Dangers of Counterfeit Adderall PillsRead the Press Release
United States Attorney Peter E. Deegan, Jr. and Federal Bureau of Investigation (FBI) Special Agent in Charge Kristi Johnson today highlighted the danger that counterfeit Adderall pills pose to those who may attempt to purchase prescription stimulants on the street. Drug trafficking organizations are using counterfeit Adderall pills containing crystal methamphetamine to target those who may be addicted to prescription drugs but who otherwise would not use methamphetamine. These pills increase the health risk and addiction rates of prescription stimulant abusers in the United States.
Following an investigation by the FBI, in February 2020 three individuals pleaded guilty to drug distribution conspiracy charges in relation to their involvement with a drug vendor who sold counterfeit Adderall pills. Although the pills were marketed as “100% authentic” Adderall pills, the pills tested positive for methamphetamine, according to DEA laboratory testing.
United States Attorney Deegan stated, “Drug traffickers are trying to deceive people across the country into purchasing, using, and becoming addicted to methamphetamine. They will do whatever they have to do in order to make money at the expense of the health and safety of those buying these fake pills. The public must be aware that while these pills may look like prescription drugs, they actually contain a deadly controlled substance.”
Special Agent in Charge Kristi Johnson said, “The safety of our community is the priority of the FBI. We are committed to stopping deadly drugs before they make it to the streets. We also must remind the public that medications not obtained by legitimate means can result in severe health risks and even death. I would ask that you to share this potentially life-saving message with your loved ones.”
These counterfeit pills are also dangerous because users who believe that they are purchasing Adderall will assume the pills are safe because they appear to be quality-controlled products of a heavily regulated prescription drug industry. Instead, users may be putting powerful crystal methamphetamine into their bodies, which leads to increased addiction rates and health risks. In July and August 2019, one vendor of counterfeit Adderall pills containing methamphetamine attempted to attract resellers of his pills by posting on a darknet website “your customers body can’t tell the difference if it is amphetamine or meth.”
Unless prescription drugs are obtained from an authorized medical provider or pharmacy, the public should not consume or even handle these pills. All Iowans are urged to only use prescription drugs prescribed to them by legitimate health care providers.
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Two Indicted for Conspiracy to Commit Murder-for-Hire and Murder-for-HireRead the Press Release
St. Louis – A federal grand jury indicted James Timothy Norman, 41, of Jackson, Mississippi, and Terica Ellis, 36, of Memphis, Tennessee, for the offenses of conspiracy to commit murder-for-hire and murder-for-hire, resulting in death. The grand jury also charged Norman and Waiel Rebhi Yaghnam, 42, of St. Louis, Missouri, with one count of conspiracy to commit wire and mail fraud. Federal complaints and arrests warrants were previously issued for Norman and Ellis, who were both arrested earlier this week.
According to the indictment and other court documents, Norman conspired with Terica Ellis and others to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a $450,000 life insurance policy on his 20-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary. In the days leading up to Montgomery’s murder, Ellis, an exotic dancer residing in Memphis, Tennessee, communicated with Montgomery and informed him that she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location for the purpose of luring Montgomery outside. Immediately after learning Montgomery’s location, Ellis placed a call to Norman. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman, and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis deposited over $9,000 in cash into various bank accounts. On March 18, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
The indictment alleges that prior to Montgomery’s murder, Norman conspired with Waiel Yaghnam, his insurance agent, to fraudulently obtain a life insurance policy on Montgomery. Beginning in October of 2014, Norman and Yaghnam submitted three separate life insurance applications, all containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background. In the life insurance policy that ultimately issued, Norman obtained a $200,000 policy, as well as $200,000 accidental death rider that would pay out in the event that Montgomery died of something other than natural causes, and a $50,000 10 year-term rider that would pay out if Montgomery died within 10 years of the policy’s issuance in 2014.
The arrests of Norman and Ellis are part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The St. Louis Metropolitan Police Department Homicide Section and Federal Bureau of Investigation are investigating these current charges.
If convicted of the conspiracy to commit murder-for-hire or murder-for-hire, resulting in death, the penalty is life imprisonment or death and a fine of $250,000; and conspiracy to commit wire and mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, the charge in an indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
Troy Man Sentenced to 63 Months for Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – Hakeem Mauzon, age 29, of Troy, New York, was sentenced on Tuesday to 63 months in prison for distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Mauzon was also ordered by Chief United States District Judge Glenn T. Suddaby to serve a period of 4 years of supervised release following his term of incarceration, and to forfeit to the government $4,560 in proceeds from his drug trafficking activity.
Mauzon pled guilty to distributing over 28 grams of crack cocaine in November 2018 in Troy. At his guilty plea, Mauzon admitted to selling crack cocaine on three other occasions in 2018 in Troy, for a total of approximately 200 grams among the four sales.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Three Men Charged with COVID-19 Related Unemployment FraudRead the Press Release
Alvin Lavon Rex, age 61, of Schaller, Iowa, Jerry Johnson, age 54, of Webster City, Iowa, and Brian Whorton, age 54, of Marion, Iowa, were all charged with COVID-19 related fraud offenses. The charges are contained in separate complaints and an indictment recently filed in the United States District Court for the Northern District of Iowa in Cedar Rapids and Sioux City.
The complaints and indictment separately allege that each of the three men fraudulently obtained unemployment benefits related to COVID-19 relief funds to which they were not entitled. Rex and Johnson are charged with mail fraud and Whorton is charged with wire fraud.
If convicted each man faces up to 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. All three men have appeared in federal court and were released without bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
These cases are being prosecuted by multiple Assistant United States Attorneys and investigated by the Federal Bureau of Investigation, the United States Department of Labor - Office of Inspector General, the United States Postal Inspection Service, and the Storm Lake Police Department. Assisting in the investigation are the Sac County Sheriff’s Office, the State of Arizona’s Unemployment Insurance Benefit Fraud Investigation Unit - Office of Inspector General, the State of Massachusetts’s Program Integrity Unit - Department of Unemployment Assistance, and the State of Ohio’s Benefit Payment Fraud Control Unit - Department of Job and Family Services.
Rooting out COVID-19 fraud is a priority of the Department of Justice. On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits.
These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-4062, 20-CR-3027, and 20-CR-0064.
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Three Enter Pleas in Scheme to Import Rx Drugs and Fraudulent Credit Card Payment Processing SchemeRead the Press Release
PITTSBURGH – Three residents of New York, pleaded guilty in recent weeks in federal court to a charge of conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced today. The charges are in connection with a complex scheme related to the importation into the United States of prescription drugs from China, Russia and India, and the fraudulent credit card payment processing associated with those sales to consumers in the United States.
Devan Abrams, age 39, of New York City, New York, Azad Khizgilov, age 46, of Staten Island, New York, and Roman Shaulov, age 53, of Brooklyn, New York, pleaded guilty to one count before Senior United States District Judge David S. Cercone. In related cases, Garri Shihman, age 49, of Parkland, Florida, and Gennady Nudelman, age 45, of Delray Beach, Florida, pled guilty and were sentenced in 2019.
In connection with the various court proceedings, the court was advised that this complex matter has two primary components. The first is related to the illegal on-line sale of pharmaceutical drugs to U.S. consumers from a host of websites located primarily in India, China and Russia. The second component relates to the fraudulent processing of credit card payments for these pharmaceutical drugs and other products. The five defendants referred to in this press release are only directly associated with the second component component. The fraudulent activity, which occurred between 2013 and 2017, involved the use of a series of misrepresentations that cause the credit card companies to process credit card transactions for illegally imported pharmaceutical drugs. The credit card companies have policies that preclude the use of their products and services to pay for illegally imported pharmaceutical drugs, and they have various internal controls designed to prevent the use of their products and services for such activities. In the scheme orchestrated by the defendants, they defrauded the credit card companies into processing tens of millions of dollars in payments for illegally imported pharmaceutical drugs through a series front companies, fake websites, fraudulent merchant applications, and other fraudulent activity.
The fraud involved the establishment of hundreds of front companies that were established by these defendants any others, and fake web sites associated with those companies that falsely indicated that they were selling legitimate products. Together with the incorporation paperwork for the front companies and the fake website, the defendants submitted a merchant application to the credit card companies under the name of recruited accomplices. Once approved by the credit card companies, the defendants then arranged for the merchant accounts to process payments for the illegally imported pharmaceutical drugs.
The defendants also arranged for a number of employees to serve on a telephone bank that received telephone calls from customers questioning charges on their credit card statements. That was necessary because the credit card statements reflected purchases from the front companies and not the internet companies selling the illegally imported pharmaceutical drugs. In this way, the telephone bank prevented the customers from reporting the fraud to the credit card companies.
Federal agents began to undercover the fraud through controlled purchases from websites and search warrants at various locations. Abrams, Khizgilov, and Shihman operated out of offices located at 1812 Bath Avenue, Brooklyn, NY, and later, Abrams, Khizgilov and Shaulov operated out of offices located at 1706 Crospey Avenue, Brooklyn, NY. Search warrants executed at both of those locations led to evidence supporting the charges.
Judge Cercone scheduled sentencing for Devan Abrams on December 15, 2020, for Azad Khizgilov on December 8, 2020, and for Roman Shaulov on December 17, 2020. The law provides for a total maximum sentence of not more than 30 years in prison, a fine of $1,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Garri Shihman was sentenced in federal court to 45 months’ imprisonment on July 26, 2019. Gennady Nudelman was sentenced in federal court to 32 months’ imprisonment on May 8, 2019. Shihman and Nudelman are currently serving their sentences at a Bureau of Prisons facility.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation that led to the prosecutions of Abrams, Khizgilov, Shaulov, Shihman and Nudelman.
Texas Rapper Charged in Narcotics and Prescription Opioid ConspiracyRead the Press Release
Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, Texas, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond, Texas; Leon Covin, 47, Katy, Texas; and Toni Maria Nalintya, 48, Pearland, Texas.
The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. CDT tomorrow. The others made their appearances earlier this week.
A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018 to 2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston.
The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety and Drug Enforcement Administration. Trial Attorney Devon Helfmeyer with the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jason Corley are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Texas Man Indicted on Charge of Possession of 30 Kilograms of CocaineRead the Press Release
BOSTON – A Texas man was indicted yesterday by a federal grand jury in connection with possession of 30 kilograms of cocaine.
Javier Robledo Perez, 36, of Houston, Texas, was indicted on one count of possession with intent to distribute five kilograms or more of cocaine. Perez was previously charged by criminal complaint and arrested on May 24, 2020.
As alleged in charging documents, on May 24, 2020, following a traffic stop in Charlton, law enforcement officers seized 30 brick-shaped objects suspected to be kilograms of cocaine from the cab of the semi-truck Perez was driving. Agents conducted field tests on two of the brick-shaped objects, both of which tested positive for the presence of cocaine.
The charge of possession with intent to distribute of five kilograms or more of cocaine carries a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement from United States Attorney Andrew E. LellingRead the Press Release
“After extensive deliberations, including consideration of the views of the many victims in this case, the Justice Department has decided to ask the Supreme Court to review the First Circuit Court of Appeals’ decision to reverse the death penalty, in an effort to preserve the jury’s verdict sentencing Dzhokhar Tsarnaev to death. Our hope is that this will result in reinstatement of the original sentence and avoid a retrial of the death penalty phase.
First, we respectfully disagree with the merits of the appellate court’s decision. Second, Dzhokhar Tsarnaev is an ideologically driven mass killer who, with his brother, detonated at the finish line of the Boston Marathon two home-made bombs specifically designed to rip people apart, killing three – a young boy and two women – maiming seventeen, and injuring hundreds; shot a police officer three times in the head so they could steal his sidearm; and exchanged thousands of rounds with police officers in Watertown. I have heard, and respect, the voices calling for the Department to drop its pursuit of the death penalty in this case. But the severity of Tsarnaev’s crimes place him in that narrow category of criminals for whom death is a proportional punishment. Some have argued that executing Tsarnaev will not deter others from pursuing similar crimes. But, ultimately, this decision is not about deterrence. It is about justice.”
St. Thomas Man Sentenced to Prison for Smuggling 23 Kilos of Cocaine Through the Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Shahime Ludvig, Jr., 22, of St. Thomas, was sentenced today on his conviction of possessing cocaine with intent to distribute, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Robert A. Molloy, sentenced Ludvig to 33 months incarceration, five years supervised release, and ordered him to forfeit $1,991 to the United States, and pay a $100 special assessment.
According to court records, on September 24, 2018, Ludvig appeared at the Cyril E. King Airport with approximately 23 kilos of cocaine in his luggage. He checked the luggage and proceeded to the departure lounge to board a Delta Airlines flight to Atlanta Georgia. During a routine screening, Customs and Border Protection (CBP) discovered the cocaine. CBP located Ludvig at the departure lounge and detained him. Agents from Homeland Security Investigations (HSI) arrived at the airport and placed Ludvig under arrest. Ludvig ultimately pleaded guilty to attempting to smuggle the cocaine.
This case was investigated by Homeland Security Investigations and Customs and Border Protection. It was prosecuted by Assistant United States Attorney Everard E. Potter.
St. Paul Felon Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging MIKLOS TERREL DATES, JR., 25, with one count of possession of a firearm by a felon. DATES, who was taken into custody earlier today, made his initial appearance before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota. DATES was ordered to remain in custody pending a formal detention and arraignment hearing, which is currently scheduled for August 24, 2020 at 4:30 pm, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul.
According to allegations in the indictment, on June 19, 2020, DATES possessed a Diamondback Model DB9 9mm semiautomatic pistol. Because DATES has prior felony convictions in Ramsey County, Blue Earth County, and U.S. District Court for the District of Minnesota, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the St. Paul Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MIKLOS TERREL DATES, JR., 25
St. Paul, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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Springfield Man Involved in Nightclub Shooting Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for illegally possessing a firearm.
Keyshaun Isaiah Jackson, 23, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Aug. 19, to 15 years in federal prison without parole. Jackson was sentenced as an armed career criminal due to his prior felony convictions.
On July 24, 2018, Jackson pleaded guilty to being a felon in possession of a firearm.
According to court documents, Jackson was involved in a shooting at Martha’s Vineyard night club, 219 West Olive, Springfield, Mo., on April 11, 2018. Jackson and another individual exchanged gunfire in the parking lot as pedestrians in the parking lot began running away or taking cover. Both men ran from the scene when police officers arrived.
Officers found eight .40-caliber spent shell casings in the parking lot and noted a bullet hole in the front driver’s side fender of Jackson’s black 2010 Nissan Maxima, where he had been sitting when the shooting began. Officers also found a Glock .40-caliber semi-automatic pistol inside the car.
The next day, April 12, 2018, police officers responded to a disturbance at a Springfield residence. Jackson had barricaded himself inside for some time, but eventually left the residence and was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jackson has prior felony convictions for forgery, receiving stolen property, burglary, resisting/interfering with arrest, and was on probation at the time of this federal offense.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney William L. Meiners. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.