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1 October 2020
Tuscaloosa Man Sentenced to 600 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Tuscaloosa man for sexually exploiting two young children, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
Chief U.S. District Judge L. Scott Coogler sentenced MATTHEW MILLER, 32, to 7,200 months in prison for producing child pornography. Miller was charged in a 20-count indictment for enticing two children under the age of 5 to engage in sexual explicit conduct for the purpose of producing a visual production of such conduct. A search warrant was obtained for the defendant’s electronic devices. The forensic examination of those devices revealed 102 pornographic images that the defendant had produced of the children. Miller pled guilty to these charges in October 2019.
“Child predators seek out and victimize those that are the most innocent and vulnerable - children,” Escalona said. “The sentences imposed today and yesterday in local child exploitation cases reflect the commitment of law enforcement in this district to prosecuting to the fullest extent of the law those who commit crimes against children.”
“The crimes for which Miller has admitted guilt are not only disturbing, they are sickening, and his actions robbed these children of their childhood,” Sharp said. “I am proud of the work of the FBI on this case, and I applaud the sentence handed down today, as Miller will spend the rest of his natural life behind prison bars.”
FBI Child Exploitation and Human Trafficking Task Force investigated the case, along with the Tuscaloosa County Sheriff’s Office Violent Crime Unit. Assistant U.S. Attorney R. Leann White prosecuted the case.
Towing Company Owner Charged with Tax Fraud and Evading Cash Transaction ReportingRead the Press Release
BOSTON –The owner of a Revere towing company was charged yesterday with engaging in an under-the-table payroll fraud scheme that defrauded the government more than $3.3 million.
Gennaro Angiulo, 49, of Nahant and Saugus, was charged by Information with one count of willful failure to collect and pay over taxes and one count of evading cash transaction reporting requirements.
For tax years 2014 through at least 2017, Angiulo allegedly paid a portion of the wages to employees of his company, GJ Towing, in cash “under the table.” In doing so, Anguilo did not collect, account for or pay over to the IRS required withholding and FICA taxes. The cash payments to employees were funded, at least in part, by cashing checks from clients of GJ Towing and other third parties in groups totaling not more than $10,000 in a single day.
The charge of willful failure to collect and pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of evading cash transaction reporting requirements provides for a sentence of up to 10 years in prison, up to five years of supervised release, a fine of $500,000 and forfeiture. Angiulo is also required to pay restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Tohono O'odham Nation Member Sentenced to 46 Months After Strangling His GirlfriendRead the Press Release
TUCSON, Ariz. – Last week, Merrell Derek Steve Felix, 40, of Tucson, Arizona, was sentenced by U.S. District Judge Jennifer G. Zipps to 46 months in prison. Felix previously pleaded guilty to Assault by Strangulation committed on the Tohono O’odham Indian Reservation.
On October 6, 2017, near Sells, Arizona, Felix, an enrolled member of the Tohono O’odham Nation, assaulted his girlfriend by strangling her. The investigation began after United States Border Patrol agents encountered Felix and the victim at an immigration checkpoint on Highway 86 just outside of Sells. A Border Patrol agent noticed that the victim had been crying and inquired about her well-being. Felix told the agents that the victim was fine, but the victim mouthed the word, “help.” The victim had visible bruising on her neck and face, and later told law enforcement that Felix had strangled her with both of his hands and a lanyard. The victim is also an enrolled member of the Tohono O’odham Nation.
The Tohono O’odham Police Department, with the assistance of the Federal Bureau of Investigation, conducted the investigation into this matter. Assistant United States Attorney Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-1089-TUC-JGZ
RELEASE NUMBER: 2020-078_Felix# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Men Charged with Federal Gun Crimes Appear in CourtRead the Press Release
CHARLESTON, W.Va. – Three men charged with federal gun crimes appeared in court this week, announced United States Attorney Mike Stuart.
John Miller, 23, of Charleston, was sentenced to 25 months in prison for making a false statement during the purchase of a firearm, possession of a firearm by a prohibited person, possession of a firearm in a school zone, and discharge of a firearm in a school zone. On April 7, 2019, Miller went to Cabela’s near Corridor G in Charleston, which is a licensed firearm dealer, and purchased a Taurus G2C 9 mm pistol. Prior to purchasing the firearm, he checked “no” in response to a question on the DOJ ATF Firearms Transaction Record Form 4473 indicating he was not an unlawful user of and addicted to a controlled substance, but he knew that to be a false statement as he was an unlawful user of and addicted to marijuana. Shortly after purchasing the firearm, he took it within a distance of 1,000 feet of Mary C. Snow West Side Elementary School and discharged it during a drug deal. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
Earlier this week, two Huntington men pled guilty to gun crimes before United States District Judge Robert C. Chambers.
Craig Eatmon, also known as “Fresh,” age 41, pled guilty to two counts of being a felon in possession of a firearm. Eatmon admitted that on May 19 and June 17, 2019, he sold a firearm at Tri-State Pawn and Jewelry on 4th Avenue in Huntington. At the time he sold the firearms, he had been convicted of a drug related felony and malicious destruction of property in Wayne County, Michigan. As a result of those convictions, Eatmon was prohibited from possessing the firearms. Eatmon faces up to 10 years in prison on each count when sentenced on January 11, 2021. The ATF conducted the investigation. Assistant United States Attorney Greg McVey is handling the prosecution.
Jeffrey L. Hodgens, 42, entered a guilty plea to theft of a firearm. Hodgens admitted that on March 24, 2019, he entered a vehicle that was parked in the 1100 block of 4th Avenue in Huntington where he located a Colt, 5.56 mm rifle. Hodgens stole the rifle and admitted that he subsequently traded it to another person in Huntington in exchange for methamphetamine. When the rifle was later recovered, it was determined that the rifle was capable of firing as a fully automatic machinegun. Hodgens faces up to 10 years in federal prison when he is sentenced on January 11, 2021. The investigation was conducted by the ATF and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the Project Guardian partners referenced above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:19-cr-00270 (Miller), 3:20-cr-00104 (Eatmon), and 3:19-cr-00297 (Hodgens).
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Thirteen Charged in Fresno Interstate Multi-Drug RingRead the Press Release
FRESNO, Calif. — A federal grand jury returned two indictments Thursday arising from a single investigation into a drug trafficking organization operating in California and trafficking drugs to Colorado, Nebraska, Oregon, and Washington, U.S. Attorney McGregor W. Scott announced today.
The grand jury charged Fresno residents Jesus Gonzalez-Burgos, 36, Gabriel Gomez-Nunez, 36, and Jose Rubalcalva Gutierrez Jr., 34, with conspiring to distribute methamphetamine, heroin, and fentanyl.
The grand jury also charged the following defendants with conspiring to distribute methamphetamine and fentanyl: Juan Alejandro Comparan-Guzman, 34, of Kerman; Quintin Jeuh Carlos-Bañuelos, 25, of Palo Alto; Hector Gomez, 27, of Omaha, Nebraska; Francisco Ramírez, 20, of Fresno; Lorena Ramírez, 36, of Fresno; Christina Maria Nino, 57, of Fresno; Anna Concepcion Jimenez-Ambriz, 21, of Fresno; Rafael Zaragoza, 28, of Fresno; Carol Maldonaldo Vasquez, 32, of Corcoran; and Rita Ann-Marie Louis, 29, of Carnation, Washington.
According to court documents, the nine-month investigation revealed these individuals were involved in trafficking methamphetamine, fentanyl-laced counterfeit OxyContin pills, and heroin between California and Colorado, Nebraska, Oregon, and Washington. Law enforcement seized approximately 34,144 pills of counterfeit OxyContin pills containing fentanyl, 7 pounds of cocaine, 2 pounds of heroin, 137 pounds of methamphetamine, and $142,000 during the course of the investigation.
This case is the product of an investigation by the High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), composed of personnel from the Federal Bureau of Investigation, California Department of Justice -Fresno Regional Office, Homeland Security Investigations, the Fresno Police Department, Fresno County Sheriff’s Office, Tulare County Sheriff’s Office, Kings County Sheriff’s Office, Fresno County District Attorney's Office, and the California Highway Patrol. HIIT conducts major narcotic and other major criminal investigations in the counties of the California Central Valley. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
If convicted, all defendants face a mandatory minimum penalty of 10 years and up to life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Has Repatriated 27 Americans from Syria and Iraq Including Ten Charged with Terrorism-Related Offenses for Their Support to ISISRead the Press Release
With the recent transfer of custody of four defendants, the United States has successfully repatriated all Americans held by the Syrian Democratic Forces (SDF) against whom criminal charges have been lodged for offenses relating to their support for ISIS. The Department of Justice will review the facts and circumstances relating to any future detainees and, where warranted, bring additional charges against others.
“With this week’s repatriations, the United States has brought back every American supporter of ISIS known to be held by the Syrian Democratic Forces against whom we have charges,” said John C. Demers, Assistant Attorney General for National Security. “The Department of Justice has worked tirelessly over the years to prevent individuals from leaving America to fight for ISIS and other terrorist groups in Syria and to investigate, repatriate and charge people who willingly left to support these organizations. This was our moral responsibility to the American people and to the people of the countries to which these terrorists traveled. The Department has also supported the efforts of other responsible nations to do the same, including by sharing evidence and know-how. We will continue to do so for any country that takes responsibility for their citizens who left to take up arms in support of ISIS’s reign of hate and intolerance.”
“Preventing terrorism remains the FBI’s top priority. Through the hard work and dedication of countless men and women across the FBI and the U.S. government, nearly a dozen citizens have been repatriated from Iraq and Syria over the past several years to face the American justice system,” said John Brown, FBI Executive Assistant Director for National Security. “This announcement should serve as a warning to those who travel, or attempt to travel, to join and fight with ISIS. We remain vigilant in our efforts to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions. We will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”
“The United States continues to lead by example by working with the Syrian Democratic Forces to repatriate American citizens accused of supporting ISIS and, where appropriate, prosecuting their alleged crimes in American courts,” said Ambassador Nathan Sales, State Department Coordinator for Counterterrorism. “We call on other nations, particularly in Western Europe, to take responsibility for their citizens, and we thank the FBI and the Department of Justice for their continued commitment to keeping alleged terrorists off of the battlefield.”
The Recently Repatriated
Emraan Ali and Jihad Ali: On Sept. 30, 2020, Emraan Ali and Jihad Ali made their initial appearance in the Southern District of Florida. Emraan Ali is charged in a complaint with providing and attempting to provide material support to ISIS. Jihad Ali is charged in a complaint with conspiracy to provide material support to ISIS. According to the criminal complaints, in March 2015, Emraan Ali traveled to Syria with his family, including his son, Jihad Ali, to join ISIS. Both Emraan Ali and Jihad Ali received military and religious training and served as fighters in support of the terrorist organization. Emraan and Jihad Ali finally surrendered to the SDF near Baghuz in March 2019, during the last sustained ISIS battles to maintain territory in Syria.
Abdelhamid Al-Madioum: On Sept. 16, 2020, Abdelhamid Al-Madioum, made his initial appearance in the District of Minnesota on an indictment charging him with providing material support to ISIS. According to the allegations in the indictment and a law enforcement affidavit, from July 8, 2015, through March 15, 2019, Al-Madioum knowingly provided material support and resources, including personnel (namely himself) and services to ISIS. On June 23, 2015, Al-Madioum, a native of Morocco and naturalized U.S. citizen, and his family traveled from St. Louis Park, Minnesota, to Casablanca, Morocco, to visit their extended family. On July 8, 2015, Al-Madioum left Morocco and traveled to Istanbul, Turkey, and then on to Iraq and Syria, where he joined ISIS. In March of 2019, Al-Madioum was captured and detained by the SDF.
Lirim Sylejmani: On Sept. 16, 2020, an indictment was unsealed in the federal district court of the District of Columbia charging Lirim Sylejmani, a Kosovo-born naturalized U.S. citizen, with conspiring to provide, providing, and attempting to provide material support to ISIS, and receiving training from ISIS. According to the allegations in the indictment, from November 2015 through February 2019, Sylejmani conspired to provide and provided material support and resources, including personnel and services, to ISIS in Syria and received military training from the terrorist organization. The defendant was captured by the SDF in 2019 and has spoken to a number of media outlets about his time with ISIS.
Those Previously Repatriated From Syria and Iraq
Prior press releases relating to the six other defendants who were repatriated from Syria and Iraq are included below. For the latest updates on the cases, please check PACER or contact the relevant U.S. Attorney’s office.
Samantha Marie Elhassani – Northern District of Indiana:
https://www.justice.gov/opa/pr/former-indiana-resident-pleads-guilty-concealing-terrorism-financing
Warren Christopher Clark – Southern District of Texas:
https://www.justice.gov/opa/pr/texas-man-arrested-attempting-provide-material-support-designated-foreign-terrorist
Ibraheem Izzy Musaibli – Eastern District of Michigan:
https://www.justice.gov/opa/pr/michigan-man-who-joined-isis-charged-additional-offenses
Ruslan Maratovich Asainov – Eastern District of New York:
https://www.justice.gov/opa/pr/american-citizen-alleged-isis-sniper-and-weapons-instructor-indicted-providing-material
Omer Kuzu – Northern District of Texas:
https://www.justice.gov/usao-ndtx/pr/repatriated-isis-fighter-pleads-guilty-terror-charge
Mohamad Jamal Khweis – Eastern District of Virginia:
https://www.justice.gov/opa/pr/american-sentenced-20-years-joining-isis
Texas woman sent to prison for 19-year internet stolen merchandise schemeRead the Press Release
HOUSTON – A 63-year-old resident of Dallas has been ordered to federal prison for her role in a multi-million dollar interstate theft ring involving merchandise sold on eBay, announced U.S. Attorney Ryan K. Patrick.
Kim Richardson pleaded guilty Dec. 17, 2019.
Today, U.S. District Judge Andrew Hanen ordered her to serve a total of 54 months in federal prison to be immediately followed by three years of supervised release. She has also agreed to pay $3.8 million in restitution. In handing down the sentence, the court noted it would be virtually impossible to identify all of the victims in this long-running scheme.
As part of her plea, Richardson admitted she participated in a conspiracy that spanned from August 2000 through April 2019. During that time, she shoplifted items as she traveled throughout the United States. She would then sell the stolen merchandise to buyers on eBay and via direct internet sales and sent it to them via the U.S. mail, Federal Express and United Parcel Service.
Richardson stole items from numerous retail stores. She used shoplifting tools to disable security devices and would exit the store by placing the stolen merchandise in a large black bag she carried. Richardson assisted in the sale of the items on the internet as well as packaging and mailing the stolen items.
Buyers sent approximately $3.8 million throughout the scheme into four PayPal accounts linked to Richardson.
Richardson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service and FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek prosecuted the case.
Ten Men Sentenced to Prison for Their Roles in a Child Exploitation Enterprise and ConspiracyRead the Press Release
Ten men from around the country have been sentenced for participating in a child pornography enterprise and conspiracy, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania announced today.
U.S. District Judge Harvey Bartle III for the Eastern District of Pennsylvania imposed the following sentences:
- Andrew Dowdle, aka “Chigger,” 48, of Oswego, New York, was sentenced on Sept. 23, 2019, to 16 years in prison, followed by 15 years supervised release. He pleaded guilty on April 8, 2019.
- Carl Masters, aka “Harmon,” 45, of Lawrence, Kansas, was sentenced on Sept. 24, 2019, to 27 years in prison, followed by lifetime supervised release. He pleaded guilty on April 25, 2019.
- Ric Crossfield, aka “Officer Branner,” 25, of Jamaica, New York, was sentenced on Sept. 25, 2019, to 14 years in prison, followed by 40 years supervised release. He pleaded guilty on April 18, 2019.
- Christian Brennan, aka “Choad,” 46, of Puyallup, Washington, was sentenced on Nov. 7, 2019, to 20 years in prison, followed by 10 years supervised release. He pleaded guilty on April 23, 2019.
- Sharif El-Battouty, aka “Fritos,” 39, of Woodside, New York, was sentenced on March 16, 2020, to 30 years in prison, followed by lifetime supervised release. He was found guilty at trial on May 2, 2019.
- Jarrett Lea, aka “Toot,” 27, of Charlotte, North Carolina, was sentenced on Oct. 1 2020, to 17 years in prison, followed by 15 years of supervised release. He pleaded guilty on April 15, 2019.
- David Minnichelli, aka “Davis,” 30 of Califon, New Jersey, was sentenced on July 28, 2020, to 15 years in prison, followed by lifetime supervised release. He pleaded guilty on Oct. 22, 2019.
- Marqueal Bonds, aka “The Goat,” 22, of Chicago, Illinois, was sentenced on Aug. 18, 2020, to 22 years in prison, followed by lifetime supervised release. He pleaded guilty on March 5, 2020.
- Timothy Friel, aka “JJChuck,” 40 of Penndel, Pennsylvania, was sentenced on March 19, 2020, to 12 years in prison, followed by 15 years supervised release. He pleaded guilty on Aug. 24, 2018.
U.S. District Judge Benjamin H. Settle for the Western District of Washington imposed the following sentence:
- Cory Crosby, aka “The 191,” 39, of Tacoma, Washington, was sentenced on April 1, 2019, to 25 years in prison, followed by lifetime supervised release. He pleaded guilty on July 18, 2018.
“The defendants collaborated in a sophisticated conspiracy to deceive, manipulate, and extort hundreds of unsuspecting and vulnerable children, tricking them into creating sexually explicit content by posing as their peers on live-streaming video chat applications,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These significant sentences reflect the Department’s commitment to uncovering such nefarious schemes and protecting our most innocent from exploitation by online predators.”
“Jarret Lea and his co-conspirators caused irreparable harm to over 170 identified child victims,” said U.S. Attorney William McSwain for the Eastern District of Pennsylvania. “These men shrouded their true identities in the anonymity of the internet and presented themselves as their victims’ peers in order to gain these children’s trust and exploit them sexually. The lengthy sentences handed out for this despicable behavior will not restore the innocence lost, but they do send a strong message that my office will find and prosecute child predators, no matter where they lurk.”
“In order to ensure themselves a steady supply of new child pornography, these predators conspired to befriend, manipulate, and sexually exploit scores of minors online,” said Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Division. “The defendants thought they could hide behind fake names and handles and continue their violations with impunity. The FBI is proud to have fully unmasked them, shut them down, and brought them to justice.”
According to court documents, between November 2016 and July 2018, these defendants, and other co-conspirators outside of the United States, utilized chatrooms on the online service “Discord” – an application designed for online gaming communities that allows users to engage in text chat and share images and videos – to produce and exchange child pornography. These chatrooms were accessed by invitation only. Those who gained access to the chatrooms actively worked together to identify social media platforms and profiles of minor females, including girls as young as 10 years old, and strategized regarding how to convince the children to engage in sexually explicit activity via live web camera. The group targeted live-streaming video chat applications such as Live.Me, Periscope, YouNow, Kik, Musically and Snapchat to target and entice the minors to engage in sexually explicit conduct.
While pretending to be minor boys and girls, the defendants streamed pre-recorded videos of other underage minors engaging in similar conduct to the targeted victims in an effort to get the minors to believe they were watching a live video of someone their own age. The victims were unaware that they were communicating with adult men who were recording their sexually explicit activity. After successfully recording a victim, the defendants shared the sexually explicit videos with each other by uploading the files to file-storage sites and placing a link to download the file on a section of their members-only chatroom. To date, 172 minor victims have been positively identified.
Four of the co-conspirators each pleaded guilty to one count of engaging in a child exploitation enterprise and one count of advertising child pornography. Three of the co-conspirators pleaded guilty to one count of advertising child pornography. Two of the co-conspirators pleaded guilty to one count of engaging in a child exploitation enterprise. Additionally, Cory Crosby, who was prosecuted in the Western District of Washington pleaded guilty to one count of engaging in a child exploitation enterprise, one count of producing child pornography and one count of possession of child pornography.
Trial Attorneys Kaylynn Foulon and Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Kevin Jayne and former Assistant U.S. Attorney Seth Schlessinger of the Eastern District of Pennsylvania, and Assistant U.S. Attorney Matthew Hampton of the Western District of Washington prosecuted the cases. The FBI Philadelphia and Tacoma Field Offices and investigated the case with assistance from Operation Rescue Me, the Digital Analysis and Research Center (DARC) Lab and CEOS’s High Technology Investigative Unit.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Tampa Man Sentenced to More Than 12 Years in Prison for Laundering Drug MoneyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Arafat Aljubeh (55, Tampa) to 12 years and 7 months in federal prison for conspiring to launder the proceeds of a conspiracy to distribute AB-FUBINACA, a type of synthetic marijuana. The court also ordered Aljubeh to forfeit his interest in five parcels of real property in the Tampa Bay area, which are traceable to proceeds of the offense.
Aljubeh had pleaded guilty on June 7, 2019.
According to the plea agreement, in April 2017, in Baker County, a Florida Highway Patrol (FHP) trooper conducted a traffic stop on a vehicle driven by Thair Zatar. Zatar was issued a warning and gave the trooper consent to search his vehicle. When the trooper looked in the back of Zatar’s vehicle, he discovered nine large black garbage bags, weighing approximately 415 pounds, which were stuffed with 27,000 individual packets labeled as “potpourri.” The packets were branded with names including “Outer Space” and “Geeked Up.” The trooper suspected the packets contained synthetic marijuana, and the Drug Enforcement Administration later confirmed that fact. Zatar was arrested and informed the DEA that his supplier was Aljubeh.
Zatar pleaded guilty to possession with the intent to distribute AB-FUBINACA and was sentenced in 2018 to four years and three months in federal prison. Zatar’s sentence was later reduced to 33 months in prison based on his cooperation in the investigation of Aljubeh.
As part of his cooperation, Zatar admitted to DEA that he had served as a drug mule at the direction of Aljubeh on previous occasions and provided documents and evidence showing that Aljubeh directed Zatar to deposit the proceeds of the AB-FUBINACA sales into accounts controlled by Aljubeh and Aljubeh’s conspirators. A separate investigation of those accounts by Homeland Security Investigations revealed that the involved accounts were receiving deposits of thousands of dollars in cash from around the United States that were the proceeds of the sale of AB-FUBINACA. Those accounts were then used to transfer the proceeds back and forth between the accounts in a complex series of transactions designed to obfuscate the nature, location, source, ownership and control of the drug money. Ultimately, tracing of the funds showed that they were used to purchase five pieces of real property in the Tampa Bay area.
“This criminal has repeatedly shown disregard for our nation’s laws,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran. “As a result of the effective teamwork with HSI, the Pasco County Sheriff’s Office, the Florida Highway Patrol and the DEA, this repeat offender will face the consequences for his crimes.”
This case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, the Florida Highway Patrol, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor. The criminal forfeiture was handled by Assistant United States Attorney Bonnie Glober.
Tahlequah Man Sentenced to 60 Months for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Cole Haeberle, age 23, of Tahlequah, Oklahoma was sentenced to sixty months’ imprisonment, and three years of supervised release for Arson, in violation of Title 18, United States Code, Section 844(i). The charges arose from an investigation by the Cherokee County Sheriff’s Office, the Tahlequah Fire Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that from on or about February 24, 2020, in the Eastern District of Oklahoma, the defendant, maliciously damaged and destroyed, and attempted to damage and destroy, by means of fire and explosive materials the Garden Walk Apartments located at 18106 W. 794 Road, APT 40B, Tahlequah, Oklahoma, a building which was used in any activity affecting interstate commerce.
United States Attorney Brian J. Kuester said, “The defendant’s conduct had the potential for injuring many people. Although no one was physically harmed, setting fire to an occupied apartment building is a serious offense. The diligent efforts of the investigation and prosecution teams that worked on this case led to the defendant’s quick apprehension, prosecution, and sentencing. His community is safer with him in a Bureau of Prisons facility.”
“The use of fire to commit arson is one of the most dangerous criminal acts today. The fact that Mr. Haeberle committed this violent act at an apartment complex is even more concerning. Thanks to the hard work of the Cherokee County Sheriff’s Office and the Tahlequah Fire Department, this criminal actor was caught and brought to justice,” said ATF Special Agent in Charge Jeffrey C. Boshek II.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.
Suburban Business Owner Sentenced to a Year in Federal Prison in Connection with Public Corruption Investigation in MarkhamRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a suburban business owner to a year and a day in prison for lying to federal law enforcement about his knowledge of a bribery scheme involving the mayor of Markham.
THOMAS SUMMERS, 68, of Homer Glen, was convicted last year of making false statements to the FBI and IRS. The agents interviewed Summers in November 2016 as part of a public corruption investigation involving bribes paid to then-Markham Mayor DAVID WEBB JR. by contractors seeking to maintain or expand business with the south suburb. During the interview, Summers lied to agents when he denied having knowledge about bribe payments.
Webb, who served as mayor of Markham from 2001 to 2017, pleaded guilty and admitted participating in a bribery scheme. He is scheduled to be sentenced on March 11, 2021.
U.S. District Judge Robert W. Gettleman imposed Summers’s sentence Tuesday after a hearing in federal court in Chicago. In handing down the sentence, Judge Gettleman emphasized the severity and impact of public corruption and the need for general deterrence.
The sentence 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 Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The U.S. Securities and Exchange Commission provided valuable assistance.
“Defendant showed no respect for the law,” Assistant U.S. Attorneys Steven J. Dollear and Georgia N. Alexakis argued in the government’s sentencing memorandum in the Summers case. “He sat across from federal agents and lied. He lied to protect himself and Webb, and the corrupt relationship they shared.”
Two other defendants – Mokena-based TOWER CONTRACTING LLC and its president, MICHAEL JARIGESE, 67, of Frankfort – were also convicted as part of the federal investigation. Jarigese was sentenced in March to three years and five months in prison, while Tower Contracting was fined $1.2 million and sentenced to four years of probation.
Statement of U.S. Attorney for the District of Columbia Michael R. Sherwin on Domestic Violence Awareness MonthRead the Press Release
WASHINGTON — Today is the first day of Domestic Violence Awareness Month (DVAM). First observed in 1987, DVAM is an opportunity to raise public awareness regarding issues relating to domestic violence. The United States Attorney’s Office for the District of Columbia is deeply involved in addressing domestic violence in our community, as our office handles the prosecution of all domestic violence cases involving adult offenders that occur in the District of Columbia. This year, we again take this opportunity to reaffirm our commitment to seeking justice for those individuals harmed by domestic violence.
As part of that commitment, earlier this year, our office launched a new Intimate Partner Violence (IPV) Prevention Initiative. This initiative is focused on collaborating with community partners to address IPV, as well as further developing our Office’s expertise in prosecuting domestic violence cases. Assistant United States Attorney Ryan Creighton, a senior prosecutor in the Sex Offense and Domestic Violence Section of our Office, was selected to lead this important Initiative. Nationally, about 1 in 4 women and 1 in 9 men experience sexual violence, physical violence, and/or stalking by an intimate partner. According to the American Academy of Child and Adolescent Psychiatry, as many as 10 million children and adolescents witness violence between their parents or caregivers each year, [1] and children who witness domestic violence are also significantly more likely to be victims-survivors of child abuse themselves.
IPV is just as much of a challenge here in Washington, D.C., and its effects can be devastating and, regrettably, sometimes fatal.
We must also acknowledge that the global COVID-19 pandemic has created even more challenges for those in our community most vulnerable to abuse, and to domestic violence in particular. Numerous reports over the last few months have documented an increase in domestic violence in communities nationally and across the globe. Our city has similarly seen the impact of this insidious form of violence. And at a time when many victims-survivors may feel trapped at home with their abuser, it is important that they know they are not alone, and that help is available.
Despite the ongoing health emergency, our Office has worked tirelessly to bring safety and justice to victims-survivors of domestic violence. For example:
- As part of the Intimate Partner Violence Prevention Initiative, our Office developed flyers, in English and Spanish, with key information about what services are available to victims-survivors of abuse during the pandemic, and how to report abuse safely. Officers with the Metropolitan Police Department have distributed hundreds of the flyers throughout our community and continue to do so;
- Prosecutors in our Sex Offense and Domestic Violence Section have responded to hundreds of motions seeking early release for those convicted of domestic violence, arguing against release where it is necessary to keep our community safe, with almost uniform success;
- Our Office worked with community partners to establish procedures for conducting remote interviews of children suspected to be victims-survivors of abuse; and
- Our Office is planning several remote events during the month of October to educate the public about domestic violence and to help victims-survivors learn how to break free from the powerful cycle of violence, including a WebEx presentation with the Washington Humane Society on October 29 from 3:00 – 4:15 p.m. on the link between animal cruelty and domestic violence. Other events focusing on domestic violence include the following:
- October 7, 14, 21, and 28 – Domestic Violence/Bullying Hispanic Youth Presentation (available to students only);
- October 14 and 21 – Women’s Roundtable Series focused on domestic violence (6:00 p.m. on the 14th) and protecting children from abuse and neglect (also at 6;00 p.m. on the 21st);
- October 27 – Hate Bias Task Force Meeting focused on helping victims-survivors of domestic violence during COVID-19 (6:00 p.m.); and
- October 28 – Clergy Ambassador Program event focused on domestic violence (6:00 p.m.).
While this Domestic Violence Awareness Month comes during a uniquely challenging time, it is nevertheless an important reminder of the fact that now, more than ever, we must fight to bring justice to those who have been victimized by domestic violence.
[1] https://www.aacap.org/AACAP/Families_and_Youth/Facts_for_Families/FFF-Guide/Helping-Children-Exposed-to-Domestic-Violence-109.aspx.
Second Man Pleads Guilty for Role in 2016 Killing at Hattiesburg RestaurantRead the Press Release
Hattiesburg, Miss. – Demethius Dixon, also known as “Deezy,” 28, of Louisiana, pled guilty today before Senior U.S. District Court Judge Keith Starrett for carrying and using a firearm during a drug trafficking crime, resulting in the firearm being discharged, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA).
On June 26, 2016, Dixon and his co-defendant, James Windham, met with a third party at a Hattiesburg Mugshots restaurant in order to sell two ounces of marijuana. Dixon was brought along by Windham as an armed enforcer and as backup in case the drug deal turned sour. During the drug transaction, Dixon discharged a firearm multiple times, ultimately resulting in the death of the third party.
Following the shooting, Dixon and Windham fled from the scene, at which time they discarded the marijuana and all firearms associated with the shooting. Due to the diligent police work of Hattiesburg Police Department, the marijuana and all firearms were all recovered shortly after the shooting.
Dixon and Windham were originally indicted for this offense on June 25, 2019. Sentencing for Dixon is set on January 12, 2021 at 10:00 a.m. Windham pled guilty to the same charge on September 24, 2020. Sentencing for Windham is set on January 12, 2021 at 9:30 A.M.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
The Drug Enforcement Administration, Hattiesburg’s High Intensity Drug Trafficking Area Post of Duty, and Hattiesburg Police Department investigated the case. District Attorney Hal Kittrell and the 15th Circuit District Attorney’s Office were instrumental in guiding early investigative steps in the matter and involving federal partners. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Registered Sex Offender Faces 10 Years in Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE – A registered sex offender arrested by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force while he sat in a restaurant parking lot accessing the business’ Wi-Fi-feed to view child pornography is facing 10 years in federal prison after pleading guilty today to possession of child pornography after having previously been convicted for possession of child.
Vincent J. Siravo, 41, of Westerly, convicted in Rhode Island state court in 2008 for possessing child pornography, has been detained in federal custody since August 4, 2020.
According to information presented to the court, the ICAC Task Force developed information that on multiple occasions a device was connecting to an IP address assigned to a South Kingstown restaurant, and that the device had accessed a file sharing network and possessed files of child pornography.
On October 16, 2019, a member of the Task Force received notification that a device on a peer-to-peer file sharing network was accessing the Internet connection assigned to the restaurant. A State Police Detective responded to the restaurant and discovered Siravo sitting in his car, parked in a handicap parking spot, with a laptop computer on his lap. Siravo was uncooperative and provided a false name to law enforcement. His true identity was confirmed through his vehicle registration. Law enforcement determined that Siravo was a Level 1 sex offender.
A court-authorized search of Siravo’s computer revealed a large quantity of child pornography. A full forensic review of the computer revealed approximately 2,200 video files and approximately 1,600 images depicting child pornography. Among the child pornography files discovered on Siravo’s computer were files identified as having been downloaded by someone using the restaurant IP address on March 21 through March 22, 2017.
Siravo’s guilty plea before U.S. District Court Judge Mary S. McElroy is announced by United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea.
Possession of child pornography after having previously been convicted for possession of child is punishable by 10-20 years in federal prison, lifetime supervise release, and a fine of $250,000.
According to a plea agreement filed with the court, at a sentencing hearing scheduled to be held on December 14, 2020, the government and the defendant will jointly recommend the court sentence Siravo to a 10-year term of incarceration in federal prison.
The case is being prosecuted by Assistant U.S. Attorney Lee. H. Vilker.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick Police Department, Cranston Police Department, Newport Police Department, East Providence Police Department, Pawtucket Police Department, Bristol Police Department, North Kingstown Police Department, Portsmouth Police Department, and Homeland Security Investigations.
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Principal of Cryptocurrency Escrow Company Pleads Guilty to Multimillion-Dollar Fraudulent SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that JON BARRY THOMPSON, a/k/a “J. Barry Thompson,” the principal of a cryptocurrency escrow company, pled guilty today in Manhattan federal court to commodities fraud. THOMPSON’s guilty plea results from his involvement in a scheme to defraud a company of over $3 million. In June and July 2018, THOMPSON made false promises to the company to induce it to send THOMPSON’s company over $3 million for Bitcoin that THOMPSON never had and that the investing company never received.
THOMPSON was arrested on July 25, 2019, and pled guilty today before U.S. District Judge Edgardo Ramos.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As he admitted today, Jon Barry Thompson fraudulently induced a company to send him more than $3 million, which the company understood would be used for the purchase of Bitcoin with ‘no risk.’ While Thompson had pledged not to part with the company’s money until he had possession of the Bitcoin, in fact Thompson sent the money to a third party without first receiving the Bitcoin, and the money was never recovered.”
According to the Complaint, the Indictment, and other statements made in open court:
THOMPSON claimed in promotional materials that his cryptocurrency escrow company, Volantis Escrow Platform LLC, and the related company Volantis Market Making LCC (collectively “Volantis”), “minimize[d] settlement default risk” in cryptocurrency transactions. THOMPSON claimed that because Volantis acted as a custodian of assets for “both sides of the transaction, there is no risk of default.”
In June and July 2018, THOMPSON made false statements to a company (“Company-1”) to induce Company-1 to send Volantis over $3 million to fund the purchase of Bitcoin for Company-1. THOMPSON falsely assured Company-1 that THOMPSON would act as an escrow and that Company-1’s money could not be lost. In particular, THOMPSON told Company-1 that the transaction would take place through an “atomic swap process” after THOMPSON had custody of both the Bitcoin and Company-1’s cash. THOMPSON falsely represented that he would not transfer Company-1’s cash to the seller until he had the Bitcoin in hand. Based on these fraudulent representations, Company-1 wired THOMPSON $3.25 million. THOMPSON then wired over $3 million of Company-1’s money to a third-party entity without first receiving any of the Bitcoin in hand. After taking Company-1’s money, THOMPSON lied for days about the status of the transaction and the location of Company-1’s Bitcoin and money, which was never returned.
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THOMPSON, 49, of Easton, Pennsylvania, pled guilty to one count of commodities fraud. This charge carries a maximum term of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
THOMPSON will be sentenced on January 7, 2021, at 10:00 a.m.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the U.S. Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution.
Philadelphia Man Admits Transporting Three Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Philadelphia man today admitted possessing and transporting more than three kilograms of cocaine he intended to distribute, U.S. Attorney Craig Carpenito announced.
Suris Vasquez-Javier, 40, pleaded guilty by videoconference before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of possession with the intent to distribute 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On Jan. 27, 2020, law enforcement officers conducted a lawful motor vehicle stop during which Vasquez-Javier provided consent to search the vehicle. During the search, they uncovered a secret compartment, known as a “trap” and commonly used by criminals to hide contraband, such as narcotics, in an effort to evade detection. Law enforcement officers recovered a black plastic bag containing more than three kilograms of cocaine. A search incident to his arrest uncovered more than $2,600 in U.S. currency.
The charge of possession with the intent to distribute cocaine carries a mandatory minimum penalty of five years in prison and a maximum potential penalty of 40 years in prison. Sentencing is scheduled for Feb. 10, 2021.
U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and members of the New Jersey State Police, under direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime and Gangs Unit in Newark.
Pharmacy Owner and Pharmacist Charged in a Scheme to Bill Insurance for Medications Not DispensedRead the Press Release
DETROIT - A grand jury returned a superseding indictment yesterday charging Wansa Nabih Makki, her husband, Hossam Tanana, and her brother, Mahmoud Makki with multiple health care fraud and money laundering offenses, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Charged in the indictment and criminal complaints are:
Wansa Nabih Makki, 42, of Dearborn
Mahmoud Makki., 37, of Dearborn
Hossam Tanana, 54 of Dearborn
According to the superseding indictment, between January 2010 and January 2018, Wansa Makki owned and oversaw the operations of two local pharmacies, LifeCare Pharmacy in Livonia and LifeCare of Michigan in Farmington Hills. Both pharmacies were “closed door” pharmacies, meaning that they were not open to the public and only filled prescriptions for individuals associated with various care facilities.
The superseding indictment alleges that during the course of the conspiracy, Wansa Makki, Hossam Tanana, and Mahmoud Makki engaged in a scheme to bill Medicare, Medicaid and Blue Cross Blue Shield of Michigan for approximately $9.2 million dollars for medications that were never dispensed. The fraud scheme was detected by Medicare, in part, because of a huge deficit between each pharmacy’s recorded inventories and the claims that each submitted for insurance reimbursement. As part of the scheme to defraud, the defendants billed insurance companies for allegedly submitting claims for delivering over 500 medications to people who had died prior to the claimed date of delivery. The grand jury also charged Wansa Makki with making a false statement to the IRS when she falsely claimed to be a Pharmacist in her 2015 tax return.
According to the indictment, proceeds of the fraud scheme were laundered by overpaying consulting and delivery companies owned by Hossam Tanana and Mahmoud Makki. For instance, Hossam Tanana was previously convicted for diverting controlled substances such as oxycodone, hydrocodone (Vicodin) and alprazolam (Xanax) while being licensed as a pharmacist. Two days after being released from federal custody in April of 2012, Tanana incorporated a pharmacy consulting company. Between the date of incorporation and December of 2013, Tanana’s consulting company received over $400,000 from the LifeCare Pharmacy. LifeCare Pharmacy also paid over one million dollars to a delivery service opened by Wansa Makki’s brother, Mahmoud Makki, in a 14-month period beginning in December of 2013.
According to the Indictment, Wansa Makki used the proceeds to make a $21,500 payment for a Mercedes G63 AMG while Hossam Tanana used fraud proceeds to purchase a $545,000 Waterford Lakehouse. The indictment further alleged that Wansa Makki spent more than $3,000 in dock repairs to the Waterford Lakehouse.
During the investigation, the FBI and United States Attorney’s Office deployed the full arsenal of financial investigation tools to seize assets, which will be returned to the victim taxpayers in the event of a conviction. Seized assets include the following:
- Over $2 million in liquid assets seized from accounts controlled by members of the conspiracy;
- Eight King George Gold Coins valued at over $3,000, One Queen Elizabeth II Gold Coin valued at $378, One Tiffany Diamond Ring Valued at $60,000, six Troy once Suisse gold bars valued at approximately $8,000, and 27 designer handbags – including Hermes Birkin™ and Coco Chanel™ valued at approximately $78,000.
According to court records, upon conviction, the United States Attorney’s Office will seek the forfeiture of the additional following property, the 5,700 square foot residence of Wansa Makki and Hossam Tanana in Dearborn. Further, upon conviction, the United States will seek the forfeiture of $113,000 in proceeds from the sale of a Waterford lake house purchased by Hossam Tanana for $545,000 while he was on federal supervised release following his 2010 distribution of controlled substance conviction.
According to court records, a member of the same conspiracy, Mohamad Ali Makki pleaded guilty and is awaiting sentencing. As part of his plea agreement, Mohamad Ali Makki, agreed to forfeit approximately $2.6 million in liquid assets seized from accounts he controlled. He additionally agreed to the imposition of a $2.3 million forfeiture judgment. The United States is authorized to forfeit any and assets Mohamad Ali Makki owns to satisfy the forfeiture judgment. In addition to the forfeiture judgment, the district court will also impose a restitution judgment of approximately $9.8 million based on the pecuniary losses to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
An indictment is only a charge and is not evidence of guilt. Each 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 of a health care fraud charge, the defendants face a maximum sentence of imprisonment of ten years, and a maximum fine of $250,000. If convicted of the money laundering charges, the defendants face up to twenty years’ imprisonment. Upon conviction, the court would be required to impose both forfeiture and restitution judgments.
The case was investigated by Special Agents of the HHS and FBI, with cooperation and assistance from the Michigan Department of Health and Human Services - Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys, Philip Ross and Mitra Jafary-Hariri. Fraud Section Trial Attorney Shankar Ramamurthy previously prosecuted the Asset Forfeiture aspects of this case before transferring to his current position.
Pennsylvania Man Pleads Guilty to Possession of Methamphetamine with Intent to Distribute, Firearms ChargeRead the Press Release
ST. GEORGE, UT – Channing L. Allen, 36, of Stroudsberg, Pennsylvania, pleaded guilty to one count of possession of methamphetamine with intent to distribute and one count of possession of a firearm in furtherance of a drug trafficking crime in federal court in St. George Thursday morning. U.S. Magistrate Judge Paul Kohler conducted the hearing.
A Utah Highway Patrol trooper initiated a traffic stop on I-15 in Iron County on Oct. 7, 2019, after observing traffic violations. Allen, who was driving the vehicle, did not have a current registration for the vehicle. After noticing other issues, the Trooper became suspicious of Allen’s conduct and began an investigation that ultimately led to 47 packages of methamphetamine in after-market compartments installed in the vehicle. The packages weighed approximately 86 pounds.
Allen admitted that he possessed the methamphetamine with intent to distribute and, in furtherance of the drug trafficking crime, he was in possession of a Glock 27 handgun.
U.S. District Judge David Nuffer will impose sentencing in the case Dec. 17, 2020. The plea agreement includes a stipulated sentence of 144 months followed by 60 months of supervised release. The sentence is subject to the approval of the Court.
Assistant U.S. Attorneys in the St. George U.S. Attorney’s Office are prosecuting the case. UHP troopers and agents with the Utah State Bureau of Investigation are investing the case.
Peabody Construction Company Owner Indicted for Failing to Pay More than $1 Million in Payroll TaxesRead the Press Release
BOSTON – The owner of a now-defunct Peabody construction company was arrested yesterday in connection with a scheme to defraud the IRS of approximately $1 million in payroll taxes and to defraud his workers’ compensation insurance carrier by failing to disclose how many workers he employed.
Argyrios “Eric” Mavros, 56, was indicted on 10 counts of failure to collect or pay over taxes and one count of mail fraud. Mavros was released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, Mavros, who owned Mavros Construction, Inc., cashed more than $3.3 million in customer checks at a Peabody check cashing business and used some of those funds to pay his employees in cash. Mavros failed to report these employees or their wages in quarterly corporate tax filings, in an effort to avoid paying Social Security and Medicare taxes on employee wages and withholding federal income taxes. Overall, Mavros failed to pay and withhold federal taxes on more than $2.5 million in wages, resulting in a tax loss of just over $1 million. Additionally, Mavros failed to report these employees to his workers’ compensation insurance carrier, thereby defrauding his insurer of premiums.
The charge of failure to collect and pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $10,000. The charge of 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 and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Valuable assistance was provided by the Insurance Fraud Bureau of Massachusetts. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Operations Manager Indicted in Scheme to Sell Counterfeit Clothing to the U.S. MilitaryRead the Press Release
PROVIDENCE – An operations manager of a North Dakota-based company that sells clothing and others items to the U.S. military, U.S. government, police, and others, has been indicted by a federal grand jury in Providence, RI, for his alleged role in a conspiracy that sold more than twenty million dollars-worth of counterfeit goods to military and government purchasers.
It is alleged that Terry Roe, 48, of Burlington, ND, conspired with at least one other individual, Ramin Kohanbash, 50, of Brooklyn, NY, to obtain counterfeit clothing, apparel, and gear. Kohanbash in turn worked with Bernard Klein, 39, also of Brooklyn, to arrange for these goods to be manufactured in China and Pakistan and imported into the United States. The indictment alleges that Roe, and others working at his direction through his position as an operations manager for the North Dakota company, then arranged for these counterfeit goods to be sold and delivered to the U.S. military, and other government and law enforcement agencies, including to the Rhode Island National Guard in East Greenwich, RI, as part of an investigatory controlled purchase. As alleged, Roe and others working at his direction falsely represented to the U.S. military and its suppliers that the counterfeit goods were manufactured in the United States as required.
Klein, a New York businessman, and Kohanbash, a New Jersey wholesaler, have both been separately charged, and previously admitted in U.S. District Court in Providence that they conspired with each other, and others, to arrange the mass production of goods in China and Pakistan that carried counterfeit markings and labels identical to genuine trademarks registered with the U.S. Patent and Trademark Office. Klein and Kohanbash instructed the Chinese on how to label and package the goods in order to avoid problems when shipments were inspected by U.S. Customs.
Among the counterfeit items produced in China and Pakistan and shipped to Kohanbash in the United States for distribution were counterfeit United Join Forces® Multicam® APEC parkas, counterfeit FREE® hoods, counterfeit Polartec® fleece shirts, and Gen III Level 7 parkas bearing counterfeit Primaloft® and ADS® hangtags. Some of the counterfeit items sold as part of the conspiracy lacked the required safety measures. Specifically, the counterfeit FREE® hoods were not actually fire resistant as indicated by the labels and hangtags. Additionally, the counterfeit Multicam® APEC parkas lacked the required NIR technology which would make the service member wearing the jacket difficult to detect by an enemy using night vision goggles.
A federal grand jury on Wednesday returned an indictment charging Roe with conspiracy to commit wire fraud and traffic in counterfeit goods, mail fraud, and trafficking in counterfeit goods.
The indictment of Roe is announced by United States Attorney Aaron L. Weisman; Leigh-Alistair Barzey, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Joseph P. Dattoria, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command, – Major Procurement Fraud Unit; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations Newark, NJ, Special Agent in Charge Jason J. Molina; and Troy Miller, Director of Customs and Border Protection, New York Field Office.
Ramin Kohanbash pled guilty on June 12, 2019, in U.S. District Court in Providence to charges of conspiracy to commit wire fraud and trafficking in counterfeit goods. He is scheduled to be sentenced on January 22, 2021.
Bernard Klein pleaded guilty on August 25, 2020, in U.S. District Court in Providence to conspiracy to commit mail fraud. He is scheduled to be sentenced on December 4, 2020.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Zachary A. Cunha, and Lee H. Vilker.
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Operation Wasted Daze: 49 Charged in $18 Million Pill Mill SchemeRead the Press Release
Forty nine defendants, including two doctors and five pharmacists, have been charged with participating in an $18 million pill mill scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an exhaustive investigation by the DEA’s Fort Worth Tactical Diversion Squad, 40 of the 49 defendants were arrested last week in “Operation Wasted Daze.” All 49 have been charged with conspiracy to possess with intent to distribute controlled substances. The final arrested defendant made her initial appearance in court this afternoon.
“By funneling addictive opioids onto our streets, these medical professionals violated both the Hippocratic oath and federal law – causing harm rather than healing, hurt rather than hope,” said U.S. Attorney Erin Nealy Cox. “This 49-defendant case represents a significant step in the fight against drug diversion in North Texas, and we appreciate DEA’s commitment to ensuring that all pill mill doctors and conspirators are investigated and shut down.”
“Medical professionals hold the public’s trust to provide what is in the best interests of their patients,” said DEA Dallas Field Division Special Agent in Charge Eduardo A. Chávez. “When this is eroded by supplying diverted prescription drugs to the streets in Fort Worth, DEA Dallas will ensure they are held accountable to the fullest extent of the law.”
According to the criminal complaint, unsealed today, Dr. Caesar Mark Capistrano, 61, and Dr. Tameka Lachelle Noel, 36, allegedly wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.
Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, allegedly used a network of recruiters to enlist “patients” from the community and local homeless shelters. Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel. The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pharmacies and diverted the drugs for resale on the streets.
At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose. In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.
Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine. Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.
Medical professionals charged in the scheme include:
- Caesar Mark Capistrano, medical doctor
- Tameka Lachelle Noel, medical doctor
- Ngozika Tracey Njoku, nurse practitioner
Clinic staff charged in the scheme include:
- Shirley Ann Williams, clinic office manager
- Latonya Ann Tucker, office staff
Recruiters charged in the scheme include:
- Ritchie Dale Milligan, Jr
- Wayne Benard Kincade
- Katie Lorane Parker
- Cynthia Denise Cooks
Pharmacists charged in the scheme include:
- Wilkinson Oloyede Thomas, Calvary Pharmacy
- Christopher Kalejaiye Ajayi, Remcare Pharmacy
- Bartholomew Anny Akubukwe, Beco Pharmacy
- Nedal Helmi Naser, Brandy Pharmacy
- Ethel Oyekunle-Bubu, Ethel’s Pharmacy
A criminal complaint is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, each defendant faces up to 20 years in federal prison.
The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department. The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. Assistant U.S. Attorney Laura Montes is prosecuting the case.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Ohio. Operation Legend launched in Cleveland on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
A federal grand jury in Cleveland has returned a four-count indictment against a man on charges of drug trafficking and illegally possessing a firearm.
"This defendant is accused of illegally possessing an AR-15 rifle and large quantities of deadly narcotics," said U.S. Attorney Justin Herdman. "Additionally, this defendant has a record of previous drug trafficking and felony offenses. This case is a prime example of what we are seeking to accomplish under Operation Legend. Using federal resources and law enforcement partnerships, we are targeting drug traffickers, repeat offenders, violent criminals and those who illegally possess a firearm with intentions of causing havoc in our communities."
Edward T. Harris, 40, of Cleveland, was charged with two counts of possession with intent to distribute a controlled substance and one count of felon in possession of a firearm.
According to court documents, law enforcement agents working as part of Operation Legend executed a search warrant at Harris’ residence. During the search, agents seized 294 grams of a heroin and fentanyl mixture, 2.59 grams of crack cocaine, an AR-15 rifle and a 9mm semi-automatic pistol.
Harris is prohibited from possessing a firearm due to previous felony convictions.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Ohio Woman Pleads Guilty and Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that on September 30, 2020 HEATHER TOLSON (“TOLSON”), age 27, of Lorain, OH, pleaded guilty to Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371 and was sentenced by United States District Judge Sarah S. Vance.
As admitted by TOLSON in the Factual Basis, in the beginning of February 2017, co-defendant Jose Fernandez Morel (“Fernandez”) devised a scheme to defraud by fraudulently representing himself as an immigration attorney. Specifically, Fernandez and other coconspirators acting at his direction, created the fictitious law firm of “Micheal (sic) Browns Immigration Attorneys” with an address of 4207 Parliament Drive, Alexandria, LA 71303. Fernandez enlisted the assistance of co-defendants Esteban Ramirez, III (“Ramirez”) and TOLSON to receive funds from various individuals who were victims of Fernandez’s scheme. Ramirez and TOLSON agreed to wire via Western Union the fraudulently obtained funds they received to Fernandez in the Dominican Republic. Part of their agreement was that Fernandez would split these funds with Ramirez and TOLSON.
During the scheme, Fernandez fraudulently represented himself as an attorney named “Robert McCane” and Fernandez, Ramirez, and TOLSON represented themselves as employees with the “Micheal Browns Immigration Attorneys” law firm. Fernandez, Ramirez, and TOLSON represented to Individual A’s family members that “McCane” was an attorney associated with the “Micheal Browns Immigration Attorneys” law firm located in Alexandria, LA which also had offices in New York and Ohio. Fernandez, Ramirez, and TOLSON utilized various email accounts to communicate with Individual A’s family members in an effort to promote the scheme. For example, Fernandez, Ramirez, and TOLSON created a “Legal Services Agreement” that was emailed to Individual A’s family members which referenced a $4,980.00 fee and a $980.00 initial deposit for “attorney’s fees and cost incurred by clients.” Fernandez, Ramirez, and TOLSON obtained money from Individual A’s family members under the guise of collecting a retainer to provide legal services for Individual A and under the pretense of posting a bond to secure the release of Individual A from immigration custody.
TOLSON opened a bank account at a Chase Bank branch in Lorain, OH in order to receive fraudulently obtained payments from Individual A’s family members. Fernandez, Ramirez, and TOLSON utilized various Chase Bank locations in Lorain, OH and Western Union agent branches to conduct cash transactions to withdraw payments from Individual A’s family members. Further, Ramirez and TOLSON utilized Western Union locations to wire fraudulently obtained payments to Fernandez in the Dominican Republic. Fernandez, Ramirez, and TOLSON falsely represented themselves as employees of the U.S. Department of Homeland Security.
U.S. District Judge Sarah S. Vance sentenced TOLSON to three years of probation with eight months home confinement, ordered her to pay restitution in the amount of $8,280.00, and pay a mandatory $100.00 special assessment fee.
U.S. Attorney Peter G. Strasser praised the work of Homeland Security Investigations. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Ohio Man Stopped in Kansas with $1 Million Pleads Guilty to Federal Drug ChargeRead the Press Release
TOPEKA, KAN. – An Ohio man who was stopped in Kansas with more than $1 million in his vehicle pleaded guilty today to a federal drug trafficking charge, U.S. Attorney Stephen McAllister said.
Joseph Michael Martin, 41, Euclid, Ohio, pleaded guilty to one count of interstate travel in furtherance of drug trafficking. On Sept. 20, 2018, the Kansas Highway Patrol stopped Martin on I-70 in Ellsworth County for speeding. When troopers searched the 2016 GM pickup truck Martin was driving, they found $1,124,840 in bundles wrapped in red plastic. The bundles were concealed in metal pipes with welded caps that were in the bed of the truck.
Sentencing is set for Jan. 12. He could face up to five years in federal prison and a fine up to $250,000. McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Ohio Man Pleads Guilty to Violation of Clean Diamond Trade ActRead the Press Release
Tampa, Florida – Stanley Tipton (45, Ohio) has pleaded guilty to an Information charging him with a violation of the Clean Diamond Trade Act. Tipton faces a maximum penalty of 10 years in federal prison. His sentencing date has not yet been set.
The Clean Diamond Trade Act prohibits the import into and export from the United States of rough diamonds not regulated by the Kimberley Process Certification Scheme (KPCS), an international certification scheme for the regulation of trade in rough diamonds. One of the purposes of the KPCS is to protect the legitimate trade in rough diamonds and to prevent trade in so-called “blood diamonds,” which are diamonds produced and sold to fund rebel movements and terrorism worldwide and especially in several countries in Africa. The United States is a participating country adhering to the KPCS.
Member countries participating in the KPCS are required to use a document referred to as the Kimberley Process Certificate (KPC) in the import and export of rough diamonds, a certificate with a specified format that identifies individual shipments of rough diamonds and certifies them as being in compliance with the KPCS. The KPC is required to record the country of origin of the diamonds, the carat weight and mass of the diamonds, their value in U.S. dollars, the name of the diamond exporter or importer, and the governmental authority issuing.
According to the plea agreement and other facts presented at the plea hearing, in 2019, Tipton engaged in a series of discussions with an undercover Homeland Security Investigations special agent (UCA) to supply KPCs to the UCA, who was then posing as a broker interested in securing documents, to help smuggle up to 100 carats of diamonds into the United States. Tipton told the UCA that he had contacts in Tanzania and Namibia and could arrange for the purchase of KPCs to “legitimize” the smuggled diamonds. When informed that the UCA’s “people” desired a certificate from a particular country, such as Tanzania or Sierra Leone, Tipton assured the UCA that he could make that happen but would require additional money to “grease” people on the ground in Africa. Ultimately, Tipton provided the UCA with what appeared to be two KPCs that represented that the subject diamonds had been handled in accordance with the provisions of the KPCS for rough diamonds. One KPC bore the purported seal of the Guinean Ministry of Mines and Geology, the other KPC was purported to be from the Sierra Leone Ministry of Mineral Resources. However, both KPCs were false and fraudulent documents provided by Tipton to the UCA to assist in the importation scheme, in violation of the Clean Diamond Trade Act.
“This investigation and prosecution sets an international precedent regarding the Clean Diamond Trade Act,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “This case is the result of significant teamwork between HSI special agents and the Department of State, U.S. Customs and Border Protection, the Tampa International Airport Police and the Middle District of Florida United States Attorney Office.”
This case was investigated by Homeland Security Investigations, with the assistance of the U.S. Department of State, and the Department of Homeland Security - Bureau of Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
North Carolina Man Sentenced to 17 Years for Engaging in an Internet-Based Child Pornography ConspiracyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jarret Lea, 27, of Charlotte, North Carolina, was sentenced to 17 years in prison and 15 years of supervised release by Senior United States District Court Judge Harvey Bartle, III, for engaging in a conspiracy to advertise child pornography online. Lea was also ordered to pay a total of $33,221.45 in restitution to various victims. In April 2019, Lea pleaded guilty to one count of conspiracy to advertise child pornography.
Using Discord, an online communications application that allows users to share files and communicate via chat messages, Lea and his co-conspirators connected in private chat rooms to share child pornography and discuss how to exploit children to produce more child pornography. Using what they had learned in the chatroom, some of these men then entered legitimate live streaming websites and “groomed” children they found there into producing child pornography by performing sexual acts while being video recorded.
Judge Bartle has already imposed sentences in the following other related cases:
- Andrew Dowdle, 48, of Oswego, New York, was sentenced to 16 years in prison, followed by 15 years of supervised release. He pleaded guilty in April 2019.
- Carl Masters, 45, of Lawrence, Kansas, was sentenced to 27 years in prison, followed by lifetime supervised release. He pleaded guilty in April 2019.
- Ric Crossfield, 25, of Jamaica, New York, was sentenced to 14 years in prison, followed by 40 years of supervised release. He pleaded guilty in April 2019.
- Christian Brennan, 46, of Puyallup, Washington, was sentenced to 20 years in prison, followed by 10 years of supervised release. He pleaded guilty in April 2019.
- Sharif El-Battouty, 39, of Woodside, New York, was sentenced to 30 years in prison, followed by lifetime supervised release. He was found guilty at trial in May 2019.
- Timothy Friel, 40 of Penndel, Pennsylvania, was sentenced to 12 years in prison, followed by 15 years of supervised release. He pleaded guilty in August 2019.
- David Minnichelli, 30 of Califon, New Jersey, was sentenced to 15 years in prison, followed by lifetime supervised release. He pleaded guilty in October 2019.
- Marqueal Bonds, 22, of Chicago, Illinois, was sentenced to 22 years in prison, followed by lifetime supervised release. He pleaded guilty in March 2019.
“Jarret Lea and his co-conspirators caused irreparable harm to over 170 identified child victims,” said U.S. Attorney William McSwain. “These men shrouded their true identities in the anonymity of the internet and presented themselves as their victims’ peers in order to gain these children’s trust and exploit them sexually. The lengthy sentences handed out for this despicable behavior will not restore the innocence lost, but they do send a strong message that my Office will find and prosecute child predators, no matter where they lurk.”
“In order to ensure themselves a steady supply of new child pornography, Jarett Lea and these other predators conspired to befriend, manipulate, and sexually exploit scores of minors online,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The defendants thought they could hide behind fake names and handles and continue their violations with impunity. The FBI is proud to have fully unmasked them, shut them down, and brought them to justice.”
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 case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorneys Kevin Jayne (EDPA) and Seth Schlessinger (EDVA), and Trial Attorneys Kaylynn Foulon and Lauren Britsch, of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
New Haven Teen Who Obstructed Justice is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIAVION HUTCHINGS, also known as “Avi,” 19, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to two years of probation for obstructing justice.
According to court documents and statements made in court, in February 2019, the New Haven Police Department conducted a video-recorded interview with an individual who had just been arrested. During the interview, the individual provided information that led to the state arrest of Hutchings’ significant other (“L.W.”). A copy of the interview video was provided to L.W.’s lawyer.
In April 2019, a federal grand jury returned an indictment against the individual whose interview was video recorded.
On April 24, 2019, Hutchings viewed the interview video at the office of L.W.’s lawyer, and recorded at least 15 separate portions of the interview using her iPhone. Hutchings transmitted portions of the recordings that she made of the interview video to others via text message and through the use of Facebook Live. In those transmissions, Hutchings communicated threats of harm toward the individual who provided information about L.W.
Hutchings was arrested on a federal criminal complaint on June 3, 2019. On June 29, 2020, she pleaded guilty to one count of obstruction of justice.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Sarah P. Karwan.
Muckleshoot Tribe one of 15 recipients nationwide of grants aimed at combatting Elder Fraud and AbuseRead the Press Release
Seattle — U.S. Attorney Brian T. Moran today announced a nearly $500,000 Department of Justice grant to combat elder abuse and financial fraud targeted at seniors in a Western Washington Tribal community. The grant, awarded by the Department’s Office of Justice Programs (OJP), is part of over $9 million in funding to support these efforts throughout the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the Department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OJP’s Office for Victims of Crime.
“I’m pleased that the Muckleshoot Tribe will have these additional federal resources to protect their Elders from fraud and abuse,” said U.S. Attorney Moran. “They join Alaska Native organizations, Universities, and non-profits across the country in developing programs to protect older adults.”
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
The Muckleshoot Indian Tribe received funding in the amount of $499,848.
More information about OJP and its components can be found at www.ojp.gov.
Monroe County Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Robert Duus, age 34, of Monroe County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney, David J. Freed, the indictment alleges that Duus attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Duus attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Missouri Couple Sentenced to over 13 Years Combined in Federal Prison for Bank RobberyRead the Press Release
Fort Smith, AR – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that David Ray Powers, age 29, of Marshfield, Missouri, was sentenced on September 30,2020, to 120 months in federal prison followed by three years of supervised release on one count each of Bank Robbery and Being a felon in Possession of a Firearm and Lori Jo Stilley, age 42, of Marshfield, Missouri, was sentenced on September 17, 2020, to 41 months in federal prison followed by three years of supervised release on one count of Bank Robbery. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on January 30, 2020, Powers and Stilley traveled from Missouri to Boone County, Arkansas, for the purpose of robbing a bank. Stilley assisted in the plan to rob a bank by searching on her cellular phone for locations of banks to rob. Powers and Stilley viewed banks in order to determine if they could readily escape after a robbery. On January 30, 2020, they entered the Arvest Bank in Lead Hill, Arkansas, and stood in line waiting for a teller. Once called upon, Powers placed a hand written note on the teller’s desk that stated that this was a bank robbery and demanded money. The teller complied with the Powers demands. The Teller retrieved money from a drawer totaling $1,387.00. The Teller placed the money into a tan canvass bank bag and gave the money to Powers. Powers took the bank bag, the hand written note, and left the bank through the front door. After receiving a vehicle description, an Arkansas State Police Trooper located a vehicle that matched the description and initiated a traffic stop. After an interview, both Powers and Stilley were arrested. The Boone County Sheriff’s Office obtained a search warrant for the vehicle and searched it. Inside the vehicle was a purse containing $1,387.00 in U.S. currency. A loaded handgun was also located under the vehicle's front seat.
Powers plead guilty to an information in June of 2020 and Stilley plead guilty to an information in May of 2020.
The investigation was conducted by the FBI, the Arkansas State Police and the Boone County Sheriff’s Department. Assistant United States Attorney Claude Hawkins prosecuted the case for the United States.
Mexican National Pleads Guilty to Federal Drug and Immigration OffensesRead the Press Release
CHARLESTON, W.Va. – A Mexican man pled guilty to drug and immigration offenses today, announced United States Attorney Mike Stuart. Joel Gonzalez-Gomez, 31, of Chiapas, Mexico, pled guilty to conspiracy to distribute 50 grams or more of methamphetamine and illegal reentry of a removed alien. As a result of his guilty plea, Gonzalez-Gomez is subject to removal proceedings.
“This meth dealer with several pounds of the drug and three firearms is also an illegal alien with 5 prior removals,” said United States Attorney Mike Stuart. “Gonzalez-Gomez is a dangerous poison peddler – certainly not the kind of immigrant we welcome into our country. We embrace those who come into our country and abide by our laws, but those who don’t will face the consequences.”
On two occasions in October 2019, Gonzalez-Gomez sold methamphetamine to an informant working for the Metropolitan Drug Enforcement Network Team (MDENT). On November 20, 2019, MDENT, along with agents from the Drug Enforcement Administration (DEA) and the Department of Homeland Security (HSI), executed a search warrant at the residence of Gonzalez-Gomez in Rand. They recovered several pounds of methamphetamine and three firearms. Gonzalez-Gomez was arrested the same day at a residence in Cottageville, Jackson County, West Virginia. Gonzalez-Gomez admitted his drug trafficking activities as well as to having been deported once in 2013, twice in 2015, and once in both 2016 and 2018.
Gonzalez-Gomez faces 5 to 50 years in prison when he is sentenced on January 4, 2021.
MDENT, DEA, HSI, and the United States Postal Inspection Service (USPIS) conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00157.
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Maryland Woman Pleads Guilty to Committing Health Care FraudRead the Press Release
WASHINGTON – Janet Olatimbo Akindipe, 62, of Laurel, Maryland, pleaded guilty today in federal court to defrauding the D.C. Medicaid program out of more than a quarter million dollars.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Robert E. Bornstein, Acting Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
Akindipe pleaded guilty to health care fraud in U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Akindipe faces a likely recommended sentence of between 18 and 24 months in prison and a fine of up to $75,000. The Honorable Colleen Kollar-Kotelly took the plea and scheduled sentencing for January 22, 2021.
Akindipe has worked as a full-time employee for the U.S. Department of Health and Human Services since March 2013. At various times between November 2014 and June 2020, she also was employed by six different home health agencies to serve as a personal care aide for D.C. Medicaid beneficiaries. The home health agencies employed Akindipe to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Akindipe was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2015 and June 2020, Akindipe caused the D.C. Medicaid Program to issue payments totaling $269,808 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies purporting that she provided personal care aide services that she did not provide. She claimed she provided such services during times when she actually was working her shift at the National Institutes of Health. She claimed to work more than twenty hours in a given day on more than 300 occasions. She also claimed to provide personal care aide services in the District of Columbia on days when she was not even in the United States, but traveling abroad instead. Akindipe acknowledged paying kickbacks to Medicaid beneficiaries to get them to sign timesheets saying she provided services that she did not actually render.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program. Since October 2019, five former personal care aides have been sentenced in U.S. District Court for defrauding D.C. Medicaid. In June 2020, four additional individuals, including Akindipe, were charged in criminal complaints with health care fraud and health care false statements.
The government counts on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477].
Assistant U.S. Attorney Kondi Kleinman of the Fraud Section is prosecuting the case.
Marshall County man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – David A. Hood, of Moundsville, West Virginia, has admitted to drug charges, U.S. Attorney Bill Powell announced.
Hood, 38, pled guilty today to two counts of “Distribution of Cocaine Base, AKA “Crack” and one count of “Distribution of Methamphetamine.” Hood admitted to selling “crack” cocaine and methamphetamine in Marshall County in July and August 2019.
Hood faces up to 20 years of incarceration and a fine of up to $1,000,000 each count. 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 Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Manchester Man Sentenced to 57 Months for Drug TraffickingRead the Press Release
CONCORD – Eddil Ortez, 27, of Manchester, was sentenced to 57 months in federal prison for attempted possession of fentanyl and cocaine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning around December of 2017, a drug organization in Lawrence, Massachusetts maintained a series of telephone numbers to receive orders and distribute controlled substances, primarily fentanyl and crack cocaine. In early 2019, law enforcement officers began conducting judicially-authorized interception of communications occurring over a phone number used by the organization.
On June 19, 2019, law enforcement officers executed search warrants at locations known to be used by the organization, arrested the person believed to have been operating the phone, and seized the phone. To further identify and arrest those who were distributing drugs, the officers, pretending to be members of the drug organization, used the seized phone to communicate with individuals who were obtaining drugs from the organization.
During the evening of June 20, 2019, messages were exchanged between the seized phone and a phone belonging to Ortez. Ortez attempted to order quantities of crack cocaine and fentanyl from the organization. Ortez was directed to a parking lot in Nashua. After he provided the description of his car and his clothing, he was told to leave the drug money in the center console of the car. Investigating officers observed the car identified by Ortez arrive at the agreed-upon time for the deal. Ortez then left the car and walked toward a retail store. The officers sent a message to Ortez saying “you are all set.” Ortez returned to the car and was arrested. Ortez was in possession of the telephone that was used to arrange the drug deal.
Ortez previously pleaded guilty on June 25, 2020.
“As a consequence of his drug trafficking activities, Mr. Ortez will be spending a substantial amount of time in federal prison,” said U.S. Attorney Murray. “People who persist in distributing fentanyl and cocaine in New Hampshire should expect to suffer a similar fate. In order to deter this conduct, we will continue seek prison terms against those who are proven to be engaged in the distribution of dangerous illegal drugs.”
“Opioid abuse is at epidemic levels in New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentence serve as an example to those who distribute fentanyl and crack cocaine to the citizens of the Granite State that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
This matter was investigated by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Massachusetts State Police, Methuen Police Department, Andover, Massachusetts Police Department, Essex County Sheriff’s Office, New Hampshire State Police, Manchester Police Department, Nashua Police Department, Salem Police Department, Rockingham County Sheriff’s Office, Hudson Police Department, and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Manchester Dentist, Dental Clinics and Dental Imaging Facility Pay $300K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ABBAS MOHAMMADI, DDS, and his businesses, COLUMBIA DENTAL, P.C. and COLUMBIA ORAL MAXILLOFACIAL IMAGING, L.L.C., have entered into a civil settlement agreement with the federal and state governments and paid $300,000 to resolve allegations that they violated the federal and state False Claims Acts.
Mohammadi, a dentist and oral surgeon, is the owner of Columbia Dental, P.C. (“CDPC”), which operates 15 dental clinics throughout Connecticut, and Columbia Oral Maxillofacial Imaging Imaging, L.L.C. (“COMILLC”), a dental imaging facility in Manchester. Mohammadi and both corporations are enrolled as providers in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program. It is alleged that, from January 2012 through February 2016, Mohammadi, CDPC and COMILLC billed Medicaid for dental restoration services that were not provided or were not medically necessary. It is also alleged that, from January 2014 through November 2015, Mohammadi, CDPC and COMILLC billed Medicaid for x-ray services that were not provided by individuals who had been certified by the Dental Assisting National Board to take x-rays.
To resolve the allegations under the federal and state False Claims Acts, Mohammadi, CDPC and COMILLC paid $300,000 in order to reimburse the Medicaid program.
A complaint against Mohammadi, CDPC and COMILLC was filed in the U.S. District Court in Connecticut (U.S. ex rel. Mahoney v. Columbia Dental, P.C.. et al., No. 3:15-CV-918) under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts, which allow private parties to bring suit on behalf of the government. The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government. The relator (whistleblower), Ms. Brittany Ames Mahoney, a former employee at CDPC, will receive a share of the proceeds of the settlement in the amount of $45,000. The Court issued judgment in favor of the U.S. and the State of Connecticut against Mohammadi, CDPC and COMILLC in the amount of $300,000 pursuant to the terms of the settlement agreement.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anne F. Thidemann, and by Assistant Attorney General Joshua L. Jackson of the Connecticut Office of the Attorney General.
This matter is announced in coordination with a Department of Justice nationwide enforcement action involving more than 300 defendants in criminal and civil cases across 51 federal districts. The defendants, including more than 100 doctors, nurses and other licensed medical professionals, are alleged to have submitted more than $6 billion in false and fraudulent claims to federal health care programs and private insurers.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Man Sentenced to Prison for Armed Robbery of Two PharmaciesRead the Press Release
RICHMOND, Va. – A Henrico County man was sentenced today to 26 years in prison for the armed robbery of two pharmacies in 2019.
According to court documents, Rashard Fraierson, 42, and co-defendant Robert Graham, 41, of Henrico County, robbed the Powhatan Drug Pharmacy, and the Bremo Pharmacy, in Henrico, in order to steal narcotics, including Oxycodone, Oxycontin, and other substances.
In the first robbery, in July 2019, Graham placed a false 911 call regarding a threat of an armed person at a local high school. As law enforcement was diverted, which was Graham’s and Fraierson’s intention, Graham and Fraierson entered Powhatan Drug Pharmacy, brandished a firearm, forcibly tied up the pharmacist using zip-ties, and robbed the pharmacy of various narcotics. Before they fled, the two men stole more than $33,000 worth of drugs. The second robbery occurred in November 2019, when they used the same techniques to rob the Bremo Pharmacy, and stole more than $20,000 worth of drugs.
Fraierson had been previously convicted for three felony drug trafficking crimes in 2002, 2003, and 2015, involving cocaine and heroin.
Graham also pleaded guilty in the case and will be sentenced on October 9.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-29.
Man Apprehended on a Dinghy North of St. John Sentenced for Transporting an Illegal Alien from TortolaRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Ahmaud Rodriguez, 25, was sentenced on his conviction of transporting an illegal alien.
According to court documents filed in the case, on December 7, 2019, Rodriguez agreed to transport an illegal alien from Tortola, BVI to St. Thomas, USVI for a cash payment. Around 4:30 a.m. on December 8th, Rodriguez arrived in a small dinghy vessel at a ferry dock in Tortola, BVI where he met his illegal passenger. Rodriguez collected his fee and made his way with the passenger into U.S. waters. Meanwhile, Customs and Border Patrol (CBP) agents patrolling the waters north of St. John observed a vessel on their radar at approximately 4:40 a.m. The vessel was operating without navigation lights and accordingly, agents stopped and boarded the boat to conduct an inspection.
Upon boarding, agents observed Rodriguez and a female passenger. The passenger acknowledged that she had flown from the Dominican Republic to Tortola, BVI where she met Rodriguez and boarded his boat for the trip to St. Thomas.
District Court Judge Robert A. Molloy sentenced Rodriguez to six months of imprisonment, substituted by six months of home detention and four years of probation.
This case was investigated by the Department of Homeland Security and prosecuted by the United States Attorney’s Office of the Virgin Islands.
Louisiana United States Attorneys Announce $26,541,823 in Awards to Address Local Criminal Justice Needs and Victims Rights Issues in LouisianaRead the Press Release
United States Attorney Brandon J. Fremin, Middle District of Louisiana, United States Attorney Peter G. Strasser, Eastern District of Louisiana, and Acting United States Attorney Alexander C. Van Hook, Western District of Louisiana, jointly announce that the State of Louisiana received a total of $26,541,823 in six United States Department of Justice grants to respond to critical issues in local law enforcement and victims’ rights and services.
Three grants were awarded to the Louisiana Commission on Law Enforcement (LCLE). The first award in the amount of $23,490,366 provides funds from the federal Crime Victims Fund to enhance crime victim services in the state. The second award of $1,414,000 provides funds from the Crime Victims Fund to enhance State Victim Compensation payments to eligible crime victims. And third, $190,769 was awarded to the Louisiana Statistical Analysis Center (SAC), which is the research division of the LCLE. LSAC has been tasked with assessing how law enforcement in the State of Louisiana is meeting the challenge of the present opioid crisis.
In addition, the Louisiana Commission on Law Enforcement and Administration of Criminal Justice has been awarded $770,806. The purpose of this program is to support state and local delinquency prevention and intervention efforts and juvenile justice system improvements. Supported activities and efforts may include planning and administration and development of more effective education, training, research, prevention, diversion, treatment, and rehabilitation programs in the area of juvenile delinquency and programs to enhance the effectiveness of the juvenile justice system.
As a final matter, the East Baton Rouge Sheriff’s Office was awarded $177,123 to fund a broad range of activities to prevent and control crime based on the parish’s specific needs and conditions, and the Louisiana Department of Public Safety and Corrections was awarded $498,759 to continue implementing the Adult Reentry and Employment Strategic Planning Program.
U.S. Attorney Fremin stated, “The federal grant money distributed to our state and local partners exemplifies the Department of Justice’s commitment to provide resources to address critical issues in local law enforcement and to vigorously support victims’ rights and services. Awards, such as these, promote the continuing success of our joint federal, state and local law enforcement efforts to ensure the safety of our community and to support those citizens who have been victimized.”
U.S. Attorney Strasser stated, “The announcement of Louisiana’s awards highlights the commitment from the Department of Justice to afford law enforcement the opportunity to implement innovative programs needed to respond to critical issues in local law enforcement, victims’ rights and services and juvenile justice system services and improvements.”
Acting U.S. Attorney Van Hook stated, “Every defendant that is convicted of a federal crime is ordered to pay an assessment which goes to the Crime Victims’ Fund. Federal grants such as these that have been awarded to the Louisiana Commission on Law Enforcement are an example of how those funds are passed on to local agencies and of how justice is serving victims of crime in the State of Louisiana. We will continue to pursue justice for the people in the Western District of Louisiana and throughout the state.”
Lexington Couple and their Semiconductor Company Indicted on Charges of Theft of Trade Secrets from Norwood Semiconductor CompanyRead the Press Release
BOSTON – A naturalized U.S. citizen living in Lexington, his wife, and a company they established were charged today in a 24-count superseding indictment in connection with the theft of hundreds of files containing proprietary information from Analog Devices, Inc. (ADI), a worldwide semiconductor company headquartered in Norwood.
Haoyang Yu, a/k/a “Jack Yu,” a/k/a “Harry Yu,” a/k/a “Jack Tricon,” 41, of Lexington, and his company, Tricon MMIC LLC (Tricon), were charged with three counts of possession and attempted possession of a trade secret; two counts of smuggling; two counts of transporting stolen goods; one count of visa fraud; and one count of procuring U.S. citizenship unlawfully. Yu and his wife, Yanzhi Chen, 22, also of Lexington, were also charged with three counts of wire fraud and aiding and abetting wire fraud. Yu was previously charged by indictment in June 2019 with stealing, copying, downloading, and possessing ADI’s trade secrets.
According to the superseding indictment, Yu was born in Harbin, China, and first came to the United States in 2002 through the student visa program. He became a lawful permanent resident in June 2009, and a naturalized U.S. citizen in March 2017. From July 2014 to July 2017, Yu was employed by ADI as a principal design engineer.
As alleged in the indictment, Yu worked for ADI designing and developing parts of monolithic microwave integrated circuits (MMICs), which are used in radio, cellular and satellite communications, as well as in defense and aerospace applications. As a result of his work, Yu had access to data and information relating to ADI’s present and future product designs, schematics, manufacturing files and testing procedures. It is alleged that, while working for ADI, Yu downloaded hundreds of highly confidential schematic design and modeling files that belonged to ADI, and uploaded many of these files to his personal Google drive account. The files YU stole from ADI were worth millions of dollars.
In March 2017, approximately five months before he resigned from ADI, Yu and his wife established Tricon, which, according to its website, “specializes in wide band MMIC amplifiers,” and serves customers in “defense and aerospace, test and instrumentation, [and] satellite communications.”
On July 31, 2017, Yu allegedly resigned from ADI and signed an agreement affirming that he had surrendered all proprietary information or data. Nevertheless, in December 2018 and again in June 2019, Yu allegedly had propriety ADI files in his possession both in his Google drive account and on his personal computers. Since creating Tricon in March 2017, Yu marketed and sold approximately 20 ADI designs as his own, and even used the same Taiwanese semiconductor fabrication plant as ADI to manufacture Tricon’s MMIC parts. The superseding indictment alleges that the defendants fraudulently obtained MMIC and other semiconductor parts from the Taiwanese semiconductor fabrication plant by providing the plant with ADI’s stolen designs and other proprietary information, and furthermore concealed the fact that the designs were stolen from ADI.
Yu and Tricon also allegedly smuggled export-controlled technology from the United States to Taiwan without obtaining the necessary export license from the U.S. Department of Commerce.
Finally, the superseding indictment alleges that Yu committed visa fraud and procured U.S. citizenship unlawfully by failing to disclose material facts and information concerning the theft of ADI’s trade secrets in his Application for Naturalization (Form N-400), which he submitted to the U.S Department of Homeland Security in or about February 2017.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. All other charges each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; William Higgins, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigation, Boston Field Office; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. U.S. Customs and Border Protection, Coast Guard Investigative Service, Defense Criminal Investigative Service, the Massachusetts State Police, the Lexington Police Department and the Hingham Police Department also provided assistance with the investigation. Assistant U.S. Attorneys Amanda Beck and Jason A. Casey of Lelling’s National Security Unit and B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: In April 2022, Haoyang Yu, was acquitted by a federal jury of 18 counts of the charges alleged in the indictment. Criminal charges against the remaining defendant, Yanzhi Chen, were dismissed in June 2022.
Lehigh County Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Philip Schmaldinst, age 44, of Lehigh County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney, David J. Freed, the indictment alleges that Schmaldinst attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Schmaldinst attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Kansas Man Indicted for Threatening Communications to Kentucky Attorney GeneralRead the Press Release
FRANKFORT, Ky. - Wesley Forrest Clay, 29, of Olathe, Kan., was indicted on Thursday in the Eastern District of Kentucky, for federal charges of sending threatening communications in interstate commerce.
The indictment follows a criminal complaint which was filed last week in the Eastern District of Kentucky. The criminal complaint alleged that, on September 23, 2020, Clay called the Kentucky Attorney General’s telephone line in Frankfort that was dedicated to the Breonna Taylor investigation. On the call he stated his name, telephone number, and then said among other things, “You will die if you do not give Breonna Taylor justice. That is a threat. Try me.”
“Sending threatening communications in interstate commerce, over the telephone or via the internet, is grave conduct and can lead to potential federal prosecution,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Law enforcement simply must treat these matters very seriously.”
“Threatening harm to our elected officials is a far cry from protected-speech and subjects people to vigorous investigation and potential federal prosecution,” said Russell Coleman, United States Attorney for the Western District of Kentucky. “As we are constantly reminded there are no longer geographic lines between law enforcement agencies and districts as we work collaborate to mitigate the threat to Kentuckians.”
“Sending threatening communications not only takes an emotional toll on the victim, but it also unnecessarily drains law enforcement resources. Threats are not jokes. You will be charged and arrested with a federal crime,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office.” FBI Louisville will continue to work closely with our partners across the country to ensure elected officials can perform the duties of their office safely.”
The investigation preceding the charge was conducted by the Federal Bureau of Investigation, Louisville Field Office, with assistance from the Kansas City Field Office.
Clay’s next scheduled appearance is on October 8, 2020 at 11 a.m. in Lexington, Ky.. If convicted, Clay faces up to 5 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Any charge is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Justice Department Issues Favorable Business Review Letter to ISDA for Proposed Amendments to Address Interest Rate BenchmarksRead the Press Release
The Department of Justice’s Antitrust Division announced today that it has completed its review of the proposal by the International Swaps and Derivatives Association Inc. (ISDA) to amend its standardized model documentation for derivatives to account for the potential discontinuation of certain interbank offered rates (collectively referred to as “IBORs”). The department has concluded, based on the representations in ISDA’s letter request, including its description of certain safeguards, that ISDA’s proposed amendments to its standardized documentation are unlikely to harm competition. Therefore, the department does not presently intend to challenge ISDA’s proposed amendments to its standardized documentation for derivatives.
“ISDA’s process, including its cooperation with government regulators and its consultation-driven process for obtaining feedback from industry participants, has had the effect of clarifying the practical issues involved in planning for when LIBOR and other IBORs are no longer available and preparing for a smooth transition away from IBORs to other reference rates,” said Assistant Attorney General Makan Delrahim. “ISDA has put in place safeguards to avoid harm to competition, such as making the selection of the fallback rates voluntary, which allows contracting parties the flexibility to designate alternative competitive rates they may think are more appropriate.”
According to the department’s business review letter, ISDA’s model documents are widely used by financial institutions to engage in swaps, forwards, and other types of derivatives contracts such as interest rate and credit default swaps. These derivatives contracts incorporate various interbank offered rates (IBORS), including the London Inter-Bank Offered Rate (LIBOR). Derivatives allow financial institutions to hedge risks they incur when lending or borrowing money.
The department’s business review letter recognizes that ISDA’s proposed amendments to its standardized documents for derivatives contracts are part of a larger effort to use alternative reference rates in financial instruments in the place of IBORs. This is in part because investigations by U.S. and regulators from other jurisdictions uncovered explicit manipulation of the submissions from certain banks to administrators of LIBOR and other interest rate benchmarks. In addition, the United Kingdom’s Financial Conduct Authority, LIBOR’s regulator, has publicly stated that firms cannot rely on LIBOR being published after 2021. To account for this eventuality, ISDA worked with regulators and industry participants to propose amendments to ISDA’s standardized documentation to incorporate fallback rates and calculation methods so that market participants can, if they so choose, refer to different rates in future derivatives contracts and efficiently amend existing contracts to incorporate the different rates.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the department currently intends to challenge the action under the antitrust laws based on the information provided. The department’s conclusions in this business review apply only to ISDA’s Proposed Supplement and Proposed Protocol modifying its standardized documentation. This business review is not applicable to any other agreements, supplements, proposals, or initiatives relating to ISDA’s work. The department reserves the right to challenge the proposed action under the antitrust laws if the actual operation of the proposed conduct proves to be anticompetitive in purpose or effect.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Justice Department Awards over $9 Million to Combat Elder Fraud and AbuseRead the Press Release
The Department of Justice today awarded grants totaling $9.4 million to combat elder abuse and financial fraud targeted at seniors across the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
Approximately $7.9 million of the funds were awarded to jurisdiction and service providers in the United States under two of Office of Justice Programs' (OJP) Office for Victims of Crime (OVC) grant programs. OJP’s National Institute of Justice (NIJ) awarded the remaining $1.4 million for related research projects.
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OVC.
FY 2020 grants awarded by OVC and NIJ further the department's mission and priorities by funding direct victim services and research projects that enhance the field's response to victims of elder abuse and financial exploitation. Specific programs being funded include the following:
- OVC’s Enhancing Services for Older Victims of Abuse and Financial Exploitation program awards nearly $6 million to 12 organizations to support communities in providing services to older victims of abuse and exploitation using trauma-informed approaches that protect the safety and confidentiality of victims.
- OVC’s Training for Law Enforcement to Improve Identification of and Response to Elder Fraud Victims program (previously announced) awarded over $1.9 million to provide training and technical assistance to enhance law enforcement's ability to identify elder fraud victims, connect those victims with available services, and bring the fraudsters to justice.
- NIJ’s Research on the Abuse, Neglect, and Exploitation of Elderly Individuals program awarded over $1.4 million to two recipients to fund research projects to, respectively, better differentiate physical abuse of elderly individuals from accidental injury and to improve the reporting of elder abuse.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/elderabusefactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
Jacksonville Man Sentenced to More Than 12 Years in Federal Prison for Selling CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Darryle Lavance Evans (47, Jacksonville) to 12 years and 7 months in federal prison for distributing cocaine. At the time Evans committed this offense, he was on federal supervised release resulting from a previous federal drug trafficking conviction. At today’s hearing, Judge Davis also revoked Evans’s federal supervised release, and sentenced him to 5 years in federal prison, to run concurrent with the other sentence.
Evans had pleaded guilty on July 16, 2019.
According to court documents, in 2010, Evans was sentenced to 10 years in federal prison for distributing cocaine base, followed by a five-year term of supervised release. Evans was released from federal prison in April 2018, and, on November 8, 2018, he sold cocaine to a confidential informant working for the FBI. The informant and the person Evans identified as his supplier for the cocaine were also both on federal supervised release for drug offenses. Because of Evans’s extensive criminal history, he was designated as a Career Offender at sentencing.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Indictment Charges 8 Hartford County Residents for Roles in Northeast Burglary SpreeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, on September 15, 2020, a federal grand jury in Hartford returned a six-count indictment charging the following individuals with offenses related to their involvement in an extensive commercial burglary spree:
PAIGE JAMES, also known as “Ishaya James,” 27, of Hartford
JAHLIIL PARROTT, also known as “Stretch,” 23, of Windsor
ANDRES BARCLETT, also known as “Coolie,” 26, of Hartford
AYSIA RYAN, 21, of Windsor
WILLIAM TISDOL, 20, of Hartford
JORDAN BRAITHWAITE, 23, of New Britain
JEZENIA MILLER, 21, of Hartford
TASHANIQUE BLIZZARD, 25, of HartfordThe indictment stems from “Operation American Steal,” a long-term multi-agency investigation into numerous “grab and go” thefts from various retail fashion stores in Connecticut and nearby states. A “grab-and-go” scheme is a type of theft where one or more perpetrators enter a retail store, grab as many items of clothing or other goods as they can carry, leave the store without paying for the merchandise, and depart in a waiting getaway vehicle.
The indictment alleges that the eight defendants were part of a network of individuals who burglarized Polo Ralph Lauren, T.J. Maxx, Balenciaga, Burberry, Macy’s, Marshalls, Dick’s Sporting Goods, Tommy Hilfiger and other stores in Connecticut, Massachusetts, New Hampshire, Vermont, and New York. They then transported the stolen merchandise to Connecticut and sold the items on the internet or the street.
The indictment charges each of the defendants with one count of conspiracy to transport and possess stolen property, an offense that carries a maximum term of imprisonment of five years. In addition, James, Parrott, Barclett, Braithwaite and Blizzard are each charged with one or more counts of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years on each count.
Blizzard, Braithwaite, Miller and Tisdol have been arrested, and James, Parrott, Barclett, and Ryan are being sought by law enforcement.
Citizens with knowledge of the whereabouts of James, Parrott, Barclett and Ryan, or with information that may be helpful the investigation of this matter, are encouraged to call the FBI at 203-996-4132 or 860-993-5499.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford, New Canaan, Wrentham (Mass.), Auburn (Mass.) and Nassau County (N.Y.) Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Brendan Keefe.
Illegal Immigrant Formerly Living in Abbeville Sentenced for Distributing Heroin and CocaineRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Jesus Silverio Cervantes, 36, an illegal immigrant from Mexico who formerly lived in Abbeville, Louisiana, has been sentenced. United States District Judge Dee Drell sentenced Cervantes to 120 months (10 years) in prison followed by 5 years of supervised release for possession of heroin with intent to distribute.
Jesus Silverio Cervantes was indicted on May 12, 2011 and charged with conspiracy to possess with intent to distribute cocaine and heroin. According to documents introduced in court, Cervantes and other co-conspirators operated a cocaine and heroin drug trafficking organization from a residence in Abbeville, Louisiana from on or about January 1, 2008 until March 1, 2011. Cervantes and other co-conspirators and members of the drug trafficking organization received not less than five kilograms of cocaine and not less than one kilogram of heroin at this residence for distribution in the Western District of Louisiana and elsewhere, including the greater Baton Rouge, Louisiana area. Before Cervantes was arraigned on these charges he disappeared and remained a fugitive until August 16, 2018, when he was arrested by law enforcement officers in Tacoma, Washington. Cervantes pled guilty to the charge on January 27, 2020.
In addition, as a result of being convicted on the charges above, Cervantes was in violation of his probation from a previous conviction in the Western District of Louisiana for being an illegal alien in possession of a firearm (2007). For this violation, Cervantes was sentenced to an additional 6 months in prison. This sentence will run consecutive to the sentence imposed for possession of heroin with intent to distribute.
The DEA and Department of Homeland Security - Bureau of Immigration and Customs Enforcement investigated the case. Assistant U.S. Attorney J. Luke Walker prosecuted the case.
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Hudson County Man Sentenced to One Year in Prison for Role in Car Accident/Insurance Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 12 months and one day in prison for his role in an automobile accident scheme in which health care practitioners fabricated or exaggerated accident victims’ injuries to support fraudulent insurance claims to Personal Injury Protection (PIP) insurance plans for medically unnecessary services, U.S. Attorney Craig Carpenito announced.
Luis G. Aguirre, 57, previously pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to commit health care fraud. Judge Chesler imposed the sentence today by videoconference.
According to documents filed in the case and statements made in court:
Aguirre helped to orchestrate an automobile accident scheme in Bergen County, New Jersey, by acting as a “runner” who identified and recruited accident victims to the scheme. Aguirre subsequently introduced the victims to various chiropractors, medical imaging centers, and others, who billed PIP insurance plans for medically unnecessary services.
Aguirre and an employee from an auto body shop in West New York, New Jersey, (Individual-1) identified and recruited individuals who had been in car accidents, finding them through word of mouth in the community and through relationships with health care providers in northern New Jersey. Aguirre paid Individual-1 for each accident victim that Individual-1 helped identify and recruit to the scheme. Individual-1, in turn, paid accident victims for participating in the scheme. Aguirre also ensured that the victims had filed police reports to support subsequent insurance claims.
Aguirre then directed the accident victims to visit specific health care providers to obtain medically unnecessary medical exams and services, such as X-rays and MRIs, for fake or exaggerated injuries that they supposedly suffered during the automobile accidents.
Aguirre was paid approximately $500 in cash by the health care providers for each individual accident victim that he delivered. Aguirre thereby caused health care providers to submit insurance claims to PIP insurance plans on behalf of the accident victims.
For example, on Sept. 25, 2018, an individual from North Bergen, New Jersey, (Individual-3) was involved in an automobile accident in Elizabeth, New Jersey. Based on a police report of the incident, the accident was minor: Individual-3 was rear-ended by another car when both were stopped at a red light. According to the police report, Individual-3 refused medical treatment at the scene, stating that Individual-3 would seek separate medical attention. At the time of the accident, Individual-3 had an automobile insurance policy through Auto Insurer-1, which included PIP coverage.
Aguirre learned from Individual-1 that Individual-3 was willing to participate in the scheme in exchange for cash payment. On Oct. 12, 2018, Aguirre directed Individual-3 to visit the proprietor (Individual-2) of an MRI Center in Rochelle Park, New Jersey, where Individual-3 underwent a series of medically unnecessary X-rays. On Oct. 16, 2018, the MRI Center billed Individual-3’s PIP insurance policy.
Aguirre’s participation in the conspiracy caused an estimated loss to PIP insurance plans of over $250,000, while the total loss caused by the conspiracy exceeded $3.5 million.
In addition to the prison term, Judge Chesler sentenced Aguirre to three years of supervised release and ordered him to pay restitution of $53, 710.
U.S. Attorney Carpenito credited special agents of the Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of the FBI, under the direction Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit at the U.S. Attorney’s Office in Newark.
Hattiesburg Man Pleads Guilty under Project EJECT to Violent Robbery of BusinessRead the Press Release
Hattiesburg, Miss. – Kedrick Lee, 23, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to violently robbing a business in Hattiesburg, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 31, 2019, Lee and a criminal associate, D’Andre Garry, robbed a Family Dollar store located in Hattiesburg, Mississippi. As Lee held the cashier at gunpoint, his co-defendant emptied the cash register. The robbery was captured by store surveillance and Garry was quickly apprehended by Hattiesburg Police Department officers.
Lee will be sentenced by Judge Starrett on January 12, 2021, at 9:45 a.m. He faces a maximum penalty of 20 years in prison and a $250,000 fine. Co-defendant Garry pled guilty on January 9, 2020, and was sentenced on August 18, 2020, to 50 months in federal prison followed by 3 years of supervised release
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Greece Man Sentenced for Threatening to Kill Senator Charles Schumer and Congressman Adam SchiffRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Salvatore Lippa II, 57, of Greece, NY, who was convicted of two counts of threatening a United States official, was sentenced to serve six months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
According to Assistant U.S. Attorney Sean C. Eldridge, who handled the case, on January 23, 2020, the defendant called the Washington D.C. office of Congressman Adam Schiff at approximately 8:20 p.m. and left a threatening voicemail message. Lippa threatened to assault and murder Congressman Schiff. Part of the message stated, “I dare you to come to New York, because I will put a bullet in your (expletive) forehead.” The defendant admitted that he made the threatening call because he was upset about impeachment proceedings against President Trump.
On February 4, 2020, Lippa made a similar call to the Albany, New York office of Senator Charles Schumer. The defendant once again left a voicemail message threatening to assault and murder Senator Schumer. The defendant stated: “let me tell you something, somebody wants to assassinate you, I'm going to be the driver.” Lippa admitted that at the time of that call, the Senate was set to vote on the Articles of Impeachment against President Donald Trump brought by the House of Representatives on the next day, February 5, 2020.
The sentencing is the result of an investigation by the United States Capitol Police, under the direction of Chief Steven A. Sund, with assistance from the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the United States Marshals Service, under the direction of Marshal Charles Salina.
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Franklin County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Damion Phillip Gress, age 24, of Franklin County, was indicted by a federal grand jury for offenses involving the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that Gress persuaded and used a minor to produce images of child pornography between August 2015 and October 2016 with respect to two separate victims. Gress is also alleged to have received images of child pornography during that time period and to have possessed images of child pornography on August 12, 2019. The four-count indictment also includes a notice of the Government’s intent to forfeit all images of child pornography and the electronic devices associated with those images.
This case was investigated by the Federal Bureau of Investigations and the Pennsylvania State Police. Assistant United States Attorney James T. Clancy is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty for use of a minor to produce child pornography is 30 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years and a term of supervised release after imprisonment. Receipt of child pornography carries a maximum term of imprisonment of 20 years, a five-year mandatory minimum prison sentence, a $250,000 fine and a period of supervised release after imprisonment. Possession of child pornography carries a maximum 10-year prison term, a $250,000 fine and a period of supervised release after imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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