Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
25 September 2020
Man in Possession of Sawed-Off Shotgun Sent to Federal PrisonRead the Press Release
A man who illegally possessed a sawed-off shotgun was sentenced today to more than three years in federal prison.
Francisco Rubio, age 25, from Waterloo, Iowa, received the prison term after a guilty plea to possession of an unregistered National Firearms Act device.
In a plea agreement, Rubio admitted that on October 11, 2019, he knowingly possessed a Mossberg 500, 20 gauge sawed-off shotgun with an overall barrel length of less than 18 inches. That day, Waterloo police officers were dispatched to an alleyway behind a residence after receiving a report that individuals were attempting to break into a car. When an officer arrived, he observed Rubio seated in the passenger side of a red car. The driver of the red vehicle was running away from a different vehicle. The driver got into the red car and backed down the alley. Ignoring police commands to stop, the driver continued backing her car down the alley until she reached the roadway. The driver then turned her car onto the road and attempted to flee from the police. During the pursuit, the driver turned her car onto another alleyway. While they were traveling down this alleyway, Rubio threw the sawed-off shotgun out of his passenger window
Rubio was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rubio was sentenced to 46 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Rubio is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2001.
Follow us on Twitter @USAO_NDIA.
Man from Angel Fire charged with cocaine traffickingRead the Press Release
ALBUQUERQUE, N.M. – Louis Richard Montoya, 31, of Angel Fire, New Mexico, appeared in court today for a detention hearing on charges of possession with intent to distribute cocaine. Montoya will remain detained pending trial.
According to a federal criminal complaint, Montoya allegedly possessed approximately 6.6 kilograms of cocaine when he was stopped at a U.S. Border Patrol checkpoint west of Alamogordo, New Mexico. If convicted, Montoya faces 10 years to life in prison.
A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The U.S. Border Patrol investigated this case. Assistant U.S. Attorney Clara Cobos is prosecuting the case.
Man Who Bought 7 Firearms for Convicted Felon Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to lying on an ATF form in the course of straw-purchasing seven firearms for a convicted felon and criminal street gang member.
According to court documents, following the recovery of a firearm by the Metropolitan Police Department that had been purchased just one week prior, ATF agents reviewed firearm transaction records and determined that Chad Thomas Lamph, 22, had purchased that firearm and numerous others from federal firearms licensees in December of 2019. For each firearm that he purchased, Lamph certified on ATF Form 4473 that he was the actual transferee / buyer. However, the ATF’s investigation revealed that Lamph had in fact purchased seven of those firearms on behalf of another individual he knew to be a convicted felon and criminal street gang member in exchange for money.
Lamph pleaded guilty to making a false statement with respect to information required to be kept in the records of a federal firearms licensee. Lamph faces a maximum penalty of 5 years in prison when sentenced on December 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Peter Newsham, Chief of the D.C. Metropolitan Police Department, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys John C. Blanchard and Ryan B. Bredemeier are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-225.
Long Island Man Agrees to Donate Personal Protective Equipment Valued at More Than $450,000 to Resolve Price-Gouging CaseRead the Press Release
CENTRAL ISLIP, NY – An agreement was filed today in federal court in Central Islip resolving the criminal case against Amardeep Singh, who was charged in April 2020 with violating the Defense Production Act of 1950 by hoarding personal protective equipment (PPE) amid the COVID-19 pandemic and price-gouging customers of his retail store. Under the terms of his Deferred Prosecution Agreement with the Government, Singh will donate PPE valued at more than $450,000 to hospitals, health care providers, first responders and other essential workers involved with addressing the needs of those affected by the pandemic and working to prevent the spread of COVID-19.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the disposition.
“The defendant has accepted responsibility for taking advantage of a public health emergency for personal profit,” stated Acting United States Attorney DuCharme. “Today’s deferred prosecution agreement is a victory for heroic healthcare workers and first-responders who will benefit from the personal protective equipment relinquished by the defendant in their continuing battle against the COVID-19 virus.”
“This defendant’s attempt to charge unnecessarily high prices for badly needed and vitally important protective gear was an early example of how some people will try to unscrupulously profit from a national health care emergency,” stated head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force Carpenito. “Today’s agreement thwarts that attempt, and resolves the matter by getting this personal protective equipment to the people who need it.”
“Mr. Singh took advantage of being the ‘only game in town’ with PPE during the height of the coronavirus pandemic, by jacking up the prices on life-saving equipment needed by first responders, medical personnel and the general public. Singh held himself out as a local hero but we now know this was totally untrue,” stated USPIS Inspector-in-Charge Bartlett.
On March 18, 2020, in response to the COVID-19 pandemic, President Donald Trump issued Executive Order 13909 invoking the Act making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services as scarce in order to hoard them or sell them for excessive prices.
On April 14, 2020, Postal Inspectors executed a search warrant at Singh’s retail store and a consensual search of the warehouse and seized 23 pallets containing more than 100,000 face masks, 10,000 surgical gowns, nearly 2,500 full-body isolation suits and more than 500,000 pairs of disposable gloves.
On April 24, 2020, Singh became the first person in the nation charged with violating the Act after accumulating merchandise, some of which had been officially designated as scarce, at his retail store in Plainview, and at a warehouse in Brentwood, including 40 shipments of disposable face masks weighing more than 1.6 tons, 14 shipments of disposable surgical gowns weighing more than 2.2 tons, six shipments of hand sanitizer weighing more than 1.8 tons and seven shipments of digital thermometers weighing approximately 253 pounds. Singh then sold those items to the public at inflated prices.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government’s case is being prosecuted by the Office’s Long Island Criminal Division, with assistance from the Department of Justice’s Hoarding and Price-Gouging Task Force. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
AMARDEEP SINGH (also known as “Bobby Singh” and “Bobby Sidana”)
Age: 45
Woodbury, New YorkE.D.N.Y. Docket No. 20-MJ-326
Le Mars Man Pleads Guilty to COVID-19 Related Unemployment FraudRead the Press Release
A Le Mars, Iowa man who stole government funds using a COVID-19 unemployment scheme pled guilty today in federal court in Sioux City.
Dennis George Chinn, age 54, from Le Mars, Iowa, was convicted of theft of government funds.
In a plea agreement, Chinn admitted to falsely reporting his income, stating it was $150 per week so he could get an additional $600 weekly payment, and fraudulently obtaining unemployment benefits related to COVID-19 relief funds to which he was not entitled. In total, Chinn obtained over $13,000 in COVID-19 pandemic CARES Act Iowa unemployment funds.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Chinn remains free on bond pending sentencing. Chinn faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the United States Department of Labor and the Office of Inspector General and the Federal Bureau of Investigation.
Rooting out COVID-19 fraud is a priority of the Department of Justice. On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits.
These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4082.
Follow us on Twitter @USAO_NDIA.
Latin Dragon Nation Associate Sentenced to 60 Months in PrisonRead the Press Release
HAMMOND- Angelina Vilella, 21, of Chicago, Illinois, was sentenced to 60 months of imprisonment following her guilty plea to conspiracy to participate in racketeering activity as an associate of the Latin Dragons Nation street gang, announced U.S. Attorney Kirsch.
According to documents in the case, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory. The Latin Dragon Nation members have been charged with crimes involving in excess of 50 victims, including 15 murder victims.
As part of her involvement in the Latin Dragons Nation, Vilella participated with gang members and associates in acts of violence and other criminal activity. In May 2017, Vilella caused stolen checks to be deposited into her account and the accounts of others. In June 2017, at the direction of a Latin Dragon Nation member, Vilella and another Latin Dragon associate provided a firearm previously used to commit a murder to another Latin Dragon Nation member, with the intention that he would dispose of the murder weapon. In this case, a total of 19 members and associates have been charged with racketeering conspiracy for their participation in Latin Dragon Nation activity. Of those, 14 defendants have pled guilty and 9 are awaiting sentencing.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Joseph A. Cooley, Kevin F. Wolff, Maria N. Lerner, and Special Assistant U.S. Attorney Michael J. Toth.
Justice Department Calls on San Francisco Mayor to End “One Congregant” Rule for Places of Worship to Comply with the ConstitutionRead the Press Release
The Justice Department today sent a letter to San Francisco mayor explaining that the city’s policy of only allowing a single worshiper in places of worship regardless of their size, while allowing multiple patrons in other indoor settings including gyms, tattoo parlors, hair salons, massage studios, and daycares, is contrary to the Constitution and the nation’s best tradition of religious freedom.
The letter, sent by Assistant Attorney General for the Civil Rights Division Eric Dreiband and U.S. Attorney for the Northern District of California, David Anderson, explains that San Francisco’s policy of treating secular businesses more favorably than houses of worship is “wholly at odds with this nation’s traditional understanding of religious liberty, and may violate the First Amendment,” and calls on the mayor to take action to treat places of worship equally with other venues where people share enclosed spaces.
“No government in this free country can attack religion by transforming a house of worship arbitrarily into a place for solitary confinement. People of faith go to churches, synagogues, mosques, and other places to worship with their fellow believers, and they can do so lawfully because the First Amendment to the United States Constitution makes illegal any effort by government to prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband. “That we are dealing with a very serious public health crisis does not permit government to discriminate against religious worshipers by imposing a one-person-per-house-of-worship rule while permitting larger numbers of people to gather in tattoo parlors, hair salons, massage studios, and other places. There is no pandemic exception to the United States Constitution and its Bill of Rights.”
While continuing to enforce the one-congregant rule, San Francisco allows patrons at gyms, hair and nail salons, tattoo parlors, and massage studios so long as 6-foot distancing is followed. Gyms are allowed to open at 10 percent of capacity, daycares to operate with 10 to 12 children per class, and retail establishments generally can operate at 50 percent of capacity.
The letter calls on the city to immediately equalize its treatment of places of worship to comply with the First Amendment.
On April 27, 2020, Attorney General William P. Barr directed Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
Jury Convicts KC Man of Possessing FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was convicted at trial of illegally possessing a firearm.
Kenneth E. Barbee Jr., 33, was found guilty on Wednesday, Sept. 23, of being a felon in possession a firearm.
Detectives with the Kansas City, Mo., Police Department were conducting surveillance on Barbee on March 18, 2020, when he left his residence in a vehicle driven by another person. After officers stopped the vehicle, the driver attempted to pull away from officers but was forced to stop when officers used their vehicles to block their escape.
When Barbee and the driver were ordered out of the vehicle, officers saw a loaded Palmetto State Armory AR pistol and a loaded CZ 9mm handgun on the front passenger floorboard. The driver of the vehicle had an SCCY 9mm handgun in her waistband.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Barbee has a prior felony conviction for assault, a prior felony conviction for domestic assault, two prior felony convictions for receiving stolen property, and a prior felony conviction for robbery.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for three hours before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Sept. 21.
Under federal statutes, Barbee is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Mary Kate Butterfield, Patrick Edwards, and Gregg Coonrod. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Jacksonville Man Sentenced to 15 Years as an Armed Career Criminal on Firearm Ammunition ChargeRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced James Aaron Anderson, Jr. (37, Jacksonville) to 15 years in federal prison for possessing ammunition as a convicted felon. Anderson had pleaded guilty on July 2, 2019.
According to court documents, on August 3, 2018, at approximately 2:00 a.m., an officer from the Jacksonville Sheriff’s Office (JSO), in a marked patrol unit, began following a Chevy Tahoe due to signs of a possibly impaired driver. As the officer began to turn on his emergency lights, the Tahoe made a quick lane change in an effort to evade the marked unit. The Tahoe then fled at a high rate of speed, as multiple JSO marked units pursued it. The Tahoe eventually became stuck in a grassy area when it attempted to turn around. JSO officers arrested the driver, whom they identified as Anderson, the sole occupant in the vehicle.
A search of Anderson’s jacket revealed a .22 caliber revolver, loaded with six rounds of ammunition, and drugs. Subsequent investigation by law enforcement determined that Anderson had been previously convicted of eight prior felonies, including six serious drug offenses, qualifying him as an Armed Career Criminal.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Kevin C. Frein and David B. Mesrobian.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Iowa Man Sentenced to over Six Years in Federal Prison for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced today to over six years in federal prison.
Shawn Kuhse, age 37, of Wadena, Iowa, received the sentence after a March 13, 2020 guilty plea to one count of receipt of child pornography. In a plea agreement, Kuhse admitted that between October 2018 and April 2019 he received child pornography. Kuhse admitted he used a messaging app on his phone to receive child pornography from other users of the app.
Information disclosed at sentencing showed that Kuhse received over 700 images and 300 videos containing child pornography. The child pornography contained images of prepubescent girls involved in sex acts with adult men, adult women, and animals. Kuhse’s sentence was increased because the child pornography he received depicted sadistic, masochistic, or violent conduct.
Kuhse was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kuhse was sentenced to 78 months’ imprisonment. Kuhse must also serve a five-year term of supervised release, and he must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Fayette County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-2073.
Follow us on Twitter @USAO_NDIA.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 22 was:
Robert Maurice LaCroix, 53, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, LaCroix faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. LaCroix was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 20-55.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Illinois Woman Sentenced to Federal Prison for Tax Fraud and Theft of Government PropertyRead the Press Release
A woman who filed 36 fraudulent tax returns, some using the identities of other people, over a two-year period and stole the subsequent refunds was sentenced today to over a year in federal prison.
Toniece King, age 37, from Evanston, Illinois, received the prison term after a March 16, 2020 guilty plea to one count of theft of government property and one count of false claim for refund of taxes.
Information disclosed at sentencing showed that, King used her own name and the names and social security numbers of others to file fraudulent tax returns from January 2015 through January 2017. In total, she filed 36 fraudulent returns, claiming over $160,000 in refunds. Over $65,000 of the fraudulently claimed refunds was paid out. King received some of these refunds on prepaid debit cards that were found in her possession in March 2016.
King was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. King was sentenced to fourteen months’ imprisonment. She was ordered to make $65,481 in restitution to the Internal Revenue Service. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
King was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service - Criminal Investigations and the Cedar County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-118.
Follow us on Twitter @USAO_NDIA.
Illegal Alien from Mexico Sentenced to over 16 Years in Prison for Drug Conspiracy Involving Drugs Sold Near Children’s HospitalRead the Press Release
Jackson, Miss. – Edgar Leonel Soto-Leon, 32, an illegal alien from Mexico, was sentenced today by U.S. District Judge Henry T. Wingate to serve 195 months in federal prison, followed by five years of supervised release, for conspiracy to distribute 2.6 pounds of methamphetamine and 2.1 pounds of heroin, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA).
In May, 2019, Soto-Leon and his co-defendant Matthew Williams, reached an agreement to distribute heroin and methamphetamine. To assist Soto-Leon, Williams made contact with one or more individuals in order to find a buyer for illegal drugs in the possession of Soto-Leon. Through these contacts by Williams, a buyer was identified. Williams spoke directly to the buyer and stated that Soto-Leon was in possession of approximately 3 pounds of methamphetamine known as “ICE” and one kilogram of heroin that he was trying to sell. Williams connected the buyer to Soto-Leon, who began communicating directly with the buyer. Soto-Leon and the buyer reached an agreement on the price for all of the methamphetamine and heroin.
Unknown to either Williams or Soto-Leon, the buyer was actually an undercover agent.
On May 2, 2019, Soto-Leon and the buyer met at a location near the Blair E. Batson Hospital in Jackson where Soto-Leon provided the buyer with methamphetamine and heroin. Williams had assisted the buyer and Soto-Leon by giving them directions to the place where they met. Lab tests later confirmed that Soto-Leon had provided 414.7 grams of methamphetamine which was 99% pure and 424.2 grams of heroin.
On May 3, 2019, Soto-Leon and the buyer met again at a location in Pearl, Mississippi, where Soto-Leon again gave the buyer methamphetamine and heroin. Lab tests later confirmed that Soto-Leon had provided 772.4 grams of methamphetamine which was 98% pure and two containers of heroin containing 344.6 grams heroin and 228.8 grams of heroin. Once the second batch of controlled substances were given to the buyer, law enforcement immediately arrested Soto-Leon. Williams was arrested a few days later.
In total, Soto-Leon and Williams conspired to sell and sold 2.6 pounds of methamphetamine and 2.1 pounds of heroin to the undercover DEA officer. The methamphetamine sold is a type of methamphetamine known as “ICE” due to its purity.
The defendants were indicted and both pled guilty before Judge Wingate on October 18, 2019. Williams was sentenced by Judge Wingate on July 2, 2020 to 146 months in prison.
The case was investigated by the DEA, the Hinds County Sheriff’s Department, the Jones County Sheriff’s Department, the Pearl Police Department, and the Richland Police Department. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Illegal Alien Sentenced to 60 Months in Federal Prison for Role in $4.7 Million Mail/Wire/Healthcare Fraud and Money Laundering SchemeRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Misael Reyes-Tajimaroa, age 36, of Michoacan, Mexico, was sentenced after having pleaded guilty to one count of healthcare fraud conspiracy, one count of mail and wire fraud conspiracy, eight counts of mail fraud, one count of wire fraud, one count of money laundering conspiracy, and one count of money laundering. United States District Judge Thomas O. Rice sentenced Reyes-Tajimaroa to a 60-month term of imprisonment, to be followed by a 3- year term of court supervision after he is released from federal prison. Judge Rice also ordered Reyes-Tajimaroa to pay restitution in the amount of $500,000.
According to information disclosed during court proceedings, Reyes-Tajimaroa, an illegal alien who was residing at various times in Spokane County, Washington, and Clark County, Nevada was an integral member of an extensive healthcare/mail/wire fraud scheme that staged automobile, boating and slip and fall accidents in Spokane, Washington, Liberty Lake, Washington, Coeur d’Alene, Idaho, Shingle Springs, California, Rescue, California, Las Vegas, Nevada and Henderson, Nevada that defrauded insurance companies out of approximately $4.7 million by filing fraudulent bodily injury claims. Reyes-Tajimaroa played “injured” victim, “getaway” driver or “lookout” in approximately sixteen of the phony accidents and received medical treatment for fictitious or intentionally inflicted injuries to various parts of his body. After one phony accident, Reyes-Tajimaroa was airlifted via helicopter to a hospital by first responders. As part of the staging in another accident, Reyes-Tajimaroa used pliers to break off his teeth. Reyes-Tajimaroa also conspired with others to launder money from the fraudulent insurance claims.
United States Attorney Hyslop said, “Reyes-Tajimaroa was involved in a sophisticated and elaborate fraud and money laundering scheme that operated in four different states. Fraud schemes like these ultimately increase insurance premiums and health care costs for law-abiding citizens. The United States Attorney’s Office for the Eastern District ofWashington is resolute in prosecuting aggressively those individuals who may engage in such conduct. I commend the FBI, IRS Criminal Investigation and U.S. Marshals Service for their outstanding work investigating this case.”
FBI Special Agent in Charge Raymond Duda said,“Greed tempts people to do many things, and in this case, even causing self-harm. However, the harm inflicted on honest consumers did not seem to be of any concern to him or his co-conspirators. Mr. Reyes-Tajimaroa will now have the next 42 months to consider whether his participation in this scheme was worth it.”
“Misael Reyes-Tajimaroa directly participated in staged accidents to purposely mislead first responders about his and other’s bodily injuries and by doing so endangered the public who suffered from real emergencies,” said IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Justin Campbell. “IRS-CI will continue to work with the U.S. Attorney’s Office and its law enforcement partners to hold accountable all who conspire to commit fraud.”
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, U.S. Marshals Service and U.S. Attorney’s Office for the Eastern District of Washington Criminal Healthcare Fraud Investigator, with assistance from the National Insurance Crime Bureau. This case was prosecuted by George J.C. Jacobs, III, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Illegal Alien Sentenced for Assaulting A Federal OfficerRead the Press Release
An illegal alien was sentenced yesterday to 18 months’ in federal prison for assaulting a federal officer, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Vance Callendar, Homeland Security Investigations, Detroit Division.
U.S. Attorney Matthew Schneider stated, “Our office continues to prosecute dangerous and violent offenders who are in our country illegally. Our mission is to protect our community from violent criminals, and we will continue to do that by working with our law enforcement partners to keep our borders safe.”
“An assault on a law enforcement officer is unobjectionable, and this individual, illegally present in the U.S., will now face time for his actions. HSI will continue to work with the U.S. Attorney’s Office for the Eastern District of Michigan for the investigation and prosecution of those who think they can operate above the law,” said Vance Callender, special agent in charge for HSI Detroit.
Sentenced was Enrique Ortega-Escudero, age 37. According to court records, Enrique Ortega-Escudero assaulted a federal officer during an immigration arrest on February 2, 2020. During his arrest, Mr. Ortega-Escudero resisted and fought with the ICE agents. While being transported in an ambulance to Detroit Receiving Hospital for evaluation, Mr. Ortega-Escudero escaped. He did so by opening the side door of the rear compartment while the ambulance was moving on Interstate 75 and ran across both lanes of traffic on the interstate. Following a foot pursuit, Mr. Ortega-Escudero again fought with an ICE agent and attempted to remove the agent’s firearm. With assistance from EMTs, Mr. Ortega-Escudero was again detained; however, the ICE agent suffered physical injuries.
Mr. Ortega-Escudero’s case is just one of the many immigration enforcement cases being prosecuted by the United States Attorney’s Office. Since January 1, 2020, the U.S. Attorney’s Office has investigated or prosecuted approximately 80 immigration-related cases despite the increased challenges posed by the current environment. A sampling of cases are highlighted below:
Among those recently prosecuted is Hector Ramirez-Gutierrez, who repeatedly entered the U.S. illegally and used over four dozen aliases during three decades of committing crimes in the United States. Mr. Ramirez-Gutierrez’s lengthy criminal history includes convictions for grand theft, burglary, battery, infliction of corporal injury on a spouse or co-habitant, driving under the influence, and multiple immigration offenses, among others. Most recently, Mr. Ramirez-Gutierrez violated his supervised release by returning unlawfully to the United States after his removal on September 19, 2019 and committing additional theft offenses in early 2020. Mr. Ramirez-Gutierrez was charged with unlawful reentry and sentenced on June 24, 2020 and August 12, 2020 to two consecutive 24 month sentences for the supervised release and unlawful reentry violations.
Gaspar Vallejo-Arias was a lawful permanent resident of the United States until he was convicted for conspiracy to commit Hobbs Act robbery and removed to the Dominican Republic on April 7, 2015. That crime involved Mr. Vallejo-Arias’ participation in a scheme to rob a drug dealer of a large amount of cocaine. Mr. Vallejo-Arias also had other felony convictions for auto-stripping and forgery. Following his removal, Mr. Vallejo-Arias unlawfully reentered the United States and was arrested near St. Clair, Michigan on February 4, 2020. He was charged with unlawful reentry and he was sentenced on June 17, 2020 to time-served.
Rolando Lopez-Lopez was convicted on February 8, 2018 of Operating while Intoxicated Causing Death and Reckless Driving Causing Death in the Third Circuit Court, Detroit, Michigan. For those offenses, he was sentenced to 5 to 15 years’ imprisonment. Mr. Lopez-Lopez had previously been removed from the United States on January 11, 2006. On June 18, 2020, Mr. Lopez-Lopez was charged with unlawful reentry and was sentenced on September 10, 2020 to time-served.
On May 27, 2020, Eduardo Delgado-Campos was convicted of false use of a passport and unlawful reentry. Delgado-Campos was sentenced to six months’ imprisonment for those offenses. Previously, Mr. Delgado-Campos had been convicted of two drug offenses and unlawful entry into the United States. Before his most recent federal conviction, Mr. Delgado-Campos had been removed from the United States by immigration authorities six times.
The U.S. Attorney’s Office routinely investigates and prosecutes alien smuggling, port-running, identity theft, passport fraud, the hiring and exploitation of unauthorized workers, and other immigration offenses that negatively impact the rule of law, public safety, and border security.
Houston woman sent to federal prison for adoption fraud schemeRead the Press Release
HOUSTON – The former owner of a child placement agency in Houston has been ordered to prison following her convictions on multiple counts in an adoption fraud scheme, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI.
The Houston federal jury convicted Simone Swenson, 46, on two counts of mail fraud following a five-day trial Sept. 29, 2019.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Swenson a 24-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard from eight of 2o identified victims as well as an FBI agent who described Swenson’s common scheme and plans to defraud numerous adoptive families. In handing down the sentence, the court noted Swenson lied, concealed information and made false representations to vulnerable adoptive families and victims.
"Simone Swenson took advantage of hopeful adoptive parents who have already been through a difficult journey,” said Turner. “She used these couples as her personal piggy bank and took advantage of them financially and emotionally. This was a seven year-long investigation for FBI Houston that focused not only on a 'poorly-run business', but on an individual whose greed and deceit forever scarred individuals who simply wanted to form a family."
Swenson owned and operated Sans Pareil Center for Children and Family Services LLC which was licensed to operate as both a foster care and child adoption agency. Swenson is no longer operating Sans Pareil following suspension of her license.
At trial, the jury heard Sans Pareil catered to adoptive families that desired to participate in domestic private (non-CPS) adoption program. From on or about January 2013 to on or about January 2014, Swenson defrauded numerous prospective adoptive families with the same birth mother, a scheme known as double matching. In addition to double matching, she obtained money and property by means or materially false and fraudulent pretenses, representations and promises.
Testimony revealed Swenson double matched birth mothers who expected to have only one baby to multiple adoptive families. Once prospective family members wired money and/or mailed it into her accounts, Swenson would find a way, through lies and misrepresentations, to get out of the agreements. Such falsehoods included blaming the birthmother for changing her mind, adoptive families backing out of the match and/or blaming adoptive families for lack of funds in some instances.
The jury heard from six adoptive families who testified Swenson would contact prospective families about birth mothers but would not proceed until agency fees and expenses were paid up front. Swenson would then make promises for a successful adoption. In reliance upon those false representations, prospective adoptive families hired attorneys and other adoption agencies, purchased airline tickets, booked hotel rooms, prepared and purchased items for the expected child’s nursery and transportation and incurred other expenses related to the prospective adoption.
Swenson was always available and responsive to prospective adoptive families prior to receiving agency fees. However, once she received monies from those people, she would become unavailable and would not return phone calls for long periods of time, if at all. When she did have communication with them, she would be brief, inconsiderate and provide vague information regarding the birth mothers and their delivery status.
In addition, Swenson rarely provided invoices or receipts to the adoptive families for their paid fees and expenses. When adoptive families would ask Swenson for proof of payment, she did not respond unless there was money to be collected.
Swenson charged each family member approximately $20,000 to $30,000 each.
Swenson attempted to convince the jury that she was negligent and ran a poor business but did not intentionally defraud the adoptive families.
The jury did not believe those claims and found her guilty.
Swenson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Herkimer County Man Sentenced to 20 Years for Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Daniel M. Passero, Jr., age 35, formerly of Herkimer County, New York, was sentenced today in federal court in Binghamton to serve 20 years in prison for receiving and possessing child pornography.
The sentence was announced by Acting United States Attorney Antoinette T. Bacon, by Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
During Passero’s July 2019 jury trial, the evidence demonstrated that Passero downloaded hundreds of sexually explicit images of children and saved them to a memory card that was later found in a smartphone recovered at Passero’s home. At the time of the offense, Passero was on parole for a prior sex offense against a child, as a result of which he has been designated a Level 3 sexually violent offender by the New York State Division of Criminal Justice Services, Sex Offender Registry.
At sentencing, Senior United States District Judge Thomas J. McAvoy found that Passero had engaged in a pattern of sexual exploitation of children, in that Passero had sexually abused at least two minor children. In addition to the 20-year prison term, Judge McAvoy imposed a 20-year term of supervised release, which will start after Passero is released from prison. Judge McAvoy also ordered Passero to pay $3,000 in restitution to each of four individual victims.
This case was investigated by Homeland Security Investigations (HSI), the New York State Department of Corrections and Community Supervision, and the New York State Police, with assistance from the Gloversville Police Department, Federal Bureau of Investigation (FBI), Burlington Police Department, and Iowa Division of Criminal Investigations.
This case was prosecuted by Assistant U.S. Attorneys Michael F. Perry and Kristen Grabowski, as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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 https://www.justice.gov/psc.
Head of Investment Management Firm Sentenced to 85 Months in Prison in Connection with $18 Million Pre-IPO Securities Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that FRED ELM, a/k/a “Frederic Elmaleh,” the founder and manager of Elm Tree Investment Advisors LLC (“ETIA”), was sentenced today to 85 months in prison for participating in a scheme to defraud investors in multiple investment funds created and controlled by ELM and Ahmad Naqvi, ETIA’s chief operating officer. Among other illicit activity, ELM and Naqvi fraudulently induced more than 50 investors to invest over $18 million based on false representations that investor money would be invested, through the funds, in the shares of well-known privately held technology companies before their initial public offerings (“IPOs”). Instead, the majority of investor funds was misappropriated for personal use, lost through poor trading, or used to repay investors in a Ponzi-like fashion. ELM pled guilty to conspiracy to commit securities fraud and securities fraud on May 15, 2020, before U.S. District Judge Edgardo Ramos, who also imposed today’s sentence. Naqvi pled guilty before Judge Ramos on May 4, 2020, and was sentenced on June 29, 2020.
Acting U.S. Attorney Audrey Strauss said: “Fred Elm told investors the Elm Tree Funds would generate huge profits from investments in privately held technology companies. In fact, the Elm Tree Funds never invested in these pre-IPO companies and never returned a profit. Further, Elm lied to investors to conceal that their money was being comingled, misused, and lost. Now Elm is headed to prison for his crimes.”
According to the Superseding Indictment charging ELM and Naqvi, and other filings in the case:
From at least June 2013 through December 2014, ELM and Naqvi engaged in a scheme to defraud investors in funds that ELM and Naqvi created and controlled at ETIA, where ELM was the founder and manager, and Naqvi was the chief operating officer. ELM and Naqvi raised more than $18 million from over 50 investors in four limited partnerships for which ETIA acted as the fund manager: Elm Tree Investment Fund, LP; Elm Tree Emerging Growth Fund, LP; Elm Tree ‘e’Conomy Fund, LP; and Elm Tree Motion Opportunity, LP (collectively the “Elm Tree Funds”).
ELM and Naqvi falsely represented that the Elm Tree Funds used investor capital to purchase shares in privately held technology companies before their IPOs. These companies included Twitter, Alibaba, Uber, Square, Pinterest, and GoDaddy. Moreover, ELM and Naqvi falsely represented that they had access to these pre-IPO shares because of their relationships with leading venture capital firms, such as Kleiner Perkins Caufield & Byers, Benchmark Capital, and Silver Lake. In truth and in fact, ELM and Naqvi did not invest in the pre-IPO shares of these companies and did not have relationships with these venture capital firms.
ELM and Naqvi comingled the approximately $18 million that was invested in the Elm Tree Funds in a single investment account and then invested only a portion of the money, approximately $7.1 million. At no point did any of the Elm Tree Funds return a profit. Instead, for example, between January 2014 and November 2014, the Elm Tree Funds lost approximately $3.9 million in poor trading.
Moreover, of the investor funds that ELM and Naqvi did not lose in securities trading, ELM routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including to purchase a multimillion-dollar home, high-end furnishings, and other personal items, such as jewelry, daily living expenses, and luxury automobiles, including a Bentley, a Maserati, and a Range Rover.
The conversion of investors’ funds was contrary to the representations that ELM and Naqvi made to investors concerning their and ETIA’s fees. ELM and Naqvi falsely represented that they and ETIA would take a two percent annual management fee plus a performance fee of 20 percent of any profits that the Elm Tree Funds earned. In truth and in fact, ELM converted investor money that far exceeded the two percent management fee. Moreover, because the Elm Tree Funds never returned a profit, ELM, Naqvi, and ETIA were not entitled to any profit-based performance fees.
ELM and Naqvi also used approximately $5.2 million of new investor funds to make payments to earlier investors in a Ponzi-like fashion. To prevent or forestall redemptions, and continue to raise money to fund their scheme, ELM and Naqvi also generated fictitious account statements and made oral and written misrepresentations that their trading strategies were generating consistently positive returns.
ELM was initially arrested in April 2016 and released on bail. In June 2017, approximately one week before his then-scheduled guilty plea, ELM fled to Canada. ELM was subsequently arrested in Canada and extradited to the United States in January 2020. Naqvi, who had been a fugitive since his indictment in 2016, was arrested in Canada and extradited to the United States in November 2019.
* * *
ELM, 51, was also sentenced to three years of supervised release, ordered to forfeit $8,318,840.07, and to pay restitution in the amount of $12,426,293.11.
Ms. Strauss praised the work of Homeland Security Investigations and the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, and thanked the U.S. Securities and Exchange Commission for its assistance. Ms. Strauss also thanked Canadian law enforcement for its support and assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
Harris County Woman Convicted of Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 38-year-old La Porte, Texas, woman has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Jennifer Lynn Culpepper was found guilty of conspiracy to possess with intent to manufacture and distribute methamphetamine, following a three-day jury trial before U.S. District Judge Sean Jordan.
According to information presented in court, in September 2019, DEA, Dallas Enforcement Group One, began investigating a drug trafficking organization operating out of Houston and Dallas, Texas. This organization was responsible for distributing multi-kilogram quantities of methamphetamine. Anthony Rae Ruiz agreed with others to transport approximately nine kilograms of methamphetamine from Houston to Dallas and meet at a gas station in McKinney. Members of DEA Enforcement Group One, the North Texas Criminal Interdiction Unit, and McKinney Police Department established surveillance at the location. Shortly after midnight on Sep. 19, 2019, Ruiz arrived at the gas station. Ruiz exited his vehicle, removed a duffel bag containing methamphetamine from the trunk, and placed it in his backseat.
While in route to a second location to complete the deal, a traffic stop was conducted on Ruiz’s vehicle. Officers encountered Ruiz and Jennifer Lynn Culpepper. A canine officer alerted to the presence of narcotics in the vehicle and police seized approximately 10 kilograms of methamphetamine from the car.
On Sep. 19, 2019, the U.S. Drug Enforcement Administration filed a criminal complaint against Ruiz and J Culpepper. The complaint charged them with conspiracy to possess with intent to distribute methamphetamine. On August 21, 2020, following a guilty plea, Ruiz was sentenced to 292 months in federal prison for his role in the conspiracy.
Under federal statutes, Culpepper faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the DEA Enforcement Group One, the North Texas Criminal Interdiction Unit, and the McKinney Police Department. The case was prosecuted by Assistant U.S. Attorneys from the Plano office. This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez and Colleen Bloss.
####
Hardin County Man Convicted of Conspiracy and Bank FraudRead the Press Release
Jackson, TN– Following a week-long trial with proper COVID-19 health and safety protocols, a federal jury has convicted Charles Ray Smith, 71, of Crump, Tenn., of defrauding three banks in Tennessee and Alabama. D. Michael Dunavant, U.S. Attorney announced the guilty verdict today.
According to information presented in court, Smith owned and operated several aggregate materials businesses in Tennessee, Alabama and Louisiana. From March 2009 until February 2012, Smith defrauded Central Bank in Savannah, Tenn., by depositing and directing others to deposit more than $116 million in fraudulent bank checks into his companies’ bank account. Smith also defrauded Wayne County Bank, in Waynesboro, Tenn., and First Metro Bank, in Muscle Shoals, Ala., by falsifying collateral to obtain loans. As a result, Smith stole more than $ 9.9 million from the victim banks.
The jury convicted Smith of all of the counts in the indictment, charging him with conspiracy to commit bank fraud, and seven counts of bank fraud.
The sentencing hearing is scheduled for January 5, 2021, before Chief U.S. District Judge S. Thomas Anderson, who also presided over the trial. Smith faces up to 30 years in prison for each count in the indictment, and a $1 million fine. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "The financial fraud committed by this defendant is massive, and had a significant negative impact on the shareholders, employees and customers of his bank victims. The U.S. Attorney’s Office places a high priority on protecting the security and integrity of transactions, deposits and assets of financial institutions, and this guilty verdict demonstrates that commitment. Smith has now been held accountable for his brazen crimes of dishonesty."
The case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Dean DeCandia and Matt Wilson prosecuted this case on behalf of the United States.
###
Greenbrier County Man Sentenced to Federal Prison for Sex Offense Involving MinorRead the Press Release
BECKLEY, W.Va. – Matthew David Lambert, 26, of Renick, was sentenced to 100 months in federal prison for attempted receipt of child pornography. Upon release from prison, Lambert will serve a 25 year term of supervised release and be required to register as a sex offender.
“Each and every day my team works tirelessly to protect West Virginia’s children from predators like Lambert,” said United States Attorney Mike Stuart. “And we seek justice for all victims through prosecuting cases this.”
Lambert previously admitted that from on October 31 to November 1, 2019, he communicated via a social messaging application with a minor he believed to be a 14-year-old girl he understood to be located in Lewisburg. Despite knowing her age, Lambert repeatedly asked her to send him sexually explicit photographs of herself. When the purported minor refused, they agreed that they would meet at a hotel in Lewisburg, to engage in sexual activity, and Lambert would record a video of this sexual activity on his cell phone. On November 1, 2019, Lambert traveled to a hotel in Lewisburg in order to engage in sexual intercourse with the purported 14-year-old girl and was placed under arrest.
The investigation was conducted by the Federal Bureau of Investigation’s West Virginia Child Exploitation and Human Trafficking Task Force, which includes task force officers from the West Virginia State Police, the Kanawha County Sheriff’s Office, and the Ashland (Kentucky) Police Department, with additional assistance from the Greenbrier County Sheriff’s Office. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00295.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Greenbrier County Man Pleads Guilty to Breaking into United States Post OfficeRead the Press Release
Defendant stole a postal meter, money and stamps
BECKLEY, W.Va. – A Greenbrier County man entered a guilty plea to the felony offense of breaking into a United States Post Office, announced United States Attorney Mike Stuart. Matthew Riffle, 29, of Rupert, faces up to five years in prison and a $250,000 fine when he is sentenced on January 8, 2021. He also will be required to pay restitution to the United States Post Office.
“Riffle not only broke into a post office- he admitted he broke into two,” said United States Attorney Mike Stuart. “The security of our post offices is critical. In a season of massive amounts of ballots being delivered by mail, this case echoes the worries of many in the country as to post office and postal service security. I commend the tremendous work of the U. S. Postal Inspection Service and the Sheriff’s Departments of Greenbrier and Fayette counties.”
On two successive days, Riffle broke into two different United States Post Offices. On March 31, 2019, Riffle used a pry bar to break into the Springdale, Fayette County, United States Post Office. Once inside, he took a postage meter, mail, stamps and some cash. On the previous day, Riffle broke into the Smoot, Greenbrier County, United States Post Office and took some cash. Finally, on April 1, 2019, Riffle again attempted to break into the Smoot Post Office, but was not successful due to the installation of a new door lock and security mechanism. Riffle was arrested on April 2, 2019 by the Greenbrier County Sheriff’s Department. Riffle was advised of his Miranda rights and agreed to give a statement. He admitted to breaking into both of the post offices, and attempting to break into the Smoot Post Office a second time. Riffle stated that his goal was to take the postal machine that prints money orders, but he took the postage stamp meter by mistake. Law enforcement recovered a number of the stolen items from Riffle’s home, including the postage meter from the Springdale Post Office.
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. 5:20-cr-00064.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Georgia Man Sentenced to Prison for Running Ponzi SchemeRead the Press Release
A Georgia man has been sentenced to 60 months in prison followed by three years of supervised release for running a Ponzi scheme that ensnared over a hundred victims, and induced college students and others to part with money for his own personal benefit.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Charles Peeler of the Middle District of Georgia, and Special Agent in Charge Chris Hacker of the FBI’s Athens Field Office made the announcement.
Syed Arham Arbab, 23, of Atlanta, Georgia, was sentenced by U.S. District Judge C. Ashley Royal of the Middle District of Georgia. Judge Royal also ordered the defendant to pay $509,032.12 in restitution to his victims. Arbab pleaded guilty in October 2019 to one count of securities fraud.
As part of his guilty plea, Arbab admitted that from May 2018 through May 2019, while enrolled at the University of Georgia campus in Athens, Georgia, he solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively, APC), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC, and that he made material misrepresentations to those investors in order to induce them to invest and maintain their investments with him.
Arbab admitted that he made a number of misrepresentations in order to persuade victims to invest with him, including misrepresenting the funds’ returns, the number of investors, the total funds invested and the nature of the investment plays being made. He also admitted fabricating account statements. Victims invested approximately $1 million with Arbab in the course of his scheme, with Arbab falsely promising rates of returns as high as 22 percent or 56 percent, when his overall returns were nowhere near these amounts. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment.
Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors. Further, when Arbab learned that some prospective investors were UGA football fans, he told them that a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business. In fact, ARBAB had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Arbab further admitted that he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018 and 2019.
The FBI investigated the case. Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia’s Complex Frauds Unit are prosecuting the case. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information here: https://www.justice.gov/criminal-fraud/victim-witness-program.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Georgia Attorney Sentenced to More Than 12 Years for Attempting to Entice A Minor to Engage in Sexual Activity and Transmitting Obscene Material to A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Richard Franklin Jensen, III (34, Atlanta), a licensed attorney in Georgia, to 12 years and 7 months in federal prison for attempting to entice a minor to engage in sexual activity, and attempting to transfer obscene material to a minor. The court also ordered Jensen to forfeit the electronic devices he had used in the commission of the offenses.
Jensen had been found guilty by a jury on November 22, 2019. The court made a specific finding that Jensen obstructed justice when he lied under oath during the trial. The court also found that Jensen used his special skills as a trained attorney to fabricate a defense, claiming that he had been exercising his First Amendment rights and conducting research for a book he was writing while falsely implicating his former law professor in his crimes.
According to the evidence presented at trial, between May 23 and June 1, 2015, Jensen communicated on a social media website, via email, and over text messages with someone he believed to be a single mom looking for a man to sexually abuse her 12-year-old daughter. In reality, Jensen was talking to an undercover agent. During the conversations, Jensen told the “mom” that she had found the guy that she had been looking for, and that he was willing to travel from Atlanta to the Tampa Bay area to teach the child about sex and the “art of pleasing a man.” In addition to providing graphic details about the sexual abuse he wanted to perform on the child, Jensen asked the “mom” to prepare the child for the sexual encounter by breaking the child’s hymen in advance of his visit to Tampa.
Jensen planned to abuse the child over a period of time, stating that “it couldn’t be a one-time thing,” since girls her age form attachments to the person with whom they have their first sexual encounter. In his process of grooming the child, Jensen promised to buy “sexy big girl clothes and underwear,” complimented the child’s “sexy little body,” and wanted the mom to let the child watch pornography so the child could prepare for sex with Jensen.
Jensen also emailed and messaged the purported child, and graphically described the sexual abuse that he wished to engage in with the child. Jensen also sent multiple explicit pictures of himself to the mom to share with the child.
“Our communities are safer today with this child predator being put behind bars,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Francis D. Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former University of Cincinnati basketball player ordered to pay more than quarter of a million dollars for failing to file taxesRead the Press Release
CINCINNATI – A former prominent college basketball player, who currently plays professionally overseas, was sentenced in U.S. District Court today for failing to file tax returns in the United States.
Yancy D. Gates, 31, of Cincinnati, was sentenced to one year of probation and ordered to pay nearly $270,000 in restitution to the IRS for failing to pay his taxes.
According to court documents, since 2012, Gates has played professional basketball for teams in Lithuania, Israel, China Germany and France.
Gates earned anywhere from $80,000 for his first season to $80,000 per month during the season he played in China. In addition to his salary, Gates’ employer teams provided him with all of his needs while living abroad, including his apartment, utilities, a car, health insurance, transportation, and several round trip flights he could use for himself or for family and friends.
During the offseason, Gates would return to the Southern District of Ohio to live.
Gates knew he was required to report his foreign earned income on a U.S. tax return, but has never filed a return nor reported any of his income from playing professional basketball.
Gates was charged by a bill of information in August 2019 pleaded guilty in January 2020 to two counts of willfully failing to file tax returns. His case was unsealed today.
Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge of the IRS-Criminal Investigation Cincinnati Field Office, announced the sentence imposed by U.S. Magistrate Judge Karen L. Litkovitz. Assistant United States Attorney Anthony Springer is representing the United States in this case.
# # #
Former UGA Student Sentenced to Maximum Prison Term for Running A Ponzi Scheme from His Fraternity HouseRead the Press Release
Macon, GA -- A former University of Georgia undergraduate student who operated a Ponzi scheme which collected approximately $1 million in investments and defrauded 117 investors, including fellow students and their families, was sentenced to 60 months in prison this morning, the maximum prison sentence allowed under the law, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Syed Arham Arbab, 23, of Atlanta, was sentenced to 60 months in prison followed by three years of supervised release by United States District Judge C. Ashley Royal. In addition, Arbab was ordered to pay $509,032.12 in restitution. Arbab pleaded guilty on October 11, 2019 to a one-count information charging him with securities fraud. There is no parole in the federal system.
“Scammers who choose to operate in the Middle District of Georgia will be caught and prosecuted. Arbab preyed on unexperienced investors, including his own fellow students, by weaving a despicable web of lies to steal from people who trusted him. Arbab lied about pursuing a MBA, lied about having the support of a famous UGA grad, lied about the amount of capital he raised and lied about what he was doing with investors’ money. Arbab is not some sloppy bookkeeper. He never had the capital to back up the phony returns he promised investors. Arbab took other people’s money and spent it on lavish trips to Las Vegas, expensive clothing, fine dining, adult entertainment and luxuries for himself. His criminal actions have landed him in prison,” said U.S. Attorney Charlie Peeler. “I want to thank the FBI and the SEC for their help investigating this classic Ponzi scheme, and bringing a measure of justice to the 117 victims.”
"Arbab's lies and deceit to profit personally from the hard-earned money of investors, many of them fellow students, were unconscionable," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The victims will never recover their losses. It is a stark reminder to investors to be extremely careful where they entrust their money and be skeptical of offers that sound too good to be true."
Arbab admitted he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018. Arbab’s illegal activities occurred between May 2018 through May 2019, while he was enrolled as an undergraduate student at the University of Georgia. Arbab solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively “APC”), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC.
Arbab made several misrepresentations in order to persuade victims to invest with him. The defendant fabricated account statements, misrepresenting the fund’s returns, the number of investors, and the total funds invested as well as the nature of the investment plays being made. Victims invested approximately $1 million with Arbab during his scheme, with Arbab falsely promising rates of returns as high as 22% or 56%, when his overall returns were nowhere near these amounts. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment. Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors.
Arbab continued to deceive victims after he learned that some prospective investors were UGA football fans, telling them a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business; in fact, he had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia prosecuted the case for the Government. The criminal investigation was conducted by the FBI. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission.
Questions can be directed to Pamela Lightsey, Public Information Officer for the Middle District of Georgia, at (478) 621-2603, or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former Teacher's Aide Pleads Guilty to Child Pornography Charges After Attempting to Have Sex with A Minor ChildRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christian Michael Stutes, 24, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to receipt and distribution of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between April 12 and December 13, 2019, the defendant engaged in sexually explicit conversations via text message with an individual he believed to be the father of a 10-year-old male. The individual was actually an undercover FBI agent. During their conversations, Stutes discussed paying $150 to have sex with the 10-year-old male. On December 13, 2019, the defendant traveled to Brighton, NY, to meet and engage in commercial sex with the 10-year-old boy. Stutes was arrested by law enforcement officers at that time.
In addition, the defendant knowingly received and distributed images of child pornography. On the date of his arrest, Stutes possessed approximately 61 videos and 450 images of child pornography. Some of the images included prepubescent minors, as well depictions of violence.
At the time of his arrest, the defendant was employed as a teacher’s aide at a local child care facility, and was previously employed at various children’s camps.
The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for December 18, 2020, at 11:00 a.m. before Judge Geraci. .
# # # #
Former Real Estate Attorney Sentenced to 66 Months in Prison for Defrauding Clients and LendersRead the Press Release
BOSTON – An former attorney was sentenced today in federal court in Springfield in connection with attempting to defraud and defrauding clients, investment firms and commercial lenders.
Phillip R. Williams, of Easthampton, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 66 months of in prison and three years of supervised release. In December 2019, Williams pleaded guilty to wire fraud, engaging in financial transactions greater than $10,000 of proceeds derived from criminal activity, money laundering and tax fraud.
In his capacity as an attorney, Williams maintained various bank accounts, including Lawyers’ Trust Accounts, at several banks. Williams was required to hold clients’ funds in the Lawyers’ Trust Accounts with the care required of a professional fiduciary, for the exclusive benefit of his clients.
In 2014, Williams engaged in numerous personal transactions with $453,695 belonging to two individuals who had transferred these funds into one of Williams’s Lawyer’s Trust Accounts for purposes of obtaining a bank loan. In April 2015, Williams failed to report the stolen money on his 2014 individual federal income tax return and in September 2015 Williams again failed to report the stolen money on his amended 2014 individual federal income tax return.
In addition, between April 14, 2015 and Nov. 1, 2017, Williams received $230,500 from a client in three checks to purchase land. Williams deposited these funds into his bank accounts, but instead of using those funds to purchase land for the client he engaged in various personal transactions with the money. In order to conceal those personal transactions, Williams sent e-mails to the client that falsely indicated he had used the money to purchase land from at least Nov. 28, 2018 to Dec. 3, 2018,
Between June 2, 2017 and Oct. 17, 2018, Williams fraudulently obtained loans in the name of the client and his company from two commercial lenders: ProBuilder Financial, LLC and Velocity Commercial Capital. For these loans, Williams falsely witnessed or notarized the forged signature of the client, who did not authorize or even know about the fraudulent loan applications. ProBuilder lent a total of $340,000 and Velocity lent a total of $334,000. Williams received four wire transfers of loan proceeds to his bank accounts totaling $379,888, which he spent for his own personal use. In February 2019, after ProBuilder sought repayment of its loans, Williams sent fraudulent e-mails attaching a mortgage on his home that bore the falsely notarized and forged signature of his ex-wife, a false pre-approval letter for a loan to his mother that bore the forged signature of a bank officer, and a false power of attorney that bore the forged signature of the client.
From Feb. 1, 2019 to March 31, 2019, Williams defrauded a private investment firm, Lore Investment Group, LLC, of approximately $1.1 million and attempted to defraud another private investment firm, Battles Capital Investments, of approximately $1.2 million, both concerning his purchase of a property in Saint Petersburg, Fla.
Between Jan. 16, 2019 and March 2, 2019, Williams attempted to defraud three other commercial lenders by obtaining loans (in the amounts of $1.365 million, $1.35 million, and $1.7 million), either on behalf of his client or himself, to purchase another property in Boston.
United States Attorney Andrew E. Lelling; Joleen Simpson, Acting Special Agent In Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Former Rapides Parrish Corrections Officer Sentenced to 11 Months in Federal Prison for Assaulting InmateRead the Press Release
The Justice Department announced today that a former correctional officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, was sentenced today in federal court for assaulting an inmate detained at the facility.
Dominic Davidson, 27, was sentenced by U.S. District Court Judge Dee Drell to 11 months in federal prison, followed by one year of supervised release. Davidson previously pleaded guilty on June 11, 2020, to one misdemeanor count of violating the civil rights of an inmate in his custody.
“Physical, violent, and unjustified abuse by members of our law enforcement community is unlawful,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Justice Department is dedicated to ensuring that no one in this country is above the law and will continue to prosecute anyone who uses a position of power illegally to violate the civil rights of others.”
“Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused,” said Acting U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana. “The abuse of authority by this law enforcement officer and the violation of the inmate’s civil rights will not be tolerated. We will continue to pursue cases where this type of abuse and indiscretion occurs”
“Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment,” said FBI Special Agent in Charge Bryan Vorndran. “The law suffers the most when those in a position of trust abuses their power. The FBI is appreciative of its partnerships with the Rapides Sheriff's Office, the U.S. Attorney’s office of the Western District of Louisiana and the trial attorneys from the Department of Justice Civil Rights Division.”
According to plea documents and information presented in court, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
Former Rapides Parish Correctional Officer Sentenced for Assaulting InmateRead the Press Release
ALEXANDRIA, La. – A former correctional officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, was sentenced today in federal court for assaulting an inmate detained at the facility, Acting United States Attorney Alexander C. Van Hook announced.
Dominic Davidson, 27, was sentenced by United States District Judge Dee Drell to 11 months in federal prison, followed by one year of supervised release. Davidson previously pleaded guilty on June 11, 2020, to one misdemeanor count of violating the civil rights of an inmate in his custody.
According to plea documents and information presented in court, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
“Physical, violent, and unjustified abuse by members of our law enforcement community is unlawful,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Justice Department is dedicated to ensuring that no one in this country is above the law and will continue to prosecute anyone who uses a position of power illegally to violate the civil rights of others.”
“Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused. The abuse of authority by this law enforcement officer and the violation of the inmate’s civil rights will not be tolerated. We will continue to pursue cases where this type of abuse and indiscretion occurs,” stated Acting United States Attorney Alexander C. Van Hook.
SAC Bryan Vorndran stated, "Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment. The law suffers the most when those in a position of trust abuses their power. The FBI is appreciative of its partnerships with the Rapides Sheriff's Office, the US Attorney’s office of the Western District of Louisiana and the trial attorneys from the Department of Justice Civil Rights Division.”
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division prosecuted the case.
# # #
Former Houston Independent School District Employee Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – A former employee of the Houston Independent School District pleaded guilty today in connection with her involvement in a scheme to use bribery and fraud to facilitate cheating on the ACT and SAT exams.
Niki D. Williams, 46, of Houston, Texas, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud and honest services wire fraud and mail fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 21, 2020. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $20,000 and restitution.
Williams administered the SAT and ACT exams at the public high school in Houston where she worked. In exchange for bribe payments directed to her by co-conspirators William “Rick” Singer and Martin Fox, and in violation of her duty of honest services to the ACT and the College Board, Williams allowed another co-conspirator, Mark Riddell, to secretly take ACT and SAT tests in place of the children of Singer’s clients or to replace their exam answers with his own corrected answers. Williams then returned the falsified exams to the ACT and College Board for scoring.
Singer, Riddell and Fox previously pleaded guilty and are cooperating with the government’s investigation. Williams is the 41st defendant to plead guilty in this case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Financial Planner Sentenced to Federal Prison for Investment Fraud and Failure to File Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Former financial planner James A. Young III, 50, of Milton, was sentenced today to 51 months in federal prison after having pled guilty to wire fraud and failure to file tax returns. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
“The fact that so many of his victims were elderly and vulnerable makes Young’s actions particularly appalling,” said U.S. Attorney Keefe. “We will continue to work with our law enforcement partners and do everything within our power to combat elder abuse and financial fraud targeted at seniors.”
Between 2010 and 2014, while working as a financial planner, Young solicited his clients and others to invest money in false “side investments,” including real estate investments for property he did not own and investments in an oil and gas company with which he had no relationship. Young presented false documents to potential investors and falsely claimed that he was personally invested in order to convince them to invest. Almost all of Young’s victims were between the ages of 55 and 90. For those who agreed to invest, Young simply pocketed their money, which totaled over half a million dollars, for his own personal use. In some instances, Young used money obtained from investors to pay back other investors. He fraudulently claimed the funds represented returns or interest on their investments in order to keep the scheme going. Young also failed to file his federal tax returns for 2012, 2013, and 2014.
“We take seriously our charge to investigate tax crimes and financial fraud,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “But we get a little added motivation when a crook’s victims are among the most vulnerable. Fraudsters beware: if you target our seniors, your plunders will only last so long before you attract the full force of federal, state, and local law enforcement working together to bring you to justice.”
“The significance of this fraud case, magnified by the sheer volume of victims, underscores once again the strength and effectiveness of our crime-fighting partnerships and shared mission to hold people responsible for financial rip-off schemes,” said Larry Ashley, Okaloosa County Sheriff.
As part of his sentence, Young was ordered to pay $402,207.71 in restitution to two dozen victims and $125,107.33 in restitution for unpaid taxes to the Internal Revenue Service. As a result of his crimes, the Securities and Exchange Commission barred Young from being involved in the securities industry, including associating with any broker, dealer, investment advisor, or transfer agent and participating in any offering of a penny stock.
Assistant United States Attorney Alicia H. Forbes prosecuted the case following a joint investigation by the Internal Revenue Service-Criminal Investigation and the Okaloosa County Sheriff’s Office. This case is part of the Department of Justice’s Elder Justice Initiative, which combats elder abuse and financial fraud targeted at seniors and is a key priority of the Department of Justice and the United States Attorney’s Office for the Northern District of Florida.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. YoungFormer Everton City Clerk Sentenced to 10 Years for Money-Laundering ConspiracyRead the Press Release
SPRINGFIELD, Mo. – The former city clerk in Everton, Missouri, has been sentenced in federal court for her role in a money-laundering conspiracy related to methamphetamine trafficking.
Kristy A. Conn, 46, of Everton, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Sept. 23, to 10 years in federal prison without parole.
“This defendant was placed in a position of trust and responsibility,” said U.S. Attorney Tim Garrison, “but chose to poison her community by enabling violent criminals to distribute large amounts of methamphetamine in southwest Missouri.”
“This sentencing shows there are consequences to criminal behavior,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “IRS-CI, the U.S. Attorney’s Office, and law enforcement partners will continue to unravel money laundering schemes such as what Mrs. Conn did.”
Conn pleaded guilty on Nov. 1, 2019, to conspiracy to commit money laundering. Conn admitted that she participated in the money-laundering conspiracy from June 20 to Dec. 6, 2017. During that time, Conn was the city clerk in Everton. Conn admitted that she directed Ginger L. Huerta, 41, of Halfway, Missouri, to send wire transfers of the proceeds from the distribution of methamphetamine to members of the drug-trafficking organization in California and Mexico.
The drug-trafficking organization was responsible for the distribution of more than 4.5 kilograms of methamphetamine in the Springfield, Missouri, area. Huerta pleaded guilty on Oct. 31, 2019, in a separate but related case, to her role in both the drug-trafficking and money-laundering conspiracies and awaits sentencing.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.Feds Charge Man for Placing Louisville Police Helicopter at RiskRead the Press Release
LOUISVILLE, Ky. – A man who pointed a laser pointer at a Louisville Metro Police Department helicopter blinding the pilots has been charged by federal criminal complaint, announced United States Attorney Russell Coleman. Following the temporary blindness from the beam of the laser pointer, the two officers immediately encountered headaches that impaired their ability to safely pilot the helicopter.
“Risk the safety of police or the public in violation of federal law in Louisville and expect swift and certain federal prosecution,” said U.S. Attorney Russell Coleman.
“Aiming a laser at aircraft is an incredibly dangerous act,” said FBI SAC Robert Brown. “Last night’s incidents threatened the safety of law enforcement who were dutifully protecting lawful protestors. The FBI will continue working with our partners to identify and investigate individuals who threaten the safety of our community.”
“Aiming a laser at our helicopter is not only illegal but it puts the lives of our officers in great danger,” said LMPD Chief Robert Schroeder. “We appreciate the support of our federal partners at the FBI and the US Attorney Russell Coleman.”
Manuel Martin Salazarleija Jr., 25, of Louisville, Kentucky, has been charged with aiming a laser at an Aircraft in violation of 18 United States Code, Section 39A.
According to the criminal complaint, on September 25, 2020, a Louisville Metro Police Department (LMPD) helicopter was performing surveillance of a vehicle fleeing the scene of a Walgreens burglary in Louisville, Kentucky. While conducting surveillance, at approximately 12:15 am, the two officers piloting the helicopter were temporarily blinded by a laser being pointed directly at the helicopter. Following the temporary blindness from the beam of the laser pointer, the two officers immediately encountered headaches that impaired their ability to safely pilot the helicopter.
Special Agents with the FBI were able to determine the exact location of the occurrence while on the ground. Salazarleija was located within a residence on East Kentucky Street, Louisville, Kentucky. The FBI agents interviewed Salazarleija regarding the incident. Salazarleija admitted to intentionally aiming the beam of the laser pointer at the LMPD helicopter while the aircraft was in flight. He said he was trying to disrupt the helicopter that he assumed was surveilling the protests in Louisville.
Salazarleija further admitted to dismantling the laser pointer and hiding it in a crawl space within his bedroom. Salazarleija shined the laser from his bedroom window located on the third floor of the residence on East Kentucky Street.
Helicopters operated by other law enforcement agencies and news station WLKY also reported being targeted by laser pointer beams while in flight over this area.
The charge carries a fine or imprisonment of not more than 5 years, or both.
The case is being investigated by the Louisville Metro Police Department and the Federal Bureau of Investigation.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
####
Federal jury finds two men guilty of felon in possession of firearms or ammunitionRead the Press Release
A federal grand jury in Cleveland and Akron this week returned separate guilty verdicts for two men charged with felon in possession of a firearm or ammunition. These are separate cases and are not related. They are the first federal jury trials held in the Northern District of Ohio since March of earlier this year.
“Federal jurors in Cleveland and Akron sent a strong message to those who illegally possess weapons or ammunition,” said U.S. Attorney Justin Herdman. “Both of these men have a long history of previous convictions for crimes of violence– including multiple domestic violence convictions. Statistics show that domestic violence offenders with a firearm are far more likely to potentially use it against their spouse or law enforcement. These verdicts are a victory for the victims of these offenders and for the cities of Akron and Cleveland. We have not let the COVID-19 pandemic reduce the timeliness and effectiveness of our law enforcement response, and we are pleased that the criminal justice system has been able to safely move forward with jury trials during this difficult time.”
A federal jury in Cleveland convicted Jaron R. Kirkland, age 35, of Akron, on Monday, September 21, on one count of felon in possession of firearm or ammunition.
According to the indictment in this matter, on or about May 31, 2019, Kirkland knowingly possessed a .380 caliber semi-automatic pistol and three rounds of ammunition for said firearm. Kirkland is prohibited from possessing a firearm after having been previously convicted of two separate felony domestic violence charges on June 18, 2015 and November 8, 2016, both in the Summit County Common Pleas Court.
Kirkland is scheduled to be sentenced on January 21, 2021, before Judge James S. Gwin. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department and was prosecuted by Assistant U.S. Attorneys Damoun Delaviz and Yasmine Makridis.
A separate federal jury in Akron convicted Ronald Mickel, age 41, of Lorain, on Tuesday, September 22, on one count of felon in possession of ammunition.
According to the indictment in this matter, on November 26, 2019, Mickel knowingly possessed 32 rounds of 9mm Luger ammunition. Mickel is prohibited from possessing a firearm or ammunition after having been previously convicted of felony aggravated robbery on June 18, 1999, felony domestic violence on May 27, 2014, felony domestic violence and intimidation of a victim on July 27, 2015, felony burglary on September 30, 2015, and felony domestic violence in January of 2019, in the Lorain County Common Pleas Court.
Mickel is scheduled to be sentenced on January 14, 2021 before Judge Sara Lioi. This case was investigated by ATF and Ohio Adult Parole Authority and was prosecuted by Assistant U.S. Attorneys John C. Hanley and Bryson Gillard.
Extradited Colombian National Sentenced in Manhattan Federal Court to 9 Years in Prison for Narcotics TraffickingRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced that SANTIAGO LONDONO-VELEZ, a/k/a “Zack,” a/k/a “Carlos Avila,” a Colombian national, was sentenced today to 108 months[1] in prison for his participation in a Colombian drug trafficking organization that conspired to distribute significant quantities of heroin in the United States. On October 25, 2019, LONDONO-VELEZ pled guilty to a conspiracy to distribute and possess with intent to distribute heroin before U.S. District Judge P. Kevin Castel, who imposed today’s sentence. LONDONO-VELEZ’s co-defendant, Rolando Francisco Ossa-Calderon, was previously sentenced by Judge Castel to nine years in prison for his role in the conspiracy.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Santiago Londono-Velez was responsible for the importation of multi-kilogram quantities of heroin and cocaine into the U.S. The prison sentence he received today is commensurate with his admitted crime.”
DEA Special Agent in Charge Raymond P. Donovan said: “Regional Priority Target Londono-Velez has found himself in the United States again, this trip with a visa based on justice. His sentencing underscores law enforcement’s commitment to stemming the flow of illegal drugs into the United States. I commend our law enforcement partners on their diligent efforts in this investigation and prosecution.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “With an extensive criminal history in the United States, Londono-Velez is again headed to prison for narcotics trafficking after moving cocaine and heroin through New York and Europe. It is with the incredible collaboration between federal and state law enforcement agencies that those criminals who move highly addictive drugs through our borders will face the consequences of their illicit acts.”
State Police Superintendent Keith M. Corlett said: “This investigation and today’s sentencing are evidence of the commitment we share with our law enforcement partners in keeping dangerous drugs off of our streets. This organization utilized ships to transport large quantities of dangerous drugs to the New York area and Europe. Great police work has stopped this enterprise and this career criminal. The State Police remain committed to partnering with other members of law enforcement to eliminate these types of operations and shutting down the distribution of illegal drugs.”
According to the Indictment and other filings in the case:
From at least in or about 2015 through in or about 2016, LONDONO-VELEZ was a member of a Colombian drug trafficking organization. LONDONO-VELEZ’s role in the organization was to coordinate the shipment of multi-kilogram loads of cocaine and heroin to the New York area and Europe via cargo containers on ships in which the narcotics were frequently concealed in loads of fresh produce. In one drug transaction that took place on November 3, 2015, LONDONO-VELEZ coordinated a delivery of six kilograms of heroin, which has a street value of more than $360,000, by his co-conspirator Ossa-Calderon to an undercover law enforcement officer in Queens, New York.
LONDONO-VELEZ was previously convicted twice in the United States for felony narcotics offenses. In 1995, he was sentenced in the U.S. District Court for the Middle District of Florida to 57 months in prison for a conspiracy to distribute approximately 47 kilograms of cocaine and deported to Colombia in 1999. After illegally reentering the United States in 2003, LONDONO-VELEZ was sentenced in New York State Supreme Court in Queens County to six years in prison for criminal possession of approximately 40 kilograms of cocaine in 2006. LONDONO-VELEZ was also convicted of illegal reentry in this District and deported to Colombia in 2011. In connection with the charges in this case, LONDONO-VELEZ was arrested in Colombia on August 8, 2018, and extradited to the United States on August 16, 2019.
* * *
In addition to the prison term, LONDONO-VELEZ, 50, was sentenced to five years of supervised release.
Ossa-Calderon, 42, of Elmont, New York, pled guilty to conspiracy to distribute and possess with intent to distribute heroin on March 13, 2018, and was sentenced by Judge Castel on June 12, 2018, to 108 months in prison and four years of supervised release.
Ms. Strauss praised the outstanding investigative work of the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
Ms. Strauss also thanked the DEA’s Bogota Country Office, the United States Marshals Service, and the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, which provided significant assistance in securing the defendant’s extradition from Colombia.
The prosecution of his case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Sagar K. Ravi and Jilan J. Kamal are in charge of the prosecution.
[1] The 108-month sentence includes the 13 months LONDONO-VELEZ was incarcerated in Colombia pending extradition.
Dominican National Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was indicted yesterday by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl and cocaine.
Jose Guerrero, 28, was indicted on two counts of distribution of and possession with intent to distribute fentanyl and oxycodone, three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. Guerrero was previously charged by criminal complaint and arrested on Aug. 26, 2020. He has been in federal custody since his arrest.
According to charging documents, Guerrero made five separate sales of fentanyl and oxycodone powder and pills to an undercover law enforcement officer between June and August 2020 in the Saratoga Street area of Lawrence. Shortly after making his fifth sale to the undercover officer, Guerrero was arrested.
The charges of distribution of and possession with intent to distribute fentanyl and oxycodone carry a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charges of distribution of and possession with intent to distribute 40 grams or more of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Pleads Guilty to Obstructing Telemedicine InvestigationRead the Press Release
LITTLE ROCK-A Dallas-area doctor pled guilty this afternoon to obstructing a federal health care investigation. Cody Hiland, United States Attorney for the Eastern District of Arkansas, Michael C. Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service Southwest Field Office, Patrick Roche, Acting Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General South Central Field Office, Miranda L. Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced Dr. Lorraine De Blanche, 56, pled guilty this afternoon before U.S. District Judge Brian S. Miller.
Patient complaints and a surge in claims for durable medical equipment (DME) and compounded prescription drugs triggered investigations into telemedicine fraud targeting federal insurers, including TRICARE, CHAMPVA, and Medicare. This prompted federal investigators to speak with medical providers linked to related DME claims and prescriptions.
In March 2019, Special Agents from DCIS and VA-OIG interviewed Dr. De Blanche about her work for telemedicine companies in 2015 and 2016, while she was practicing in Little Rock. During the interview she acknowledged working for the companies at issue but willfully misled agents about her telemedicine consultations. Dr. De Blanche reported she always evaluated patients by telephone before determining whether or not compounded prescription drugs or DME were needed. As Dr. De Blanche would later admit, however, on repeated occasions she ordered the products without first consulting patients.
U.S. Attorney Hiland stated “health care is a trillion-dollar industry. My office is committed to purging it of fraud. Serious consequences await those who hinder that task by misleading our partners in federal law enforcement.”
“The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America’s Warfighters,” said DCIS SAC Mentavlos. “Fraudulent telemedicine schemes not only expose beneficiaries to potential harm, but also waste valuable taxpayer dollars.”
“CHAMPVA is a Department of Veterans Affairs health care benefit program for dependents of living veterans rated 100% disabled, for dependents of veterans whose death was service connected, and for dependents of veterans who were rated as 100% disabled when they died,” said VA-OIG ASAC Roche. “This guilty plea sends a clear message that there will be severe consequences for anyone who obstructs an investigation involving this important program.”
“When doctors knowingly mislead investigators who are working to uncover fraudulent activity, they violate the trust placed in them by patients, taxpayers, and the government,” said HHS-OIG SAC Bennett. “Along with our law enforcement partners, we will continue to protect the integrity of federal healthcare programs.”
“Each year, billions of dollars are lost and hundreds of lives are endangered in health care fraud schemes,” said FBI SAC Upchurch. “Dr. De Blanche willfully misled federal agents tasked with investigating one such scheme. Today’s guilty plea is the result of great work by our agents and partners at the DCIS, VA-OIG, and HHS-OIG.”
Obstructing federal health care investigations is punishable by up to five years’ imprisonment. Under the terms of her plea agreement, Dr. De Blanche agreed to forfeit over $33,000.00 in telemedicine proceeds and pay a $180,000.00 fine. She will be sentenced at a later date.
This case was investigated by DCIS, VA-OIG, HHS-OIG, and the FBI. Assistant United States Attorneys Alexander D. Morgan and Stephanie G. Mazzanti prosecuted the case for the United States.
Council Bluffs Man Sentenced to 10 Years in Prison for Gun OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - On September 24, 2020, United States District Court Senior Judge James E. Gritzner sentenced Kenneth Jay Still, age 71, of Council Bluffs, to 10 years in prison, the statutory maximum, for felon and domestic abuser in possession of a firearm, announced United States Attorney Marc Krickbaum. Still was ordered to serve three years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. There is no parole in the federal system.
On October 7, 2018, Still shot and killed his 21-year-old step-son at close range with a 12- gauge shotgun. Still immediately fled the scene and disposed of the shotgun. He turned himself in to authorities the next day. Law enforcement was able to recover the shotgun several weeks later. Still pleaded guilty on June 16, 2020, in federal court to the gun charge.
This case was investigated by the Council Bluffs Police Department, Pottawattamie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced for Unlawful Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A North Brookfield man was sentenced today in federal court in Worcester for unlawfully possessing firearms and ammunition.
Seth Decoteau, 36, was sentenced by U.S. District Court Judge Timothy S. Hillman to 16 months in prison, three years of supervised release and ordered to pay restitution. In September 2019, Decoteau pleaded guilty to one count of possession of a firearm by a convicted felon and one count of possession of an unregistered firearm.
On June 8, 2018, police initially responded to a 911 call as a result of Decoteau making threats with a gun. Officers subsequently executed a search warrant at Decoteau’s North Brookfield residence and discovered a stockpile of weapons of nine guns, including two assault rifles, a ballistic vest, silencer, nine high-capacity magazines and more than 1,200 rounds of ammunition in his bedroom. Decoteau is prohibited from possessing three of the firearms found and the ammunition because of a prior felony conviction. Decoteau is also prohibited from possessing the short-barreled assault rifle and silencer because he did not follow national registration requirements.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and North Brookfield Police Chief of Police Mark Smith made the announcement. Assistant U.S. Attorneys Elysa Q. Wan of Lelling’s Criminal Division prosecuted the case.
Convicted Felon Sentenced to More Than Three Years in Federal Prison for Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today sentenced Duvale Lamar Van Dyke (31, Ocala) to 37 months in federal prison for possession of a firearm and ammunition affecting commerce by a convicted felon. Van Dyke entered a guilty plea to the offense on June 17, 2020.
According to the plea agreement, on January 1, 2020, City of Ocala police officers stopped Van Dyke in his automobile because of an active warrant for his arrest. A search of Van Dyke’s automobile revealed a loaded firearm, a jar of marijuana, and body armor intended to protect against armor-piercing rifle rounds. Officers also located a .223 caliber rifle round in Van Dyke’s pants pocket. Van Dyke admitted that all of these items belonged to him. As a previously convicted felon, Van Dyke is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Chula Vista Couple Charged with Defrauding Pregnant Women and a California Medi-Cal ProgramRead the Press Release
NEWS RELEASE SUMMARY – September 24, 2020
SAN DIEGO – Melissa Alvarez Torres and Jose Luis Olmos Hernandez, a Chula Vista couple who operated what they claimed to be a private insurance sales company, made their initial appearances today in federal court on charges that they conspired to defraud hundreds of pregnant women and caused an estimated $1.6 million in losses to Medi-Cal, a government health care program.
According to a complaint unsealed this afternoon, from 2016 through the present Alvarez and Olmos conspired to defraud the Medi-Cal Access Program ("MCAP"), a health care program administered by the California Department of Health Care Services and funded by state and federal government funds. MCAP is a program designed to assist working, middle-income California families without adequate health insurance by covering maternity services and post-natal care for a low cost based on their income.
It is alleged in the complaint that Alvarez and Olmos marketed private "insurance" to pregnant Mexican nationals holding work or tourist visas. Through Facebook advertising under the name Seguros Americanos Embarazo ("American Pregnancy Insurance"), Alvarez and Olmos falsely claimed that their "insurance" product would permit these pregnant women to give birth legally in the United States, without jeopardizing their visas by using government services. They charged the pregnant women thousands of dollars apiece for the purported "insurance."
In reality, however, Alvarez and Olmos did not have private insurance to sell. Instead, they used the women’s personal identifying information to sign them up for MCAP benefits. As charged in the complaint, Alvarez and Olmos submitted hundreds of false applications and fraudulent supporting tax and employment documents to MCAP, pretending that the women were eligible for benefits when in fact they did not qualify—and did not consent to be signed up for the program. As a result, it is alleged that Alvarez and Olmos cost American taxpayers millions of dollars in health care costs on top of the hundreds of thousands in fees they collected from the women they defrauded.
Alvarez and Olmos were arrested on Wednesday morning as a result of a multiagency investigation initiated by the California Department of Health Care Services, pursuant to the Travel and Residency Enforcement Co-Op with the Social Security Administration and the United States Attorney’s Office for the Southern District of California, along with the Federal Bureau of Investigation.
"We will not tolerate criminals who try to profit and take advantage of important public health programs and vulnerable pregnant women," said U.S. Attorney Brewer. "We will continue to protect the American taxpayer and ensure the integrity of programs intended to help the needy by investigating and prosecuting those who would try to exploit them."
"We appreciate the crucial support our partners provided in this investigation to apprehend people preying on some of society’s most vulnerable members, and their assistance in protecting the integrity of the Medi-Cal program," said DHCS Director Will Lightbourne.
"Each and every day, FBI agents are working diligently to uncover fraud against the government," said FBI Special Agent in Charge Suzanne Turner. "In this case, investigators uncovered an alleged $1.6 million dollar loss from the California Medi-Cal Program as well as fraudulently obtained money from hundreds of pregnant women who thought they were purchasing legitimate insurance coverage for their health care needs. The viability of government healthcare programs depends on honest use of the programs for those in need. Therefore, the FBI remains steadfast in the important work of uncovering healthcare fraud in partnership with California’s Department of Health Care Services and other law enforcement agencies."
If you think you are a victim of Alvarez and Olmos, or purchased health insurance through Seguros Americanos Embarazo, please contact the California Department of Health Care Services at 1-800-822-6222.
DEFENDANTS Case No. 20-mj-4076
MELISSA ALVAREZ TORRES Age 33 Chula Vista, CA
aka "Melissa Torres"
aka "Melissa A. Torres"
JOSE LUIS OLMOS HERNANDEZ Age 36 Chula Vista, CA
aka "Jose Luis Hernandez"
aka "Jose L. Hernandez"
aka "Jose Carlos"
aka "Carlos Garcia"
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 20 years in custody and a $250,000 fine, or twice the pecuniary gain or twice the pecuniary loss, whichever is greater. Restitution is mandatory.
AGENCIES
State of California’s Department of Health Care Services
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Charlotte Man Is Charged with Insider TradingRead the Press Release
CHARLOTTE, N.C. – A criminal indictment in U.S. District Court charges Eric M. Hill, 44, of Charlotte, with insider trading, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The indictment was returned by a grand jury last week and was unsealed this morning, following Hill’s initial court appearance.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
The indictment alleges that between October 13, 2015, and October 26, 2015, Hill committed insider trading based on nonpublic information pertaining to a proposed acquisition of Piedmont Natural Gas Company, Inc. (Piedmont) by Duke Energy Corporation (Duke Energy). Stealing material, nonpublic inside information allows a trader to cheat and earn substantial profits by trading before such news becomes public, earning profits by trading again once the news becomes public and impacts the price of a stock.
According to allegations in the indictment, Hill misappropriated the nonpublic information from an employee of a consulting firm that provided services to Piedmont. The indictment alleges that Hill used the confidential information to conduct a series of securities transactions prior to and after the announcement of the acquisition of Piedmont by Duke Energy. The indictment further alleges that Hill took in over $380,000 as a result of his illegal insider trading activities.
Hill is charged with fraud in connection with the purchase and sale of securities, which carries a maximum prison term of 20 years and a $5 million fine. He is also charged with seven counts of securities fraud, which carry a maximum prison term of 25 years, and a fine of $250,000, per count.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In announcing the indictment, U.S. Attorney Murray commended the FBI for their investigation of this case. In a related matter, the Securities and Exchange Commission announced a separate civil action against Hill filed with the U.S. District Court in the Western District of North Carolina.
The prosecution for the government is handled by Assistant United States Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte.
California Man Sentenced for Trafficking Methamphetamine in Central IllinoisRead the Press Release
ROCK ISLAND, Ill. – Chief U.S. District Judge Sara Darrow has sentenced Gustavo R. Sandoval, of California, to 17 ½ years in prison for trafficking kilogram quantities of methamphetamine and marijuana to Knox County and the Quad-Cities area in 2018. Sandoval, 32, of Fillmore, Calif., was sentenced on Sept. 22, 2020. He has remained in law enforcement custody since his arrest on related state charges in October 2018.
In July 2019, Sandoval pleaded guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Sandoval’s co-defendant, Ryan D. Mehaffy, 32, of Maquon, Ill., was also sentenced on Sept. 22, to six years in prison.
According to court documents, the government presented evidence that Sandoval organized and led Mehaffy in a drug conspiracy involving shipments of kilograms of actual methamphetamine and marijuana from California to Central Illinois. Sandoval also traveled to Central Illinois on several occasions to threaten co-conspirators, collect debts, take drug orders, and to deliver drugs.
The Quad City Metropolitan Enforcement Group and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Alyssa A. Raya and Donald B. Allegro represented the government in the prosecution.
Boston Man Charged with Fentanyl Trafficking and Cocaine ConspiracyRead the Press Release
BOSTON – A Boston man was indicted yesterday by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl and cocaine.
Jovani Santiago, 29, was indicted on one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl, and one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Santiago was previously charged by complaint and arrested on Aug. 27, 2020. He has been in federal custody since his arrest.
According to charging documents, Santiago sold approximately 500 grams of fentanyl to a cooperating witness in a Roxbury apartment on Aug. 12, 2020. Additionally, it is alleged that Santiago conspired with others to distribute cocaine in Massachusetts and New York.
The charges of distribution of and possession with intent to distribute 400 grams or more of fentanyl and conspiracy to distribute with intent to distribute five kilograms or more of cocaine carry a mandatory minimum sentence of 10 years and up to life in prison, at least four years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, New York Field Division and the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belchertown Man Pleads Guilty to Federal Firearm OffensesRead the Press Release
BOSTON – A former federal firearm licensee pleaded guilty yesterday in federal court in Springfield to firearms charges.
Max T. Gaj, 29, of Belchertown, pleaded guilty to receipt and possession of unregistered firearms, receipt and possession of National Firearm Act (NFA) firearms not identified by serial number, making a firearm in violation of the NFA, selling firearms in violation of state and local laws, and making false entries in, failing to make appropriate entries in, and failing to properly maintain records as required. U.S. District Court Judge Mark D. Mastroianni scheduled sentencing for Jan. 21, 2021.
Gaj, who was a federal firearms licensee and part owner of Dark Horse Gunsmithing in South Hadley, received and possessed three firearms: a machinegun, a machinegun bearing no serial number and a shotgun. The firearms were not registered to him in the National Firearms Registration and Transfer Record, as required by the NFA. Gaj also made a machinegun in violation of the NFA.
In addition, Gaj sold two firearms, a Glock Model 17 pistol and a Glock Model 43 pistol in violation of state law. Gaj also made false entries, failed to make appropriate entries and failed to properly maintained records as required of a federal firearms licensee.
The charges of receipt and possession of unregistered firearms, receipt and possession of NFA firearms not identified by serial number, and making a firearm in violation of the NFA provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of selling firearms in violation of state and local laws provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false entries in, failing to make appropriate entries in, and failing to properly maintain records as required provides for a sentence of up to one year in prison, one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney Catherine G. Curley of Lelling’s Springfield Branch Office is prosecuting the case.
Appleton Man Indicted for Distributing Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on September 15, 2020, a federal grand jury returned a two-count indictment against Casey Welk (age: 23) of Appleton, Wisconsin.
According to the indictment, in December of 2019, Welk knowingly distributed pornographic images of prepubescent children. Welk is charged with two counts of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A). Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison. Welk was arraigned on September 24, 2020 before the federal district court in Green Bay, Wisconsin.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
This case was investigated by the Outagamie County Sheriff’s Office and will be prosecuted by Assistant United States Attorney Alexander E. Duros.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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.
# # #
For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
Follow us on Twitter
Akron Man Sentenced to Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio man has been sentenced for a gun crime, according to United States Attorney Mike Stuart. Devon Alexander, 30, was sentenced to 84 months in federal prison, to be followed by three years of supervised release. Alexander was convicted by a federal jury in December 2019 of being a felon in possession of a firearm.
“Akron- again. As I’ve said before, federal gun laws are straight-forward – persons convicted of felonies, whether they be federal or state offenses, are prohibited from possessing firearms,” said United States Attorney Mike Stuart. “I applaud the work of our law enforcement partners for getting another violent felon off the streets of Charleston.”
Alexander was previously indicted on a single count of being a felon in possession of a firearm due to previous convictions for tampering with evidence and having weapons under disability in Summit County, Ohio. At trial, evidence revealed that during a search of a house in Charleston in August of 2018, police witnessed Alexander toss a Citadel 1911 semi-automatic handgun into the yard while attempting to flee.
The investigation was the result of a joint effort by the Metro Drug Enforcement Network Team (MDENT), the Drug Enforcement Administration (DEA), the Kanawha County Sheriff’s Office, and the West Virginia Department of Corrections and Rehabilitation.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Monica Coleman and former Assistant United States Attorney Stefan Hasselblad handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00258.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Addiction Recovery Physician Pays $530,000 to Resolve False Claims Act Allegations of Billing for Psychotherapy Rendered by Unlicensed or Unsupervised Providers and Other Improper BillingsRead the Press Release
KNOXVILLE, Tenn. – Addiction Recovery physician Dr. Chambless Johnston and his practice, East Tennessee Recovery, have paid $530,000 to resolve several allegations that they violated the False Claims Act. The allegations include billing for individual and group psychotherapy provided by unlicensed or unsupervised providers; upcoding Evaluation and Management office visits; and providing case management services not covered in the practice’s contract or improperly rendered in a group setting. The allegations challenged billings submitted to Medicare, and to Medicaid Programs -- TennCare and Virginia Medicaid, from 2017 through 2019.
Medicare, TennCare, and Virginia Medicaid only reimburse for services rendered and billed in compliance with their respective program requirements. The programs require that providers be properly licensed and, in some circumstances, supervised to conduct group and individual psychotherapy for patients. They reimburse for Evaluation and Management office visits when the services provided are coded at a level commensurate with the complexity of the visit and the severity of the patient’s presenting problems. TennCare only reimburses for case management services allowed under applicable contracts with managed care organizations and when provided in an individual, not a group, setting. The United States, the State of Tennessee, and the Commonwealth of Virginia alleged that Dr. Johnston and East Tennessee Recovery failed to comply with these requirements.
Under the False Claims Act, any person who presents false claims for payment to the United States is liable for three times the damages the government incurs as a result of the false claims and penalties ranging from $11,665 to $23,331 per violation.
“Many people in our district and throughout the country suffer from opioid addiction. Medicare covers important addiction recovery services,” said U.S. Attorney J. Douglas Overbey. “This settlement helps ensure that mandatory requirements for coverage and payment by government health care programs are appropriately followed.”
“With the need for addiction treatment services so great, our government health programs cannot afford to have these desperately needed funds used improperly,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our state and federal partners, we will relentlessly pursue those who misuse funds intended for these vital programs.”
“Defrauding our healthcare systems like Medicaid and Medicare waste millions of taxpayer dollars and individuals who do so must be held accountable,” said Virginia Attorney General Mark Herring. “I want to thank our local, state, and federal partners for their help in this case and I want to thank my Medicaid Fraud Control Unit for all of their hard work.”
This investigation was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee; the Tennessee Attorney General’s Office; the Virginia Attorney General’s Office; the U.S. Department of Health and Human Services, Office of Inspector General; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Division. It was prompted by a lawsuit filed by a former nurse practitioner at the practice, under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case is $95,400.
The case is captioned United States, the State of Tennessee and the Commonwealth of Virginia ex rel. Jennifer Stuart Miller v. East Tennessee Recovery, PLLC, Chambless Rand Johnston, and Emmalea Johnston, Case No. 2:18cv171 (E.D. Tenn.).
L. Margaret Harker and Robert C. McConkey, Assistant United States Attorneys, represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
###110 Gang Member Sentenced to 32 Years in PrisonRead the Press Release
SYRACUSE, NEW YORK - Anthony Hopper, age 33, of Syracuse, was sentenced today to serve 385 months (32 years and one month) in federal prison for violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Syracuse Police Chief Kenton Buckner. Senior United States District Judge Frederick J. Scullin, Jr., also ordered Hopper to serve a five (5) year term of supervised release following his term of incarceration.
Hopper was convicted in October 2019, following an eight-day trial. The RICO conviction included a finding by the trial jury that that Hopper was guilty of a murder. In imposing sentence today, the Court also found, by a preponderance of the evidence, that Hopper was responsible for a second murder. The other 13 men charged in the same indictment with Hopper have all pled guilty. Six have been sentenced to date.
During the trial, jurors heard testimony from members of the 110 Gang and others about the gang’s robberies, drug trafficking, and illegal possession of firearms. They also heard from witnesses who described how the 110 Gang retaliated against other Syracuse gangs for shootings and murders.
“Anthony Hopper led the 110 Gang through murders, shootings, robberies, assaults, intimidation, and drug dealing,” said Acting U.S. Attorney Antoinette T. Bacon. “Thanks to hundreds of hours of work by state, federal, and local law enforcement officers, Hopper has now been held accountable for his brutal actions and removed from the streets of Syracuse. Our resolve to make our community safe will never waver, and we will not rest until we finish our work”
"Anthony Hopper was a dangerously evil leader of the violent 110 Gang that wreaked havoc on Syracuse communities, causing residents to live in fear for far too long," said Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Field Office. "Today's sentence is indicative of the success that can be attained when federal, state, and local law enforcement agencies combine resources to remove violent organizations that threaten the safety and stability of our neighborhoods."
Syracuse Police Chief Kenton Buckner said, "The city of Syracuse and the Syracuse Police Department are appreciative of our relationship with the FBI. The sentencing in this case highlights the tireless efforts of law enforcement and federal prosecutors to apprehend individuals responsible for gang activity in our community. We will continue to do everything within our power to protect the citizens living in our city."
Previously sentenced 110 Gang RICO defendants:
- Damani Prince was sentenced to 78 months in prison; 3-year term of supervised release
- Rashawn Wynn was sentenced to 92 months in prison; 3-year term of supervised release
- Davon Sullivan was sentenced to 68 months in prison; 3-year term of supervised release
- Qualik Vaughn was sentenced to 68 months in prison; 3-year term of supervised release
- Jason Lebron was sentenced to 92 months in prison; 3-year term of supervised release
- Javon Peterson was sentenced to 98 months in prison, 3-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski
This case was brought as part of Project Safe Neighborhoods (PSN), 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.