Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 18 August 2020
Justice Department Files Lawsuit Against Tampa, Florida, Towing Company for Unlawfully Selling Car Belonging to Deployed ServicememberRead the Press Release
The Justice Department today filed a lawsuit in the Middle District of Florida alleging that Target Recovery Towing Inc. and Target Recovery & Transport Inc. (together “Target”) violated the Servicemembers Civil Relief Act (SCRA), by failing to obtain a court order before auctioning off a car belonging to a U.S. Marine Corps Sergeant who was deployed overseas.
The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits towing companies from auctioning off servicemembers’ vehicles without a court order.
The law places the burden on towing companies and other lienholders to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Target on notice that the owner of the vehicle was a servicemember, including that the Marine Corps Sergeant’s car had at least one military decal, military documents were in the car, her address of record was at a U.S. Marine Corps Base, and she obtained her vehicle loan through Navy Federal Credit Union.
“Imagine returning home after honorably serving your country only to find that your sole means of transportation and its contents are gone and lost to you forever as a result of a towing company’s callous disregard of the law,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Justice Department is committed to protecting the rights of the men and women in our Armed Forces, and putting a stop to these unlawful business practices.”
“The law is clear and unequivocal,” said Maria Chapa Lopez, U.S. Attorney for the Middle District of Florida. “We owe it to all military servicemembers to vigorously protect their rights while they are deployed protecting our rights and our freedom.”
In addition to seeking damages for the servicemember, including the value of the auctioned vehicle and its contents, the Justice Department is seeking to enjoin Target from illegally auctioning off servicemembers’ vehicles in the future in violation of the SCRA. The lawsuit also seeks civil penalties against the defendants.
This lawsuit resulted from a referral to the Justice Department from the United States Marine Corps. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Justice Department Files Lawsuit Against Father & Son Moving & Storage in Billerica, Massachusetts, for Unlawfully Auctioning Off Belongings of Deployed ServicememberRead the Press Release
The Justice Department today filed a lawsuit in the District of Massachusetts alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage (Father & Son), violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s two storage units while he was deployed overseas.
The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits storage companies from auctioning off servicemembers’ belongings without a court order. The lawsuit further alleges that among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin who was killed in military action, his grandfather’s military service medals, a dresser that was handmade by his great-grandfather, and personal photographs.
“Congress enacted the Servicemembers Civil Relief Act to protect the patriots who protect all of us by serving in our nation’s armed forces. The Servicemembers Civil Relief Act outlawed the kind of conduct alleged here, and for good reason. No individual or organization should be able to get away with the kind of devastation this young man suffered when he returned home from an overseas deployment and learned that many of his most valued family mementos were gone. The law protects servicemembers from losing their property, including items of great sentimental value, because of their service,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice is filing this lawsuit today to ensure that this servicemember receives just compensation and to prevent this from happening to another member of our military. We must and will put an end to these unlawful business practices.”
“This servicemember was called overseas to serve our country and returned home to find his personal possessions, family heirlooms and military awards auctioned off to the highest bidder,” said U.S. Attorney Andrew E. Lelling. “That is unacceptable. We will continue to protect the rights of servicemembers who dedicate their lives to preserving our security and freedom.”
The law places the burden on moving and storage companies and other lienholders to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Father & Son on notice that the Technical Sergeant was a servicemember, including that he told an agent of Father & Son that he was in the military. The complaint also alleges that Father & Son picked up and packed the Technical Sergeant’s belongings at Hanscom Air Force Base while he was present and wearing his U.S. Air Force uniform. The lawsuit asserts that Father & Son sent correspondence to the Technical Sergeant at his previous address of record at Hanscom Air Force Base while he was stationed overseas.
In addition to seeking damages for the servicemember, including the value of the auctioned items, the Justice Department is seeking to enjoin Father & Son from illegally auctioning off servicemembers’ possessions in the future in violation of the SCRA. The lawsuit also seeks a civil penalty.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Justice Department Files Lawsuit Against Father & Son Moving & Storage for Unlawfully Auctioning off Belongings of Deployed ServicememberRead the Press Release
BOSTON – The Justice Department filed a lawsuit today alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage, violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s storage units while he was deployed overseas.
The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits storage companies from auctioning off servicemembers’ belongings without a court order. The lawsuit alleges that included among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin who was killed in military action, his grandfather’s military service medals, a dresser that was handmade by his great-grandfather and personal photographs.
The SCRA places the burden on moving and storage companies to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Father & Son on notice that the Technical Sergeant was a servicemember, including that he told an agent of Father & Son that he was in the military. According to court documents, Father & Son picked up and packed the Technical Sergeant’s belongings at Hanscom Air Force Base while he was present and wearing his U.S. Air Force uniform. The lawsuit asserts that Father & Son sent correspondence to the Technical Sergeant at his previous address of record at Hanscom Air Force Base while he was stationed overseas.
“This servicemember was called overseas to serve our country and returned home to find his personal possessions, family heirlooms and military awards auctioned off to the highest bidder,” said Untied States Attorney Andrew E. Lelling. “That is unacceptable. We will continue to protect the rights of servicemembers who dedicate their lives to preserving our security and freedom.”
“Congress enacted the Servicemembers Civil Relief Act to protect the patriots who protect all of us by serving in our nation’s armed forces. The Servicemembers Civil Relief Act outlawed the kind of conduct alleged here, and for good reason. No individual or organization should be able to get away with the kind of devastation this young man suffered when he returned home from an overseas deployment and learned that many of his most valued family mementos were gone. The law protects servicemembers from losing their property, including items of great sentimental value, because of their service,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice is filing this lawsuit today to ensure that this servicemember receives just compensation and to prevent this from happening to another member of our military. We must and will put an end to these unlawful business practices.”
In addition to seeking damages for the servicemember, including the value of the auctioned items, the Justice Department is seeking to enjoin Father & Son from illegally auctioning off servicemembers’ possessions in the future in violation of the SCRA. The lawsuit also seeks a civil penalty. This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office.
The Department’s enforcement of the SCRA is conducted by U.S. Attorney’s Offices and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the Department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
This matter is being handled by Assistant United States Attorney Torey B. Cummings of Lelling’s Civil Rights Unit and Trial Attorney Tanya Kirwan of the Civil Rights Division’s Housing and Civil Enforcement Section.
Jamestown Woman Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Brandi M. Whitford, 24, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to maintaining a drug-involved premises. The charge carries a maximum penalty of 20 years in prison, and a $500,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between September 2019 and October 23, 2019, the defendant and co-defendant Richard E. Kinsey Jr. used a residence on Newland Avenue in Jamestown, to manufacture, distribute, and use methamphetamine. On September 6, 2019, investigators executed a New York State search warrant at the residence, recovering three firearms. A fourth firearm was thrown from the residence during the execution of the search warrant. Investigators also recovered methamphetamine throughout the residence, approximately $12,045 in US currency, assorted ammunition, and drug paraphernalia, including scales and packaging material.
Charges remain pending against defendant Kinsey. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; and the Jamestown Metro Drug Task Force, under the direction of Acting Jamestown Police Chief Timothy Jackson.
Sentencing will be scheduled at a later date.
# # # #
Jamaican Man Sentenced to More Than Five Years in Federal Prison for Lottery SchemeRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Darryl Cleon Forbes (27, Jamaica) to five year and six months in federal prison for conspiracy to commit wire fraud. The court also ordered Forbes to forfeit $2.4 million, and pay $1,122,957 in restitution.
Forbes had pleaded guilty on November 18, 2019.
According to court documents, from early 2015 until December 2017, Forbes and others operated a fraudulent sweepstakes scheme in Jamaica, the Middle District of Florida, and elsewhere. Forbes and his co-conspirators, posing as government officials from the Federal Bureau of Investigation or the Department of Treasury, falsely informed victims in the United States that they had won a prize in a sweepstakes and had to send money via wire transfers or other methods to pay various fees and taxes necessary to retrieve their prize. Forbes and his co-conspirators often targeted victims who were elderly and more susceptible to fraud. After Forbes and his co-conspirators had successfully induced a victim to send money, they telephoned the victim again, repeatedly, to “reload” him or her, making further false and fraudulent misrepresentations in an effort to induce the victim to send more money. The conspirators would often tell the victims that they had to send additional fees and taxes to ensure the safe delivery of the prize. This practice would continue as long as the victim continued to send money. No victim of the conspiracy ever received a promised prize. Forbes and his co-conspirators kept all of the funds for their own personal benefit.
Forbes and his co-conspirators also recruited residents in the United States to open bank accounts to deposit and transfer the fraudulently obtained funds. To facilitate the scheme, Forbes and his co-conspirators obtained personal identifying information of victims and then transferred, or directed others to transfer, victim funds to co-conspirators in Jamaica and elsewhere for the purpose of making ATM withdrawals.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Jay Taylor and Ashley Washington.
Hattiesburg Man Sentenced to over 4 Years in Prison Under Project EJECT for Violent Robbery of BusinessRead the Press Release
Hattiesburg, Miss. – D’Andre Garry, 23, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 50 months in prison, followed by three years of supervised release, for committing Hobbs Act Robbery, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Garry was also ordered to pay a $3,250 fine.
On March 31, 2019, Garry and a criminal associate robbed a Family Dollar store located in Hattiesburg, Mississippi. As Garry’s associate held the cashier at gunpoint, Garry emptied the cash register. The robbery was captured by store surveillance and Garry was quickly apprehended by Hattiesburg Police Department officers.
Garry was indicted for this offense on September 25, 2019. He pled guilty before Judge Starrett on January 9, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case was being prosecuted by Assistant United States Attorney Andrew W. Eichner.
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.
Gregg County Man Sentenced for East Texas Drug Trafficking CrimesRead the Press Release
TYLER, Texas – A 44-year-old Longview, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Correy James Rider was found guilty by a jury on Nov. 6, 2019, of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and crack cocaine. Rider was sentenced to 360 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, in 2017, law enforcement began an investigation into drug trafficking activities in Longview, Texas. During the investigation, police obtained an undercover recording of Rider participating in the sale of methamphetamine and a firearm at a Longview motel. In January 2018, Rider and a co-defendant were arrested at a different motel in possession of methamphetamine, cocaine base, surveillance equipment, digital scales, and other distribution paraphernalia. Further investigation revealed that Rider and his co-conspirators used various motels and residences throughout the city to conduct illegal drug transactions. Rider and 11 others were indicted by a federal grand jury on June 21, 2018, and charged with violations of federal law.
The case was investigated by the Federal Bureau of Investigation – Dallas Division, Longview Police Department, Gregg County Organized Drug Enforcement (CODE) Unit and Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Lucas Machicek and Ryan Locker.
Gary Man Pleads Guilty to Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
HAMMOND- Varnell Dixon, 24, of Gary, Indiana, pled guilty to possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
In the plea agreement, the parties agreed that the Court should impose the statutory mandatory minimum five year term of imprisonment.
In the plea agreement, Dixon admitted that on December 28, 2019, he was driving a rented vehicle speeding eastbound on Interstate 80/94. At the time, he possessed a fully loaded Glock nine millimeter firearm, four bags of marijuana, some of which he intended to distribute, and $323.00 in small bills. Upon being pursued by the Indiana State Police, Dixon attempted to elude the police at a high rate of speed and ultimately exited onto the Cline Avenue ramp. Dixon lost control of the vehicle, causing it to leave the roadway and roll over several times. Dixon was thrown from the vehicle and arrested by police.
“There have been several high speed pursuits in the recent months that have garnered media attention in Northwest Indiana,” said United States Attorney Thomas L. Kirsch. “Some of these chases have occurred solely within Indiana and some have crossed state lines. This type of criminal activity – fleeing police and putting many lives at risk while doing so – is entirely intolerable. I have instructed federal law enforcement and my office to charge these type of cases federally, whenever possible, and to seek appropriate sentences for these criminals. We are fortunate in Northwest Indiana to have so many outstanding law enforcement officers and departments. Although many separate municipalities, they all work together for one purpose, to keep crime down in Northern Indiana. We will do everything we can to deter this criminal conduct.”
This case is the result of the investigative efforts of the Federal Bureau of Investigation Gang Response Investigative Team and the Indiana State Police. This case is being prosecuted by Assistant U.S. Attorney Joseph A. Cooley.
Fugitive Bethlehem Drug Dealer Arrested at Miami International AirportRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Timothy Stanley Wilkins, 41, of Bethlehem, PA was arrested last night in Miami, Florida. Wilkins was a fugitive from justice on federal drug trafficking and firearms offenses. After being charged, Wilkins fled the country and was apprehended by federal agents at Miami International Airport, while attempting to re-enter the United States.
On March 11, 2020, Wilkins was charged in a three-count Indictment with possession with intent to distribute fentanyl and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. He is scheduled to have his initial appearance today in the Southern District of Florida and then will be extradited to the Eastern District of Pennsylvania.
“As alleged in the Indictment, charging him with firearms and drug offenses, Wilkins has a brazen disrespect for the law,” said U.S. Attorney McSwain. “In response to the charges, he fled the country, but all that did was postpone the inevitable. If you are charged in the Eastern District of Pennsylvania with a federal offense, there is no place to hide, here or abroad. We will not rest until we find you and hold you accountable.”
“I would like to take an opportunity to recognize the cooperation among our law enforcement agencies responsible for getting a dangerous drug dealer off the streets,” said Northampton County District Attorney Terence P. Houck. “It is important for people to know that together, we will investigate, arrest and convict these law breakers by exhausting all federal and state efforts in the pursuit of this cause.”
“Timothy Wilkins fled to evade prosecution on state charges brought against him,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Now he’s in the federal system, indicted on these drug and gun charges and safely in custody. The FBI and our partners at the Bethlehem Police Department will continue to work together to protect our community from those engaged in illegal and dangerous activity.”
If convicted, the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum 15 years imprisonment, 8 years supervised release, a $1,500,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the City of Bethlehem Police Department, and the Northampton County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four found in Northern Ohio indicted for illegal reentry into U.S.Read the Press Release
A federal grand jury sitting in Cleveland has indicted four individuals in the Northern Ohio area on charges of illegal reentry. These are separate cases and are not related.
Ervin David Carias Raudales, aka Carlos Jose Heraso, age 38, a citizen of Honduras, was indicted on one charge of illegal reentry into the United States after having been previously removed. Carias Raudales, who has been removed four times prior (the last time was on or about July 27, 2019), was found in Ashtabula, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Andrea Isabella.
Samuel Hernandez-Hernandez, age 22, a citizen of Guatemala, was indicted on one charge of illegal reentry into the United States after having been previously removed. Hernandez-Hernandez, last removed on or about February 12, 2019, was found in Columbiana County, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Vanessa V. Healy.
Fabian Chavez-Canales, age 32, a citizen of Mexico, was indicted on one charge of illegal reentry into the United States after having been previously removed. Chavez-Canales, last removed on May 17, 2016, was found in North Royalton, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Bryson Gillard.
Rene Cabrera-Ramos, age 42, a citizen of El Salvador, was indicted on one charge of illegal reentry into the United States after having been previously removed. Cabrera-Ramos, last removed on March 11, 2011, was found in Cleveland, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Bryson Gillard.
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, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
Fort Thompson Man Sentenced to 102 Months in Federal Prison for Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man was sentenced in Pierre federal court on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Devon Wayne Saul, age 27, was sentenced to 102 months in federal prison, to be followed by 5 years of supervised release. Saul was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on August 18, 2019, Saul knowingly engaged in a sexual act with a victim while the victim was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act, and Saul knew the victim was incapacitated. In early morning hours of August 18, the victim was drinking with friends. The victim drank too much and became incapacitated. Saul and one other person carried the victim to his vehicle and placed her inside the vehicle. After placing the victim in his vehicle, Saul left the others and was alone with the victim when he perpetrated the sexual assault inside his vehicle.
The investigation was conducted by the Federal Bureau of Investigation and the Crow Creek Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Saul was remanded to custody to serve his sentence.
Former Montgomery High School Assistant Principal Pleads Guilty to Federal Fraud ChargeRead the Press Release
Montgomery, Alabama – On Monday, August 17, 2020, Walter James, III, a 49-year-old from Montgomery, Alabama, and former Montgomery Public Schools employee, pleaded guilty to wire fraud, announced United States Attorney Louis V. Franklin, Sr., FBI Special Agent in Charge James Jewell, and Alabama Attorney General Steve Marshall.
According to court documents, while he was employed by the Montgomery Public Schools (MPS) system, James held himself out to be the owner of a consulting company, "ED-ONE Professional Development Services." He then collaborated with others at his high school and the MPS central office to submit fraudulent invoices for consulting or professional development services. The invoices listed vague descriptions of the types of services that the vendor supposedly rendered. For example, the invoices would include descriptions such as “books & materials,” “consulting,” or “three-day workshop.” However, James did not provide any professional development services or products of any kind to MPS, nor did any of the purported consulting companies on the corresponding invoices that James submitted for payment. As a result of this scheme, the submission of false invoices from August 2016 to April 2019 gave rise to a loss of more than $250,000.00 to MPS.
James was charged with wire fraud on March 3, 2020. His sentencing hearing will be scheduled in the next few months and he is facing up to 20 years in prison and a significant fine. He will also be subject to an order of restitution for the stolen money.
The Federal Bureau of Investigation (FBI), the Alabama Attorney General’s Office, the Alabama Ethics Commission, and the Alabama Department of Examiners of Public Accounts investigated this case. Assistant United States Attorneys Thomas Govan and Jonathan Ross are prosecuting the case.
Former Fort Polk Soldier Sentenced to Life in Prison for Sexually Abusing a MinorRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Ronald W. Allen, Jr., 41, was sentenced by United States District Judge Jay C. Zainey to spend life in prison for sexual abuse of a minor. Allen was also ordered to pay restitution in the amount of $72,000.
After a two-day trial in August 2019, a federal jury handed down a guilty verdict on all counts against Ronald W. Allen, Jr., a former Fort Polk Army Soldier, for sexually abusing a minor under the age of 12 years old.
According to evidence presented during trial, from April 2012 until June 2016 the defendant sexually abused the minor on numerous occasions on the Fort Polk Military Base, where the defendant lived. The abuse was exposed when the minor gave details to an individual at a school she was attending in a community near Fort Polk. Local police were later notified, the victim was interviewed, and a warrant was executed on the defendant’s residence. Agents obtained DNA evidence from where abuse occurred and matched it to the defendant’s DNA.
“This sentence sends a clear message that those who abuse children will be brought to justice. These crimes are particularly heinous because children put their trust in adults and especially those who serve in the United States Military. This office will make it a priority to continue to prosecute these difficult cases to help provide safer communities for all of our children,” said Acting U.S. Attorney Van Hook.
The FBI, U.S. Army Criminal Investigation Command, and the Vernon Parish Sheriff’s Department conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Daniel J. Vermaelen prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
# # #
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Firearms thief sentenced to prison for pawning dozens of stolen gunsRead the Press Release
BRUNSWICK, GA: A Glynn County woman will spend nearly five years in federal prison for stealing and selling dozens of firearms.
Elaina Carter, 38, of Brunswick, was sentenced to 57 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Possession of Stolen Firearms, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Carter also will be required to serve three years of supervised release after completion of her prison sentence. There is no parole in the federal system.
“Elaina Carter could be the poster child for demonstrating that theft is the typical route for firearms making it into the hands of criminals,” said U.S. Attorney Christine. “It’s fortunate that she sold these stolen guns to licensed dealers, and that vigilant law enforcement officers brought an end to her serial thefts.”
According to court documents and testimony, Carter stole and pawned numerous items from June 2018 to January 2019, including 37 firearms. She has previous convictions on state charges in Glynn County for burglary, theft by receiving, and theft by deception.
“The Bureau of Alcohol, Tobacco, Firearms and Explosives will continue to dedicate federal resources to eradicate criminal activities in communities we serve,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
The case was investigated by the ATF and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Federal Indictment Charges Two Men with Sex TraffickingRead the Press Release
CHICAGO — Two men have been indicted on federal sex trafficking charges for allegedly recruiting three victims, including a child, to engage in commercial sex acts by means of force, threats of force, fraud, and coercion.
KENDALL GUYTON, 25, of Joliet, and GREGORY INGRAM, 41, of Richton Park, are charged with conspiring to traffic three victims for the purposes of commercial sex, according to an indictment returned in U.S. District Court in Chicago. One of the victims was under 18 years old when Guyton and Ingram enticed her to engage in a commercial sex act for the defendants’ financial benefit, the indictment states. The alleged trafficking occurred in 2017 and 2018.
Both defendants are currently in law enforcement custody. Ingram has pleaded not guilty and is scheduled to appear for a detention hearing on Aug. 25, 2020, before U.S. District Judge Sara L. Ellis. Guyton is being held in state custody on an unrelated charge. His arraignment on the federal charge has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Carol Stream Police Department, Lisle Police Department, Will County Sheriff’s Office, Joliet Police Department, and Richton Park Police Department. The government is represented by Assistant U.S. Attorneys Abigail Peluso and Christine M. O’Neill.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges in the indictment are punishable by a maximum sentence of life in prison, while a mandatory minimum of 15 years in prison could also be applicable. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Eight Men Arrested in Sex Trafficking OperationRead the Press Release
United States Attorney Ron Parsons announced that the South Dakota Division of Criminal Investigation (DCI), South Dakota Internet Crimes Against Children Task Force, and the U.S. Homeland Security Investigations (HSI) conducted a joint sex trafficking operation during the 2020 Sturgis Motorcycle Rally. The operation began on August 7, 2020, and continued through August 13, 2020.
As a result, the following eight men were arrested:
Robert Lee Goodwill, Jr., 20, Rapid City, SD - Attempted Commercial Sex Trafficking of a Minor
Cody Wayne Hopkins, 29, Montgomery, PA - Attempted Enticement of a Minor Using the Internet
Michael Ray Hudson, 32, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
Travis John McDonald, 28, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
William Nicholas Riley, 60, Sturgis, SD - Attempted Enticement of a Minor Using the Internet
Kevin William Clements, 22, Claysville, PA - Attempted Commercial Sex Trafficking of a Minor
Darren Wilber Harrison, 25, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
Christopher Covey Dale Truax, 33, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
The mandatory minimum penalty upon conviction for Attempted Commercial Sex Trafficking of a Minor is 15 years if victim is under 14 years of age, and 10 years if between 14-17 years of age, up to life in federal prison; a $250,000 fine; any term of years, not less than 5, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent. Restitution may also be ordered.
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years up to life in federal prison; any term of years, not less than 5, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent. Restitution may also be ordered.
The charges are merely accusations and all eight defendants are presumed innocent until and unless proven guilty.
The Agencies involved in the operation were DCI, HSI, the U.S. Attorney’s Office, Rapid City Police Department, and the Pennington County Sheriff’s Office.
The cases are being federally prosecuted by Assistant U.S. Attorney Sarah B. Collins.
The U.S. Attorney’s Office would like to extend its appreciation to all law enforcement partners involved in the investigations for their efforts and continued cooperation.
Eagle Butte Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Jocelyn Chasing Hawk, a/k/a Jocelyn Bear Eagle, age 39, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Chasing Hawk was indicted by a federal grand jury on January 23, 2019. A three-count Superseding Indictment was filed on June 1, 2019. She pled guilty on June 4, 2020.
The conviction stemmed from a conspiracy beginning in 2017 and continuing through 2019, wherein Chasing Hawk, knowingly and intentionally, conspired with others to distribute 500 grams or more of methamphetamine on the Cheyenne River Sioux Indian Reservation, and in Rapid City, South Dakota.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, the South Dakota Highway Patrol, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Chasing Hawk was immediately remanded to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender and Assault by Strangulation and Suffocation.
Dustin Marrowbone, a/k/a Dustin Condon, age 30, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 12, May 26, and June 14, 2020, in Dewey County, South Dakota, Marrowbone unlawfully assaulted his intimate partner by strangulation and suffocation after having been previously convicted on at least two previous occasions of assaulting a spouse or intimate partner.
The charges are merely accusations and Marrowbone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Marrowbone was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Danville Pharmacy Technician Sentenced for Federal Drug ChargeRead the Press Release
DANVILLE, Virginia – Paulette G Toller, a former pharmacy technician working in Danville, was sentenced in U.S. District Court in Danville to 13 months in federal prison for illegal distribution of a controlled substance. United States Attorney Thomas T. Cullen and Jesse Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division made the announcement.
Toller, 60, pleaded guilty in February 2020 to possessing with the intent to distribute and distributing a controlled substance, acquiring, and obtaining possession of a controlled substance by misrepresentation, fraud, forgery or deception.
According to court documents, Toller, who worked as a pharmacy technician at Sovah Health Danville since 2001, admitted to finding a “loophole” in the hospital’s automated dispensing system that allowed her to withdraw controlled substances under codes that were no longer valid. Toller admitted to obtaining the substances, which included hydrocodone, oxycodone, and other controlled substances, for her own personal use.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, and the Danville Police Department. Assistant United States Attorneys Michael Baudinet and Randy Ramseyer prosecuted the case for the United States.
Cuban National Pleads Guilty to Conspiracy to Cultivate More Than 100 Marijuana PlantsRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that El Paso County resident Jose Carlos Garcia-Montero, age 34, a Cuban national and lawful permanent resident, pleaded guilty to conspiracy to cultivate more than 100 marijuana plants. The Denver Division of the DEA joined in today’s announcement.
Garcia-Montero was part of an organization that would purchase or rent residential properties in Colorado, establish marijuana grows, and help others with harvesting and preparing marijuana. Once cultivated, Garcia-Montero and others would then coordinate distribution of the processed marijuana to out of state buyers.
On March 1, 2017, law enforcement stopped Garcia-Montero’s vehicle in Missouri, finding $176,600 in the vehicle’s spare tire. It was then determined that the currency was proceeds from the sale of marijuana obtained through this conspiracy.
Following the car stop, in March and May of 2017, DEA agents executed search warrants at properties where Garcia-Montero was assisting, financially and physically, in cultivating marijuana grows for the eventual sale of processed marijuana. The searches include:
- On May 23, 2017, agents executed a search warrant in Yoder, Colorado. Agents found 171 marijuana plants.
- On March 3, 2017, agents executed a search warrant in Peyton, Colorado. Agents found 76 marijuana plants and 38 kilograms processed marijuana.
The guilty plea was entered before U.S. District Court Judge Raymond P. Moore on August 13, 2020. Garcia-Montero is one of seven individuals who have been charged with this conspiracy, and is the fifth to plead guilty. He was charged by indictment on May 23, 2019 and is scheduled to be sentenced on October 30, 2020. This case was investigated by the Colorado Springs Resident Agency 0f the Denver Division of the DEA. Local law enforcement, including the El Paso County SWAT team and the Colorado Springs Police Department, assisted with the execution of the search warrants. The defendant is being prosecuted by Assistant U.S. Attorneys Garreth Winstead and Brian M. Dunn.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-256.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Convicted Felon from Montgomery Found Guilty of Possessing Methamphetamine, an AR-15, and a HandgunRead the Press Release
Montgomery, Alabama – On Tuesday, August 11, 2020, a federal jury convicted Kemond Jareuz Fortson, a 35-year-old from Montgomery, Alabama, for being a felon in possession of a firearm, possessing methamphetamine with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Louis V. Franklin, Sr.
The trial evidence showed that, on October 31, 2017, the Gulf Coast Regional Fugitive Task Force went to an apartment in Montgomery to serve Fortson, who was previously convicted of murder, with an arrest warrant for a probation violation. Inside the apartment, they found Fortson and his girlfriend, along with nearly 40 grams of methamphetamine strewn along the floor, into the bathroom, and in the toilet. Agents also discovered a digital scale, a large black gun case, and a set of car keys. Agents then obtained a search warrant for a car and found a loaded AR-15, around 40 more grams of methamphetamine, another digital scale, plastic bags, and a Ruger 9mm pistol in the trunk.
Following these convictions, Fortson is facing a sentence of five years to life in prison. His sentencing hearing has been scheduled for December 9, 2020. There is no parole in the federal system.
“Guns and drugs are a deadly mix, it’s like storing gasoline next to the fireplace” stated U.S. Attorney Franklin. “At the time of this offense, Mr. Fortson had been convicted of one violent crime and was a fugitive from justice. Apparently, Mr. Fortson decided that his latest criminal act would be using and carrying a firearm while distributing narcotics. The only reason dealers use and carry firearms is to protect their product, protect their money, and protect themselves, without any regard for the safety of others. My office places a priority on ridding our communities of violent offenders that refuse to obey the law, and I am grateful to the jury for their verdict in this case.”
The Alabama Law Enforcement Agency (ALEA), the Drug Enforcement Administration (DEA), and the U.S. Marshals Service-led Gulf Coast Regional Fugitive Task Force investigated this case. Assistant United States Attorneys Kevin Davidson and Brandon Bates are prosecuting the case.
Convicted Felon Is Sentenced to More Than Six Years for Illegal Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Takobie Anderson, 20, of Charlotte, was sentenced in federal court late yesterday for illegally possessing a firearm. U.S. District Judge Frank D. Whitney ordered Anderson to serve 82 months in prison, followed by two years of supervised release.
U.S. Attorney Murray is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and yesterday’s sentencing hearing, on April 21, 2019, CMPD officers were dispatched to an apartment complex in Charlotte, in response to a report of a shooting. When the officers arrived at the scene they determined that two individuals, a male and a female, had been shot and had sustained injuries. Over the course of the investigation, law enforcement determined that Anderson had shot the two victims following a verbal altercation between the victims and a relative of Anderson. Court records show that, at the time of the shooting, Anderson was on probation for a state conviction and was wearing an ankle monitor. Law enforcement arrested Anderson on August 23, 2019, at a residence in Charlotte. At the time of Anderson’s arrest, law enforcement located inside the residence a loaded firearm, which they later determined had been stolen and was the firearm Anderson had used to shoot the victims. According to court records, Anderson has a previous felony conviction and he is prohibited from possessing a firearm and/or ammunition.
Anderson is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
Chicago Man Sentenced to 22 Years for Engaging in a Nationwide Online Child Exploitation EnterpriseRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Marqueal Bonds, 22, of Chicago, Illinois, was sentenced today to 22 years in prison and lifetime supervised release by United States District Court Judge Harvey Bartle, III, for engaging in a child exploitation enterprise. Bonds was also ordered to pay a total of $33,221 in restitution to various victims.
In March 2020, Bonds pleaded guilty in the middle of trial to charges of engaging in a child exploitation enterprise and conspiracy to advertise child pornography. Using Discord, an online communications application that allows users to share files and communicate via chat messages, Bonds and his co-conspirators connected in private chat rooms to discuss how to find children and exploit them to produce child pornography. Bonds and his co-conspirators would also share child pornography on Discord, which included sexual depictions of children as young as toddlers. After discovering evidence of child pornography on Discord’s servers, federal agents executed a search warrant at Bonds’ house, and the defendant confessed to his involvement in this enterprise.
“Bonds and others like him will be held accountable by my Office no matter which dark corners of the Internet they are lurking in,” said U.S. Attorney McSwain. “Bonds and his co-conspirators trolled the Internet on legitimate sites like Snapchat, Periscope, and Live.me for vulnerable victims, tricked these children into believing they were chatting with boys or girls their own ages, and then obtained video and naked photos of them to share on Discord. Today’s lengthy sentence ensures that Bonds is out of business and serves as a warning to anybody who would consider exploiting children via the Internet.”
“Marqueal Bonds manipulated underage girls into providing explicit images of themselves,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He and his co-conspirators teamed up to sexually exploit children across the country and share the vile results. These are predators who harmed young girls without a second thought. Locking them up ensures they won’t be victimizing anyone else.”
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 and is being prosecuted by Assistant U. S. Attorney Kevin Jayne and Trial Attorney Kaylynn Foulon, of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
Camden County man snared in child sex-trafficking sting sentenced to federal prisonRead the Press Release
BRUNSWICK, GA: A Camden County man snagged in a child sex-trafficking sting will spend more than five years in federal prison.
Charles Barreras, 49, of Kingsland, Ga., was sentenced to 62 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Attempted Coercion and Enticement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Barreras will be required to serve 10 years of supervised release and to register as a sex offender.
There is no parole in the federal system.
“As predators attempt to use cyberspace to contact children for evil intentions, our law enforcement partners will remain vigilant in identifying and stopping pedophiles like Barreras,” said U.S. Attorney Christine. “Any adult who intends to contact children for illicit purposes should live in fear that their crimes will be uncovered – and like Barreras, they will go to prison.”
Barreras is a lieutenant commander in the U.S. Navy, stationed at Submarine Base Kings Bay in Kingsland. He and eight other men were indicted in July 2019 as a result of Operation Do You Know Your Neighbor, coordinated by the Georgia Bureau of Investigation’s Internet Crimes Against Children Task Force.
Three of the remaining defendants in the operation have been sentenced to federal prison, while others await sentencing after entering guilty pleas, or are awaiting trial.
“The sentences that continue to be handed down as a result of this successful multiagency operation should serve as a stern warning for sexual predators who target children where Department of the Navy personnel live and work,” said NCIS Southeast Field Office Special Agent in Charge Tom Cannizzo. “NCIS and our state and local partners are dedicated to working together to keep our communities safe for children.”
“This sentence demonstrates that no matter who you are, even a ranking official in the armed forces, you will be held accountable for preying on children,” said GBI Director Vic Reynolds. “We value our law enforcement partnerships to be able to work together in these type operations to catch the criminals who seek to harm one of our most vulnerable populations.”
The sting was set up by the Naval Criminal Investigative Service and the GBI’s Internet Crimes Against Children Task Force for the purpose of identifying adults who were seeking out children for indecent purposes. Other agencies participating in the investigation included the Camden County Sheriff’s Office, the Kingsland Police Department, the Effingham County Sheriff’s Office and the Savannah Police Department.
This case was prosecuted for the United States by Assistant U.S. Attorney Marcela Mateo and Special Assistant U.S. Attorney Katelyn Semales.
Bladenboro Gang Member Sentenced on Firearm Charge After Leading Three Men in Daytime BurglaryRead the Press Release
NEW BERN, N.C. – A Bladenboro man was sentenced today to 120 months in prison for possessing a firearm as a convicted felon.
According to court documents and statements made in court, on the morning of April 5, 2018, four people—defendant Devin Antonio Manuel, codefendants Jaden Davis and Charles Smith, and a juvenile male—burglarized a home in Bladenboro, North Carolina. They stole many items, including a television, cellular phones, gaming consoles, and a safe that contained five firearms. In positioning their car to load the items, they damaged the victims’ porch and left blue paint on a railing. The men then drove to an isolated field where they broke into the safe, removed the firearms, and started a fire in which they burned much of the other property in the safe, including victim family heirlooms.
On October 8, 2019, Davis was sentenced to 13 months in prison and on August 27, 2019, Smith received a 21-month sentence for their involvement in these crimes.
Later the same day, a pair of men attempted to pawn two class rings from the burglary at a store in Elizabethtown. The store owner, who personally knew the victims and saw their names engraved on the rings, reported the event to the victims and later to police. The owner identified Manuel, a known member of the Bloods street gang, as one of the men involved.
The next day, acting on an anonymous tip, police recovered one of the firearms in a parking lot of an apartment complex in Bladenboro. Four people, including codefendant Jaden Davis and the juvenile who participated in the burglary, were standing behind the trunk of a car looking at a Ruger .22 caliber rifle. The rifle was one of the firearms stolen in the burglary, and Davis was wearing a watch that had been stolen. The juvenile confessed to the crime and identified his accomplices. Law enforcement later confirmed codefendant Charles Smith’s involvement based on GPS data from his car, as well as damage to his car and blue paint that matched the damage to the victims’ porch. Forensics subsequently identified latent fingerprints from the gun safe left in the field as belonging to Manuel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bladen County Sheriff’s Office investigated the case, and Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-0196-FL.
Armed Drug Dealer Receives 80 Months in Federal PrisonRead the Press Release
NEW BERN, N.C. – A Wilmington man, Tysuan Nash, 31 was sentenced today to 80 months in prison for possession with intent to distribute 28 grams or more of crack cocaine and a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and information provided in court, on September 15, 2017, Nash was stopped by a New Hanover County Sheriff’s deputy for a traffic violation. Nash had an outstanding order for arrest. During a search of the car, law enforcement found a quantity of crack cocaine, $2,565 and a loaded .38 caliber handgun. Nash was arrested and was released. On November 7, 2017, New Hanover County Sheriff’s Office narcotics detectives made a controlled purchase of heroin and crack from Nash. Nash was subsequently arrested during a traffic stop. Detectives found a .380 caliber handgun, 2 clips of heroin, almost three ounces of crack and $536 which included buy money from the earlier controlled purchase. Detectives learned that Nash had been receiving 9 ounces of cocaine at a time that he was cooking into crack cocaine.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The F.B.I. Safe Streets Task Force, Bureau of Alcohol, Tobacco and Firearms and the New Hanover County Sheriff’s Office Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-00059-FL.
###
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Allentown Man Sentenced to 10 Years for Multiple Firearms Violations, Dealing Drugs Near a SchoolRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Francisco Cruz-Pica, a/k/a “Javi,” 38, of Allentown, PA was sentenced to 10 years in prison, eight years of supervised release and ordered to pay a $1,200 fine by United States District Judge Jeffrey Schmehl for trafficking drugs and illegally possessing firearms, including a machine gun.
In January 2020, Cruz-Pica pleaded guilty to an 11-count Indictment charging drug trafficking and multiple firearms offenses, including distribution of heroin within 1,000 feet of a public school, maintaining a drug house, being a felon in possession of a firearm, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. He committed these offenses while on supervised release for a previous felony firearms conviction in the District of Puerto Rico, and is a notorious drug dealer known to authorities operating in and around Allentown.
“This defendant clearly has no respect for the law or for the Allentown community,” said U.S. Attorney McSwain. “Not only did he illegally possess multiple firearms and deal drugs near a school – a place that is supposed to be a safe haven for children – but he did so while on supervised release for a previous felony conviction. My Office is committed to working with our local law enforcement partners, like District Attorney Martin and the Allentown Police Department, to protect the Allentown community by investigating and convicting criminals like Cruz-Pica, and put them behind bars.”
“I commend the Allentown Resident Office of the FBI and the Allentown Police Department on their investigation, which has enabled an effective prosecution by the U. S. Attorney and has resulted in a dangerous criminal being taken off the streets of our community,” said Lehigh County District Attorney Jim Martin.
“Cruz-Pica illegally armed himself to the teeth as he flooded the streets of Allentown with drugs,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “All while on supervised release imposed for an earlier gun crime. Today’s sentence, obtained through the efforts of the FBI and our partners on the Lehigh Valley Safe Streets Task Force, ensures this repeat offender and threat to public safety remains behind bars for some time.”
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the City of Allentown Police Department, and the Lehigh County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
Acting Manhattan U.S. Attorney Announces Charges in $7 Million Scheme to Defraud Loan Programs Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Kevin Kupperbusch, Special Agent-in-Charge of the Eastern Region Office of the Inspector General of the U.S. Small Business Administration (“SBA”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a “Justin Jung,” a Taiwanese national residing in New York, New York, for a fraudulent scheme to obtain over $7 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, CHENG used the identities of other individuals to falsely represent to the SBA and five financial institutions that companies controlled by him had a total of over 200 employees and paid $1.5 million in monthly wages, when, in fact, his companies appear to have a total of no more than 14 employees. Of the approximately $2.8 million in PPP loan proceeds that CHENG has received to date, CHENG transferred over $880,000 abroad, withdrew approximately $360,000 in cash and/or cashier’s checks, and spent over $275,000 on personal expenses. CHENG was charged with several counts of fraud, including major fraud against the United States, wire fraud, and bank fraud, as well as one count of aggravated identity theft for forging the electronic signature of a payroll company employee in payroll documents provided to financial institutions. CHENG was arrested this morning and will be presented later today before U.S. Magistrate Judge Stewart D. Aaron.
Acting U.S. Attorney Audrey Strauss said: “At a time when so many small businesses and their employees are facing dire financial straits, Sheng-Wen Cheng allegedly saw not an emergency lifeline but a gravy train. As alleged, Cheng fraudulently applied for over $7 million in government-guaranteed loans under programs designed to provide relief for small businesses financially strapped by the COVID-19 pandemic. Cheng allegedly lied to the Small Business Administration and several financial institutions about ownership of his companies, the number of people the companies employed, and how any loan proceeds would be applied, and he used forged and fraudulent documents in the process. Of the nearly $3 million he actually received, Cheng allegedly transferred nearly $1 million to overseas accounts, and spent nearly $300,000 on personal luxury items such as an 18-carat gold Rolex, a $17,000-a-month luxury condo, and a Mercedes. The paid vacation ended with his arrest this morning.”
FBI Assistant Director William F. Sweeney Jr said: “While small business owners throughout the country sought loans from the Paycheck Protection Program in order to pay employee wages and maintain basic business functions, Justin Cheng, a self-proclaimed ‘serial entrepreneur,’ acquired more than $3 million in financial relief, which he then used for personal benefit, as alleged today. True entrepreneurs who have been trying to keep their businesses afloat during these trying times are directly affected by this type of fraud, while the taxpaying citizens of this country are indirectly impacted by all those who siphon money illegitimately from this multibillion-dollar program. This isn’t the first case of SBA fraud we’ve seen, and it won’t be the last, but rest assured those who try to buck the system will be met with federal criminal charges wherever and whenever possible.”
SBA Special Agent-in-Charge Kevin Kupperbusch, said: “This is a critical time for our nation’s small businesses. Our Office will continue to combat fraud schemes that involve SBA’s programs for personal gain and greed. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As alleged in the criminal complaint, Mr. Cheng fraudulently took advantage of programs meant to help those in need during a world-wide pandemic. IRS-CI will continue to prioritize investigations where criminals seek to steal money from well-deserving citizens amidst this ongoing public health crisis.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provided small businesses with low-interest loans that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL Program loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
CHENG, a Taiwanese national who entered the United States on a student visa, is a self-proclaimed “serial entrepreneur” who earned a Bachelor’s Degree from Pennsylvania State University (“Penn State”). From at least in or about April 2020 through at least on or about August 13, 2020, CHENG appears to have used the identities of other individuals to submit online applications to the SBA and at least five financial institutions for a total of over $7 million in government-guaranteed loans through the SBA’s PPP and EIDL Program for several companies controlled by CHENG, namely Alchemy Finance, Inc., Alchemy Guarantor LLC d/b/a “Celer Offer,” Celeri Network, Inc., Celeri Treasury LLC, and Wynston York LLC (collectively, the “Cheng Companies”). In connection with these loan applications, CHENG represented, among other things, that other individuals were the sole owners of the Cheng Companies and that the Cheng Companies together had over 200 employees and paid a total of approximately $1.5 million in wages to those employees on a monthly basis. In fact, however, the Cheng Companies appear to have a total of no more than 14 employees.
In order to support the false representations in the loan applications about the number of employees at and the wages paid by the Cheng Companies, CHENG submitted fraudulent and doctored tax records that were never actually filed with the IRS, and payroll records containing the forged electronic signature of a payroll company employee. CHENG also submitted a payroll summary for one of his companies that listed the names of more than 90 purported employees, several of whom are current and former athletes, artists, actors, and public figures. For example, the list of purported employee names included a co-anchor on Good Morning America, a former National Football League player, and a prominent Penn State football coach who is now deceased.
Based on the fraudulent PPP loan applications submitted by CHENG, a total of more than $3.7 million in PPP loans were approved for the Cheng Companies and approximately $2.8 million in PPP loan proceeds were deposited into bank accounts solely controlled by CHENG as of on or about August 13, 2020. Based on bank records received to date, instead of using the PPP loan proceeds for payroll costs, mortgage interest, rent, and/or utilities for the purported Cheng Companies as required by the PPP, CHENG used a portion of the $2.8 million in loan proceeds he received as follows:
- A total of at least approximately $881,000 in PPP loan proceeds was transferred to accounts of different individuals and entities located at banks based in Taiwan, the United Kingdom, South Korea, and Singapore.
- A total of at least approximately $360,000 in PPP loan proceeds appears to have been withdrawn in cash and/or cashier’s checks.
- A total of at least approximately $279,000 in PPP loan proceeds was spent on personal expenses, including the purchase of an 18-carat gold Rolex watch for approximately $40,000, rent and move-in fees for a $17,000 per month luxury condominium for CHENG, approximately $50,000 of furnishings for CHENG’s condominium, at least approximately $80,000 toward the purchase of a 2020 S560X4 Mercedes, and purchases totaling approximately $37,000 at Louis Vuitton, Chanel, Burberry, Gucci, Christian Louboutin, and Yves Saint Laurent.
- A total of at least approximately $160,000 in PPP loan proceeds was transferred to Alchemy Marketplace, another company owned and controlled by CHENG, in international accounts.
* * *
CHENG, 24 of New York, New York, is charged with one count of bank fraud, one count of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; one count of making false statements, which carries a maximum sentence of five years in prison; one count of making false statements to the SBA, which carries a maximum sentence of two years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any businesses or individuals who believe they may have been a victim in this investigation or have information regarding this investigation should call the FBI at 1-800-CALL-FBI (225-5324).
Ms. Strauss praised the investigative work of the FBI, SBA-OIG, and IRS-CI, and noted that the investigation remains ongoing. Ms. Strauss also thanked U. S. Customs and Border Protection and the New York State Department of Labor for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Monday 17 August 2020
Youngstown man indicted for using and discharging a firearm during string of armed robberiesRead the Press Release
U.S. Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned a 10-count indictment charging Terron Jones, 21, of Youngstown with five counts of interference with commerce by means of robbery, four counts of using or carrying, and brandishing a firearm during and in relation to a crime of violence and one count of using or carrying, and discharging a firearm during and in relation to a crime of violence.
According to the indictment, from May 2020 through June 2020, the defendant is accused of using a firearm, threatening force and obtaining monies in the custody, possession and presence of serval Youngstown area businesses. In addition, the indictment alleges that on or about May 23, 2020, Jones used, carried, and discharged a firearm during one of these robberies.
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, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Youngstown Police Department. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Wilmington Man Sentenced to 67 Months for Gun ChargeRead the Press Release
NEW BERN, N.C. – A Wilmington man was sentenced to 67 months in prison for possession of a firearm by a felon in connection with a July 31, 2019 incident.
According to court documents, Eric Lamont Burch, 45, was charged with one count of felon in possession of a firearm. Burch pled guilty to that count on May 5, 2020.
On July 31, 2019, an officer with the Wilmington Police Department initiated a traffic stop of a vehicle in which Burch was the lone, backseat passenger. As the officer approached the vehicle, he observed Burch conceal something under a backpack in the backseat. A subsequent search of the vehicle recovered drug paraphernalia and a loaded .38 caliber revolver was found in the backseat. At the time, Burch was prohibited from possessing a firearm as a result of prior felony convictions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and Wilmington Police Department investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
The investigation was part of OCDETF Operation Round Tree Hill. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on an armed drug trafficking organization responsible for bringing heroin and crack into Eastern North Carolina.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00027-M.
###
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Attorney's Office District of Arizona July 2020 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
157 individuals were charged in July with illegal reentry
A. 135 of those 157 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 135 individuals with non-immigration criminal records:
1. 25 had violent crime convictions, including:
1 individual had a homicide conviction
7 individuals had sex offense convictions
10 individuals had domestic violence convictions2. 26 had property crime convictions
3. 29 had DUI convictions
4. 66 had drug crime convictions
B. 81 of those 135 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
28 individuals were charged in July with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in July with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2020-069_July Immigration and Border Crimes Report
# # #
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.Two Queens Men Charged with the Murder of RUN-DMC D.J. Jason Mizell, also Known as “Jam Master Jay”Read the Press Release
A 10-count indictment was unsealed today in the Eastern District of New York charging Ronald Washington and Karl Jordan, Jr., with the October 30, 2002 murder of Jason Mizell, also known as “Jam Master Jay,” a member of the famed hip hop group Run-DMC. Each defendant is charged with murder while engaged in narcotics trafficking and firearm-related murder for the fatal shooting of Mizell inside the victim’s recording studio in Hollis, Queens. Jordan is charged with several additional narcotics distribution counts. Jordan was arrested yesterday and will be arraigned this afternoon via videoconference by United States Magistrate Judge Lois Bloom. Washington is in federal custody and will be arraigned at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Dermot F. Shea, Commissioner, New York City Police Department (NYPD), Daryl McCormick, Acting Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and indictment.
“The defendants allegedly carried out the cold-blooded murder of Jason Mizell, a brazen act that has finally caught up with them thanks to the dedicated detectives, agents and prosecutors who never gave up on this case,” stated Acting United States Attorney DuCharme. “The charges announced today begin to provide a measure of justice to the family and friends of the victim, and make clear that the rule of law will be upheld, whether that takes days, months or decades.”
“The gunshots that rang out in a recording studio in Queens nearly 18 years ago, taking this pioneering rap artist’s life, have been answered. Today’s indictment shows that no amount of time passed can erase the commitment of our NYPD detectives, federal law enforcement partners and prosecutors in the US Attorney’s Office for the Eastern District, to the pursuit of justice,” stated NYPD Commissioner Shea.
“The ATF New York Field Division never believed this case was unsolvable,” stated ATF Acting Special Agent-in-Charge McCormick. “Working tirelessly alongside the NYPD Cold Case Squad, we were determined to bring justice for the Mizell family and see these killers held accountable. For nearly eighteen years, one of these alleged perpetrators walked freely, thinking he’d gotten away with murder. But today, thanks to the unwavering efforts of the investigators and prosecutors, two individuals will answer for their crimes.”
As alleged in court filings, on October 30, 2002, Mizell was present at his recording studio, 24/7 Studio, located on Merrick Boulevard in Jamaica, Queens. At approximately 7:30 p.m., Washington and Jordan, armed with firearms, entered the studio. Washington pointed his firearm at an individual located inside the studio and demanded that the person lie on the floor. Jordan approached Mizell, pointed his firearm at him, and fired two shots at close range, striking the victim once in the head, killing him. The second shot struck another individual in the leg.
The investigation revealed that the motive for the killing resulted from Mizell’s previous acquisition of approximately 10 kilograms of cocaine from a narcotics supplier in the Midwest. The cocaine was allegedly intended to be distributed in Maryland by Washington, Jordan and other co-conspirators. Mizell had recently informed Washington that the defendant would not be involved in distributing the narcotics in Maryland, which precipitated the murder conspiracy.
In addition to the murder, Jordan is also charged with one count of conspiracy to distribute cocaine and seven counts of cocaine distribution.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a minimum of 20 years’ imprisonment and a maximum term of life imprisonment, or the death penalty.
Assistant United States Attorneys Artie McConnell and Mark E. Misorek are in charge of the prosecution.
The Defendants:
KARL JORDAN, JR. (also known as “Little D” and “Noid”)
Age: 36
Hollis, QueensRONALD WASHINGTON (also known as “Tinard”)
Age: 56
Hollis, QueensE.D.N.Y. Docket No. 20-CR-305 (LDH)
Two Plead Guilty for Roles in Huntington Fentanyl TraffickingRead the Press Release
HUNTINGTON, W.Va. – A Detroit man trafficking fentanyl, and a Huntington woman assisting him, both pled guilty to federal charges today, announced United States Attorney Mike Stuart. Vernon Eugene Mitchell, 30, and Tasha Lynn Adkins, 34, both pled guilty to distributing fentanyl. Mitchell also pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
“Detroit is home for another drug dealer taken down in southern West Virginia. Fentanyl has been a death drug for our people and Detroit and out-of-state drug dealers simply don’t care. These two were quite the pair. Drugs and guns don’t mix and lawbreakers will be caught and prosecuted,” said United States Attorney Mike Stuart. “We are all safer having these two off the streets.”
On October 2, 2019, officers with the Huntington Police Department utilized a confidential informant to purchase fentanyl from Mitchell. The informant met with Mitchell near the intersection of 13th Street West and Monroe Avenue in Huntington where Mitchell provided the fentanyl to the informant.
On October 28, 2019, officers again used an informant to contact Mitchell to purchase fentanyl. On that date, Mitchell directed the informant to go to a residence in the 300 block of 5th Avenue in Huntington. At that location, Adkins met with the informant and distributed the fentanyl.
Officers executed a search warrant at Mitchell’s residence located at 438 ½ 5th Avenue in Huntington on November 7, 2019. When officers entered, they located Mitchell and Adkins. During the search, officers found a number of items including $11,201 in cash and a loaded .45 caliber pistol. Mitchell admitted at the plea hearing that he made the money by selling fentanyl and that he possessed the firearm. Mitchell also admitted that he had been selling heroin and fentanyl in the Huntington area between the summer of 2019 and December 2019.
Mitchell faces five years to life in prison when he is sentenced on November 23, 2020. Adkins faces up to 20 years in prison when she is sentenced on November 23, 2020.
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
The case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.) and the Project Safe Neighborhoods (PSN) program.
Operation Synthetic Opioid Surge (S.O.S.) is an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
The Project Safe Neighborhoods (PSN) program 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00311.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Two Felons Sentenced for Possessing FirearmsRead the Press Release
TWO FELONS SENTENCED FOR POSSESSING FIREARMS
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that two felons have been sentenced in United States District Court for illegal possession of firearms.
Three-Time Convicted Felon Sentenced
Angelo Demario Young, 30, of Shreveport, was sentenced on a federal firearms charge by U.S. District Judge S. Maurice Hicks Jr. to 84 months (7 years) in prison, followed by 3 years of supervised release, after being convicted of possession of a firearm by a convicted felon.
According to documents filed with the court on June 11, 2019, Angelo Young recorded himself shooting a Glock .357 pistol at a shooting range in Shreveport and posted it to Facebook.com. Young has multiple prior felony convictions, including illegal possession of a stolen firearm (2009), possession with intent to distribute narcotics (2015), and possession of a firearm or carrying a concealed weapon by a convicted felon (2017). Federal law prohibits anyone who has been convicted of a felony to possess a firearm.
The ATF conducted the investigation and Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Shreveport Man Sentenced for Federal Firearms Crimes
Quinton Washington, 35, of Shreveport, was sentenced to 60 months (5 years) in prison, followed by 3 years of supervised release, by U.S. District Judge S. Maurice Hicks Jr. for being a convicted felon in possession of a firearm. According to the guilty plea, on August 23, 2018, law enforcement agents executed an arrest warrant for Washington at a house in Caddo Parish. During the operation, law enforcement found Washington and a firearm inside the house. Washington has multiple prior felony convictions, both in Louisiana and Texas.
The ATF and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Each case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
# # #
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Topeka Man Sentenced for $47,000 ID Theft SchemeRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to 46 months in federal prison for devising an identity theft scheme that caused a loss of more than $47,000, U.S. Attorney Stephen McAllister said.
Joseph Adams, 42, Topeka, Kan., pleaded guilty to one count of aggravated identity theft and one count of conspiring to commit bank and wire fraud. In his plea, Adams admitted he and a co-defendant obtained stolen mail containing checks and information on victims’ identities. They used a software program to make counterfeit checks and identification cards. They passed the counterfeit checks at stores including a Walmart in Overland Park, Kan. They also used a stolen identity to access an account at Capital Federal Bank. The overall loss was approximately $47,600.
Co-defendant Danielle Hutchens is scheduled for sentencing Sept. 28.
McAllister commended the U.S. Postal Service, the Overland Park Police Department and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Three individuals charged with arranging adoptions from Uganda and Poland through bribery and fraudRead the Press Release
Three women were charged in a 13-count indictment filed on Aug. 14 in the Northern District of Ohio for their alleged roles in schemes to corruptly and fraudulently procure adoptions of Ugandan and Polish children through bribing Ugandan officials and defrauding U.S. adoptive parents, U.S. authorities, and a Polish regulatory authority.
Margaret Cole, 73, of Strongsville, Ohio, Debra Parris, 68, of Lake Dallas, Texas, and Dorah Mirembe, 41, of Kampala, Uganda, were charged in the indictment. In relation to the Uganda scheme, Parris and Mirembe were each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit visa fraud, one count of conspiracy to commit mail fraud and wire fraud, one count of conspiracy to commit money laundering, three substantive FCPA counts and three substantive counts of money laundering. Parris was also charged with one count of mail fraud. In relation to the Poland scheme, Parris and Cole were each charged with one count of conspiracy to defraud the United States. Cole was further charged with one count of making a false statement to a U.S. accrediting entity and one count of making a false statement to a Polish authority.
“These defendants are accused of orchestrating an alleged scheme that bribed Ugandan officials, defrauded the United States and manipulated parents inside and outside of the country,” said U.S. Attorney Justin Herdman of the Northern District of Ohio. “As a result of this alleged conduct, prospective parents were deceived, hundreds of thousands of dollars were misused and innocent children were displaced from their homes.”
“The defendants allegedly resorted to bribery and fraud to engage in an international criminal adoption scheme that took children from their home countries in Uganda and Poland without properly determining whether they were actually orphaned. The defendants sought to profit from their alleged criminal activity at the expense of families and vulnerable children,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These charges clearly show that the Department of Justice is committed to protecting children worldwide, including those involved in the international adoption process.”
“These three defendants preyed on the emotions of parents, those wanting the best for their child, and those wishing to give what they thought was an orphaned child a family to love,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “These defendants allegedly lied to both sides of the adoption process, and bribed Ugandan officials who were responsible for the welfare of children. Parents, prospective parents and children were emotionally vested and were heartbroken when they learned of the selfishness and greed in which these three engaged. The FBI will never cease in its efforts to protect the innocent and unwitting from those who prey on that trust and confidence and we will vigorously pursue and hold those responsible accountable.”
With respect to the Uganda scheme, the indictment alleges that Parris and Mirembe, together with others, engaged in a scheme to pay bribes to Ugandan officials to corruptly procure the adoption of Ugandan children by families in the United States, including the adoption of children who were not properly determined to be orphaned and who had to be ultimately returned to their birth parents.
Specifically, Parris, Mirembe, and their co-conspirators allegedly (1) paid bribes to social welfare officers in exchange for them issuing welfare reports recommending that certain children be placed into orphanages without first ensuring that the children were actually orphaned or that putting them up for adoption was in the children’s best interest; (2) paid bribes to Ugandan magistrate judges to obtain court orders placing those children in an orphanage that was willing to accept the children without inquiring into whether they were actually orphans; (3) paid bribes to court registrars to cause the court registrars to assign the cases of these children to two corrupt “adoption-friendly” judges; and (4) paid bribes to the corrupt Ugandan judges to obtain orders to permit their clients to bring the children to the United States for adoption.
Parris, Mirembe, and others also allegedly lied to, and concealed material information from, adoptive parents, including lying about the bribe payments and whether the children were properly determined to be eligible for adoption, and concealing other material information about the children’s history. The indictment also alleges that Parris, Mirembe, and others agreed to cause false documents to be submitted to the U.S. Department of State to hide the corrupt and fraudulent scheme and to mislead it in its adjudication of visa applications for the Ugandan children being considered for adoption. The co-conspirators and the entities they worked for received more than $900,000 in connection with these adoptions.
With respect to the Poland scheme, the indictment alleges that after clients of their adoption agency determined they could not care for one of the two Polish children they were set to adopt, Cole and Parris took steps to transfer the child to Parris’s relatives, who were not eligible for intercountry adoption and one of whom had a criminal arrest record. After the child was physically abused, Cole and Parris took steps to conceal their improper conduct from the entity responsible for accrediting U.S. intercountry adoption agencies—and from the Polish authority responsible for intercountry adoptions—in an attempt to continue profiting from these adoptions.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
This case is being investigated by the FBI’s Cleveland Field Office and is being prosecuted by and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio and Trial Attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Three Individuals Charged with Arranging Adoptions from Uganda and Poland Through Bribery and FraudRead the Press Release
Three women were charged in a 13-count indictment filed on Aug. 14 in the Northern District of Ohio for their alleged roles in schemes to corruptly and fraudulently procure adoptions of Ugandan and Polish children through bribing Ugandan officials and defrauding U.S. adoptive parents, U.S. authorities, and a Polish regulatory authority.
Margaret Cole, 73, of Strongsville, Ohio, Debra Parris, 68, of Lake Dallas, Texas, and Dorah Mirembe, 41, of Kampala, Uganda, were charged in the indictment. In relation to the Uganda scheme, Parris and Mirembe were each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit visa fraud, one count of conspiracy to commit mail fraud and wire fraud, one count of conspiracy to commit money laundering, three substantive FCPA counts and three substantive counts of money laundering. Parris was also charged with one count of mail fraud. In relation to the Poland scheme, Parris and Cole were each charged with one count of conspiracy to defraud the United States. Cole was further charged with one count of making a false statement to a U.S. accrediting entity and one count of making a false statement to a Polish authority.
“The defendants allegedly resorted to bribery and fraud to engage in an international criminal adoption scheme that took children from their home countries in Uganda and Poland without properly determining whether they were actually orphaned. The defendants sought to profit from their alleged criminal activity at the expense of families and vulnerable children,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These charges clearly show that the Department of Justice is committed to protecting children worldwide, including those involved in the international adoption process.”
“These defendants are accused of orchestrating an alleged scheme that bribed Ugandan officials, defrauded the United States and manipulated parents inside and outside of the country,” said U.S. Attorney Justin Herdman of the Northern District of Ohio. “As a result of this alleged conduct, prospective parents were deceived, hundreds of thousands of dollars were misused and innocent children were displaced from their homes.”
“These three defendants preyed on the emotions of parents, those wanting the best for their child, and those wishing to give what they thought was an orphaned child a family to love,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “These defendants allegedly lied to both sides of the adoption process, and bribed Ugandan officials who were responsible for the welfare of children. Parents, prospective parents and children were emotionally vested and were heartbroken when they learned of the selfishness and greed in which these three engaged. The FBI will never cease in its efforts to protect the innocent and unwitting from those who prey on that trust and confidence and we will vigorously pursue and hold those responsible accountable.”
With respect to the Uganda scheme, the indictment alleges that Parris and Mirembe, together with others, engaged in a scheme to pay bribes to Ugandan officials to corruptly procure the adoption of Ugandan children by families in the United States, including the adoption of children who were not properly determined to be orphaned and who had to be ultimately returned to their birth parents.
Specifically, Parris, Mirembe, and their co-conspirators allegedly (1) paid bribes to social welfare officers in exchange for them issuing welfare reports recommending that certain children be placed into orphanages without first ensuring that the children were actually orphaned or that putting them up for adoption was in the children’s best interest; (2) paid bribes to Ugandan magistrate judges to obtain court orders placing those children in an orphanage that was willing to accept the children without inquiring into whether they were actually orphans; (3) paid bribes to court registrars to cause the court registrars to assign the cases of these children to two corrupt “adoption-friendly” judges; and (4) paid bribes to the corrupt Ugandan judges to obtain orders to permit their clients to bring the children to the United States for adoption.
Parris, Mirembe, and others also allegedly lied to, and concealed material information from, adoptive parents, including lying about the bribe payments and whether the children were properly determined to be eligible for adoption, and concealing other material information about the children’s history. The indictment also alleges that Parris, Mirembe, and others agreed to cause false documents to be submitted to the U.S. Department of State to hide the corrupt and fraudulent scheme and to mislead it in its adjudication of visa applications for the Ugandan children being considered for adoption. The co-conspirators and the entities they worked for received more than $900,000 in connection with these adoptions.
With respect to the Poland scheme, the indictment alleges that after clients of their adoption agency determined they could not care for one of the two Polish children they were set to adopt, Cole and Parris took steps to transfer the child to Parris’s relatives, who were not eligible for intercountry adoption and one of whom had a criminal arrest record. After the child was physically abused, Cole and Parris took steps to conceal their improper conduct from the entity responsible for accrediting U.S. intercountry adoption agencies—and from the Polish authority responsible for intercountry adoptions—in an attempt to continue profiting from these adoptions.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
The FBI’s Cleveland Field Office is investigating the case. Trial Attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs assisted in the investigation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Tennessee Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky. - A Enville, Tennessee man, Lane Christopher Mikaloff, 52, pleaded guilty in federal court Friday, before U.S. District Judge David Bunning, to possession with intent to distribute 50 grams or more of methamphetamine.
According to Mikaloff’s plea agreement, on January 16, 2019, law enforcement received a call regarding a suspicious person who had purchased two ski masks and a knife from a truck stop in Gallatin County, Ky. Officers responded to the truck stop and located Mikaloff, who admitted to officers he possessed drug paraphernalia. During a search of Mikaloff’s vehicle, officers found a large bag of methamphetamine, nine smaller bags of methamphetamine, approximately five ounces of marijuana, and $1,042 in currency. During the search, Mikaloff fled from the officers on foot. When he was apprehended, Mikaloff was found in possession of additional methamphetamine, in a bag around his neck. All told, Mikaloff was found in possession of 247 grams of methamphetamine. In his plea agreement, Mikaloff admitted he possessed the methamphetamine with intent to distribute it.
Mikaloff was indicted in September 2019. According to his plea agreement, Mikaloff has prior convictions for aggravated burglary, aggravated robbery, felony assault, and rape.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the DEA and KSP. The United States was represented by Assistant U.S. Attorney Tony Bracke.
Mikaloff is scheduled to be sentenced on December 4. He potentially faces a minimum of 15 years and up to life in prison. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
— END —
Suspected International Alien Smuggler Extradited to the United States from RomaniaRead the Press Release
RELEASE SUMMARY – August 17, 2020
SAN DIEGO – Luigi Cristinel Popescu of Cernatesti, Romania, was extradited to the United States over the weekend and made his first appearance in federal court today to face charges that he is the leader of an international alien smuggling network responsible for smuggling thousands of Romanians into the United States.
Popescu was arrested in Bucharest, Romania by Romanian law enforcement officials on August 14, 2020 at the request of the United States and was extradited to the United States on Saturday. At today’s hearing, Popescu was arraigned on a Superseding Indictment and ordered detained as a flight risk, by Magistrate Judge Jill Burkhardt. Popescu’s next court appearance is scheduled for September 23, 2020, before U.S. District Court Judge Cynthia Bashant for motion hearing and trial setting.
Popescu was indicted by a federal grand jury in late 2019. He is charged in a Superseding Indictment with one count of Conspiracy to Bring-in Illegal Aliens for Financial Gain, five counts of Bringing in Aliens for Financial Gain and Aiding and Abetting.
According to the Superseding Indictment, Popescu was the leader of an international alien smuggling organization for almost seven years and has been responsible for smuggling Romanian Nationals into the United States at both its northern and southern borders. Homeland Security agents learned from interviews with Romanian Nationals smuggled by Popescu, both those arrested and those who turned themselves into U.S. Border Patrol, that he facilitated the smuggling of aliens from Romania to the U.S. through Europe, Central America, Mexico and Canada, generally charging $10,000 to $25,000 for individuals and families.
The investigation revealed that Popescu worked with numerous co-conspirators in Romania, Spain, Guatemala and Mexico to facilitate the smuggling arrangements of thousands of Romanians. According to the investigation, Popescu utilized WhatsApp and FaceTime to remain in contact with aliens being smuggled, providing instructions and contacts along the way, including the name and number for smugglers in route to the United States. These co-conspirators would arrange for passage in route to the U.S. border. Popescu would send a picture of the Romanian aliens to co-conspirators and instructed the aliens that smugglers on their route would be waiting for them and would have their picture. Popescu used an ever-changing cadre of associates, guides, stash house operators and drivers to facilitate the organization’s criminal activities. In the final stage of crossing illegal aliens coming through Mexico into the United States, the Popescu network made use of various stash houses near the San Ysidro and Calexico, Ports of Entry.
“Putting your faith, hope and future in the hands of smugglers is extremely dangerous,” said U.S. Attorney Robert Brewer. “My office will aggressively prosecute transnational criminal organizations that smuggle others into the United States for financial gain.” Brewer praised Homeland Security Investigations, the U.S. Border Patrol and prosecutor Timothy D. Coughlin for their excellent work on the case.
“Transnational criminal organizations engaged in human smuggling endanger the security of the United States,” said Homeland Security Investigations (HSI) Special Agent in Charge Cardell T. Morant. “Through close collaboration with our partners from U.S. Customs and Border Protection, the U.S. Attorney’s Office, and the government of Romania, this arrest signifies another victory in our fight to disrupt and dismantle organizations facilitating illegal entry into this country.”
“As a global organization, HSI collaborates with our foreign partners to identify, locate and investigate individuals who seek to exploit U.S. laws,” said HSI Regional Attaché Katie Bay, “We will continue to work to ensure that they face justice both at home and abroad.”
“On behalf of the U.S. Border Patrol, I want to express our appreciation for the countless hours expended by the men and women of law enforcement who were involved in bringing Popescu to justice”, San Diego Sector Border Patrol Chief Patrol Agent Aaron Heitke. “His case is the latest and one of many that has helped us to dismantle and degrade Transnational Criminal Organizations around the world.”
This case is the result of ongoing efforts by Homeland Security Investigations and the United States Border Patrol to target active Transnational Criminal Organizations, such as the Popescu network involved in alien smuggling along the U.S./Mexican border in the Southern District of California.
Homeland Security Investigations (HSI) Special Agent in Charge Cardell T. Morant stated, “Transnational criminal organizations engaged in human smuggling endanger the security of the United States. Through close collaboration with our partners from U.S. Customs and Border Protection, the U.S. Attorney’s Office, and the government of Romania, this arrest signifies another victory in our fight to disrupt and dismantle organizations facilitating illegal entry into this country.”
HSI Calexico Special Agents worked closely with Attaché offices in Mexico, Guatemala, Spain, Austria, and with foreign law enforcement agencies in a concerted effort to disrupt and dismantle the Popescu alien smuggling organization. The U.S. Department of State’s Diplomatic Security Service (DSS) provided substantial assistance during the investigation.
The Justice Department’s Office of International Affairs handled the extradition.
DEFENDANT Case Number 18cr5174-BAS
Luigi Cristinel Popescu Age: 52 Cernatesti, Romania
SUMMARY OF CHARGES
Count 1 – Conspiracy: to Bring-in Illegal Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a) (1)
(A) (i), (a) (1) (A) (v) (I) and (a) (1) (B) (i).
Maximum penalty: Ten years’ imprisonment and $250,000 fine
Counts 2-6 - Bringing in Aliens for Financial Gain: - Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2 - Aiding and Abetting.
Maximum penalty: Each count carries a mandatory minimum term of imprisonment of three (3) years and a maximum of ten (10) years for the first or second violation. Any additional violations carry a mandatory minimum term of imprisonment of five (5) years and a maximum of fifteen (15) years.
AGENCY
Homeland Security Investigations
United States Border Patrol, Calexico, California Intelligence Unit
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Stockton Tax Preparer Sentenced to 5 Years in Prison for Tax FraudRead the Press Release
SACRAMENTO, Calif. — Paola Bedoy, 65, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for eight counts of preparing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at a jury trial, for years Bedoy ran a tax preparation business in Stockton called Javez Enterprises. Bedoy repeatedly encouraged and assisted her clients in preparing fraudulent federal income tax returns by claiming earned income credits and child tax credits based upon dependents who were not eligible for those credits. For example, Bedoy falsely listed a child as disabled when he was not, put dependents on returns that her clients didn’t even know to fraudulently boost refunds, and repeatedly sought tax credits based on noncitizen children living in Mexico who Bedoy knew did not qualify for those tax credits. In one instance caught on video, Bedoy suggested the fraud to a client so that the client could afford to pay her fee and then tripled her fee to that client. Bedoy also admitted to investigators that she “bought” children to add to clients’ tax returns to inflate their refunds, and sometimes kept the inflated portion of the refunds for herself.
While Bedoy initially claimed she committed some of this fraud to help her family, during the time she committed the fraud, Bedoy gambled extensively at area casinos, losing over $130,000 during a period that she reported only $67,000 in income on her own personal federal income tax returns. Bedoy testified in her own defense at trial and received a sentencing enhancement for obstruction of justice after the court determined that Bedoy gave materially false testimony. In the aggregate, Bedoy filed hundreds of tax returns with the IRS seeking refunds in the millions of dollars.
Bedoy was ordered to report to begin service of her sentence by 2:00 p.m. on Oct. 19. This case was the product of an investigation by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales prosecuted the case.
South Dakota Federal Prosecutor Honored with the 2020 USD Attorney of the Year AwardRead the Press Release
United States Attorney Ron Parsons is pleased to announce that Constance Larson, Assistant U.S. Attorney in the Sioux Falls Office, has been selected as the 2020 recipient of the USD Women in Law Attorney of the Year Award. She was honored at an event in Sioux Falls on August 14, 2020.
The USD Women in Law Attorney of the Year award seeks to annually recognize one South Dakota attorney who exemplifies excellent character, a drive for mentoring women within the profession, and a dedication to positively affecting South Dakota residents through their professional duties and involvement within the state.
“Our friend and colleague Connie Larson embodies the best principles and highest ideals of the Department of Justice,” said U.S. Attorney Parsons. “We are grateful to the University of South Dakota Women in Law for recognizing her incredible legal talent, her passion for justice, and her heartfelt commitment to serving and mentoring others.”
Constance graduated from the University School of Law in 1995. Following graduation, she clerked for the South Dakota Supreme Court. While clerking, Constance had a diverse experience in the law and had the opportunity to be mentored by members of the South Dakota judiciary.
Following clerking, Constance began her career as a prosecutor in the Pennington County States Attorney’s Office, where she served for two years. Following her time in Pennington County, Constance transitioned to the South Dakota Attorney General’s Office, where she served for ten years.
In 2008, Constance continued her service to the people of South Dakota in taking on the role of Assistant U.S. Attorney for the District of South Dakota. In this capacity, Constance maintains a rigorous and diverse practice focusing on federal felony offenses.
Constance maintains her commitment to the profession and the community by remaining active as a mentor within the South Dakota State Bar and serving on various state bar committees, including chairing the Criminal Pattern Jury Instruction Committee. She also serves her South Dakota community in various capacities.
Registered Sex Offender Sentenced to 35 Years in Prison for “Sextorting” More Than 40 MinorsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 21, to 420 months in prison for producing child pornography and extortion. DELING, who pleaded guilty on July 18, 2019, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
“This defendant’s victimization went beyond sexual exploitation; his ultimate goal was to instill fear and humiliation. This type of depraved criminal behavior will not be tolerated,” said U.S. Attorney Erica MacDonald. It is my hope that today’s sentence represents justice and closure for the victims and their families.”
“The sentence of this defendant demonstrates the FBI’s never-ending commitment to apprehending sexual offenders who prey on innocent children," said Aubree M. Schwartz, Acting Special Agent in Charge of the FBI's Minneapolis field office. "No sentence can wipe away the scars and irreparable harm those heinous actions leave on child victims. This should send a strong message to anyone considering exploiting our most vulnerable citizens.”
According to the defendant’s guilty plea and documents filed in court, between October 2017 and August 2, 2018, DELING used multiple social media and chat platforms, including Snapchat, Facebook, Instagram, Kik, and Skype, as well as text messages to carry out his sextortion scheme. Sextortion is the act of extorting sexually explicit images and videos from a victim by threatening to reveal a victim’s sexually explicit chats, images, or videos, or through threats of harm to the victim or the victim’s loved ones. In the course of his scheme, DELING sextorted more than 40 minor girls whom he knew to be or believed were between 11 and 17 years old.
According to the defendant’s guilty plea and documents filed in court, DELING, using multiple usernames and accounts, employed several different techniques to attempt to and to obtain child pornography from minor girls. One technique DELING used was offering compliments and expressions of affection to the minor girls to persuade them into creating sexually explicit images of themselves. In many instances, DELING threatened to and actually did disseminate sexually explicit images of the girls to their friends and family if the girls refused to provide him with sexually explicit images. In other instances, DELING threatened to send his associates to rape, kidnap, injure, or kill the girls or their loved ones. To underscore his threats, DELING sent screenshots of maps of the girls’ residences, family members’ contact information, and other identifying information to the girls, as well as posting the information online. In at least one instance, DELING obtained sexually explicit images through a friend of one of the girls.
This case was the result of an investigation conducted by the FBI, in coordination with multiple state and local law enforcement agencies inside and outside of Minnesota.
This case was prosecuted by Assistant U.S. Attorney Miranda E Dugi.
Defendant Information:
DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 21
Fairmont, Minn.
Convicted:
- Production of child pornography, 1 count
- Interstate communication with intent to extort, 1 count
Sentenced:
- 420 months in prison
- 30 years of supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Puerto Rico Legislator Indicted for Theft, Bribery, and FraudRead the Press Release
A federal grand jury in the District of Puerto Rico returned a 13-count indictment against legislator María Milagros Charbonier-Laureano (Charbonier), aka “Tata,” a member of the Puerto Rico House of Representatives, as well as her husband Orlando Montes-Rivera (Montes), their son Orlando Gabriel Montes-Charbonier, and her assistant Frances Acevedo-Ceballos (Acevedo), for their alleged participation in a years-long theft, bribery, and kickback conspiracy.
The indictment charges Charbonier, Montes, Montes-Charbonier, and Acevedo with conspiracy; theft, bribery, and kickbacks concerning programs receiving federal funds; and honest services wire fraud. Charbonier, Montes, and Montes-Charbonier are facing two counts of money laundering. The indictment also charges Charbonier with obstruction of justice for destroying data on her cell phone.
According to the allegations in the indictment, from early 2017 until July 2020, Charbonier, Montes, Montes-Charbonier, and Acevedo executed a scheme to defraud the Commonwealth of Puerto Rico by engaging in a theft, bribery, and kickback scheme. In early 2017, Charbonier inflated her assistant Acevedo’s salary from $800 on a bi-weekly, after-tax basis to $2,100; this amount increased to nearly $2,900 by September 2019. Out of every inflated paycheck, it was agreed that Acevedo would keep a portion, and kick back between $1,000 and $1,500 to Charbonier, Montes, and Montes-Charbonier.
“Puerto Rico legislator María Milagros Charbonier-Laureano, her family, and her associates allegedly carried out a brazen scheme to defraud the Commonwealth of Puerto Rico through bribery, kickbacks, theft, and fraud,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “When elected officials betray the people's trust in order to enrich themselves at the public’s expense, the Justice Department will hold them accountable.”
“I encourage those who have information of public officials involved in criminal acts to come forward. We will continue investigating and prosecuting elected officials whose criminal conduct enriches themselves at the expense of the government and their constituents,” said U.S. Attorney Muldrow for the District of Puerto Rico. “I commend our partners from the FBI for their tremendous efforts investigating this matter, particularly during the pandemic. I would also like to recognize the Public Integrity Section attorneys who supported this investigation and traveled to Puerto Rico in order to work with our District to present this case to the Grand Jury.”
“Most of the work we do takes place behind the scenes. Quality investigative work requires time and patience,” said Special Agent in Charge Rafael Riviere Vázquez of the FBI’s San Juan Field Office. “It is my hope that the people of Puerto Rico never doubt that we are doing the work that we have been entrusted to do. Public Corruption is FBI San Juan's priority and it will continue to be a priority. Puerto Rico belongs to each and every one of us, and together we can take it back.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks from Acevedo to Charbonier and her family. Allegedly, Acevedo would sometimes transfer cash by hand to Montes, Montes-Charbonier, and other individuals connected to Charbonier; Acevedo would sometimes transfer kickbacks in approximately $500 increments to Montes or to Montes-Charbonier using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones; and, at times, Acevedo left cash kickbacks in a pre-determined location, such as Charbonier’s purse or inside of a vehicle, for Charbonier to later collect.
The money laundering counts against Charbonier, her husband and son involve the secretive maneuvers that the Charbonier family used to move their illegally derived cash among themselves in a manner designed to conceal and disguise the nature, location, source, ownership, and control of that cash.
The indictment also charges Charbonier with obstruction of justice. After learning of the existence of the investigation into illegal activities in her office and after learning that a warrant had been obtained for one of her phones, Charbonier allegedly proceeded to delete certain data on the phone. In particular, Charbonier deleted nearly the entire call log, nearly all WhatsApp messages, and nearly all iMessages associated with this phone, the indictment alleges.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney María L. Montañez Concepción from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Puerto Rico Legislator Indicted for Theft, Bribery, and FraudRead the Press Release
WASHINGTON – A federal grand jury in the District of Puerto Rico returned a 13-count indictment against legislator María Milagros Charbonier-Laureano (Charbonier), aka “Tata,” a member of the Puerto Rico House of Representatives, as well as her husband Orlando Montes-Rivera (Montes), their son Orlando Gabriel Montes-Charbonier, and her assistant Frances Acevedo-Ceballos (Acevedo), for their alleged participation in a years-long theft, bribery, and kickback conspiracy.
The indictment charges Charbonier, Montes, Montes-Charbonier, and Acevedo with conspiracy; theft, bribery, and kickbacks concerning programs receiving federal funds; and honest services wire fraud. Charbonier, Montes, and Montes-Charbonier are facing two counts of money laundering. The indictment also charges Charbonier with obstruction of justice for destroying data on her cell phone.
According to the allegations in the indictment, from early 2017 until July 2020, Charbonier, Montes, Montes-Charbonier, and Acevedo executed a scheme to defraud the Commonwealth of Puerto Rico by engaging in a theft, bribery, and kickback scheme. In early 2017, Charbonier inflated her assistant Acevedo’s salary from $800 on a bi-weekly, after-tax basis to $2,100; this amount increased to nearly $2,900 by September 2019. Out of every inflated paycheck, it was agreed that Acevedo would keep a portion, and kick back between $1,000 and $1,500 to Charbonier, Montes, and Montes-Charbonier.
“Puerto Rico legislator María Milagros Charbonier-Laureano, her family, and her associates allegedly carried out a brazen scheme to defraud the Commonwealth of Puerto Rico through bribery, kickbacks, theft, and fraud,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “When elected officials betray the people's trust in order to enrich themselves at the public’s expense, the Justice Department will hold them accountable.”
“I encourage those who have information of public officials involved in criminal acts to come forward. We will continue investigating and prosecuting elected officials whose criminal conduct enriches themselves at the expense of the government and their constituents,” said U.S. Attorney Muldrow for the District of Puerto Rico. “I commend our partners from the FBI for their tremendous efforts investigating this matter, particularly during the pandemic. I would also like to recognize the Public Integrity Section attorneys who supported this investigation and traveled to Puerto Rico in order to work with our District to present this case to the Grand Jury.”
“Most of the work we do takes place behind the scenes. Quality investigative work requires time and patience,” said Special Agent in Charge Rafael Riviere Vázquez of the FBI’s San Juan Field Office. “It is my hope that the people of Puerto Rico never doubt that we are doing the work that we have been entrusted to do. Public Corruption is FBI San Juan's priority and it will continue to be a priority. Puerto Rico belongs to each and every one of us, and together we can take it back.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks from Acevedo to Charbonier and her family. Allegedly, Acevedo would sometimes transfer cash by hand to Montes, Montes-Charbonier, and other individuals connected to Charbonier; Acevedo would sometimes transfer kickbacks in approximately $500 increments to Montes or to Montes-Charbonier using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones; and, at times, Acevedo left cash kickbacks in a pre-determined location, such as Charbonier’s purse or inside of a vehicle, for Charbonier to later collect.
The money laundering counts against Charbonier, her husband and son involve the secretive maneuvers that the Charbonier family used to move their illegally derived cash among themselves in a manner designed to conceal and disguise the nature, location, source, ownership, and control of that cash.
The indictment also charges Charbonier with obstruction of justice. After learning of the existence of the investigation into illegal activities in her office and after learning that a warrant had been obtained for one of her phones, Charbonier allegedly proceeded to delete certain data on the phone. In particular, Charbonier deleted nearly the entire call log, nearly all WhatsApp messages, and nearly all iMessages associated with this phone, the indictment alleges.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney María L. Montañez Concepción from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
Pittsburgh Man Sentenced to More than 7 Years in Prison for Drug and Gun CrimesRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 87 months of imprisonment and six years of supervised release on his convictions of conspiracy to possess with intent to distribute heroin, possession with the intent to distribute heroin, and possession of a firearm in furtherance of drug trafficking, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed sentence on Latone Dunbar, 25.
According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications demonstrated that Dunbar purchased distribution-level quantities of heroin from co-conspirator Ronald Williams, and re-sold the heroin to other customers. The court was further informed that during a search of Dunbar’s residence on March 8, 2019, the Pittsburgh Bureau of Police found a Highpoint rifle and approximately four grams of heroin stamped "DOPE."
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Park Hill Man Sentenced to 292 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Guy Coleston McDonald, age 32, of Park Hill, Oklahoma was sentenced to 292 months’ imprisonment, and 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846. The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Superseding Indictment alleged that beginning in or about September 2017, and continuing up to and including the date of the Superseding Indictment, within the Eastern District of Oklahoma and elsewhere, the defendant knowingly and intentionally conspired and agreed with others, known and unknown to the Grand Jury, to possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Over the course of the Drug Conspiracy, the Defendant was responsible for the acquisition and eventual distribution of multiple kilograms of methamphetamine throughout the Eastern District of Oklahoma. Through the use of violence he was able to intimidate and threaten others to insure payment for the methamphetamine he distributed to them. During the course of collecting and attempting to collect “drug debts”, the Defendant pistol-whipped, physically assaulted, and stole drugs and a firearm from others. On one occasion, he shot multiple times into the bedroom window of an individual who owed a “drug debt” of $300 to the Defendant. The individual was struck in the leg but survived.
United States Attorney Brian J. Kuester said, “Hundreds of people die every year in Oklahoma as a result of methamphetamine. It is critical to public safety that local, state, tribal and federal law enforcement agencies continue to diligently pursue drug trafficking organizations responsible for delivery and distribution of this deadly drug in Oklahoma and throughout the country. Because of successful multi-agency investigations like this one, we continue to identify the distribution networks and organizations that deliver the drugs and the tragic outcomes that follow.”
”The availability of illegal drugs and guns lends to increased violent crime in our communities,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “ATF is committed to disrupting that cycle through collaborative investigations like this.”
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 Shannon Henson represented the United States.
Northern Kentucky Physician Indicted for Illegal Distribution of Controlled SubstancesRead the Press Release
COVINGTON, Ky. - Michael J. Grogan, 67, of Lakeside Park, Kentucky, was indicted by a federal grand jury on Thursday, for 257 counts of illegal distribution of controlled substances.
The indictment alleges that, between February 1, 2018 and February 13, 2019, Grogan was the owner and operator of Go Beyond Medicine, a medical clinic located in Crescent Springs, Ky., and Grogan unlawfully distributed and dispensed Schedule II controlled substances, outside the scope of a professional medical practice and without a legitimate medical purpose. According to the indictment, Grogan wrote 257 unlawful prescriptions for Oxycodone.
The investigation preceding the indictment was conducted jointly, by the DEA, FBI, the U.S. Department of Health and Human Services, and the Northern Kentucky Drug Strike Force.
Grogan was arraigned on Monday, and his trial date is scheduled for October 26. If convicted, Grogan faces a maximum prison sentence of 20 years. However, any sentence following conviction would be imposed by the Court, after its consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
— END —
Northeast Ohio Correctional Center Correction Officer indicted for bribery and providing cell phones and contraband to inmatesRead the Press Release
United States Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned a three-count indictment charging Skyler Herring, age 27, of Youngstown with bribery and providing cell phones and tobacco to inmates at the Northeast Ohio Correctional Center (NEOCC) while employed as a Correctional Officer.
According to the indictment, from November 2018 to August 2019, the defendant is accused of accepting electronic payments via a mobile payment application in exchange for smuggling cell phones and tobacco into the NEOCC.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This investigation was conducted by the Department of Justice Office of the Inspector General and the Cleveland Division of FBI. This case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
North Suburban Financial Adviser Indicted on Fraud Charges for Allegedly Swindling $450,000 from ClientsRead the Press Release
CHICAGO — A north suburban financial adviser has been indicted on federal fraud charges for allegedly swindling clients who had sought her assistance in purchasing a new home after foreclosure.
MARY MARTINEZ, also known as Mary Flores, 53, of Glencoe, is charged with ten counts of wire fraud in an indictment returned Thursday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
According to the indictment, Martinez owned and operated a number of companies, including Illinois Housing Solutions, America Investment Corporation, and Investor Short Sale Niche, that purported to offer financial services, real estate and mortgage services, and investment opportunities. Martinez advertised on the radio offering to help individuals who had lost their homes through foreclosures to purchase another home and improve their credit.
The charges allege that from 2011 to earlier this year, Martinez made false representations to victims to obtain investment funds, including retirement savings, college funds, and personal savings. Instead of helping victims save money for a down payment on a house, Martinez misappropriated a substantial portion of the victims’ funds to pay her personal and business expenses, including rent payments and retail purchases, the indictment states.
As a result of the scheme, Martinez caused losses to victims of at least approximately $450,000, according to the charges.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
New Jersey Man Sentenced to Three Years in Prison and over $9 Million in Restitution for Drug Rehab Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Gerner, 46, of Shamung, New Jersey, was sentenced to 36 months imprisonment and three years of supervised release by United States District Court Judge Wendy Beetlestone for his role in multiple healthcare fraud schemes as a co-founder of the drug and alcohol rehabilitation facility Liberation Way, which had locations in Yardley, Bala Cynwyd and Fort Washington, Pennsylvania. As part of his sentence, he was also ordered to pay restitution in the amount of $9,338,607 and ordered to forfeit $444,983.
In August 2019, the defendant pleaded guilty to charges of conspiracy to commit health care fraud and conspiracy to commit money laundering for his role as a founder and operating partner of Liberation Way. An investigation into the operations and management of the facility exposed an array of schemes, including: fraudulently purchasing premium insurance policies on behalf of prospective patients so that Liberation Way could bill for expensive “treatments” that it never provided; using pre-signed medical orders for tests and treatments for patients who were not actually seen or examined by the only doctor employed by Liberation Way; paying a different doctor to sign urine-testing orders for patients who were never seen or examined; shipping those urine samples for testing to laboratories in Florida in order to submit claims that were excessive and medically unnecessary, in order to maximize billing to insurance companies; receiving kickbacks for the insurance payments made to the laboratories for these overly frequent and expensive tests; and conspiring to hide the proceeds of the illegal urine-testing kickback scheme through a series of financial transactions involving payments to various shell companies disguised as consulting payments.
“My Office will not tolerate health care fraud in any form, especially the kind that takes advantage of at-risk patients and exploits their addictions,” said U.S. Attorney McSwain. “Those who think that they can game our health care system -- which is already strained under the weight of an ongoing opioid epidemic -- and prey upon vulnerable people will face the consequences. Gerner will rightly spend years in prison and pay millions of dollars as the result of his criminal conduct.”
“The employees of Liberation Way looked at the opioid epidemic devastating Pennsylvania and saw an opportunity to make a buck off the backs of vulnerable people. Pennsylvanians with substance abuse disorder, who deserved care from Liberation Way, were harmed instead,” said Attorney General Josh Shapiro. “I’m proud of the work we’ve done with our partners in the U.S. Attorney’s Office to hold these scam artists accountable and get justice for the people of Pennsylvania.”
“Gerner and his colleagues operated Liberation Way under the guise of helping addicts get healthy,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In reality, the only things that benefitted were these fraudsters’ bank balances. Their elaborate, years-long swindle of the health care system victimized vulnerable patients for profit. The FBI is gratified all involved are being held accountable.”
“The U.S. Department of Labor, Employee Benefits Security Administration (EBSA), works closely with our federal and state law enforcement colleagues to bring to justice those who would, by their criminal activities, tamper with the hard–earned health benefits due the American worker,” said Employee Benefits Security Administration Philadelphia Regional Director Michael Schloss.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor Employee Benefits Security Administration, in conjunction with the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Robert Labar and Kristy Christ.