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Wednesday 24 June 2020
Dubuque Man Pleads Guilty to Being a Prohibited Person in Possession of a FirearmRead the Press Release
A prohibited person who possessed a firearm pled guilty on June 23, 2020, in federal court in Cedar Rapids.
Tobias Sarazin, age 33, from Dubuque, Iowa, was convicted of one count of being a prohibited person in possession of a firearm. At the plea hearing, Sarazin admitted that, in December 2019, he possessed a pistol while being a user of marijuana and methamphetamine.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Sarazin remains in custody of the United States Marshal pending sentencing. Sarazin faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Dubuque County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-1005.
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Doctor and Nurse Sentenced for Conspiracy to Commit Health Care Fraud in Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Dr. Thomas Edward Sturdavant, M.D., 56, of Cordova Tennessee, was sentenced Monday and Freda Cal Covington, RN, 55, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett for their roles in a conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation (“FBI”) in Mississippi, and Special Agent in Charge Cyndy Bruce of the U.S. Department of Defense’s Criminal Investigative Service’s (“DCIS”) Southeast Field Office.
Sturdavant was sentenced to 24 months in federal prison, followed by three years of supervised release, and ordered to pay a monetary judgment of $160,000, along with restitution in the amount of $1,628,409. Covington was sentenced to 18 months in prison, followed by three years of supervised release. Co-defendant Dr. Shahjahan Sultan was sentenced on June 16, 2020 to 48 months in prison for his involvement in the conspiracy.
Beginning around May 2014, Sultan entered into a contract with a pharmacy located in Jackson County, Mississippi. Pursuant to the contract, Sultan agreed to prescribe individuals expensive compound medications in exchange for the pharmacy agreeing to pay Sultan 35% of the reimbursements it received for the prescriptions Sultan authorized.
In September 2014, Dr. Sultan offered to pay Dr. Sturdavant $900,000 to perform telemedicine services and prescribe more expensive compounded medications that had no medical effectiveness. Dr. Sturdavant also signed more than fifty prescriptions for the compounded medications for individuals he did not examine. As a nurse, Covington helped further the conspiracy by identifying individuals in places like Jones County, Mississippi who had insurance that covered the expensive compounded medications. She conducted cursory physical examinations of patients at places like gas stations and public playgrounds and falsified patient assessments for patients she knew did not need the expensive compounded medications.
Sturdivant pled guilty before Judge Starrett on November 21, 2019, and Covington pled guilty on October 15, 2019.
Fallon Page, another nurse, pled guilty on November 21, 2019, to mail fraud for her involvement with having the unnecessary compound medications shipped to patients by the pharmacy. She will be sentenced by Judge Starrett on July 7, 2020.
The case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Department of Justice announces $3.6 million in funding to combat illegal manufacture and distribution of opioids in OhioRead the Press Release
U.S. Attorneys Justin Herdman, David DeVillers and Ohio Attorney General Dave Yost announced today that the Department of Justice Office of Community Oriented Policing Services (COPS Office) has awarded the Ohio Attorney General’s Organized Crime Investigations Commission (OCIC) $3,658,998 in funding to combat the illegal manufacture and distribution of heroin and prescription opioids in Ohio.
“Every day in Ohio, we continue to see the adverse effects that the heroin and opioid epidemic have in our community,” said U.S. Attorney Justin Herdman. “This funding will help the Ohio Attorney General’s office continue their great work against this epidemic and support our law enforcement officers on the front lines.”
“One of the biggest challenges facing Ohio is opioid related overdose deaths, specifically involving fentanyl," said U.S. Attorney David DeVillers. "The only way to effectively combat this crisis is through coordination and cooperation with our state and local partners. This award will go a long way to assure that this is accomplished.”
“We appreciate the partnership and the additional funding that will be used to disrupt the supply chain of illegal drugs in Ohio,” said Ohio Attorney General Dave Yost. “OCIC’s interdiction task forces strive to stay a step ahead of the ever evolving drug dealers who plague on our street and poison our youth. They aren’t stopping, but we aren’t either.”
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
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). The AHTF program 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. AHTF funding has a significant 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.
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 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.
Department of Justice Files Statement of Interest Challenging the Constitutionality of Hawaii Governor’s COVID-19 Order that Effectively Discriminates Against Out of-State Residents in a Manner that Harms Hawaii’s EconomyRead the Press Release
The Justice Department yesterday filed a statement of interest in Hawaii federal court in support of a lawsuit filed by Nevada and California residents who own property in Hawaii challenging a measure by Gov. David Ige in response to COVID‑19 that mandates a 14-day self-quarantine for individuals entering Hawaii.
Under the governor’s latest COVID-19 order, the Hawaii residents who have remained in the state since the onset of the pandemic — regardless of whether they have self-quarantined within the last 14 days or ever — are free to travel between the islands, maintain and freely enjoy their properties, and engage in commerce with certain businesses. Out-of-staters such as the plaintiffs, by contrast, must self-quarantine in a single location for two weeks before they can share in the same freedoms available to most Hawaii residents.
The statement of interest is part of Attorney General William P. Barr’s April 27, 2020 initiative directing Assistant Attorney General Eric Dreiband for the Civil Rights Division, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The United States Constitution requires government to protect the privileges and immunities of all citizens in our nation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “These privileges and immunities include the right of Americans to travel freely anywhere in our country, and state governments cannot limit the right of out-of-state Americans to travel to their state unless doing so is substantially related to protecting the public safety. The Department of Justice remains committed to defending the constitutional rights of all Americans no matter where they live. The department will continue to be especially vigilant of any infringement on the right to travel that unduly harms the ability of Americans to earn a living and support their families.”
“Reasonable measures designed to protect the public are not only appropriate, but responsible during a pandemic, and the Constitution does not bind the hands of state officials who, through careful thought and deliberation impose such measures,” said Kenji M. Price, the U.S. Attorney for the District of Hawaii. “However, there are bounds to the discretion our public officials have during times of crisis. Those bounds are shaped by constitutional safeguards, such as the right of Hawaii residents and persons who hail from other states to travel freely within this great country. As our state leaders consider the way forward with Hawaii’s 14-day quarantine, it is my hope that they will pay due consideration to the protections embedded in the Constitution, so that visitors from far and wide may experience the Aloha spirit that makes Hawaii such a special place.”
Starting in March, the Governor of Hawaii issued a series of proclamations in response to the COVID-19 pandemic. The latest one, his Ninth Supplementary Proclamation, maintains a mandatory 14-day self-quarantine for anyone entering Hawaii. Those subject to this self-quarantine mandate must confine themselves at a single “designated quarantine location” within Hawaii and not leave there for two weeks (unless they are departing from the state). Anyone who violates the self-quarantine mandate faces up to a year in jail and a $5,000 fine. Those in Hawaii “not subject to the traveler self-quarantine,” by contrast, are free to travel throughout the State — including between islands — for a variety of purposes.
In addition to contributing to the harm suffered by Hawaii’s tourism industry, the self-quarantine mandate precludes out-of-staters who own properties in Hawaii from taking advantage of opportunities available to Hawaii residents who have not left the island since the onset of the pandemic.
In its statement of interest, the United States explains that Hawaii’s self-quarantine requirement effectively discriminates against out-of-state residents. This effective discrimination, based on the evidence and argument presented thus far, appears to be inadequately tailored to further public safety and therefore does not comply with the Constitution. The statement of interest explains that it appears that a close analogue to Hawaii — Alaska — is able to protect public health through less restrictive means. Alaska, like Hawaii, has a low number of COVID-19 cases. Alaska, like Hawaii, is typically reached by airplane. Alaska, like Hawaii, imposes a 14-day self-quarantine mandate on those entering the State. But Alaska, unlike Hawaii, provides out-of-state residents with alternatives to the self-quarantine: (i) they may produce test results showing they tested negative for COVID-19 shortly before departing for Alaska, (ii) they may test for COVID‑19 upon arrival in Alaska and self-quarantine in Alaska until they receive a negative test result, or (iii) they may provide evidence that they have tested positive for COVID-19 in the past and have recovered.
Although Hawaii’s Governor may take reasonable steps to protect public safety during the COVID-19 pandemic, the governor must show that the effective discrimination against out-of-staters at issue here bears a substantial relationship to that goal. As of now, he has not done so.
The federal case is Carmichael, et al. v. Ige, Case No. 1:20-cv-00273 JAO-WRP.
Department of Justice Announces $42 Million to Combat Illegal Manufacture and Distribution of Methamphetamine and OpioidsRead the Press Release
HARRISBURG – U.S. Attorney David J. Freed and the Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) 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.
According to U.S. Attorney David J. Freed, in the Middle District of Pennsylvania, the Pennsylvania State Police will receive over $1.5 million in funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“On a daily basis, we work closely with our partners at the Pennsylvania State Police to investigate and dismantle drug trafficking organizations that are preying upon our citizens,” said U.S. Attorney Freed. “I am very pleased that the COPS program has recognized the great work of PSP and is supporting our joint efforts to fight these highly addictive and often deadly substances by providing over 1.5 million dollars in funding. The Department of Justice clearly recognizes that 85 percent of law enforcement across the country is state and local and that there is no daylight between our shared missions.”
“Drug traffickers exploit the heroin and opioid epidemic to create sophisticated criminal enterprises that put our communities at risk,” said Colonel Robert Evanchick, Commissioner of the Pennsylvania State Police. “The funding announced today will help the state police continue to collaborate with our local law enforcement partners to identify and dismantle these organizations and disrupt the flow of illicit drugs into Pennsylvania.”
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdose 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.
- Pennsylvania State Police will receive $1,504,576 million in funding.
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 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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Dayton business owner charged with COVID-relief fraudRead the Press Release
DAYTON – A Dayton woman appeared in federal court today on charges related to two coronavirus relief Paycheck Protection Program loans.
Nadine Consuelo Jackson, 31, was charged federally with bank fraud and making a false statement to a bank within the jurisdiction of a federal agency related to financial assistance for businesses who are suffering the economic effects caused by the COVID-19 pandemic. The United States has seized more than $1.2 million dollars related to this alleged fraud.
It is alleged Consuelo Jackson fraudulently sought forgivable loans in the amount of $1.3 million and $1.2 million from the Small Business Administration by claiming to have 73 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, the charges allege there were few to no other employees working at Extract LLC. Consuelo Jackson also allegedly submitted false tax documents in support of her fraud.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 27, 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 up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through a program referred to as the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with an interest rate of one percent. PPP loan proceeds must be used by the business on certain permissible expenses like payroll costs. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds on payroll expenses. The amount of PPP funds a business may receive is determined by multiplying its average monthly payroll costs incurred during a specified period.
In Ohio, licensed Class A private investigation and security services businesses must register any employees of their business with the state. The only employee listed for Extract LLC is Nadine Jackson, named as an “Investigator/Caregiver.”
According to an affidavit filed in support of the criminal complaint, on two occasions Consuelo Jackson listed 73 Extract LLC employees with payroll wages totaling more than $800,000 on loan application reports. Loans totaling more than $1 million were initially wired to Consuelo Jackson’s accounts and then flagged. The bank recalled one loan and the Government seized the other.
Court documents say Consuelo Jackson also applied for and received more than $46,000 in Economic Injury Disaster loan funding. It is alleged in her loan application, Consuelo Jackson stated Extract LLC had 8 employees. She then wired the funds in five transactions to another account. A seizure warrant was obtained to seize that money as well.
Four “employees” named on Consuelo Jackson’s applications were interviewed by agents and stated they did not work for the company. Three of the individuals interviewed stated they had never heard of Extract LLC.
“The Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help millions of Americans during this pandemic and the pursuit of those who allegedly participate in pandemic related scams will long remain a significant priority of IRS Criminal Investigation and our federal law enforcement partners,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Consuelo Jackson appeared in federal court today at 11:30 a.m. before U.S.Magistrate Judge Sharon L. Ovington.
Bank fraud is a crime punishable by up to 30 years in prison. Making a false statement within the jurisdiction of a federal agency carries a potential maximum sentence of five years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Donald Abram, Special Agent in Charge, Small Business Administration Office of the Inspector General (SBA-OIG), and Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI) announced the charges. Assistant United States Attorneys Elizabeth R. Rabe and Peter K. Glenn-Applegate are representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Department of Justice Announces $42 Million to Combat Illegal Manufacture and Distribution of Methamphetamine and OpioidsRead the Press Release
BILLINGS – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) this week 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.
In the District of Montana, the Montana Department of Justice will receive $1 million in funding to support investigations into methamphetamine trafficking.
"I am pleased the Montana DOJ will receive this COPS funding to help combat methamphetamine trafficking across our state. Methamphetamine is Montana's number one drug problem and contributes to violent crime across the state. These funds will make a difference," U.S. Attorney Kurt Alme said.
"Meth is killing Montanans and inflicting tremendous damage to our families and communities. I am grateful that the US Department of Justice has extended and expanded the anti-meth grant funding that we first received in 2018. We will use these new funds, in conjunction with 2019 state legislation, to create an additional criminal interdiction team focused on stopping drug traffickers," Montana Attorney General Tim Fox said.
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdose 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.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is 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 Montana Department of Justice is being awarded $1 million through the COPS Anti-Methamphetamine Program (CAMP).
The COPS Office also 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 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 COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
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 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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Courier for Southeastern Connecticut Drug Ring Sentenced to 2 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JACKIE HERNANDEZ, 42, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by four years of supervised release, for her role in a southeastern Connecticut drug trafficking ring.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and crack cocaine, and firearms. Hernandez, who served as a drug courier for another member of the conspiracy, would transport kilogram-quantities of cocaine from a source in New York to Connecticut.
In December 2018, Hernandez was arrested on related state charges after she was found in possession of approximately one kilogram of cocaine.
Hernandez was arrested on a federal criminal complaint on February 21, 2019. On March 5, 2019, a grand jury in Hartford returned an indictment charging Hernandez and 23 other individuals with various offenses. On August 6, 2019, a superseding indictment included charges against an additional two defendants.
On September 13, 2019, Hernandez pleaded guilty to distribute 500 grams or more of cocaine.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Convicted Felon Sentenced for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Isaac Morales, 44, Tomah, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 21 months in federal prison for unlawfully possessing a firearm knowing he was a convicted felon. Morales pleaded guilty to this charge on December 30, 2019.
On February 15, 2019, Morales’ domestic partner called 911 after a disturbance, and said Morales had a gun. Prior to police arriving, Morales hid the handgun and two magazines in an outbuilding. Morales initially told the police that he sold the gun, but then admitted he lied because he is a felon and he knew he couldn’t have the gun. Both Morales and his girlfriend consented to a search of the property, and police recovered a Ruger 9mm pistol with two loaded magazines
In 2007, Morales was convicted of conspiracy to harbor aliens in the Southern District of Texas, and he has multiple misdemeanor convictions. Today, Judge Conley rejected Morales’ request for a sentence of probation, because Morales repeatedly violated conditions of his pretrial release. Morales was remanded to the custody of the U.S. Marshals Service.
The charge against Morales was the result of an investigation conducted by the Tomah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Contractor and Permit Expediter Charged with Corrupting San Francisco City OfficialsRead the Press Release
SAN FRANCISCO – Charges were unsealed today alleging that Walter Wing Lok Wong conspired for over 15 years to defraud the public of their right to the honest services of San Francisco city officials, including Mohammed Nuru, the former head of the San Francisco Department of Public Works, announced United States Attorney David L. Anderson, John F. Bennett, Special Agent in Charge of the Federal Bureau of Investigation, and Kareem Carter, IRS Criminal Investigation Special Agent in Charge.
According to the information, Wong, 70, of San Francisco, is alleged to have conspired with NURU and other unnamed City officials since as early as 2004 to defraud the public through a scheme involving bribery, kickbacks, and the concealment of material information. A second count in the information alleges that Wong also conspired with Nuru and others to engage in money laundering, to disguise and conceal the proceeds of fraud.
A document filed in court along with the information indicates that Wong intends to change his plea to guilty on both counts as early as July 6. As part of that guilty plea, according to the terms of a plea agreement filed on the docket, Wong will provide information, documents, and testimony to the ongoing federal investigation into corruption in San Francisco city government, in exchange for the possibility of reducing his sentence. The conduct underlying the crimes to which Wong was charged were submitted to the court in a separate “Exhibit A” to the plea agreement that was filed under seal and thus is not available to the public. However, government officials have confirmed that Wong is the person previously described as “Contractor 2” in the 75-page complaint affidavit filed earlier this year against Nuru.
Wong is the sixth defendant to be charged as part of the graft probe, and the second to plead guilty. Charges were previously filed against Nuru and local restaurateur Nick Bovis on January 28, 2020. Earlier this month, additional charges were filed against Sandra Zuniga, the Mayor’s Fix-It Director, and contractors Balmore Hernandez and Florence Kong. Bovis has since pleaded guilty and agreed to cooperate with the government.
“The charged conspiracy that we announce today is breathtaking in its duration and scope, alleging more than a decade of fraud and money laundering involving one of San Francisco’s highest ranking public employees, one of its most well-known permit expediters, and other city officials,” said U.S. Attorney Anderson. He added, “As this investigation continues, the breadth and depth of the identified misconduct is widening. To everyone with a piece of public corruption in San Francisco, please understand that here in federal court we will distinguish sharply between those who cooperate and those who do not. If you love San Francisco, and regret your misconduct, you still have an opportunity to do the right thing. Run, don’t walk, to the FBI, before it is too late for you to cooperate.”
“Today’s announcement is part of a complex, ongoing FBI investigation into public corruption in San Francisco city government,” said FBI’s Special Agent in Charge John F. Bennett. “This type of unscrupulous behavior erodes trust in our municipal departments and will not be tolerated. The FBI is committed to investigating any individual or company involved and hold them accountable.”
“Pay-to-play schemes destroy the public’s confidence in government,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “And as we follow the money we are discovering all the players in this scheme, and how this game was played. IRS CI will continue to work with our law enforcement partners to ensure that any individual or company involved in this scheme shall be held accountable for their actions and not go unpunished.”
Wong faces a maximum statutory penalty of up to 20 years in prison on each count, as well as fines that could go as high as $500,000 or twice the amount of funds involved in the money laundering conspiracy. In addition, the court may order additional terms of supervised release and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI.
British Man Sentenced to 70 Months in Prison for Fraud Scheme That Victimized Hundreds of Thousands of U.S. ConsumersRead the Press Release
Gareth David Long, 41, of Las Vegas, Nevada, was sentenced to serve 70 months in prison for running a scheme to steal millions of dollars from hundreds of thousands of consumers, the Department of Justice announced.
Long was sentenced by Judge Andrew Gordon of the U.S. District Court for the District of Nevada as a result of his Nov. 5, 2019, guilty plea to wire fraud and aggravated identity theft charges in connection with the scheme that he operated. As part of his guilty plea, Long admitted that he created and deposited checks drawn on the checking accounts of more than 375,000 victims without authorization during a six-month period in 2013. Although Long had no authorization to charge the victims’ accounts, he represented to victims’ banks that the victims had authorized the debits. When victims called to complain about the charges, Long instructed employees working for him to tell the victims that they had authorized the charges in connection with an online payday loan application. Many of the victims were elderly. Long used the proceeds of this scheme to purchase a ranch and 23 acres of land in Texas, three airplanes, cars, a fire truck, and construction and farm equipment, as well as to pay other personal expenses.
“The defendant exploited his access to sensitive personal and financial information to steal millions of dollars from victims throughout the United States” said Jody Hunt, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice is committed to protecting the public from such identity theft and fraud.”
“The U.S. Postal Inspection Service (USPIS) has been at the forefront of investigating fraud schemes for many years,” said Delany E. De Leon-Colon, Inspector in Charge for the Criminal Investigations Group at the USPIS National Headquarters. “We remain steadfast in our pursuit to safeguard the public from those who take advantage of their trusted access for personal gains. Anyone who engages in this type of fraud scheme should know Postal Inspectors will find them and they will be held accountable for their actions.”
From 2008 through 2013, Long operated a third-party payment processing company, V Internet Corp, which also did business as Altcharge and Check Process. As a payment processor, Long specialized in the creation and deposit of remotely-created checks (RCCs). An RCC is a check created not by the account holder but by the third-party payee. In place of a signature, Long’s RCCs contained a typed statement claiming that the check was authorized by the account holder. Because of this payment processing activity, Long possessed the personal and financial information of hundreds of thousands of consumers whose accounts he debited in 2012 and before.
In January 2013, Long stopped acting as a third-party payment processor for other merchants, and simply started using RCCs to charge the bank accounts of consumers whose personal identifying information he had acquired over the previous five years, as well as other consumers whose information Long purchased in the form of “lead lists.” Long did not have authorization to charge any of these victims’ accounts.
During the wire fraud and identity theft scheme from January through July of 2013, Long created and deposited more than 750,000 RCCs totaling more than $22 million. While approximately half of the RCCs were immediately reversed by victims’ banks, Long nevertheless succeeded in stealing approximately $11 million over a six-month period.
The U.S. Postal Inspection Service seized more than $2.9 million from Long’s company bank accounts. Postal Inspectors also seized property that Long purchased with the proceeds of his fraudulent activity, including three airplanes and the other vehicles and property described above. As part of the sentencing hearing, the court issued a forfeiture money judgment of more than $11.2 million and Long forfeited the ranch and land he purchased in Texas.
Trial Attorneys John W. Burke and Ehren Reynolds of the Civil Division’s Consumer Protection Branch are prosecuting the case in coordination with the U.S. Attorney’s Office for the District of Nevada. USPIS investigated the case.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of training's and outreach sessions across the country since the passage of the Act.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov. If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline: 833–FRAUD–11 or 833–372–8311, every day, 6:00 a.m.–11:00 p.m. eastern time. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.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.
Brandon Man Charged with Threat Against Member of Congress and StaffRead the Press Release
Jackson, Miss. – Newton Wade Townsend, 52, of Brandon, Mississippi, was indicted Tuesday by a federal grand jury and charged with making a threat against public officials, announced U.S. Attorney Mike Hurst and U.S. Capitol Police Chief Steven Sund.
On June 1, 2020, Townsend placed a phone call to the office of a Member of Congress and threatened to kill the Congressman and his African-American staffers.
“A violent threat against a public official is a serious federal crime. The United States Attorney’s Office will continue to protect victims, prosecute those fueled by hate who seek to intimidate and terrorize others, and always ensure that justice is done,” said U.S. Attorney Mike Hurst.
“The mission of the United States Capitol Police is to protect the Congress, the U.S. Capitol, and all who work and visit here. Our special agents did an excellent job in investigating this case, and I appreciate the partnership of our law enforcement partners and the U.S. Attorney’s Office throughout this entire process,” said Chief Sund.
Townsend will be arraigned tomorrow, June 25, 2020, at 2:30 p.m. before U.S. Magistrate Judge Keith Ball. Chief U.S. District Judge Daniel P. Jordan, III has been assigned the case. Assistant U.S. Attorney Meghan M. McCalla is prosecuting the case.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
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Beford Man Arrested for Producing Child PornographyRead the Press Release
CONCORD – Matthew Dion, 48, of Bedford, was arrested on a federal complaint charging him with producing child pornography, United States Attorney Scott W. Murray announced today.
The complaint filed in court alleges that in April of 2020, a 16-year-old foreign exchange student residing with Dion found what he believed to be hidden cameras in the bathroom of Dion’s Bedford home. After obtaining a search warrant, police officers searched Dion’s residence and vehicle. Officers seized various electronic devices, including a Micro SD card that was underneath the seat of his car. On the Micro SD card, officers found sexually explicit images of the 16-year-old student that had been taken in the bathroom while he showered.
Dion was arrested on June 23, 2020, and is scheduled to appear before a federal magistrate judge this afternoon. He was detained pending further proceedings.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bedford Police Department, the Internet Crimes Against Children Task Force, and Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Augusta University Medical Center agrees to pay $2.625 million to settle False Claims Act investigationRead the Press Release
AUGUSTA, GA: Augusta University Medical Center, Inc. (AUMC) has agreed to a settlement with the United States, the State of Georgia, and the State of South Carolina to resolve allegations that AUMC submitted false claims to several government-funded healthcare programs.
The government contended that AUMC violated the False Claims Act by knowingly submitting claims to federal healthcare programs for a procedure that was not covered by Medicare and Medicaid. The investigation involved these medically unreasonable and unnecessary “procedures,” which was referred to as a “Belsey Collis” and billed as a covered procedure, as well as post-surgical follow-up care. From the early stages of the government’s investigation, AUMC actively cooperated and fully committed to both monetary and non-monetary corrective actions for the alleged misconduct.
“Our office is committed to ensuring providers billing federal health care programs do so properly and that the medical care provided is appropriate,” said U.S. Attorney Bobby L. Christine. “AUMC should be commended for its response to the government’s investigation. From the outset, AUMC was cooperative with the government’s investigation and took proactive remedial steps.”
“Every precaution must be taken to ensure that items and services billed to publicly-funded healthcare programs are necessary and comply with program guidelines,” said Georgia Attorney General Chris Carr. “When missteps occur, we appreciate the efforts of institutions like AUMC that seek to remedy the past and improve moving forward.”
“In concert with our partners, our office is committed to safeguarding our nation’s federally and state-funded health care programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We appreciate AUMC’s willingness to cooperate with the investigation and quickly right this wrong.”
“It is vitally important that we protect our government funded health care programs against fraud of any kind,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This case is an example of the cooperative investigative efforts of federal and state partners to make sure monies from these important programs are directed only to legitimate claims.”
“This settlement agreement typifies the efforts of DCIS to protect the integrity of the DoD health care program (TRICARE) from fraud and abuse,” said Special Agent in Charge Cynthia A. Bruce, DCIS Southeast Field Office. “DoD Tricare providers need to be held to the highest standards of care that is deserving of the warfighters they serve.”
“Medicaid is a system of trust, and anytime someone commits healthcare fraud it drives up the cost of care for everyone. This is a case where AUMC worked with state and federal prosecutors and investigators to restore that trust, and I would like to thank those involved in reaching this positive resolution,” said South Carolina Attorney General Alan Wilson.
The claims resolved by this settlement agreement are allegations only, and there has been no determination of liability.
U.S. Attorney Christine and Attorneys General Carr and Wilson lauded the diligent work of the investigatory team, led by Special Agent David J. Graupner of the Department of Health and Human Services Office of Inspector General, Special Agent Jonathan Escobar of the FBI, Special Agent Derek Ranger of the Defense Criminal Investigative Service, and Chief Nurse Investigator Judy Cooper and Investigative Auditor Phoenecia Hunt of the Georgia Medicaid Fraud Control Unit. The United States was represented by Assistant U.S. Attorneys J. Thomas Clarkson and Patrick J. Schwedler. The state of Georgia was represented by Assistant Attorney General James Mooney. Assistance was provided by the South Carolina Office of the Attorney General’s Medicaid Fraud Control Unit.
Assistant Manager at Fresno County Retail Store Arrested for $100,000 in Credit Card FraudRead the Press Release
FRESNO, Calif. — On March 12, a federal grand jury brought a five-count indictment against an assistant manager of a Fresno-area retail store, charging her with bank fraud and use of unauthorized credit cards, U.S. Attorney McGregor W. Scott announced.
According to court documents, Alena Nicole George, 42, obtained the personally identifiable information (PII) of individuals with names similar to her own name, and obtained credit cards in those individuals’ names. For one such credit card, George made at least $100,000 in fraudulent purchases and cash advances. She was arrested today, and is scheduled to be arraigned on Thursday.
This case is the product of an investigation by the Federal Bureau of Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
If convicted, George faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, and a maximum penalty of 10 years in prison and a $250,000 fine for the unauthorized use of credit cards. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Arizona Adoption Attorney Pleads Guilty to Alien Smuggling for Financial GainRead the Press Release
Fayetteville, Arkansas – Acting U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office and Peter Kapoukakis, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Miami Field Office announced today that Paul Petersen plead guilty to the offense of Conspiracy to Smuggle Illegal Aliens for Commercial Advantage and Private Financial Gain. The Honorable Timothy L. Brooks accepted the plea in the U.S. District Court in Fayetteville.
“This plea agreement is one more step on a long road towards putting an end to the illegal adoption practices that have long plagued the Marshallese community in our District,” said Acting U.S. Attorney Fowlkes. “It is my sincere hope that this plea sends a strong message to those who would seek to take advantage of some of the more vulnerable members of our community. We will continue to investigate these cases and will continue to seek justice for all the parties involved. We will also continue to work to end this illegal adoption practice which is nothing more than a sophisticated scheme to not only take advantage of the Marshallese community, but also to swindle prospective adoptive parents out of large sums of money.”
According to the Plea Agreement filed in this case, the FBI, the DSS and local law enforcement, have been actively investigating the criminal activities of Paul Petersen, 44, of Mesa, Arizona, for several years. During the course of the investigation, law enforcement determined that the defendant, Paul Petersen, among other things, orchestrated the travel of several pregnant women from the Republic of the Marshall Islands to the Western District of Arkansas. The purpose of this travel was for Petersen to arrange adoption of their children by families living in the United States.
The Republic of the Marshall Islands (RMI) is an island country near the equator in the Pacific Ocean, slightly west of the International Date Line. In 1983, the United States entered into a Compact of Free Association (hereinafter, the “Compact”) with the RMI government. The United States and the RMI signed an Amended Compact in 2003, which Congress codified at Public Law 108-188. Section 141 of the Compact grants RMI citizens the ability to freely enter and take up employment within the United States. Section 141(b) prohibits RMI citizens from entering the United States under the Compact agreement if their travel is for the purpose of adoption.
According to the Plea Agreement, the Defendant, Paul Petersen, is a licensed attorney who practices law in Arizona, Utah, and Arkansas. During the course of the investigation, FBI and DSS agents discovered that Petersen used credit card accounts that he controlled to purchase airline tickets for several women, all citizens of the RMI who did not have official authorization to enter or reside in the United States, to travel from the RMI to the Western District of Arkansas. This travel arranged and funded by Petersen was in violation of the Immigration and Nationality Act because the women were all citizens of the RMI and were not eligible for admission into the United States under the terms of the Compact. According to State of Arkansas Circuit Court records, the families who adopted these children paid Petersen significant sums of money for him to act as a legal facilitator of the adoptions. Finally, also according to the Plea Agreement, witness interviews conducted by the agents investigating Petersen revealed that it was part of the conspiracy that Petersen’s co-conspirators offered the women $10,000 to induce them to travel to the United States and consent to the adoptions.
“By preying upon both pregnant women from the Marshall Islands and loving Arkansan couples who wanted to adopt children, Mr. Peterson acted in a despicable manner and profited off individuals who simply sought to enrich their families,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “We were proud to work alongside our partners at the Diplomatic Security Service on this investigation, and we hope Mr. Peterson’s case will serve as a warning to others who seek to financially benefit from illegal adoption practices.”
"The Diplomatic Security Service would like to thank our partners in this case, including the RMI government,” said DSS Special Agent in Charge Kapoukakis. “Together, we have prevented further victimization of Marshallese women and abuse of the Compact of Free Association between our countries that permits visa-free travel to the United States under certain conditions. The DSS remains firmly committed to leveraging our worldwide reach and partnerships to prosecute anyone who willfully violates federal law to exploit innocent and vulnerable families.”
Petersen’s sentence will be determined by the court at a later date. Petersen faces a maximum sentence of up to 10 years in prison and a fine up to $250,000 for alien smuggling.
The FBI and the DSS conducted the investigation. Acting U.S. Attorney Clay Fowlkes, Deputy Criminal Chief Kim Harris, and Assistant U.S. Attorney Sydney Butler are prosecuting the case. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also assisted in the investigation.
Akron Man Sentenced to Nine Years in Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Deangelo Reeves, 34, was sentenced to nine years in prison for possession with intent to distribute heroin, followed by a three-year term of supervised release.
“Another drug dealer from Akron. Why am I not surprised? Coming to Charleston to sell heroin – bad move. Throwing his drugs out the window – again, a bad move,” said United States Attorney Mike Stuart. “Reeves is another Akron heroin dealer going to federal prison via the Southern District of West Virginia. Reeves now has nine years to think about how he can become a productive member of society.”
Reeves previously admitted that on March 5, 2018, he was driving a car on McKee Avenue in Charleston and threw a bag of heroin out of the driver’s side window of the car. Reeves admitted that he possessed the bag of heroin and intended to distribute it. The bag Reeves threw out of the car window was recovered by law enforcement and confirmed to be heroin with a weight of 11.96 grams.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. United States District Judge Irene Berger imposed the sentence. Assistant United States Attorney Monica D. Coleman handled the prosecution.
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24 Boston Gang Members and Associates Charged with Cocaine TraffickingRead the Press Release
BOSTON – Twenty-four members and associates of Boston-based street gangs have been charged in federal court in Boston in connection with trafficking cocaine in a Brighton housing development and separately operating a large-scale drug trafficking organization.
“In case anyone needed it, this investigation is yet another reminder that our law enforcement officers are committed to protecting the residents of our communities from harm,” said United States Attorney Andrew E. Lelling. “Despite a pandemic and constant, nationwide criticism of police officers, these agents and officers risked their own safety to take two dozen alleged gang members and drug traffickers off the street, seizing over two dozen firearms, narcotics and cash along the way. Without the help of the Massachusetts State Police, the Boston Police Department, and several other local police departments, today’s arrests would not have been possible. Feel free to thank them for what they do.”
“Drug trafficking, along with the violence that all too often accompanies it, is a serious threat to the safety and security of our communities,” said Acting DEA Administrator Timothy J. Shea. “Drug dealers and street gangs value their own profits over human life, and are responsible for fueling drug addiction and much of the violent crime across America. DEA is committed to working with our state and local law enforcement partners to rid our neighborhoods of these violent criminals and make our streets safer for all.”
“This collaborative operation was intended to target the individuals driving the distribution of illegal drugs and taking advantage of a vulnerable community,” said Boston Police Commissioner William G. Gross. “This operation will greatly improve quality of life for our neighborhoods and protect the health and safety of those affected by drug addiction.”
“During these times of significant societal upheaval and uncertainty, it is critical that we work together to ensure the safety and health of our neighborhoods,” said Suffolk County District Attorney Rachael Rollins. “This 18-month-long investigation is an example of collaboration -- the United States Attorney’s Office, the Drug Enforcement Agency, the Boston Police Department, and my office working to produce today’s arrests and recovery of a cache of weapons and proceeds from this drug conspiracy. It is a clear message that we have not and will not rest until all our communities are safe and free from this criminal and dangerous conduct.”
According to charging documents, since November 2018, federal and local authorities conducted an investigation, dubbed “Operation Snowfall,” of drug trafficking activities by Boston-based street gang members and associates. The first part of the investigation targeted the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple Fidelis Way apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The second part of the investigation targeted large scale drug suppliers and their associates, which included Boston street gang members. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. One defendant, Eric Davis, even traveled to California in April 2020 to try to obtain kilograms of cocaine.
Over the course of this investigation, investigators purchased and seized approximately 1.7 kilograms of cocaine and cocaine base, approximately 27 pounds of marijuana, approximately $200,000 in cash, over 200 rounds of ammunition and 11 firearms.
In addition, 17 search warrants were executed today in Brighton, Dorchester, Roxbury, Dorchester, Hyde Park, Mattapan, Randolph, Holbrook and Braintree. At present, approximately 30 firearms, a half kilo of cocaine and $350,000 has been seized.
The charge of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; DEA Acting Administrator Shea; Boston Police Commissioner Gross; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Braintree Police Chief Mark W. Dubois; Cambridge Police Commissioner Branville G. Bard, Jr.; Canton Police Chief Kenneth Berkowitz; Randolph Police Chief William Pace; Weymouth Police Chief Richard Fuller; Suffolk County District Attorney Rachael Rollins; Norfolk County District Attorney Michael Morrissey; Bristol County District Attorney Thomas Quinn III; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald Jr.; and Norfolk County Sheriff Jerome P. McDermott made the announcement today. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The following defendants were charged with conspiracy to distribute and possess with intent to distribute cocaine and cocaine base:
- Kenji Drayton, 40, of Boston, Mass.;
- Winston McGhee, 36, of Dorchester, Mass;
- Hassan Monroe, 37, of Quincy, Mass;
- Derek Hart, 30, of Everett, Mass;
- Eric Davis, 36, of Mattapan, Mass;
- Maurice Coates, 42, of Randolph, Mass;
- Derrick Hobson, 44, of Boston, Mass;
- Andre Echevarria, 39, of Holbrook, Mass;
- Antone Jeremiah, 28, of Taunton, Mass;
- Michael Stokes, 36, of Boston, Mass;
- Michael Toussaint, 39, of Hyde Park, Mass;
- Kareem Chaplin, 42, of Canton, Mass;
- Tatiana Morrissey, 35, of Boston, Mass;
- Russell Hankerson, 28, of Boston, Mass;
- Jarmina Kallon, 25, of Randolph, Mass;
- Renardo Williams, 43, of South Boston, Mass;
- Tarik Muhammad, 25, of Boston, Mass;
- Matthew Drayton, 43, of Boston, Mass;
- Arthur Hodges, 34, of Lawrence, Mass;
- Jean Aman, 34, of Boston, Mass;
- Nelsin Hernandez, 29, of Brighton, Mass;
- Terrence Daye, 31, of Brookline, Mass;
- Keith Daye, 44, of Brockton, Mass; and
- Phillip Williams, 36, of Brockton, Mass.
Tuesday 23 June 2020
Wisconsin Receives $1 Million to Combat MethamphetamineRead the Press Release
MADISON, WIS. – The U.S. Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced $12 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine. The Wisconsin Department of Justice has been awarded a grant in the amount of $1,000,000.
“Methamphetamine is a dangerous drug that threatens the health and safety of our communities, and these funds will support statewide efforts to combat it,” said Scott C. Blader, United States Attorney for the Western District of Wisconsin. “My office has made the prosecution of those who manufacture and distribute this deadly drug a priority.”
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”`
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is awarding $12 million to 12 state law enforcement agencies, including the Wisconsin Department of Justice. 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 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.
University of Maryland Law School Graduate and National Institutes of Health Employee Charged with Defrauding MedicaidRead the Press Release
WASHINGTON – Susan Engonwei Tingwei, 42, of Silver Spring, Maryland, and Janet Akindipe, 62, of Laurel, 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, District of Columbia Inspector General.
Tingwei and Akindipe 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. 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, in May 2017, Tingwei earned a Master of Laws degree from the University of Maryland’s Francis King Carey School of Law. 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, a full-time employee at the National Institutes of Health (“NIH”), 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 to have 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.
Tingwei appeared in court today before the Honorable Robin M. Meriweather to face charges on the criminal complaint. Akindipe is scheduled to appear tomorrow 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. Both defendants are presumed innocent unless proven guilty.
Today’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 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 Tingwei and Akindipe are being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
U.S. Attorney Wrigley Announces a Bismarck, ND, Man was sentenced to 20 Years in Prison for Cyberstalking and Sexual Exploitation of a MinorRead the Press Release
Bismarck – United States Attorney Drew Wrigley announced that Curtis James McGarvey, Age 52 of Bismarck, ND, has been sentenced to serve 20 years in prison for Cyberstalking and Sexual Exploitation of a Minor. McGarvey pled guilty to the offenses on March 9th, 2020, and was sentenced by United States District Court Judge Daniel Hovland on June 23, 2020. Judge Hovland further sentenced McGarvey to 10 years of supervised release and ordered him to pay $4,892.71 in restitution to the Victims’ Family.
"The defendant targeted and exploited the child victim," said US Attorney Drew Wrigley, "and his efforts to dehumanize and humiliate her stopped today with this sentence, a just result to punish this defendant and deter others."
From September 2016 until January 2017, and again from January 2018 until April 2018, McGarvey persuaded, induced, enticed, and coerced a minor female victim, who was 16 years of age, to engage in sexually explicit conduct for the purpose of producing and distributing visual depictions of such conduct. Also, during that same period, McGarvey harassed and intimidated the minor victim, using an interactive computer service and electronic communications services and systems, causing substantial emotional distress. More specific, McGarvey secretly recorded the minor female victim entering and exiting the shower in her home, changing clothes in a residence, and converting parts of the videos into still images of the victim. McGarvey then used the images to harass and taunt the minor female victim by anonymously sending them to others, including his own minor and adult children, using the fraudulent emails and social media accounts he developed after stealing her personal information from her home and cell phone.
This case was investigated by the Homeland Security Investigations, North Dakota Bureau of Investigation, Burleigh County States Attorney’s Office, and the Burleigh County Sheriff’s Department, and was prosecuted by Assistant United States Gary Delorme
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U.S. Attorney Announces $1 Million Grant to KBI to Fight Meth in KansasRead the Press Release
TOPEKA, KAN. – The Kansas Bureau of Investigation will receive a $1 million grant to fight methamphetamine trafficking, U.S. Attorney Stephen McAllister said today.
The money is part of nearly $42 million the Department of Justice’s Community Oriented Policing Services announced today will be distributed to state law enforcement agencies across the nation to combat the manufacturing and distribution of illegal drugs.
“Methamphetamine trafficking and addiction have been driving forces behind many violent crimes in Kansas, often involving firearms,” McAllister said. “And meth addiction has plagued too many Kansans, ruined lives, destroyed families, and required the expenditure of vast amounts of law enforcement and community resources. These Department of Justice funded efforts to reduce the manufacturing and distribution of meth are a positive event for Kansas.”
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
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.
Two identity thieves sentenced to a collective 7 yearsRead the Press Release
Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, announced today that Ricardo Labrador-Ortiz, age 46, was sentenced to 31-months imprisonment after pleading guilty to one count of misuse of a social security number and one count of aggravated identity theft on January 17, 2020. Renzo Bienvenido Pimentel-Arias, age 49, was sentenced to 54-months imprisonment after pleading guilty to two counts of false claim of citizenship to obtain a federal or state benefit and two counts of aggravated identity theft on January 17, 2020.
According to court documents, Ricardo Labrador-Ortiz and another man, Guillermo Alexander Cruz-Guerrero, age 38, conspired together to use fraudulent identification documents in order to obtain Ohio driver licenses and purchase high-end vehicles and watercraft.
On July 18, 2019, Cruz-Guerrero entered a powersports store in Elyria, Ohio, and attempted to purchase two jetskis using fraudulent identification, phony employment information, and requested a $40,000 loan application. Cruz-Guerrero did not intend to leave a down payment and was adamant about leaving the store with the jetskis as soon as possible. A credit check of the submitted identification and paperwork came back as positive for fraudulent activity. Store employees notified Cruz-Guerrero that the bank was closed and that they were unable to process the loan application and advised him to return the following day. Soon after, Elyria Police were notified of the fraudulent activity and his expected return. Cruz-Guerrero did return the following day and attempted to complete the purchase of the jetskis. Immediately after completing all the necessary paperwork to process the loan and take possession of the jetskis, Cruz-Guerrero was arrested by Elyria Police.
Police were advised of a second individual who had accompanied Cruz-Guerrero in a vehicle outside the store. Police performed a traffic stop of this vehicle and identified the man as Ricardo Labrador-Ortiz. Elyria Police took Labrador-Ortiz and Cruz-Guerrero into custody as part of a fraud investigation.
During a search of both individuals and the vehicle, detectives seized multiple items, including fraudulent driver licenses and numerous sets of keys that appeared to be for storage containers/facilities. Detectives then executed a search warrant on two storage units tied to the seized keys. Inside they discovered printing equipment and other fraudulent documents including identification cards, driver’s licenses, power of attorney forms, bank and credit card information, residency forms and vehicle keys matching models of known stolen vehicles.
On August 08, 2019, Elyria police were notified that the storage unit's lessee was returning to claim his belongings. Police subsequently arrested the individual and later identified him as Renzo Bienvenido Pimentel-Arias.
A background investigation conducted by the FBI and Border Patrol into Renzo Bienvenido Pimentel-Arias revealed that Pimentel-Arias had received a fraudulent identification from Cruz-Guerrero, no immigration history into the United States, and had a long history of using fake identification documents in multiple states.
On August 28, 2019, Ricardo Labrador-Ortiz was indicted on charges of knowingly using another person’s social security number for the purpose of obtaining an Ohio State driver’s license.
On September 26, 2019, Guillermo Alexander Cruz-Guerrero was indicted on two counts of false claim of citizenship to obtain a federal or state benefit and two counts of aggravated identity theft and is awaiting trial.
On October 17, 2019, Renzo Bienvenido Pimentel-Arias was indicted on two counts of false claim of citizenship to obtain a federal or state benefit and two counts of aggravated identity theft.
The investigation preceding this indictment was conducted by the U.S. Customs and Border Protection, Detroit Sector Intelligence Unit, FBI, HSI, Elyria Police Department, Ramey Sector Intelligence Unit, Ohio Bureau of Motor Vehicles, Ohio National Guard Counterdrug Task Force and the New England State Police Information Network. This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson and Jason W. White.
Two Sioux Falls Men Sentenced in Cocaine Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that two Sioux Falls, South Dakota, men convicted of Conspiracy to Distribute a Controlled Substance were sentenced by U.S. District Judge Karen E. Schreier.
Juan Antonio Garcia, Jr., age 34, was sentenced on December 16, 2019, to 70 months in federal prison, followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Byron Alexander Perez, age 35, was sentenced on June 8, 2020, to 30 months in federal prison, followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Garcia and Perez were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 2, 2019. Garcia pled guilty on September 26, 2019, and Perez pled guilty on September 13, 2019.
Beginning on an unknown date and continuing to on or about January 7, 2019, in the District of South Dakota and elsewhere, Garcia and Perez did knowingly and intentionally combine, conspire, confederate, and agree together, with others known and unknown, to knowingly and intentionally distribute 500 grams or more of a mixture and substance containing cocaine, a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, Sioux Falls Police Department, South Dakota Highway Patrol, and the Department of Homeland Security. Assistant U.S. Attorney Tamara P. Nash prosecuted the case.
Garcia and Perez were immediately turned over to the custody of the U.S. Marshals Service.
Two Columbus men sentenced for trafficking methamphetamineRead the Press Release
COLUMBUS, Ohio – Gage Allen Davis, 24, has been sentenced to 96 months in federal prison and Billy Ray Lewis, 39, to 72 months in federal prison for their roles in a methamphetamine trafficking ring in central Ohio in 2019. Both men are from Columbus.
Court documents say investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Division of Police arranged a series of undercover purchases and bought more than 576 grams of meth from the men on separate occasions in September and October 2019.
Davis and Lewis were arrested in November 2019. They each pleaded guilty in February 2020 to one count of conspiracy and one count of drug trafficking.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed June 19 by Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Salvador A. Dominguez represented the United States in this case.
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Texas Man Charged with COVID-Relief Fraud, False Statements and Money LaunderingRead the Press Release
A Texas man was charged in an indictment unsealed today with wire fraud, false statements to a financial institution and money laundering for his alleged participation in a scheme to file fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Stephen J. Cox of the Eastern District of Texas, Special Agent in Charge Donald Abram of SBA Office of Inspector General (OIG) Central Region, Inspector General J. Russell George of the Treasury Inspector General for Tax Administration’s Cybercrime Investigations Division, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency, Assistant Special Agent in Charge Kevin Caramucci of the IRS Criminal Investigation (CI) Dallas Field Office, and Inspector General Jay N. Lerner of Federal Deposit Insurance Corporation (FDIC) made the announcement.
Fahad Shah, 44, of Murphy, Texas, was charged in an indictment filed in the Eastern District of Texas with three counts of wire fraud, one count of false statements to a bank, and four counts of money laundering. Shah was arrested this morning and appeared today before U.S. Magistrate Judge Christine A. Nowak of the Eastern District of Texas.
The indictment alleges that Shah submitted fraudulent applications for over $3 million in PPP loans to two different SBA-approved lenders filed under the name of WBF Weddings by Farah Inc. In these applications, Shah claimed to have over 120 employees earning wages when, in fact, no employees worked for his business at the time, the indictment alleges. The indictment also alleges that Shah submitted fraudulent documentation in support of his applications. Shah ultimately received over $1.5 million in PPP loan funds and used the funds primarily for personal purposes, including purchasing a Tesla, personal investments, and home mortgage payments, the indictment alleges.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was 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. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the SBA OIG’s Houston Division, Treasury Inspector General for Tax Administration Southern Field Division, Federal Housing Finance Agency OIG Dallas Field Office, IRS-CI Dallas Field Office, and FDIC OIG Dallas Regional Office.
Trial Attorneys Della Sentilles and Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Robert Wells for the Eastern District of Texas are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Statement from Attorney General William P. Barr on Introduction of Lawful Access Bill in SenateRead the Press Release
Today, Attorney General William P. Barr issued the following statement on the introduction of a bill that would give law enforcement access to critical digital evidence if permitted by a court while also protecting privacy. The legislation is sponsored by Senators Lindsey Graham, Tom Cotton, and Marsha Blackburn.
“Passing legislation that allows warrant access to encrypted data will allow law enforcement to further provide for the safety and security of the American people. I applaud Chairman Graham and Senators Cotton and Blackburn for introducing the first-ever bill to address this issue.
While strong encryption provides enormous benefits to society and is undoubtedly necessary for the security and privacy of Americans, end-to-end encryption technology is being abused by child predators, terrorists, drug traffickers, and even hackers to perpetrate their crimes and avoid detection. Warrant-proof encryption allows these criminals to operate with impunity. This is dangerous and unacceptable.
Indeed, the danger is particularly great for children who are targeted online for sexual exploitation, especially during this time of coronavirus lockdowns. Survivors of child sexual abuse and their families have pleaded with technology companies to do more to prevent predators from exploiting their platforms to harm children. We cannot allow these companies to elevate their profits and the privacy rights of these abusers over the safety and security of children.
The bill announced today balances the privacy interests of consumers with the public safety interests of the community by requiring the makers of consumer devices to provide law enforcement with access to encrypted data when authorized by a judge. I am confident that our world-class technology companies can engineer secure products that protect user information and allow for lawful access. Data security and public safety are not mutually exclusive. Encryption should keep us safe and secure, not provide an impenetrable safe haven for predators, terrorists, and criminals.”
Springfield Man Sentenced to 25 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for methamphetamine trafficking and illegally possessing numerous firearms.
Timothy Brian Schutten, 36, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole.
On Aug. 8, 2019, Schutten pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing firearms in furtherance of a drug-trafficking crime.
Springfield police officers located Schutten, who had an active parole violation warrant, on Aug. 15, 2017. Schutten had a stolen Ruger .380-caliber semi-automatic pistol and a loaded magazine in one pocket and a cigarette package that contained 4.81 grams of methamphetamine in another pocket. Officers searched the backpack Schutten was wearing and found a Springfield Armory .40-caliber semi-automatic pistol, a Taurus 9mm semi-automatic pistol, four bags that contained a total of 693.5 grams of methamphetamine, a bag that contained 1.09 grams of marijuana, a bag that contains .67 grams of heroin, a pill bottle that contained several unidentified pills, $6,430, drug paraphernalia, a box that contained 40 rounds of .38-caliber ammunition, and three cell phones.
On April 25, 2019, police officers located Schutten, who was again wanted in connection with an active parole violation warrant, as he was walking away from his truck at a local hotel. When officers ordered him to stop, Schutten ran back to his truck, started it, and backed into one of the officer’s patrol vehicles. Schutten then put his truck in drive and accelerated toward the hotel. The truck’s tires began spinning in the grass, causing his vehicle to strike the side of the hotel. Schutten continued accelerating until he struck a tree about 10 feet from the hotel. He got out of his truck and began walking toward the hotel entrance. He refused to stop, despite several verbal commands to do so. Schutten entered the hotel and began running toward the lobby, where an officer deployed his Taser. Schutten fell forward onto the floor and immediately began reaching toward his waistband, where officers would later find a loaded 9mm pistol. After ignoring multiple commands to put his arms behind his back, a second officer deployed his Taser. Officers were ultimately able to subdue Schutten and he was placed under arrest.
Officers searched Schutten and found 19 Xanax pills, 34 oxycodone pills, 2.46 grams of methamphetamine, $2,353, and a loaded firearm. Officers searched his vehicle and found six additional firearms, two of which had high-capacity magazines. (Five of the seven firearms seized from Schutten had previously been reported stolen.) Officers also found assorted gun magazines and ammunition, marijuana, drug paraphernalia, and two cell phones.
This case was prosecuted by Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Solano County Man Sentenced to 17 Years in Prison for Conspiring to Engage in Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — Jeremy Ray Warren, 26, of Vallejo, was sentenced on Monday by U.S. District Judge Kimberly J. Mueller to 17 years in prison for conspiring to engage in sex trafficking of a child, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Feb. 1, 2012, and April 18, 2013, Warren trafficked two minor victims, knowing that force, threats of force, and coercion would be used to cause the minors to engage in prostitution. Between April 23 and April 25, 2013, Warren conspired with Alyssa Tegan Brulez, 26, of Vacaville, to traffic a third minor victim, and to benefit financially from commercial sex acts by the third minor victim.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Vacaville Police Department and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Michael M. Beckwith is prosecuting the case.
“Warren preyed on some of the weakest members of our community – children who lacked strong familial support or were suffering from other instability,” said U.S. Attorney Scott. “He exploited these weaknesses for his personal advantage and gain. The damage he caused can never be undone. The U.S. Attorney’s Office is committed to prosecuting sex traffickers, protecting children, and vindicating victims.”
“No person should ever be coerced, defrauded or sold as a mere commodity to whomever is willing to pay for illicit services,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI works with our law enforcement and community partners to ensure traffickers face justice for their crimes and their victims have an opportunity to escape the cycle of abuse. This sentence sends a clear message that exploitation will not be tolerated in the communities we serve.”
Brulez is scheduled to be sentenced by Judge Mueller on July 20.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Seven Individuals Indicted for Drug Conspiracy (Methamphetamine)Read the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that seven defendants, primarily residents of Pittsburg, Le Flore, and Sequoyah Counties, have been indicted for their roles in a conspiracy to distribute and possess with the intent to distribute methamphetamine in the Eastern District of Oklahoma and elsewhere. Drug Conspiracy is punishable by not less than 10 years imprisonment, and up to a $10,000,000 fine or both. The defendants were indicted on June 9, 2020. A coordinated law enforcement operation to arrest the defendants charged in the indictment began on Tuesday, June 16, 2020. A copy of the full indictment can be found online at go.usa.gov/xwfmV.
Defendants indicted are Heath Lloyd Taylor, age 41, of McAlester, Oklahoma; Kyle Lee Hamby, age 29, of McAlester, Oklahoma; Marlene Annette Garcia aka Marlene Annette Moss, age 38, of Poteau, Oklahoma; Edward Charles Sofsky, age 28, of Poteau, Oklahoma; Rhanda Danielle Chautee Billy aka Rhonda Billy, age 28, of Wister, Oklahoma; Marty Ray CAMPBELL, age 45, of Muldrow, Oklahoma; and Kevin Leon King, age 36, of Muldrow, Oklahoma.
The charges arose from a joint investigation led by Homeland Security Investigations (“HSI”), the Drug Enforcement Administration (“DEA”), and the Sequoyah County Sheriff’s Office. Numerous other agencies played important roles, including HSI task force members from the Oklahoma Attorney General’s Office, the Tulsa County Sheriff’s Office, the Wagoner County Sheriff’s Office, and the Tulsa Police Department, and DEA McAlester HIDTA Task Force members, Bureau of Indian Affairs and the DA District 18 Drug Task Force. The Oklahoma Bureau of Narcotics, Poteau Police Department, DA District 16 Drug Task Force, Arkoma Police Department, LeFlore County Sheriff’s Office, and Choctaw Nation Tribal Police also assisted.
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
“For years Oklahoma has been plagued by the death and destruction that methamphetamine leaves in its wake. Drug cartels and dealers profit while addicts, their families, communities, and society respond to the tragic outcomes,” said United States Attorney Brian J. Kuester. “Over the last several months numerous federal, state, local, and tribal law enforcement agencies joined forces to strike back against a drug trafficking organization whose members are responsible for delivering large quantities of methamphetamine to rural Oklahoma and committing acts of violence to perpetuate their drug trafficking operations. The men and women of those agencies worked tirelessly alongside each other and with members of the United States Attorney’s Office to get to this phase of the investigation. I commend and thank all those agencies that participated.”
“The prosecution of members of this criminal organization is a victory for our communities not only because of the threat they pose to public safety but also the hateful ideology they believe in,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “HSI will continue to aggressively use its ample authority, and pool its expertise and resources with our law enforcement partners to take ruthless drug traffickers and organized criminals off our streets.”
“If you choose to traffic methamphetamine in Oklahoma, you will be caught and held to justice,” stated Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “Through our strong partnerships with area law enforcement and with the support of the Texoma High Intensity Drug Trafficking Area program, the tireless hours spent by our agents, officers, investigators and analysts has made the streets of our hometowns safer.”
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Serial Robber Sentenced to 30 Years in PrisonRead the Press Release
RICHMOND, Va. – A serial robber who calls himself “Mula” was sentenced today to 30 years in prison for robbery and brandishing a gun during a robbery.
According to court documents, Christopher Tatum, 30, of Henrico, committed seven robberies of convenience stores in Henrico County throughout the months of April and May 2019. In each of the robberies Tatum wore similar gloves, pants, and shoes, and was always armed with a firearm. In at least two of the robberies, Tatum had an accomplice who entered the store with him. This accomplice would also help Tatum by scouting locations and occasionally providing Tatum with a firearm to use. During a search of Tatum’s home, law enforcement found the matching clothes, including a pair of distinct yellow gloves on which Tatum had drawn a symbol and his nickname “Mula.” Law enforcement also discovered a firearm under Tatum’s mattress.
Tatum’s criminal history includes two prior convictions for robbery in the State of New York. He was released from his previous period of incarceration for the second robbery in December 2017.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorney Stephen E. Anthony prosecuted 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. 3:19-cr-146.
Seminole County Tax Collector Indicted for StalkingRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Joel Micah Greenberg (35, Lake Mary) with stalking and unlawful use of a means of identification of another person. If convicted on both counts, Greenberg faces a maximum penalty of 10 years in federal prison.
According to the
indictment , Greenberg, who is the elected Seminole County Tax Collector, engaged in a course of conduct that caused and attempted to cause substantial emotional distress to a political opponent who worked at a school located in the Middle District of Florida. As part of that course of conduct, Greenberg caused letters to be sent to the school where the employee worked. The letters falsely represented that they had been sent by an anonymous “very concerned student” of the school who had information that the school employee had engaged in sexual misconduct with a particular student, which Greenberg knew was false.Greenberg also caused a Facebook account to be set up that claimed to belong to a “very concerned teacher” at the school where the school employee had worked. Greenberg caused postings to be made using that account that falsely alleged that the school employee had engaged in sexual misconduct with a student. Greenberg also caused an imposter Twitter account to be set up using the name and photograph of the school employee, without that person’s knowledge, consent, or authorization. Greenberg caused postings to be made using that account that falsely represented that the school employee was a segregationist and in favor of white supremacy.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Secret Service. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
San Antonio Man Pleads Guilty to Fraudulent Income Tax Return PreparationRead the Press Release
In San Antonio today, Richard Medina, Sr., admitted to the preparation of false U.S. Income Tax Returns which contained fraudulent deductions and making a false statement in U.S. bankruptcy proceedings, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
According to public records, the defendant operated an unnamed and unregistered tax preparation business out of his residence from 2013-2016. He assisted clients in preparing their federal income tax returns. On the tax returns he prepared and submitted to the IRS, Medina admittedly included false credits and itemized deductions. Specifically, on a client’s 2015 Individual Income Tax Return, Medina provided fraudulent figures—$6,245 in Residential Energy Credits and itemized deductions totaling $60,451—to which the tax preparer was not entitled. Medina further admitted that he produced over 30 fraudulent tax returns for others and four personal tax returns for a total loss to the U.S. government of $273,372.
Prior to 2013, Medina and his wife filed for bankruptcy protection under Chapter 13. By pleading guilty, Medina admitted that he failed to report to the U.S. Bankruptcy Trustee income derived from his tax preparation business since 2013. Medina also admitted that he made false statements to the Social Security Administration omitting his income derived from his tax return preparation business in order to obtain Social Security disability benefits he would not have otherwise received.
Medina faces up to three years in federal prison and restitution to the IRS for the false tax return charge and up to five years in federal prison for making a false statement in U.S. bankruptcy proceedings. Medina remains on bond pending sentencing scheduled for September 16, 2020, before U.S. District Judge Xavier Rodriguez.
Agents with the IRS—Criminal Investigation conducted this investigation. Assistant U.S. Attorney William R. Harris is prosecuting this case on behalf of the government.
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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.
Romanian National Sentenced to Four Years in Prison for Installing Identity Theft Devices on ATMSRead the Press Release
TRENTON, N.J. – A Romanian national was sentenced today to 48 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey and elsewhere, U.S. Attorney Craig Carpenito announced.
Ionut Paraschiv, 35, previously pleaded guilty to conspiracy to commit bank fraud. U.S. District Judge Peter G. Sheridan imposed the sentence by videoconference this afternoon.
According to documents filed in this case and statements made in court:
Paraschiv admitted he was part of an ATM skimming scheme that stole bank account information by installing hidden card-reading devices on ATMs throughout northern and central New Jersey. Paraschiv previously acknowledged that he and his conspirators created bank cards using the fraudulently obtained account information, which they used to unlawfully withdraw large amounts of cash from various ATMs. The scheme, which involved actual and attempted losses exceeding $1.5 million, impacted over 1,000 bank customers.
In addition to the prison term, Judge Sheridan sentenced Paraschiv to three years of supervised release and ordered him to pay $443,277 in restitution.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski, detectives with the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Kubriet, and detectives with the Woodbridge Police Department, under the direction of Police Director Robert Hubner, with the investigation leading to today’s sentencing. He also thanked detectives with the New York Police Department Financial Crimes Task Force in Brooklyn, New York, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.
Rochester Man Going to Prison for Nearly 15 Years for Stealing over 90 Guns from Chinappi's Gun StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dakota J. Sarfaty, 22, of Rochester, NY, who was convicted of theft of firearms from a Federal Firearms Licensee and possession of stolen firearms, was sentenced to serve 175 months in prison by U.S. District Judge Elizabeth A. Wolford. Sarfaty was also ordered to pay $41,500 in restitution to August Chinappi, the victim of the burglary and the former owner of Chinappi’s Firearms & Supplies.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Sarfaty, along with co-defendants Luis D. Marcano-Agosto and Marcos D. Guzman, broke into Chinappi’s Firearms & Supplies, a gun store located at 5016 West Ridge Road in Spencerport, NY, in the early morning hours of August 16, 2018. Sarfaty entered the basement through a hole in the wall and, together with Marcano-Agosto and Guzman, stole approximately 87 firearms, almost all of which were handguns. Guzman, Sarfaty and Marcano-Agosto then sold many of the firearms on the streets of Rochester. Investigators recovered 14 of the stolen firearms in the days after the theft. Sarafty also broke into Chinappi’s Firearms & Supplies and stole approximately seven firearms on August 12, 2018.
To date, 31 of the stolen firearms have been recovered, while law enforcement authorities are yet to account for 63 stolen firearms.
Co-defendants Marcano-Agosto and Guzman were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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Pueblo Woman Pleads Guilty to Possession with Intent to Distribute OxycodoneRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Connie Gill, age 41, of Pueblo, pleaded guilty to possession with intent to distribute Oxycodone. The defendant appeared remotely while in custody. She was remanded at the conclusion of the hearing. The DEA joined in this announcement.
According to the stipulated facts contained in the plea agreement, between February 8, 2019 and February 27, 2019, Gill possessed with intent to distribute Oxycodone. During this time period, she created dozens of fake prescriptions for Oxycodone, using the names of at least three medical practitioners without their knowledge or permission. She obtained the necessary supplies from local office supply stores and used a publicly available application on her cell phone to design the prescriptions.
Gill directed other individuals to fill or attempt to fill the fraudulent prescriptions at pharmacies in Pueblo and Colorado Springs. After obtaining the Oxycodone from the pharmacy, the defendant and others would divide the pills. In some cases, the defendant paid the other individuals in cash upon receiving the pills.
On February 27, 2019, a confidential informant arranged to purchase methamphetamine from the defendant at her hotel room in Pueblo. The informant purchased 3.06 grams of methamphetamine from the defendant. That same day, Pueblo Police officers executed a search warrant for the defendant's hotel room. Inside, officers found prescription bottles, printed fake prescriptions, blue prescription paper, a printer filled with prescription paper, a paper cutter, and multiple scales.
In all, based on the fake prescriptions that were filled and those which the defendant created but were not yet filled, the defendant either possessed with the intent to distribute or intended to possess with the intent to distribute at least 16.8 grams of Oxycodone.
Gill faces not more than 20 years in federal prison, and up to a $1,000,000 fine.
The defendant was indicted by a federal grand jury on November 21, 2019. She was then charged by information and pleaded guilty on June 23, 2020. Gill is scheduled to be sentenced on November 13, 2020. U.S. District Judge William J. Martinez presided over the change of plea hearing.
This case was investigated by the Denver Division of the DEA. The defendant was prosecuted by Assistant U.S. Attorneys Rajiv Mohan and Jena Rose Neuscheler.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-485.
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.
Project Parkersburg Update: Parkersburg Woman Sentenced to Five Years in Prison for Meth ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman was sentenced to five years in prison for conspiracy to distribute methamphetamine, announced United States Attorney Mike Stuart. Stephanie Eldred, 45, previously admitted that she was part of a drug trafficking ring operating in and around Parkersburg between February and October 2018. At her plea hearing, Eldred stated that she distributed more than 200 grams of methamphetamine that had been supplied by co-defendant Terrence McGuirk.
“Eldred is one of 16 defendants convicted by my office as a result of Project Parkersburg,” said United States Attorney Mike Stuart. “When we took this multi-state network of drug traffickers down, it was a huge win for the City of Parkersburg. An historic quantity of meth, as well as significant amounts of fentanyl, heroin and cocaine were seized. There is no doubt that the collaborative efforts of law enforcement saved lives.”
Eldred is being prosecuted as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin. Stuart commended the investigative efforts of the Federal Bureau of Investigation (FBI), the Parkersburg Police Department, the Dayton (Ohio) Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court and the seizure of 121 pounds of ICE methamphetamine, six kilograms of cocaine, 217 grams of heroin, and 478 grams of fentanyl.
Of the defendants charged in federal court, Todd Land, Jeffrey Hoyler, Nicholas Easton, T.J. Gibson, Edward Marks, Amy Rake, Marshall Polan, and Troy Pastorino have been sentenced. Amanda Atkinson, Aurelius Edmonds, Michael Holley, Terrence McGuirk, Michael Rhodes and Antoine Terry await sentencing later this year. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Joshua Hanks and Jeremy Wolfe are handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Prisoner Sentenced to 15 Months for Mailing Threatening Letters to New Hampshire Residents from PrisonRead the Press Release
CONCORD - Matthew Oliver, 38, formerly of Everett, Massachusetts, was sentenced to 15 months in federal prison for mailing threatening communications, announced United States Attorney Scott W. Murray.
According to court documents and statements made during a jury trial, Oliver mailed the threatening communications while incarcerated at the Onondaga County Justice Center in Syracuse, New York in 2017. In January of 2017, Oliver mailed a letter to a home in New Hampshire that contained a threat to injure the woman who lived in the home. While still incarcerated at the facility in April of 2017, the defendant mailed another letter to the home that contained a threat to assault the woman’s daughter.
Oliver was found guilty by jury on November 19, 2019.
“Violent threats damage the personal peace and security of victims and are not protected by the First Amendment,” said U.S. Attorney Murray. “Those who send violent threats through the mail are not exercising free speech rights, they are committing crimes that undermine the rights of their victims. We will not tolerate such threats. Rather, we will work closely with our law enforcement partners to identify, prosecute, and incarcerate the criminals who send them.”
“With today’s sentence, Matthew Oliver is finally being held accountable for terrorizing two women with violent threats, causing them to fear for their physical safety,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Let this case be a warning to others who are seeking to exact revenge while behind bars; the FBI and our law enforcement partners will not hesitate to take swift action against anyone who tries to continue their criminal conduct by sending threatening hate mail."
The Seabrook New Hampshire Police Department, the Onondaga County Sheriff’s Office, and the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Anna Krasinski and former Assistant U.S. Attorney Robert M. Kinsella prosecuted the case.
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Pittsburgh Man Indicted for Possessing Destructive DevicesRead the Press Release
PITTSBURGH, PA - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Matthew Michanowicz, 52, as the sole defendant.
According to the Indictment presented to the court, on or about May 31, 2020, Michanowicz knowingly and unlawfully possessed firearms, that is, three destructive devices, which were not registered to him in the National Firearms Registration and Transfer Record. A Criminal Complaint filed previously alleges Michanowicz was responsible for planting a backpack with homemade explosives at 2 PNC Plaza in downtown Pittsburgh on May 31, 2020.
The law provides for a maximum total sentence of not more than ten years in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Superseding Indictment named Raymont Wright, 50, as the sole defendant.
According to the Superseding Indictment, on or about July 24, 2014, Raymont Wright, who has previously been convicted two times of Possession with Intent to Distribute a Controlled Substance, and once of Aggravated Assault, was found to be in possession of a 9 millimeter pistol. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pikeville Man Sentenced to 240 Months for Firearm OffensesRead the Press Release
PIKEVILLE, Ky. - A Pikeville man, Richard Starghill, 43, was sentenced on Tuesday, to 240 months in federal prison, by U.S. District Court Judge Karen Caldwell, following his convictions for being a felon in possession of a pistol and sawed-off shotgun.
According to testimony at his trial, the Kentucky State Police responded to a complaint that Starghill had refused to leave another person’s residence. He was then found in possession of a loaded revolver and a sawed-off shotgun. Starghill has a lengthy criminal history, including multiple convictions for drug trafficking and a recent conviction for felony assault.
Under federal law, Starghill must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge of the FBI Louisville Field Division; and Rodney Brewer, Kentucky State Police Commissioner, jointly announced the conviction.
The investigation was conducted by FBI and KSP. The United States was represented in the case by Assistant U.S. Attorney Jason Parman.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Pikeville Man Sentenced to 22 Months for Distributing HydrocodoneRead the Press Release
PIKEVILLE, Ky. - A Pikeville man, Jimmy Lee Moore, 69, was sentenced to 22 months, by U.S. District Judge Karen Caldwell, after previously pleading guilty to distributing hydrocodone.
Moore admitted that between 2016 and 2018, he provided hydrocodone and gabapentin to others, in Pikeville, including a minor. Moore also admitted that he stored and distributed the controlled substances on his property.
Moore pleaded guilty in March 2020.
Under federal law, Moore must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years. Moore will also be required to pay $20,000 in lieu of forfeiture.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge of FBI, Louisville Field Division; and Christopher Edmonds, Chief of the Pikeville Police Department, jointly announced the sentencing.
The investigation was conducted by the FBI and the Pikeville Police Department. The United States was represented by Assistant U.S. Attorney Hydee Hawkins.
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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Pass Christian Man Pleads Guilty to Trafficking FentanylRead the Press Release
Gulfport, Miss – Carter Tranh Tran, 43, of Pass Christian, entered a guilty plea yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute fentanyl, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (“DEA”).
In 2018, DEA agents were investigating Tran when Tran sold what was purported to be 100 pills of Percocet and 128 pills of Adderall in the parking lot of a Biloxi nightclub. When tested by the DEA lab, the purported Percocet turned out to be methamphetamine and the purported Adderall was actually 56.76 grams of fentanyl. The DEA estimates that fentanyl is lethal in the two milligrams range; therefore, this was enough fentanyl to kill approximately 28,000 people. When DEA arrested Tran, they recovered 14 pounds of marijuana from his home and an additional 13 pounds of marijuana from his business in Gulfport.
Tran will be sentenced by Judge Ozerden on September 28, 2020 at 10:00 a.m., and faces a maximum penalty of 20 years in prison and a $1,000,000 fine.
The Gulfport Police Department and the Drug Enforcement Administration investigated the case. Assistant United States Attorney Annette Williams is prosecuting the case.
Parkersburg Man Pleads Guilty to Firearm and Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pled guilty today to federal charges related to the trafficking of methamphetamine and the possession of a firearm while involved in drug trafficking, announced United States Attorney Mike Stuart. James Daniel Canty, 60, pled guilty to possession with intent to distribute methamphetamine and using and carrying a firearm during and in relation to a drug trafficking crime.
“A gun-toting meth dealer with six prior felony convictions,” said United States Attorney Mike Stuart. “Bad actors like Canty endanger our communities and that’s why we are laser-focused on making sure the traffickers and the wrong-doers are caught and prosecuted.”
Canty admitted that on November 30, 2019, following a traffic stop by members of the Parkersburg Police Department on Plum Street near Jefferson Elementary School in Parkersburg, he was found to be in possession of approximately 55 grams of methamphetamine as well as a loaded .25 caliber semi-automatic pistol with an obliterated serial number and a box of .25 caliber ammunition. Canty further admitted that he intended to distribute the methamphetamine that he possessed, and that he possessed the firearm for the purpose of protecting himself and the methamphetamine that he was carrying. Canty has a long criminal history, which includes six prior felony convictions.
Canty faces up to life in prison when sentenced on September 21, 2020.
The Parkersburg Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
The case is being prosecuted as part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Follow us on Twitter: SDWVNews and USAttyStuart
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Oswego Man Charged with Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Richard Alvarado, age 26, of Oswego, New York, appeared yesterday in federal court on charges that he distributed and possessed child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, on February 29, 2020, Alvarado distributed videos of child pornography through a group messaging application on his cellular phone, including video files depicting sexual conduct with children between 5 and 9 years old. An examination of his cellular telephone revealed that it contained numerous image and video files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Alvarado faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Alvarado appeared today before United States Magistrate Judge Andrew T. Baxter, and was detained pending further proceedings.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Geoffrey Brown.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Omaha Man Sentenced to 46 Months for Healthcare FraudRead the Press Release
United States Attorney Joe Kelly announced that Nereus Sutko, 38, of Omaha, Nebraska, was sentenced today in federal court in Omaha for healthcare fraud. Chief United States District Judge John M. Gerrard sentenced Sutko to 46 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Sutko will serve a 3-year term of supervised release. Sutko will also be required to pay $809,561 in restitution and will forfeit certain property, including a Corvette and a speedboat.
In 2017, investigators began receiving reports of suspicious billings by Better Lives, LLC. The investigation showed that between 2010 and 2019, Sutko operated Better Lives, an Omaha-based business purporting to sell durable medical equipment to Medicare and Medicaid beneficiaries. Sutko hosted pizza parties and other gatherings at senior living residences and low-income housing facilities and obtained healthcare program beneficiaries’ personal and insurance information under the guise of providing free items such as heating pads or shoe inserts. Sutko offered gift cards and other rewards to people who referred healthcare beneficiaries to him or provided him with the names and insurance information of beneficiaries. Sutko then billed healthcare programs, including Medicare, Nebraska Medicaid, and Iowa Medicaid for fitted braces and other durable medical equipment that was never prescribed for nor provided to the beneficiary. Investigators interviewed dozens of beneficiaries throughout their investigation. Sutko primarily targeted beneficiaries in the Lincoln and Omaha, Nebraska, and Des Moines, Iowa areas. Between 2010 and 2019, Sutko was paid more than $1.8 million by Medicare, Nebraska Medicaid, and Iowa Medicaid. On May 8, 2019, investigators from multiple federal and state agencies executed a search warrant at Sutko’s residence in Omaha and took Sutko into custody on a federal arrest warrant.
United States Attorney Joe Kelly reminds the public that elder fraud and schemes that target and use the elderly are a priority of the Department of Justice.
“Sutko thought his scams would result in riches, but he failed to account for the commitment of our investigators to root out such fraud,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our Federal and State law enforcement partners to protect taxpayers and the integrity of government health programs.”
This case was investigated by the United States Department of Health and Human Services Office of Inspector General Office of Investigations, the Iowa Medicaid Fraud Control Unit, and the Nebraska Attorney General’s Office Medicaid Fraud and Patient Abuse Unit with assistance from the Social Security Administration Office of Inspector General Office of Investigators.
North Versailles Men Indicted in Fraud Scheme that Used Credit and Debit Card Numbers of OthersRead the Press Release
PITTSBURGH - Two residents of North Versailles, PA, have been indicted by a federal grand jury in Pittsburgh on charges of bank and access device fraud, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on June 17, and unsealed today, named Matthew Holmes, 27, and Justin Livingston, 27, both of North Versailles, PA, as defendants.
According to the Indictment, from in and around July 2018, and continuing thereafter until in and around September 2018, Holmes and Livingston conspired to commit bank fraud and access device fraud. Additionally, during the same time frame, Holmes and Livingston are alleged to have used and attempted to use credit and debit card numbers belonging to other people and as a result, obtained goods valued at more than $1,000.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Department of Homeland Security/Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment- Indictment
New York City Man Pleads Guilty to Cyberstalking and Posting Naked Photos of Victim OnlineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Charles Regalbuto, 27, of New York City, pleaded guilty before U.S. District Judge Charles J. Siragusa to cyberstalking. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that beginning in October 2014, the defendant sent multiple text messages to the Victim, threatening to publish naked photographs of the Victim on various social media websites. In one text message, Regalbuto stated: "I'll ruin your life the way you ruined mine." The defendant also sent a threatening text stating that he would kill the Victim and himself.
In 2017, without permission to do so, Regalbuto posted the naked photographs of the Victim on social media sites, resulting in multiple internet users seeing the photos along with the Victim’s name associated with the photos. Several individuals contacted the Victim after seeing the photos and asked if the Victim was the person in the photos, causing the Victim emotional distress.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
Sentencing is scheduled for October 5, 2020, before Judge Siragusa.
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Natrona Heights Sex Offender Pleads Guilty to Possessing Sexually Exploitive MaterialRead the Press Release
PITTSBURGH - A resident of Natrona Heights, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jack Ulrich, Jr., age 42, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on October 12, 2018, Ulrich, Jr., unlawfully possessed more than 100 photographs and videos in computer graphics files, which depicted minors, some of whom were under the age of 12 years, engaged in sexually explicit conduct. At the time of the offense, Ulrich was a registered sex offender, having been convicted in 2006 of a sex offense involving minors in the Court of Common Pleas of Westmoreland County, Pennsylvania. Ulrich admitted to possessing and sharing the sexually exploitive material with other individuals using, among other applications, Chatous, Facebook, and Dropbox.
Judge Horan scheduled sentencing for August 13, 2020 at 10:45 a.m. The law provides for a maximum total sentence of not less than 10 years or more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Ulrich.
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.justice.gov/psc.
Monmouth County Man Charged with Tax Evasion, Corrupt Interference with Administration of Internal Revenue Laws, and Failure to File Tax ReturnsRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was charged today with tax evasion, corrupt interference with the administration of the Internal Revenue laws, and failure to file federal tax returns, U.S. Attorney Craig Carpenito announced.
Thomas Bertoli, 62, of Matawan, New Jersey, is charged by indictment with three counts of tax evasion, one count of corrupt interference with the administration of the Internal Revenue laws, and four counts of failure to file tax returns. He will be arraigned at a later date.
According to the indictment:
Bertoli operated the following businesses: The Doormen Inc.; City Street Associates LLC, a/k/a CSA LLC; and Urban Logistics LLC. Individually and through his companies, Bertoli obtained payments from clients for services provided, including payments from developers and construction firms for expediting services on real estate development and construction projects, primarily in Jersey City, New Jersey; and payments from political campaigns for political consulting services in New Jersey. Expediting in the construction industry typically refers to facilitating the acquisition of building permits and other government agency approvals required for the completion of real estate projects.
Bertoli obtained hundreds of thousands of dollars in gross receipts for calendar years 2009 to 2016. Bertoli had not, as of April 18, 2017, filed federal tax returns or paid any of the taxes due, other than a $5,000 nominal payment in September 2014, for those years, despite receiving substantial gross receipts and having a substantial tax due and owing. He concealed and attempted to conceal from the IRS his income and assets through various means; Bertoli cashed at check cashers payments from his clients, made false and fraudulent statements to the IRS, and used the Urban Logistics bank account for personal expenditures.
Bertoli is charged with evasion of payment of taxes for calendar years 2009 to 2013 and evasion of assessment of taxes for calendar years 2014 and 2015. He also is charged with corrupt interference with the administration of the Internal Revenue laws and failing to file tax returns for calendar years 2013 to 2016.
Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum $250,000 fine. The charge of corrupt interference with the administration of the Internal Revenue laws carries a maximum potential penalty of three years in prison and a $250,000 fine. Each charge of failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez and special agents of the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Jihee G. Suh of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.