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21 August 2020
North Carolina Risk Consultant Pleads Guilty to Tax Fraud and Illegally Possessing a FirearmRead the Press Release
A Chapel Hill, N.C., businessman pleaded guilty today to filing a false tax return and being a felon in possession of a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court filed documents, Charles Agee Atkins controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management LLC, Risk Assessment & Management LLC, and Ram Omni LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the Internal Revenue Service (IRS). Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several previous years. All told, Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12 gauge shotgun, which Atkins could not legally possess because of his prior convictions.
U.S. District Judge Catherine Eagles will set sentencing at a later date. At sentencing, Atkins faces a maximum sentence of three years in prison on the tax charge and ten years in prison on the felon in possession charge. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Tanner Kroeger, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nebraska Man to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 20, 2020, to ten years in federal prison.
Keith McNeil, 34, from Lincoln, Nebraska, received the prison term after a March 20, 2020, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea and sentencing hearings, evidence showed that from May 2019 and July 2019, McNeil and others conspired to distribute at least 200 grams of actual (pure) methamphetamine. On or about June 12, 2019, Sioux City Police officers, while working an unrelated case at the Hard Rock Casino, seized about ¼ pound of methamphetamine from a vehicle in the parking lot, found unattended with its lights on. Law enforcement identified the prior occupants of the vehicle by video surveillance. Officers determined, and McNeil ultimately admitted, that he had another person drive him from Lincoln, Nebraska, to Sioux City, Iowa, to obtain methamphetamine through a middle-man. McNeil also admitted that he had engaged in the same conduct, with the same persons, on June 8, 2019.
McNeil was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. McNeil was sentenced to 120 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. McNeil 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 Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4046. Follow us on Twitter @USAO_NDIA.
Navajo Man Sentenced for Assault Resulting in Serious Bodily Injury of a Child under the Age of 18Read the Press Release
ALBUQUERQUE – Randall Farnham, 35, of Gallup, New Mexico, was sentenced on August 18, 2020 in federal court in Albuquerque to 120 months in prison for assault resulting in serious bodily injury of a child under the age of 18 in Indian Country. Upon release from prison, Farnham also will be subject to five years of supervised release.
Farnham pled guilty to this offense on March 3, 2020. Farnham assaulted his two-month old son, ultimately causing life threatening injuries and long-term disabilities. In his plea agreement, he admitted committing the crime within the exterior boundaries of the Navaho Reservation, Indian Country, in McKinley County, New Mexico, on June 24, 2011.
The case was investigated by the Gallup Residency office of the Federal Bureau of Investigation with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Elisa Dimas prosecuted the case.
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NDTX Round up: August 10-19Read the Press Release
GUILTY PLEA – WILLIAM DODD
On August 11, William Dodd, 34, pled guilty to possession with the intent to distribute a controlled substance and aiding and abetting. Dallas Police Department executed a search warrant and arrested Mr. Dodd at his Dallas-based stash house. Authorities seized 12.43 kilograms of marijuana, 5.67 grams of cocaine, 2.73 grams of N-ethylpentylone, 87 Norco pills containing hydrocodone bitartrate and acetaminophen, 65 Percocet pills, 141 grams of a red liquid containing codeine and promethazine, 33.69 grams of purple liquid containing codeine and promethazine, digital scales, multiple cellular phones, $4,530 in drug proceeds, and a stolen firearm. Mr. Dodd faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
SENTENCING – WILLIAM ROSS POTTER
On August 12, William Ross Potter, 62, was sentenced to 19 years in federal prison for attempted enticement of a minor. Mr. Potter admitted to using his computer to persuade and induce multiple minors to engage in sexual activity. He placed ads on a social media site in which he looking for a sexual encounter. When officers went to Potter’s home in Garland, he refused to come out of the house. Eventually, Mr. Potter fled out of the back of the home and hid in a bush until officers arrested him. This case was investigated by the Grand Prairie Police Department, Garland Police Department, Dallas Police Department, McClennan County Sherriff’s Office. Assistant U.S. Attorney Camille Sparks is prosecuting this case.
SENTENCING – PABLO SALGUERO RAMIREZ
On August 14, Pablo Salguero Ramirez, 31, was sentenced to 2 years in federal prison for possession with the intent to distribute a controlled substance. Officers executed a search warrant on Mr. Ramirez’s home and located methamphetamine, $1,252 in U.S. currency, multiple firearms and an assorted ammunition. Mr. Ramirez admitted that he possessed the weapons in furtherance of his drug crimes and the cash was proceeds from his drug trafficking operations. This case was investigated by the ICE and Garland Police Department. Assistant U.S. Attorney Donna Strittmatter Max is prosecuting this case.
SENTENCING – ARMANDO QUIROZ
On August 17, Armando Quiroz, 29, was sentenced to 12 years in federal prison for possession with the intent to distribute methamphetamine. Mr. Quiroz was staying at a Greenville, Texas hotel which served as a distribution point for his drug trafficking operations. Mr. Quiroz sold 7 grams of methamphetamine to a government source. Three days later the Hunt County Sheriff’s Department executed a search warrant on Mr. Quiroz’s hotel room where they recovered additional methamphetamine and a .380 pistol. This case was investigated by the ATF, DEA, and Hunt County Sheriff’s Office. Assistant U.S. Attorney Suzanna Etessam is prosecuting this case.
Muskogee Man Sentenced to 33 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David William Wilcox, age 48, of Muskogee, Oklahoma was sentenced to 33 months’ imprisonment, and 5 years of supervised release for Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3). While on supervised release, the defendant cannot reside with anyone under 18 years of age without prior approval and he must undergo sex offender treatment and comply with any requirements to monitor his progress, including polygraphs. The charges arose from an investigation by the Muskogee Police Department and the United States Marshals Service.
The Indictment alleged that from on or about October 21, 2018, until on or about September 16, 2019, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of North Dakota on or about January 27, 2014, for Felony Sexual Assault, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
United States Attorney Brian J. Kuester said, “Sex offender registration statutes protect the public by requiring sex offenders to properly notify the appropriate law enforcement agencies where they are residing. The United States Marshals Service and its local law enforcement partners play a vital role in public safety by enforcing these laws.”
“As part of our efforts to keep our communities safe, it is with great pride that the United States Marshals Service works alongside state, local and tribal law enforcement to ensure that convicted sex offenders comply with the requirements of the Sex Offender Registration and Notification Act” said, United States Marshal Kerry Pettingill.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
Monticello Man Charged with Arson of Minneapolis BankRead the Press Release
United States Attorney Erica H. MacDonald today announced a felony information charging ALEXANDER STEVEN HEIL, 24, with one count of conspiracy to commit arson. HEIL will make his initial appearance in U.S. District Court at a later date.
According to allegations in the information, on May 28, 2020, HEIL joined and engaged with other individuals in conduct designed to accelerate a fire in the Wells Fargo Bank building located in south Minneapolis.
The ATF and FBI urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or visit tips.fbi.gov.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
Assistant U.S. Attorney Andrew R. Winter is prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
ALEXANDER STEVEN HEIL, 24
Monticello, Minn.
Charges:
- Conspiracy to commit arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Attorney Erica H. MacDonald today announced a felony information charging ALEXANDER STEVEN HEIL, 24, with one count of conspiracy to commit arson. HEIL will make his initial appearance in U.S. District Court at a later date.
According to allegations in the information, on May 28, 2020, HEIL joined and engaged with other individuals in conduct designed to accelerate a fire in the Wells Fargo Bank building located in south Minneapolis.
The ATF and FBI urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or submit images or videos at FBI.gov/violence.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
Assistant U.S. Attorney Andrew R. Winter is prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
ALEXANDER STEVEN HEIL, 24
Monticello, Minn.
Charges:
- Conspiracy to commit arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Minnesota Man Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
A Minnesota man was charged in an indictment unsealed today for allegedly fraudulently obtaining approximately $841,000 from the Paycheck Protection Program (PPP).
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Erica H. MacDonald of the District of Minnesota, Acting Special Agent in Charge Aubree M. Schwartz of the FBI’s Minneapolis Field Office, Special Agent in Charge Kathy A. Enstrom of the IRS-Criminal Investigation (IRS-CI), Special Agent in Charge Justin R. Bundy of the FDIC’s Office of the Inspector General (FDIC-OIG), and Acting Special Agent in Charge Brian Sullivan of the Small Business Administration Office of Inspector General (SBA-OIG), Central Region made the announcement.
Kyle William Brenizer, 32, of St. Paul, Minnesota, was charged in a criminal indictment in the District of Minnesota with wire fraud and money laundering. He made his initial appearance this afternoon before U.S. Magistrate Judge Becky R. Thorson of the District of Minnesota and remains in custody. He will appear for a detention hearing on Aug. 26.
The indictment alleges Brenizer was the owner and manager of True-Cut Construction LLC (True-Cut), a contracting and construction company located in Brooklyn Park, Minnesota. In August 2018, True-Cut and Brenizer were ordered by the Minnesota Department of Labor and Industry to cease and desist from doing business and in December 2019, True-Cut’s contractor license expired and was never renewed.
Brenizer allegedly submitted a false and misleading PPP application in the name of True-Cut seeking approximately $841,000, but the application was denied. On May 12, 2020, Brenizer again submitted a false and misleading PPP application in the name of True-Cut seeking approximately $841,000 in PPP funds. This time, in order to conceal his involvement, Brenizer allegedly submitted the application under the name of another individual.
Brenizer falsely stated that True-Cut’s average monthly payroll was over $330,000 for approximately 30 employees. In addition, Brenizer falsely certified that he was not subject to any pending criminal charges even though he was allegedly named in multiple felony charges pending in the State of Minnesota for such charges as check forgery, identify theft, and theft by swindle. Due to these various misrepresentations and omissions, on May 13, 2020, Brenizer’s second application was approved, and he received $841,000 in PPP funds.
According to the allegations in the indictment, instead of using the PPP funds for permissible business expenses, Brenizer transferred approximately $650,000 to a bank account unrelated to True-Cut and made a $29,000 payment to purchase a Harley-Davidson motorcycle, spent over $1,000 on golf expenses, among other retail and entertainment expenditures for his personal benefit.
The CARES Act is a federal law enacted March 29. 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 1 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 businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The FBI, IRS-CI, FDIC-OIG and SBA-OIG investigated the case. Assistant Chief L. Rush Atkinson of the Department of Justice’s Criminal Division’s Fraud Section and Assistant U.S. Attorneys Matthew S. Ebert and Allison K. Ethen of the U.S. Attorney’s Office for the District of Minnesota are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Minneapolis Man Charged with Being an Armed Career Criminal in Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging GAGE ANTHONY NORRIS, 25, with one count of possession of a firearm by a convicted felon. NORRIS made his initial appearance yesterday before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota. NORRIS was ordered to remain in custody pending a formal detention and arraignment hearing, which is scheduled for Tuesday, August 25, 2020.
According to allegations in the indictment, on May 15, 2020, NORRIS possessed a Sun City Machinery Co. Stevens 320 12 gauge shotgun. Because NORRIS has prior felony convictions in Ramsey County and Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Lauren O. Roso is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
GAGE ANTHONY NORRIS, 25
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm- Armed career criminal, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Sentenced to 4 Years in Federal Prison for Trafficking Drugs from Arizona to ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN CARLOS GONZALEZ-RUBIO, 41, a citizen of Mexico last residing in Phoenix, Arizona, was sentenced today by U.S. District Judge Victor A. Bolden to 48 months of imprisonment for trafficking narcotics into Connecticut.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in late 2018, the Drug Enforcement Administration’s New Haven Task Force and New Haven Police Department began investigation an organization that was responsible for trafficking kilogram-quantities of heroin, fentanyl and cocaine from Mexico and Arizona to the New Haven area. Investigators subsequently identified Gonzalez-Rubio and an associate as being responsible for moving narcotics from Arizona to Connecticut. Between March and May 2019, investigators intercepted three packages – two that contained approximately one kilogram of cocaine, and one that contained approximately one kilogram of a mixture of heroin and fentanyl – that Gonzalez-Rubio and his associate had shipped from Arizona to New Haven. The investigation revealed that Gonzalez-Rubio and his associate trafficked narcotics both through the use of commercial shipping methods, like UPS and FedEx, and by secreting drugs in cars with hidden compartments that were transported on commercial car-haulers.
In August 2019, an undercover officer met with Gonzalez-Rubio in Arizona in an attempt to arrange the transport of purported narcotics. Gonzalez-Rubio indicated that he was preparing a trip to the northeast, that planned to use a used car on a car-hauler to transport the drugs, and that he would charge approximately $2,000 per kilogram to ship the drugs. On October 1, 2019, the undercover officer provided Gonzalez-Rubio with what Gonzalez-Rubio believed was five kilograms of fentanyl. The five kilograms were actually a “mock load” disguised to resemble an illicit shipment of narcotics.
On October 13, 2019, the car-hauler arrived in Connecticut. Gonzalez-Rubio was arrested on that date after he drove the car containing the mock load of narcotics to a location in East Haven.
Gonzalez-Rubio has been detained since his arrest. On February 25, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with the intent to distribute, heroin, fentanyl and cocaine.
Gonzalez-Rubio, who has been deported previously to Mexico and returned to the U.S., faces immigration proceedings at the conclusion of his sentence.
This matter is being investigated by the DEA Task Force and the New Haven Police Department, with the assistance of the DEA in Tucson and Phoenix, and Homeland Security Investigations (HSI) in New Haven and Tucson. This case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Rahul Kale.
Memphis, Tennessee Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Juan Carlos Cervantes-Ramirez, age 36, of Memphis, Tennessee entered a guilty plea to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both. Mr. Cervantes-Ramirez is in the United States on a resident alien card and is subject to deportation as a result of this offense.
The Indictment alleged that on or about July 3, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States at the change of plea hearing.
Mechanicsburg Man Sentenced for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rene Roy, age 51, of Mechanicsburg, Pennsylvania, was sentenced on August 19, 2020, by Chief United States District Court Judge John Jones to one day in prison and two years of supervised release, for committing bank fraud related to fraudulent records he submitted to a credit union for auto loans.
According to United States Attorney David J. Freed, Roy submitted an application to a Belco Community Credit Union for an auto loan and submitted falsified documents to get a lower interest rate, causing a loss to the credit union.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
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Mason City Man to Prison for Federal Meth ConvictionRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 21, 2020 to more than 11 years in federal prison.
Jacob Johnson, age 30, from Mason City, Iowa, pled guilty on March 17, 2020, to one count of conspiracy to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
At the plea and sentencing hearings, evidence showed that from about May 2019 through October 2019, Johnson and others conspired to distribute at least 35 grams of actual (pure) methamphetamine in Northwest Iowa. In June 2019, Johnson and a co-conspirator sold “fake” methamphetamine to an individual. In October 2019, Johnson and a co-conspirator agreed to sell more methamphetamine to the same individual and make good on the previous transaction. After a vehicle pursuit, Johnson and his co-conspirator were caught with two ounces of methamphetamine intended for the same individual. Officers also seized a sawed off shotgun and an axe during a search of the vehicle.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Johnson was sentenced to 140 months’ imprisonment and must serve a term of 4 years of supervised release following the imprisonment. There is no parole in the federal system. Johnson remains in custody of the United States Marshal Service until he can be transferred to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Dickinson County Sheriff’s Office, Arnold’s Park Police Department, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4079.
Follow us on Twitter @USAO_NDIA.
Man Convicted of Methamphetamine and Cocaine ConspiracyRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Dover, North Carolina man yesterday on charges of conspiracy to distribute and possess with the intent to distribute fifty grams of more of methamphetamine and a quantity of cocaine, as well as, possession with the intent to distribute fifty grams or more of methamphetamine and a quantity of heroin.
According to court records and evidence presented at trial, Terrence Denon Miller, a/k/a “Wank,” 30, was previously convicted in 2016 of felony possession with intent to sell and deliver schedule II-cocaine, attempted trafficking in opium or heroin, and possession with intent to sell and deliver schedule II-oxycodone in a Craven County, North Carolina Superior Court. Based upon these convictions, Miller was placed on state probation, including electronic monitoring.
On April 6, 2018, the North Carolina Department of Public Safety: Adult Probation and Parole conducted a probationary search at the defendant’s home in La Grange, North Carolina. During the search, the probation officer requested assistance from the Lenoir County Sheriff’s Office and a Drug Enforcement Administration Task Force Officer. Upon seeing law enforcement enter his home, Miller attempted to run towards the kitchen. Narco, a canine with the Lenoir County Sheriff’s Office, alerted to the presence of drugs in the home. Officers seized over 80 grams of crystal methamphetamine, a quantity amount of heroin, and two digital scales in the kitchen. Marijuana, a marijuana grinder, and a magazine to a gun loaded with ammunition were located in the master bedroom and bathroom. The DEA Lab analyzed the methamphetamine and determined it had a 95% purity.
During the trial, there was testimony that the defendant’s previous home in Dover, North Carolina had been searched by the Craven County Sheriff’s Office in 2014 where officers at that time seized oxycodone pills, cocaine base (crack), and over $4,000. In 2016, the Duplin County Sheriff’s Office surveilled Miller while he met with individuals at a business in Duplin County known for drug trafficking.
Miller faces a mandatory minimum of 10 years and a maximum penalty of life in prison when sentenced in November 2020. Additionally, the court ordered Miller to forfeit a 2007 Mercedes Benz Coupe.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Drug Enforcement Administration, Lenoir County Sheriff’s Office, Craven County Sheriff’s Office, Duplin County Sheriff’s Office, Wayne County Sheriff’s Office, North Carolina Department of Public Safety: Adult Probation and Parole investigated the case and Assistant U.S. Attorney Dena J. King is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:18-cr-00054-FL-1.
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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.
Kodiak Fisherman to Plead Guilty to Federal Charges for Falsifying Fishing RecordsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that James Aaron Stevens, 46, of Kodiak, will plead guilty to one count of false labeling, a Lacey Act violation, for knowingly submitting false records concerning the locations and regulatory areas where fish were harvested.
According to admissions made in connection with the plea, Stevens, the owner and operator of F/V Alaskan Star and F/V Southern Seas out of Kodiak, falsely reported individual fishing quota (IFQ) halibut and IFQ sablefish between 2014 and 2017. Specifically, Stevens knowingly falsified International Pacific Halibut Commission (IPHC) logbooks, Daily Fishing Logbooks, Alaska Department of Fish and Game fish tickets, and landing reports to show that fishing gear had been deployed in areas where the vessels did not fish, and omitted areas in which the fish were actually harvested. In addition to his falsified logbooks, the investigation further revealed that Stevens maintained the accurate fishing information in a separate, personal log.
Over the course of 26 fishing trips, Stevens falsified records related to approximately 903,208 pounds of falsely reported halibut and sablefish, with an approximate dock value of $4,522,210 and a market value of $13,566,630. Stevens sold the falsely labeled fish caught during these trips, which were, or were intended to be, transported in interstate and foreign commerce.
As part of the plea, and in addition to a term of imprisonment, Stevens agreed to pay a substantial fine before sentencing; to comply with vessel monitoring as part of his conditions of supervised release; and to make a public service announcement acknowledging his wrongdoing, to be submitted to the National Fisherman Magazine.
NOAA’s Office of Law Enforcement conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander of the U.S. Attorney’s Office for the District of Alaska.
Kansas Hunting Guide Sentenced for Violating Migratory Bird Act During Hunt in Barton CountyRead the Press Release
WICHITA, KAN. – A Kansas guide is losing his hunting privileges for three years because he violated the Migratory Bird Treaty Act, U.S. Attorney Stephen McAllister said today.
Bryan D. Boxberger, 33, Stafford, Kan., pleaded guilty today in federal court in Wichita to violating the act. In his plea, Boxberger admitted he acted as a waterfowl guide to a party of 13 hunters in Barton County, Kan. With Boxberger’s assistance, the hunters killed 31 white-fronted geese, violating a daily bag limit of two per person.
Boxberger was sentenced to three years on probation, during which he is prohibited from hunting and fishing or acting as a guide. In addition, he was ordered to pay a $2,500 fine directed to the North American Wetlands Conservation Fund and $10,000 in restitution directed to the Kansas Department of Wildlife, Parks and Tourism-Law Enforcement Division Restitution Fund.
McAllister commended the Kansas Department of Wildlife, Parks and Tourism, the U.S. Fish and Wildlife Service and Assistant U.S. Attorney Matt Treaster for their work on the case.
Jury Convicts Federal Inmate of AssaultRead the Press Release
SPRINGFIELD, Mo. – An inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, has been convicted by a federal jury of assaulting another inmate at the facility.
Earl F. Love, 55, was found guilty of one count of assault causing serious bodily injury.
Evidence introduced during the trial indicated that Love walked into the cell of another inmate, identified in court documents as “D.W.,” on Dec. 30, 2018. Love and the victim were in an argument over a sports gambling bet. Love struck D.W., fractured his nose and other bones in his face, and knocked him unconscious. Afterward, the victim requested medical assistance and was transported by ambulance to the emergency room. D.W. was admitted to the hospital and spent several days in the Intensive Care Unit.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for three hours before returning the guilty verdict to U.S. District Judge Roseann Ketchmark on Tuesday, Aug. 18, ending a trial that began Monday, Aug. 17.
Under federal statutes, Love is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 17 was:
Jarod Barton Schwab, 33, of Missoula, on charges of possession with intent to distribute controlled substances and distribution of methamphetamine. If convicted of the most serious crime, Schwab faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Schwab was detained pending further proceedings. The FBI, Missoula Police Department and Northwest Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 20-34.
Appearing on Aug. 20 was:
Krystal Ann Bouldin, 47, of Missoula, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Bouldin faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Bouldin was released pending further proceedings. The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-33.
Dylan Cole Martin, 23, of Bozeman, on charges of conspiracy to distribute fentanyl and distribution of fentanyl. If convicted of the most serious crime, Martin faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Martin was released pending further proceedings. The Missouri River Drug Task Force, Montana Department of Criminal Investigation, FBI and Drug Enforcement Administration investigated the case. Pacer case reference. 20-17.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 20 was:
Donald Ray Gardner, 57, of Lodge Grass, on charges of aggravated sexual abuse of a child and abusive sexual contact. If convicted of the most serious crime, Gardner faces a maximum life in prison, a $250,000 fine and five years to life of supervised release. Gardner was released pending further proceedings. The FBI investigated the case. Pacer case reference. 20-70.
Darrell Dean Fisher, 35, of Lame Deer, on charges of assault resulting in serious bodily injury of a dating partner and strangulation. If convicted of the most serious crime, Fisher faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Fisher was released pending further proceedings. The FBI investigated the case. Pacer case reference. 20-71.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictments Charge Six Men with Narcotics Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced the unsealing of two indictments charging a total of six men with narcotics trafficking offenses.
On August 12, 2020, a federal grand jury in New Haven returned a seven-count superseding indictment charging the following five men with conspiring to distribute fentanyl, heroin and crack cocaine:
WILTON REYNOSO, also known as Manuel Jose Echevarria-Lugo, 49, a citizen of the Dominican Republic residing in Waterbury
TYSON QUINONES, also known as “Ty,” 34, of Waterbury
DEESHAWN PITTMAN, also known as “Low,” 30, of New Haven
QUENTINE DAVIS, 29 of New Haven
GLEN REDMOND, 55, of Springfield, MassachusettsAs alleged in court documents and statements made in court, in late 2019, the DEA New Haven Task Force began an investigation into the distribution of heroin and fentanyl in New Haven. The investigation, which included thousands of intercepted communications over court-authorized wiretaps, revealed that Pittman, Davis and others were distributing fentanyl, heroin and crack cocaine to a large customer base in New Haven County. Pittman was supplied with fentanyl and heroin by Quinones, who also distributed narcotics to his own customers in and around Waterbury. Quinones and Redmond were supplied with fentanyl and heroin from Reynoso, who received large quantities of fentanyl and heroin from a source in New York.
On June 13, 2020, investigators sought to arrest Reynoso, Quinones and Pittman after intercepting a series of calls that, as alleged, indicated that Reynoso and Quinones were planning to conduct a 200-gram heroin transaction, with a portion of the drugs possibly destined for Pittman. On that date, Pittman was arrested at his residence, a search of which revealed approximately 50 grams of a mixture fentanyl and heroin, and more than $15,000 in cash. Quinones was arrested at the anticipated meeting place. A subsequent search of his residence revealed a stolen, loaded 9mm pistol. Reynoso fled from the meeting scene in his vehicle, which was found abandoned nearby. He was arrested a short time later after he returned to the vehicle. A search of a location in Waterbury that Reynoso used to store, process and package narcotics revealed more than kilogram of a mixture of fentanyl and heroin.
Reynoso, Quinones and Pittman were originally charged by indictment on June 17. Davis and Redmond were arrested earlier this week after the superseding indictment was returned.
Each defendant is charged with one count of conspiracy to distribute, and to possess with intent to distribute fentanyl, heroin and cocaine base (“crack”). If convicted of this charge, based on the type and quantity of drugs attributable to each defendant, Reynoso, Quinones and Pittman face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Davis and Redmond face a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
The superseding indictment also charges Reynoso and Pittman with additional fentanyl distribution offenses, and Reynoso with possession of a firearm by a convicted felon.
Reynoso, Quinones and Davis are detained, and Pittman and Redmond are released on bond.
On August 12, the grand jury also returned a three-count indictment charging Quinones and NORMAN ALEXIS GALLARDO, 36, of Meriden, with conspiring to distribute cocaine between February and June 2020. Quinones and Gallardo are each charged with one count of conspiracy to distribute, and to possess with intent to distribute, 500 grams or more of cocaine, and two counts of attempt to possess with intent to distribute 500 grams or more of cocaine.
If convicted of these charges, Quinones and Gallardo each faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, on each count.
Gallardo was arrested out of state and is in custody awaiting transport to Connecticut to face these charges.
U.S. Attorney Durham noted that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA New Haven Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and John T. Pierpont, Jr.
Idaho Man Charged with Importation and Distribution of FentanylRead the Press Release
BOISE – Dakota James Hoffman, 28, of Bellevue, Idaho, was indicted on July 14, 2020, by a federal grand jury sitting in Boise for importation and distribution of fentanyl, U.S. Attorney Bart M. Davis announced today.
The indictment alleges that on March 15, 2020, Hoffman imported fentanyl into the United States and further distributed it within the District of Idaho.
The charges of importation of fentanyl and distribution of fentanyl are each punishable by up to 20 years in federal prison, a maximum fine of $1,000,000, and up to three years of supervised release.
Hoffman was arrested on August 14, 2020, in the Northern District of California. He initially appeared there and was ordered to appear on September 3, 2020, in the District of Idaho where he will be formally arraigned on the indictment and a trial date will be set. Further proceedings will take place before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the Blaine County Sheriff’s Office and the Drug Enforcement Administration.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Harrisburg Law Firm Pays $53,295 to Reimburse Medicare ProgramRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Angino Law Firm, P.C., has agreed to pay the United States $53,295 to resolve liability under the Medicare Secondary Payer Statue (MSPS).
Enacted in 1980, the Medicare Secondary Payer Statue requires insurers to make the primary payment for services rendered by Medicare beneficiaries, leaving the Medicare program to provide benefits as a secondary payer. Under the MSPS, Medicare may make conditional payments for a beneficiary’s care, then seek reimbursement from a primary source such as a primary insurance company. The MSPS permits Medicare to seek reimbursement directly from a primary insurance company or another person, such as the Medicare beneficiary or the beneficiary’s attorney, who received payment from the primary insurer but does not remit the payment to Medicare.
According to U.S. Attorney David J. Freed, the Angino Law Firm represented a Medicare beneficiary, “the client,” in a state medical malpractice claim against Bloomfield Pharmacy, Inc. and Bio-Medical Applications of Pennsylvania, Inc., alleging that the pharmacies had dispensed an incorrect drug to the client. In 2011, Medicare conditionally paid approximately $84,353 for the client’s medical care. The Angino Law Firm settled the state medical malpractice claim in 2014 and received payment on behalf of the pharmacies. Under the Medicare Secondary Payer Statute, the Angino Law Firm was required to repay $53,295 to the Medicare Program. Because the Angino Law Firm refused to repay the Medicare Program, the United States filed suit to recover the money owed to the Government in July 2017.
After extension litigation in the district court, the parties agreed to amicably resolve the matter. Under the terms of the settlement, the Angino Law Firm paid the United States $19,545.15 and Bio-Medical Applications of Pennsylvania paid the Government $33,750, which had been set aside in escrow from the state medical malpractice settlement. The settlement agreement is not an admission of liability by any of the parties, but it does result in the Medicare Program being reimbursed the funds it expended for the client’s treatment.
“Medicare benefits are a vital lifeline for thousands of citizens in the Middle District of Pennsylvania,” said U.S. Attorney Freed. “Our Affirmative Civil Enforcement Unit is focused on making sure that such funds are appropriately billed and spent, and recovered when the situation requires. The health of our Medicare beneficiaries is far too important for our office to stand on the sidelines.”
This matter was litigated by the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office and is assigned to Assistant U.S. Attorney D. Brian Simpson. The Office of General Counsel, U.S. Department of Health and Human Services, also assisted in this case. The case is docketed as U.S. v. Richard C. Angino.et al., Civ. No. 3:17-1193 (M.D. Pa.).
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Grant County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Timothy Elliot Wheeler, of Petersburg, West Virginia, was sentenced to 60 months of incarceration for a firearms violation, U.S. Attorney Bill Powell announced.
Wheeler, age 29, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Crime” in November 2019. Wheeler admitted to having a 9mm pistol during a drug trafficking crime in March 2019 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Grant County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Grant County Man Sentenced to 132 Months for Transporting Child PornographyRead the Press Release
COVINGTON, KY- A Cornith, Ky., man, Robert Stanton Sexton, 28, was sentenced in federal court on Friday to 132 months in prison, by U.S. District Judge David Bunning, for transporting child pornography.
According to his guilty plea agreement, on October 3, 2018, Sexton admitted to using his Tumblr account to upload approximately seven video files depicting prepubescent children engaged in sexually explicit conduct. Law enforcement interviewed Sexton at his home and he admitted to viewing, downloading, and transporting child pornography. Sexton further admitted that his cell phone contained child pornography, including approximately 20 nude images of a minor girl, with whom he had been exchanging text messages. He also admitted to sending nude images of himself to an additional minor girl, via text messages.
Sexton pleaded guilty in May 2020.
Under federal law, Sexton must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 25 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI); and Commissioner Rodney Brewer, Kentucky State Police, jointly made the announcement.
The investigation was directed by Homeland Security Investigations and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Wade Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Grand Jury Indicts Man on Carjacking and Firearm Charges for Allegedly Stealing Vehicle at Gunpoint in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly stealing a vehicle at gunpoint in Chicago last month.
On the afternoon of July 28, 2020, MICHAEL C. PEARSON forcibly took a 2006 Buick Lucerne from two victims in the Uptown neighborhood of Chicago, according to an indictment returned Thursday in U.S. District Court in Chicago. Pearson discharged a handgun during the carjacking, the indictment states. Neither victim was wounded.
The indictment charges Pearson, 18, of Chicago, with one count of carjacking and one count of discharging a firearm during a crime of violence. He is currently in law enforcement custody. Arraignment on the federal charges has not yet been scheduled.
The firearm charge carries a maximum sentence of life in federal prison, while the carjacking charge is punishably by up to 15 years.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges. The government is represented by Assistant U.S. Attorney Albert Berry III.
“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney Lausch. “Our office is committed to working closely with the FBI, CPD, and other law enforcement partners to pursue and prosecute violent offenders. The carjacking and gun charges announced today are the direct result of that strong partnership.”
“This indictment proves that Operation Legend is working, and is successfully getting violent criminals off the streets of our city,” said FBI SAC Buie. “The FBI and CPD Vehicular Hijacking Taskforce, along with our partners at the U.S. Attorney's Office, will continue to bring justice to those that commit these intolerable violent crimes.”
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses. Since the operation’s launch in Chicago on July 22, 2020, more than 60 defendants have been charged in cases alleging federal felony offenses relating to violent crime affecting the city of Chicago. Those cases include more than 30 defendants facing a lead firearms-related charge.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Grand Jury - August 2020Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 9 unsealed Indictments charging 9 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jason L. Bates, age 48, of Omaha, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on July 18, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, life term of supervised release, and a $100 special assessment.
* Michael C. Becker, age 23, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with receipt of child pornography beginning on or about August 12, 2018. The maximum possible penalty is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count II charges the defendant with possession of child pornography beginning on or about August 14, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment and $5,000 additional special assessment.
* Edward Charles Cress, age 33, of Grand Island, Nebraska, is charged with possession of child pornography beginning on or about May 23, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment and $17,000 additional special assessment.
* Hector Esparza-Varela, age 40, is charged with illegal reentry after deportation following a felony conviction on or about August 18, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* David Felipe Martin, a/k/a Alejandro Rodriguez, age 36, is charged with illegal reentry after deportation on or about August 17, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Victor Lopez-Gutierrez, age 36, is charged with illegal reentry after deportation on or about August 10, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Cayla Pritchard, age 35, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with conspiracy to distribute and possession with intent to deliver 28 grams or more of crack cocaine on June 15, 2020 and continuing to on or about June 26, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 28 grams or more of crack cocaine on June 26, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment.
* Bernavel Rodas-Lopez, age 51, is charged with illegal reentry after deportation on or about July 30, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Carlos Armando Zazueta-Arrellano, age 28, is charged with illegal reentry after deportation following a felony conviction on or about July 10, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Government obtains more than $5 million in judgments to resolve healthcare fraud allegations against Georgia chiropractor, practiceRead the Press Release
BRUNSWICK, GA: A Brunswick, Ga. chiropractor and her medical practice have been ordered to pay more than $5 million to resolve a civil fraud complaint filed by the federal government.
The judgment, approved by the U.S. District Court for the Southern District of Georgia, awards the United States more than $4.3 million against Brunswick-based Heller Family Medicine, LLC and $700,000 against its owner, Dr. Jennifer Heller, D.C., a Brunswick chiropractor, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“There is no room in healthcare for medical practices to game the system to collect money that should go to providers performing legitimate procedures,” said U.S. Attorney Christine. “This office is committed to using all available tools to investigate anyone who defrauds federally funded health care programs.”
According to court documents, the United States alleges that Dr. Heller and her medical practice violated the False Claims Act by submitting claims to the Medicare Program for hundreds of surgical procedures involving implantable neurostimulators, when in actuality the practice used an acupuncture device commonly referred to as a “P-Stim.” The “P-Stim” device provides stimulation by electrical impulses when affixed with an adhesive behind a patient’s ear.
While Medicare pays thousands of dollars for the surgical neurostimulator procedure, it does not cover acupuncture services. In court documents, the United States alleged the medical practice falsely certified that they were performing the surgical procedure, rather than using the acupuncture device. In total, Medicare paid Dr. Heller’s medical practice more than $1.4 million for the false claims during a two-year period.
“Falsely submitting claims for non-covered services and thereby bilking Medicare out of more than a million dollars is inexcusable,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Together with our law enforcement partners, we will continue the fight to safeguard the Medicare Trust Fund.”
U.S. Attorney Christine commended Dr. Heller for working with federal authorities after being approached with this investigation. The investigation into others involved in this scheme remains ongoing.
U.S. Attorney Christine lauded the hard work of the investigative team, which was led by Special Agent David Graupner of the Department of Health and Human Services Office of Inspector General and Investigative Analyst Charles Sikes of the U.S. Attorney’s Office. The United States was represented by Assistant U.S. Attorneys Patrick J. Schwedler and Jonathan A. Porter.
Georgia Man Sentenced for Illegal Firearms PossessionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 19, 2020, Jemel Xavier Williams, age 37, of Macon, Georgia, was sentenced to 92 months’ imprisonment by U.S. District Court Judge Christopher C. Conner for being a previously convicted felon in possession of firearms.
According to United States Attorney David J. Freed, on February 15, 2017, in Franklin County, Williams was found to be in possession of a Glock 19, 9mm and a Glock 36, .45 caliber firearms as a previously convicted felon.
The case was investigated by the Pennsylvania State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
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Georgia Man Pleads Guilty to Conspiracy Charges for Defrauding the North and South Carolina Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. – Markuetric Stringfellow, 37, of Powder Springs, Georgia, appeared in court today and pleaded guilty to federal conspiracy charges filed in the U.S. District Courts in North and South Carolina, for defrauding the states’ Medicaid programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina, and U.S. Attorney Peter M. McCoy, Jr., of the U.S. Attorney’s Office for the District of South Carolina. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
The North Carolina Scheme
According to filed plea documents and today’s plea hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina, among others. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.
According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H, and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.
In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.
The South Carolina Scheme
In addition to executing a fraudulent scheme in North Carolina, Stringfellow has admitted to defrauding the South Carolina Medicaid program. According to the bill of information and documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid.
Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement. According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Stringfellow pleaded guilty today to two counts of conspiracy to commit Medicaid fraud. The South Carolina case will be transferred to the U.S. District Court for the Western District of North Carolina. Each conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. A sentencing date for Stringfellow has not been set.
In making today’s announcement U.S. Attorney Murray and U.S. Attorney McCoy commended the investigative work of the FBI field offices in Charlotte, Columbia and Atlanta, and the Medicaid Investigation Divisions in Raleigh, Columbia and Atlanta, and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.
Assistant U.S. Attorneys Michael Savage in Charlotte and Brook Andrews in Columbia are prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Georgia Man Pleads Guilty to Conspiracy Charges for Defrauding the North and South Carolina Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. – Markuetric Stringfellow, 37, of Powder Springs, Georgia, appeared in court today and pleaded guilty to federal conspiracy charges filed in the U.S. District Courts in North and South Carolina, for defrauding the states’ Medicaid programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina, and U.S. Attorney Peter M. McCoy, of the U.S. Attorney’s Office for the District of South Carolina. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
The North Carolina Scheme
According to filed plea documents and today’s plea hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina, among others. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.
According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H, and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.
In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.
The South Carolina Scheme
In addition to executing a fraudulent scheme in North Carolina, Stringfellow has admitted to defrauding the South Carolina Medicaid program. According to the bill of information and documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid.
Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement. According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Stringfellow pleaded guilty today to two counts of conspiracy to commit Medicaid fraud. The South Carolina case will be transferred to the U.S. District Court for the Western District of North Carolina. Each conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. A sentencing date for Stringfellow has not been set.
In making today’s announcement U.S. Attorney Murray and U.S. Attorney McCoy commended the investigative work of the FBI field offices in Charlotte, Columbia and Atlanta, and the Medicaid Investigation Divisions in Raleigh, Columbia and Atlanta, and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.
Assistant U.S. Attorneys Michael Savage in Charlotte and Brook Andrews in Columbia are prosecuting the case.
Former Queens Cardiologist Settles Civil Fraud AllegationsRead the Press Release
Ghanshyam Bhambhani, a former Queens cardiologist, will pay a total of $2 million to settle civil claims that he paid kickbacks to other physicians for referrals of patients insured by Medicare, Medicaid and the Federal Employees’ Health Benefits Program. Under the terms of the settlement, Bhambhani will pay the United States $1,370,294.50. In addition, he will pay the State of New York $629,705.50.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General for the Office of Personnel Management (OPM-OIG), announced the settlement.
An investigation by the Office, the FBI and OPM-OIG revealed that, from 2010 through 2017, Bhambhani paid other doctors compensation disguised as rent for patient referrals in violation of the Anti-Kickback Statute and the False Claims Act. The investigation also revealed that Bhambhani falsified records to justify cardiac procedures. Bhambhani admitted engaging in this conduct and has agreed to cooperate with the Government.
“Paying kickbacks for patient referrals erodes the integrity of our healthcare system and costs taxpayers precious dollars. Doctors must put patients first, not treat them like commodities unscrupulously paid for with government funds,” stated Acting United States Attorney DuCharme. Mr. DuCharme expressed his grateful appreciation to the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the New York State Attorney General for their assistance with the case.
“The OPM-OIG has zero tolerance for fraud against the Federal Employees Health Benefits Program (FEHBP). Submitting false claims for services that are not medically necessary and creating false documentation to justify procedure undermines the FEHBP, wastes taxpayer dollars, and increases the cost of medical care for us all,” stated OPM-OIG Deputy Inspector General Vint. “This settlement is a result of the hard work of our investigative staff and our partners at the U.S. Attorney’s Office, EDNY, FBI, HHS OIG, and the New York State Attorney General’s office.”
The agreement resolves a lawsuit originally brought by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, captioned United States ex rel. FNU LNU LLC v. New York Cardiology P.C., et al., Civil No. 14-4581 (EDNY). The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery.
In 2018, Bhambhani surrendered his medical license after pleading guilty in the Eastern District of New York to one count of conspiracy to pay healthcare kickbacks. He was sentenced to 34 months in prison, three years’ supervised release and ordered to pay $217,364.83 in criminal restitution and $1,080,000 in criminal forfeiture.
The government’s case was handled by Assistant U.S. Attorney Lisa Kutlin of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
Former Employee Pleads Guilty to Stealing Company Property and Selling It on EbayRead the Press Release
GRAND RAPIDS, MICHIGAN - Laura Arlene Barnett, 53, of Allegan, Michigan, pleaded guilty to the interstate transportation of stolen property, U.S. Attorney Andrew Birge announced today. The sentencing before Chief U.S. District Judge Robert J. Jonker is scheduled for November 30, 2020. At sentencing, Barnett will face up to 10 years’ mprisonment. As partof her plea agreement, Barnett agreed to pay restitution of $413,903.38 to repay her employer for the parts and supplies that she stole.
Barnett was an employee of Perrigo, a global consumer self-care company that manufactures over-the-counter and branded products. Barnett worked as a Maintenance Repair and Operations Coordinator in Perrigo’s Allegan maintenance department. She was responsible for ordering and processing parts used in the manufacturing facilities. Barnett used her position to gain access to equipment, parts, and supplies that the company used to operate packing machinery. She stole more than 470 items of equipment, parts, and supplies worth approximately $413,903.38 and sold the items on eBay.
This case was investigated by the FBI and the Allegan County Sheriff’s Office, and prosecuted by Assistant United States Attorney Daniel Mekaru. Perrigo has fully cooperated throughout the process.
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Former Army Special Forces Officer Charged in Russian Espionage ConspiracyRead the Press Release
A Gainesville, Virginia, man was arrested today for conspiring with Russian intelligence operatives to provide them with United States national defense information.
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 45, a former member of the U.S. Army, allegedly conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Two espionage arrests in the past week — Ma in Hawaii and now Debbins in Virginia — demonstrate that we must remain vigilant against espionage from our two most malicious adversaries — Russia and China,” said John C. Demers, Assistant Attorney General for National Security. “Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy. Our country put its highest trust in this defendant, and he took that trust and weaponized it against the United States.”
“Our military is tasked with the awesome responsibility of protecting our nation from its adversaries, and its service members make incredible sacrifices in service of that duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “When service members collude to provide classified information to our foreign adversaries, they betray the oaths they swore to their country and their fellow service members. As this indictment reflects, we will be steadfast and dogged in holding such individuals accountable.”
"The facts alleged in this case are a shocking betrayal by a former Army officer of his fellow soldiers and his country," said Alan E. Kohler, Jr., FBI Assistant Director of the Counterintelligence Division. "Debbins is accused of giving Russian intelligence officers sensitive information about the units in which he once served and also providing the names of other service members so Russia could try to recruit them. These actions cannot stand and the FBI will aggressively pursue such cases."
“According to the allegations, Mr. Debbins knowingly provided information to self-proclaimed members of Russia's Intelligence Service, the GRU,” said James A. Dawson, Acting Assistant Director in Charge of the FBI Washington Field Office. “As a member of the U.S. Armed Forces, the American people and his fellow service men and women should have been able to trust Debbins with secrets and information. Debbins allegedly fell very short of that and exploited his role in the military and his fellow service members to benefit one of our top adversaries for years. Today’s charges are another example of the dedicated and unrelenting efforts of the FBI and our partners, domestic and international, to aggressively pursue and bring to justice those who violate this sacred trust and place our national security at risk.”
Over the course of the conspiracy, Debbins allegedly provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
Debbins is charged with conspiring to provide United States national defense information to agents of a foreign government. If convicted, Debbins faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
John C. Demers, Assistant Attorney General for National Security; G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Acting Assistant Director of FBI Washington Field Office made the announcement. Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Assistant Attorney General Demers and U.S. Attorney Terwilliger greatly appreciate the assistance of the FBI’s Minneapolis Field Office, and Army Counterintelligence, along with the United Kingdom's Metropolitan Police and MI5.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former Army Green Beret Charged in Russian Espionage ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former Army Green Beret was arrested today for allegedly conspiring with Russian intelligence operatives to provide them with United States national defense information.
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 45, of Gainesville, a former member of the U.S. Army, allegedly conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Our military is tasked with the awesome responsibility of protecting our nation from its adversaries, and its service members make incredible sacrifices in service of that duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “When service members collude to provide classified information to our foreign adversaries, they betray the oaths they swore to their country and their fellow service members. As this indictment reflects, we will be steadfast and dogged in holding such individuals accountable.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents allegedly encouraged him to join and pursue a career in the Special Forces, which he did, where he served at the rank of Captain.
“Two espionage arrests in the past week – Ma in Hawaii and now Debbins in Virginia – demonstrate that we must remain vigilant against espionage from our two most malicious adversaries – Russia and China,” said John C. Demers, Assistant Attorney General for National Security. “Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy. Our country put its highest trust in this defendant, and he took that trust and weaponized it against the United States.”
Over the course of the conspiracy, Debbins allegedly provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, a number of his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
“According to the allegations, Mr. Debbins knowingly provided information to self-proclaimed members of Russia's Intelligence Service, the GRU,” said James A. Dawson, Acting Assistant Director in Charge of the FBI Washington Field Office. “As a member of the U.S. Armed Forces, the American people and his fellow service men and women should have been able to trust Debbins with secrets and information. Debbins allegedly fell very short of that and exploited his role in the military and his fellow service members to benefit one of our top adversaries for years. Today’s charges are another example of the dedicated and unrelenting efforts of the FBI and our partners, domestic and international, to aggressively pursue and bring to justice those who violate this sacred trust and place our national security at risk.”
“The facts alleged in this case are a shocking betrayal by a former Army officer of his fellow soldiers and his country,” said Alan E. Kohler, Jr., FBI Assistant Director of the Counterintelligence Division. “Debbins is accused of giving Russian intelligence officers sensitive information about the units in which he once served and also providing the names of other service members so Russia could try to recruit them. These actions cannot stand and the FBI will aggressively pursue such cases.”
Debbins is charged with conspiring to provide United States national defense information to agents of a foreign government. If convicted, Debbins faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
U.S. Attorney Terwilliger and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service, and MI5.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-193.
Fmr. Dallas Police Officer Pleads Guilty to Possession of ‘Sadistic’ Child PornRead the Press Release
An ex-Dallas police officer has pleaded guilty to possessing sexually explicit images of little girls, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daniel Lee Collins, a 35-year-old former senior corporal, pleaded guilty to possession of child pornography before U.S. Magistrate Judge Jeffrey Cureton Friday morning.
According to plea papers, Mr. Collins admitted he accessed child pornography via his Google email account in spring 2020.
Mr. Collins further admitted he knew the images depicted actual minors, including a nude prepubescent female, and portrayed “sadistic or masochistic conduct.” He also acknowledged that on one occasion, he knowingly distributed a file containing sexually explicit images of a child.
According to a criminal complaint filed in July, the investigation was triggered when Google detected sexually explicit images uploaded to Mr. Collin’s Google account via the City of Dallas’ internet network.
Google flagged the images – one uploaded on May 13 to an account tagged “Dan Collins” and two more uploaded on June 29 to an account tagged “John Smith” – to the National Center for Missing and Exploited Children, which filed a Cyber Tipline report with the Dallas Police Department.
A Dallas IT specialist traced the IP addresses used for the uploads to the City of Dallas internet network. Investigators determined that the same Google accounts were also accessed from Mr. Collin’s residence.
Mr. Collins, who resigned from the Dallas Police Department earlier this week, now faces up to 20 years in federal prison. His sentencing is slated for Jan. 8, 2021.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Fayette County Man Sentenced to 166 Months for Two Armed Robberies of Lexington PharmacyRead the Press Release
LEXINGTON, KY- A Lexington man, Michael R. McReynolds Jr., 32, was sentenced to 166 months on Friday, before Chief United States District Judge Danny Reeves, to Hobbs Act robbery and carrying and using a firearm during a crime of violence.
According to McReynolds’ plea agreement, on September 27, 2019, he robbed the Hubbard & Curry Pharmacy located in Lexington. McReynolds, who was armed with an AK-style firearm, took oxycodone pills, other drugs, and approximately $300. On October 21, 2019, McReynolds again robbed the pharmacy. During the second robbery, McReynolds was again armed with an AK-style firearm, and he stole approximately 500oxycodone pills.
Based on evidence collected, law enforcement officers identified McReynolds as the perpetrator of both robberies. Officers arrested McReynolds at his fiancée’s home on October 21, 2019, and located several of the prescription pills that were stolen during the pharmacy robberies.
As part of his plea agreement, McReynolds admitted to possessing and brandishing a firearm to help facilitate his robberies of the pharmacy.
Under federal law, McReynolds must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Lawrence Weathers, Chief of Police, Lexington Police Department jointly announced the sentencing.
The investigation was directed by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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FEMA Employee Facing Federal Indictment in Maryland for Preparing Fraudulent Tax Returns for Herself and 11 ClientsRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Shanta Johnson, age 43, of Germantown, Maryland, on the federal charges of aiding and assisting in the filing of false tax returns and subscribing to false tax returns. The indictment was returned on July 13, 2020, and was unsealed at her initial appearance today.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Assistant Special Agent in Charge Karen Jordan of the Department of Homeland Security, Office of Inspector General (DHS-OIG), Washington, D.C. Field Office.
According to the indictment, Johnson – who is a program analyst at the U.S. Department of Homeland Security, Federal Emergency Management Agency - prepared false and fraudulent tax returns from her home as well as from her workplace. Johnson allegedly prepared fraudulent tax returns for 11 clients for tax years 2014 and 2015. Johnson reported inflated or fictitious deductions for gifts to charity and unreimbursed employee expenses; false profits or losses to either inflate or reduce her clients’ earned income; and entirely fictitious expenses for educational institutions her clients had not attended. For example, as detailed in the indictment, Johnson reported for Client A fraudulent unreimbursed employee expenses of $8,125. The falsities that Johnson created and reported to the IRS reduced tax liabilities for her clients and increased tax credits, including the Earned Income Credit, and refunds for the client-taxpayers.
Further, the indictment alleges that Johnson did not report the money she received from preparing clients’ tax returns on her own tax returns and she falsely reported net business losses to reduce her own reported income.
If convicted, Johnson faces a maximum sentence of three years in federal prison for each of the 18 counts of aiding and assisting in the filing of a false tax return; and for each of the three counts of making and subscribing to a false tax return. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the IRS-CI, and DHS-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory Bernstein, who is prosecuting the case.
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Eleven More Charged in Expanding Federal Probe into the Staging of Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today the Indictment of RODERICK HICKMAN (“HICKMAN”), age 49, of Baton Rouge, Louisiana; LOIS RUSSELL (“RUSSELL”), age 61, of Gibson, Louisiana; JAMES WILLIAMS (“WILLIAMS”), age 65, of Gibson, Louisiana; TANYA GIVENS (“GIVENS”), age 42, of Gibson, Louisiana; JOHN DIGGS (“J. DIGGS”), age 59, of Thibodaux, Louisiana; HENRY RANDLE (“RANDLE”), age 63, of Gibson, Louisiana; RYAN WHEATEN (“WHEATEN”), age 52, of Lafayette, Louisiana; DAKOTA DIGGS (“DIGGS”), age 25, of Ft. Smith, Arkansas; BERNELL GALE (“GALE”), age 43, of Raceland, Louisiana; MARVEL FRANCOIS (“FRANCOIS”), age 56, of Houma, Louisiana; and TROY SMITH (“SMITH”), age 56, of Houma, Louisiana. These eleven defendants were charged in a seven-count federal indictment with one (1) count of Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371 and six (6) counts of Mail Fraud in violation of Title 18, United States Code, Section 1341. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-7. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count.
Today’s indictment charges these defendants and others with intentionally staging automobile accidents with tractor-trailers in New Orleans to defraud trucking and insurance companies through fraud. According to today’s indictment, defendants HICKMAN, RUSSELL, WILLIAMS, GIVENS, and J. DIGGS intentionally collided with a tractor-trailer on March 27, 2017, at the intersection of Chef Menteur Highway and Downman Road. The indictment alleges that HICKMAN intentionally struck the 18-wheeler and then fled the scene with Damian Labeaud (“Labeaud”), who pled guilty to a previous indictment charging him and seven others with staging automobile accidents.
The indictment also alleges that defendants RANDLE, D. DIGGS, and WHEATEN intentionally collided with a tractor-trailer on May 17, 2017, in the area of Calliope Street and US-90 East. Labeaud was the actual driver of the vehicle when he intentionally caused the accident with the tractor-trailer. Mario Solomon, also charged and convicted in an earlier indictment, picked up Labeaud from the collision site. Labeaud participated in another staged accident approximately 30 minutes later in the vicinity of Louisa Street and Chickasaw Street. The participants in the Louisa Street staged accident were FRANCOIS, GALE, SMITH, and another passenger. Again, Labeaud fled the scene.
As discussed in the indictment, the passengers were referred to attorneys who paid HICKMAN and Labeaud to stage the accidents. In some cases, the attorneys knew that the participants were uninjured but referred them to medical providers for treatment to increase the value of subsequent lawsuits. In total, the victim trucking and insurance companies paid out $277,500.00 for these fraudulent claims.
Arrest Warrants were issued for RUSSELL, J. DIGGS, WHEATEN, and D. DIGGS. The remaining defendant’s will be required to appear, at a later date, before a United States Magistrate Judge for an initial appearance and arraignment on this indictment.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.
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Dallas Mystic Shop Owner Pleads Guilty to Wildlife CrimesRead the Press Release
A Dallas mystic shop owner has pleaded guilty to trafficking dried hummingbird carcasses in violation of the Migratory Bird Treaty Act, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Cynthia Macias-Martinez, 48, pleaded guilty to the sale of wildlife taken in violation of federal law before United States Magistrate Judge Renee H. Toliver on Tuesday.
According to court documents, Ms. Macias-Martinez, owner of a Dallas mystic shop, admitted to selling dried hummingbird carcasses known as “chuparosas” without a valid permit or authorization. “Chuparosas” are believed by some to have mystical benefits and are commonly used as amulets or charms.
The hummingbird, a migratory bird, is protected by the Migratory Bird Treaty Act. Pursuant to Federal regulations, it is illegal to take, possess, import, export, transport, or sell a hummingbird, or its parts, nests, or eggs, except under the terms of a valid permit.
Ms. Macias-Martinez admitted the dried hummingbird carcasses she acquired were illegally imported and smuggled into the United States from Mexico. Without a valid permit or authorization, Ms. Macias-Martinez offered the dried hummingbird carcasses for sale in her store.
She further admitted to both possessing and selling dozens of dried hummingbird carcasses of different species each of which are protected under the Migratory Bird Treaty Act.
Ms. Macias-Martinez faces up to 5 years in federal prison, a$250,000 fine, and restitution for her crimes. A sentencing date has not yet been set.
This case was investigated by the U.S. Fish and Wildlife Service, IRS-Criminal Investigations, and Homeland Security Investigations. Assistant U.S. Douglas Brasher is prosecuting this case.
Columbus man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Aaron B. Callahan, Jr., of Columbus, Ohio, has admitted to distributing methamphetamine, heroin, cocaine and cocaine, U.S. Attorney Bill Powell announced.
Callahan, also known as “A1,” age 30, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Callahan admitted to working with others to distribute methamphetamine, heroin, cocaine and cocaine base in Wetzel County, Ohio, Georgia, and the Southern District of West Virginia from 2016 to April 2018.
Callahan faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge James P. Mazzone presided.
Cleveland man accused of attempting to evade income taxRead the Press Release
U.S. Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned a four-count indictment charging Yaser Najjar, age 58, of Westlake with attempt to evade and defeat income tax.
According to the indictment, from 2009 to 2017, the defendant allegedly owned and operated a gas station on East 152nd Street in Cleveland. During this time, the defendant allegedly maintained a handwritten ledger documenting the gas station’s daily gross receipts, gasoline and convenience store sales and used an accountant to prepare his taxes for the calendar years 2009 through 2016. The indictment states that in connection with the preparation of these taxes, and as part of a scheme to evade income taxes due and owing, the defendant materially misrepresented and concealed a substantial portion of the gas station’s gross receipts to his accountant.
The defendant is accused of providing the accountant with the markup (profit) per gallon of gasoline and convenience store sales, which figures substantially underreported actual gross receipts as reflected in the handwritten ledger. It is alleged that the defendant did not provide the accountant with certain information related to actual gasoline and convenience store sales and concealed other sources of income, including ATM fees, vacuum machine receipts, air machine receipts, and car wash receipts.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant's sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Internal Revenue Service – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorney Megan R. Miller.
Charlotte Man Appears in Federal Court for Orchestrating Multiple Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – Dino Crnalic, 33, of Charlotte, appeared in federal court today following his arrest on Friday, August 21, 2020, for various fraud schemes that defrauded the U.S. Small Business Administration (SBA) and others of more than $800,000, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David S. Cayer presided over the hearing. The alleged fraud schemes involved Crnalic’s efforts to open a sushi restaurant and fitness center near Uptown Charlotte.
According to allegations contained in the indictment, from July 2017 through at least November 2019, Crnalic executed multiple fraudulent schemes and obtained more than $800,000 in SBA-backed loans from various federally insured financial institutions and from other entities. As alleged in the indictment, Crnalic secured the SBA-backed loans by submitting fraudulent documents, including fraudulent applications and fake supporting documentation, and by making various false statements. As part of his fraudulent schemes, the indictment alleges that Crnalic also stole the identity of at least one individual identified in court documents as C.P., and used various falsified documents in C.P.’s name, including a falsified United States Passport. According to the indictment, Crnalic fraudulently obtained more than $800,000 through his schemes, which he used for, among other things, personal expenses, including trips to various casinos, and attempted to obtain hundreds of thousands of dollars.
The indictment alleges that, during the relevant time period, Crnalic formed various business entities doing business in the Charlotte area that he controlled, including Suki Sushi LLC (Suki), Suki Akor LLC (Akor) and Surge Fitness Centers, LLC (Surge). As alleged in the indictment, by no later than the summer of 2016, Crnalic began the process of opening a new sushi restaurant in uptown Charlotte named Suki Akor. As part of that process, Crnalic applied for a loan with a financial institution in the name of Suki, through the SBA 7(a) Loan Guaranty Program. Under this program, the SBA does not loan money directly to small businesses, but provides guaranty to the lending financial institutions that the SBA will repay a percentage of a qualified loan in the event that a borrower defaults.
In applying for the loan with the financial institution for an SBA-backed loan, and obtaining the loan disbursements, the indictment alleges that Crnalic submitted numerous fraudulent documents and made various false statements, including that C.P. was a partner in Suki, when in fact C.P. had nothing to do with Suki or the Suki Akor restaurant. Crnalic also submitted fake invoices for construction costs at the restaurant, fraudulent operating agreements bearing C.P.’s forged signature, falsified bank statements, and fraudulent loan applications. Furthermore, as alleged in the indictment, Crnalic sent and received emails using an email address purportedly belonging to C.P., when in fact Crnalic controlled the email address.
The indictment alleges that, contrary to promises Crnalic made to the financial institution that provided the loan, Crnalic spent a portion of the loan proceeds to cover personal expenses, including to gamble, pay rent on an apartment in Uptown Charlotte, make a car payment on a luxury vehicle, and make purchases at restaurants and bars throughout North Carolina, Florida and in Las Vegas.
According to allegations in the indictment, on or around January 2018, Crnalic applied for an SBA line of credit in the name of Suki through the same financial institution. As with a previous loan application, Crnalic submitted fraudulent loan documents that contained, among other things, forged signatures for C.P., some of which had been notarized through the use of a falsified United States Passport in C.P’s name. Based on the fraudulent documentation, Crnalic was able to obtain an SBA-guaranteed line of credit loan through the financial institution. Contrary to his representations about how the proceeds would be used, Crnalic used a portion of the proceeds for personal use, including to fund a trip to Harrah’s casino in New Orleans.
As alleged in the indictment, in or around March 2018, Crnalic opened up a restaurant in uptown Charlotte named Suki Akor. By no later than May 2018, the restaurant closed, and it ceased operations permanently. At the time of its closing, the indictment alleges that Suki and Akor had hundreds of thousands of dollars in unpaid obligations in addition to the SBA-backed loans from the financial institution, most of which were never paid.
According to allegations in the indictment, by no later than the fall of 2018, Crnalic began the process of opening Surge, a new fitness center located near Uptown Charlotte, and applied for a $250,000 business loan with another financial institution. As with the previous restaurant scheme, Crnalic submitted numerous fraudulent documents and made various false statements while attempting to obtain the loan, including making false statements about the business and C.P.’s involvement. When the financial institution requested to meet with Crnalic and C.P. to discuss the loan further, the indictment alleges that Crnalic stopped pursuing the loan. Also in connection with his efforts to open Surge, Crnalic used C.P.’s identity and other falsified documents to finance $47,473 in fitness equipment through an equipment financing company headquartered in Alexandria, Minnesota. As alleged in the indictment, Surge ultimately defaulted on the lease agreement with the company.
Crnalic is charged with two counts of financial institution fraud, which carry a maximum sentence of 30 years in prison and a $1,000,000 fine per count; three counts of aggravated identity theft, which carry a mandatory sentence of two years in prison per count, consecutive to any other sentence imposed; concealment money laundering, which carries a maximum prison term of 20 years and a $500,000 fine; making a false statements to a bank in connection with a loan, which carries a maximum prison sentence of 30 years and a $1,000,000 fine; and wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine. The indictment also contains a forfeiture money judgment in the amount of at least $845,000, such amount constituting the fraudulent proceeds of the loan scheme.
The charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray credited the Charlotte Division of the FBI the SBA’s Office of the Inspector General for the investigation of this case.
Assistant U.S. Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
If you believe you are a victim or have information related to this case, please contact the FBI at 704-672-6100, and select option 2 when prompted.
Charlestown Man Arrested and Charged with Trafficking Firearms and Being a Felon in Possession of FirearmsRead the Press Release
BOSTON – A Charlestown man was arrested yesterday and charged in connection with trafficking in firearms obtained from a straw purchaser in New Hampshire.
Charles Baker, 44, was indicted on one count of dealing in firearms without a license and two counts of being a felon in possession of a firearm. Baker was arrested yesterday morning and made an initial appearance before Magistrate Judge Donald L. Cabell. A detention hearing is scheduled for Aug. 25, 2020.
As alleged in the indictment, Baker dealt in firearms until May 2019. Due to a prior conviction, Baker is prohibited from possessing firearms, and does not possess a federal license to sell firearms.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division made the announcement. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chapel Hill Risk Consultant Pleads Guilty to Tax Fraud and Firearm ChargesRead the Press Release
GREENSBORO, N.C. - A North Carolina businessman from Chapel Hill pleaded guilty today to filing a false tax return and being a felon in possession of a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court filed documents, Charles Agee Atkins controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management, LLC, Risk Assessment & Management, LLC, and Ram Omni, LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the Internal Revenue Service (IRS). Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several previous years. All told, Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12 gauge shotgun, which Atkins could not legally possess because of his prior convictions.
U.S. District Judge Catherine Eagles will set sentencing at a later date. At sentencing, Atkins faces a maximum sentence of three years in prison on the tax charge and ten years in prison on the felon in possession charge. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Tanner Kroeger, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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California Executive Charged in College Admissions CaseRead the Press Release
BOSTON – A California insurance and private equity executive has agreed to plead guilty to charges in connection with using fraud and bribery to cheat on the ACT exam on behalf of his daughter.
Mark Hauser, 59, of Los Angeles, Calif., will plead guilty to an Information charging him with one count of conspiracy to commit mail fraud and honest services mail fraud. A plea hearing has not yet been scheduled by the Court.
According to the terms of Hauser’s plea agreement, the government will recommend a sentence of six months in prison, one year of supervised release, a fine of $40,000 and restitution. Hauser is the 29th parent to plead guilty and the 42nd person overall to plead guilty in this case.
As set forth in the charging document, Hauser agreed with William “Rick” Singer to pay an amount, ultimately totaling $40,000, to facilitate cheating on his daughter’s ACT exam. As part of the scheme, co-conspirator Mark Riddell traveled to Houston, Texas, where Hauser’s daughter took the exam, and purported to proctor the test. Instead, Riddell corrected the answers on the exam after she completed it. Two days later, Singer paid an intermediary, Martin Fox, $25,000, with the understanding that Fox would pass part of the payment on to Niki Williams, the test site administrator who allowed the cheating to occur. Singer also paid Riddell $10,000 for his role in the scheme.
Singer, Riddell and Fox have previously pleaded guilty and are cooperating with the government’s investigation. Williams has agreed to plead guilty. The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
California Couple in College Admissions Case Sentenced to PrisonRead the Press Release
BOSTON – Lori Loughlin and Mossimo Giannulli were sentenced to two months and five months in prison, respectively, in connection with securing the fraudulent admission of their two daughters to the University of Southern California (USC) as purported athletic recruits.
Loughlin, 56, of Los Angeles, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two months in prison, two years of supervised release during which time she must complete 100 hours of community service and ordered to pay a fine of $150,000. Giannulli, 57, was sentenced by Judge Gorton to five months in prison, two years of supervised release during which time he must complete 250 hours of community service and ordered to pay a fine of $250,000.
In May 2020, Loughlin entered a plea of guilty to one count of conspiracy to commit wire and mail fraud and Giannulli entered a plea of guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud.
In 2016, Loughlin and Giannulli agreed to have William “Rick” Singer facilitate their older daughter’s admission to USC as a purported crew recruit. In an August 2016 email, Singer told Loughlin and Giannulli that he would “create a coxswain profile.” Giannulli emailed Singer a picture of his older daughter purporting to row on an ergometer for inclusion in the falsified profile.
Giannulli further agreed to make purported charitable contributions totaling $250,000 as a quid pro quo to facilitate his daughter’s fraudulent admission to USC. Giannulli caused $50,000 to be paid to an account belong to the USC athletics administrator and paid $200,000 to Singer’s sham charity, Key Worldwide Foundation (KWF). Giannulli forwarded the invoice from KWF to his financial advisor writing: “Good news my daughter [ ] is in [U]SC . . . bad [news] is I had to work the system.”
In 2017, Loughlin and Giannulli agreed with Singer to facilitate their younger daughter’s admission to USC as a purported crew recruit even though she too had never participated in the sport. In July 2017, Singer emailed Giannulli and Loughlin telling them he would “build an athletic profile for USC” and noted that he would falsely present her as a coxswain. Shortly thereafter, Giannulli, copying Loughlin, emailed Singer a photograph of their younger daughter on an ergometer.
In November 2017, Singer emailed Loughlin and Giannulli a “likely letter” stating that their younger daughter had been provisionally admitted to USC as an athletic recruit. Loughlin, copying Giannulli, responded: “This is wonderful news!”
Thereafter, Giannulli caused $50,000 to be paid to a USC athletic account controlled by the USC athletic administrator and $200,000 to be paid to KWF. Giannulli forwarded the KWF invoice to his financial advisor, noting that it was “the last college ‘donation’ for” his daughter, and asking, “Can’t I write this off?”
Singer has pleaded guilty and is cooperating with the government’s investigation.
Loughlin and Giannulli are the 21st and 22nd parents to be sentenced in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man Going to Prison for Speeding Through Lewiston Border Crossing in A Stolen CarRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Raison Holt, 25, of Buffalo, NY, who was convicted of high speed flight from a border checkpoint, was sentenced to serve 20 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on January 20, 2020, around 6:00 a.m., the defendant was driving a motor vehicle on the Lewiston-Queenstown Bridge, heading into Canada. Before entering Canada, Holt turned around in the middle of the bridge and drove toward the United States at the Lewiston Bridge Port of Entry in Lewiston. Despite numerous “stop” signs posted by U.S. Customs and Border Protection, the defendant failed to stop for federal inspection.
At a vehicle check point just past the initial inspection gate, a CBP officer verbally ordered Holt to stop, but the defendant ignored the command and accelerated on Interstate 190, and then onto the route 104 exit ramp. CBP vehicles gave chase in pursuit of the defendant’s speeding vehicle. Officers witnessed Holt lose control of his vehicle and crash into a ditch on the side of the road. The defendant attempted to run away but officers took the Holt into custody. It was subsequently determined that the vehicle the defendant was driving was stolen. Holt was turned over to the Buffalo Police Department for an outstanding arrest warrant for Grand Larceny and Unauthorized Use of a Motor Vehicle.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
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Buffalo Man Going to Prison for Robbing Four Banks, Attempting to Rob A Fifth Bank, and Threatening His Ex-GirlfriendRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Vincent Gibson, 39, of Buffalo, NY, who was convicted of bank robbery, entering a bank with intent to commit a larceny, bank larceny, and interstate communication of a threat to injure a person, was sentenced to serve 60 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay restitution totaling $5,000 to M&T Bank.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that the defendant committed four bank robberies, and attempted to rob a fifth bank:
• On September 11, 2017, Gibson robbed the M&T Bank located at 1300 Jefferson Avenue in Buffalo; • On September 13, 2017, the defendant attempted to rob the Key Bank at 592 Elmwood Avenue in Buffalo; • On September 13, 2017, Gibson robbed the M&T Bank located at 130 Grant Street in Buffalo; • On September 18, 2017, the defendant robbed the M&T Bank at 644 Bailey Avenue in Buffalo; and
• October 10, 2017, Gibson robbed the M&T Bank at 1877 Main Street in Buffalo.In addition, on October 14, 2018, a woman with whom Gibson has a child, was threatened by the defendant via text message after she ended their relationship. Those threats included statements such as, “I'm (sic) kill you and I mean it,” “I'm about to get your kids,” and “I be at your house you die.”
The sentencing is the result of an investigation by the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Broken Bow Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wendell Ray Caudle, age 51, of Broken Bow, Oklahoma entered a guilty plea to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The maximum possible penalty for Possession with Intent to Distribute Methamphetamine is imprisonment for a period of not more than 20 years and/or a fine of $1,000,000.00, and a term of supervised release to be determined by the Court. The maximum possible penalty for Possession of a Firearm in Furtherance of a Drug Trafficking Crime is imprisonment for a period of not less than 5 years consecutive to the sentence in Count One, and/or a fine of $250,000.00.
The Indictment alleged that from on or about December 24, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess, with intent to distribute, a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The Indictment further alleged that on or about December 24, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm, to wit: one (1) Derringer, .32 caliber revolver, Model D-32, serial number 286056, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Nalani Ching represented the United States at the change of plea hearing.
Bridgeport Tax Preparer Sentenced to Prison for Preparing Numerous False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VERONICA HUITZIL, 39, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to six months of imprisonment, followed by one year of supervised release, for preparing false tax returns for numerous clients.
According to court documents and statements made in court, Huitzil, who operated a tax return preparation practice in Bridgeport, assisted in the preparation and filing of more than 3,700 federal tax returns for the 2014 through 2018 tax years. Many of the filed tax returns claimed dependents who were not dependents, deducted thousands of dollars in business losses for fictitious businesses, and included inflated or fabricated medical expenses, charitable contributions and employee business expenses. The loss suffered by the IRS as a result of Huitzil’s fraudulent conduct totaled $898,665.
Judge Dooley ordered Huitzil to make full restitution.
On February 11, 2020, Huitzil pleaded guilty to one count of aiding and assisting the filing of a false tax return.
Huitzil, who is released on bond, is required to report to prison on November 30, 2020.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Berkeley County woman admits to firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kristal Rayne Montieth, of Martinsburg, West Virginia, has admitted to her role in a firearms trafficking conspiracy, U.S. Attorney Bill Powell announced.
Montieth, 24, pled guilty to one count of “False Statement During Purchase of Firearm.” Montieth purchased a firearm a 9mm pistol, making a false statement on the ATF in December 2019 in Berkeley County.
Montieth faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Robert W. Trumble presided.
Bay Area Man Pleads Guilty to Operating Unlicensed Money Transmitting Business that Facilitated International Fraud SchemeRead the Press Release
LOS ANGELES – An Alameda County resident has pleaded guilty to operating an unlicensed money transmitting business that provided essential services to a fraudulent technical-support company, the Justice Department announced today.
Dapinderjeet Singh, 24, of Newark, California, pleaded guilty Thursday afternoon to a one-count felony information before United States District Judge Percy Anderson.
Singh admitted that he owned and operated Alpha Technologies LLC, which claimed to offer technical-support services to the public. In reality, Alpha was simply a conduit for funds to be transmitted from victims of a technical-support fraud scam to the scam’s perpetrators.
According to court documents, an India-based call center lied to victims about virus and hacking attacks on their computers and induced victims to send money to Alpha Technologies, purportedly to fix their computers. Singh, through Alpha Technologies, received victim proceeds and forwarded them to India-based scheme operators.
“This defendant provided an essential service to criminals behind an international fraud by providing what appeared to be a legitimate business, but in reality was simply a funnel to direct stolen funds to con artists,” said United States Attorney Nick Hanna. “This case demonstrates how we dismantle criminal organizations by targeting those who orchestrate the illegal conduct, as well as those who play key roles to facilitate the delivery of ill-gotten gains.”
“The defendant provided crucial assistance to foreign fraudsters who stole from consumers, including many elderly victims, under the guise of technical support,” said Ethan P. Davis, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Time and time again, the Civil Division’s Consumer Protection Branch has shown that both perpetrators and facilitators of elder fraud will be held accountable.”
“Mr. Singh admitted to his role in a scheme to defraud vulnerable computer users, including many elderly victims, who were led to believe their computers had been compromised and who paid for the purported expertise of others,” said John F. Bennett, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Computer users should avoid unsolicited offers they receive by phone or online and seek technical assistance from trusted sources only, particularly when demands for cash are being made.”
“Fraud schemes that cheat vulnerable consumers, especially the elderly, will not be tolerated,” said Makan Delrahim, Assistant Attorney General for the Justice Department’s Antitrust Division. “The Antitrust Division is pleased to lend the time and talent of its prosecutors to the Elder Justice Initiative.”
Singh admitted that he worked with India-based scheme operators from late 2016 until February 2018. In addition to opening Alpha Technologies as a corporate entity, Singh maintained post office boxes that were used to receive payments sent by victims, and he forwarded proceeds to scheme operators in India and elsewhere. Through Alpha, Singh engaged in a money transmitting business that was neither licensed by the State of California, nor registered with the Financial Crimes Enforcement Network or the U.S. Department of Treasury.
Singh is scheduled to be sentenced by Judge Anderson on November 2.
Three other individuals previously have been charged in this investigation. In 2019, Indian citizens Aman Mehndiratta and Aman Kheira were charged with wire fraud in connection with the scheme. The criminal complaint alleges that Mehndiratta and Kheira recruited another California resident – Parmjit Brar – to serve as a payment gateway for the scheme. According to the criminal complaint, many victims lost hundreds of dollars, while some elderly victims lost hundreds of thousands of dollars. In 2019, Parmjit Brar pleaded guilty to conspiracy to commit wire fraud, and he is scheduled to be sentenced on September 28 by Judge Anderson.
This matter was investigated by the FBI.
The prosecution is being handled by Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section; DOJ Trial Attorney Justin Murphy of the Antitrust Division; and Senior Counsel Richard Goldberg of the Civil Division’s Consumer Protection Branch.