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24 September 2020
Man who Swindled Schoolteacher out of Entire Retirement Savings Sentenced to PrisonRead the Press Release
Miami, Fl. – U.S. District Judge Raag Singhal has sentenced 61-year-old Michael Jerome Atkins, a former Florida resident, to five years in federal prison for defrauding a now 68-year-old former schoolteacher out of $425,447.14 -- all of her retirement money. The judge also ordered Atkins to pay that amount back to his victim, as restitution.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
According to court records, Atkins and his victim met while the victim was working as a schoolteacher. Atkins convinced her to retire, drain from her retirement account all of the money she had saved during years of work, and invest that money into Atkins’ Fort Lauderdale-based company -- All Points Aviation and Associates. Atkins promised the victim that he would use the money for his business and that he would repay her within two months. The victim agreed. In 2015, she directed her retirement account management company to disburse the money, which it did in three checks. Each check was made to the joint order of the victim and All Points Aviation and Associates. Without the victim’s authorization, Atkins had the largest check endorsed with the victim’s signature. All three checks were deposited into a bank account that he controlled. Atkins used the victim’s retirement money to pay for his own personal expenses and never repaid her. The retired schoolteacher had not heard from Atkins since 2016, when he left South Florida.
In March 2019, Atkins pled guilty to fraud and identity theft charges, admitting that he devised a scheme to defraud the victim of her entire retirement savings, over $400,000.
FBI Miami investigated the case. Assistant United States Attorney Lois Foster-Steers prosecuted it.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 18-cr-60207.
Man from Red Valley, Arizona pleads guilty to involuntary manslaughter in DWI collisionRead the Press Release
ALBUQUERQUE, N.M. – Maroquez Clah, 28, of Red Valley, Arizona, and an enrolled member of the Navajo Nation, pleaded guilty September 21 to an indictment charging him with involuntary manslaughter.
Clah was arrested on Feb. 14 on an indictment charging him with involuntary manslaughter. During his plea hearing, Clah pleaded guilty to an indictment charging that he killed a victim, referenced in the indictment as John Doe, by driving carelessly, in willful disregard for the safety of others and likely to endanger a person or property, and under the influence of alcohol. He faces up to eight years in federal prison, followed by a term of supervised release to be determined by the court.
Clah remains on release pending sentencing. The court has not yet set a date for the sentencing hearing.
The FBI and the Navajo Division of Public Safety investigated this case. Assistant United States Attorney Novaline D. Wilson is prosecuting the case.
Man Pleads Guilty to Armed Carjacking at Local Car WashRead the Press Release
Memphis, TN – Carlos Jones, 21, has pled guilty to armed carjacking and brandishing a firearm during a crime of violence. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
According to information presented in court, on July 13, 2018, at approximately 9 p.m., the victim was washing his 2013 Volkswagen Passat at a local carwash on Holmes Road when approached by two suspects, both of whom pointed firearms and demanded his vehicle. The victim said one of the suspects pointed a gun at him from behind and said, "Get the hell away from the car and go."
Surveillance video showed the suspects entered the carwash in a white vehicle, exited the vehicle and approached the victim. Footage captured the victim's vehicle leaving the carwash, followed by the suspect's vehicle. The victim's vehicle was tracked by GPS and later recovered from an apartment complex in Southaven, Mississippi.
Fingerprints belonging to co-defendant Angelo Bunting, 22, were recovered from the interior of the vehicle. The victim positively identified both co-defendants as the suspects responsible for the carjacking.
On September 23, 2020, Jones entered a guilty plea to the charges of carjacking and brandishing a firearm during a crime of violence.
Jones’ sentencing is scheduled for January 7, 2021, before U.S. District Court Judge Mark S. Norris, where Jones faces up to 15 years on the carjacking charge, and a mandatory minimum consecutive sentence of 7 years for brandishing a firearm. Charges against Bunting are still pending. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Armed carjacking is a cowardly act involving short sighted gain with long term consequences for both victims and offenders. When violent criminals act impulsively, we will respond deliberately with the full weight and force of federal sanctions to suppress, punish, and incapacitate."
The Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Special Assistant U.S. Attorney Samuel D. Winnig and Assistant U.S. Attorney Elizabeth Rogers are prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for prosecuting violent crimes and firearms offenses in federal court.
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Macy Man Sentenced for Interstate Domestic ViolenceRead the Press Release
United States Attorney Joe Kelly announced that Saville Thomas, age 18, was sentenced today by United States District Judge Brian C. Buescher to 60 months’ imprisonment for traveling to the Omaha Nation Indian Reservation and committing an act of domestic violence. Thomas will also serve three years of supervised release after he is released from prison. There is no parole in the federal system.
In February 2020, Thomas, of Macy, Nebraska, traveled and entered the Omaha Nation Indian Reservation and attempted to seize, abduct, or carry away, a minor female with whom Thomas had been in an intimate and dating relationship. Thomas entered a home through a window where the minor was sleeping, assaulted an occupant of the home, and then grabbed the minor by the hair, dragging her out of a window. Thomas was stopped from taking the minor when other occupants in the house heard the commotion and came to the victim’s aid.
This case was investigated by the Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
MS-13 member who stabbed a victim to death, attacked another murder victim with machete, participated in shooting homicide of third victim pleads guiltyRead the Press Release
COLUMBUS, Ohio – A local man pleaded guilty in federal court in Columbus last evening to participating in a racketeering conspiracy in Columbus on behalf of the transnational criminal organization MS-13.
In his plea, Pedro Alfonso Osorio-Flores, 41, of Columbus, accepts responsibility for his role in the mid-2015 murder of Carlos Serrano-Ramos, the November 2015 murder of 17-year-old high school student Wilson Villeda, and the December 2016 murder of Salvador Martinez-Diaz.
Parties involved in Osorio-Flores’ case have recommended a sentence of 40 to 45 years in prison.
The defendant, also known as “Smokey,” is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment. He is the nineteenth defendant to plead guilty.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
According to court documents, in summer 2015, Osorio-Flores and other conspirators beat and stabbed Serrano-Ramos to death before placing his body in a shallow grave in the woods in Innis Park.
In the murder of Wilson Villeda, Osorio-Flores and others attacked and killed the victim with a machete and buried his body in a shallow grave near Serrano-Ramos’s remains in Innis Park.
In December 2016, Osorio-Flores surveilled murder victim Martinez-Diaz at the Resolute Athletic Complex before following him home. He provided location updates to fellow MS-13 members so that they could shoot and kill the victim upon his arrival home.
Osorio-Flores pleaded guilty to one count of conspiracy to commit racketeering.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the guilty plea entered before U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Lowell Man Pleads Guilty to Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston to fentanyl conspiracy.
Jonathan Bermudez, 23, of Lowell, pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 13, 2021.
During the course of several months, using an undercover police officer, a federal investigation uncovered Bermudez’s fentanyl distribution operation. Although Bermudez was arrested on April 2, 2019, he connected the undercover police officer with his co-defendant so they could continue the fentanyl distribution operation.
The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl carries 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. During the course of this investigation, valuable assistance was provided by Homeland Security Investigations in Boston, the Massachusetts State Police, and the Andover, North Andover, Billerica, Chelmsford, Lowell and Lawrence Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Louisiana Man Sentenced to 3 Years in Prison for Conspiracy to Commit Health Care FraudRead the Press Release
Jackson, Miss. – Joseph L. Wiley, II, 51, of West Monroe, Louisiana, was sentenced today by U.S. District Judge Keith Starrett to 36 months in prison, followed by 3 years of supervised release, for conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation’s New Orleans Field Office, Special Agent in Charge Cynthia Bruce of the Defense Criminal Investigative Service’s Southeast Field Office, and Director Steven Maxwell with the Mississippi Bureau of Narcotics.
Wiley was also ordered to pay a $500,000 fine and forfeit $300,000 to the government.
In April 2019, Wiley pled guilty to helping Mississippi pharmacies submit millions worth of fraudulent claims to government health care programs through the use of his business, Affordable Medication Solutions, LLC (AMS). Wiley used AMS to create a program that allowed compound pharmacies to provide healthcare benefit programs documents showing co-payments had been paid on prescription medications when in fact, AMS did not make payments to the pharmacies for the co-payments. When a few of the compound pharmacies were audited, Wiley assisted those pharmacies by providing fictitious documents, including explanations of benefits and fake checks. Through AMS, Wiley facilitated the concealment of at least $56 million in fraudulent billings to health care benefit programs.
This case was investigated by FBI’s Jackson Field Office, Internal Revenue Service Criminal Investigation, Defense Criminal Investigation Service, and the Mississippi Bureau of Narcotics. It was prosecuted by Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter and Katherine Payerle of the DOJ Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi.
Louisiana Man Admits Illegally Accessing Thousands of Laboratory ReportsRead the Press Release
NEWARK, N.J. – A Louisiana man today admitted that he illegally accessed a healthcare company’s online portal and downloaded more than 60,000 laboratory reports belonging to more than 30,000 patients, U.S. Attorney Craig Carpenito announced.
David Manno, 35, of Marrero, Louisiana, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with exceeding authorized access to a protected computer.
According to documents filed in the case and statements made in court:
The victim was a publicly traded healthcare company with its headquarters in New Jersey. The company offered a web-based portal through which patients could access their medical and health information, schedule laboratory testing, track their healthcare provider information, maintain medical records, and pay for services. Patients were able to log in to the portal by using a unique username and password. In November 2016, Manno accessed the portal and sent requests that caused the portal to send him lab reports belonging to other patients. Manno sent more than 150,000 modified requests, causing the portal to send him more than 60,000 laboratory reports for more than 30,000 patients.
The charge of exceeding access to a protected computer is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. Sentencing is scheduled for Feb. 3, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Local Pharmacist Sentenced to Prison for Unlawful Distribution of OxycodoneRead the Press Release
Tampa, Florida – United States District Judge Thomas Barber has sentenced Hong Truong (54, Dunedin) to 30 months in federal prison for the unlawful distribution of oxycodone outside the scope of professional practice. Truong was also ordered to pay a $500,000 criminal fine and a forfeiture money judgment in the amount of $766,819, representing the proceeds of her illegal drug distribution.
Truong had pleaded guilty on April 24, 2020.
According to the court documents, Truong was a licensed pharmacist who owned and operated HP Pharmacy in Pinellas Park. Under federal regulations, pharmacists registered with the Drug Enforcement Administration, such as Truong, are responsible for the proper prescribing and dispensing of controlled substance prescriptions. At HP Pharmacy, Truong filled Schedule II controlled substance prescriptions for oxycodone and hydromorphone that were outside the usual course of professional practice and not issued for a legitimate medical purpose. In connection with these prescriptions, Truong ignored and failed to resolve red flags in violation of her responsibility as a pharmacist. For example, in return for filling prescriptions for 30 mg of oxycodone and 8 mg of hydromorphone, Truong charged and only accepted cash in a higher-than-market per-pill price, usually $5 - $6 per pill. Truong ordered a much higher volume of opiates for HP Pharmacy inventory than the average orders for other pharmacies in Florida and across the United States.
Truong also filled prescriptions for “opiate naïve” patients (those who have never previously been prescribed opiates) without consulting with the prescribing physician or the patient as to the need and diagnosis for the prescription. Many of Truong’s opiate patients were young and healthy-looking and traveled far distances to Truong’s small pharmacy, usually after visiting a prescribing physician located in Tampa. Truong and the pharmacy tech she employed, Jessica Evans, falsely noted on the back of many prescriptions that the prescription had been verified with the prescriber’s office when such was not the case. For her role in the conspiracy, Evans was sentenced to 25 months in federal prison on August 27, 2020.
This case was investigated by the Drug Enforcement Administration and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. The case was prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
Letter to Luzerne County Bureau of ElectionsRead the Press Release
Shelby Watchilla, Director of Elections of Luzerne County Bureau of Elections
Dear Ms. Watchilla:
On Monday, September 21, 2020, at the request of Luzerne County District Attorney Stefanie Salavantis, the Office of the United States Attorney along with the Federal Bureau of Investigation, Scranton Resident Agency, began an inquiry into reports of potential issues with a small number of mail-in ballots at the Luzerne County Board of Elections.
Since Monday, FBI personnel have conducted numerous interviews and recovered and reviewed certain physical evidence. While at this point the inquiry remains active, based on the limited amount of time before the general election and the vital public importance of these issues, I will detail the investigators’ initial findings.
The FBI has recovered a number of documents relating to military ballots that had been improperly opened by your elections staff, and had the ballots removed and discarded, or removed and placed separately from the envelope containing confidential voter information and attestation. Specifically, a total of nine (9) military ballots were discovered to have been discarded. Seven (7) of those ballots when discovered by investigators were outside of any envelope. Those ballots were all cast for presidential candidate Donald Trump. One (1) of those seven (7) ballots was able to be identified to an envelope that was recovered, and thereby potentially tied to a specific voter. Two (2) military ballots that had been discarded were previously recovered by elections staff, reinserted into what appeared to be their appropriate envelopes, and then resealed. Therefore, the votes cast on those two (2) ballots are unknown. Thus, is appears that three (3) of the nine (9) recovered ballots can be potentially attributed to specific voters. Six (6) of the ballots were simply removed and discarded, and cannot be attributed to a specific voter at this time.
In addition to the military ballots and envelopes that were discarded and recovered as detailed above, investigators recovered four (4) apparently official, bar-coded, absentee ballot envelopes that were empty. Two (2) of those envelopes had the completed attestations and signatures on the reverse side. One (1) envelope with a handwritten return address was blank on the reverse side. The fourth empty envelope contains basic location information and the words “affirmation enclosed” on the reverse side. The majority of the recovered materials were found in an outside dumpster.
As you know, the appropriate method for processing received military ballots is to securely store the ballot, unopened, until such time as ballot pre-canvassing can begin, which is in no event earlier than 7:00 a.m. on Election Day. Opening a military or overseas ballot, or an absentee or mail-in ballot for that matter, violates the controlling statutes and is contrary to Pennsylvania Department of State guidance. The preliminary findings of this inquiry are troubling and the Luzerne County Bureau of Elections must comply with all applicable state and federal election laws and guidance to ensure that all votes—regardless of party—are counted to ensure an accurate election count. Even though your staff has made some attempts to reconstitute certain of the improperly opened ballots, there is no guarantee that any of these votes will be counted in the general election. In addition, our investigation has revealed that all or nearly all envelopes received in the elections office were opened as a matter of course. It was explained to investigators the envelopes used for official overseas, military, absentee and mail-in ballot requests are so similar, that the staff believed that adhering to the protocol of preserving envelopes unopened would cause them to miss such ballot requests. Our interviews further revealed that this issue was a problem in the primary election--therefore a known issue--and that the problem has not been corrected.
While the assigned investigators are continuing their work including reviewing additional discarded materials, it is imperative that the issues identified be corrected. District Attorney Salavantis and I would be happy to meet with you at a mutually convenient time to discuss this matter. Please be assured that the investigators will carefully preserve all documents collected in connection with this investigation. Our goal, that I am sure you share, is to ensure that every properly cast ballot is counted.
Sincerely,
DAVID J. FREED
UNITED STATES ATTORNEY
cc: David Pedri, Luzerne County Manager
Tim McGinley, Luzerne County Council Chair
Stefanie Salavantis, Luzerne County District Attorney
Leader of Nationwide Credit Card Fraud Affecting Thousands of Account Holders Sentenced to 110 Months in PrisonRead the Press Release
NEWARK, N.J. – The leader of a multi-million dollar conspiracy that used stolen credit card account information to make fraudulent retail purchases around the country was sentenced today to 110 months in prison, U.S. Attorney Craig Carpenito announced.
Hamilton Eromosele, 29, previously pleaded guilty before U.S. District Court Judge William J. Martini to an information charging him with one count of conspiracy to commit bank fraud. Judge Martini imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
From at least 2015 through 2018, Eromosele led a network of individuals, based in the New Jersey/New York area, who made short trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cars, and other goods and services. Eromosele obtained stolen credit card information through the “dark web” and other sources, which he then provided to conspirators. Eromosele often recruited women via social media, with promises of easy profits, to fly to various locations to make fraudulent purchases. He collected his conspirators’ fraudulently purchased gift cards or luxury goods, sold them for cash, and dispersed a percentage of the proceeds to the conspirators.
Conspirators made trips to numerous other states – including Colorado, Pennsylvania, Oklahoma, Montana, Indiana, Ohio, Arizona, and Georgia – and made over $3.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.
In addition to the prison term, Judge Martini sentenced Eromosele to three years of supervised release.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
Laurel Man Indicted by Federal Grand Jury in Maryland for Receipt, Transportation, Distribution, and Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment charging Barry Thomas Goldsborough, age 52, of Laurel, Maryland, with receipt, transportation, distribution, and possession of child pornography. The indictment was returned on September 21, 2020, and unsealed yesterday at Goldsborough’s initial appearance in the U.S. District Court in Greenbelt. At that hearing, U.S. Magistrate Judge Charles B. Day ordered that Goldsborough be detained pending trial
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to the four-count indictment, on dates ranging from January 27, 2018 through November 19, 2019, Goldsborough received, transported, distributed, and possessed images documenting the sexual abuse of children. As stated during yesterday’s detention hearing, Goldsborough has two prior sex offense convictions involving minor children. Specifically, on April 12, 2005, Goldsborough was convicted in the District Court for Baltimore County, Maryland for possession of child pornography. While Goldsborough was on probation for the Baltimore County conviction, Goldsborough was then charged with, and later was convicted of, attempted enticement of a minor to engage in illegal sexual activity and possession of child pornography in the United States District Court for the Middle District of Tennessee. At the time of the alleged conduct in the four-count indictment, Goldsborough was on federal supervision for this last offense.
Due to Goldsborough’s prior sex offense convictions, if convicted of receipt, transportation, or distribution of child pornography, Goldsborough faces a mandatory minimum of 15 years and a maximum of 40 years in federal prison; and if convicted for possession of child pornography, faces a mandatory minimum of 10 years and a maximum of 20 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, Maryland State Police Internet Crimes Against Children Task Force, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leah B. Grossi, who is prosecuting the federal case.
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Kern County Man Charged with Production, Distribution and Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Andrew James Sarnowski, 22, of Rosamond, charging him with separate counts of production of child pornography and distribution of child pornography, and two additional counts of receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Sarnowski produced multiple videos depicting the sexual abuse of a minor less than a year of age and shared them online through an encrypted social media application. Pursuant to a search of his residence, additional electronic devices belonging to Sarnowski were identified and found to contain hundreds of additional child pornography files, including those depicting pre-pubescent boys and girls being sexually abused.
This case is the product of an investigation by the Bakersfield, Lancaster, Ventura and Los Angeles Offices of the Federal Bureau of Investigation, as well as the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.
If convicted of the production of child pornography charge, Sarnowski faces a mandatory minimum sentence of 15 years in prison and maximum statutory penalty of 30 years in prison, and a $250,000 fine. If convicted of the distribution of child pornography charge or either of the two receipt of child pornography charges, Sarnowski faces a mandatory minimum sentence of five years and maximum statutory penalty of 20 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Justice Department Announces Results in Fight Against the Opioid Crisis Two Years after Launch of Operation S.O.S.Read the Press Release
In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas and identifying wholesale distribution networks and international and domestic suppliers.
Two years ago, under Operation SOS, the U.S. Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
Over these two years, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
The 10 participating districts and some of their successes are listed below:
- The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape.
- The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
- The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
- The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On Oct. 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
- The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
- The Northern District of West Virginia reported a July 21, 2020, forty-four count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
- The Southern District of West Virginia reported that after a three-day trial, a jury in the convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
Jury Convicts Violent 11-Time Felon of Gun and Drug ChargesRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man yesterday on all counts charged against him—two counts of being a felon in possession of a firearm, one count of possessing with intent to distribute cocaine, and one count of possessing firearms in furtherance of a drug-trafficking crime.
“Demetrius McGregor has a long record of violent gun crime in Hampton Roads,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Serial violent felons who continue to arm themselves are major drivers of the gun crime that plagues our communities, and we will continue to prioritize cases like this one. Additionally, I would like to commend all those involved in this jury trial given the unique challenges posed by COVID-19. Despite the many challenges posed by trying a case during a pandemic, the entire criminal justice system worked together to ensure this defendant had his day in court in front of a jury of his peers.”
According to court records and evidence presented at trial, on Oct. 6, 2017, Demetrius Antwon McGregor, 35, was arrested on a warrant in front of his apartment by members of the Norfolk Police Department Fugitive Unit and a Deputy U.S. Marshal. They recovered a loaded Sig Sauer handgun from his waistband. McGregor is an 11-time convicted violent felon, with prior convictions for both malicious and unlawful wounding, use of a firearm in commission of a felony, attempted robbery, and conspiracy to commit robbery as well as four convictions for maliciously shooting into an occupied vehicle.
“Firearms in the possession of a convicted felon are always a public safety concern, but especially so in the hands of a career criminal with nearly a dozen convictions for violent and lawless behavior,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “This conviction on all charges confirms that repeated, unlawful behavior will not be tolerated and we are grateful to U.S. Attorney Terwilliger and our law enforcement partners in Hampton Roads for this successful outcome.”
Investigators obtained a search warrant for McGregor’s apartment, where he was staying with his mother, and found in the bedroom closet 18 bags of cocaine, two assault rifles, one of which was loaded and had been reported stolen, four additional large-capacity magazines, dozens of rounds of .45 and 9mm caliber ammunition, and two digital scales. The investigators also recovered from under the bedroom mattress a Sig Saur .45 caliber magazine designed for the gun taken from his waistband, two additional digital scales sitting out in the open on top of a cabinet, and shoes that McGregor had previously photographed himself wearing and had posted on his Facebook page along with multiple photos of himself standing in front of his residence months before the arrest and search. The .45 caliber ammunition from the closet and in the magazine under the mattress matched the brand of the ammunition in the handgun recovered from McGregor.
“Law enforcement must continue to surgically remove those from the streets that plague our communities surrounding gun crime across Hampton Roads,” said Larry D. Boone, Chief of Norfolk Police. “Additionally, we must not only target violent individuals, but we must also target those sources that afford violent felons to arm themselves in the first place, otherwise the measurable outcomes will be minimum.”
McGregor faces a minimum of five years and a maximum of life in prison when sentenced on Feb. 4, 2020. 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.
Assistant U.S. Attorneys William B. Jackson and Joseph E. DePadilla 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. 2:19-cr-34.
Judge sentences St. Louis man to 15 years in prison for robbing Papa John’s and Subway at gunpointRead the Press Release
ST. LOUIS, MO –Braylon Roberts, 23, of St. Louis, MO, was sentenced to 15 years in prison for his role in robbing Subway and Papa John’s and brandishing a firearm in furtherance of a crime of robbery. Roberts appeared in federal court today before United States District Judge John R. Ross.
According to court documents, on August 16, 2018, Roberts and co-defendant Terrance Cole entered the Subway restaurant located on Lewis and Clark Boulevard in Jennings, Missouri. Roberts displayed a handgun. Cole, who was carrying a backpack, walked to the cash register and directed a Subway employee to give him the money in the cash drawer. Upon entering the Subway, Roberts displayed a firearm and knocked a patron to the ground, causing injury to that victim. Roberts then followed Cole to the counter and pointed his firearm directly at the employee. The employee complied with the demand to give Cole money. Cole placed the money in the backpack, after which time Roberts and Cole left the Subway.
On August 18, 2018, Roberts and Cole entered a Papa Johns restaurant located on N. Tucker Boulevard in the City of St. Louis, Missouri. Roberts displayed a handgun as he entered the Papa Johns and ordered all of the patrons to the floor, dragging one of the patrons along the floor. Cole, carrying a backpack, approached the Papa Johns employee at the cash register and demanded money from the employee. The employee gave Cole the money from the cash drawer and he placed the money in the back pack.
When Roberts and Cole left the Papa Johns following the robbery, they entered a gold Nissan Maxima and departed the scene. The St. Louis Metropolitan Police Department (“SLMPD”) Real Time Crime Center was able to review surveillance video of the area surrounding the Papa Johns and capture a photo of the vehicle, including the license plate. On Sunday, August 19, 2019, SLMPD officers spotted the vehicle and stopped it for further investigation. The driver of the vehicle was the sister of Braylon Roberts. A consent search of the vehicle revealed Braylon Roberts’s identification card in the vehicle. Roberts was one of the perpetrators in the surveillance video of the Papa John’s robbery.
Co-defendant Terrance Cole was sentenced in February to 68 months in prison.
The St. Louis Metropolitan Police Department investigated this case. Assistant U.S. Attorney Allison Behrens prosecuted this case.
Jefferson Davis County Man Sentenced to over 10 Years in Prison for Drug DistributionRead the Press Release
Hattiesburg, Miss – Melvin “Dogman” Fairman, 36, of Prentiss, was sentenced today by U.S. District Judge Keith Starrett to 121 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Judge Starrett also ordered Fairman to pay a $9,000 fine.
On July 11, 2019, Fairman sold almost a half kilogram of methamphetamine in Jefferson Davis County, Mississippi for $3,300. The methamphetamine was sent to the DEA laboratory in Miami, Florida where the results revealed the methamphetamine was 89% pure.
Fairman pled guilty to possession with intent to distribute methamphetamine before Judge Starrett on June 22, 2020.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Shundral H. Cole.
Jason Galanis Sentenced in Manhattan Federal Court for Multiple Securities Fraud SchemesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that JASON GALANIS was sentenced to 189 months in prison for his participation in multiple fraudulent schemes. In particular, GALANIS was sentenced for his role in a scheme to manipulate the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and defrauding the shareholders of that company (the “Gerova Scheme”), and for defrauding the clients of an investment advisory firm. GALANIS was also sentenced for his role in a scheme to defraud a Native American tribal entity and the investing public of tens of millions of dollars in connection with the issuance of bonds by the tribal entity (the “Tribal Bond Scheme”). GALANIS pled guilty on January 31, 2020, to a seven-count information charging GALANIS with participation in the Gerova and Tribal Bond Schemes. GALANIS was sentenced today by United States District Judge P. Kevin Castel. GALANIS had previously been sentenced, in February 2017, for his participation in the Gerova Scheme and, in August 2017, for his participation in the Tribal Bond Scheme, but those convictions were subsequently vacated.
Acting U.S. Attorney Audrey Strauss said: “Jason Galanis orchestrated two multimillion-dollar fraud schemes, and hid behind a team of co-conspirators to conceal his involvement and defy an SEC ban. He and his codefendants engaged in market manipulation and the defrauding of shareholders, and they stole a large portion of the proceeds of tribal bonds that were intended to fund economic development projects. Now Jason Galanis has been sentenced to a lengthy prison term that reflects the magnitude and pervasiveness of his crimes.”
According to the allegations contained in the Indictment[1] filed against JASON GALANIS and his co-conspirators and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, GALANIS, along with his co-conspirators John Galanis, Gary Hirst, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration to GALANIS and his co-conspirators, without adequate disclosure of GALANIS’s role in directing the transactions or the benefits received by GALANIS and his co-conspirators.
As a part of the scheme to defraud, GALANIS obtained sufficient control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. GALANIS obtained this control without causing himself to be identified as an officer or director of Gerova so as to purport to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, GALANIS, with the assistance of Hirst, caused over 5 million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for GALANIS’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for GALANIS. GALANIS, John Galanis, Jared Galanis, Derek Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise GALANIS’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, GALANIS’s co-conspirators, with his knowledge and approval, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public GALANIS’s ownership of and control over the Gerova stock.
GALANIS, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, GALANIS and others were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that GALANIS controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, GALANIS and his co-conspirators reaped nearly $20 million in profits.
The Scheme to Defraud Clients of Investment Firm-1
From 2007 to 2010, GALANIS along with an investment adviser identified in the Information as “CC-2,” participated in a scheme to defraud the clients of CC-2’s investment advisory firm, identified in the Information as “Investment Firm-1.” Oftentimes in exchange for compensation from GALANIS, CC-2 caused Investment Firm-1 clients to invest in notes issued by entities associated with GALANIS.
When obligations owed by entities associated with GALANIS became due, CC-2 used client funds to purchase either notes issued by other entities associated with GALANIS or publicly traded shares held by such entities. The funds generated were then used to pay the original obligations owed to other Investment Firm-1 clients. Through these securities trades, funds in client accounts of one set of Investment Firm-1 investors were used to pay obligations owed to a different set of Investment Firm-1 investors by entities associated with GALANIS.
The Tribal Bond Scheme
From March 2014 through April 2016, GALANIS, along with his co-conspirators Gary Hirst, John Galanis, a/k/a “Yanni,” Hugh Dunkerley, Michelle Morton, Devon Archer, and Bevan Cooney, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by GALANIS and his codefendants to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
Documents governing the Tribal Bonds specified that an investment manager would invest the proceeds of the Tribal Bonds in investments that would generate annuity payments sufficient to pay interest on the Tribal Bonds and provide funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, significant portions of the proceeds were misappropriated by GALANIS and his codefendants for their own personal use.
Specifically, the proceeds of the Tribal Bonds were deposited into a bank account in the name of Wealth Assurance Private Client Corporation (“WAPCC”), an entity controlled by Dunkerley and Hirst. Dunkerley transferred more than $38 million from the WAPCC account to an account controlled by GALANIS, who then misappropriated more than $8.5 million of the proceeds for his personal use, including for expenses associated with his home, jewelry and clothing purchases, travel and entertainment, and restaurant meals.
There was no ready secondary market for the Tribal Bonds. Nonetheless, without prior notice to their clients, Morton and Hirst, acting at the direction of GALANIS, used funds belonging to clients of two related investment advisers, Hughes Capital Management, Inc. (“Hughes”), and Atlantic Asset Management, LLC (“Atlantic”), to purchase the Tribal Bonds, even though GALANIS, Hirst, and Morton were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients and of the Atlantic pooled investment vehicle in which the Tribal Bonds were purchased. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds in their accounts, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, no Tribal Bonds have been sold from any Hughes or Atlantic client accounts. In addition, GALANIS and his codefendants failed to apprise clients of Hughes and Atlantic regarding substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
In addition, a portion of the misappropriated proceeds was recycled and provided by GALANIS to entities affiliated with Archer and Cooney in order to enable Archer and Cooney to purchase subsequent Tribal Bonds issued by the WLCC. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.
* * *
In addition to the prison term, JASON GALANIS, 50, was sentenced to three years of supervised release. GALANIS was also ordered to forfeit $80,869,117.10, as well as his interest in properties in New York and Los Angeles, and to make restitution in the amount of $80,817,513.43.
Ms. Strauss praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Negar Tekeei are in charge of the prosecution.
[1] As to the defendants whose charges are still pending, as the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Jackson County Man Sentenced to 5 Years in Prison for Dealing in Firearms Without a LicenseRead the Press Release
Gulfport, Miss. – Waso Nam Flanagan, 53, of Jackson County, was sentenced today by U.S. District Judge Sul Ozerden to 60 months in prison, followed by 3 years of supervised release, for dealing in firearms without a license, announced U.S. Attorney Mike Hurst, and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Flanagan was also ordered to pay $3100 fine and special assessment as well as $220 in restitution.
Flanagan pled guilty before Judge Ozerden on June 15, 2020.
On September 27, 2019, Jackson County Sheriff’s Office investigators arrested Flanagan on an outstanding felony warrant for possession of stolen firearms. Flanagan was on bond for an aggravated assault charge at the time. When investigators found and arrested Flanagan, they also found baggies of marijuana and methamphetamine.
The ATF adopted the case for federal prosecution and determined that Flanagan, who was a regular user of narcotics, had been selling firearms and drugs. Flanagan used multiple pawn shops in Jackson and Harrison counties to pawn or sell firearms he bought “off of the street,” and the ATF learned that two of the firearms he purchased on the street, and then sold, had been stolen.
ATF examined firearms pawned by Flanagan to local area pawn shops. When Flanagan pawned firearms, he did not go back to redeem the pawns and was effectively selling the firearms. ATF also obtained transaction documents and, determined that the firearms had traveled in interstate commerce, and were in good condition. The ATF also researched official records and confirmed that Flanagan had never had a license to deal in firearms.
U.S. Attorney Hurst praised the cooperation of the ATF and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Inland Empire Man Who Teaches at San Bernardino Middle School Arrested on Federal Child Pornography ChargesRead the Press Release
RIVERSIDE, California – A Fontana man is expected to make his initial court appearance late this afternoon after being charged today with federal child pornography offenses for allegedly uploading explicit images to the internet.
Josue Gamaliel Vidal Quintanilla, 28, who teaches mathematics at Shandin Hills Middle School in San Bernardino, was arrested Wednesday morning by authorities during the execution of a search warrant at his residence.
According to a federal criminal complaint filed today, Vidal was arrested after he admitted using various online platforms to send, receive and possess child pornography. Evidence obtained by agents with Homeland Security Investigations (HSI) and officers with the Fontana Police Department’s Internet Crimes Against Children Task Force indicates that Vidal used Kik Messenger and Snapchat for the past year to transmit child pornography.
Vidal also admitted he posed as a minor boy on the internet and solicited “many” minors – some as young as 10 years old – to engage in sexually explicit behavior in online meetings that took place as recently as Tuesday night, according to the affidavit in support of the complaint.
“A preliminary search of Vidal’s Toshiba laptop revealed approximately 20 image files depicting the sexual exploitation of children, as well as multiple video files with titles indicative of child pornography,” according to the affidavit by an HSI special agent. “Similarly, I conducted a preliminary review of online accounts that Vidal consented for me to search, and I found communications that Vidal engaged in where he sent and received child pornography images and videos as well as sent hyperlinks to downloadable child pornography videos.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The criminal complaint charges Vidal with one count of transportation of child pornography and one count of possession of child pornography. If convicted of these two charges, Vidal would face a statutory maximum sentence of 40 years in federal prison. Additionally, the transportation count carries a mandatory minimum penalty of five years in federal prison.
The ongoing investigation in this case is being conducted by HSI and the Fontana Police Department. The San Bernardino County Sheriff’s Department provided substantial assistance in this investigation.
This case is being prosecuted by Assistant United States Attorney Sonah Lee of the Riverside Branch Office.
Indianapolis Man, Woman Sentenced to 13 Years in Federal Prison for Armed Robbery of Galesburg, Ill., PharmacyRead the Press Release
ROCK ISLAND, Ill. – Chief U.S. District Judge Sara Darrow has sentenced Gates L. Sisk, 20, and Davia A. Barbee, 20, both of Indianapolis, to 13 years in prison for the Sept. 10, 2018, armed robbery of Walgreens Pharmacy in Galesburg, Ill. Both Sisk and Barbee were sentenced on Sept. 23, 2020. Both have remained in law enforcement custody since they were arrested hours after the robbery on Sept. 10, 2018.
Sisk and Barbee each pleaded guilty in February 2020, to all three counts as charged in the indictment, including obstructing commerce by robbery, brandishing a firearm in furtherance of a violent crime, and possession with intent to distribute narcotics.
According to court documents and testimony, Sisk and Barbee were accompanied by another individual when they entered the Walgreens at 844 Fremont St., Galesburg, Ill., at approximately 4:20 a.m., on Sept. 10, 2018. The defendants displayed and pointed apparent guns at the pharmacy employees as they bound the employees with zip ties. The defendants demanded narcotics and threatened to kill the employees if they did not cooperate. The defendants took large quantities of Adderall, hydrocodone, oxycodone, and methylphenidate, a generic form of Ritalin, to sell.
Police officers with the Galesburg Police Department arrested Sisk and Barbee shortly after the robbery as they fled on foot after crashing their getaway car. Police recovered a Bersa .40 caliber semiautomatic handgun used in the robbery from the car and more than 12,000 pills from the car as well as bottles that were thrown from the car as the defendants fled from police.
At sentencing, a DEA investigator testified that various individuals in the Indianapolis area had been carrying out armed pharmacy robberies since 2017 in various locations, including much of the Eastern and Midwestern U.S. Both Sisk and Barbee are from Indianapolis, as is the third suspect in the Galesburg robbery, identified in court as Prentice Davis. According to the agent’s testimony, Sisk has been linked to two other similar robberies in Alton, Ill., and Appleton, Wis. Barbee has been linked to a similar robbery in Kansas City, Mo. Davis is currently serving a 10-year-sentence in the Missouri Department of Corrections for a pharmacy robbery in Missouri.
The Galesburg Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Donald B. Allegro and Jennifer L. Mathew represented the government in the prosecution.
Illegal Possession of Drugs and Firearms Sends Three Men to Federal PrisonRead the Press Release
ALEXANDRIA/LAFAYETTE/SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that three convicted felons have been sentenced in United States District Court for illegal possession of firearms.
Breaux Bridge Man with Lengthy Criminal History Sentenced for Illegally Possessing Firearm
Nacorvrick Green a/k/a “G-Nate,” 41, of Breaux Bridge, Louisiana, was sentenced today by U.S. District Judge Dee D. Drell to 180 months (15 years) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Green previously pled guilty to the charge on December 2, 2019.
Lafayette Police Department officers conducted a traffic stop of a vehicle Green was driving on June 13, 2018. Officers found a loaded semi-automatic pistol in the vehicle and arrested Green, who is a convicted felon. Prior to his arrest, Green had seven felony convictions for drug trafficking. Under federal law, it is it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
The ATF, Lafayette Police Department and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Daniel J. Vermaelen and Jamilla A. Bynog prosecuted the case.
Shreveport Man Sentenced for Drug and Firearms Crimes
Jerrick Stephenson, 28, of Shreveport, Louisiana, was sentenced today by U.S. District Judge S. Maurice Hicks, Jr. to 78 months (6 years, 6 months) in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. Stephenson pled guilty to the charge on September 6, 2019.
Stephenson was stopped by Shreveport Police Department officers for a traffic infraction on July 28, 2018. Stephenson attempted to flee on foot from law enforcement officers but was apprehended a short distance away and arrested. Officers found a pistol and two loaded magazines under the driver’s seat of the vehicle he was operating. Also inside the vehicle were 130 grams of marijuana and a digital scale with marijuana residue. Stephenson was previously convicted of possession of controlled dangerous substances in 2014 and knew that he was prohibited from possessing a firearm or ammunition because of his prior felony conviction.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
Alexandria Man Sentenced on Federal Firearms Charges
Malcolm Xavier Williams, 29, of Alexandria, Louisiana, was sentenced today by U.S. District Judge Dee D. Drell to 15 months in prison, followed by 2 years of supervised release, for possession of a firearm by a convicted felon. Williams was also ordered to pay a $7,000 fine. He pled guilty to the charge on March 5, 2020.
On February 21, 2019, Alexandria Police Department officers responded to a call on Aguillard Lane in Alexandria. Upon their arrival, officers found Williams, who had outstanding active warrants, and placed him under arrest. During a search incident to the arrest, officers found the key to a vehicle that was parked and running nearby in Williams’ pocket. Inside that vehicle, officers found a loaded black handgun on the driver’s side floorboard. Before his arrest on February 21, 2019, Williams, a convicted felon, was prohibited from possessing firearms because of a prior conviction for illegally carrying a weapon in 2017. At the time of arrest, Williams knew his status as a convicted felon.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Each of these cases was brought as part of Project Guardian and Project Safe Neighborhoods (PSN), programs that have been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Husband and wife plead guilty to naturalization fraud and conspiring to illegally import and distribute male enhancement products and counterfeit goods from ChinaRead the Press Release
ROME, GA– Irfanali Momin and Shiba I. Momin a/k/a Saguftabanu Momin, husband and wife, have each pleaded guilty to naturalization fraud, and conspiring to illegally import misbranded drug products from China, receive misbranded drugs that had moved in interstate commerce, and to trafficking of counterfeit goods.
“These defendants profited by taking a shortcut—one that could have had devastating consequences for individuals who purchased these products,” said U.S. Attorney Byung J. “BJay” Pak. “By illegally importing and distributing products containing drugs that can only be obtained in the United States with a prescription written by a licensed, medical professional, the Momins put profit over public safety.”
“The health and safety of American consumers are placed at risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in misbranded drugs that are falsely labeled as dietary supplements,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “FDA remains committed to pursuing those who endanger the U.S. public health by importing and distributing fraudulent and potentially dangerous products.”
“Whether it is lying to illegally gain citizenship or illegally importing and selling misbranded pharmaceuticals, Homeland Security Investigations will aggressively pursue those that seek to profit from those fraudulent and dangerous activities,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “The Momins will now face the consequences for their actions thanks to the diligent efforts of all our partners on the Atlanta Document and Benefit Fraud Task Force.”
“The arrest of this couple essentially stopped the flow of illegal products throughout the Southeast that were sold to hundreds of stores and ultimately customers whose health was threatened by using them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working with our federal partners to make sure our citizens are protected from those who would choose to do them harm.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between August 2014 and November 2018, the Momins ordered and sold male enhancement products from China marketed under names such as “Black Ant King,” “Bull,” “Rhino 7,” “Super Hard,” “Jack Rabbit,” “Zhen Gongfu,” “Stree Overlord,” “Pro Power Max,” “Libigrow,” “Red Mamba,” “Rhino 69,” “Krazzy Rhino,” “Rhino 25,” Hard Steel,” and “Black Mamba.” These products contained sildenafil, the active pharmaceutical ingredient in Viagra, and/or tadalafil, the active pharmaceutical ingredient in Cialis. Both Viagra and Cialis can be obtained in the U.S. only with a prescription from a doctor.
In order to evade import restrictions, the Momins’ China-based suppliers mislabeled the boxes containing the illegal pills to make it appear that the boxes contained items that can be legally imported into the U.S., such as beauty products, health products, and health supplies. The Momins admitted to selling between $550,000 and $1.5 million in illegal drug products over the course of the conspiracy. They also sold various counterfeit goods from their warehouse in Dalton, Georgia, including counterfeit designer watches, headphones, e-cigarette devices, and tobacco rolling papers.
Earlier, in October 2013, the Momins both applied to become naturalized U.S. citizens. On his application form, Irfanali Momin falsely stated that he had never been married before and did not disclose that he had in fact been married to two women at the same time. During an interview with USCIS in June 2014, Irfanali Momin made the same false declarations. Based upon his false statements, Irfanali Momin became a naturalized U.S. citizen on August 16, 2014. On her application form, Shiba I. Momin a/k/a Saguftabanu Momin, falsely stated that she did not go by any other names when in fact she knew that her actual name was Shiba I. Momin, but she was only passing as Saguftabanu Momin. The investigation had revealed that Shiba I. Momin had originally obtained a Georgia’s driver’s license in her real name only to later obtain a fraudulent license in the name Saguftabanu Momin—the name she used to apply for and fraudulently receive U.S. citizenship on August 1, 2014. If USCIS had been aware of these facts, it would have denied her citizenship.
Irfanali Momin, 48, and Shiba I. Momin a/k/a Saguftabanu Momin, 42, both of Dahlonega, Georgia, were convicted on September 23, 2020 after pleading guilty to a criminal information. Sentencing for the Momins is scheduled for January 7, 2021, at 11:00 a.m., before U.S. District Judge Steve C. Jones. The Momins were originally arrested on January 8, 2020 after a grand jury returned a multi-count Indictment against them. As a consequence of their guilty pleas to naturalization fraud, Judge Jones will sign an order following sentencing that revokes their U.S. citizenship.
This case is being investigated by the Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, and the Federal Bureau of Investigation
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hot Springs Woman Sentenced to 14 Years in Federal Prison for Drug PossessionRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Michelle Friedman, age 38, was sentenced yesterday to 168 months in federal prison, followed by five years of supervised release for Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on or about January 3, 2020, agents with the Drug Enforcement Administration (DEA) learned that Friedman was purported to be selling methamphetamine from a hotel room in Fayetteville, Arkansas. These agents contacted Friedman's supervising parole officer and learned that Friedman had an active arrest warrant for absconding supervision, and had an active search waiver on file.
DEA agents and her Parole officer located Friedman in her hotel room and made contact with her. Friedman immediately advised officers that everything in the room belonged to her. During a search of the room, Officers located a box and a flashlight that contained methamphetamine, as well as a digital scale.
The DEA crime lab tested the seized methamphetamine and determined that it contained 627grams of methamphetamine.
A federal grand jury indicted Friedman in March 2020, and she entered a guilty plea in June 2020.
This case was investigated by the Drug Enforcement Administration (DEA) and Arkansas Probation and Parole. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
Head of Financial Services Firm Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York (“SDNY”), and Philip R. Bartlett, Inspector-in-Charge of the United States Postal Inspection Service’s New York Division (“USPIS”), announced that CRAIG ZABALA, the chairman, chief executive officer, and president of Concorde Group Holdings Inc. (“Holdings”), was arrested this morning in New York on securities fraud and wire fraud charges stemming from a scheme to defraud investors in Holdings, a purported financial services firm. Among other illicit activity, ZABALA fraudulently induced at least 18 investors to invest at least approximately $4.4 million based on false and misleading statements, by failing to use investors’ funds as promised, including to build Holdings’ purported business by investing in and buying other financial services companies, and by converting investors’ money to his own use, including to repay other investors in a Ponzi-like fashion. ZABALA is expected to be presented this morning in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Craig Zabala held a controlling interest in a purported financial services firm through which he defrauded investors of more than $4 million. Zabala allegedly lied to investors about how much money had been raised, how investors’ money would be used, who had invested, and how close the firm was to an initial public offering. As further alleged, Zabala appropriated most of the fraudulently obtained funds for his own use, or to pay off investors in Ponzi-like fashion.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “It can always be said, greed has a way of overcoming honest business practices; and in this case Mr. Zabala allegedly exhibited an indifference to investing regulations and the truth when he lied to his investors to enhance his lifestyle and enrich himself. As alleged, this case has all the elements of a classic Ponzi scheme. Investors should remember where there is high reward, there is high risk. Always verify ‘once in a lifetime’ investment claims to ensure you won't be taken for a ride.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
CRAIG ZABALA was the chairman, CEO, and president of various affiliated and intertwined purported financial services companies: Holdings, Concorde Group, Inc. (“Group”), Blackhawk Capital Group BDC, Inc. (“Blackhawk”), DBL Holdings, LLC, d/b/a “Drexel Burnham Lambert” (“DBL”), Concorde Investment Managers, LLC (“CIM”), and Concorde Europe, Ltd. (“Concorde Europe”). In or about August 2019, FINRA barred ZABALA from the broker-dealer industry, including because of his failure to cooperate with a FINRA investigation.
Holdings was a Delaware corporation formed in or about 2015, with an office in Jersey City, New Jersey, and a mailing address in New York, New York. Holdings purported to provide financial services, including merchant banking, investment banking, asset management, and securities brokerage services, to entrepreneurs, investors, and businesses in the middle market, meaning small to mid-sized companies with revenue and market capitalizations of less than $1 billion, in North America, Europe, and Asia. Holdings’ purported affiliates included Group, DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Holdings.
Group was a Delaware corporation formed in or about 1995, based in New York, New York, that purported to provide the same types of financial services as Holdings. Group’s purported affiliates included DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Group. Between in or about 2001 and in or about 2014, Group purportedly raised approximately $18 million from investors.
From at least in or about 2015 through in or about 2020, ZABALA and others perpetrated a scheme to defraud at least approximately 18 investors out of at least approximately $4.4 million in Holdings notes, warrants, and equity, almost all of whom invested in a private offering by Holdings of $25 million in senior secured notes with attached warrants paying 13 percent interest (the “Holdings Offering”).
ZABALA and others falsely represented that the proceeds from the offerings would be used to grow Holdings’ purported business by investing in and buying other financial services companies. In truth and in fact, and as ZABALA well knew, Holdings did not make any investments in or buy other companies.
ZABALA and others falsely represented to Holdings investors that Holdings had raised nearly $25 million in the Holdings Offering. In truth and in fact, and as ZABALA well knew, Holdings only raised a few million dollars.
ZABALA and others falsely represented to Holdings investors that the family office of a wealthy German family had invested millions of dollars in Holdings. In truth and in fact, and as ZABALA well knew, this family office never invested in, and never committed to invest in, Holdings.
ZABALA and others falsely represented to Holdings investors that Holdings would soon have an initial public offering (“IPO”), which would result in large profits to Holdings investors. In truth and in fact, and as ZABALA well knew, Holdings was not close to an IPO.
ZABALA converted at least approximately 70 percent of the approximately $4.4 million in Holdings investor funds in the form of cash withdrawals and other transfers to himself, payments to his girlfriend, payments of his personal credit card bills, and repayment of Group investors in a Ponzi-like fashion.
* * *
ZABALA, 68, was arrested this morning at his home in New York, New York. ZABALA was charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. He was also charged with one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offenses. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of the USPIS, and also thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Joshua A. Naftalis is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Gulfport Man Sentenced to over 15 years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss – Xzavier Earl Damon Wilson, 24, of Gulfport, was sentenced today by U.S. District Judge Louis Guirola, Jr., 188 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Kurt Theilhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Wilson was also ordered to pay a $5,000 fine and forfeit two firearms.
The Harrison County Sheriff’s Department Narcotics Unit was investigating a heroin overdose and received information that Wilson was the source of supply. On September 30, 2019, during a traffic stop of Wilson, deputies found 55.15 grams of 100% pure Methamphetamine, a small amount of marijuana and a Schedule I controlled substance, synthetic cannabinoid. A search of a car belonging to Wilson produced 27.873 grams of Heroin and 375.9 grams of pure Methamphetamine.
Wilson was charged in a federal criminal indictment and pled guilty before Judge Guirola on June 25, 2020.
The Harrison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Grand Jury indicts Chesterfield psychiatrist and business partner in health care fraud and money laundering schemeRead the Press Release
ST. LOUIS, MO – Dr. Franco Sicuro, of Chesterfield, Missouri, and Carlos Himpler, of Baton Rouge, Louisiana, were indicted on multiple charges of conspiracy and health care fraud charges. The indictment charges that as part of a fraud scheme Genotec DX and Midwest Toxicology Group, owned by Dr. Sicuro and Carlos Himpler, received over $15 million dollars for clinical laboratory tests that Genotec DX and Midwest Toxicology Group did not perform.
According to the indictment, Dr. Sicuro and Carlos Himpler falsely represented to Medicare, United Health Care, Aetna-Coventry, Anthem Blue Cross-Blue Shield, and Cigna that Genotec DX and Midwest Toxicology Group had performed quantitative urine drug tests and genetic tests, although neither laboratory had the equipment to perform the tests. To carry out the fraud scheme, Dr. Sicuro and Carlos Himpler paid other clinical laboratories about $125 to perform tests on a single urine specimen. Genotec DX and Midwest Toxicology Group then marked-up the same tests and billed insurance companies thousands of dollars for the same tests. In many instances, Genotec DX and Midwest Toxicology Group unbundled tests, which should have been billed as one test, billed the tests separately, and were paid $30,000 to $50,000 for a single urine drug test. To avoid detection, reimbursement claims were submitted on different days for the same patient and date of service but included different billing codes.
One business affected by the fraud scheme was UFCW Local #655, which paid Genotec DX $1,086,450.87 for urine drug tests for 7 union members between January and October 2015. UFCW Local #655 also paid Midwest Toxicology Group $150,596.74. Unknown to UFCW Local #655 and the public and private health care insurers, Midwest Toxicology Group was not certified by state or federal agencies to operate as a clinical laboratory and had no testing equipment.
Conspiracy to defraud carries a maximum penalty of five years imprisonment for each count and a fine of $250,000 or both. The health care fraud violations carry a maximum penalty of 10 years imprisonment for each count and a fine of $250,000 or both. Restitution to the victims is also mandatory.
The Federal Bureau of Investigation, U.S. Department of Health and Human Services, Office of the Inspector General investigated the case. Assistant United States Attorneys Dorothy McMurtry and Meredith Reiter are handling the case for the U.S. Attorney’s Office.
Fort Myers Business Owner Indicted for COVID Relief FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Casey David Crowther (35, North Fort Myers) with one count of bank fraud, one count of making a false statement to a lending institution, and two counts of illegal monetary transactions. If convicted, Crowther faces a maximum penalty of 30 years in federal prison for the bank fraud count and the false statement count and up to 10 years in federal prison for each illegal monetary transaction count. The indictment also notifies Crowther that the United States intends to forfeit a 2020 40-foot catamaran and $2,098,700, which are alleged proceeds of the offense.
According to the indictment, beginning in or about April 2020, Crowther submitted a false and fraudulent Payroll Protection Program (PPP) loan application and revised PPP loan application to an insured financial institution on behalf of his company, Target Roofing and Sheet Metal, Inc. Specifically, Crowther falsely represented that the PPP funds would only be used for business-related purposes, and he falsely certified that the funds would be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments on behalf of Target Roofing. These materially false, fraudulent, and misleading representations caused the Small Business Administration (SBA) to approve the PPP application and issue $2,098,700 in PPP funds. Crowther then unlawfully used the funds to wire $689,417 for the purchase of a 2020 40-foot catamaran boat and $100,000 in connection with a $722,474 promissory note.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Trent Reichling.
Former bank employee arrested in embezzlement scam involving over $40,000Read the Press Release
HOUSTON – A 38-year-old Houston woman has been taken into custody on allegations of embezzling thousands from her previous employer, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned a one-count indictment against Claudia Wells Sept. 17, charging her with embezzlement from a federally-insured credit union. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m. today.
According to the indictment, from May 28, 2019 to June 6, 2019, Wells embezzled approximately $43,000 from an account at the credit union while she was employed there.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Postal employee indicted for delay and destruction of MailRead the Press Release
HOUSTON – A 24-year-old Richmond resident has surrendered to federal authorities following the return of an indictment alleging she delayed and/or destroyed U.S. mail, announced U.S. Attorney Ryan Patrick.
A Houston federal grand jury returned the indictment Sept. 15 against Lovely Eliabe which was unsealed today. She is expected to make an initial appearance before U.S. Magistrate Christina Bryan at 2 p.m.
Eliabe was allegedly employed as a rural carrier associate at the U.S. Postal Service (USPS).
The indictment alleges she destroyed and delayed mail matter intended to be delivered through the USPS on June 26. As a USPS employee, Eliabe allegedly violated her obligation to deliver all of the mail matter entrusted to her.
She is no longer a USPS employee.
If convicted, she faces up to five years in federal prison and a possible $250,000 maximum fine.
USPS – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Luis Batarse is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Cancer Center President Indicted for Participation in Long-Running Antitrust ConspiracyRead the Press Release
A federal grand jury returned an indictment against Dr. William Harwin, founder and former President of Florida Cancer Specialists & Research Institute LLC (FCS), for conspiring to allocate medical and radiation oncology treatments for patients in Southwest Florida, the Department of Justice announced today.
The indictment, filed in the U.S. District Court in Fort Myers, Florida, charges Harwin for participating in a criminal conspiracy with a competing oncology group in Collier, Lee, and Charlotte counties (Southwest Florida). Beginning as early as 1999 and continuing until at least 2016, Harwin and his co-conspirators entered into an illegal agreement to allocate medical oncology treatments, such as chemotherapy, to FCS and radiation oncology treatments to a competing oncology group. The conspiracy allowed FCS and the competing oncology group to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.
“As the charge demonstrates, the division remains committed to holding culpable executives accountable for their crimes, especially when they impact vulnerable Americans, such as those in need of life-saving treatments,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division will continue to work to protect competition and integrity in the healthcare industry.”
“It is unconscionable for a doctor to prioritize profits over patient care," said Michael F. McPherson, Special Agent in Charge of the FBI Tampa Field Office. “The FBI will persist in exposing unscrupulous medical providers who deny the public access to a competitive healthcare marketplace.”
The indictment follows a felony charge filed against FCS in April 2020 for its role in the same conspiracy in which Harwin is alleged to have participated. The Antitrust Division and FCS resolved the charge with a deferred prosecution agreement, under which the company admitted to conspiring to allocate treatments for cancer patients and agreed to pay a $100 million criminal penalty. FCS also agreed to waive and refrain from enforcing any non-compete provisions with its current or former oncologists or other employees who, during the term of the deferred prosecution agreement, open or join an oncology practice in Southwest Florida.
An indictment merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charge in the indictment carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.
Today’s announcement is the result of an ongoing federal antitrust investigation into market allocation and other anticompetitive conduct in the oncology industry, which is being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Tampa Field Office – Fort Myers R.A. Anyone with information in connection with this investigation or anticompetitive conduct in the healthcare industry generally is urged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit https://www.justice.gov/atr/contact/newcase.html.
Felon Sentenced to Prison for Illegally Possessing a PistolRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 46 months’ imprisonment with credit for time served on any federal detainer; and three years supervised release, on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Melvin Russaw, age 38.
According to information presented to the court, on or about June 6, 2017, Russaw was apprehended by law enforcement on state charges, after attempting to flee in his 2008 Gray Chevy Impala. Upon execution of a search warrant for the vehicle, which was registered to Russaw, investigators discovered a small panel wherein a Glock, model 21, .45 caliber pistol, bearing serial number HVH758, was hidden. Russaw, who has multiple prior felony state convictions, as well as a federal conviction, is prohibited from lawfully possessing a firearm.
Judge Bissoon ordered that the sentence imposed in this case run concurrently with the state sentence imposed on Mr. Russaw, at Docket Number 10326-2017, in the Court of Common Pleas Allegheny County, Criminal Division, on October 1, 2019.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Russaw. This case was brought under 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.
Essex County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, Belleville, New Jersey, was arrested today for allegedly possessing images of child sexual abuse and distributing them on the internet, U.S. Attorney Craig Carpenito announced.
Mauricio Calderon, 49, of Belleville, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He is scheduled to make his initial appearance by videoconference today before U.S. Magistrate Judge Edward S. Kiel.
According to documents filed in this case and statements made in court:
Between March 2020 and April 10, 2020, Calderon used an internet-based application to distribute multiple graphic videos depicting the sexual abuse of minors. During the course of the investigation, Calderon publicly posted in a chatroom multiple videos depicting the sexual abuse of children, and also sent links that redirected to web-pages containing child pornography. Law enforcement discovered numerous videos and images of child sexual abuse on Calderon’s electronic devices when he was arrested at his home this morning.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison, and fine of $250,000.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Elkins man admits to meth chargeRead the Press Release
ELKINS, WEST VIRGINIA – Nicholas Adam Owens, of Elkins, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Owens, 25, pled guilty to one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine.” Owens admitted to having more than five grams of methamphetamine, also known as “crystal meth” or “ice,” in August 2019 in Randolph County.
Owens faces no less than five years and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Elkins Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Dubuque Man Pleads Guilty to Distributing Heroin that Caused OverdoseRead the Press Release
A man who sold heroin that caused a near-fatal overdose pled guilty today in federal court in Cedar Rapids.
Michael Jerome Greenwood, age 26, from Dubuque, Iowa, was convicted of one count of distributing heroin near a playground.
In a plea agreement, Greenwood admitted that he sold heroin in Dubuque between 2016 and 2018. In August 2018, Greenwood sold $100 worth of heroin to two women. After using the heroin, one of the women lost consciousness and started having trouble breathing. The woman’s family members rushed her to the hospital, where she was revived with Narcan, saving her life. Greenwood also admitted in the plea agreement that he sometimes requested sexual favors from his customers in exchange for heroin.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Greenwood remains in custody of the United States Marshal pending sentencing. Greenwood faces a mandatory minimum sentence of 1 year imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorneys Elizabeth Dupuich, Dan Chatham, and Special Assistant United States Attorney Alexander Geocaris.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1044-CJW.
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Dual Colombian-American Citizen Sentenced for Illegally Exporting Firearms from Florida to ColombiaRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Jhon Marin-Moreno (39, Medellin, Colombia) to 48 months in federal prison for smuggling goods from the United States. In addition, he was ordered to pay a money judgment in the amount of $20,000.
Marin-Moreno had pleaded guilty in June 2020.
According to court documents, Marin-Moreno, a dual citizen of the United States and Colombia, arranged for individuals in Florida to acquire firearms for him, including numerous types of assault rifles. Marin-Moreno then illegally exported the firearms to Colombia concealed in packages containing household items. Marin-Moreno and his co-conspirators attempted to obliterate the serial numbers on the firearms so that they could not be traced. Some of the firearms were acquired to satisfy debts owed for drug purchases. Neither Marin-Moreno nor his co-conspirators applied for or obtained the necessary licenses for exporting defense articles as required by federal law.
On February 10, 2020, Marin-Moreno was detained while traveling through Panama and was immediately removed to the United States to face the charges in the indictment.
Marin-Moreno was previously convicted in the United States District Court for the Northern District of Georgia, in 2012, of conspiracy to make false statements and representations to a federally licensed firearms dealer, in connection with a separate scheme to acquire firearms unlawfully.
“This repeat criminal again thought he could thwart the laws of the United States by crossing international borders,” said HSI Tampa Acting Deputy Special Agent in Charge Micah McCombs. “Because of the unique international investigative authorities of HSI and our outstanding law enforcement partnerships with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Colombia’s Policía Fiscal y Aduanera (POLFA), a unit of the National Police of Colombia, he will now be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Colombia’s Policía Fiscal y Aduanera (POLFA), a unit of the National Police of Colombia. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Dos Hombres Acusados en el Tribunal Federal del Distrito Sur de Florida de Secuestrar y Torturar Inmigrantes CubanosRead the Press Release
Miami, Fl. – Dos hombres hicieron su comparecencia inicial en el Distrito Sur de Florida por cargos de tráfico de inmigrantes, los cuales implican secuestro y tortura de Cubanos y extorsión de dinero a los familiares de las víctimas.
Ariana Fajardo Orshan, Fiscal Federal del Distrito Sur de Florida, George L. Piro, Agente Especial a Cargo, Oficina Federal de Investigaciones (FBI, por sus siglas en Inglés), Sucursal de Miami, y Anthony Salisbury, Agente Especial a Cargo, Agencia de Inmigración y Control de Aduanas de los Estados Unidos, Agencia de Investigaciones de Seguridad Nacional (ICE-HSI, por sus siglas en Inglés), Sucursal de Miami, hicieron el anuncio.
La declaración jurada de la denuncia criminal presentada en el Distrito Sur de Florida contra Reynaldo Marquez Crespo, 41, y Jancer Sergio Ramos Valdés, 33, alega lo siguiente: Los acusados hicieron creer a sus víctimas que iban a hacerlos entrar clandestinamente a los Estados Unidos provenientes de Cuba. En lugar de eso, Crespo, Valdés, y sus cómplices transportaron a las víctimas en bote a Mérida, México, los encerraron en una casa, y los mantuvieron cautivos para exigir rescate. Crespo, Valdés, y otros ordenaron a cada víctima a dar los datos de algún familiar que pudiera pagar un rescate de $10,000. Los hombres contactaron a los familiares de las víctimas, algunos de los cuales estaban localizados en Miami, y amenazaron con torturar, privar de comida, y matar a las víctimas si los familiares se rehusaban a pagar. Si uno de los familiares de las víctimas podía pagar el rescate, Crespo, Valdés, y los otros liberaban a la víctima y la mandaban en bus a la frontera entre México y los Estados Unidos con instrucciones para buscar asilo político. Cuando los familiares no podían pagar el rescate, los inmigrantes eran golpeados, amenazados con cuchillos y pistolas, y electrocutados con pistolas paralizantes hasta que las autoridades Mexicanas los rescataron, conforme con la declaración jurada de la denuncia criminal.
Valdés fue arrestado en Connecticut, donde un juez magistrado federal ordenó su detención en espera del juicio. Crespo fue arrestado en Texas. Los dos acusados fueron trasladados a Miami para enfrentar sus cargos. Esta semana, los acusados hicieron su comparecencia inicial en el Distrito Sur de Florida ante el Juez Magistrado Federal Jonathan Goodman. La audiencia de detención preventiva de Crespo ha sido fijada el 28 de Septiembre de 2020 a la 1:00 p.m., en el tribunal federal magistrado de Miami.
Estos cargos son el resultado del continuo esfuerzo de la Operación “Grupo Operativo Sisyphus”, una asociación de múltiples agencias establecida por el Grupo Operativo de Control del Delito de Drogas (OCDETF, por sus siglas en Inglés) Programa de Prioridad del Delito Transnacional Organizado. La Operación “Grupo Operativo Sisyphus” fue formada para combatir crímenes organizados en el Caribe, la cual incluye a la Oficina del Fiscal Federal del Distrito Sur de Florida, a la Sucursal de Miami de la Oficina Federal de Investigaciones (FBI) y a la Sucursal de Miami de la agencia de Investigaciones de Seguridad Nacional (HSI). En los últimos años, la Operación “Grupo Operativo Sisyphus” se ha enfocado en organizaciones que utilizan coerción para obligar a inmigrantes y a sus familias a pagar sumas de rescate por la liberación de sus seres queridos.
La Operación Sisyphus es parte de una investigación del Grupo Operativo de Control del Delito de Drogas (OCDETF). La misión principal del programa OCDETF es identificar, interrumpir, y desmantelar a los narcotraficantes de alto nivel, lavadores de dinero, y otras organizaciones de criminales transnacionales de prioridad que amenazan a los ciudadanos de los Estados Unidos utilizando un enfoque guiado por fiscales, conducido con inteligencia, y constituido de múltiples agencias para combatir el crímen transnacional organizado. El programa OCDETF facilita operaciones conjuntas y complejas enfocando a sus agencias asociadas en sus objetivos prioritarios, manejando y coordinando el esfuerzo de múltiples agencias, y potenciando inteligencia a través de múltiples plataformas de investigación.
FBI Miami y HSI Miami investigaron este caso. La abogada fiscal Quinshawna Landon es la abogada acusadora en el caso. Las abogadas fiscales Adrienne Rosen y Annika Miranda están encargadas del decomiso de los bienes.
Si usted cree que es una víctima de coerción o extorsión de inmigrantes o conoce a alguien que lo es, le sugerimos llamar al 1-800-CALLFBI (225-5324). Usted también puede llamar al 1-866-347-2423 o visitar https://www.ice.gov/tipline. Se ofrece ayuda en Inglés, Español, y en otros idiomas.
Una denuncia criminal contiene alegaciones. Todo acusado es considerado inocente hasta que se demuestre su culpabilidad.
Usted puede encontrar información y documentos legales relacionados a este comunicado de prensa en la página web del Tribunal Federal del Distrito Sur de Florida, www.flsd.uscourts.gov o en http://pacer.flsd.uscourts.gov, bajo los números de casos 20-mj-3346 y 20-mj-3347.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for fentanyl distribution.
Santiago Rubel Guerrero Tejeda, 23, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and four years of supervised release. In May 2020, Guerrero Tejeda pleaded guilty to one count of distribution of 40 grams or more of fentanyl.
Guerrero Tejeda sold 157.9 grams of a mixture containing fentanyl to an undercover officer in September 2019.
He was arrested and charged by complaint in September 2019 as part of a coordinated law enforcement operation in and around the Merrimack Valley known as “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Essex County District Attorney Jonathan W. Blodgett made the announcement. Valuable assistance was provided by the Massachusetts State Police, the Lawrence Police Department and the North Andover Police Department. Assistant United States Attorney Annapurna Balakrishna of Lelling’s office prosecuted the case.
Doctor Pleads Guilty in Manhattan Federal Court to Illegal Distribution of Oxycodone PillsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RUVIM KRUPKIN, a New York state-licensed doctor, pled guilty today to conspiring to illegally distribute large quantities of oxycodone from a medical office in Brooklyn, New York. As part of his guilty plea, KRUPKIN also agreed to forfeit $124,000 in proceeds obtained through his illicit distribution of oxycodone. KRUPKIN pled guilty before United States District Judge Analisa Torres in Manhattan federal court.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Ruvim Krupkin, for more than a decade, wrote thousands of medically unnecessary prescriptions for oxycodone, enriching himself at the expense of others, while the country suffered from a devastating opioid epidemic. He now awaits sentencing for his crime.”
According to the allegations contained in the Indictment and statements made during court proceedings:
KRUPKIN, a licensed internal medicine doctor with specialties in oncology and hematology, practiced at a medical office in Brooklyn. From 2006 to July 2017, KRUPKIN prescribed over four million oxycodone pills to individuals he knew had no legitimate medical need for the pills. KRUPKIN charged each patient $200 in cash for each visit, payable directly to him.
As a hematologist, KRUPKIN treated patients who had, or claimed to have, sickle cell anemia – a medical condition that can cause pain for which oxycodone, in conjunction with other treatments, may be legitimately prescribed. However, KRUPKIN wrote thousands of prescriptions for large quantities of oxycodone to patients, knowing that they in fact had no legitimate medical need for the prescriptions. KRUPKIN generally performed little to no physical examination on these patients; indeed, the medical notes for each patient were largely the same from one visit to the next.
In addition, KRUPKIN typically issued patients prescriptions for a large dose of oxycodone – typically 180 80-milligram pills, until approximately 2010, when the formula for oxycodone changed, reducing the street value of the 80-milligram pills. At that time, KRUPKIN began prescribing 180 or 240 30-milligram pills. KRUPKIN’s patients filled their prescriptions at pharmacies throughout New York, and in certain cases, sold the oxycodone pills they received to drug dealers, who in turn re-sold the pills at high value on the street. KRUPKIN knew that certain of his patients were diverting the oxycodone pills he was prescribing, but he nonetheless continued writing prescriptions of oxycodone for such individuals.
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KRUPKIN, 69, of Summit, New Jersey, pled guilty to one count of participating in a conspiracy to distribute narcotics, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
KRUPKIN is scheduled to be sentenced by Judge Torres on January 26, 2021, at 11:00 a.m.
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Health Care Fraud Task Force. Ms. Strauss also thanked the New York City Human Resources Administration for its work on the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Tara M. La Morte and Alexandra N. Rothman are in charge of the prosecution.
Destrehan Man Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that JOSEPH MEISCH, 45, of Destrehan, Louisiana, was charged on September 23, 2020 in a bill of information with one count of violating 18 U.S.C. § 1343, wire fraud.
According to the bill of information, MEISCH, while employed as the business manager of St. Patrick’s Church in New Orleans, defrauded the Church of approximately $329,856.20. Specifically, MEISCH used credit cards belonging to the Church to purchase personal items and transferred Church funds into his personal accounts.
If convicted, MEISCH faces a maximum penalty of twenty (20) years incarceration, a $250,000 fine, a three (3) year term of supervised release, and a mandatory special assessment of $100.00.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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DS-44 Drug Gang Leader Pleads Guilty: Christopher Highsmith Faces 15 Years to Life at SentencingRead the Press Release
PITTSBURGH, PA –A former resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Christopher Highsmith, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than 400 grams of a mixture containing heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Highsmith is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. In addition to communications about drug trafficking between Highsmith, the leader of the organization, and many of his coconspirators, agents made numerous seizures of fentanyl, heroin, and other drugs from members of the organization, as well as maintained critical physical surveillance of Highsmith’s drug-trafficking activities.
The court was further advised that Mr. Highsmith was involved in the acquisition and distribution of heroin and fentanyl, to both other distributors and end users. Highsmith personally engaged in the distribution activity, as well as directed lower-level members of DS44 to make drug deliveries, to collect payment, and to maintain records of drug proceeds.
Judge Stickman scheduled sentencing for February 8, 2021, at 10:30 a.m. The law provides for a total sentence of not less than 15 years or more than life in prison, a fine of up to $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Highsmith
remains in custody pending sentencing.
Assistant United States Attorneys Carolyn J. Bloch and Brendan McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Crofton Man Sentenced to More Than One Year in Federal Prison for Intentionally Damaging the Computers of His Former EmployerRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Shannon Stafford, age 50, of Crofton, Maryland, to a year and a day in federal prison, followed by three years of supervised release, for illegally accessing and damaging the computer network of his former employer. Judge Blake also entered an order requiring Stafford to pay restitution in the amount of $193,258.10 to his former employer.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Attorney General Brian Rabbitt of the Department of Justice Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Deputy Inspector General Richard K. Delmar of the Department of the Treasury, Office of Inspector General.
According to court documents and evidence presented at his four-day trial, from January 5, 2004 through August 6, 2015, Stafford was employed in the information technology (IT) department at Business A, a global company with thousands of employees and offices around the world, including in Maryland and Washington, D.C. Stafford was employed in the Washington office and provided IT technical support to employees based at, or visiting, the Washington, McLean, Virginia, and Baltimore offices. As part of his duties, Stafford had access to the system login credentials of other employees and was authorized to use them in the course of performing his technical support duties. Stafford was also responsible for disabling company users’ network access credentials at the end of their employment. In 2014, Business A provided Stafford with a laptop to use for his work.
Witnesses testified that in 2014, Stafford was promoted to the managerial role of technical site lead for the Washington office. In March 2015, Stafford was demoted back to an IT support role, due to performance issues in his management position. Stafford’s performance issues continued and he was fired on August 6, 2015. Stafford did not return the laptop he was previously provided by Business A.
The evidence proved that on the evening of August 6, 2015, Stafford repeatedly attempted to remotely access Business A’s computer networks from his residence, using the company laptop. Stafford unsuccessfully attempted to access the company’s network approximately 10 times, using his own credentials and the credentials of a former co-worker, whom he had previously assisted. In the early morning hours of August 8, 2015, Stafford successfully used the co-worker’s credentials and the company laptop to access, without authorization, the computer in the Washington office that had been located under his desk. Stafford used the Washington IT computer to execute demands to delete all of the file storage drives used by the Washington office, then changed the password to access the storage management system. The deletion of the files caused a severe disruption to the company’s operations and the loss of some customer and user data. Changing the password hindered the company’s efforts to determine what happened and restore access to its remaining files. As a result of the deletion of the network file storage drives, Washington users were unable to access their stored files for approximately three days, until the data could be restored from backups. Customer and user data that was not included in the most recent backup prior to Stafford’s deletion of the files was permanently lost.
On August 11, 2015, Stafford unsuccessfully attempted to remotely access the company’s computer network from his home approximately 13 times, using credentials that were not his. On August 13, 2015, a company representative spoke to Stafford and demanded that he cease and desist his attempts to unlawfully access Business A’s computer systems. The evidence showed that despite Business A’s demand, between August 21 and September 9, 2015, Stafford attempted to access the company’s network from his home approximately 17 times, using credentials that were not his. On September 14, 2015, Stafford used the credentials of another former co-worker to access a network file storage system computer that he had been responsible for maintaining in the IT department of the company’s Baltimore office, intending to cause the same type of damage he did when he deleted the Washington office’s stored files. However, Stafford’s attempt failed because Business A had changed the password after Stafford’s attack on the Washington files.
The actual loss to Business A resulting from Stafford’s damage and attempted damage to their computer systems, including the cost of restoring the deleted systems, investigating what happened, and responding to the intrusion is at least $38,270. In addition, Business A incurred legal fees totaling $133,950.60 and a fee of $21,037.50 for a forensic investigation.
United States Attorney Robert K. Hur praised the FBI and Treasury OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers and Trial Attorney S. Riane Harper of DOJ’s Computer Crime and Intellectual Property Section, who prosecuted the case.
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Covington County Felon Sentenced to 16 Months in Prison Under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Hattiesburg, Miss. – Alexander Knight, 32, of Seminary, was sentenced today by Senior U.S. District Court Judge Keith Starrett to 16 months in prison, a $3000 fine, and three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi.
On November 19, 2019, during the execution of an arrest warrant for Knight, Covington County Sheriff’s deputies and members of the U.S. Marshal’s Gulf Coast Regional Fugitive Task Force found a firearm on Knight’s person. Following his arrest, but before the execution of the warrant associated with his federal indictment, Knight also managed to escape the Covington County Jail with two other inmates. He remained at large for more than two weeks before being recaptured and transferred into federal custody.
Knight was originally indicted for this offense on January 29, 2020. He pled guilty on June 10, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Covington County Sheriff’s Department and the Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Convicted Felon from Dyersville, Iowa, Sentenced to over Five Years in Federal Prison for Unlawfully Possessing a GunRead the Press Release
A multiple-time convicted felon who unlawfully possessed guns was sentenced today to more than five years in federal prison.
Allen Osterkamp, age 29, from Dyersville, Iowa, received the prison term after a March 5, 2020, guilty plea to being a prohibited person in possession of a firearm.
At the guilty plea, Osterkamp admitted he unlawfully possessed a stolen gun in March 2017. At the sentencing hearing, Osterkamp admitted he actually possessed more than eight guns around March 2017. Osterkamp had previously been convicted of multiple felony offenses, including possessing a precursor with intent to manufacture meth, operating a motor vehicle without consent, and multiple convictions for theft. Osterkamp also had two prior convictions for domestic abuse.
Osterkamp was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Osterkamp was sentenced to 70 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.
Osterkamp 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 Anthony Morfitt and investigated by the Jones County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-65.
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Colorado Springs Gang Member Sentenced to 5 Years in Federal Prison for Bank Robbery and Attempted Bank RobberyRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Elijah Nathanial Salazar, age 22, of Colorado Springs, and a Rolling 60s gang member, was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for possession of a firearm during and in relation to a crime of violence. The Denver Division of the FBI joined in this announcement.
According to facts contained in the plea agreement, on the morning of March 14, 2018, Salazar walked into the ENT Federal Credit Union on Jet Drive in Colorado Springs. Salazar confronted a bank teller saying he had a weapon and demanding cash. The teller handed Salazar cash. Salazar then quickly left the premises. The teller later told officers that the robber appeared to have a substantial amount of makeup on his face in order to alter his appearance.
During a March 23, 2018 robbery of the ANB Bank on Briargate Boulevard in Colorado Springs, a 16-year-old male, who was being initiated into the gang, approached a teller demanding money. The suspect wore makeup in an attempt to make his complexion lighter. The 16-year-old fled with cash the teller provided him. Immediately after the robbery, bank officials locked the doors, keeping witnesses inside.
The bank manager became suspicious that one individual inside the bank, later identified as Salazar, had tried to distract her during the robbery, thus acting in concert with the robber. She instructed Salazar to be seated in the lobby and to wait for the police. When contacted by law enforcement, Salazar also had makeup on. After being searched, he was arrested for possessing cocaine. Further investigation revealed that Salazar had accompanied the 16-year-old during the robbery and that Salazar’s role was to make sure the minor robbed the bank.
“If there was ever a crime that fit the expression ‘crime doesn’t pay’, bank robbery is it: robbers get very little cash, almost always get caught, and are sentenced to substantial federal prison time as a result,” said U.S. Attorney Jason Dunn. “Unfortunately, this defendant is learning that lesson the hard way. Hopefully the next would-be-robber sees this result and thinks twice.”
“Elijah Nathanial Salazar will now face the consequences of his actions with a lengthy prison sentence,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to investigate violent offenders who target commercial institutions for robbery. FBI Denver and our Southern Colorado Safe Streets Task Force are grateful for the hard work and efforts of the Colorado Springs Police Department, El Paso County Sheriff’s Office, as well as that of the United States Attorney’s Office throughout this investigation.”
Salazar was prosecuted by Assistant U.S. Attorney Kurt Bohn. The sentence was pronounced by U.S. District Court Judge William J. Martinez on September 23, 2020. The case was investigated by the Denver Division of the FBI, the Colorado Springs Police Department and the El Paso County Sheriff’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 18-cr-360.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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.
Claiborne Parish Constable Indicted for Selling and Misbranding Illegal SupplementsRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned an indictment charging William Earl Maddox, 72, of Haynesville, Louisiana, with selling and misbranding illegal supplements online and in stores. Maddox has been charged with two counts of mail fraud, three counts of misbranding of a drug with intent to defraud or deceive, and seven counts of wire fraud.
According to the indictment, from around January 1, 2015 and continuing until about December 31, 2018, Maddox, the elected Constable in Claiborne Parish, Louisiana, sold supplements in capsules in stores and on eBay and websites that he operated, advertising them to be all-natural herbal supplements to treat impotence.
The indictment alleges that Maddox obtained green capsules in unlabeled blister packs in the mail from foreign countries, including China, which contained sildenafil, the active ingredient in the prescription drug Viagra; tadalafil, the active ingredient in the prescription drug Cialis; and testosterone propinionate, an anabolic steroid and a Schedule III controlled dangerous substance. It is alleged that Maddox had the capsules repackaged and advertised them to contain all natural ingredients but the labeling did not reveal that the capsules contained sildenafil, tadalifil, or testosterone propinionate.
The indictment further alleges that when customers purchased these products, payment was made to the PayPal business account for Middle Marketing, LLC, which was Maddox’s company. Maddox would then ship the capsules to customers via the United States Postal Service and transfer the funds generated from the sale of the products from the PayPal account to his Middle Marketing bank account.
If convicted, the defendant faces up to 20 years in prison, a $250,000 fine, or both, on the mail and wire fraud counts and up to 3 years in prison, a $250,000 fine, or both, on the misbranding of a drug with intent to defraud or deceive counts in the indictment.
The U.S. Food and Drug Administration conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Earl M. Campbell are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Cedar Rapids Woman Who Lied to the Grand Jury Sentenced to Federal PrisonRead the Press Release
A woman who lied to a federal grand jury about her boyfriend’s drug use was sentenced to federal prison on September 16, 2020.
Paula Lynn Cole, age 31, from Cedar Rapids, Iowa, received the prison term after a March 2, 2020 guilty plea to one count of making a false declaration before a grand jury.
In a plea agreement, Cole admitted that she testified before a federal grand jury in September 2018 regarding an investigation of her boyfriend for a firearms charge. During her grand jury testimony, Cole testified that she did not know whether her boyfriend was a marijuana user and that there was nothing that ever indicated to her that he used marijuana. Cole admitted in her plea agreement that her grand jury testimony was false and that she knew that her boyfriend was a marijuana user because she had previously seen him use marijuana.
Cole was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cole was sentenced to eight months’ imprisonment, four months of which will be served in prison, and four months of which will be served in home detention. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cole 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 investigated by the Federal Bureau of Investigation and Cedar Rapids Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR‑00107‑CJW‑MAR.
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Carroll Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
A man who received child pornography pled guilty today, in federal court in Sioux City.
Kyler Colten Cook, age 29, from Carroll, IA, pled guilty to receipt of child pornography.
In a plea agreement, Cook admitted that between February 8, 2019 and December 3, 2019, he knowingly received visual depictions of minors engaged in sexually explicit conduct.
While released pending trial, Cook was caught sending graphic texts and visual images to a female and was then detained in federal custody pending trial.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Cook remains in custody of the United States Marshal pending sentencing. Cook faces a minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and at least 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3023.
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Blacksburg Doctor to Serve 90 Months in Prison on Health Care Fraud, Distribution of Controlled Substances, Obstruction of Justice ChargesRead the Press Release
ROANOKE, Va. – Frank Purpera Jr., the former owner of the Virginia Vein Institute, was sentenced today in U.S. District Court in Roanoke to 90 months in federal prison after being convicted by a jury in January 2020 of illegally distributing controlled substances, health care fraud, conspiracy to commit health care fraud, and obstruction of justice. Acting United States Attorney Daniel P. Bubar, Virginia Attorney General Mark Herring and Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services made the announcement today.
Purpera, 45, of Blacksburg, Va., was convicted in January on 56 counts of illegal distribution of a controlled substance, two counts of obstruction of justice, one count of health care fraud, and one count of conspiracy to commit health care fraud.
“Dr. Purpera violated the trust placed in him when he illegally prescribed powerful narcotics and defrauded important health care programs depriving Virginians of necessary funding,” Acting United States Attorney Bubar said today. “Today’s significant sentence is the product of years of work by an incredible group of our state and federal partners—the Virginia Attorney General’s Office, Department of Health and Human Services-Office of the Inspector General, Drug Enforcement Administration, and the Federal Bureau of Investigation.”
“Doctors and other healthcare providers who defraud our healthcare system and use their position to illegally distribute controlled substances not only waste taxpayer money but also put their communities in danger,” said Attorney General Herring. “I want to thank both our state and federal partners for their hard work on this case and continued collaboration on similar important cases.”
“Dr. Purpera placed his interests above those of the taxpayers and the patients he served. In the process, he compromised his integrity and violated the Hippocratic Oath,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our state and federal law enforcement partners to protect our health programs and bring criminals to justice.”
Evidence presented at trial established that Purpera, for a period of approximately five years, wrote numerous prescriptions for Percocet, and Adderall, both Schedule II controlled substances, in the name of his wife, who had a different last name, on multiple occasions. The prescriptions were not for legitimate medical purposes and were outside the scope of Purpera’s medical practice.
In addition, the defendant falsified his medical records and sent millions of dollars in fraudulent bills to Medicare, Virginia Medicaid, and Anthem Insurance. The court ordered Purpera to pay over $2.3 million in restitution.
After a search warrant was executed at the Virginia Vein Institution in September 2016, Purpera told his employees to say, “I don’t recall” when questioned by federal investigators. To reiterate this point, Purpera showed an employee a video clip from the popular movie, “The Wolf of Wall Street,” in which numerous employees, when interviewed by federal law enforcement, say “I don’t recall, I don’t recall.”
The investigation of the case was conducted by the Department of Health and Human Services-Office of the Inspector General, the Drug Enforcement Administration, the Virginia Attorney General’s Medicaid Fraud Control Unit, the Federal Bureau of Investigation, and an Investigator with the United States Attorney’s Office. Assistant United States Attorneys Jonathan Jones and Randy Ramseyer, and Nicole Terry, a Special Assistant United States Attorney and an Assistant Attorney General assigned to the Virginia Attorney General’s Medicaid Fraud Control Unit, prosecuted the case for the United States.
Baltimore Man Pleads Guilty to Drug Distribution and Admits It Resulted in the Death of A VictimRead the Press Release
Baltimore, Maryland – Shannon Dorrell Marshall, age 43, of Baltimore, Maryland, pleaded guilty today to two counts of distribution of controlled substances, specifically a fentanyl analogue and heroin. Marshall admitted that a victim died as a result of his drug distribution. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Harford County Sheriff Jeffrey R. Gahler; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Henry Trabert of the Aberdeen Police Department; Chief Charles Moore of the Bel Air Police Department; Chief Teresa Walter of the Havre de Grace Police Department; and Harford County State’s Attorney Albert Peisinger.
According to his guilty plea, on May 11, 2017, Harford County Sheriff’s Office detectives went to a home in Abingdon, Maryland, where a victim had been reported dead. An autopsy determined that the victim died of 4-Fluoroisobutyryl fentanyl and carfentanil intoxication. Detectives seized the victim’s phone and recovered messages from the victim arranging to purchase drugs from an individual known as “Cake,” and learned that Marshall was the source of the drugs sold to the victim. Further review of the phone revealed that the victim had been purchasing gel caps of heroin from “Cake” since October 2016.
As detailed in the plea agreement, on June 15, 2017, detectives conducted surveillance of Marshall and observed him engage in a hand-to-hand drug transaction. When detectives exited their vehicles to approach Marshall, he fled. Detectives were able to stop the person who had just purchased drugs from Marshall. The drugs were determined to be three gel caps of heroin and crack cocaine. On June 21, 2017, Harford County Task Force detectives executed a search warrant at Marshall’s residence and seized a bag containing 2.8 grams of cocaine. Marshall was arrested and agreed to waive his rights and speak to detectives, subsequently admitting to selling drugs to the overdose victim, as well as to the individual on June 15, 2020.
Marshall and the government have agreed that, if the Court accepts the plea agreement, Marshall will be sentenced to between 13 years and 15 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for December 22, 2020 at 10 am.
United States Attorney Robert K. Hur commended the DEA, the Harford County Sheriff’s Office and the other members of Harford County Task Force, comprised of members of the Harford County Sheriff's Office, Maryland State Police, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department, and the Harford County States Attorney’s Office, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano and Kim Y. Oldham, who are prosecuting the case.
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