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Wednesday 24 June 2020
Reality TV star indicted on federal chargesRead the Press Release
ATLANTA - Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been indicted by a federal grand jury. Fayne is charged with bank fraud, making a false statement to a federally-insured financial institution, and money laundering, all in connection with a Paycheck Protection Program (PPP) loan. In addition, Fayne is charged with wire fraud in connection with a Ponzi scheme.
“The emergency lending provisions of the Paycheck Protection Program were intended to help small businesses survive the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Fayne allegedly used PPP loan proceeds to live a luxurious lifestyle that included leasing a Rolls Royce and purchasing expensive jewelry, as well as making payments to individuals involved in a Ponzi scheme. We intend to investigate and charge anyone who inappropriately diverts these critical funds for personal gain.”
“Despite the difficult times the recent Coronavirus pandemic has caused, the FBI and our federal partners continue to be vigilant in making sure funds provided by programs like PPP are used as intended,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won't allow anyone's personal greed to misdirect federal emergency assistance to their own pockets, rather than go to the businesses who need it to stay afloat.”
“The Paycheck Protection Program is intended to keep the nation’s small businesses afloat during these unprecedented times,” said Inspector General Hannibal “Mike” Ware of the Small Business Association Office of Inspector General. “It is unconscionable to fraudulently attempt to gain access to PPP funds at the expense of those who need it most. Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs . I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: From approximately August 2014 through approximately May 2020, Fayne posed as the owner of a profitable trucking business. In truth, Fayne’s trucking business never generated enough revenue to cover its expenses. Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business. Fayne promised that he would use the investors’ money to purchase and operate trucks. Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself. During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.
On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of his trucking business, Flame Trucking, stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”
As soon as Fayne took control of the PPP loan proceeds, he began using the PPP loan proceeds for improper purposes, including the following:
- $40,000 for past-due child support;
- $50,000 for restitution owed in a previous fraud case;
- $65,000 in cash withdrawals;
- $85,000 for custom-made jewelry;
- $136,000 to lease a 2019 Rolls-Royce;
- $230,000 to associates who helped him run a Ponzi scheme;
- $907,000 to help an associate start a new business.
Fayne allegedly structured those financial transactions to conceal and disguise the nature, location, source, ownership, and control of the proceeds, which raised red flags at UCB. When UCB asked Fayne to provide additional information about Flame Trucking’s finances, Fayne responded by sending UCB what he represented to be October, November, and December 2019 bank statements for Flame Trucking’s account at Arvest Bank. As Fayne knew, however, those bank statements were fraudulent, because Arvest Bank had shut down Flame Trucking’s account in September 2019.
- When Fayne was interviewed by federal agents, he claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking. Fayne expressly denied using any of the PPP loan proceeds for personal purposes.
During the investigation, federal agents seized the following proceeds of Fayne’s bank fraud scheme:
- $617,000 seized from seven bank accounts;
- $136,000 used as a down payment on the 2019 Rolls-Royce;
- $79,482 in cash seized at Fayne’s residence;
- eight Kenworth T-680 trucks;
- six Great Dane refrigerated trailers;
- a $3,750 diamond ring;
- a $24,500 diamond bracelet; and
- a $52,000 Rolex watch.
Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was indicted on June 24, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation in conjunction with the Atlanta Complex Financial Crimes Task Force supported by the Gwinnett County Sheriff’s Office, and the Small Business Administration-Office of the Inspector General are investigating this case.
Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Previously convicted sex offender pleads guilty to federal child pornography and international kidnapping chargesRead the Press Release
ALBUQUERQUE, N.M. – Clarence Michael Ransom, 52, of Las Cruces, New Mexico pleaded guilty in federal court in Las Cruces on June 23 to one count of attempted production of child pornography, two counts of international parental kidnapping and one count of failure to report international travel as a sex offender.
In Ransom’s plea agreement, he admitted having at least ten sexually explicit conversations over an online social networking and dating platform in May 2019. Ransom believed he was chatting with a 14-year-old girl. The other party to the conversations was actually an undercover law enforcement officer. Ransom used extremely sexual and coercive language to try to obtain sexually explicit photographs of the person he though was a child. Ransom engaged in these conversations in Doña Ana County, New Mexico.
Ransom also admitted kidnapping his two children from their mother, who he shared custody with, and fleeing with them to Mexico on Oct. 8, 2019. Mexican law enforcement later arrested Ransom and transported him back to the United States for prosecution.
Ransom is required to register as sex offender based on a conviction in 1991 for engaging in an unlawful sexual act with a child under 12. Ransom violated federal requirements to update his sex offender registration and to notify the proper authorities when he left the United States.
Ransom is currently in custody awaiting sentencing. He faces from 25 to 50 years in prison.
The FBI and United States Marshal Service investigated this case with the assistance of the Las Cruces Police Department. Assistant U.S Attorney Matilda M. Villalobos and Mark A. Saltman are prosecuting the case.
Petal Woman Sentenced to 15 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Cheri Jessica Cox, 39, of Petal, was sentenced today by Senior U.S. District Judge Keith Starrett to 180 months in prison, followed by 5 years of supervised release and a $5,000 fine, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. Cox’s federal sentence was ordered to run concurrent with the balance of her Forrest and Lamar County sentences.
From September 2018 through November 2018, in Hattiesburg, Cox sold methamphetamine on four separate occasions. During a traffic stop on December 7, 2018, by a Forrest County Sheriff’s Deputy, Cox was in possession of 2 ounces of methamphetamine. At sentencing, Cox was held responsible for 149.5 grams of methamphetamine.
Cox was originally indicted on July 24, 2019 and pled guilty before Judge Starrett on November 26, 2019.
The case was investigated by the 12th Circuit Court Narcotics Enforcement Team, the Forrest County Sheriff’s Department and the Federal Bureau of Investigation. Assistant United States Attorney Annette Williams prosecuted the case.
Paving Company Owner Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a Chelmsford paving company pleaded guilty last week to a payroll tax scheme resulting in a $300,000 tax loss.
Robert W. Joyce, 59, of Carlisle, pleaded guilty on Friday, June 19, 2020 to one count of willful failure to collect and pay over taxes. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 20, 2020.
For tax years 2012 through at least 2014, Joyce paid a portion of the wages to employees of his two companies, Allied Paving and Allied Equipment, “under the table.” He did so by paying them from his own personal bank account, rather than through the business accounts. In doing so, Joyce did not collect, account for, or pay the IRS the income withholding and FICA taxes that he, as the employer, was required to. Joyce also caused Allied Paving and Allied Equipment to file false returns with the IRS which underreported the actual wages he paid his employees, as well as the employment taxes due to the IRS. In total, Joyce caused a loss to the IRS of at least $331,060.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Sara Miron Bloom of Lelling’s Criminal Division are prosecuting the case.
Owner of Construction Company Sentenced to 18 Months in Prison for Tax Evasion and Bankruptcy FraudRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 18 months in prison for tax evasion and bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Patrick Franconeri, 57, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of tax evasion and one count of concealment of assets in bankruptcy. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Franconeri was the owner and operator of several construction businesses that performed work for a major insurance company in New Jersey. During tax year 2014, as a result of the operation of the construction companies, Franconeri earned taxable income of $1,362,950, on which there was an income tax owing to the United States of $558,439. However, Franconeri failed to file a tax return or request an extension for that year.
Franconeri took actions to conceal and attempt to conceal his income so that he would not have to pay taxes on it, including cashing checks at check-cashing facilities so that the money would not come to the attention of the IRS.
Franconeri also filed a Chapter 7 bankruptcy petition in U.S. District Court in Newark on March 11, 2010, but knowingly and fraudulently concealed property belonging to his bankruptcy estate from the United States Trustee. Franconeri concealed and failed to disclose his ownership and operation of his construction companies, as well as $965,575 in income he had received in the prior two years as the owner and operator of his construction companies.
In addition to the prison term, Judge Martinotti sentenced Franconeri to three years of supervised release and ordered him to pay restitution of $716,569 to the victims of his bankruptcy offense and $558,349 in restitution to the IRS.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
Owner and Operator of Tennessee Drug Screening Lab Plead Guilty to Health Care FraudRead the Press Release
ABINGDON, VIRGINIA – Michael Norman Dube, 59, who operated American Toxicology Labs, pleaded guilty today in the Western District of Virginia to health care fraud charges. Dube’s wife, Regan Gran Dube, 40, also pleaded guilty. United States Attorney Thomas T. Cullen of the Western District of Virginia, United States Attorney Robert M. Duncan, Jr. of the Eastern District of Kentucky, and Virginia Attorney General Mark G. Herring made the announcement.
The Dubes, of Johnson City, Tennessee, pleaded guilty today in U.S. District Court in Abingdon. Michael Dube pleaded guilty to two counts of health care fraud (one filed in the Western District of Virginia and one filed in the Eastern District of Kentucky). Regan Dube pleaded guilty to one count of health care fraud in the Western District of Virginia. At sentencing, each defendant faces a maximum statutory term of imprisonment of up to 10 years. Regan Dube will be sentenced September 15, 2020 at 2:30 p.m. Michael Dube will be sentenced September 17, 2020 at 2:30 p.m.
“The Dubes preyed upon a healthcare system that is supposed to help those in need. This is particularly egregious, given Michael Dube’s prior exclusion from federal health care programs,” First Assistant United States Attorney Daniel P. Bubar said today. “I am proud of the collaboration between our federal and state partners in Virginia, Kentucky, and Tennessee, which produced this just result.”
“Michael Dube defrauded Medicaid programs in two states, taking public money that he was not entitled to receive and furthering his own interests,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Today’s guilty pleas are the product of close cooperation between two United States Attorney’s Offices and several law enforcement agencies and show our resolve in preventing fraud, waste, and abuse of the essential resources of government programs.”
“Healthcare fraud not only wastes hundreds of thousands of taxpayer dollars, but it also undermines an important system that provides thousands of Virginians with critical medical services,” said Attorney General Mark Herring. “I am incredibly proud of the work my nationally-renowned Medicaid Fraud Control Unit has done and we will continue to work with our federal partners to pursue these egregious cases of fraud and abuse.”
“Opioid addiction continues to be a public health emergency and it is important that treatment providers act with honesty and integrity in combatting the crisis. In cooperation with our federal and state law enforcement partners, we will continue to investigate and bring to justice those who defraud federal programs of resources to fight this epidemic,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office.
“The Medicare and Medicaid programs require providers to be truthful on all documents and claims submitted,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our Federal and State partners to hold providers accountable for fraudulent actions and safeguard the Medicare and Medicaid programs from fraud, waste and abuse.”
According to court documents, in March 2011, Michael Dube pleaded guilty in the Eastern District of Tennessee to one count of intentionally omitting information from reports as required under the Controlled Substances Act. As a result of his conviction, the Department of Health and Human Services [HHS] informed Dube in a letter dated June 29, 2012, that he was excluded from participating in any federal health care program.
Nonetheless, in May 2013, Michael and Regan Dube established American Toxicology Labs [ATL] in Johnson City, Tennessee, with Regan Dube serving as the company’s registered agent, and using the couple’s home address as the principal office and mailing address. ATL then applied to participate in Medicare and Medicaid. On the applications, Regan Dube was listed as the owner of ATL, and Michael Dube’s name and participation in ATL was omitted.
ATL conducted urine screens for various entities who represented themselves to be opioid treatment facilities. Between May 1, 2014, and January 31, 2020, Medicare, Virginia Medicaid, Kentucky Medicaid and TennCare made payments to ATL that totaled approximately $8.5 million. During this time, Michael Dube made employment decisions, negotiated business arrangements with providers, and otherwise participated in the management of ATL.
In addition, Michael Dube also received kickback payments from third-parties for referring individuals to those third-parties for services for which payment was made (in whole or in part) by federal health care programs. These payments were deposited in Michael and Regan Dube’s personal checking account in a total amount of $441,646.
As a result of their guilty pleas, Michael and Regan Dube will pay a total of $9,015,046, plus interest, to be divided between special assessments, fines, restitution, and forfeiture. They will have to repay all of the money they received from Medicare and Medicaid programs.
The investigation of the case was conducted by the Food and Drug Administration Office of Criminal Investigations, Virginia Medicaid Fraud Control Unit of the Office of the Attorney General, the Department of Health and Human Services Office of the Inspector General, the Drug Enforcement Administration, the Virginia State Police, and Internal Revenue Service – Criminal Investigations, and the Tennessee Bureau of Investigation. The prosecution of the case was conducted by the United States Attorneys’ Offices for the Western District of Virginia (by Special Assistant United States Attorney and Assistant Attorney General Janine Myatt, Assistant United States Attorneys Whit Pierce, Krista Frith, and Randy Ramseyer) and the Eastern District of Kentucky (by Andrew Smith and Gregory Rosenberg). The United States Attorney’s Office for the Eastern District of Tennessee provided valuable assistance.
Oregon Man Pleads Guilty to Role in Tax Refund Fraud SchemeRead the Press Release
An Oregon resident pleaded guilty today to conspiracy to defraud the United States by filing false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Lawrence Collins conspired with others to file false tax returns that claimed more than $400,000 in fraudulent refunds from the Internal Revenue Service (IRS). From 2009 through 2014, Collins obtained names, Social Security numbers, and dates of birth from other persons, including from inmates from a state penitentiary in Salem, Oregon, and provided that information to co-conspirators who used this information to seek fraudulent refunds from the IRS. Collins also provided bank account information and third-party mailing addresses for use on the returns in order to direct receipt of the fraudulent refunds. Once the refunds were received from the IRS, Collins divided the funds among the co-conspirators.
U.S. Chief Judge Marco A. Hernandez scheduled sentencing for Sept. 14, 2020. At sentencing, Collins faces a maximum of 10 years in prison. Collins also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Stephen K. Moulton and Leslie A. Goemaat, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Ophthalmologist Previously Charged with Healthcare Fraud Indicted for Defrauding SBA Program Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that AMEET GOYAL, M.D., an ophthalmologist in Rye, New York, previously indicted in this District for healthcare fraud offenses in November 2019, has been charged in a Superseding Indictment with fraudulently obtaining Government-guaranteed loans intended to help small businesses during the COVID-19 pandemic while he was on pretrial release.
Under the rules of the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”), GOYAL and the ophthalmology practice he owned (the “Practice”) were ineligible for PPP relief due to GOYAL’s pending criminal charges. In April 2020, in order to gain access to PPP funding, GOYAL falsely represented on two separate applications to the SBA and a financial institution headquartered in New York, New York (“Bank-1”), that he was not subject to any pending indictment. The PPP also limited each business to one loan, with a maximum loan amount, and required applicants to certify that they have not and will not receive another PPP loan until December 31, 2020. While making that certification, GOYAL circumvented the single-loan requirement by submitting two separate applications, with different business names, email addresses, business identification numbers, and loan amounts, for the same underlying Practice, while disclaiming on each application that he owned any other business. Due to these misrepresentations, GOYAL successfully obtained two PPP loans totaling over $630,000. GOYAL will be arraigned on June 26 in White Plains federal court before U.S. District Judge Cathy Seibel.
Acting U.S. Attorney Audrey Strauss said: “While already facing charges for allegedly defrauding patients and insurers of millions of dollars, GOYAL allegedly used his practice to commit a new fraud in the midst of the COVID-19 pandemic. As alleged, Goyal blatantly lied on multiple loan applications that he was not subject to any indictment, and on top of that, fraudulently double-dipped into the limited assets of the Paycheck Protection Program by pretending to apply on behalf of two separate businesses. In so doing, Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.”
According to the allegations contained in the Superseding Indictment[1] filed today in White Plains federal court:
During the relevant time period, GOYAL owned and operated Ameet Goyal, M.D. P.C., an ophthalmology practice doing business as Eye Associates Group, Rye Eye Associates, and other business names. On November 21, 2019, an indictment (the “Indictment”) was returned in the action United States of America v. Ameet Goyal, 19 Cr. 844 (CS) (S.D.N.Y.), charging GOYAL with healthcare fraud, wire fraud, and making false statements relating to healthcare matters. On November 22, 2019, GOYAL was arraigned on the Indictment and placed on pretrial release pursuant to an order that notified GOYAL of the potential effect of committing a criminal offense while on pretrial release.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP.
Applicants with pending criminal charges are ineligible for PPP loans. One question on the PPP borrower application form (the “Pending Charges Question”) requires the applicant to answer “Yes” or “No” and put their initial next to the response to the following question: “Is the Applicant (if an individual) or any individual owning 20% or more of the equity of the Applicant subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, or on probation or parole?” The application expressly advises that if the Pending Charges Question is answered “Yes,” then “the loan will not be approved.”
The PPP also limits each eligible borrower to one loan, and a maximum loan amount calculated based on a business’s average monthly payroll expenses. The PPP application requires the applicant to certify and initial the representation that “During the period beginning on February 15, 2020 and ending on December 31, 2020, the Applicant has not and will not receive another loan under the Paycheck Protection Program.”
In or about April 2020, GOYAL applied to the SBA and Bank-1, a federally insured institution, for over $630,000 in Government-guaranteed loans through the SBA’s PPP. Specifically, on or about April 21, 2020, GOYAL applied for a loan (“Loan-1”) in the amount of $358,700 for the business “Ameet Goyal,” doing business as “Eye associates.” GOYAL represented the applicant as a C-corporation with a business address in Rye, New York (“Business Address-1”), and supplied his own social security number as the applicant’s business identification number.
On or about April 29, 2020, GOYAL applied for a second loan (“Loan-2”) from Bank-1 under the PPP, this time in the amount of $278,500. On this application, GOYAL listed the applicant’s name as “Rye eye associates,” a sole proprietorship also located at Business Address-1. For the applicant’s business identification number, GOYAL reported the Employer Identification Number for Ameet Goyal, M.D. P.C. To substantiate each loan, however, GOYAL submitted the exact same underlying payroll expense report, showing the same employees and payroll costs.
On each application, GOYAL stated that he was the president and 100% owner of the respective applicant, and that he did not own any business other than the listed applicant. On both applications, GOYAL falsely answered “No” to the Pending Charges Question, and electronically placed his initials “AG” directly under his “No” response. GOYAL also falsely certified, among other things, that the applicant will not receive another PPP loan until the end of the year.
After processing each of GOYAL’s signed and certified applications, which used different business names, business identification numbers, email addresses, and loan amounts, Bank-1 advised GOYAL that the respective application was approved by the SBA, and that the applicant would need to execute a loan note in order for the loan to be funded. Bank-1’s signing instructions to each loan note advised, “REMINDER: The Small Business Administration, in consultation with the Secretary of the Treasury, has determined that no eligible borrower may receive more than one PPP loan. A one loan per borrower limitation is necessary to help ensure that as many eligible borrowers as possible obtain PPP loans. If you have already received a PPP loan, you may not execute a loan note for another.”
On or about May 3, 2020, GOYAL executed the Loan-1 loan note for $358,700, and received the funds in full on or about May 4, 2020. On or about May 2 and 4, 2020, GOYAL executed multiple identical versions of the loan note for Loan-2 for $278,500, and received those funds in full on or about May 11, 2020.
* * *
GOYAL, 57, of Rye, New York, is charged with six counts in the Superseding Indictment. The first count charges healthcare fraud, which carries a maximum sentence of 10 years in prison; the second count charges wire fraud, which carries a maximum sentence of 20 years in prison; and the third count charges making false statements relating to health care matters, which carries a maximum sentence of five years in prison. Counts four, five, and six charge that while on pretrial release, the defendant committed the following offenses, respectively: bank fraud, which carries a maximum sentence of 30 years in prison; making false statements on a loan application, which carries a maximum sentence of 30 years in prison; and making false statements in a matter within the jurisdiction of the executive branch of the Government of the United States, which carries a maximum sentence of five years in prison. Additionally, a conviction under counts four, five, and six, if committed while on pretrial release, provides for an additional maximum sentence of 10 years in prison consecutive to any other sentence of imprisonment.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Inspector General of the SBA in connection with this investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, David Felton, and Margery Feinzig are in charge of the prosecution. A civil fraud lawsuit relating to healthcare fraud under the False Claims Act is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the civil case.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Ontario Man Sentenced for Harboring an Illegal AlienRead 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 Jason O. Garcia, 42, of Vaughn, Ontario, who was convicted of harboring an illegal alien, was sentenced to time served (100 days) by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on August 5, 2019, the defendant attempted to enter the United States in a commercial truck at the Lewiston Bridge Port of Entry. When asked if anyone else was present in the truck, Garcia stated “no.” Following a primary inspection, the truck was to the Vehicle and Cargo Inspection System for a scan. As the defendant appeared headed toward the scanning area, Garcia instead drove the truck in front of a warehouse. A second individual got out of the truck and walk directly into the entrance of the warehouse. The truck then turned around in the parking lot and headed towards the scanning area. Customs and Border Protection Officers located the individual in the hallway of the warehouse. The individual had a Chilean passport concealed in his pants. A records check determined the individual was refused entry into the United States under the Visa Waiver Program for failing to disclose a previous arrest in Chile.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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Omaha Woman Sentenced for Possession of Methamphetamine with Intent to Distribute while ArmedRead the Press Release
United States Attorney Joe Kelly announced that Jessica Kleckner, 38, of Omaha, Nebraska, was sentenced today by United States District Judge Robert F. Rossiter, Jr. for possession of methamphetamine with intent to distribute and carrying a firearm in furtherance of a drug trafficking crime. She received a total sentence of 137 months with a five-year term of supervised release to follow. There is no parole in the federal system.
On August 15, 2019, Omaha Police Department officers executed a search warrant at a residence. Officers observed Kleckner standing by the passenger side of a silver Jeep Nitro. Officers detained her and deployed a drug detection canine that alerted to the odor of narcotics emanating from the vehicle. Inside of the vehicle, officers found Kleckner’s purse. In it, officers located 16.9 grams of lab-confirmed actual methamphetamine, numerous narcotic pills, baggies, a scale, drug ledgers, and a loaded 9mm Arsenal handgun.
This case was investigated by Omaha Police Gang Unit as part of Project Safe Neighborhoods, which is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Ohio County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Shawndale Davis, of Wheeling, West Virginia, was sentenced today to 24 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Davis, age 36, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2020. Davis, having been convicted of two prior felonies and prohibited from having firearms, admitted to having a .45 caliber revolver in October 2019 in Ohio County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Ocean County Man Charged with Receipt and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was arrested today on charges that he received and possessed images and videos of child sexual abuse downloaded from the internet, U.S. Attorney Craig Carpenito announced.
Joseph J. Punderson, 31, of Island Heights, New Jersey, is charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Punderson appeared this afternoon by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni and detained without bail.
According to documents filed in this case:
In investigating leads provided by the National Center for Missing and Exploited Children (NCMEC) and others, law enforcement uncovered evidence that e-mail and social media accounts associated with Punderson were used and were linked to accounts that were used in the commission of suspected child pornography offenses between May 2019 and November 2019.
The charge of knowingly receiving child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. The charge of knowingly possessing child pornography carries a maximum of 10 years in prison, and a statutory maximum fine equal to $250,000 or twice the gross pecuniary gain or loss, whichever is greater.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Atlantic City, under the direction of Special Agent in Charge Jason Molina in Newark, the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer, and the Island Heights Police Department, under the direction of Acting Chief Paul Rutledge, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Nine arrested, charged federally in connection to human trafficking operation involving drugs exchanged for sexual access to childrenRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted a Scioto County man and several of his family members and associates with charges related to a child sex trafficking operation. The man allegedly exchanged drugs obtained in Columbus and elsewhere for sexual access to the children of drug-addicted mothers.
Larry Porter
According to court documents unsealed today, agents with the FBI’s Child Exploitation Task Force began investigating Larry Dean Porter, 69, of Wheelersburg, Ohio, in April 2019 following reports from several sources that Porter was involved in sexually abusing male and female minors with consent of the minors’ parents in exchange for illegal drugs from Porter.
In March 2020, Porter was arrested on local charges during a human trafficking sting operation by the Jackson County Sheriff’s Office. In Facebook messages coordinated by law enforcement, Porter allegedly offered to pay $80 in exchange for access to a 7-year-old girl. He was arrested after arriving at a pre-arranged meeting location and allegedly stating he would “be done around midnight” and could return the girl then.
According to victims and sources in the ongoing investigation by the FBI and the Ohio Bureau of Criminal Investigations (BCI), Porter sexually abused children and produced child pornography kept on flash drives that Porter used extreme methods to conceal.
He would give illegal narcotics to drug-addicted parents in exchange for sexual access to the minor victims. It is alleged he often instructed the parents to sexually abuse their own children and recorded it to use as blackmail.
Additionally, according to the criminal complaint, Larry Porter made numerous recorded phone calls and mailed three letters while incarcerated in Jackson County in an attempt to have his family members and associates lie under oath, convince other witnesses to lie to law enforcement, or to convince sources not to provide information to law enforcement.
Porter is charged in a 13-count indictment with conspiring to sex traffic children (15 years up to life in prison), attempting to sex traffic children (15 years up to life), producing child pornography (15 to 30 years), possessing child pornography (up to 10 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years) and conspiring to witness tamper (up to 20 years).
Denna Sue and Crystal D. Porter
It is alleged that in the days immediately following Porter’s arrest in Jackson County, two of Porter’s daughters and two of his friends were seen making numerous trips to Porter’s residence and property. Denna Sue, 32, of Wheelersburg, Ohio, and Crystal D. Porter, 39, of Columbus, were seen digging holes in the ground on the property.
On March 20, 2020, officers and agents searched the area in which the daughters were seen digging. They discovered an SD memory card buried inside a glass jar. Court documents allege the memory card contained images of child pornography taken in Porter’s bedroom.
Denna Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).
Crystal Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).
Porter’s associates Frank E. Andrews, 68, of Wheelersburg, Ohio, and W. David Cole, 62, of Portsmouth, Ohio were also seen on Porter’s property.
Frank Andrews
Frank Andrews is charged with conspiring to sex traffic children (15 years up to life in prison), possessing child pornography involving a prepubescent child (up to 20 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).
Agents recovered eight DVDs from Andrews’ residence that contained multiple videos of child pornography. Forensic evidence indicated the file titles match those on Porter’s computer.
David Cole
Cole is charged with conspiring to sex traffic children (15 years up to life in prison), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).
Facebook messages allegedly show conversations between Cole and Porter discussing child sex trafficking victims. Cole also allegedly removed and destroyed evidence from Porter’s home.
Wayne Porter
During a recorded jail call, Porter and his cousin, Erroll Wayne Porter, Sr. (Wayne), 69, of Wheelersburg, Ohio, discussed an individual they believed was a source for law enforcement. Wayne Porter said he “got some things working there, trying to take him down.” In a later call, Porter told Wayne, “Go out and make sure that idiot don’t do something. If you have to put a slug in that son-of-a-bitch.”
Wayne Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), and conspiring to tamper witnesses (up to 20 years).
Joshua Aldridge
Joshua David Aldridge, 36, of South Webster, Ohio, is charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).
It is alleged that Aldridge transported minor victims to Porter’s home and received drugs from Porter in return.
Charity and Ronnie Rawlins
Charity Ann Rawlins, 41, of South Webster, Ohio, and Ronnie L. Rawlins, 47, of Oak Hill, Ohio, are also charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).
The couple allegedly took a seven-year-old child to Porter’s residence on a regular basis to traffic the child sexually in exchange for pills. This alleged abuse occurred a few times per week for up to five years.
A number of other adult women allegedly involved in this conspiracy have been charged locally.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; Jackson County Sheriff Tedd E. Frazier; Jackson County Prosecutor Justin Lovett; Scioto County Sheriff Marty V. Donini and Scioto County Prosecutor Shane A. Tieman announced the charges. Assistant United States Attorneys Heather A. Hill and Jessica W. Knight, as well as Special Assistant United States Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, are representing the United States in this case.
Criminal complaints and indictments merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
If you believe you may be a victim, or have information related to this case, please call the FBI at 614-315-4923.
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Nine Indicted for Dealing Multiple Drugs in Butler County, including near Schools and PlaygroundsRead the Press Release
PITTSBURGH – Nine Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh for fentanyl, acetyl fentanyl, heroin, cocaine, and crack cocaine trafficking in the Butler County area, United States Attorney Scott W. Brady announced today.
"Today, we dismantled a significant Philadelphia-to-Butler drug organization whose pipeline brought fentanyl, heroin and cocaine into Butler communities, including near neighborhood playgrounds and schools," said U.S. Attorney Brady. "Our successful partnerships with the Pennsylvania State Police and Butler County District Attorney Richard Goldinger and his Drug Task Force have allowed us to take the fight against illegal drugs to all of our communities, including our small towns and rural communities. We want drug dealers to know there is nowhere for them to set up shop in western Pennsylvania."
Major Stephen K. Eberle of the Pennsylvania State Police said, "This was a lengthy investigation involving a partnership between the Pennsylvania State Police, the Federal Bureau of Investigation, the Butler County Drug Task Force and the United States Attorney’s Office. The involved troopers, agents, officers and attorneys worked tirelessly to disrupt and ultimately dismantle a large drug trafficking network responsible for distributing a significant quantity of heroin, fentanyl and cocaine throughout the Butler County region. The Pennsylvania State Police, along with our federal and local partners, remain committed to combating this type of illegal drug activity plaguing our neighborhoods and communities."
"These arrests send a clear message to all of those involved in illegal drug activity," said FBI Pittsburgh Special Agent in Charge Mike Christman. "The FBI will never stop investigating and arresting those responsible for harming our communities. The drugs seized today can and do lead to dangerous consequences. I commend the work of our Opiate Overdose Task Force, along with our federal, state and local partners, who are committed to eradicating drugs and the violence they bring with them. It doesn't matter whether it's a major metropolitan area or a rural neighborhood, drug dealers don't have a place in our community."
"Thanks to a joint investigation between the FBI, the Pennsylvania State Police, and the Butler County Drug Task Force, high level suppliers of heroin and cocaine were indicted and arrested today in Butler County and other areas in Western Pennsylvania," added Butler County District Attorney Richard Goldinger. "This collaborative effort will put a serious dent in drug trafficking in Butler County, making our community a safer place to live and work. I want to thank all of the law enforcement officers who were part of this investigation. These officers selflessly placed themselves in harm’s way for the overall betterment of Butler County."
The 27-count Indictment, returned on June 9 and unsealed today, charges Qureem Overton, Bobby Askew, Jasmine Cook, Damion Fray, Ricardo Glenn, Jamir Hughes, Nasir Sharpe, Dwayne Smallwood, and Braden Yartz in Count 1 with conspiring to distribute 40 grams or more of fentanyl, 100 grams or more of heroin, 10 grams or more of acetyl fentanyl, a quantity of cocaine, and a quantity of cocaine base from January 2017 to June 2020. Counts 2, 7-12, 19, and 21-27 charge the defendants with distributing those controlled substances. Counts 3-6, 13-18, and 20 of the Indictment charge several of the defendants with distributing the controlled substances within 1,000 feet of schools and playgrounds.
Overton, age 39, Askew, age 38, Fray, age 22, Glenn, age 28, Hughes, age 19, Sharpe, age 22, and Smallwood, age 41, have had Philadelphia, Pennsylvania, and Butler, Pennsylvania, residences. Cook, age 30, has resided in New Kensington, Pennsylvania. Yartz, age 28, has resided in Lyndora, Pennsylvania.
The law provides for a maximum total sentence of at least five years and up to 40 years in prison for the conspiracy crime charged in Count 1 of the Indictment and a fine of up to $5,000,000. The law also provides for a maximum total sentence for each of Counts 2, 7-12, 19, and 21-27 of up to 20 years in prison and a fine of up to $1,000,000. In addition, the law provides for a maximum total sentence for each of Counts 3-6, 13-18, and 20 of at least one year and up to 40 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories of the defendants.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller are prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation’s Opiate Overdose Task Force and the Butler County District Attorney’s Drug Task Force led the investigation leading to the return of the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Businessman Pleads Guilty to Tax EvasionRead the Press Release
PITTSBURGH – An Edgeworth, Pennsylvania resident pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
"The Department of Justice and my office are strongly committed to promoting compliance with federal tax laws," said U.S. Attorney Brady. "The IRS undertook significant efforts to bring Britton into compliance with the tax laws and to collect his unpaid tax liabilities. Britton’s conviction and potential penalties should serve as a stern warning to would-be offenders that violations can and will lead to consequences, including fines and potentially jail time."
According to court documents and statements made in court, Dean Britton worked in the New York City real estate industry negotiating high-dollar-value commercial ground leases. After Britton was contacted by the IRS regarding unfiled tax returns, from 2013 to 2017, Britton delinquently filed several years’ worth of returns reporting that he owed more than $1.1 million in outstanding taxes. Britton did not pay the taxes he acknowledged he owed. Instead, he evaded his taxes by placing the title to his personal residence in his wife’s name, using business bank accounts to pay his personal expenses, and directing income into new personal bank accounts he established after the IRS levied his prior account. During these years, Britton spent more than $1.46 million on personal expenses, including approximately $770,000 on real estate purchases, $240,000 in home rentals, $165,000 on financing an art gallery operated by his wife, $ 96,000 in home renovations, $74,000 in travel, $65,000 in country club expenses, and $50,000 in private school tuition.
U.S. District Judge Nora Fischer scheduled sentencing for Nov. 5, 2020. At sentencing, Britton faces a maximum sentence of five years. Britton also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kimberly Ang of the Tax Division and Assistant U.S. Attorney Carolyn Bloch, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
New York City Businessman Pleads Guilty to Tax EvasionRead the Press Release
An Edgeworth, Pennsylvania resident pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to court documents and statements made in court, Dean Britton worked in the New York City real estate industry negotiating high-dollar-value commercial ground leases. After Britton was contacted by the IRS regarding unfiled tax returns, from 2013 to 2017, Britton delinquently filed several years’ worth of returns reporting that he owed more than $1.1 million in outstanding taxes. Britton did not pay the taxes he acknowledged he owed. Instead, he evaded his taxes by placing the title to his personal residence in a nominee name, using business bank accounts to pay his personal expenses, and directing income into new personal bank accounts he established after the IRS levied his prior account. During these years, Britton spent more than $1.46 million on personal expenses, including approximately $770,000 on real estate purchases, $240,000 in home rentals, $96,000 in home renovations, $74,000 in travel, $65,000 in country club expenses, and $50,000 in private school tuition.
U.S. District Judge Nora Fischer scheduled sentencing for Nov. 5, 2020. At sentencing, Britton faces a maximum sentence of five years. Britton also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kimberly Ang of the Tax Division and Assistant U.S. Attorney Carolyn Bloch, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Moss Point Man Sentenced to 7 Years in Prison under Project EJECT for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Gulfport, Miss. – Keswick Cardero Titus, 28, of Moss Point, was sentenced Monday by U.S. District Judge Sul Ozerden to 84 months in prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Titus also was ordered to pay a $3,000 fine.
On April 10, 2019, a Moss Point Police officer approached a vehicle at a car wash in Moss Point whereupon the officer smelled marijuana coming from the vehicle. There were two men standing near the vehicle. As the officer approached, the men ran to the vehicle and drove away rapidly. The officer gave chase in his police car, and attempted a traffic stop by activating his blue lights. After pulling into a restaurant parking lot, the driver fled on foot. The passenger, who did not flee, was Keswick Cardero Titus. The South Mississippi Metro Enforcement Team arrived to provide back-up. The vehicle’s window was down and the officer, who continued to smell marijuana, looked inside and saw a firearm and marijuana protruding from a bag in the front passenger’s area.
During a search of the vehicle, officials found a book bag on the front driver’s floorboard with about 51 grams of marijuana, two scales, and a Mississippi Identification Card registered to a person matching the description of the driver who fled. A nylon bag was found on the passenger side floorboard where Titus was seated and contained a Glock, Model 22, .40 caliber pistol, with a 50 round capacity drum magazine, about 42 grams of marijuana, a scale, and two rounds of ammunition. The firearm had been reported stolen by the George County Sheriff’s Office. The State Crime Lab confirmed that the substance seized was marijuana.
Records revealed Titus had previous convictions in 2015 in Jackson County for possession of controlled substance and possession of a weapon by a convicted felon. In 2014, he had been convicted of felony aggravated domestic violence.
Titus was indicted on August 6, 2019, and pled guilty before Judge Ozerden on December 13, 2019.
U.S. Attorney Hurst commended the coordinated investigation by ATF, the South Mississippi Metro Enforcement Team, the Jackson and George County Sheriff’s Offices, and the Moss Point Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Monett Man Sentenced to 27 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Monett, Missouri, man was sentenced in federal court today for trafficking methamphetamine at a home with children present.
Victor M. De Santiago, 36, was sentenced by U.S. District Judge M. Douglas Harpool to 27 years and four months in federal prison without parole.
On Nov. 21, 2019, De Santiago pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing methamphetamine with the intent to distribute on premises in which children reside.
State troopers and DEA agents executed a search warrant at the residence of De Santiago, who was identified as a major distributor of methamphetamine, on Feb. 28, 2019. In addition to De Santiago and another adult, there were three children present in the residence.
Law enforcement officers found a safe in a bedroom closet that contained approximately two pounds (907 grams) of methamphetamine. De Santiago told officers he recently acquired approximately six pounds of methamphetamine from California and transported it to Monett with the intent to distribute it. The approximately two pounds of methamphetamine found in the bedroom was the remainder of what he had acquired from California.
This case was prosecuted by Assistant U.S. Attorneys Josephine L. Stockard and Byron Black. It was investigated by the Missouri State Highway Patrol, the Combined Ozarks Drug Enforcement Team (COMET), the Monett, Missouri, Police Department, and the Drug Enforcement Administration.
Milford Man Sentenced to 30 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Jerome Davis, 52, of Milford, was sentenced to 30 months in federal prison for fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October and November of 2018, Davis sold fentanyl on three separate occasions to an individual who was cooperating with law enforcement officers.
Davis previously pleaded guilty on February 13, 2020.
“Fentanyl trafficking continues to cause damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate the fentanyl dealers whose actions are endangering the citizens of the Granite State.”
This matter was investigated by the Hillsborough County Street Crimes Task Force and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim Barth with assistance from Karinne Brobst, Esq., prosecutor for the Milford Police Department.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Member of Navajo Nation sentenced to 37 months in prison for federal assault charges in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Frank Howe Jr., 24, of Rock Springs, New Mexico was sentenced on June 23 in federal court in Albuquerque to 37 months in prison for assault resulting in serious bodily injury in Indian Country.
Howe previously pleaded guilty to this offense on Feb. 28. According to his plea agreement, Howe, an enrolled member of the Navajo Nation, admitted to physically assaulting his girlfriend in Indian Country on May 7, 2018, within the exterior boundaries of the Navajo Nation. He got into an argument with the victim while driving his vehicle. Howe pulled his vehicle over and assaulted the victim causing serious bodily injury.
Howe must also serve a three-year term of supervised release after completing his sentence.
The Navajo Nation Police Department and the Navajo Nation Division of Public Safety-Criminal Investigations Services investigated this case with the assistance from the McKinley County Sheriff’s Office. Assistant U.S. Attorney David P. Cowen prosecuted the case.
Member of Car Theft Ring Sentenced to Federal Prison for Selling Stolen FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAY QUAN SANTOS, 22, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 13 months of imprisonment, followed by three years of supervised release, for stealing and selling firearms.
According to court documents and statements made in court, this matter stems from an investigation of motor vehicle thefts and motor vehicle break-ins in and around Hartford County. The property stolen from vehicles included firearms, ammunition and firearm-related items. The investigation revealed that Santos and others stole firearms and other items from vehicles, including vehicles that were parked outside of residences in Newington and Ellington, and then sold the firearms to other individuals.
Santos was arrested on related state charges on May 1, 2019, and was charged by federal criminal complaint on May 22, 2020. Santos had been detained from the date of his state arrest until he was released on bond in his federal case on September 16. On December 19, he pleaded guilty in federal court to one count of possession of a stolen firearm.
On December 23, 2019, Santos was arrested in Rocky Hill after he crashed a stolen vehicle he was driving on I-91, and subsequently attempted to run from police. The vehicle had been reported stolen in East Hartford on December 22. Santos has been detained since January 29, 2020, when his bond was revoked.
State charges against Santos are pending.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police, and the Hartford, Newington and Windsor Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Marshall County man sentenced for drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Michael J. Blake, of Moundsville, West Virginia, was sentenced today to 57 months incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Blake, age 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in March 2020. Blake admitted to having methamphetamine in October 2019 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Manager of Zebulon Credit Union Pleads Guilty to EmbezzlementRead the Press Release
WILMINGTON, N.C. – A Wake Forest man pleaded guilty today to theft and embezzlement from a credit union.
According to court documents, Johnnie Earl Harrell, 47, served as branch manager of a credit union located in Zebulon, NC. From 2008 to 2019, Harrell exploited his position to steal and embezzle at least $645,000 in funds belonging to the credit union and its customers. Among Harrell’s victims were individuals convinced by Harrell to rollover existing retirement accounts into annuities. Harrell never purchased the annuities, but instead converted the funds to personal use. Harrell prepared fraudulent annuity account statements that were periodically presented to victims to preclude detection of the theft.
Harrell pleaded guilty to theft and embezzlement from a credit union and faces up to thirty years in prison when he is sentenced during the court’s November or December term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The United States Department of Homeland Security, the North Carolina Department of Insurance Criminal Investigations, and the Zebulon Police Department are investigating the case. Assistant U.S. Attorney Toby Lathan is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00152-FL.
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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.
Loomis Man Sentenced to 12 Years for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Trevor C. Maaske, age 21, of Loomis, Nebraska, was sentenced today by United States District Judge Robert F. Rossiter, Jr. to 144 months’ imprisonment for receipt and distribution of child pornography. There is no parole in the federal system. After his release from prison, Maaske will begin an 8-year term of supervised release and will be required to register as a sex offender. Judge Rossiter ordered Maaske to pay restitution in the amount of $9,000.
An investigation conducted by FBI determined that on July 19, 2019, an agent with the FBI, while working in an undercover capacity on the internet, received a private message from Maaske using Kik Messenger. Kik Messenger is an online application and website with servers located outside the State of Nebraska. During the course of the Kik Messenger conversation between Maaske and the FBI agent, Maaske sent the FBI agent a video of a minor child undressing and completely naked. Upon receipt of the video, the FBI immediately obtained and executed a federal search warrant of Maaske’s residence. The FBI seized a digital device from Maaske’s bedroom, which contained child pornography that had been sent and received through the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force
Las Vegas Man Pleads Guilty to Committing Bank Fraud by Cashing A Stolen Check Worth Nearly $400,000Read the Press Release
LAS VEGAS, Nev. — Jesse Caine Brocius, 40, of Las Vegas, pleaded guilty today to devising a bank fraud and money laundering scheme through which he stole nearly $400,000, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Brocius pleaded guilty before U.S. District Judge Jennifer A. Dorsey to an indictment charging him with one count of bank fraud and one count of money laundering. He is scheduled to be sentenced on September 21, 2020.
According to court documents and admissions that Brocius made in court, between January 12, 2015 and February 10, 2015, he obtained a stolen check made payable to a family trust, in the amount of $391,636. Before cashing the stolen check, Brocius had applied to the IRS for an employer identification number falsely claiming that he was a trustee of that family trust. He also created a false Living Trust Agreement identifying him as its trustee. On February 10, 2015, Brocius opened two bank accounts in the trust’s name, depositing the stolen check into those accounts. Within four months, Brocius depleted all of money he had stolen: between February 10, 2015 and June 8, 2015, he spent it on personal expenses, such as luxury hotels, or withdrew the funds as cash.
At sentencing, Brocius faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for bank fraud, and 10 years in prison and a $250,000 fine for money laundering. 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.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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Kansas Man Indicted on Drug Charges After Fleeing Arrest in Great BendRead the Press Release
TOPEKA, KAN. – A Kansas man who was arrested in Great Bend in September after fleeing from officers was indicted today on federal drug trafficking charges, U.S. Attorney Stephen McAllister said.
Roosevelt Tyree Henderson IV, 32, is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon.
The indictment alleges that on Sept. 30, 2019, Henderson was arrested with more than 3.8 pounds of pure methamphetamine and an Excam model GT 27 pistol in his possession. The Barton County Sheriff reported at the time that Henderson fled when the Sheriff attempted to stop his car. Henderson abandoned the car at a house in Great Bend. There was a short standoff before he surrendered.
If convicted, he could face a penalty of not less than 10 years in federal prison and a fine up to $4 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking and up to 10 years and a fine up to $250,000 on the other count. The Barton County Sheriff and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
OTHER INDICTMENTS
Ashley M. George, 28, Kansas City, Mo., and Raul Camacho-Munoz, 38, Kansas City, Mo., are charged with one count of possession with intent to distribute methamphetamine (count one) and one count of unlawful possession of a firearm in furtherance of drug trafficking (count two). In addition, George is charged with one count of unlawful possession of a firearm by a felon (count three). In addition, Camacho-Munoz is charged with one count of unlawful possession of a firearm by a Mexican citizen who is in the United States unlawfully (count four), and one count of unlawfully reentering the United States after being deported (count five). The crimes are alleged to have occurred Oct. 25, 2019, in Wyandotte County, Kan.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $20 million.
Count two: Not less than five years and a fine up to $250,000.
Counts three and four: up to 10 years and a fine up to $250,000.
Count five: Up to two years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Mario A. Brown, 31, who is in federal custody, is charged with one count of escaping from federal custody at the Grossman Community Corrections Center in Leavenworth, Kan. The crime is alleged to have occurred Dec. 4, 2019.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshals service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Karina Valdez, 31, Holcomb, Kan., and Anaben Esquivel, 31, Garden City, Kan., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 30, 2019, in Finney County, Kan.
If convicted, they could face a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Finney County Sheriff’s Office investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Eugene C. Young Jr., 58, is charged with one count of unlawful possession of a firearm by a felon. The crime is alleged to have occurred Dec. 28, 2019, in Wyandotte County, Kan.
If convicted he could face up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Resident Sentenced to 20 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, resident was sentenced in federal court today for possessing child pornography.
Raul E. Villalva, also known as Isabelle Villalva, a biological male who identifies as a female (transgender woman), 26, was sentenced by U.S. District Judge Stephen R. Bough to 20 years in federal prison without parole. The court also sentenced Villalva to 20 years of supervised release following incarceration.
On Oct. 9, 2019, Villalva pleaded guilty to possessing child pornography.
In July 2018, the National Center for Missing and Exploited Children received a report from an online file hosting service that a user of the service, later determined to live in the Kansas City area, had uploaded 42 files of child pornography. After further investigation, law enforcement officers executed a search warrant at Villalva’s residence on Oct. 3, 2018. Villalva disclosed that an adult male with whom he shared the residence had previously sent him, by cell phone, videos and pictures of the adult male sexually assaulting a child victim at the defendant’s residence. Investigators seized Villalva’s cell phone, which contained videos and images of child pornography. Some of the child pornography depicted in Villalva’s cell phone depicted the child victim being molested by the adult male, while a single video depicted Villalva also engaging in sexual contact with the same child victim.
Villalva will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Western Missouri Cyber Crimes Task Force, the Platte County, Mo., Sheriff’s Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jefferson County Doctor Indicted for Health Care Fraud ViolationsRead the Press Release
BEAUMONT, Texas — A 43-year-old physician practicing in Beaumont has been indicted on federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Grigoriy T. Rodonaia, of Port Neches, Texas, was indicted on March 18, 2020 and charged with 35 counts of health care fraud and other related violations. Rodonaia appeared before U.S. Magistrate Judge Keith Giblin today for an initial appearance.
According to the indictment, beginning in January 2015, Rodonaia is alleged to have participated in a health care fraud scheme by issuing prescriptions for specially compounded scar creams using the names, dates of birth, and Health Insurance Claim Numbers of TRICARE beneficiaries and caused the prescriptions to be forwarded directly to Memorial Compounding Pharmacy in Houston, Texas without the specific knowledge of the beneficiary and without having examined or consulted with the beneficiary. The prescriptions were billed to the military health care program, TRICARE, by the pharmacy at the approximate cost of $9,000 - $13,000 per prescription and the prescriptions authorized multiple refills. Over 600 prescriptions in the names of approximately 140 beneficiaries were issued by Rodonaia in this manner outside the usual course of professional practice and without medical necessity. Before the scheme could be detected, TRICARE paid approximately $6.7 million in TRICARE funds to Memorial Compounding Pharmacy. The indictment also alleges Rodonaia created patient files and records of the TRICARE beneficiaries as though he had examined or consulted with those patients and submitted those false records to the Defense Health Agency as part of an audit of the prescription scheme.
The indictment also alleges the defendant violated the Anti-kickback statute by requiring Medicare and Medicaid beneficiaries seeking opioid treatment to pay cash for an office visit in excess of the amount which would have been reimbursed by the Medicare and Medicaid programs. The indictment further alleges that Rodonaia dispensed a Schedule IV controlled substance, Adipex-P or Phentermine, a weight control drug, outside the course of standard medical practice.
If convicted, Rodonaia faces up to 10 years in prison for each count of health care fraud and a mandatory 2 years in prison for each count of aggravated identity theft. A grand jury indictment is not evidence of guilt.
This case is being investigated by the Defense Criminal Investigative Service, the Drug Enforcement Administration, Health and Human Services – Office of Inspector General, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorney Robert L. Rawls is prosecuting this case.
Jackson Man Pleads Guilty under Project EJECT to Methamphetamine TraffickingRead the Press Release
Jackson, Miss. – Cedrick Tillman, 36, of Jackson, pled guilty today before U.S. District Judge Henry T. Wingate to possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Between January and March 2019, an individual made three purchases of methamphetamine from Tillman. On August 6, 2019, Tillman was charged in a federal indictment with possessing with intent to distribute methamphetamine.
Tillman will be sentenced by Judge Wingate on September 22, 2020 at 1:30 p.m. by Judge Wingate, and faces a statutory maximum penalty of 40 years in federal prison and a $5 million fine.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Iowa Man Sentenced to 240 Months for Drug ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that Travis Christopher Harvey, 42, of West Des Moines, Iowa, was sentenced on June 24, 2020 by United States District Judge Robert F. Rossiter, Jr. for conspiracy to distribute and for possessing with intent to distribute five hundred grams or more of methamphetamine. Harvey received a sentence of 240 months with a five-year term of supervised release to follow. There is no parole in the federal system.
In mid-2018, a Drug Enforcement Administration led task force initiated Operation Dog Pound, which was a drug interdiction effort focused on an Omaha, Nebraska, drug trafficking organization. Harvey was identified during the investigation as a distributor in the Des Moines, Iowa, area that was receiving multi-pound shipments of methamphetamine from his Omaha supplier. Investigators utilized phone and text messaging intercepts, vehicle trackers, and physical surveillance to establish Harvey’s involvement in the conspiracy.
A federal jury convicted Harvey in February of this year. Evidence at trial included $30,000 that was seized and intercepted phone calls between Harvey and his source. At sentencing, Judge Rossiter found Harvey responsible for at least 5.4 kilograms of methamphetamine. Harvey’s sentence of 240 months is noteworthy because of his extensive criminal history, which included several drug, firearm, assault, burglary, and domestic violence convictions, placing him in the highest possible category for criminal history.
The Drug Enforcement Administration, Nebraska State Patrol, U.S. Customs and Border Protection, Omaha Police Department, Bellevue Police Department, U.S. Postal Inspection Service, and U.S. Attorney’s Office were the investigating agencies.
Indiana State Police receive grants from Department of Justice to combat illegal manufacture and distribution of methamphetamine and opioidsRead the Press Release
Washington – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.
The Indiana State Police will receive over $2 million in funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“The Indiana State Police are so deserving of this grant money,” said Southern District of Indiana United States Attorney Josh J. Minkler. “They are on the front lines of this public health crisis by combating the scourge of opioid and methamphetamine use in Indiana. This is just another example of how the Indiana State Police and all law enforcement protect and serve Hoosiers on a daily basis.”
“Today, two grant awards totaling over $2.2 million were awarded to the Indiana State Police. The grant money will be used to focus on combating methamphetamine and heroin distribution in Indiana,” said Northern District of Indiana United States Attorney Thomas L. Kirsch II. “My Office has put a special emphasis on investigating and prosecuting individuals who distribute addictive drugs such as methamphetamine and heroin, along with other opioids, on the streets of Northern Indiana, and this funding will help continue those efforts. I am pleased to partner with the Indiana State Police and its dedicated troopers who put their lives on the line daily to provide safety for Indiana families.”
“We are extremely thankful and honored to be a recipient of these two grants, which will assist our investigators who work on the front lines of the opioid crisis every day. We are so very proud to collaborate with our law enforcement partners throughout the state in working to make our communities safer for everyone”, said Doug Carter, Superintendent of the Indiana State Police.
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdoses are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
The Indiana State Police will receive $1,285,080.00 through the AHTF Program.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The Indiana State Police will receive $1,000,000.00 through the CAMP.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.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.
Indiana State Police Receive Department of Justice GrantsRead the Press Release
HAMMOND – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.
The Indiana State Police will receive over $2 million in funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“The Indiana State Police are so deserving of this grant money,” said Southern District of Indiana United States Attorney Josh J. Minkler. “They are on the front lines of this public health crisis by combating the scourge of opioid and methamphetamine use in Indiana. This is just another example of how the Indiana State Police and all law enforcement protect and serve Hoosiers on a daily basis.”
“Today, two grant awards totaling over $2.2 million were awarded to the Indiana State Police. The grant money will be used to focus on combating methamphetamine and heroin distribution in Indiana,” said Northern District of Indiana United States Attorney Thomas L. Kirsch II. “My Office has put a special emphasis on investigating and prosecuting individuals who distribute addictive drugs such as methamphetamine and heroin, along with other opioids, on the streets of Northern Indiana, and this funding will help continue those efforts. I am pleased to partner with the Indiana State Police and its dedicated troopers who put their lives on the line daily to provide safety for Indiana families.”
“We are extremely thankful and honored to be a recipient of these two grants, which will assist our investigators who work on the front lines of the opioid crisis every day. We are so very proud to collaborate with our law enforcement partners throughout the state in working to make our communities safer for everyone”, said Doug Carter, Superintendent of the Indiana State Police.
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdoses are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
The Indiana State Police will receive $1,285,080.00 through the AHTF Program.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The Indiana State Police will receive $1,000,000.00 through the CAMP.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.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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Howard University Hospital Employee and Upper Marlboro Woman Charged in Separate Criminal Complaints with Defrauding MedicaidRead the Press Release
WASHINGTON – Folashade Adufe Horne, 51, of Laurel, Maryland, and Sikirat Adunni Brown, 58, of Upper Marlboro, Maryland, were both arrested today after being charged in federal court with defrauding the D.C. Medicaid program, announced Acting U.S. Attorney Michael R. Sherwin; James A. Dawson, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
Horne and Brown are the third and fourth individuals charged this week with defrauding D.C. Medicaid. Yesterday, Susan Engonwei Tingwei, a University of Maryland Law School Graduate, and Janet Akindipe, an employee at the National Institutes of Health (“NIH”), were arrested.
Horne, Brown, Tingwei, and Akindipe each were charged in separate criminal complaints with health care fraud and health care false statements for falsely claiming to have provided personal care aide (“PCA”) services to D.C. Medicaid beneficiaries. Horne is alleged to have defrauded Medicaid between January 2014 and the present. Brown is alleged to have defrauded Medicaid between November 2014 and the present. Tingwei is alleged to have defrauded Medicaid between January 2015 and September 2018. Akindipe is alleged to have defrauded Medicaid between January 2015 and the present.
Home health agencies employ PCAs to assist D.C. Medicaid beneficiaries with performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. PCAs are required to accurately document the hours of care that they provide to beneficiaries on timesheets and then submit those timesheets to home health agencies, which in turn bill Medicaid for services actually rendered.
According to charging documents, Horne claimed to provide PCA services to beneficiaries when she was actually working at Howard University Hospital, where she has been employed since 2007. D.C. Medicaid claims data revealed that on 204 separate days in 2014, she purportedly provided 20 or more hours of PCA services to several Medicaid beneficiaries while working for various home health agencies, including 28 separate days where she claimed to work 32 hours. Charging documents also allege that Horne claimed to provide PCA services to D.C. Medicaid beneficiaries when she was traveling outside the United States.
Charging documents allege that Brown purported to provide PCA services in excess of twenty hours on a given day and also to multiple beneficiaries in overlapping hours. On 335 occasions between November 2014 and October 2015, Brown claimed that she provided between 20 and 38 hours of PCA services each day. She also asserted that she provided 176 hours of services during a seven-day period even though there are only 168 hours in a week. In addition, she is alleged to have paid kickbacks to at least one beneficiary to get that person to sign fraudulent timesheets.
Charging documents indicate that Tingwei earned a Master of Laws degree from the University of Maryland’s Francis King Carey School of Law in May 2017. On more than 100 occasions, she is alleged to have submitted timesheets purporting to have provided PCA services in Washington, D.C., when she was scheduled to be in Baltimore attending law school classes. As part of the investigation, law enforcement agents conducted surveillance of Tingwei and also obtained cell phone records that provided her location history. Tingwei claimed to provide PCA services in Washington at times when law enforcement agents saw her in Baltimore and also when cell phone records placed her in Baltimore.
Charging documents allege that Akindipe claimed to provide PCA services to beneficiaries when she was actually working at NIH. Between working at NIH and purportedly providing PCA services, Akindipe claimed she worked more than twenty hours a day on 338 different occasions between January 2015 and October 2018. She also is alleged to have caused Medicaid to be billed for PCA services that she purportedly rendered during three separate periods of time when she was actually traveling outside the United States.
Horne, Brown, and Akindipe appear this afternoon on their respective criminal complaints before the Honorable Robin M. Meriweather in U.S. District Court for the District of Columbia. Yesterday, Tingwei was presented before Judge Meriweather. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, but it is not evidence of guilt. Each of the defendants is presumed innocent unless proven guilty.
This week’s arrests mark a continued effort by the FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office to investigate and prosecute individuals who defraud the D.C. Medicaid program.
Since October 2019, four PCAs have been sentenced in U.S. District Court for defrauding D.C. Medicaid. Mobolaji Tina Stewart, who admitted defrauding the program out of more than $500,000, was sentenced to 13 months in prison in October 2019. Nkiru Uduji, who defrauded Medicaid out of more than $500,000, was sentenced to thirty-six months’ probation in December 2019. Rose Gana, who defrauded Medicaid out of more than $400,000 was sentenced to 13 months in prison in February 2020. Temitope Ogunbiyi, who defrauded Medicaid out of more than $1 million was sentenced to 15 months in prison in February 2020. A fifth defendant, Hope Falowo, pled guilty to defrauding Medicaid out of more than $400,000 in November 2019 and is awaiting sentencing. A sixth defendant, Charlotte Etongwe, was charged via criminal complaint in June 2019. A status hearing is scheduled in her case for July 29, 2020.
The FBI, the Department of Health and Human Services’ Office of Inspector General, and the Medicaid Fraud Control Unit have investigated all of these cases and count on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS-TIPS [(800) 447-8477].
The cases against Horne, Brown, Tingwei, and Akindipe are being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
Houston man charged with COVID relief fraudRead the Press Release
HOUSTON - A funeral home operator has been taken into custody on allegations he fraudulently sought over $13 million in Paycheck Protection Program (PPP) loans.
Jase DePaul Gautreaux aka Jase Dixon, 38, is charged in a criminal complaint, unsealed today upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy in Houston at 2 p.m. today.
Gautreaux allegedly perpetrated a scheme to file fraudulent loan applications seeking more than $13 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Gautreaux allegedly submitted several fraudulent PPP loan applications to federally insured banks, including applications on behalf of a business that did not exist and other applications on behalf of a business with which he had no affiliation. In these applications, Gautreaux allegedly falsified his identity, misrepresented the number of employees and payroll expenses of the putative companies and made numerous other inaccurate statements. According to the complaint, Gautreaux also submitted falsified tax documents and bank account information in support of these applications. He submitted fraudulent applications for over $13 million in PPP funds and ultimately received over $1.6 million in PPP funds, according to the charges.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, mortgage interest, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Office of the Inspector General (OIG) - Federal Housing Finance Agency, Federal Deposit Insurance Corporation – OIG, SBA – OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation with the assistance of the Houston Police Department.
Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency HERE.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hattiesburg Man Sentenced to 9 Years in Prison under Project EJECT for Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Juan Carlos Brewster, 36, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 108 months in prison, followed by five years of supervised release, for possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA), and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation (FBI) in Mississippi.
On February 11, 2019, Brewster sold 224 grams of methamphetamine to an individual. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 99% pure.
Brewster was indicted on September 25, 2019. He pled guilty before Judge Starrett on January 30, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Sentenced to 8 Years in Prison Under Project EJECT for Illegally Possessing Firearm and Possessing Methamphetamine with Intent to DistributeRead the Press Release
Hattiesburg, Miss. – Brian McIver, 49, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 96 months in prison, followed by 5 years of supervised release, for being a felon in possession of a firearm, and possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. McIver was also ordered to pay a $7,500 fine.
On April 29, 2019, during a traffic stop on the campus of Forrest General Hospital, McIver was found in possession of a firearm as well as methamphetamine. The methamphetamine was co-located with a scale. McIver was previously convicted of felonious possession of a controlled substance (methamphetamine) in Forrest County in 2007.
McIver was indicted on September 25, 2019. He pled guilty before Judge Starrett on December 17, 2019.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Federal Bureau of Investigation, the Mississippi Bureau of Narcotics, and Forrest General Hospital Department of Public Safety Campus Police investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hartford Man Sentenced to 17 Years for Robbery and Gun Offenses Stemming from Drug-Related ShootingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RANDY PARKMAN, 43, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 204 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses.
According to court documents and statements made in court, on May 22, 2018, Parkman shot and seriously wounded an individual after he robbed that individual of drugs and money at 149 Wethersfield Avenue in Hartford. At the time, the location was being used as a “trap house” by a drug trafficking organization. After the shooting, Parkman sold the gun he used.
In August 2018, Parkman stole a Taurus, Model 444, .44 caliber revolver from a motor vehicle in Hartford. It is alleged that he then used the stolen gun on October 5, 2018, in a shooting incident at 183 Wethersfield Avenue, and then again on October 8, 2018, when he shot and wounded an individual in Hartford’s South Green Park.
On October 22, 2018, Parkman was arrested at an apartment where he had been staying. Investigators recovered the stolen .44 caliber firearm during a search of the apartment
Parkman has been detained since his arrest. On January 27, 2020, he pleaded guilty to one count of interference with commerce by robbery, and one count of possession and discharge of a firearm during and in relation to a crime of violence.
Parkman’s criminal history includes numerous felony convictions for larceny, burglary and other offenses.
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 Hartford Police Department’s Major Crimes Division, Shooting Task Force and Vice, Intelligence and Narcotics Division provided valuable assistance to the investigation.
This case was being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Margaret M. Donovan.
This prosecution 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 neighborhoods safer for everyone.
Harrison County Man Sentenced to Two Years in Prison for Possession of a Firearm by a Person Convicted of Domestic ViolenceRead the Press Release
Gulfport, Miss. – Paul Alford Thibodeau, Jr., 38, a resident of Harrison County, was sentenced today by U.S. District Judge Sul Ozerden to 24 months in prison, followed by three years of supervised release, for possession of a firearm by a person convicted of domestic violence, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Thibodeau was also ordered to pay a $3,000 fine. Thibodeau pled guilty before Judge Ozerden on December 20, 2019.
On January 5, 2019, Harrison County Sheriff’s Department Deputies responded to a domestic disturbance call on Borzik Road in the Saucier Community where a woman was being accosted. When deputies arrived, they observed Paul Alford Thibodeau, Jr., exiting the rear of the residence and hiding underneath the house. Thibodeau was subsequently secured by deputies, who located a Ruger, Model Mark III, .22 caliber pistol, under the house in the location where they observed Thibodeau hiding. The firearm had a 10-round magazine attached to it.
While the pistol was unloaded, a Sheriff’s Department Sergeant noticed .22 ammunition spread on the kitchen table matching the caliber of the pistol. A criminal history check revealed that Thibodeau had a prior felony conviction and deputies arrested him for being a felon in possession of a firearm. Thibodeau had a 2013 felony conviction in Kansas for aggravated failure to appear, and a 2014 misdemeanor offense for domestic battery.
Harrison County officials alerted the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). ATF agents also determined that Thibodeau had been using methamphetamine on the day that Harrison County Deputies arrested him.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and by the Harrison County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Harrison County Man Sentenced to One Year in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Gulfport, Miss – Paul David Graves, Jr., 49, of Moss Point, was sentenced today to 12 months in prison, followed by three years of supervised release with 6 months of home confinement, for possession with intent to distribute cocaine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco Firearms and Explosives. Graves was also ordered to pay a $3,000 fine.
In October 2018, Graves sold cocaine on three occasions, totaling 87 grams, at a home in Gulfport, for $3,600.
The Bureau of Alcohol Tobacco and Firearms investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Hamburg Doctor Sentenced for Illegally Importing Heroin and CocaineRead 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 Dr. Torin Finver, 55, of Hamburg, NY, who was convicted of importation of a controlled substance, was sentenced to a period of time served (approximately eight months) by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Joshua A. Violanti and Justin G. Bish, who handled the case, stated that on November 21, 2018, Customs and Border Protection officers examined a parcel at the Chicago, Illinois, post office addressed to “T Finver,” with a residence in Hamburg, NY. The parcel was from Germany and the sender information was fictitious. The package field tested positive for cocaine.
Subsequently, two similar packages addressed to the defendant sent from California were located by U.S. Postal Inspection Service Inspectors in Rochester. One of the packages field tested positive for heroin, the other contained cocaine.
On December 15, 2018, during review of incoming mail in Hamburg, Postal Inspectors located a fourth parcel addressed to “T Finver.” On December 17, 2018, Special Agents with Homeland Security Investigations arranged for a controlled delivery of the parcel. A U.S. Postal Inspector acting in an undercover capacity delivered the parcel and other mail addressed to “Torin FINVER.” After knocking on the front door, the Postal Inspector encountered the defendant and handed over the parcel and the mail. Finver was arrested at the scene.
During an interview with investigators, the defendant stated that he ordered “dark web” packages of heroin and cocaine from the Dream Market marketplace, seven times over two months. Finver used Bitcoin to pay for the narcotics.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin. Additional assistance was provided by U.S. Customs and Border Protection in Chicago, Illinois.
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Grand Forks, ND, Man Arrested for Interstate Communication of a Threat to Injure Persons and for False Information and HoaxRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that on June 24, 2020, Steven Ralph Lindblad, appeared in Federal Court at an initial appearance and arraignment hearing. The United States District Court for the District of North Dakota unsealed an Indictment revealing that a federal grand jury indicted Lindblad on the charges of Interstate Communication of a Threat to Injure Persons and False Information and Hoax. Specifically, the Indictment alleges that on August 15, 2019, Lindblad made a telephone call to a customer service representative at his cell phone service provider, during which he stated he had explosive materials and was going to commit a mass shooting.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation (FBI).
Assistant United States Attorney Jacob T. Rodenbiker is prosecuting the case.
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Former Youth Pastor Charged with Multiple Sex CrimesRead the Press Release
LITTLE ROCK—A former youth pastor appeared in federal court today to face charges involving illegal sexual contact with minors. Robert Shiflet, 50, was charged by a grand jury in an indictment handed down on June 2, 2020. He was arrested on June 12 at his home in Denton, Texas, and arraigned via Skype today in Little Rock before United States Magistrate Judge Jerome T. Kearney.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment, which charges Shiflet with three counts of transporting a minor across state lines to engage in illegal sexual activity and one count of coercing a minor to cross a state line to engage in illegal sexual activity.
The indictment alleges that in or about May 1997, Shiflet transported a minor from Texas to Arkansas for the purpose of engaging in illegal sexual activity. The indictment alleges he did so again in March 2001 with a different minor, and from June through September of 2002 with a third minor. The indictment also charges Shiflet with enticing the third minor to cross a state line for the purpose of engaging in illegal sexual activity from June through September of 2002. During this time period, Shiflet worked as a youth pastor in Little Rock and later moved to Denton, Texas, where he had previously worked as a youth pastor.
The investigation is being conducted by the FBI and is being prosecuted by Assistant United States Attorney Kristin Bryant. Anyone with additional information to report about Robert Shiflet can call 1-800-CALL-FBI.
The penalty for transportation of a minor to engage in illegal sexual activity is not more than 15 years imprisonment. The penalty for coercion is not more than 10 years imprisonment. Both charges carry potential penalties of not less than five years of supervised release and a fine of not more than $250,000.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Veterans Affairs Police Officer Sentenced to 24 Months in Prison for Criminal Civil Rights Violation and Making False Entries in A ReportRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Norman Nicholson (57, Largo) to 24 months in federal prison for depriving an individual of his Fourth Amendment right to a reasonable search and seizure under color of law and one count of knowingly making false entries in a report with the intent to obstruct an investigation within the jurisdiction of a federal agency.
Nicholson had pleaded guilty on March 24, 2020.
According to court documents, while employed as a police officer with Veterans Affairs in Bay Pines, Florida, Nicholson instructed an Army veteran to leave the premises, and the veteran complied. Nicholson then followed the veteran outside and arrested him. In doing so, Nicholson swung the veteran around, and placed both of the veteran’s hands behind his back. The veteran did not resist the arrest and moved his left arm behind his back on his own. After the veteran was already handcuffed and in custody, Nicholson rammed the veteran’s head on the fence. Nicholson then used his right hand to pull the veteran’s legs apart, causing the veteran to fall face first into the fence and then to the ground. Nicholson then forcefully grabbed the veteran from the ground, and lifted him up. While lifting him up, Nicholson used his right hand to grab the veteran from his face and nose.
Nicholson then authored two arrest affidavits and a police report in which he made numerous false statements regarding the incident. Specifically, Nicholson stated that the veteran “refused to leave the property…became resistant…pulled away…raised his hand in an aggressive posture…did not obey commands to stop resisting…resisted on the ground…and buckled his knees in an attempt to make himself dead weight.” Those statements were clearly false, and were made with the intent to impede, obstruct, or influence a matter that was within the jurisdiction of the United States Department of Veterans Affairs.
As a result of this arrest, the veteran spent several days in custody at the Pinellas County jail.
“The right of individuals to be safe and secure against unreasonable searches and seizures is at the very cornerstone of our democracy,” said U.S. Attorney Maria Chapa Lopez. “Officers who violate their oath to uphold that Constitutional right, and falsify facts to impede or obstruct an investigation will be prosecuted to the fullest extent of the law.”
David Spilker, Special Agent in Charge, VA-Office of Inspector General, stated, “Nicholson’s sentence today demonstrates VA-OIG’s commitment to ensuring that VA’s law enforcement officers are held to the highest standards and that all veterans are afforded their constitutional rights. Veterans should never be subjected to excessive force and false statements by sworn law enforcement officers, whose mission is to safeguard veterans, VA employees and facilities.
"Mr. Nicholson's actions not only violated the victim's civil rights, but created public distrust and doubt toward the law enforcement community. We are pleased with today's sentencing which illustrates the FBI's commitment to take all allegations of civil rights violations seriously," said Special Agent in Charge of the FBI Tampa Division Michael McPherson.
The Department of Veterans Affairs, Office of Inspector General and the Federal Bureau of Investigation investigated this case. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Former Rocky Mountain Bank loan officer admits fraud, money laundering crimesRead the Press Release
BILLINGS – A former Rocky Mountain Bank loan officer accused of approving loans to a bank customer while at the same time profiting from private, undisclosed loans to the customer today pleaded guilty to fraud crimes, U.S. Attorney Kurt Alme said.
Stephen Phillip Casher, 46, pleaded guilty to bank fraud and to money laundering. Casher faces a maximum 30 years in prison, a $1 million fine and five years of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for Nov. 5 and continued Casher's release.
Casher was charged in a 14-count superseding indictment alleging bank fraud and related crimes. A jury trial began on June 22. The prosecution and Casher reached a plea agreement during trial.
The prosecution presented evidence in court records and at trial that Casher worked as a market president for Rocky Mountain Bank (RMB) from about November 2011 until January 2017. During that time, Casher was one of the people responsible for approving bank loans to Larry Price, Jr. or one of Price's related companies. Casher, along with several private investors, also made large, private, high interest loans to Price. Though Casher helped approve many bank loans to Price, neither Casher nor Price disclosed the private loans to RMB. Casher never informed RMB that he had a conflict of interest that might impair his impartiality in reviewing loans involving Price.
In September 2014, RMB loaned H&P Investments $3.75 million. Price controlled H&P investments and acted as an unlimited guarantor of the loan. Casher was one of the bank officials who approved this loan and was responsible for collecting Price's personal financial statement and providing it to the bank. A few days before the bank loan, Casher, along with a private investor, privately loaned Price $900,000. The private loan was specifically concealed and omitted from the personal financial statement that Casher had arranged for Price to sign on the same day the private loan was executed, resulting in a false entry in RMB's books.
In June 2015, RMB loaned Seven Lands Holdings approximately $1.18 million. Price controlled Seven Lands Holdings and acted as a personal guarantor of the loan. Price used the loan to buy five houses and turn them into rental properties. In early 2015, several private investors associated with Casher loaned Price $1.5 million. Casher brokered this deal and eventually received $20,000 as a "thank you" from the private investors.
One of homes Seven Lands Holdings was buying belonged to Casher and, as a result, he was removed from RMB's chain of approval. Nevertheless, Casher provided lender information on the loan and was involved in preparing loan documents. Neither Casher nor Price informed RMB about the $1.5 million private loan before the bank loaned Seven Lands Holdings $1.18 million. RMB's entry misrepresented Price's net worth and liquidity. Casher personally profited from this RMB loan because he received a large portion of loan funds from the sale of his house.
Assistant U.S. Attorneys Colin Rubich, Zeno Baucus and Timothy Tatarka are prosecuting the case, which was investigated by the FBI and the IRS.
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Former Music Teacher Guilty of Producing Images of Child Sexual AbuseRead the Press Release
RICHMOND, Va. – A former Richmond City Public Schools elementary music teacher pleaded guilty today to producing images of child sexual abuse.
According to court documents, Kellen Thomas Donelson, 32, came to the attention of law enforcement in 2019 for uploading multiple images of child pornography via Snapchat and Kik Messenger. During a court-authorized search of his home and electronic devices in December 2019, law enforcement discovered additional images and videos of child sexual abuse.
According to the statement of facts, Donelson admitted that he produced several images and videos of child pornography using his personal cell phone, including with a victim as young as 4 years old.
Donelson was arrested on Dec. 5, 2019. At the time of his arrest, he was employed as an elementary school music teacher with Richmond City Public Schools and an Associate Minister/Music Director at Mount Hope Baptist Church.
Donelson pleaded guilty to production of child pornography. He faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on Sept. 28, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Kevin Elliker is 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. 3:20-cr-055.
Florida Man Sentenced to over Ten Years in Prison for Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Hector Miguel De Jesus Rijos, 28, most recently of Orlando, Florida, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 128 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans. De Jesus Rijos was also ordered to pay a $5,000 fine.
De Jesus Rijos was arrested after he traveled from Florida to Gulfport, Mississippi to attempt to purchase multiple kilograms of cocaine from an individual. At the time of his arrest, De Jesus Rijos was found with $100,000.00 cash in his vehicle.
On January 30, 2020, De Jesus Rijos pled guilty to one count of conspiring to possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Shundral Cole and Jonathan Buckner.
Felon Sentenced to 96 Months in Prison for Possessing Approximately 240 Grams of Methamphetamine for Distribution While Possessing a FirearmRead the Press Release
St. Louis, Missouri –United States District Judge Henry E. Autrey sentenced Justin Newkirk, 41, of Raytown, Missouri, to 96 months in prison for possessing with the intent to distribute methamphetamine while possessing a firearm.
According to the plea agreement, on August 14, 2018, Justin Newkirk and co-defendant Stephen Flynn arrived in the St. Louis area from Kansas City with an amount of methamphetamine intended for distribution. Newkirk employed Flynn as protection, and to drive him to and within the St. Louis area in order to distribute the methamphetamine.
On that date, officers from the Arnold Police Department made contact with Flynn and Newkirk after seeing their vehicle illegally parked in a handicap parking spot near a hotel in Arnold, Missouri. Flynn was in the driver’s seat, and Newkirk was seated behind him. Officers detected an odor of marijuana, and Flynn appeared to be under the influence of drugs and was concealing his hands from officers. Flynn and Newkirk were asked to exit the vehicle and the vehicle was searched.
Officers found drugs and firearms in multiple locations within the vehicle. Flynn had a Jimenez make, JA380 model, .380 caliber semiautomatic handgun in his waistband, loaded with six rounds of ammunition. On the front passenger seat next to Flynn was a money bag that contained plastic baggies, a digital scale, and 27.88 grams of methamphetamine. There also were additional rounds of ammunition that matched the caliber and brand of ammunition in Flynn’s firearm found on the front seat and in the cup-holder next to Flynn.
Newkirk sat in a rear passenger seat. On the floor next to his feet was a Taurus make, G2C model, 9mm semiautomatic handgun loaded with 12 rounds. Behind Newkirk was a black pouch containing three baggies containing a total of 42.17 grams of methamphetamine, numerous empty plastic baggies, and a digital scale.
Police then lawfully searched Flynn’s and Newkirk’s shared hotel room. Inside the hotel room, police seized a Bostich bag containing personal items belonging to Newkirk, and a single round of ammunition matching the ammunition in Newkirk’s firearm. The bag contained a locked pouch, which contained 168.85 grams of methamphetamine.
Prior to August 14, 2018, Newkirk was convicted of at least one felony crime punishable by imprisonment for a term exceeding one year. At the time he possessed the aforementioned firearm, he knew he had been convicted of a crime punishable by a term of imprisonment exceeding one year.
Co-defendant Flynn previously pled guilty, and is scheduled to be sentenced on August 5, 2020.
The case was investigated by the Arnold Police Department and the Department of Homeland Security.
Federal Inmate Sentenced for Escaping from Beaumont FacilityRead the Press Release
BEAUMONT, Texas –A 46-year-old federal inmate has been sentenced for escaping from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Robert Lloyd Young of Bruceville, Texas, pleaded guilty on Jan. 9, 2020, to escaping from federal custody and was sentenced to 18 months in federal prison by U.S. District Judge Thad Heartfield on June 23, 2020.
According to information presented in court, on Oct. 11, 2019, the Jefferson County Sheriff’s Office received an anonymous tip alerting them that inmates at the Bureau of Prisons Camp Facility in west Jefferson County were planning to escape from the facility in order to retrieve contraband that had been left for them in a field off Hillebrandt Road. Law enforcement officers surrounded the area in concealed locations and within several hours observed four inmates approaching on foot. All four inmates were apprehended after attempting to flee and detained. A search of the inmates revealed several cellular telephones and a bottle of whisky. All four were indicted by a federal grand jury on Nov. 6, 2019.
“These prison escapes have plagued Jefferson County for a long time. They are unacceptable, and we are committed to working with BOP to better secure the prison,” said U.S. Attorney Stephen J. Cox. “In the meantime, federal prison inmates are on notice that if they escape from prison, they will be caught and prosecuted and will spend additional time in a higher security prison.”
Young was serving a federal prison sentence for a drug trafficking conviction out of the Western District of Texas. Young’s new prison sentence will begin once he has served the remainder of his original prison sentence.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Executive Assistant U.S. Attorney Brit Featherston.
East Hartford Man Sentenced to More Than 7 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EYISIEL ORTEGA, also known as “EG,” “D” and “E,” 21, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden to 90 months of imprisonment, followed by three years of supervised release, for drug distribution and gun possession offenses. Judge Bolden ordered Ortega to serve the first six months of his supervised release in home confinement.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
This matter stems from an investigation headed by the ATF and East Hartford Police Department into drug trafficking and related acts of violence by a group of individuals operating out of the Mayberry Village housing complex in East Hartford. The investigation revealed that certain members of the group had obtained firearms in North Dakota and transported them to Connecticut.
According to court documents and statements made in court, between September and November 2017, investigators conducted controlled purchases of crack cocaine from Ortega. Ortega was arrested on November 7, 2017. On that date, a court-authorized search of his residence revealed a loaded .380 caliber Ruger LCP semi-automatic pistol, 20 loose rounds of ammunition, approximately 30 grams of crack cocaine, a quantity of fentanyl and $4,530 in cash. The firearm had been reported stolen in Georgia.
Ortega has been detained since his arrest. On November 25, 2019, Ortega pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation is being conducted by the ATF and East Hartford Police Department, with the assistance of the Connecticut Department of Correction and the Minot (N.D.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Dubuque Man Sentenced to Federal Prison for Selling Crack Cocaine Near SchoolRead the Press Release
A Dubuque man, who sold crack cocaine to a confidential source on two separate occasions, was sentenced June 23, 2020, to fifteen months in prison.
Christopher DeAngelo Emory, age 32, from Dubuque, Iowa, received the prison sentence after a February 7, 2020 guilty plea to distribution of crack cocaine near a protected location.
Information disclosed at sentencing and at his plea hearing showed that on two occasions in November 2018, Emory sold cocaine to a confidential source. Both sales took place near a school or park. In total, Emory sold approximately two grams of crack cocaine. Also in November 2018, law enforcement officials searched Emory’s Dubuque house as part of a recent shots fired investigation. During the search, officers located over $300 in cash, ecstasy, and a .380 caliber handgun magazine. Emory has two criminal prior convictions for assault and domestic abuse assault. Emory sold the crack cocaine in this case while he was on probation for the domestic abuse assault.
Emory was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Emory was sentenced to fifteen months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system. The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Dubuque Police Department, the Dubuque Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-01028.
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