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21 August 2020
BREAKING NEWS: U.S. Marshals Apprehend Kymoni Davis in DetroitRead the Press Release
Davis was Indicted by Federal Grand Jury in January
CHARLESTON, W.Va. – U. S. Marshals have apprehended Kymoni Davis, also known as “Money,” in Detroit, announced United States Attorney Mike Stuart. Davis, 31, was charged by federal indictment in January 2020 with being a felon in possession of ammunition. He has remained a fugitive since his indictment. The indictment alleges that on January 1, 2020, Davis possessed 9mm ammunition. According to the indictment, Davis has three prior felony convictions in state court in Michigan.
Davis also faces state felony charges in Cabell County, in connection with a New Year’s Day shooting in Huntington at the Kulture Hookah Bar.
“Great work by the Detroit Police Department and the U.S. Marshals Service,” said United States Attorney Mike Stuart. “The people of Huntington can rest assured that my team is working closely with our federal, state and local law enforcement partners and the Cabell County Prosecutor’s Office to reduce violent crime in Huntington and hold trigger-pullers accountable.”
“ATF is committed to our law enforcement partnerships whose good work today resulted in the arrest of a fugitive wanted for violent crimes,” said R. Shawn Morrow, ATF Louisville Special Agent in Charge. “Our streets are safer due to these partnerships.”
Davis faces up to 10 years in prison, if convicted.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are conducting the investigation. Assistant United States Attorney Greg McVey is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Please note: An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00018.
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Assistant Attorney General Beth A. Williams Commends the Administrative Office of the U.S. Courts for New Website Enhancing Access to JusticeRead the Press Release
Assistant Attorney General Beth A. Williams issued the following statement today on the efforts by the Administrative Office of the U.S. Courts to enhance public and litigant access to electronic court records. This year, as part of its access to justice efforts, the Office of Legal Policy at the Department of Justice partnered with the Administrative Office of the U.S. Courts to improve transparency regarding fee exemptions for access to court records in the Public Access to Court Electronic Records (PACER) system. As part of that partnership, the Administrative Office of the U.S. Courts announced an enhanced PACER website that makes it easier for indigent individuals, as well as pro bono attorneys, academic researchers, and non-profit organizations, to understand how they may access court records for free.
“The Department of Justice is pleased that the Administrative Office of the U.S. Courts has improved its PACER website to better inform indigent individuals that they may access court records for free, and to make it easier for them to do so. The new website promotes access to justice through increased accessibility and transparency. Public records should be available to all, irrespective of wealth or status. We look forward to continuing our partnership with the Administrative Office to eliminate barriers that may prevent individuals from understanding and exercising their rights.”
Approximately Two Million Dollars Seized After Fugitive’s ArrestRead the Press Release
SAN JUAN, Puerto Rico – On August 20, 2020, Elvin O. Cruz-Verges, a/k/a “Mellao,” was arrested in a joint law enforcement operation by the FBI, Police of Puerto Rico San Juan Strike Force, and the U.S. Marshals, in the municipality of Aguas Buenas, PR. Defendant Cruz-Verges was a fugitive since February of 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
After the arrest, law enforcement authorities requested a search warrant for a residence where the accused was living, and seized approximately two million dollars in cash, 88 kilograms of cocaine, 3.8 kilograms of heroin, and other items.
Defendant Cruz-Verges was a leader in the drug trafficking organization known as “Las FARC,” (Las Fuerzas Armadas Revolucionarias de Cantera). “Las FARC” operated out of Barrio Obrero Ward, including but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about the year 2006. The goal of “Las FARC” was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
Cruz-Verges had been previously charged in a seven-count indictment for conspiracy to possess with intent to distribute narcotics, aiding and abetting in the possession and distribution of heroin, crack, cocaine, and marihuana, and possession of a firearm in furtherance of drug trafficking. The charged drug conspiracy included 75 defendants.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa S. Zapata-Valladares are in charge of the prosecution of the case. If convicted the defendant faces a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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26 Charged in Wiretap Investigation into Drug Trafficking and Gun Violence by Street Gang “Shot Boyz” in Wilkinsburg and East HillsRead the Press Release
PITTSBURGH, PA - A federal grand jury in Pittsburgh has returned two separate, but related, Indictments following a five-month Title III wiretap investigation into drug trafficking and violence in and around Wilkinsburg and the East Hills neighborhood in Pittsburgh, United States Attorney Scott Brady announced today. The Indictments charge 26 residents of western Pennsylvania with narcotics trafficking and firearms violations.
“Every family in Pittsburgh deserves to live, work and raise their children in a community free from violence,” said United States Attorney Scott Brady. “For far too long, the people of the East End, Homewood and Wilkinsburg have suffered from disproportionate numbers of homicides, shootings and dispatches for shots fired. Our goal remains the same: to make Pittsburgh the safest city in America. In order to do so, we must prosecute and remove the most violent criminals from these neighborhoods. And that is what we have done. The Shot Boyz gang is done.”
“The Shot Boyz gang has terrorized our community with violence and drug trafficking for long enough,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “The community will not be handcuffed by fear of leaving their homes, getting attacked, having their children hurt or worse, being killed. These arrests are the first step to making the community safer from individuals intent on harming their neighbors. I commend the work of the Pittsburgh Safe Streets Task Force and our numerous other local and state partners for working diligently to bring those solely focused on illegal activity to justice.”
“ATF is committed to working with our local, state and federal partners to target those responsible for drug trafficking and gun violence in our communities,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “This coordinated effort between ATF and our partners demonstrates our continued dedication to identify, target, and investigate violent criminals who lessen the quality of life in our neighborhoods.”
“The people of Pittsburgh and western Pennsylvania deserve to live in drug-free and violence-free neighborhoods,” Pittsburgh Police Chief Scott Schubert said. “This coordinated effort illustrates the unwavering commitment of the Pittsburgh Bureau of Police and our partner law enforcement agencies to guard, protect and serve our communities.”
“It was an honor and privilege to work so closely with such professionals in this case,” added Latrobe Police Chief John Sleasman. “The amount of heroin and fentanyl coming into Westmoreland County and Latrobe will be dramatically reduced as will the amount of senseless overdoses in our area. I want to personally thank all of the case agents, local agents and local officers who worked tirelessly on this distribution case. The citizens of Latrobe are forever grateful.”
The first Indictment, returned on August 19 and unsealed today, names the following 25 individuals as defendants:
- Tyric Allen, 25, of Pittsburgh, Pennsylvania;
- Phillip Ahmad-Revis, 20, of Pittsburgh, Pennsylvania;
- Djuan Beasley, 20, of Swissvale, Pennsylvania;
- Marcus Best, 27, of Munhall, Pennsylvania;
- Davon Cleveland, 20, of Pittsburgh, Pennsylvania;
- Donshae Dunning, 32, of McKeesport, Pennsylvania;
- Dominic Fields, 33, of McKeesport, Pennsylvania;
- Donald Hantz, 37, of Latrobe, Pennsylvania;
- Taire Hardeman, 20, of Wilkinsburg, Pennsylvania;
- Natrell Jeffries, 21, of Wilkinsburg, Pennsylvania;
- Mandee Kozar, 34, of Latrobe, Pennsylvania;
- Seth Lindsey, 26, of Verona, Pennsylvania;
- Davon Loveings, 29, of Pittsburgh, Pennsylvania;
- Bryan Matthews, 31, of Penn Hills, Pennsylvania;
- Tayvon Mattox, 20, of Pittsburgh, Pennsylvania;
- Barbara McClure, 46, of Latrobe, Pennsylvania;
- Jerome Pleasant-Simpson, 25, of Pittsburgh, Pennsylvania;
- Parris Scott, 20, of Pittsburgh, Pennsylvania;
- Nikki Sherback, 35, of Latrobe, Pennsylvania;
- Robert Smiley, 30, of Pittsburgh, Pennsylvania;
- Patrick Smith, 36, of Latrobe, Pennsylvania;
- Jeffrey Tumer, 29, of Monroeville, Pennsylvania;
- Garrett Weaver, 38, of Monroeville, Pennsylvania;
- Jeremy Winfield, 25, of Pittsburgh, Pennsylvania; and
- Marquille Wright, 25, of Munhall, Pennsylvania.
According to the Indictment, the named defendants are collectively the members and associates of a group of drug traffickers identifying themselves as “Shot Boyz,” “Drive Boyz,” and/or “OTS” (collectively, the “Shot Boyz”). During the periods of time set forth in the Indictment, the Shot Boyz sold large quantities of fentanyl in the City of Pittsburgh and the surrounding neighborhoods, including East Hills, Homewood, and Wilkinsburg. Associates of the Shot Boyz also distributed fentanyl in Latrobe, Pennsylvania. In order to further their drug trafficking operation, and to protect themselves, their drugs, and their proceeds from drug trafficking, members of the Shot Boyz obtained and possessed firearms.
The Indictment alleges that the defendants conspired to possess with intent to distribute and distribute at least 400 grams of fentanyl from March 2019 through August 2020. The Indictment further alleges individual drug trafficking charges against Tyric Allen, Phillip Ahmad-Revis, and Davon Loveings, as well as individual firearms violations against Allen and Loveings.
The second Indictment, returned on August 19 and also unsealed today, charges Keith Redman, 22, of Braddock, Pennsylvania, with one count of possessing a firearm and ammunition on May 21, 2020, after being convicted of a crime punishable by more than a year in prison, namely, aggravated assault. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
For all defendants associated with the first Indictment, the law provides for a maximum total sentence of up to life imprisonment, a fine of not more than $10,000,000, or both. As to Keith Redman, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The FBI Greater Pittsburgh Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Bureau of Police, the Latrobe Police Department, the Allegheny County Sheriff's Office, the Munhall Police Department, the Pennsylvania Office of the Attorney General, Allegheny County Probation, the Wilkinsburg Police Department, the Monroeville Police Department, and the Penn Hills Police Department conducted the investigation leading to the Indictments in this case.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
20 August 2020
Woman Who Faked Cancer to Delay Prison Date Sentenced to 5 More YearsRead the Press Release
A Denison, Texas woman who faked stomach cancer in order to delay a prison sentence has been sentenced to an additional five years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kassie Bond Carpenter, 42, pleaded guilty in February to obstruction of justice. She was sentenced Thursday afternoon by U.S. District Judge Jane J. Boyle.
In plea papers, Ms. Carpenter – who’d already been sentenced to 41 months in federal prison for wire fraud – admitted she attempted to delay her prison reporting date by submitting to the Court at least nine sets of forged medical records indicating she had been diagnosed and was receiving treatment for adenocarcinoma, a cancer that begins in the glandular cells that line the stomach and other organs.
Ms. Carpenter “is now receiving radiation therapy for her stomach cancer,” her attorney wrote in an motion asking to delay her reporting date, noting that the defendant had access to only some of the medical records related to her treatment.
“Without proper treatment, [her] cancer will turn malignant and metastasize,” he added.
Based on the sham medical records, the Court granted multiple extensions, delaying her prison reporting date from Aug. 22, 2017 to Jan. 30, 2018, then to Aug. 7, 2018, then to Nov. 6, 2018, then to Jan. 29, 2019, and finally to April 29, 2019.
On Jan. 29, 2019, her defense attorney moved to withdraw from the case, stating that he believed he had been “an unwitting tool in a fraud on this Court” due to potential deceit by his client. Two days later, U.S. District Judge Sidney Fitzwater vacated his order extending Ms. Carpenter’s reporting date, and ordered her arrested.
The 60-month sentence handed down today will be served consecutive to the 41-month sentence handed down by Judge Fitzwater in the wire fraud case.
In that case, Ms. Carpenter pleaded guilty to embezzling money from a property management company where she worked. She admitted she fraudulently issued at least $133,000 in checks payable to herself, $157,000 in checks payable to a fictitious company she created, and used company money to pay off personal accounts with JC Penny, DirectTV, TXU Energy, and Verizon, resulting in more than $372,000 of losses to the property management company.
The Federal Bureau of Investigation’s Dallas Field Office investigated both the wire fraud case and the obstruction case. Assistant U.S. Attorney Christopher Stokes prosecuted both cases.
Upshur County Couple Indicted for Identity Theft in Connection with CARES Act Economic Impact PaymentsRead the Press Release
TYLER, Texas – A couple from Gilmer, Texas has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Dalton Brewer and Emilee Fenton, both 24, were indicted by a federal grand jury on August 19, 2020 and charged with conspiracy to unlawfully transfer, possess, and use a means of identification. Fenton was also charged with theft of government money and aggravated identity theft.
According to the indictment, from at least November 2019 through June 2020, Brewer and Fenton conspired to possess and use the means of identification of other persons, including names, Social Security numbers, and dates of birth, in connection with the theft of government money, aggravated identity theft, wire fraud, theft of mail, and fraudulent use or possession of identifying information. Fenton was also charged with theft of government money and aggravated identity theft for her role in obtaining two Economic Impact Payments (EIPs) using the means of identification of other persons.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old. Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.
“Fraudsters engaged in identity theft to steal taxpayer refunds have now turned their attention to stealing Economic Impact Payments,” said U.S. Attorney Stephen J. Cox. “We are committed to fighting fraud and criminal activity relating to the COVID-19 pandemic – this is a top priority for the Eastern District of Texas – and, along with our law enforcement partners, we will use all available tools to pursue wrongdoers who seek to exploit the crisis.”
“It’s disheartening to see individuals and communities already facing challenges related to COVID-19 be targeted with crimes like these,” said Ketty Larco, Acting Inspector in Charge of the Fort Worth Division of the U.S. Postal Inspection Service. “Protecting the U.S. Mail and American public are priorities for Postal Inspectors however, and these arrests are a product of that commitment. The Postal Inspection Service appreciates the efforts of all our federal and local partners who helped bring this crime spree to an end.”
“The Treasury Inspector General for Tax Administration (TIGTA), and its law enforcement partners, will aggressively pursue those who endeavor to steal Economic Impact Payments afforded to the American public under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts of the IRS Criminal Investigation Division and the U.S. Postal Inspection Service in this investigation.”
“IRS Criminal Investigation continues to pursue identity thieves who view the American taxpayer as an easy target,” said Acting Assistant Special Agent in Charge Marcus Henderson of the Dallas Field Office. “Today’s indictments highlight our commitment to protecting the very people the Economic Impact Payments were intended to benefit during this global crisis.”
If convicted, Brewer and Fenton face up to 15 years in federal prison. A grand jury indictment is not evidence of guilt.
This case is being investigated by the United States Postal Inspection Service (USPIS), Treasury Inspector General for Tax Administration (TIGTA), and the Internal Revenue Service-Criminal Investigations (IRS-CI) and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
United States Receives $1.1 Million to Settle Civil Claims with Defense Contractor Accused of FraudRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces that the United States has settled allegations that Islands Mechanical Contractor, Inc. (IMC) improperly submitted claims for standby or delay costs associated with construction contracts at Naval Station Guantanamo Bay.
IMC is a defense contractor that provides construction services at Naval Station Guantanamo Bay. IMC agreed to construct a facility at Guantanamo Bay, but delays occurred. IMC submitted requests for equitable adjustment for additional stand-by and delay costs, but the United States alleges that IMC’s claims for equipment and labor costs were inflated and based on misrepresented, incomplete, and insufficient data. The Defense Contract Audit Agency (DCAA) determined that the claimed equipment was not needed for the relevant project, the actual age of the equipment did not match the claimed equipment age, and that the equipment was diverted to other projects instead of being placed on stand-by. Similarly, the DCAA found that the workers claimed to be on stand-by were reallocated to other projects, and the payroll records supporting their standby status were falsified.
“Protecting the integrity of services provided to our armed forces is a high priority for our office,” said U.S. Attorney Maria Chapa Lopez. “We will work vigorously to ensure that defense contractors fulfill their contractual obligations and do not inflate claims for payments so that our military can accomplish its mission.”
NCIS Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office said, “Fraud is not a victimless crime, and puts our Sailors and Marines at greater risk. The American taxpayers are also victims as the blatant and wrongful misuse of American taxpayer dollars not only erodes the public trust but also diminishes the Department of Navy’s ability to obtain the best technology, services, and equipment for our brave military members.”
This case was investigated by the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and Assistant United States Attorney Shea Gibbons.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney and the Federal Bureau of Investigation Warn Iowans about the Dangers of Counterfeit Adderall PillsRead the Press Release
United States Attorney Peter E. Deegan, Jr. and Federal Bureau of Investigation (FBI) Special Agent in Charge Kristi Johnson today highlighted the danger that counterfeit Adderall pills pose to those who may attempt to purchase prescription stimulants on the street. Drug trafficking organizations are using counterfeit Adderall pills containing crystal methamphetamine to target those who may be addicted to prescription drugs but who otherwise would not use methamphetamine. These pills increase the health risk and addiction rates of prescription stimulant abusers in the United States.
Following an investigation by the FBI, in February 2020 three individuals pleaded guilty to drug distribution conspiracy charges in relation to their involvement with a drug vendor who sold counterfeit Adderall pills. Although the pills were marketed as “100% authentic” Adderall pills, the pills tested positive for methamphetamine, according to DEA laboratory testing.
United States Attorney Deegan stated, “Drug traffickers are trying to deceive people across the country into purchasing, using, and becoming addicted to methamphetamine. They will do whatever they have to do in order to make money at the expense of the health and safety of those buying these fake pills. The public must be aware that while these pills may look like prescription drugs, they actually contain a deadly controlled substance.”
Special Agent in Charge Kristi Johnson said, “The safety of our community is the priority of the FBI. We are committed to stopping deadly drugs before they make it to the streets. We also must remind the public that medications not obtained by legitimate means can result in severe health risks and even death. I would ask that you to share this potentially life-saving message with your loved ones.”
These counterfeit pills are also dangerous because users who believe that they are purchasing Adderall will assume the pills are safe because they appear to be quality-controlled products of a heavily regulated prescription drug industry. Instead, users may be putting powerful crystal methamphetamine into their bodies, which leads to increased addiction rates and health risks. In July and August 2019, one vendor of counterfeit Adderall pills containing methamphetamine attempted to attract resellers of his pills by posting on a darknet website “your customers body can’t tell the difference if it is amphetamine or meth.”
Unless prescription drugs are obtained from an authorized medical provider or pharmacy, the public should not consume or even handle these pills. All Iowans are urged to only use prescription drugs prescribed to them by legitimate health care providers.
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Two Indicted for Conspiracy to Commit Murder-for-Hire and Murder-for-HireRead the Press Release
St. Louis – A federal grand jury indicted James Timothy Norman, 41, of Jackson, Mississippi, and Terica Ellis, 36, of Memphis, Tennessee, for the offenses of conspiracy to commit murder-for-hire and murder-for-hire, resulting in death. The grand jury also charged Norman and Waiel Rebhi Yaghnam, 42, of St. Louis, Missouri, with one count of conspiracy to commit wire and mail fraud. Federal complaints and arrests warrants were previously issued for Norman and Ellis, who were both arrested earlier this week.
According to the indictment and other court documents, Norman conspired with Terica Ellis and others to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a $450,000 life insurance policy on his 20-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary. In the days leading up to Montgomery’s murder, Ellis, an exotic dancer residing in Memphis, Tennessee, communicated with Montgomery and informed him that she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location for the purpose of luring Montgomery outside. Immediately after learning Montgomery’s location, Ellis placed a call to Norman. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman, and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis deposited over $9,000 in cash into various bank accounts. On March 18, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
The indictment alleges that prior to Montgomery’s murder, Norman conspired with Waiel Yaghnam, his insurance agent, to fraudulently obtain a life insurance policy on Montgomery. Beginning in October of 2014, Norman and Yaghnam submitted three separate life insurance applications, all containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background. In the life insurance policy that ultimately issued, Norman obtained a $200,000 policy, as well as $200,000 accidental death rider that would pay out in the event that Montgomery died of something other than natural causes, and a $50,000 10 year-term rider that would pay out if Montgomery died within 10 years of the policy’s issuance in 2014.
The arrests of Norman and Ellis are part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The St. Louis Metropolitan Police Department Homicide Section and Federal Bureau of Investigation are investigating these current charges.
If convicted of the conspiracy to commit murder-for-hire or murder-for-hire, resulting in death, the penalty is life imprisonment or death and a fine of $250,000; and conspiracy to commit wire and mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, the charge in an indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
Troy Man Sentenced to 63 Months for Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – Hakeem Mauzon, age 29, of Troy, New York, was sentenced on Tuesday to 63 months in prison for distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Mauzon was also ordered by Chief United States District Judge Glenn T. Suddaby to serve a period of 4 years of supervised release following his term of incarceration, and to forfeit to the government $4,560 in proceeds from his drug trafficking activity.
Mauzon pled guilty to distributing over 28 grams of crack cocaine in November 2018 in Troy. At his guilty plea, Mauzon admitted to selling crack cocaine on three other occasions in 2018 in Troy, for a total of approximately 200 grams among the four sales.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Three Men Charged with COVID-19 Related Unemployment FraudRead the Press Release
Alvin Lavon Rex, age 61, of Schaller, Iowa, Jerry Johnson, age 54, of Webster City, Iowa, and Brian Whorton, age 54, of Marion, Iowa, were all charged with COVID-19 related fraud offenses. The charges are contained in separate complaints and an indictment recently filed in the United States District Court for the Northern District of Iowa in Cedar Rapids and Sioux City.
The complaints and indictment separately allege that each of the three men fraudulently obtained unemployment benefits related to COVID-19 relief funds to which they were not entitled. Rex and Johnson are charged with mail fraud and Whorton is charged with wire fraud.
If convicted each man faces up to 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. All three men have appeared in federal court and were released without bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
These cases are being prosecuted by multiple Assistant United States Attorneys and investigated by the Federal Bureau of Investigation, the United States Department of Labor - Office of Inspector General, the United States Postal Inspection Service, and the Storm Lake Police Department. Assisting in the investigation are the Sac County Sheriff’s Office, the State of Arizona’s Unemployment Insurance Benefit Fraud Investigation Unit - Office of Inspector General, the State of Massachusetts’s Program Integrity Unit - Department of Unemployment Assistance, and the State of Ohio’s Benefit Payment Fraud Control Unit - Department of Job and Family Services.
Rooting out COVID-19 fraud is a priority of the Department of Justice. On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits.
These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-4062, 20-CR-3027, and 20-CR-0064.
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Three Enter Pleas in Scheme to Import Rx Drugs and Fraudulent Credit Card Payment Processing SchemeRead the Press Release
PITTSBURGH – Three residents of New York, pleaded guilty in recent weeks in federal court to a charge of conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced today. The charges are in connection with a complex scheme related to the importation into the United States of prescription drugs from China, Russia and India, and the fraudulent credit card payment processing associated with those sales to consumers in the United States.
Devan Abrams, age 39, of New York City, New York, Azad Khizgilov, age 46, of Staten Island, New York, and Roman Shaulov, age 53, of Brooklyn, New York, pleaded guilty to one count before Senior United States District Judge David S. Cercone. In related cases, Garri Shihman, age 49, of Parkland, Florida, and Gennady Nudelman, age 45, of Delray Beach, Florida, pled guilty and were sentenced in 2019.
In connection with the various court proceedings, the court was advised that this complex matter has two primary components. The first is related to the illegal on-line sale of pharmaceutical drugs to U.S. consumers from a host of websites located primarily in India, China and Russia. The second component relates to the fraudulent processing of credit card payments for these pharmaceutical drugs and other products. The five defendants referred to in this press release are only directly associated with the second component component. The fraudulent activity, which occurred between 2013 and 2017, involved the use of a series of misrepresentations that cause the credit card companies to process credit card transactions for illegally imported pharmaceutical drugs. The credit card companies have policies that preclude the use of their products and services to pay for illegally imported pharmaceutical drugs, and they have various internal controls designed to prevent the use of their products and services for such activities. In the scheme orchestrated by the defendants, they defrauded the credit card companies into processing tens of millions of dollars in payments for illegally imported pharmaceutical drugs through a series front companies, fake websites, fraudulent merchant applications, and other fraudulent activity.
The fraud involved the establishment of hundreds of front companies that were established by these defendants any others, and fake web sites associated with those companies that falsely indicated that they were selling legitimate products. Together with the incorporation paperwork for the front companies and the fake website, the defendants submitted a merchant application to the credit card companies under the name of recruited accomplices. Once approved by the credit card companies, the defendants then arranged for the merchant accounts to process payments for the illegally imported pharmaceutical drugs.
The defendants also arranged for a number of employees to serve on a telephone bank that received telephone calls from customers questioning charges on their credit card statements. That was necessary because the credit card statements reflected purchases from the front companies and not the internet companies selling the illegally imported pharmaceutical drugs. In this way, the telephone bank prevented the customers from reporting the fraud to the credit card companies.
Federal agents began to undercover the fraud through controlled purchases from websites and search warrants at various locations. Abrams, Khizgilov, and Shihman operated out of offices located at 1812 Bath Avenue, Brooklyn, NY, and later, Abrams, Khizgilov and Shaulov operated out of offices located at 1706 Crospey Avenue, Brooklyn, NY. Search warrants executed at both of those locations led to evidence supporting the charges.
Judge Cercone scheduled sentencing for Devan Abrams on December 15, 2020, for Azad Khizgilov on December 8, 2020, and for Roman Shaulov on December 17, 2020. The law provides for a total maximum sentence of not more than 30 years in prison, a fine of $1,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Garri Shihman was sentenced in federal court to 45 months’ imprisonment on July 26, 2019. Gennady Nudelman was sentenced in federal court to 32 months’ imprisonment on May 8, 2019. Shihman and Nudelman are currently serving their sentences at a Bureau of Prisons facility.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation that led to the prosecutions of Abrams, Khizgilov, Shaulov, Shihman and Nudelman.
Texas Rapper Charged in Narcotics and Prescription Opioid ConspiracyRead the Press Release
Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, Texas, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond, Texas; Leon Covin, 47, Katy, Texas; and Toni Maria Nalintya, 48, Pearland, Texas.
The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. CDT tomorrow. The others made their appearances earlier this week.
A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018 to 2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston.
The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety and Drug Enforcement Administration. Trial Attorney Devon Helfmeyer with the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jason Corley 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.
Texas Man Indicted on Charge of Possession of 30 Kilograms of CocaineRead the Press Release
BOSTON – A Texas man was indicted yesterday by a federal grand jury in connection with possession of 30 kilograms of cocaine.
Javier Robledo Perez, 36, of Houston, Texas, was indicted on one count of possession with intent to distribute five kilograms or more of cocaine. Perez was previously charged by criminal complaint and arrested on May 24, 2020.
As alleged in charging documents, on May 24, 2020, following a traffic stop in Charlton, law enforcement officers seized 30 brick-shaped objects suspected to be kilograms of cocaine from the cab of the semi-truck Perez was driving. Agents conducted field tests on two of the brick-shaped objects, both of which tested positive for the presence of cocaine.
The charge of possession with intent to distribute of five kilograms or more of cocaine carries a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement from United States Attorney Andrew E. LellingRead the Press Release
“After extensive deliberations, including consideration of the views of the many victims in this case, the Justice Department has decided to ask the Supreme Court to review the First Circuit Court of Appeals’ decision to reverse the death penalty, in an effort to preserve the jury’s verdict sentencing Dzhokhar Tsarnaev to death. Our hope is that this will result in reinstatement of the original sentence and avoid a retrial of the death penalty phase.
First, we respectfully disagree with the merits of the appellate court’s decision. Second, Dzhokhar Tsarnaev is an ideologically driven mass killer who, with his brother, detonated at the finish line of the Boston Marathon two home-made bombs specifically designed to rip people apart, killing three – a young boy and two women – maiming seventeen, and injuring hundreds; shot a police officer three times in the head so they could steal his sidearm; and exchanged thousands of rounds with police officers in Watertown. I have heard, and respect, the voices calling for the Department to drop its pursuit of the death penalty in this case. But the severity of Tsarnaev’s crimes place him in that narrow category of criminals for whom death is a proportional punishment. Some have argued that executing Tsarnaev will not deter others from pursuing similar crimes. But, ultimately, this decision is not about deterrence. It is about justice.”
St. Thomas Man Sentenced to Prison for Smuggling 23 Kilos of Cocaine Through the Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Shahime Ludvig, Jr., 22, of St. Thomas, was sentenced today on his conviction of possessing cocaine with intent to distribute, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Robert A. Molloy, sentenced Ludvig to 33 months incarceration, five years supervised release, and ordered him to forfeit $1,991 to the United States, and pay a $100 special assessment.
According to court records, on September 24, 2018, Ludvig appeared at the Cyril E. King Airport with approximately 23 kilos of cocaine in his luggage. He checked the luggage and proceeded to the departure lounge to board a Delta Airlines flight to Atlanta Georgia. During a routine screening, Customs and Border Protection (CBP) discovered the cocaine. CBP located Ludvig at the departure lounge and detained him. Agents from Homeland Security Investigations (HSI) arrived at the airport and placed Ludvig under arrest. Ludvig ultimately pleaded guilty to attempting to smuggle the cocaine.
This case was investigated by Homeland Security Investigations and Customs and Border Protection. It was prosecuted by Assistant United States Attorney Everard E. Potter.
St. Paul Felon Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging MIKLOS TERREL DATES, JR., 25, with one count of possession of a firearm by a felon. DATES, who was taken into custody earlier today, made his initial appearance before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota. DATES was ordered to remain in custody pending a formal detention and arraignment hearing, which is currently scheduled for August 24, 2020 at 4:30 pm, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul.
According to allegations in the indictment, on June 19, 2020, DATES possessed a Diamondback Model DB9 9mm semiautomatic pistol. Because DATES has prior felony convictions in Ramsey County, Blue Earth County, and U.S. District Court for the District of Minnesota, 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 St. Paul Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service. 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 Thomas Calhoun-Lopez 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:
MIKLOS TERREL DATES, JR., 25
St. Paul, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Springfield Man Involved in Nightclub Shooting Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for illegally possessing a firearm.
Keyshaun Isaiah Jackson, 23, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Aug. 19, to 15 years in federal prison without parole. Jackson was sentenced as an armed career criminal due to his prior felony convictions.
On July 24, 2018, Jackson pleaded guilty to being a felon in possession of a firearm.
According to court documents, Jackson was involved in a shooting at Martha’s Vineyard night club, 219 West Olive, Springfield, Mo., on April 11, 2018. Jackson and another individual exchanged gunfire in the parking lot as pedestrians in the parking lot began running away or taking cover. Both men ran from the scene when police officers arrived.
Officers found eight .40-caliber spent shell casings in the parking lot and noted a bullet hole in the front driver’s side fender of Jackson’s black 2010 Nissan Maxima, where he had been sitting when the shooting began. Officers also found a Glock .40-caliber semi-automatic pistol inside the car.
The next day, April 12, 2018, police officers responded to a disturbance at a Springfield residence. Jackson had barricaded himself inside for some time, but eventually left the residence and was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jackson has prior felony convictions for forgery, receiving stolen property, burglary, resisting/interfering with arrest, and was on probation at the time of this federal offense.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney William L. Meiners. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.South Carolina Couple Pleaded Guilty to Scheme Involving Conspiracy and False Statements to Illegally Obtain a U.S. PassportRead the Press Release
WASHINGTON – A Huger, South Carolina couple pleaded guilty today in South Carolina before the U.S. District Judge Brucie H. Hendricks in the District of South Carolina to charges stemming from their conspiracy to obtain a U.S. passport by falsely claiming they were the biological parents of a baby born in the Philippines and by using false birth records to apply for a U.S. passport for the baby.
Gerald Vincent Locker Jr., 46, pleaded guilty to one count of conspiracy, and Stephanie Jean Locker, 43, pleaded to one count of conspiracy and one count of making false statements in an application for passport.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and U.S. Attorney Peter M. McCoy of the District of South Carolina made the announcement.
According to the court record, in 2014, Gerald Locker Jr., a former member of the U.S. Marine Corps, was stationed in Japan with his dependent spouse, Stephanie Jean Locker. While in Japan, the couple attempted to circumvent legal adoption processes by asserting that a baby from the Philippines was their own natural born child. Presenting a number of falsified documents (including a false birth certificate) to a U.S. Consular Officer, Stephanie Locker applied for a Consular Report of Birth Abroad. She falsely attested, in support of her application for a passport for the child, that while in the Philippines on vacation she learned she was pregnant five days before the baby was born. Upon learning they would have to submit to DNA testing, the Lockers ultimately abandoned the baby, leaving the child in the care of a local family in the Philippines. The child was later placed with a foster family in the Philippines.
This case was investigated by Naval Criminal Investigative Services (NCIS). The case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Dean Secor of the District of South Carolina.
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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.
South Carolina Couple Pleaded Guilty to Scheme Involving Conspiracy and False Statements to Illegally Obtain a U.S. PassportRead the Press Release
A Huger, South Carolina couple pleaded guilty today in South Carolina before the U.S. District Judge Brucie H. Hendricks in the District of South Carolina to charges stemming from their conspiracy to obtain a U.S. passport by falsely claiming they were the biological parents of a baby born in the Philippines and by using false birth records to apply for a U.S. passport for the baby.
Gerald Vincent Locker Jr., 46, pleaded guilty to one count of conspiracy, and Stephanie Jean Locker, 43, pleaded to one count of conspiracy and one count of making false statements in an application for passport.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and U.S. Attorney Peter M. McCoy of the District of South Carolina made the announcement.
According to the court record, in 2014, Gerald Locker Jr., a former member of the U.S. Marine Corps, was stationed in Japan with his dependent spouse, Stephanie Jean Locker. While in Japan, the couple attempted to circumvent legal adoption processes by asserting that a baby from the Philippines was their own natural born child. Presenting a number of falsified documents (including a false birth certificate) to a U.S. Consular Officer, Stephanie Locker applied for a Consular Report of Birth Abroad. She falsely attested, in support of her application for a passport for the child, that while in the Philippines on vacation she learned she was pregnant five days before the baby was born. Upon learning they would have to submit to DNA testing, the Lockers ultimately abandoned the baby, leaving the child in the care of a local family in the Philippines. The child was later placed with a foster family in the Philippines.
This case was investigated by Naval Criminal Investigative Services (NCIS). The case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Dean Secor of the District of South Carolina.
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.
Serial Child Predator in Philadelphia Sentenced to 25 Years for Producing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Maurice Neal, 31, of Philadelphia, PA was sentenced to 25 years in prison and lifetime supervised release by United States District Court Judge Timothy J. Savage for producing child pornography.
In November 2019, the defendant pleaded guilty to one count of manufacturing child pornography, stemming from his sexual abuse of a 12-year-old child (Minor #1) as she slept, and recording the abuse on his cell phone. He covered the victim’s face with a cloth to avoid her eyes from looking at him, and stopped only because he thought another child sleeping nearby was stirring. The sexual assault of this child was the second in a series of assaults of children that Neal committed. At the time that he documented his sexual abuse of Minor #1, Neal already had an active arrest warrant issued by the Philadelphia Police Department for his sexual molestation of a different child (Minor #2), who was only six-years-old. And after sexually abusing Minor #1 and Minor #2, Neal then began molesting two additional young girls: another six-year-old (Minor #3) and a nine-year-old (Minor #4).
Neal was charged and pleaded guilty to these sexual offenses (assaulting Minors #1-4) in the Commonwealth of Pennsylvania, and was sentenced to 25 to 50 years in state prison for these crimes. While he was incarcerated, the video of his abuse of Minor #1 was discovered, and the defendant was then charged with the federal offense of manufacturing child pornography.
“Maurice Neal left a trail of young, vulnerable victims in his wake,” said U.S. Attorney McSwain. “In a few short months, he took advantage of every opportunity to prey upon children in homes in which he was staying, horrifically abusing four little girls within his grasp and causing incalculable damage. Working with our law enforcement partners, we will hold defendants like Maurice Neal accountable and pursue justice for the victims.”
“Put simply, Maurice Neal is a predator,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He sexually violated multiple children, documenting some of that abuse. It’s vital that he stay locked away where he can’t hurt any more kids. The FBI and our partners at the Philadelphia Police Department won’t ever stop fighting to protect children from being so horrifically exploited.”
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.
The case was investigated by the Federal Bureau of Investigation in partnership with the Philadelphia Police Department and Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Priya DeSouza and Special Assistant United States Attorney Megan Curran.
Roseboro Man Sentenced to 31 Years’ Imprisonment After Carjacking and Multi-Victim Robbery SpreeRead the Press Release
RALEIGH, N.C. – A Roseboro man was sentenced today to 372 months in prison for carjacking, possession of a firearm in furtherance of the carjacking, possession of a stolen firearm, and possession of a firearm and ammunition by a felon. The defendant, Demery Bernard McLymore, 26, was convicted by jury trial in February of each of the four counts alleged in the indictment.
The evidence at trial showed that beginning in the afternoon of Saturday, September 3, 2016, and running into the early morning hours of the next day, McLymore committed a series of armed robberies, involving a dozen total victims.
Around 8:00 p.m. on that Saturday night, McLymore and another man, Ambrose Lassiter, approached a group of six boys who were in a car that had just parked at the Brantwood Court apartments in Roseboro, North Carolina. The boys, the oldest of which was 18, had gotten together to go to a party that evening. McLymore pulled out a silver handgun and ordered them out of the car. Lassiter tried to intervene but backed away when McLymore threatened to kill everyone. McLymore then proceeded to rob the boys, holding the firearm to the neck of one boy, and against the torso of two more. He collected a few dollars, a cell phone, and also took one boy’s shoes. McLymore then ordered the driver to drive him and Lassiter to Clinton. The boy did so, as McLymore sat in the passenger seat with the gun on his lap.
Not long after being dropped off in Clinton, McLymore approached a woman who was walking down the street in an area of Clinton known as “the Block.” He showed her that he was carrying the silver handgun, and after walking with her for a few minutes, he pulled out the gun and walked her at gunpoint into an apartment where she had been headed. McLymore proceeded to rob the resident of a wristwatch at gunpoint, but the woman was able to run out of the front door.
McLymore next appeared about a mile away at the Spirit convenience store in Clinton. In the parking lot of the store, he encountered two young men in a truck, who were stopping by the store on their way out of town for a party. McLymore asked for a ride to his girlfriend’s residence on the Block, and the men agreed. Once at the girlfriend’s residence, McLymore claimed to have lost a pistol. As the men looked for the pistol, McLymore grabbed a shotgun belonging to the driver that had been on a rack in the truck. He pointed the gun at both men and then forced the passenger, at gunpoint, to walk down the road with him.
A couple blocks down the road, McLymore spotted two young boys, 13 and 16 years old, and approached them with the shotgun. He pointed the shotgun at the boys’ chin and chests, then forced the passenger of the truck to check the boys’ pockets for money. McLymore then ordered the boys to strip to their underwear, before running back in the direction of his girlfriend’s house.
Clinton Police Department officers at this time were investigating the earlier residential robbery, and one officer spotted McLymore walking with a shotgun behind a house. With a tip from a neighbor, law enforcement tracked McLymore to the residence he had identified as his girlfriend’s house. They found him in a bedroom with a wristwatch, wadded up money, a shotgun shell, and over three dozen .380 caliber bullets in his pockets. Behind the house, officers found the stolen shotgun, loaded with three shotgun shells that matched the one found in McLymore’s pocket.
Mr. Higdon commented: “Demery McLymore was a one man crime wave. And he is just the kind of offender that we are Taking Back North Carolina from as part of our initiative to rid our communities of those individuals who make them unsafe. We are gratified by the sentence the Court imposed today because every day McLymore spends in prison is a safer day in the streets of the Eastern District.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Clinton Police Department, Sampson County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorneys Jake D. Pugh and Aakash Singh prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-0148-D.
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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.
Rock Island Man Sentenced to Prison for Assault on Postal WorkerRead the Press Release
DAVENPORT, Iowa – On August 19, 2020, United States District Court Judge Stephanie M. Rose sentenced Bryan Christopher Hanson, age 24, of Rock Island, Ill., to ten months in prison for assault on a postal worker, announced United States Attorney Marc Krickbaum. Hanson was ordered to serve three years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
On November 18, 2019, Hanson pleaded guilty to the offense. The investigation began after a report was made by a mail carrier that a male was harassing her. Hanson sought the postal carrier out and physically grabbed her while she was on duty. She was able to run away, but the defendant continued to pursue and got into his car and followed her. The mail carrier received help from a bystander before police arrived.
This matter was investigated by the United States Postal Inspection Service and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Repeat Sex Offender Sentenced for Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Kansas man with a prior rape conviction was sentenced today to 197 months in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said. In addition, he was ordered to pay $95,000 in restitution.
James Minter, 47, Linwood, Kan., pleaded guilty to one count of receipt and distribution of child pornography. In his plea, he admitted that law enforcement received a report from CyberTipline (https://www.missingkids.org/gethelpnow/cybertipline ) that he had uploaded a file containing child pornography via the internet. Investigators tracked the upload to a Minter’s residence in Linwood. More than 1,000 images and 200 videos depicting the sexual abuse of children were seize from Minter’s devices.
In 1998, Minter was convicted of rape and criminal sodomy after assaulting a 5-year-old child. He was released from prison in May 2018.
McAllister commended the Wichita Internet Crimes Against Children Task Force and Assistant U.S. Attorney Kim Flannigan for their work on the cases.
Puerto Rico Legislator and Two Capitol Employees Indicted for Theft and BriberyRead the Press Release
On Wednesday, a federal grand jury in the District of Puerto Rico returned an eight-count indictment against legislator Nelson Del Valle Colon (Del Valle Colon), a member of the Puerto Rico House of Representatives, as well as two of his employees, Nickolle Santos-Estrada (Santos) and her mother Mildred Estrada-Rojas (Estrada), for their alleged participation in a multi-year theft, bribery, and kickback conspiracy.
The indictment charges Del Valle Colon, Santos, and Estrada with conspiracy as well as theft, bribery, and kickbacks concerning programs receiving federal funds. Del Valle Colon is facing two additional counts of honest services wire fraud, and one count of obstruction of justice for destroying data on his cell phone.
According to the allegations in the indictment, in early 2017, Del Valle Colon fraudulently inflated the salaries of Santos, Estrada, and another individual for no legitimate reason, and corruptly agreed that out of their inflated paychecks, the employees would keep a portion for themselves and kick back the other portion, generally between approximately $500 and $2,000, to Del Valle Colon.
“Puerto Rico legislator Nelson Del Valle Colon and his employees allegedly embarked on a years-long conspiracy to enrich themselves by embezzling funds and using bribes and kickbacks to defraud the Commonwealth of Puerto Rico,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “As this case shows, the Department of Justice and our law enforcement partners are committed to holding elected officials accountable for corrupt conduct.”
“Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “In this case, the citizens of Puerto Rico were betrayed by legislator Del Valle Colon, an elected official who abused his position for personal gain, and who must be held accountable for violating one of the basic tenets of public trust, that is, serving his constituents with integrity and honesty. The U.S. Attorney’s Office, and our law enforcement partners, will continue to relentlessly investigate and prosecute anyone who tries to undermine our system of government.”
“As we have said numerous times, public corruption is and will continue to be a priority for the FBI,” said Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office. “May today be a reminder that we will not tolerate corruption and we will act swiftly to remove those who would violate public trust. Special thanks to our DOJ partners for their support of our mission.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks to Del Valle Colon. Allegedly, Santos, Estrada, and the other individual would sometimes transfer cash by hand to Del Valle Colon. The defendants would also sometimes transfer kickbacks in approximately $500 increments to Del Valle Colon using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones.
The honest services wire fraud counts against Del Valle Colon involve WhatsApp messages sent by Del Valle Colon that furthered the scheme to defraud and deprive the citizens and the government of the Commonwealth of Puerto Rico of their right to Del Valle Colon’s honest services.
The indictment also charges Del Valle Colon with obstruction of justice. After becoming aware of the investigation into illegal activities at his legislative office in or about July 2020, Del Valle Colon deleted data on his cell phone including communications between himself and Santos, and between himself and Estrada.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Puerto Rico Legislator and Two Capitol Employees Indicted for Theft and BriberyRead the Press Release
WASHINGTON – On Wednesday, a federal grand jury in the District of Puerto Rico returned an eight-count indictment against legislator Nelson Del Valle Colon (Del Valle), a member of the Puerto Rico House of Representatives, as well as two of his employees, Nickolle Santos-Estrada (Santos) and her mother Mildred Estrada-Rojas (Estrada), for their alleged participation in a multi-year theft, bribery, and kickback conspiracy.
The indictment charges Del Valle, Santos, and Estrada with conspiracy as well as theft, bribery, and kickbacks concerning programs receiving federal funds. Del Valle Colon is facing two additional counts of honest services wire fraud, and one count of obstruction of justice for destroying data on his cell phone.
According to the allegations in the indictment, in early 2017, Del Valle Colon fraudulently inflated the salaries of Santos, Estrada, and another individual for no legitimate reason, and corruptly agreed that out of their inflated paychecks, the defendants would keep a portion for themselves and kick back the other portion, generally between approximately $500 and $2,000, to Del Valle Colon.
“Puerto Rico legislator Nelson Del Valle Colon and his employees allegedly embarked on a years-long conspiracy to enrich themselves by embezzling funds and using bribes and kickbacks to defraud the Commonwealth of Puerto Rico,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “As this case shows, the Department of Justice and our law enforcement partners are committed to holding elected officials accountable for corrupt conduct.”
“Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “In this case, the citizens of Puerto Rico were betrayed by legislator Del Valle Colón, an elected official who abused his position for personal gain, and who must be held accountable for violating one of the basic tenets of public trust, that is, serving his constituents with integrity and honesty. The U.S. Attorney’s Office, and our law enforcement partners, will continue to relentlessly investigate and prosecute anyone who tries to undermine our system of government.”
“As we have said numerous times, public corruption is and will continue to be a priority for the FBI,” said Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office. “May today be a reminder that we will not tolerate corruption and we will act swiftly to remove those who would violate public trust. Special thanks to our DoJ partners for their support of our mission.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks to Del Valle Colon. Allegedly, Santos, Estrada, and the other individual would sometimes transfer cash by hand to Del Valle Colon. The defendants would also sometimes transfer kickbacks in approximately $500 increments to Del Valle Colon using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones.
The honest services wire fraud counts against Del Valle Colon involve WhatsApp messages sent by Del Valle Colon that furthered the scheme to defraud and deprive the citizens and the government of the Commonwealth of Puerto Rico of their right to Del Valle Colon’s honest services.
The indictment also charges Del Valle Colon with obstruction of justice. After becoming aware of the investigation into illegal activities at his legislative office in or about July 2020, Del Valle Colon deleted data on his cell phone including communications between himself and Santos, and between himself and Estrada.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Project Guardian: Beckley Man Pleads Guilty to Federal Gun ChargeRead the Press Release
HUNTINGTON, W.Va. – A Beckley man has pled guilty to a federal gun crime, announced United States Attorney Mike Stuart. Justin J. Monroe, 34, pled guilty to being a felon in possession of a firearm.
Monroe admitted that on September 20, 2019, a vehicle in which he was a passenger was stopped by the West Virginia State Police for speeding along Interstate 64 near Hurricane. Troopers later searched the vehicle, which was being driven by an inebriated driver, and recovered a Glock model 23 .40 caliber pistol. Monroe claimed ownership of the firearm on the scene, and later admitted to law enforcement that he knew he was a convicted felon which barred him from possessing the firearm, but that he chose to keep it for protection. Monroe has two prior felony convictions in Raleigh County Circuit Court.
Monroe faces a maximum of 10 years in prison when sentenced on November 16, 2020.
The West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.
The case is being prosecuted as part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office is prosecuting this case with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00047.
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Phoenixville Hospital and Firstsource Solutions Agree to Pay $325,000 to Resolve False Claims Act Allegations of Submitting Altered Government FormsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Phoenixville Hospital and Phoenixville Hospital Co., LLC (“Phoenixville Hospital”) has agreed to pay $100,000 to resolve alleged violations of the False Claims Act by causing the submission of altered forms to the Pennsylvania Department of Human Services, which administers Medicaid in Pennsylvania. Additionally, Firstsource Solutions, Ltd., Firstsource Solutions USA, LLC, and its predecessor Medassist, Inc. (collectively “Firstsource Solutions”), a revenue cycle management services provider operating in Pennsylvania, has agreed to pay $225,000 for processing the alleged false claims on Phoenixville Hospital’s behalf.
Phoenixville Hospital, a community healthcare provider, delivers comprehensive medical services, including emergency room care and inpatient admissions. Phoenixville Hospital accepts patients whose hospital stays are paid for by the Medicaid program. The United States contends that Phoenixville Hospital caused the submission of false claims to Medicaid for inpatient treatment and/or emergency room visits billed by Phoenixville Hospital. On certain occasions, Phoenixville Hospital allegedly caused to be altered one of the standard Pennsylvania Department of Public Welfare General Assistance Forms, the Employability Assessment Form (PA Form 1663), to exclude the option for the medical provider to certify that the self-pay patient was “Employable.” The United States contends that, in some cases, the patient was therefore not disabled and not entitled to Medicaid coverage for the treatment being billed by the hospital. The United States further contends that Phoenixville Hospital caused to be submitted such forms from January 2008 through February 2012 and that some of these claims for Medicaid beneficiaries were false in light of Phoenixville Hospital’s conduct.
Firstsource Solutions provides revenue cycle management services to hospitals, assisting with the submissions for determination of eligibility of self-pay (uninsured) patients to the Medicaid program. The government alleges that from August 2009 through February 2012, Firstsource Solutions knowingly submitted or caused the submission of false claims to Medicaid for inpatient treatment and/or emergency room visits billed by the client, Phoenixville Hospital.
The allegations that are the subject of today’s settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The Act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases. The whistleblowers in these cases will receive a total of approximately $60,000 of the settlement.
“My Office will continue to investigate credible allegations of fraud against federal healthcare programs, especially when the alleged conduct has potential implications for patient treatment,” said U.S. Attorney McSwain. “Hospitals that treat Medicaid patients and the entities that process Medicaid claims must know the billing and payment rules required by those programs, and abide by them. We would also like to thank the citizens and their lawyers who initially brought this case to our attention.”
“Investigating allegations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for the Office of the Inspector General, U.S. Department of Health and Human Services. “We will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare and Medicaid Programs.”
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800‑HHS‑TIPS (1-800-447-8477).
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorneys Viveca D. Parker and Scott W. Reid, with assistance from auditor George Niedzwicki. The lawsuits are captioned United States ex rel. Daniel Dimarzio v. Firstsource Solutions, LTD, Firstsource Solutions USA, LLC, and Medassist, Inc., Civil Action No. 12-1464 and United States ex rel. Susan Wilson v. Phoenixville Hospital, et al., Civil Action No. 15-596.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Omaha Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Marie Schaeffer, 57, of Omaha, Nebraska, was sentenced today to 144 months in prison by United States District Judge Robert F. Rossiter, Jr. for possession with intent to distribute 500 grams or more of a mixture of methamphetamine. There is no parole in the federal system. Upon her release from prison, Schaeffer will serve five years of supervised release.
On November 16, 2019 in North Platte, Nebraska, a Nebraska State Patrol trooper stopped Schaeffer for following too close and failure to stop at a stop sign. Schaeffer was asked for consent to search the vehicle, and she granted consent. Law enforcement located a garbage bag in the right rear passenger seat and inside was 15 one-pound bags of methamphetamine.
This case was investigated by the Nebraska State Patrol.
Nigerian Citizen Residing in Canada Extradited to the Western District of Texas to Face Federal Charges Related to Fraudulent “Sweepstakes” SchemeRead the Press Release
Harry Cole (aka Akintomide Ayoola Bolu, aka John King, aka Big Bro, aka Egbon), a 50-year-old Nigerian citizen and a resident of Canada, was extradited today from Canada to face federal charges for his alleged role in a fraudulent “sweepstakes” scheme with an intended loss in excess of $300 million.
U.S. Attorney John F. Bash; Acting Special Agent in Charge Roderick Benson, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division, announced the extradition.
“If you defraud Americans, it doesn’t matter where you are in the world. The United States government will work tirelessly to find you, extradite you, and hold you accountable for your crimes,” stated U.S. Attorney Bash.
“Today’s extradition of Harry Cole demonstrates the power of the American judicial system,” IRS-CI Acting Special Agent in Charge Benton. “Despite the fact that Cole was living in Canada, special agents were able to track him because of our strong relationships with our international law enforcement agencies and bring him to justice.”
“HSI is committed to using our broad authority and global presence to bring international fugitives to justice,” said HSI Special Agent in Charge Folden. “Today’s extradition of Harry Cole demonstrates that HSI and our international law enforcement partners will be diligent in our efforts to locate and hold accountable those individuals who defraud U.S. citizens.”
“The U.S. Postal Inspection Service (USPIS) is charged with defending the nation’s mail system from illegal use, no matter where those crimes originate,” said USPIS Inspector in Charge Gonzalez. “This scheme targeted one of our country’s most vulnerable populations, the elderly. Postal Inspectors will continue to work tirelessly with our local, state and federal law enforcement partners to investigate these crimes and bring the perpetrators to justice.”
A federal grand jury indictment, returned in September 2018, charges Cole with one count of conspiracy to commit wire fraud (Sweepstakes) and one count of conspiracy to commit money laundering. Each count upon conviction calls for up to 20 years in federal prison. Cole, who remains in federal custody pending his Initial Appearance in Austin, Texas tomorrow afternoon, is one of eight defendants charged in connection with this scheme.
The others include: Akintola Akinmadeyemi; Austin residents Joel Calvin and Clarence Barefield (aka CJ); Mesquite, TX, resident Donna Lundy; Nigerian citizens and Canadian residents Emmanuel Olawale Ajayi (aka Wale, aka Walata), Tony Dada Akinbobola (aka Lawrence D Awoniyi, aka Boss Tony, aka Toyin) and Bolaji Akinwunmi Oyewole (aka BJ, aka Beejay).
According to the indictment, the defendants carried out their sweepstakes scheme from 2012 to 2016. Cole allegedly purchased lists from Lundy of elderly potential victims and their addresses. He and other conspirators based in the Toronto, Ontario Canada metropolitan area sent packages containing fraudulent sweepstakes information to conspirators residing in the U.S. The packages contained thousands of mailers, which U.S.-based conspirators sent to victims notifying them that they had won a sweepstakes. Each mailer included a fraudulent check issued in the name of the victim, usually in the amount of $8,000, and a pre-addressed envelope. Victims were instructed to deposit the check into their bank account, immediately withdraw between $5,000 and $7,000 dollars in cash or money orders and send the money to a “sweepstakes representative” to facilitate the victim collecting his or her prize. By the time the victim was notified by the bank that the deposited check was fraudulent, the cash or money order had been sent by the victim and received by the defendants or conspirators. The intended loss from this scheme was over $300 million, with an actual loss of more than $900,000.
The indictment also alleges that from June 2015 through June 2016, Emmanuel Ajayi led a Stolen Identity Refund Fraud (SIRF) scheme in which over 1,200 fraudulent Income Tax Returns were filed using stolen Personal Identifying Information (PII) requesting $25 million in tax refunds. Ajayi used bank accounts involved in the sweepstakes scheme to receive refunds and funnel the money to conspirators in the U.S. An IRS analysis determined that this scheme resulted in the actual loss of approximately $3.4 million paid from the U.S. Treasury.
In order to acquire the money generated by the Sweepstakes and SIRF schemes, the conspirators operated a money laundering conspiracy in the U.S. That conspiracy employed knowing and unknowing participants to conduct financial transactions with the goals of moving the proceeds from both fraudulent schemes outside of the U.S. without detection by law enforcement.
Defendants Akinbobola, Ajayi and Oyewole are considered fugitives. On March 9, 2020, Akinmadeyemi was sentenced to ten years in federal prison. On May 27, 2020, Barefield was sentenced to eight years in federal prison. Both were ordered to pay, jointly and severally, $111,870.25 in restitution. Defendants Calvin and Lundy, who pleaded guilty to the money laundering conspiracy charge, are scheduled for sentencing in Austin on March 9, 2021, before U.S. District Judge Lee Yeakel.
IRS-CI, HSI, and USPIS investigated this case. Assistant U.S. Attorneys Michael C. Galdo and Neeraj Gupta are prosecuting this case on behalf of the government. Attorneys with the Justice Department’s Office of International Affairs assisted with the extradition of Cole from Canada.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.
NextHealth Marketer Charged in $60 Million Kickback SchemeRead the Press Release
A pharmacy marketer who allegedly collected more than $60 million in illegal kickbacks has been charged with violating the federal Anti-Kickback Statute, Northern District of Texas First Assistant U.S. Attorney Prerak Shah announced today.
On Tuesday, a federal grand jury indicted Vinson Woodlee, owner of Med Left LLC, on one count of conspiracy to pay and receive healthcare kickbacks and three counts of soliciting and receiving healthcare kickbacks.
According to the indictment, Mr. Woodlee, 68, served as a marketer for NextHealth, a pharmacy and laboratory services company controlled by Andrew Hillman and Semyon Narosov.
NextHealth allegedly identified the industry’s most profitable prescriptions – including compound pain cream, scar cream, pain patches, and wellness supplements – then illegally paid physicians to prescribe those medications through NextHealth pharmacies, funneling some of the kickbacks through marketers like Mr. Woodlee.
In exchange for enlisting physicians to participate in the scheme, Mr. Woodlee allegedly demanded roughly 50% of the profits from each prescription and refill written by the doctors he recruited. He then funneled a portion of the money on to prescribing physicians and sub-marketers, keeping the rest for himself.
From 2012 to 2018, Mr. Woodlee allegedly collected more than $60 million in kickbacks. Of the $60 million, he passed $16.8 million on to “his” physicians and $30.6 million on to sub-marketers who likely passed a portion along to “their” physicians. (Over that same period, NextHealth fraudulently billed insurers more than $700 million and received hundreds of millions of dollars in tainted proceeds.)
Because NextHealth billed federal insurers like Medicare, TRICARE, CHAMPVA, and FECA in addition to private insurers, NextHealth and its marketers were subject to the federal Anti-Kickback Statute (AKS), which prohibits the knowing and willful payment of remuneration to induce or reward referrals for drugs or services payable by federal healthcare programs. Knowing that some of the NextHealth kickbacks likely violated the AKS, Mr. Woodlee allegedly took a number of steps to conceal them:
First, he attempted to exploit the AKS’s bona fide employee exception, which allows employers to pay W2 wages to legitimate employees. From 2013 to 2014, under the auspice of an employment relationship, he and NextHealth disguised the kickbacks as his “salary” and “bonuses.”
Later, he agreed that rather than disguising the kickbacks as his wages, NextHealth would disguise the payments as wages to three of his family members, Persons A, B, and C, who NextHealth “hired” as account executives in December 2014. On multiple occasions between 2014 and 2016, Mr. Woodlee corresponded with NextHealth about their compensation.
Then, in spring 2016, Mr. Woodlee executed a new contract with NextHealth, increasing his commission on non-federal insurance prescriptions from 50 percent to 58 percent, effectively compensating himself for federal insurance prescriptions written in violation of the AKS.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Woodlee is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 35 years in federal prison.
In a separate case, NextHealth’s Andrew Hillman and Semyon Narasov pleaded guilty to money laundering conspiracy. According to court documents, the pair admitted NextHealth used marketers to funnel illegal kickbacks to physicians, attempted to conceal the payments, and submitted fraudulent claims to insurers. Mr. Hillman was sentenced to 66 months in federal prison; Mr. Narasov was sentenced to 76 months.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Food & Drug Administration Office of Criminal Investigations, the U.S. Department of Defense Office of Inspector General, DOD’s Defense Criminal Investigative Service, IRS Criminal Investigation, the U.S. Department of Justice Office of Inspector General, the U.S. Postal Inspection Service, the U.S. Office of Personnel Management Office of Inspector General, and HHS’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Chad Meacham and Andrew Wirmani are prosecuting the case.
U.S. Attorney Erin Nealy Cox has been recused from this matter. Per direction from Department of Justice ethics officials, Northern District of Texas First Assistant U.S. Attorney Prerak Shah will act as U.S. Attorney with respect to this matter pursuant to the authority conferred by 28 U.S.C. § 515.
Newport Navy Base Civilian Employee Pleads Guilty to Possessing Child PornographyRead the Press Release
PROVIDENCE – A Naval Station Newport employee found to have stored hundreds of images of child pornography on a United States Navy owned computer drive has pleaded guilty in U.S. District Court in Providence to a charge of possession of child pornography, in a Project Safe Childhood case brought by the United States Attorney's Office.
According to information, Donald E. Sly, Jr., 58, of Portsmouth, a civilian public works employee at Naval Station Newport, stored a total of 487 images of child pornography in his directory on a computer drive used by United States Navy personnel at naval bases throughout the East coast.
According to information presented to the court, upon discovery of the images of child pornography on the computer drive, Sly’s access to the drive was suspended. He later admitted to Naval Criminal Investigative Service agents that he knowingly possessed the images of child pornography discovered on the computer drive.
Appearing before U.S. District Court Chief Judge John J. McConnell, Jr., Sly pleaded guilty to possession of child pornography, announced United States Attorney Aaron L. Weisman and Michael Wiest, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service.
The defendant is scheduled to be sentenced on November 13, 2020.
Possession of child pornography is punishable by statutory penalties of up to 20 years in federal prison, five years to lifetime supervised release, and a fine of up to $250,000.
This Project Safe Childhood case is being by prosecuted Assistant U.S. Attorney Terrence P. Donnelly.
The Department of Justice’s Project Safe Childhood initiative was launched to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state, and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation.
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Mexican National Charged with Marijuana Cultivation Operation in Stanislaus National Forest in Tuolumne CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Eleno Fernandez-Garcia, 36, a native and citizen of Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, and damaging public lands and natural resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, the cultivation operation consisted of over 1,000 marijuana plants and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones covered with marijuana debris. The cultivation operation is alleged to have caused significant damage to the environment. The area is near recreational activities and a natural spring used for bottled water.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, and Campaign Against Marijuana Planting (CAMP) of the California Department of Justice. Integral Ecology Research Center, a nonprofit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Fernandez-Garcia is scheduled for arraignment on the indictment on August 21. If convicted of the drug conspiracy and manufacturing offenses, he faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The environmental charge carries a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. In addition, the defendant may be liable for restitution to the U.S. Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Managing Partner of T.E.H. Realty Indicted for Wire Fraud and Bank Fraud Tied to Twenty-Eight Million Dollars in Bank LoansRead the Press Release
St. Louis, MO – Michael Fein was indicted today with two felony charges of wire fraud and bank fraud related to bank loans made to T.E.H. Realty connected to the purchase and operations of various multi-family apartment complexes in St. Louis, Kansas City, and elsewhere.
According to the Indictment, Fein was an owner and vice president of T.E.H. Management, and an owner and manager of a number of T.E.H. affiliated companies which owned and operated multi-family apartment complexes throughout the United States. Fein was responsible for the day-to-day operations of T.E.H. Management and the various T.E.H. affiliated companies. T.E.H. Management and its affiliated companies owned and operated the Pinnacle Ridge apartment complex in the St. Louis area, as well as the Green Village Townhomes apartment complex in Kansas City, Missouri and the Ivy Place Apartments apartment complex in Tulsa, Oklahoma.
Between 2016 and 2018, Fein, on behalf of a T.E.H. affiliated company, entered into an agreement for the purchase of the Pinnacle Ridge apartment complex in the St. Louis, Missouri area. In order to purchase Pinnacle Ridge, Fein applied for and obtained a $2,800,000 loan from a financial institution lender. In order to obtain the loan, Fein submitted false documents to the lender, including substantially inflated rent rolls for Pinnacle Ridge, inflated income statements for Pinnacle Ridge, and inflated summaries of real estate purportedly owned by T.E.H. affiliated companies. Fein also submitted a false loan application to the lender which inflated the occupancy rate for Pinnacle Ridge, and inflated monthly net rental income for Pinnacle Ridge. Based upon the false documents submitted and false representations made by Fein, the purchase loan closed on May 16, 2018, at which time Fein and the T.E.H. affiliated company took over ownership and management of Pinnacle Ridge.
Between 2016 and 2017, Fein, on behalf of a T.E.H. affiliated company, applied for and obtained a $12,500,000 refinance loan from a financial institution and Fannie Mae (the Federal National Mortgage Association) to refinance the outstanding loan on the Green Village apartment complex in the Kansas City, Missouri area. A T.E.H. affiliated company owned and managed Green Village. In order to obtain the refinance loan, Fein submitted false documents to the lender and Fannie Mae, including inflated rent rolls for Green Village which falsely inflated the occupancy rates for Green Village, and false operating statements which inflated the rental income for Green Village. Based upon the false documents submitted and false representations made by Fein, the $12,500,000 refinance loan closed on February 13, 2017. As part of the refinance transaction, and in addition to paying off the outstanding loan balance on Green Village, the T.E.H. affiliated company received $6,000,080.27 at the time of closing.
During 2017, Fein, on behalf of a T.E.H. affiliated company, applied for and obtained a $7,700,000 refinance loan from a financial institution and Freddie Mac (the Federal Home Loan Mortgage Corporation) to refinance the outstanding loan on the Ivy Place apartment complex in the Tulsa, Oklahoma area. A T.E.H. affiliated company owned and managed Ivy Place. In order to obtain the refinance loan, Fein submitted false documents to the lender and Freddie Mac, including inflated rent rolls for Ivy Place which falsely inflated the occupancy rates for Ivy Place, and false operating statements which inflated the total property income for Ivy Place. Based upon the false documents submitted and false representations made by Fein, the $7,700,000 refinance loan closed on December 28, 2017. As part of the refinance transaction, and in addition to paying off the outstanding loan balance on Ivy Place, the T.E.H. affiliated company received $977,754.52 at the time of closing.
During 2019, Fein, on behalf of a T.E.H. affiliated company, applied for a $5,225,000 loan from a financial institution, insured by FHA (the U.S. Department of Housing and Urban Development, Federal Housing Administration), to purchase the Hanley Crossings apartment complex in the St. Louis, Missouri area. In order to obtain the loan, Fein submitted false documents to the lender and FHA, including a falsely inflated summary of real estate purportedly owned by T.E.H. affiliated entities, which falsely inflated the occupancy rates of twenty-six of the listed multi-family apartment complexes by approximately 18% each. This loan was not ultimately funded by the lender and FHA.
During March 2020, as a result of substantial tenant complaints concerning substandard living conditions in T.E.H. owned and operated apartment complexes, the federal government suspended taxpayer-subsidized housing contracts and funding to T.E.H. affiliates in the St. Louis and Kansas City, Missouri areas. As many of the residents living in T.E.H. apartment complexes were members of low-income households, receiving federal housing assistance, the federal government provided transfer vouchers to those residents to assist them in moving to appropriate housing.
“A $12.5 million refinance loan for a Kansas City, Missouri, apartment complex was just one part of a $28 million dollar fraud scheme alleged to have occurred in three cities. Today’s indictment alleges the owner of T.E.H. Management and affiliated companies defrauded several financial institutions, illegally enriching himself even as he provided substandard living conditions for his low-income tenants,” said United States Attorney Tim Garrison, of the Western District of Missouri.
United States Attorney Jeff Jensen, of the Eastern District of Missouri, stated, “I want to thank the victims of this defendant’s alleged predatory practices for having the willingness to stand up and speak out. Without the courage of these tenants, this case may never have come to be. As a group, they shed light on the unacceptable living conditions being forced upon them and served as the spark that uncovered this entire fraud.”
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the United States Department of Housing and Urban Development – Office of Inspector General. Assistant United States Attorney Hal Goldsmith is handling the case for the Eastern District of Missouri, and Assistant United States Attorney Kate Mahoney is handling the case for the Western District of Missouri.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Man Sentenced to 40 Years in Prison for Shooting at PoliceRead the Press Release
Court found Randall Comly responsible for attempted murder of police officers
DES MOINES, Iowa – On August 20, 2020, in the United States District Court for the Southern District of Iowa, Randall Lee Comly, age 53, of Stuart, was sentenced to 40 years in federal prison following his guilty pleas to possession with intent to distribute methamphetamine, discharging a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm, announced United States Attorney Marc Krickbaum. At sentencing, the United States presented evidence that Comly, a multi-time convicted drug dealer, attempted to murder four law enforcement officers.
On the night of October 17, 2019, officers with the Stuart Police Department and Guthrie County Sheriff’s Office went to Comly’s residence in Stuart to arrest him on valid arrest warrants for second-degree arson and a probation violation.
Comly ambushed the officers, jumped out of a closet, and emptied his gun by firing six rounds at a sheriff’s deputy who stood only a few feet away. During the resulting exchange of gunfire, two Sheriff’s deputies were shot. After the shooting, Comly barricaded himself inside the apartment and a hostage negotiation team was called. Comly eventually gave himself up and was arrested just before midnight. A search of Comly’s residence revealed methamphetamine and items used in drug trafficking.
Comly has a lengthy criminal history, including three prior felony drug trafficking convictions. He was serving a state term of probation when he attempted to murder the four officers on October 17, 2019. Based on Comly’s criminal history, the Court found him to be an armed career criminal.
In announcing the sentence, United States Attorney Marc Krickbaum said, “We thank and commend the law enforcement officers from the Guthrie County Sheriff’s Office and the Stuart Police Department who in this case put their lives on the line to protect the people in their community from a violent criminal. Randall Comly tried to murder those officers. He tried to take husbands away from their wives, and fathers away from their children so that he could escape justice. Justice was delivered today in federal court, and we are grateful.”
Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Kansas City Field Division, Marino Vidoli said, “We are thankful for the heroic actions taken by these deputies and officers. At the very heart of ATF’s mission to investigate violent firearms crime is bringing armed criminals like Randall Comly to justice. Today’s sentencing ensures that he will be held accountable for his dangerous actions and prevented from engaging in further violence.”
The investigation was spearheaded by the ATF. Investigative support was provided by the Iowa Division of Criminal Investigation, Adair County Sheriff’s Office, Guthrie County Sheriff’s Office, and the Stuart Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, with assistance from the Adair County Attorney’s Office.
Man Arrested on Charges of $21 Million H-1B Visa Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Sterling man was arrested today on charges of conspiracy to commit visa fraud and for inducing aliens to come to the United States using fraudulently obtained H-1B visas.
According to court documents, Ashish Sawhney, 48, allegedly used four corporations to orchestrate the improper submission of fraudulent applications for H-1B specialty-occupation work visas. The six-count indictment identifies Sawhney as the director or registered agent for Value Consulting, LLC, Value Software Products, Inc. (formerly known as Value Consulting, Inc.), Business Pointers, Inc., and E-Train ERP, Inc., each of which had offices located in the Eastern District of Virginia and purported to provide information technology staffing and software development services for commercial clients in the United States. Sawhney submitted or caused to be submitted H-1B visa application materials stating that the foreign workers named in the applications would fulfill a specific job, where in fact, no such job existed at the time of filing. The indictment alleges that through Sawhney’s ownership and direction of the scheme, his companies generated gross profits from 2011 to 2016 of approximately $21 million. The indictment further alleges that Sawhney, who is an Indian national, attempted to naturalize as a United States citizen by submitting an application containing false statements.
Sawhney is charged with two counts of conspiracy, three counts of inducing an alien to come to and reside in the United States for commercial advantage or private financial gain, and one count of attempted naturalization fraud. If convicted, Sawhney faces a maximum penalty of 10 years 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.
The case is being investigated by the Document and Benefit Fraud Task Force, which is comprised of multiple agencies including the Department of Homeland Security’s Homeland Security Investigations, the U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Department of Labor’s Office of Inspector General, and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security that coordinate investigations into fraudulent immigration documents.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Edwin Guard, Special Agent-in-Charge of the Diplomatic Security Service’s Washington Field Office; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Ron M. Rosenberg, District Director, District S2, U.S. Citizenship and Immigration Services Office, made the announcement. Assistant U.S. Attorneys Raizza K. Ty and Ronald L. Walutes, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-192.
Lexington Man Sentenced to 165 Months for Two CarjackingsRead the Press Release
LEXINGTON, Ky. - A Lexington man, Jody Shipman, 29, was sentenced in federal court on Thursday, to 165 months in prison, by Chief U.S. District Judge Danny Reeves, for carjacking, with the intent to inflict serious bodily harm or death, on two occasions.
Shipman pleaded guilty to two, separate carjackings, in January and February 2019. According to his plea agreement, in January 2019, Shipman approached a Lexington woman at her apartment, demanded her vehicle, phone, and wallet, and threatened her with force. He later used her ATM card at a gas station. Then, in February 2019, Shipman approached a second female victim, at Lexington’s St. Joseph Hospital, forcing her inside her vehicle and driving her to an ATM machine, to withdraw money from her account.
Under federal law, Shipman must serve 85 percent of his prison sentence. Following his release, he will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Lawrence Weathers, Chief, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the Lexington Police Department and ATF. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
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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Lexington Man Sentenced to 10 Years in Federal Prison on Firearm and Methamphetamine ChargesRead the Press Release
Columbia, South Carolina – United States Attorney Peter M. McCoy, Jr., announced today that John Francis Donohue, 40, of Lexington, was sentenced to ten years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition, and to distribution of and possession with intent to distribute methamphetamine.
Evidence presented in court established that on June 5, 2018, deputies with the Lexington County Sheriff’s Department, along with agents from South Carolina Department of Probation, Parole and Pardon Services, went to a Lexington County residence to locate Donohue, who had outstanding warrants. During Donohue’s arrest, deputies noticed gun holsters on the floor of his bedroom and ultimately recovered three firearms and assorted ammunition belonging to Donohue, who admitted to possessing them while on state probation.
Further evidence presented in court established that Donohue was also being investigated for drug activities by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and deputies from the Lexington County Sheriff’s Department. On January 22, 2019, Donohue, while armed with a firearm, distributed methamphetamine to an undercover agent and confidential informant. This was one of many documented occasions where Donohue was armed during his drug-dealing activities. Additionally, during several of the transactions, Donohue sold firearms to the undercover agent and confidential informant.
Information presented to the court showed that Donohue was prohibited from possessing firearms and ammunition based upon prior convictions for criminal domestic violence and drug-related crimes. Specifically, Donohue was convicted of conspiracy to manufacture methamphetamine in Lexington County in April 2013 and sentenced to seven and a half years suspended upon two years of probation. One month after being placed on probation, Donohue was arrested and later convicted of shoplifting. Five months after that, while still on state probation, Donohue was arrested for possession with intent to distribute methamphetamine in Lexington County, and was ultimately convicted and sentenced to 15 years suspended upon two days’ time served and five years of probation. Less than one year later, Donohue was again arrested in Lexington County for distribution of methamphetamine and was convicted in April 2016 and sentenced to 25 years suspended upon five years of probation. Donohue was on that probation when deputies arrested him on the outstanding warrants and found him in possession of three firearms and assorted ammunition in June 2018.
United States District Judge Mary G. Lewis sentenced Donohue to 120 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the ATF and Lexington County Sheriff’s Department. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit Solicitor’s Office and Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted 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.
Leaders of ‘We Build the Wall’ Online Fundraising Campaign Charged with Defrauding Hundreds of Thousands of DonorsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Office of the United States Postal Inspection Service (“USPIS”), announced the unsealing of an indictment charging BRIAN KOLFAGE, STEPHEN BANNON, ANDREW BADOLATO, and TIMOTHY SHEA for their roles in defrauding hundreds of thousands of donors in connection with an online crowdfunding campaign known as “We Build the Wall” that raised more than $25 million. The defendants were arrested this morning. KOLFAGE will be presented today before U.S. Magistrate Judge Hope T. Cannon in the Northern District of Florida. BANNON will be presented today in the Southern District of New York. BADOLATO will be presented today before U.S. Magistrate Judge Thomas Wilson in the Middle District of Florida. SHEA will be presented today before U.S. Magistrate Judge Kristen L. Mix in the District of Colorado. The case is assigned to U.S. District Judge Analisa Torres in the Southern District of New York.
Acting U.S. Attorney Audrey Strauss said: “As alleged, the defendants defrauded hundreds of thousands of donors, capitalizing on their interest in funding a border wall to raise millions of dollars, under the false pretense that all of that money would be spent on construction. While repeatedly assuring donors that Brian Kolfage, the founder and public face of We Build the Wall, would not be paid a cent, the defendants secretly schemed to pass hundreds of thousands of dollars to Kolfage, which he used to fund his lavish lifestyle. We thank the USPIS for their partnership in investigating this case, and we remain dedicated to rooting out and prosecuting fraud wherever we find it.”
Inspector-in-Charge Philip R. Bartlett said: “The defendants allegedly engaged in fraud when they misrepresented the true use of donated funds. As alleged, not only did they lie to donors, they schemed to hide their misappropriation of funds by creating sham invoices and accounts to launder donations and cover up their crimes, showing no regard for the law or the truth. This case should serve as a warning to other fraudsters that no one is above the law, not even a disabled war veteran or a millionaire political strategist.”
According to the Indictment[1] unsealed today in Manhattan federal court:
Starting in approximately December 2018, BRIAN KOLFAGE, STEPHEN BANNON, ANDREW BADOLATO, and TIMOTHY SHEA, and others, orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as “We Build The Wall” that raised more than $25 million to build a wall along the southern border of the United States. In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would “not take a penny in salary or compensation” and that “100% of the funds raised . . . will be used in the execution of our mission and purpose” because, as BANNON publicly stated, “we’re a volunteer organization.”
Those representations were false. In truth, KOLFAGE, BANNON, BADOLATO, and SHEA received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations. In particular, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall, while BANNON, through a non-profit organization under his control (“Non-Profit-1”), received over $1 million from We Build the Wall, at least some of which BANNON used to cover hundreds of thousands of dollars in BANNON’s personal expenses. To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BANNON, BADOLATO, and SHEA devised a scheme to route those payments from We Build the Wall to KOLFAGE indirectly through Non-Profit-1 and a shell company under SHEA’s control, among other avenues. They did so by using fake invoices and sham “vendor” arrangements, among other ways, to ensure, as KOLFAGE noted in a text message to BADOLATO, that his pay arrangement remained “confidential” and kept on a “need to know” basis.
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KOLFAGE, 38, of Miramar Beach, Florida, BANNON, 66, of Washington, D.C., BADOLATO, 56, of Sarasota, Florida, and SHEA, 49, of Castle Rock, Colorado, are each charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, each of which carries a maximum penalty of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the USPIS and the Special Agents of the United States Attorney’s Office for the Southern District of New York. She also thanked the U.S Attorney’s Office for the Northern District of Florida for their assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Nicolas Roos, Alison G. Moe, and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Kenmore Man Charged with Production and Possession of Child PornographyRead 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 David Rubel, 38, of Kenmore, NY, was arrested and charged by complaint with production and possession of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, a parent filed a report with the Town of Tonawanda Police Department, alleging that the defendant had been texting his daughter, who recently turned 16 years-old (Victim), and that some of the texts he observed were sexual in nature. The parent observed inappropriate images on his daughter’s cell phone within a text thread between the Victim and Rubel.
With the consent of the Victim’s father, a Town of Tonawanda Detective searched the cell phone and observed the text messages, some of which included sexual images. According to the complaint, investigators also searched the defendant’s cell phone and recovered sexual images, including two videos, that were also found on the Victim’s cell phone, within the string of text messages between Ruble and the Victim.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions, to include home detention.
The complaint is the result of an investigation by the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Justice Department Settles with Gates Chili Central School District to Ensure Equal Access for Students with Service AnimalsRead the Press Release
The Justice Department announced today that it reached an agreement with the Gates Chili Central School District in Rochester, New York, to resolve the department’s lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA).
The department’s complaint alleges that the school district denied a student with disabilities equal access to school by conditioning her use of a service dog on her parent providing a full-time dog handler, despite the student’s demonstrated ability to control and handle her service dog with minimal assistance and the service dog’s extensive training to serve and respond to the student and follow school routines. Ultimately, the family relocated to another school district where the child could exercise her right to use her service dog without unnecessary and discriminatory conditions. Since their move two years ago, the student has successfully acted as the handler of her service dog in her new school.
“For years, the school district in this case violated the Americans with Disabilities Act by limiting this child’s use of her service dog based on unfounded assumptions and generalizations about her disabilities,” said Assistant Attorney General Eric Dreiband. “Families should not have to uproot their lives, disrupt their child’s education, move away from friends, and pay tens of thousands of dollars because a school district fails or refuses to respect the civil rights of children. Service animals today are trained to perform tasks that foster autonomy and independence for students with a myriad of disabilities. This agreement sends a powerful message that the Justice Department is committed to ensuring that no child with a disability is limited in what he or she can achieve because of the fears or prejudices of others.”
“The ADA guarantees individuals with disabilities equal access and equal opportunity in all areas of community life, including in schools,” said James P. Kennedy, Jr., U.S. Attorney for the Western District of New York. “This agreement is an important step forward in ensuring that students with disabilities can fully participate at school and in all educational programs.”
Under the settlement agreement, the school district revised its Service Animal Policy consistent with the ADA and the district court’s rulings in this case and will train staff on the revised policy. The school district also agreed to provide reasonable modifications to facilitate the use of a service dog by a student with a disability. Such modifications include the types of minimal assistance the school district refused to provide the student in this case, such as helping to tether or untether a service dog, assisting a student to get water for a service dog, and prompting a student to issue commands to a service dog. In addition, the school district will pay the student’s mother $42,000 for out-of-pocket expenses and damages for emotional distress. This matter was jointly litigated by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of New York.
July 26, 2020 marked the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Settles with Gates-Chili Central School District to Ensure Equal Access for Students with Service AnimalsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY – The Justice Department announced today that it reached an agreement with the Gates Chili Central School District in Rochester, New York, to resolve the Department’s lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA).
The Department’s complaint alleges that the School District denied a student with disabilities equal access to school by conditioning her use of a service dog on her parent providing a full-time dog handler, despite the student’s demonstrated ability to control and handle her service dog with minimal assistance and the service dog’s extensive training to serve and respond to the student and follow school routines. Ultimately, the family relocated to another school district where the child could exercise her right to use her service dog without unnecessary and discriminatory conditions. Since their move two years ago, the student has successfully acted as the handler of her service dog in her new school.
Under the settlement agreement, the School District revised its Service Animal Policy consistent with the ADA and the district court’s rulings in this case and will train staff on the revised policy. The School District also agreed to provide reasonable modifications to facilitate the use of a service dog by a student with a disability. Such modifications include the types of minimal assistance the School District refused to provide the student in this case, such as helping to tether or untether a service dog, assisting a student to get water for a service dog, and prompting a student to issue commands to a service dog. In addition, the School District will pay the student’s mother $42,000 for out-of-pocket expenses and damages for emotional distress. This matter was jointly litigated by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of New York.
“For years, the School District in this case violated the Americans with Disabilities Act by limiting this child’s use of her service dog based on unfounded assumptions and generalizations about her disabilities,” said Assistant Attorney General Eric Dreiband. “Families should not have to uproot their lives, disrupt their child’s education, move away from friends, and pay tens of thousands of dollars because a school district fails or refuses to respect the civil rights of children. Service animals today are trained to perform tasks that foster autonomy and independence for students with a myriad of disabilities. This agreement sends a powerful message that the Justice Department is committed to ensuring that no child with a disability is limited in what he or she can achieve because of the fears or prejudices of others.”
“The ADA guarantees individuals with disabilities equal access and equal opportunity in all areas of community life, including in schools,” said James P. Kennedy, Jr., U.S. Attorney for the Western District of New York. “This agreement is an important step forward in ensuring that students with disabilities can fully participate at school and in all educational programs.”
July 26, 2020 marked the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the Department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.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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Indiana Man Pleads Guilty to Distributing PesticidesRead the Press Release
An Indiana man who distributed unregistered pesticides to the tenants and managers of an apartment building he owned has pleaded guilty to three counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
Cai Feng Yang, aka Kevin Yang, 41, of La Porte, Indiana, pleaded guilty today before U.S. Magistrate Judge John E. Martin in the Northern District of Indiana. Sentencing has been scheduled for Oct. 27, 2020.
According to court records, during trips to China in September 2015 and January 2016, Yang purchased multiple boxes of unregistered pesticides labeled “cockroach killer bait” and “cockroach gum bait,” as well as several small unlabeled bottles of liquid pesticide containing the active ingredient dichlorvos. Yang transported these pesticides to the United States in his checked luggage with the intent to use them in his La Porte apartment buildings to exterminate cockroaches and bed bugs. None of these pesticides were registered with the EPA as required by FIFRA. For that reason, Yang was obligated to submit a Notice of Arrival (NoA) prior to importing these products into the United States, which he failed to do. He also failed to declare this merchandise to Customs upon his return to the United States.
After returning from China, Yang distributed the vials of granular cockroach killer bait and the syringes of gelatinous cockroach gum bait to tenants renting apartments at 701 Maple St. and 606 Tipton Street. Yang also provided his part-time assistant building managers at 701 Maple Street an unlabeled bottle of pesticide containing dichlorvos to be applied in apartments to kill bed bugs. On several occasions, Yang applied the liquid pesticide in tenants’ apartments himself.
This case was investigated by the EPA-Criminal Investigation Division with assistance from the Office of Indiana State Chemist.
Trial Counsel R.J. Powers of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Toi Denise Houston, Northern District of Indiana and Regional Criminal Enforcement Counsel David Mucha 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.
Independence Man Charged with Illegal Firearms, Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man was charged in federal court today with illegally possessing firearms and with drug trafficking after twice leading officers on high-speed vehicle pursuits.
Charles V. Bai, 27, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City.
Today’s federal criminal complaint charges Bai with two counts of being a felon in possession of a firearm and one count of possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of today’s federal criminal complaint, an Independence police officer spotted a Toyota 4Runner parked in the garage at Bai’s residence on March 17, 2020. The officer recognized the vehicle, which was stolen, as the same vehicle Bai had been driving during a high-speed chase a few days earlier. In that earlier incident, on March 11, 2020, federal agents with the U.S. Marshals Service had attempted to apprehend Bai on a felony arrest warrant. Bai struck a Marshals Service vehicle and was able to elude law enforcement after a brief vehicle pursuit was terminated due to Bai traveling at excessive speeds.
When Bai left the residence driving the Toyota 4Runner, officers attempted to stop him but he fled and a pursuit was initiated. The pursuit continued for several minutes through Independence and ended on Blue Ridge Cutoff at Interstate 70 after Bai’s vehicle was involved in a single car accident, rendering the vehicle inoperable. Bai fled on foot but was apprehended by officers. During the apprehension, law enforcement received an emergency call regarding a gun that was lying in the road on eastbound Interstate 70, outside of the center lane, west of Noland Road. An officer recovered the Ruger 9mm pistol with an extended magazine. The extended magazine of the handgun had been run over by passing motorists and approximately 26 9mm bullets were spread across Interstate 70. When officers searched the Toyota 4Runner they found four handgun magazines, 24 rounds of 9mm ammunition, and a handgun holster. Investigators also found Facebook messages from Bai offering the pistol for sale.
The affidavit also refers to a road rage incident that occurred on March 8, 2020. A motorist reported his/her vehicle being shot while driving on 24 Highway and Sterling Avenue in Independence. The victim reported that the shooter, driving a Toyota 4Runner, pulled up beside the driver’s side of his/her truck, brandished a black handgun with an extended magazine, and fired three shots at him/her, striking the victim’s vehicle with all three rounds.
According to the affidavit, Bai told investigators after his arrest that he purchased large quantities of methamphetamine on multiple occasions.
Bai was stopped by Kansas City police officers on Wednesday, Aug. 19. He was driving a 2006 Chevrolet Monte Carlo, but was unable to provide a driver’s license or proof of insurance on the car. The license plate on the Monte Carlo was registered to another vehicle. Bai was issued a municipal summons and released. Officers prepared to have the car towed, but found a loaded Smith & Wesson .40-caliber semi-automatic pistol in the driver’s side door panel (in a cavity where a speaker had been removed). Officers determined the pistol had been stolen.
Officers then located Bai, who was driving another vehicle, and arrested him. Bai had a bag of 3.6 grams of methamphetamine in his front pants pocket and had been holding a box that contained items associated with drug distribution.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Bai has prior felony convictions for tampering with a motor vehicle, resisting arrest by fleeing and creating a substantial risk of injury or death, unlawful use of a weapon, resisting/interfering with an arrest, possessing a controlled substance, and unlawfully transporting firearms.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Illegal possession of firearm sends Billings man to prisonRead the Press Release
BILLINGS — A Billings man who admitted stealing a firearm from a vehicle was sentenced today to 63 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said. He also was sentenced to a concurrent 18 months in prison for violating the terms of his release on a previous federal conviction.
Dustin Neal Saksa, 36, pleaded guilty in February to being a prohibited person in possession a firearm. He also admitted to violating the terms of his supervised release.
U.S. District Judge Susan P. Watters presided.
The prosecution presented evidence in court records that Saksa was involved in an
April 2017 theft of a semi-automatic firearm and a purse with credit cards from an unlocked truck. Law enforcement officers responded to businesses in Billings where one of the stolen credit cards was used or attempted to be used. The investigation led officers to a witness who provided information about Saksa going into the victim's vehicle. The stolen firearm was recovered about a month later. Saksa was prohibited from possessing a firearm because of a previous felony conviction.Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Houston rapper charged in narcotics and prescription opioid conspiracyRead the Press Release
HOUSTON – Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond; Leon Covin, 47, Katy; and Toni Maria Nalintya, 48, Pearland.
The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. tomorrow. The others made their appearances earlier this week, some of whom were ordered into custody pending detention hearings scheduled for Monday, Aug. 24.
A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018-2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston.
The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.
If convicted on the illegal narcotics charges, West, Rawlins and Pharms face up to life in prison and possible fines up to $10 million. For each count of the prescription drug charges, West also faces up to 20 years in prison as well as additional fines up to $1 million along with the six others.
The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety, Drug Enforcement Administration, Texas Department of Criminal Justice - Office of Inspector General, Harris County Sheriff’s Office and Texas Office of the Attorney General – Medicaid Fraud Control Group. Assistant U.S. Attorney Jason Corley and DOJ Trial Attorney Devon Helfmeyer are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Herkimer County Woman Sentenced to Serve 18 Months for Stealing Social Security FundsRead the Press Release
SYRACUSE, NEW YORK – Shannon Hardy Sekel, age 33, of Herkimer, New York, was sentenced yesterday to serve 18 months in federal prison for her guilty pleas to Conspiracy to Steal Government Funds and Bank Fraud, announced United States Attorney Grant C. Jaquith, Special Agent in Charge John Grasso-Social Security Administration-Office of the Inspector General (“SSA-OIG”), New York Field Division, and New York State Police Superintendent Keith Corlett.
The sentence imposed yesterday followed the defendant’s guilty plea in May 2018, in which Sekel admitted that she conspired from 2009 to 2013 with her mother, TammyLynn Sterling Barthelmess, to steal the social security benefits paid to D.W., a deceased man whose death was unknown to the Social Security Administration. D.W.’s remains were discovered in an advanced state of decomposition inside a dog-crate behind an unoccupied house owned by TammyLynn Sterling Barthelmess, Sekel’s mother and co-conspirator. Following the death of D.W., Barthelmess and Shannon Hardy Sekel used his checking account to steal Social Security retirement benefits that were deposited in the account each month. Barthelmess and Sekel wrote hundreds of checks from D.W.’s checking account until the payments stopped in May 2013 after his skeletonized remains were found and reported to Little Falls Police. Thereafter, an investigation conducted by the New York State Police and the Social Security Administration Office of Inspector General determined that Social Security retirement payments paid into D.W.’s checking account following his death were stolen by Sekel and Barthelmess.
In imposing sentence yesterday, Shannon Hardy Sekel was also ordered to serve a three-year term of supervised release following completion of her prison sentence, and ordered to pay restitution (with her co-conspirator) to the U.S. Social Security Administration (SSA) in the amount of $110,910.00.
Sekel’s co-conspirator, TammyLynn Sterling Barthelmess, pled guilty during trial on February 26, 2020, and was sentenced on August 5, 2020 to serve 24 months in prison, a three (3) year term of supervised release, and ordered to pay (with Sekel) $110,910.00 restitution to the U.S. Social Security Administration.
This case was investigated by the United States Social Security Administration-Office of Inspector General (SSA-OIG”), the New York State Police, and the City of Little Falls Police Department, and was prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Richard R. Southwick, with assistance from the Herkimer County District Attorney’ Office.
Henry County Convicted Felon Sentenced to 15 Years for Possession of Meth and GunRead the Press Release
Jackson, TN – Donald Blaine Ashby, 39, has been sentenced to 180 months in federal prison for possession with intent to distribute 50 grams or more of actual methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, on July 26, 2018, the Paris, Tennessee, Police Department stopped a vehicle of which Ashby was located in the backseat and recovered 51.6 grams of actual methamphetamine. The defendant was subsequently charged with various state law violations and released on bail.
On September 12, 2018, the Benton County Sheriff's Department received a call regarding an unconscious person in a vehicle near Highway 70 West in Camden, Tennessee. When officers arrived, they observed United States currency all over the floorboard of the vehicle, along with the defendant asleep behind the wheel. Officers were able to wake the defendant and ultimately searched the vehicle, finding 274.09 grams of actual methamphetamine and a .25 caliber pistol.
Because of his prior felony convictions, including possession of methamphetamine with the intent to distribute and felon in possession of a weapon, Ashby is prohibited by federal law from possession of firearms or ammunition.
On August 18, 2020, U.S. Chief District Court Judge S. Thomas Anderson sentenced Ashby to 180 months in federal prison followed by five years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Ashby is a dangerous recidivist drug offender who was destroying the community by his sale of highly potent and poisonous drugs, and his prior felony convictions have finally caught up with him. Thanks to the great investigative work by our federal and local law enforcement partners, he has been held accountable and his removal from the community will make citizens safer."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Paris, Tennessee Police Department; the Benton County Sheriff’s Department and the Drug Enforcement Administration (DEA) investigated this case.
Assistant U.S. Attorney Hillary L. Parham prosecuted this case on behalf of the government.
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Hartford Man Sentenced to More Than 7 Years in Federal Prison for Distributing Fentanyl, Other DrugsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAQUAN LEGGETT, also known as “Tipsy,” 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 92 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and other narcotics.
According to court documents and statements made in court, in January 2019, law enforcement received information that Leggett and Dante Barnes, also known as “Tre,” were trafficking narcotics in Hartford. The investigation revealed that Leggett and Barnes were using Leggett’s residence on Lenox Street in Hartford to package and store fentanyl and other drugs. Between January and March 2019, investigators conducted multiple controlled purchases of fentanyl and cocaine from Barnes in Hartford and Farmington.
Leggett and Barnes were arrested on March 5, 2019. On that date, a search of Leggett’s residence revealed 169 bags of fentanyl, approximately two grams of unpackaged fentanyl, approximately four grams of crack cocaine, approximately two grams of cocaine, and items used to process and package narcotics for street sale. A search of Barnes’ Farmington residence revealed 440 bags of fentanyl, approximately 23 grams of unpackaged fentanyl, approximately 32 grams of crack cocaine, items used to package narcotics for street sale, and $24,160 in cash.
Leggett’s criminal history includes state convictions for firearm and drug offenses, and a federal conviction for possession of ammunition by a convicted felon. In August 2012, he was sentenced to 57 months of imprisonment for the federal offense.
Leggett has been detained since his arrest. On October 28, 2019, he pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine base (“crack”).
On October 28, 2019, Barnes pleaded guilty to one count of possession with intent to distribute fentanyl. On February 10, 2020, he was sentenced to 60 months of imprisonment. He also forfeited the cash that was seized at the time of his arrest, and a 2007 Audi A6 3.2Q.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Halfway House Escapee Sentenced to 21 MonthsRead the Press Release
ALBANY, NEW YORK – Autumn Saglimbeni, age 35, was sentenced today to 21 months in prison for escaping from Horizon House Residential Re-entry Center on November 7, 2019, announced United States Attorney Grant C. Jaquith.
Saglimbeni pled guilty on March 11, 2020. As part of her guilty plea, she admitted that in October 2015, she was committed to the custody of the U.S. Bureau of Prisons for a term of 77 months, and that, while she was serving the remainder of her prison term at a federal halfway house, she left the halfway house without permission.
In addition to a term of imprisonment, Saglimbeni will be required to serve a post-imprisonment supervised release term of 3 years.
The case was investigated by the United States Marshals Service. The case was prosecuted by Assistant United States Attorney Ashlyn Miranda.