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Tuesday 16 June 2020
South Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man has pled guilty to a drug crime, announced United States Attorney Mike Stuart. Clay Dempsey, 37, pled guilty to aiding and abetting the possession with intent to distribute a quantity of fentanyl.
“Our cities and towns have had enough of drug peddlers and the mules they get to transport their poison,” United States Attorney Mike Stuart said. “My office has successfully and aggressively cleaned up many of our streets from drugs and every day we are making West Virginia a safer place to live.”
Dempsey admitted on January 27, 2020, at co-defendant Troskey Banks’ direction, he drove to Cleveland, Ohio and met with an individual. That individual then directed him to a location where a maroon minivan was parked. Dempsey switched the van he drove to Cleveland and drove the maroon minivan back to South Charleston. Banks directed him to park the minivan at a specific address in South Charleston. Dempsey parked the van at the location directed by Banks with the intent to come back later and meet with Banks to allow him to get inside the van and retrieve the controlled substances stored inside. Dempsey admitted that he knew that the purpose of his trip was to bring back controlled substances for Banks to distribute. Officers with the South Charleston Police Department later searched the van and recovered a bag of suspected fentanyl weighing approximately 105.2 grams, which field-tested positive for the presence of fentanyl and a bag of suspected methamphetamine weighing 118.7 grams, which field-tested positive for the presence of methamphetamine.
Dempsey faces up to 20 years in prison when sentenced on October 28, 2020. Banks is scheduled for trial on July 27, 2020.
The Metropolitan Drug Enforcement Network Team (MDENT) and the South Charleston Police Department conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Monica D. Coleman and third-year law student intern Richard McCutcheon handled today’s plea hearing.
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Somerset Man Pleads Guilty to the Production of Child PornographyRead the Press Release
LONDON, Ky. - A Somerset, Kentucky man, Bradley D. Hall, 38, pleaded guilty on Tuesday, before U.S. District Court Judge Claria Horn Boom, to two counts of production of child pornography.
According to his plea agreement, on September 15, 2019, Hall engaged in a conversation with an undercover FBI employee using the Kik messenger application. Hall admitted to operating a Kik messenger group which focused on child exploitation. Hall admitted to recording, live streaming, and sending videos of child pornography to the undercover FBI employee.
Hall was indicted in September 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Jenna Reed.
Hall is scheduled to be sentenced on October 27, 2020. He faces a minimum sentence of 15 years in prison, a maximum sentence of 60 years, and will be responsible for restitution to the victim in the case. However, the sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Selma Man with Felony Manslaughter Conviction Sentenced to Five Years in Prison for Possessing Stolen FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Oscar Dewayne Blevins, 26, of Selma, Alabama, was sentenced in federal court for being a convicted felon in possession of a firearm. Blevins pleaded guilty to the charge in March of 2020.
In connection with his guilty plea, Blevins admitted that on December 29, 2019, he was stopped at a driver’s license checkpoint for driving a car with no tag. Deputies with the Dallas County Sheriff’s Office noticed the odor of marijuana emanating from the car. Deputies asked Blevins, the sole occupant of the car, if he had smoked any marijuana inside the car. Blevins replied, “yes,” and stated that he had “smoked some last night at the club.” Blevins gave deputies consent to search the car. Deputies recovered a loaded Hi-Point 9mm pistol underneath the driver’s seat. Blevins admitted to possessing the pistol, which had been reported stolen. Blevins also admitted that he knew he was a convicted felon and therefore could not possess firearms. At the time he possessed the pistol, Blevins had prior felony convictions for Manslaughter and Possession of Marijuana, First Degree in the Circuit Court of Dallas County, Alabama.
Senior United States District Court Judge William H. Steele imposed a sentence of 60 months’ incarceration, to be followed by a three-year term of supervised release. During that time, Blevins will undergo testing and treatment for substance abuse and will receive mental health evaluation and treatment. The court did not impose a fine, but the judge ordered Blevins to pay $100 in special assessments.
This case was investigated by the Dallas County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin D. Roller.
Selma Man Sentenced to Maximum After Trial on Gun ChargesRead the Press Release
Richard W. Moore, United States Attorney for the Southern District of Alabama, announces that Jessie James Turner, Jr., has been sentenced to ten years in prison after his conviction of being a felon in possession of a firearm. Turner’s jury trial took place at the federal courthouse in Selma, Alabama in November 2019.
United States District Court Judge Terry F. Moorer presided over the trial and imposed the 120-month sentence, which is the maximum amount allowed by federal law. According to testimony at the trial, the case arose after Turner started firing a gun through walls of his apartment and the Selma Police Department was called to the scene. Turner was found in possession of two AR-15 assault rifles and a .40 caliber handgun. Under federal law, Turner is prohibited from possessing firearms or ammunition as a result of his previous felony convictions which included Criminal Mischief, 1st; Certain Persons Forbidden to Possess a Firearm; Assault, 2nd; and an additional conviction for Assault, 2nd. Before announcing the sentence, Judge Moorer specifically found that Mr. Turner was a danger to the community.
The case was tried by Assistant United States Attorney (AUSA) Kasee S. Heisterhagen with the assistance of AUSA George F. May. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Selma Police Department.
San Antonio Man Charged with Transporting a Minor Living in Boston to Texas to Engage in Sexual RelationsRead the Press Release
A federal judge today unsealed a criminal complaint charging 48–year-old San Antonio resident Shannon Kuchler with driving to Boston to pick up a minor he met on the “Dark Web” and transport her to San Antonio in order to engage in sexual relations, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The criminal complaint charges Kuchler with transportation of a minor with intent to engage in criminal sexual activity. According to the criminal complaint, the defendant met his 16-year-old victim on the “Dark Web” in 2019. In December 2019, Kuchler traveled to Boston, picked up his victim and transported her to San Antonio. On several occasions during the trip to Texas, Kuchler engaged in sexual intercourse with his victim. After arriving in San Antonio, the complaint alleges that Kuchler sexually assaulted the victim on two occasions and forced her to engage in oral sex.
The U.S. Marshals Service arrested Kuchler at his residence yesterday. Kuchler remains in federal custody pending a detention hearing at 9:30am on June 23, 2020, before U.S. Magistrate Judge Henry Bemporad in San Antonio.
The FBI’s San Antonio Crimes Against Children Task Force, San Antonio Police Department, Boston Police Department and the Suffolk County District Attorney’s Office in Boston investigated this case. Assistant U.S. Attorney Bettina Richardson is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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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.
Ryan Wall Imprisoned for $1.2 Million FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Ryan Wall, 42, a former Quechee resident who now lives in Florida, was sentenced today in United States District Court in Rutland to 51 months of imprisonment following his guilty plea to a charge of wire fraud. Chief Judge Geoffrey Crawford also ordered that Wall serve a two-year term of supervised release following completion of his prison sentence. He also entered a preliminary order that Wall pay $470,000 in restitution to 18 victims; that order is subject to modification if additional victims file claims. The court ordered that Wall surrender to the Bureau of Prisons on September 8 to begin serving his sentence.
In March 2019, a federal grand jury in Rutland returned a two-count indictment charging Wall with wire fraud and possessing firearms as an unlawful user of narcotics. Wall pleaded guilty to the wire fraud charge last December. According to the indictment and court records, TSBS, LLC was a company that offered tax preparation and payroll processing services. Wall was the sole employee of TSBS Payroll, the payroll processing subsidiary of TSBS, LLC. TSBS Payroll provided services to about 35 individuals, business and non-profit organizations in Vermont and New Hampshire in the Upper Connecticut River valley. On a weekly or biweekly basis, TSBS Payroll received funds from its clients that were to be used to prepare payroll checks for the clients’ employees, and tax withholdings that were to be paid over to federal and state taxing authorities.
Beginning no later than March 2012 and continuing until September 2018, Wall misappropriated portions of the funds that had been entrusted to TSBS Payroll for tax withholding purposes. He committed this fraud by issuing TSBS Payroll checks to himself and then either cashing the checks or depositing them into a personal bank account. He also issued hundreds of checks to a third party, who helped Wall obtain illegal prescription opiates, heroin and crack cocaine. Most of the money Wall stole was used to buy drugs. The total loss to victims was approximately $1.2 million. As a result of this fraud, a number of victims suffered extreme financial hardship, including bankruptcy, loss of businesses and postponed retirements.
Wall is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
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.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on June 15, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Gabriel White Lance, age 20, was sentenced to 19 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Lance was indicted by a federal grand jury on September 10, 2019. He pled guilty on March 24, 2020.
The conviction stemmed from an incident that occurred on March 23, 2019, in Todd County, South Dakota. On that date, White Lance was consuming alcoholic beverages and socializing with a group of individuals that included the 14-year-old victim. White Lance subsequently engaged in sexual activity with the victim.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Lance was immediately turned over to the custody of the U.S. Marshals Service.
Rome City, Indiana Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Tommy Gibson a/k/a “Two-Tone”, age 56, of Rome City, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his plea of guilty to distribution of methamphetamine, announced U.S. Attorney Kirsch.
Gibson was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents presented in this case, in early 2018, multiple undercover purchases of methamphetamine were conducted from Gibson. On March 28, 2018, Gibson was indicted and ultimately pled guilty to the sale of 50 grams or more of methamphetamine.
The case was investigated by the Drug Enforcement Administration with the assistance of the Noble County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Retaliating Against a Witness Who Provided Information to Law Enforcement About Neopit Woman’s Drug Dealing Leads to Prison SentenceRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that a woman received a sentence related to her involvement in a July 2019 fatal drug overdose on the Menominee Indian Reservation. Elmira J. Corn (Age: 29), formerly of Neopit, which is on the Menominee Indian Reservation, will serve 24 months in prison, followed by 36 months on supervised release. Senior United States District Judge William C. Griesbach imposed the sentence on June 9, 2020 in United States District Court in Green Bay. Corn pleaded guilty on December 30, 2020, to Obstructing Justice by Retaliating Against a Witness in violation of Title 18, United States Code, Sections 1513(b)(2) and 2.
The investigation revealed that in the early morning hours of July 9, 2019, Corn and another individual delivered a pill containing Fentanyl to another person at a residence in Neopit. The second person, identified as Leon Caldwell (age: 37), consumed part of the pill and died of a fentanyl overdose a few hours later. Witnesses revealed Corn purchased a number of pills from a source in Milwaukee a few days prior. Corn consumed and sold some of the pills, and gave one to another person shortly before he shared half of the pill with Caldwell.
While tribal and federal investigators interviewed witnesses and put together the case, Corn accosted a witness and threatened the person for cooperating with law enforcement and providing truthful information about Corn’s drug dealing. Corn’s threats culminated on October 6, 2019, when Corn and others found the witness outside a house in Neopit. Corn then encouraged another woman to attack the witness. The assault, coordinated by Corn, resulted in the woman sustaining neck, head, and arm injuries. Tribal and federal investigators arrested Corn on October 10, 2019, after a federal criminal complaint was filed in United States District Court for the Eastern District of Wisconsin in Green Bay.
In sentencing Corn, Judge Griesbach noted the seriousness of the crimes the defendant committed, and pointed out “this was an assault not just of the victim but of the whole justice system.” Judge Griesbach also remarked upon Corn’s prior history of violence in tribal court matters, and the need to send a message not just to the defendant but the entire community: “This behavior is not going to be tolerated.”
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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Rankin County Man Pleads Guilty to Making and Passing Counterfeit CurrencyRead the Press Release
Jackson, Miss. – Purvis Dustin Ward, 33, of Rankin County, Mississippi, pled guilty today before U.S. District Judge Carlton W. Reeves to one count of making counterfeit currency and one count of passing counterfeit currency, announced U.S. Attorney Mike Hurst and Resident Agent in Charge Shawn Wolfe of the United States Secret Service.
An investigation by the Rankin County Sheriff’s Office, the Pelahatchie Police Department and the Brandon Police Department identified Ward as an individual who had been making and passing counterfeit United States currency. On November 2, 2019, several residents of Rankin County reported that a man and a woman had been making purchases at garage sales using counterfeit currency. One of the local residents took a picture of the suspects’ car and provided a tag number and description to law enforcement. Officers from the Pelahatchie Police Department later stopped the vehicle. During the stop, officers observed what appeared to be counterfeit United States currency in plain view in the vehicle. Ward and another individual were arrested for possession of counterfeit currency.
Rankin County Deputies obtained a search warrant for Ward’s residence and located counterfeit currency, uncut sheets of counterfeit currency as well as two computers, three printers, specialty ink and paint, all of which was used to produce counterfeit currency.
Ward will be sentenced by Judge Reeves on September 15, 2020, and faces a maximum penalty of up to 40 years in federal prison and $500,000 in fines.
The case was investigated by the United States Secret Service, the Rankin County Sheriff’s Office, the Pelahatchie Police Department and the Brandon Police Department. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Operation Shutdown Corner Update: Beckley Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
BECKLEY, W.Va. – A Beckley man pled guilty today for his participation in a drug trafficking operation in Raleigh County, announced United States Attorney Mike Stuart. Oyontikeyta Jones, 41, pled guilty to conspiracy to distribute more than 500 grams of a substance containing methamphetamine and to being a felon in possession of a firearm. Jones was one of 17 defendants charged in federal court as a result of a long-term investigation known as Operation Shutdown Corner.
“When we get gun toting drug dealers like Jones off of our streets, it is a big win for West Virginia communities,” United States Attorney Mike Stuart said. “I commend the work of all the agencies that helped bring the members of this particular drug trafficking organization to justice.”
At the plea hearing it was established that between June 2018 and September 17, 2019, Jones worked with other members of a drug trafficking organization (DTO) to facilitate the distribution of methamphetamine in Raleigh County. During this time period, Jones had methamphetamine shipped from California to the Southern District of West Virginia. This was accomplished by having packages delivered to other members of the DTO. Jones or others would then give directions on where the drugs should be delivered. More specifically, on August 9, 2019, a package from California was delivered to a residence in Bluefield. Jones directed the recipient of that package to bring the package to Raleigh County, and meet him at a specified location. After Jones was picked up by the other member, a traffic stop was made in Beckley on the car that Jones was a passenger. When the officer approached the car, Jones fled on foot but was later apprehended at a nearby business. During a search of the car, officers found the package that had just been shipped from California. The package contained approximately two pounds of methamphetamine.
Additionally, during the hearing, it was established that on August 6, 2019, officers with the Raleigh County Sheriff’s Department approached Jones while he was stopped on the side of the road. At this time, officers found a Glock, model 26, 9mm semi-automatic pistol. It also was established that earlier that same day, Jones was observed on video surveillance possessing that same firearm. Jones knew that he was prohibited from possessing any firearm due to being convicted of another felony offense in California. The United States was able to establish that the firearm was operable and traveled in and affected interstate commerce.
Stuart commended the cooperative investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department and the West Virginia State Police.
Jones faces a mandatory minimum period of 10 years and up to life in prison, and a fine of up to $10 million when he is sentenced on October 2, 2020.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecutions. The plea hearing was held before United States District Judge Frank W. Volk.
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Okreek Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Okreek, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on June 15, 2020, by U.S. Magistrate Judge Mark A. Moreno.
Sheldon Denoyer, age 30, was sentenced to 9 months in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Denoyer was indicted by a federal grand jury on February 11, 2020. He pled guilty on June 15, 2020.
The conviction stemmed from an incident that occurred in Mission, South Dakota, on August 12, 2019, wherein Denoyer assaulted his girlfriend, causing bodily injury.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Denoyer was immediately turned over to the custody of the U.S. Marshals Service.
Ohio man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Keith Frazier, of Columbus, Ohio, was sentenced today to 84 months incarceration for drug distribution, U.S. Attorney Bill Powell announced.
Frazier, also known as “KK,” age 44, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location” in January 2020. Frazier admitted to selling cocaine near Luau Manor in Ohio County in March 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Ohio Man Admits Trafficking Heroin near Oliver Plaza Apartments in Duquesne PARead the Press Release
PITTSBURGH, PA - A resident of Columbus, Ohio, pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Evan Jones, age 27, of Columbus, Ohio, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on July 26, 2018, law enforcement conducted surveillance in the vicinity of the Oliver Plaza Apartments, in Duquesne, PA, a known high drug trafficking area. Law enforcement previously received information that Evan Jones would be in the area to distribute heroin. Subsequently, law enforcement observed a blue Dodge Dakota with heavy front-end damage with an unsecured washing machine in the bed of the truck. The blue Dodge Dakota bore Ohio plates and was registered to Evan Jones. Law enforcement observed the blue Dodge Dakota pull behind the Oliver Plaza Apartment complex, an individual exit the vehicle, and then what appeared to be that individual working under the hood.
After leaving the apartment complex, law enforcement observed the driver of that blue Dodge Dakota commit at least two traffic violations. As a result, law enforcement initiated a traffic stop in the vicinity of Rankin, PA. The driver identified himself as Evan Jones. Thereafter, Jones gave officers consent to search his vehicle. The interior panels of the vehicle were loose. Inside of the loose dashboard panel, officers recovered a knotted sandwich bag containing 89.9 grams of heroin.
During his guilty plea, Jones admitted to knowingly and intentionally possessing the heroin with the intent to distribute to others.
Judge Ambrose scheduled sentencing for October 21, 2020 at 11 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of $2,000,000, 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 Brendan J. McKenna is prosecuting this case on behalf of the government.
The FBI Western Pennsylvania Opiate Task Force conducted the investigation that led to the prosecution of Evan Jones.
Monterey-Based Attorney Charged with Wire FraudRead the Press Release
SAN FRANCISCO – John Arthur Hudson, an attorney also known as Art Hudson and J.A. Hudson, was charged in a criminal complaint unsealed yesterday with wire fraud in connection with a scheme to fraudulently obtain loans involving a trust that he administered and the trust’s San Francisco property, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the complaint filed June 9, 2020, Hudson, 70, was an attorney based in Monterey County who was appointed to be trustee of a trust in 2011. The trust owned a commercial property on Fillmore Street in San Francisco and received rental income from its tenant, The Elite Cafe, a New Orleans-inspired restaurant.
As evidence of wire fraud, the complaint alleges that between April 2011 and June 2018, Hudson took out at least $680,000 in loans as trustee of the trust, pledging the property on Fillmore Street as security and falsely representing that the loan proceeds would be used to improve the property. Hudson instead personally profited from the loan proceeds and did not use any of the money to improve the property, as alleged in the complaint. For example, the complaint describes how loan proceeds were traced to Hudson’s unrelated legal settlement payments, personal mortgage and credit card payments, checks payable to Hudson, and other personal expenses.
The complaint alleges that Hudson obtained the loans without the authorization or knowledge of the trust’s beneficiaries, and without disclosing the loans to them, all while misrepresenting the trust’s finances. According to the complaint, when the trust sold the property in early 2019, more than $600,000 of the proceeds went to pay off the loans obtained by Hudson rather than the beneficiaries of the trust.
Hudson is charged with wire fraud, in violation of 18 U.S.C. § 1343. If convicted, Hudson faces a statutory maximum of 20 years in prison, three years of supervised release, and a $250,000 fine or twice the gross gain or gross loss. 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 charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Hudson made his initial appearance before U.S. Magistrate Judge Laurel Beeler yesterday, and he is currently released on a $500,000 bond. Hudson’s next court appearance is scheduled for June 22, 2020 before Judge Beeler for a bail review hearing.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The case is being investigated by the FBI.
Monmouth County Woman Admits Role in Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, woman today admitted her role in a scheme to defraud a financial institution of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.
Blanca A. Medina, 54, of Manalapan, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a one-count information charging her with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From 2015 to 2018, Medina conspired with others to fraudulently obtain mortgage loans from “Mortgage Lender A” in Monmouth County to finance the purchase of properties by unqualified buyers. Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.
Medina, a former loan officer for Mortgage Lender A, admitted to participating in a conspiracy in which she knowingly caused completed mortgage loan applications that contained multiple misrepresentations of material facts regarding the buyers’ assets and income to be submitted to Mortgage Lender A. A conspirator provided Medina with false and fraudulent documents for potential borrowers including false and fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on these lies, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses.
The conspiracy charge to which Medina pleaded guilty carries a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for Oct. 20, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark, and Special Agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing Finance Agency, Office of Inspector General.
Mission Man Sentenced for Abusive Sexual Contact and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Abusive Sexual Contact and Failure to Appear was sentenced on June 15, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Joseph Running, age 25, was sentenced to a total of 50 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Running was indicted by a federal grand jury on August 14, 2018. He pled guilty on March 24, 2020.
The conviction for Abusive Sexual Contact stemmed from an incident that occurred on September 10, 2017, in Parmelee, South Dakota. On that date, Running was consuming alcoholic beverages and socializing with a group of individuals that included the victim. The victim subsequently went to sleep on a bed. She awoke some time later to find Running was sexually assaulting her.
Following his Indictment, the Defendant was released on bond. He subsequently did not appear for the jury trial in his case and was charged with Failure to Appear.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the United States Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Running was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Abusive Sexual Contact was sentenced on June 15, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Larry Black Lance, III, age 28, was sentenced to 36 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Lance was indicted by a federal grand jury on November 13, 2019. He pled guilty on March 24, 2020.
The conviction stemmed from an incident that occurred on May 25, 2019, in the Soldier Creek Community near Rosebud, South Dakota. On that date, Black Lance was consuming alcoholic beverages and socializing with a group of individuals that included the victim. The victim subsequently went to sleep in a bedroom. She awoke some time later to find Black Lance was sexually assaulting her.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Black Lance was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
HUNTINGTON, W.Va. – A Mexican national who was in the United States illegally has pled guilty to possessing .40 caliber ammunition, according to United States Attorney Mike Stuart. Juan Martin Sotelo-Rodriguez, 26, pled guilty to unlawful possession of ammunition in federal court in Huntington.
“Entered our great nation illegally and violated federal firearm laws - both bad,” United States Attorney Mike Stuart said. “I enforce and will continue to vigorously enforce the nation’s immigration laws and federal gun laws. This is a matter of public safety and my team will do all it can to ensure the safety of our citizens.”
On October 25, 2019, Sotelo-Rodriguez was operating a car on Beechwood Drive in Huntington when he was stopped by a patrol officer with the Huntington Police Department. During the stop, Sotelo-Rodriguez was found to be intoxicated and was arrested for driving under the influence. Officers then located and seized multiple rounds of .40 caliber ammunition laying in the driver’s seat of the vehicle. Sotelo-Rodriguez admitted that he possessed the ammunition. Sotelo-Rodriguez also admitted that he was a citizen of Mexico and not a citizen or national of the United States, that he was illegally and unlawfully present in the United States, and therefore, was prohibited from possessing ammunition.
Sotelo-Rodriguez faces up to 10 years in prison when sentenced on September 21, 2020. Pursuant to his plea agreement, he also will be subject to removal proceedings.
The United States Immigration and Customs Enforcement (ICE) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
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Massachusetts Man Sentenced to 151 Months in Prison Following Conviction for Drug and Firearm OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on June 15, 2020, United States District Judge William K. Sessions III sentenced Rodolfo Davila to 151 months in prison following his guilty pleas to (1) conspiracy to distribute fentanyl and 100 grams or more of heroin, (2) maintaining a drug-involved premises, and (3) being a felon in possession of a firearm. Davila further admitted that his offense involved one kilogram of heroin, or approximately 40,000 individual dosages.
United States Attorney Christina Nolan thanked the Department of Homeland Security, Homeland Security Investigations (HSI) and the Vermont State Police Drug Task Force for their teamwork in achieving justice in this important drug case. She stated: “Windsor County has been ravaged by the drug trade for years, and its location off Interstate 91 and proximity to drug source cities in Massachusetts make it vulnerable. Federal, state, and local law enforcement will continue to devote investigative resources to areas in southern Vermont and across the state hardest hit by the drug crisis. We have said that those who deal deadly narcotics to Vermonters for large profit will find themselves facing serious sanction in the form of jail sentences and seizure of the assets and money they acquired on the backs of suffering addicted Vermonters. Mr. Davila, a serious recidivist offender who possessed guns, is now facing exactly that consequence.”
According to Court records, during 2017 and 2018 the United States Department of Homeland Security and the Vermont State Police Drug Task Force conducted 11 controlled purchases of heroin and fentanyl from Davila and co-conspirators David Cheney, Sean Palmer, Gary Desilets, and Davila’s sister, Elizabeth Gonzalez-Rivera. On June 6, 2017, Gonzalez-Rivera was found to be in possession of more than $38,000 when the Vermont State Police stopped a vehicle she was driving after it was observed leaving Davila’s residence.
On April 6, 2018, law enforcement arrested Davila and executed a federal search warrant at his residence located at 55 River Street in Windsor, Vermont. Pursuant to the search warrant, law enforcement seized more than 1,450 bags of heroin, over $84,000, and two handguns. Also located were two bank checks, payable to Davila, in the amounts of $9,900 and $9,100.
A subsequent financial investigation revealed that over the course of 30 days, Davila and Cheney converted $105,000 of United States currency to bank checks, along with $23,000 of money orders. These funds – all of which were determined to be the proceeds of Davila’s drug trafficking organization – were used to purchase the 55 River Street residence for more than $148,000. Less than a month later, over the course of a single week, Davila and Cheney converted additional United States currency to bank checks, which were then used to purchase a second residence, located at 41 Jarvis Street in Windsor, Vermont, for $34,000. Davila purchased business cards, lawn signs, and vehicle magnets for his purported business, “We Buy Houses & Turn Them Into Homes.”
Judge Sessions ordered the forfeiture of the residences located at 55 River Street and 41 Jarvis Street, as well as Davila’s drug proceeds. More than $124,000 of Davila’s drug proceeds were previously forfeited by HSI.
For his crimes, Davila was subject to a mandatory-minimum sentence of 60 months. The 151-month sentence imposed by Judge Sessions considered Davila’s significant criminal history, which included 35 prior criminal convictions, and a recent 4-5-year Massachusetts State Prison sentence for a firearm offense.
On February 4, 2020, David Cheney was sentenced to a 48-month term of imprisonment following his convictions for conspiracy to distribute fentanyl and heroin, and conspiracy to launder monetary instruments. Pursuant to a plea agreement, Cheney agreed to be deported to Canada. On March 9, 2020, Gary Desilets was sentenced to time served to be followed by 3 years of federal supervised release. Sean Palmer and Elizabeth Gonzalez-Rivera have each been convicted of conspiracy to distribute fentanyl and heroin, and await sentencing.
U.S. Attorney Nolan commended HSI and the Vermont State Police for their work on this investigation.
“We thank the U.S. Attorney for Vermont and the Vermont State Police for their solid teamwork in bringing Mr. Davila to justice in this case.” said Michael Shea, acting Special Agent in Charge, Homeland Security Investigations, Boston. “HSI remains committed to investigating and fighting those drug trafficking networks like the one that Davila ran that have played a major role in the deadly opioid epidemic that has destroyed so many lives and disrupted communities throughout Vermont and all of New England.”
The case was prosecuted by Assistant U.S. Attorney Nate Burris. Davila was represented by Attorney Devin McLaughlin of Langrock Sperry & Wool.
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
Madison Doctor Sentenced to Four Years in Federal Prison for Conspiracy to Commit Health Care Fraud in Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Dr. Shahjahan Sultan, M.D., 37 of Madison, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 3 years of supervised released, for conspiring 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 Defense Criminal Investigative Service’s (“DCIS”) Southeast Field Office. Sultan was also ordered to pay restitution in the amount of $4,102,634.65 to Express Scripts (TRICARE), $582,280.79 to CVS Caremark and $115,611.03 to Catamaran. The Court further imposed a money judgment of more than $2.3 million.
In 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. Health care benefit programs, including TRICARE, were billed for the compounded medications. Sultan employed others who identified individuals in places like Jones County, Mississippi, who had insurance that covered the expensive compounded medications. Sultan met with the insured individuals over telemedicine video-chat sessions. However, during such meetings, he did not perform thorough examinations of the individuals and did not determine the medical necessity of the compounded medications he prescribed. Sultan knew that some of the added ingredients in the compounded medication were not effective and were added solely to increase the reimbursement value. On occasion, Sultan called in compounded medications for individuals he had not previously examined.
From May 2014 through January 2015, Sultan and his co-conspirators prescribed millions of dollars of unnecessary compounded medications to patients. In total, the Court held Sultan responsible for causing over $8 million in intended loss to health care providers. Sultan pled guilty before Judge Starrett on November 21, 2019.
Thomas Edward Sturdavant, M.D., 56, of Kingsport, Tennessee, Freda Cal Covington, R.N., 54, of Hattiesburg, Mississippi, and Fallon Deneem Page, R.N., 36, of Soso, Mississippi were all indicted along with Dr. Sultan in June 2019. Dr. Sturdavant will be sentenced next Monday, June 22, 2020. Nurse Freda Cal Covington is set for sentencing on June 24, 2020, and Nurse Fallon Page will be sentenced 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.
Louisiana Man Sentenced to over 11 Years in Prison for Trafficking HeroinRead the Press Release
Gulfport, Miss – Peter Oliver Henry, 61, of Chalmette, Louisiana, was sentenced yesterday by U.S. District Judge Sul Ozerden to 135 months in prison, followed by five years of supervised release, for heroin trafficking, announced U. S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On June 4, 2019, Henry was arrested while delivering 4 ounces of heroin to an individual in Gulfport, Mississippi. Henry was indicted on June 25, 2019 and pled guilty before Judge Ozerden on December 13, 2019.
The Federal Bureau of Investigation and the FBI Safe Streets Task Force investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Lima man sentenced to nearly 42 years in prison for sex trafficking minor girlRead the Press Release
COLUMBUS, Ohio – A registered sex offender was sentenced today in U.S. District Court to 500 months in prison for crimes related to sex trafficking a 14-year-old girl.
Nicholas Salvadore Cochran, 28, of Lima, Ohio, pleaded guilty in January 2020 to one count of sex trafficking a minor, and one count of committing a sex offense against a minor as a registered as a sex offender.
As part of his sentence, Cochran will pay full restitution to the victim and others impacted by the crimes, remain under court supervision for the rest of his life, pay a fine determined by the court and pay special assessments of $10,200.
“While unthinkable to most of us, sex trafficking of children is real and organized,” said U.S. Attorney David M. DeVillers. “We must recognize the unthinkable and report suspicious activity for the sake of our most vulnerable. I would like to tell you that this is an isolated incident. It is not.”
Cochran was arrested on Aug. 9, 2019, as part of Operation Independence Day – a nationwide FBI-led operation to identify and arrest sex traffickers and recover child victims. He has been in custody since his arrest. A federal grand jury indicted him on Sept. 6, 2019.
According to court documents, police began searching for a 14-year-old girl reported missing from Celina, Ohio in July 2019. Family members believed her to be in the Dublin, Ohio area with a man named “Nick.” Local law enforcement and the FBI began investigating information known about her to help locate the missing girl. The investigation included examination of ads posted on websites used for advertising prostitution.
Investigation of the advertisements revealed that between July 9 and July 14, Cochran posted approximately 25 ads for the Lima-Findlay, Dayton and Columbus areas. He posted ads for sex with the child victim daily, and those ads contained nude photographs of the minor.
Allen County Sheriff’s deputies arrested Cochran on a traffic stop in Lima, Ohio on an outstanding failure to appear warrant and seized Cochran’s phone. The victim called her parents from a hotel in Lima and was recovered.
Cochran had been convicted of two counts of sexual battery and one count of attempted sexual battery in Henry County, Ohio in 2009.
“The selling of a human being for the purpose of sex is Stephen King-level evil,” Ohio Attorney General Dave Yost said. “I am proud of Jennifer Rausch and our federal and local partners for bringing this case to a just conclusion.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; Celina Police Chief Thomas Wale; Allen County Sheriff Matthew B. Treglia; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed by U.S. District Judge Michael H. Watson. Assistant U.S. Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, represented the United States in this case.
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Lima man charged with unlawful drug use in possession of a firearmRead the Press Release
Justin E. Herdman, U.S Attorney for the Northern District of Ohio, announced today that a federal grand jury in Cleveland, Ohio has returned a three-count indictment charging Trevor Leis, 27, of Elida, Ohio with two counts of being an unlawful drug user in possession of firearms and one count of making false statements in connection with the purchase of firearms. Leis was arrested this morning by the FBI without incident.
According to the indictment filed in this matter, from January 2018 to March 2020, Leis possessed multiple firearms and rifles while knowingly using [or a drug user of] illegal controlled substances. Additionally, in March 2018, Leis made false statements to a licensed firearms dealer in order to purchase two firearms illegally.
As a result of these offenses, Leis must forfeit to the United States all firearms and ammunition involved in these offenses, including, but not limited to, the following:
- Beretta, Model PX4 Storm Pistol, Caliber 9X19
- P. Beretta, Model AL391 Urika Shotgun, 20 Gauge
- Remington Arms Company, Model 1100 Shotgun, Caliber 20 Gauge
- Remington Arms Company, Model Remington 870 Wingmaster Shotgun, Caliber 20 Gauge
- Harrington & Richardson 1871 LLC (H&R), Model Pardner Shotgun, Caliber .410” Gauge
- Rifle, Izhmash (IMEZ), M1944, 7.62x54r
- FN America (FNH USA), model FN15 Rifle, Caliber Multi
- Colt, Defender model, .45 caliber pistol
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Tracey Ballard Tangeman.
Leader of $50 Million Health Care Fraud Conspiracy Targeting State Health Benefits Programs Pleads GuiltyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted leading a conspiracy that defrauded New Jersey health benefits programs and other insurers out of more than $50 million, U.S. Attorney Craig Carpenito announced.
William Hickman, 44, of Northfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to commit money laundering.
“Properly prescribed medicines can be a vital part of a patient’s treatment, but they can also be costly,” U.S. Attorney Carpenito said. “This defendant orchestrated an elaborate scheme to submit prescriptions for unnecessary compounded medications on behalf of patients who had never seen a doctor. He did so to steal millions of dollars from medical health benefits systems that were intended to help employees get the treatments they needed and deserved.”
“This defendant made millions of dollars by enlisting patients and exploiting their medical insurance plans at the expense of New Jersey taxpayers,” Acting FBI Special Agent in Charge Douglas Korneski, Newark Division, said. “The FBI is committed to bringing to justice any profiteer who pursues fraud as an occupation with public monies as their paycheck.”
Hickman was charged in March 2019 along with Brian Pugh, Thomas Schallus, John Sher, Thomas Sher, and Christopher Broccoli. Charges remain pending against those defendants, and their trial is scheduled to commence on Sept. 21, 2020.
“When you visit a doctor, you expect him or her to evaluate your symptoms and prescribe medication to best treat your condition,” Michael Montanez, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “Mr. Hickman, who is a salesman not a doctor, recruited patients to have prescriptions filled, not to better the health of the patients, but rather to financially line his own pockets.”
According to documents filed in this case and statements made in court:
William Hickman was a sales representative for a pharmaceutical company. He created a side business called Boardwalk Medical LLC in his wife’s name to sell medical products for other companies, an activity that was prohibited by his employer.
As part of his side business, Hickman started persuading patients to receive compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Hickman learned that certain insurance plans administered by an entity referred to in the indictment as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations. He also learned that many New Jersey state and local government and education employees, including teachers, firefighters, police officers, and state troopers, had this insurance coverage. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Hickman marketed compounded medications for several pharmacies, including the Louisiana pharmacy identified in the indictment as “Compounding Pharmacy.” His initial work for Compounding Pharmacy was through an intermediary who paid Hickman a commission if patients he found received compounded medications covered by insurance.
In early 2015, however, Hickman struck his own deal to be a master distributor for Compounding Pharmacy. Under his deal, Compounding Pharmacy agreed to pay Boardwalk Medical 40 percent or more of the insurance payments received for prescriptions obtained by Hickman and the recruiters working for him. Hickman then created a network of conspirators to work under him to find patients, including Michael Sher and Matthew Tedesco (both of whom have pleaded guilty to conspiracy to commit health care fraud) and Pugh. The conspirators working for Hickman found additional patient recruiters and brought them into the conspiracy: Pugh recruited Schallus, Tedesco recruited Broccoli, and Michael Sher recruited John Sher and Thomas Sher. Hickman agreed to pay the conspirators working under him a percentage of the insurance reimbursement that he received from Compounding Pharmacy, and they paid recruiters working under them.
Hickman told his recruiters to find New Jersey public employees and other people with insurance coverage administered by Pharmacy Benefits Administrator. He gave them blank Compounding Pharmacy prescription forms and told them which medicines had the highest insurance reimbursement and to check off 12 months of refills.
Hickman also told his recruiters that he had a doctor who would sign prescriptions without seeing the patients. Dr. John Gaffney, who has pled guilty to conspiracy to commit health care fraud, signed numerous prescriptions at Hickman’s request without seeing the patients or determining that they had a medical necessity for the specially compounded medications.
Based on the instructions he gave them, Hickman’s conspirators recruited New Jersey public employees and others to fraudulently obtain compounded medications from Compounding Pharmacy that the patients did not need, often without a doctor seeing the patients or determining that the medications were medically necessary. Hickman and the conspirators working for him paid individuals for receiving Compounding Pharmacy prescription medications. If the patients did not see their own doctor, recruiters would give Hickman prescriptions that were completed except for the doctor’s signature, and Hickman would have Dr. Gaffney sign the prescription. The completed prescriptions were faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
Compounding Pharmacy paid Boardwalk Medical for each Hickman prescription filled and paid by Pharmacy Benefits Administrator. Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications, and Compounding Pharmacy paid William Hickman over $26 million for prescriptions obtained by Hickman and his conspirators. Hickman paid a portion of that amount to his recruiters, and they paid the recruiters under them. Hickman admitted paying Pugh approximately $435,000 in criminal proceeds over five months. Those payments provided the basis for the money laundering conspiracy charge to which Hickman pleaded guilty.
The health care fraud and wire fraud conspiracy count to which William Hickman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the transaction.
In his plea agreement, William Hickman agreed to pay restitution of $53,037,639 and to the entry of a forfeiture money judgment for $26,241,327. Hickman also agreed to forfeit specific property obtained with criminal proceeds, including five investment accounts and four real estate parcels.
Sentencing for William Hickman is scheduled for Nov. 6, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the New Jersey State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit.
The charges and allegations contained in the indictment against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Latin Dragon Nation Member Pleads Guilty to Racketeering Conspiracy Including Two HomicidesRead the Press Release
HAMMOND- Ralph Mendez, Jr., 24, of Chicago, Illinois, pled guilty to conspiracy to participate in racketeering activity as a member of the Latin Dragons Nation street gang, including admitting responsibility for two homicides, announced U.S. Attorney Kirsch.
In the plea agreement, the parties agree that Mendez, Jr., should serve a sentence of 42.5 years imprisonment.
“Mendez, Jr.’s guilty plea is a successful resolution to this case,” said U.S. Attorney Kirsch. “Many people were victimized and some died as a result of Mr. Mendez, Jr’s actions. He will face the consequences of his actions. I am pleased with our law enforcement team’s work on this case.”
In the plea agreement, Mendez, Jr., admitted to being a member of the Latin Dragon Nation street gang since approximately 2014. As a member of the gang, Mendez, Jr., participated in shootings of suspected gang members and associates, in addition to drug and firearms trafficking. On May 23, 2017, while accompanied by others, Mendez, Jr., left Hammond, Indiana, in a stolen vehicle to go to a rival gang neighborhood in Chicago. Upon arriving, he shot Jose Gomez, a suspected rival gang member, resulting in his death. On July 14, 2017, in Chicago, Illinois, Mendez, Jr., was accompanied by others when he fired in excess of 15 shots at four people whom he suspected were rival gang members or associates, resulting in the death of Mike Whitford and resulting in another victim being shot in the neck. From 2014 through 2017, Mendez, Jr., also accompanied others on shootings and himself shot four additional victims, including shooting one victim in the back as he attempted to flee.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Joseph A. Cooley and Kevin F. Wolff and Special Assistant U.S. Attorney Michael J. Toth, with prior assistance from the Criminal Division’s Organized Crime and Gang Section Trial Attorneys Robert Tully, Andrew Creighton, and Hans Miller.
Last of six sentenced in scheme to defraud Medicaid of millionsRead the Press Release
Youngstown, Ohio – Justin E. Herdman, United States Attorney for the Northern District of Ohio, announced today that Jennifer Sheridan, age 42, of Austintown, Ohio, was sentenced to 27 months imprisonment, and ordered to pay $15,957,148 in restitution after pleading guilty to one count of health care fraud conspiracy.
Jennifer Sheridan is the last of six defendants to be sentenced for crimes related to a health care fraud conspiracy in which Medicaid was billed $48 million for drug and alcohol recovery services, many of which were not provided, not medically necessary, lacked proper documentation, or had other issues that made them ineligible for reimbursement.
“Today’s sentencing marks the conclusion of a case in which the defendants conspired together to use the drug epidemic as a way to steal tens of millions of dollars from taxpayers through fraudulent billing practices and other crimes,” said U.S. Attorney Justin Herdman. “The defendants’ actions have earned them jail time and over $24 million in restitution. We will continue to hold anyone accountable who tries to take advantage of the drug epidemic and Ohio taxpayers.”
"This is the last defendant to receive their deserved sentence for fraudulent and deceptive criminal behavior,” stated FBI Special Agent in Charge Eric Smith. “These individuals preyed on a healthcare system that is in place to help those in need and not to be used as an ATM to cipher millions of dollars from the taxpayers for their own pleasures.”
“Today’s sentencing should serve as a message to all healthcare professionals who choose to fraud the government and contribute to the misuse of prescription drugs,” said DEA Special Agent in Charge Keith Martin.
“This sentence is the final chapter of a heartless plot to exploit recovering addicts for personal gain,” Ohio Attorney General Dave Yost said. “I’m proud to work alongside our federal partners to hold these wrongdoers accountable.”
On January 22, 2020, Ryan P. Sheridan, 39, of Leetonia was sentenced to 7 ½ years imprisonment and ordered to pay $24,479,939 in restitution after pleading guilty to various health care fraud conspiracy crimes. Ryan Sherdian was the owner and operator of Braking Point Recovery Center, which operated in the Youngstown and Columbus areas.
On March 12, 2020, co-defendant Kortney L. Gherardi was sentenced to 18 months imprisonment and ordered to pay $2,413,838.42 in restitution after pleading guilty to conspiracy to commit health care fraud.
On January 21, 2020, co-defendants Dr. Thomas Bailey and Dr. Arthur Smith were sentenced to 2 years of probation with 6 months of community service and a $5,000 fine. Co-defendant Lisa Pertee was sentenced to 1 year of probation with 60 days of community service, and order to pay $2,200 in special assessments.
According to court documents:
Ryan Sheridan was the sole owner of Braking Point Recovery Center, which operated drug and alcohol rehabilitation centers in Austintown and Whitehall, Ohio, that provided detox, intensive outpatient treatment, day treatment and residential living rehabilitation.
Between January 2015 and October 18, 2017, Sheridan and various other defendants submitted or caused to be submitted billings to Medicaid for drug and alcohol services that were: coded to reflect a service more costly than was actually provided; without proper documentation; without proper assessment documents containing valid diagnosis; billings for patients whose records did not contain diagnosis by a physician; related to treatment at unlicensed inpatient beds; billings related to dispensing of Suboxone, even though the treating physician did not have the authority to do so; for case management services when, in fact, the clients were working out at Sheridan’s gym; billings based on quotas provided to the nurses by the defendants to bill four to five hours of treatment daily, even if the services were not medically necessary; billing for in-patient detox and drug treatment services that were, in fact, provided in an out-patient setting, among other violations.
Braking Point submitted approximately 134,744 claims to Medicaid for more than $48.5 million in services it claimed to provide between May 2015 and October 2017. The claims caused Medicaid to pay Braking Point more than $31 million. Medicaid suspended payments to Braking Point on October 18, 2017.
Sheridan and other defendants developed a standard protocol of distributing the same amount of Suboxone to every patient seeking drug treatment immediately upon entering Braking Point’s detox program without being evaluated by a properly licensed physician to determine the medical necessity for the use of Suboxone. Sheridan had the treating physician use another physician’s DEA data waiver license to dispense more than 3,000 doses of Suboxone in 2017 alone without the data waiver physician having seen the patients.
Sheridan also made numerous financial transactions in excess of $6 million, involving money derived from these unlawful activities, including health care fraud and conspiracy to commit health care fraud. As such, Sheridan was ordered to forfeit property and proceeds obtained as a result of these crimes, including nearly $3 million, property in Columbiana, Mahoning and Trumbull counties, and eight automobiles, including replicas of vehicles used in the movies “Back to the Future,” “Ghostbusters,” and “Batman.”
This case was prosecuted by Assistant United States Attorneys Mark S. Bennett and Jason M. Katz, and Special Assistant United States Attorney Jonathan Metzler following an investigation by the Department of Health and Human Services -- Office of the Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service, and the Ohio Attorney General’s Medicaid Fraud and Control Unit.
KC Man Sentenced for $900,000 Romance FraudRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for his role in a romance fraud scheme that bilked victims across the United States and overseas of nearly $900,000.
Ronayerin K. Ogolor, 51, a naturalized U.S. citizen from Nigeria, was sentenced by U.S. Chief District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Ogolor to pay $871,739 in restitution to his victims.
On Oct. 23, 2019, Ogolor pleaded guilty to one count of conspiracy to commit wire fraud. Ogolor admitted that he participated in a conspiracy since 2013 that targeted people, some of them elderly, in search of companionship or romance through online websites such as Facebook, ChristianMingle.com, or Hangout.com.
The perpetrators of the romance scams created several profiles on online dating sites. Conspirators then contacted men and women throughout the United States, Canada, and Europe, with whom they cultivated a sense of affection and often romance. Having established relationships with the victims, the perpetrators of the romance scams ultimately requested money for hospital fees, travel fees, “customs expenses,” “gold import taxes,” or investment opportunities. Conspirators directed the victims to wire transfer or deposit money into various bank accounts, including accounts established and maintained by Ogolor. Often after the victims transferred money into the specified accounts, conspirators claimed more money was needed, “to release the package” or “to pay customs expenses” on money or gold.
On other occasions, conspirators fraudulently obtained checks through business email compromise, and had the victims deposit the checks into their accounts and wire and deposit money into various accounts, including accounts established and maintained by Ogolor. In a business email compromise, the conspirators hack into a business email account, and then send an email from what appears to be an employee with authority to approve payments, instructing that a check be disbursed in the victim’s name and sent to the victim. By using victims to deposit the checks and distribute the money, the conspirators distanced themselves from the business email hacking and fraud.
In furtherance of the scheme, Ogolor opened several bank accounts in his name and in the names of sham businesses. The romance fraud victims wired and deposited their money and money from counterfeit or fraudulently obtained checks into Ogolor’s accounts. Soon after receiving the fraudulently obtained wires or deposits, Ogolor wired money to co-conspirators and/or withdrew the money in cash.
Court documents refer to 13 victims (in Alabama, Ohio, Washington, Arizona, Florida, Illinois, California, and Italy) who each sent tens of thousands of dollars to Ogolor. One victim (a widow in Indiana who received a friend request on Facebook) believed a co-conspirator was a widower working on an oil rig off the coast of Louisiana; she lost a total of $450,000 to Ogolor and others. Another victim in Texas, who believed a co-conspirator was a widower and U.S. Army general deployed in Afghanistan, lost at least $300,000.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Inmate and Corrections Officer Sentenced in Federal Court on Drug Conspiracy ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Wiggins Washington, 52, of Bay Minette, Alabama, and Michael Rashard Dread, 34, of Foley, Alabama, were sentenced on June 2, 2020, in federal court for their involvement in a scheme to smuggle two ounces of methamphetamine ice into Fountain Correctional Facility in Atmore. Washington, a corrections officer employed at the facility, was arrested after meeting a person he believed to be the supplier of the drugs in Bay Minette. A confidential informant had provided information to the Department of Homeland Security Investigation about the scheme, and law enforcement intervened to arrange a controlled delivery so that Washington could be arrested prior to his delivering the drugs to the inmates who planned the drug deal from the prison. Dread was an inmate in the prison serving time on a prior state drug charge. Washington pled guilty to conspiracy to possess with intent to distribute methamphetamine and carrying a firearm in relation to a drug trafficking charge in September of 2019. Dread pled guilty to the conspiracy charge in October of 2019.
United States District Court Judge Terry F. Moorer imposed a sentence of 84 months in Washington’s case, consisting of the statutory minimum mandatory consecutive penalty of five years on the gun charge, with a consecutive sentence of 24 months on the drug charge. The judge ordered that Washington will serve a five year term of supervised release when he completes his custody sentence. No fine was imposed, but the judge ordered that Washington pay $200 in special mandatory assessments and forfeit the firearm used in the offense.
Dread was sentenced to a term of 120 months imprisonment, to be followed a five year term of supervised release. As conditions of his supervised release term, the judge ordered that Dread undergo testing and treatment for drug abuse and mental health treatment, if recommended by the probation office. No fine was imposed, but the judge ordered that Dread pay $100 in special mandatory assessments.
A third participant in the scheme, inmate Kevin Depaul Davidson, 46, was previously sentenced by Judge Moorer in February of 2020 to a term of 262 months imprisonment. Davidson was serving a life sentence on state charges at the time of his participation in the scheme.
The investigation was conducted by the Alabama Law Enforcement Agency, and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.Indictment: Topeka Man Robbed Three StoresRead the Press Release
WICHITA, KAN. – A Topeka man was indicted today in federal court in Wichita on charges of committing robberies at three stores in Topeka, U.S. Attorney Stephen McAllister said.
Deshawn Lorenzo Pittman, 24, Topeka, Kan., is charged with three counts of commercial robbery. The indictment alleges Pittman committed the following robberies:
- Sept. 8, 2019, Dollar General, 4500 Southeast California Ave. Topeka, Kan.
- Nov. 15, 2019, Family Dollar, 501 Southeast 21st Street, Topeka, Kan.
- Dec. 23, 2019, Loan Max Title Loans, 3601 Southwest Topeka Boulevard, Topeka, Kan.
If convicted, he could face up to 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Jarred Maag is prosecuting.
OTHER INDICTMENTS
Two defendants from California were indicted today on charges of smuggling more than two pounds of fentanyl to Kansas.
Jorge Eduardo Guerrero-Bustamante, 26, San Jose, Calif., and Ruby Quiroz, 25, Santa Ana, Calif., are charged with one count of possession with intent to distribute fentanyl. They were arrested Jan. 2 during a car stop in Meade County, Kan.
If convicted, they could face a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
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Gleneice Lashawn Phillips, 24, Dayton, Ohio, and Kamryne J. Wright, 19, Dayton, Ohio, are charged with one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl and one count of traveling across state lines in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 19, 2020, in Trego County, Kan.
The defendants initially were charged by criminal complaint March 10, 2020. The complaint alleged they were stopped with more than 35 pounds of methamphetamine and approximately 22 pounds of fentanyl.
If convicted, they could face not less than 10 years in federal prison and a fine up to $10 million on each of the possession charges and up to five years and a fine up to $250,000 on the other count. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
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Coty C. Mewes, 32, is charged with one count of escaping from custody at the Grossman Residential Reentry Center in Leavenworth, Kan. The crime is alleged to have occurred March 19, 2020.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
Jamison Michael Stiles, 47, is charged with one count of escaping from custody at the Grossman Residential Reentry Center in Leavenworth, Kan. The crime is alleged to have occurred Jan. 26, 2020.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
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Ronnie Lee Martin, 24, is charged with one count of escaping from custody. The crime is alleged to have occurred May 4, 2020, in Leavenworth, Kan.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
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Dontreal D. Banks, 33, Wichita, Kan., is charged with one count of unlawful possession of a firearm by a felon, one count of possession with intent to distribute heroin and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred April 23, 2020, in Wichita, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000 on the felon in possession charge, up to 20 years and a fine up to $1 million on the heroin charge and not less than five years and a fine up to $250,000 on the other count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
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Andre J. Wallace, 44, who is in federal custody, is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred July 18, 2019, in Topeka, Kan.
If convicted, he could face a penalty of not less than five years and not more than 40 years on the methamphetamine charge, not less than five years and a fine up to $250,000 on the unlawful possession of a firearm in furtherance of drug trafficking count and up to 10 years and a fine up to $250,000 on the other count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
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David W. Kellner, 31, who is in federal custody, is charged with one count of unlawful possession of a firearm by a felon. The crime is alleged to have occurred May 1, 2020, in Miami and Linn counties.
Kellner initially was charged by criminal complaint May 2. The complaint alleged Kellner led law enforcement on a chase at speeds up to 110 mph.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Miami County Sheriff’s Department, the Linn County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Terra Morehead is prosecuting.
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Brandon Eugene Derr, 35, Topeka, Kan., is charged with one count of unlawful possession of a firearm by a felon. The crime is alleged to have occurred Sept. 4, 2013, in Topeka, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
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Lamarques A. Channel, 36, is charged with one count of unlawful possession of a firearm by a felon. The crime is alleged to have occurred April 3, 2020, in Manhattan, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indiana Man Who Trekked on Foot to Meet Wisconsin Minor Sentenced to Ten Years in Federal PrisonRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on June 15, 2020, Tommy Lee Jenkins (age: 33) of Whitestown, Indiana, was sentenced to ten years in federal prison by Senior District Judge William C. Griesbach.
Starting on October 1, 2019, Jenkins, who had recently moved from Oshkosh, Wisconsin to Whitestown, Indiana, began exchanging instant messages with “Kylee” whom he believed to be a 14 year-old girl living in Neenah, Wisconsin with her mother. Jenkins began demanding sexually explicit photographs from “Kylee” and making plans to engage in sexual activity with the minor. When his numerous requests for “Kylee” to join him in Indiana were rebuffed, Jenkins began walking the 351-mile trek from Whitestown, Indiana to Neenah, Wisconsin. Along the way, Jenkins continued to engage “Kylee” in sexually explicit conversations and updated her as to his current location.
“Kylee” was, in fact, a Winnebago County Sheriff’s Deputy assigned to the Internet Crimes Against Children (“ICAC”) Task Force. Upon his arrival in Winnebago County, sheriff’s deputies and a Special Agent with the Federal Bureau of Investigation placed Jenkins under arrest.
Jenkins was convicted of state charges of child abuse in 2011. At the sentencing hearing, the government detailed for the court numerous incidents in the eight years following that conviction wherein Jenkins was alleged to have sexually abused minors and others.
In handing down the sentence, Judge Griesbach noted the serious nature of the charge and a strong need to protect the public and deter Jenkins from abusing children in the future. Following his release from prison, Jenkins will spend the remainder of his life on supervised release. He will also have to register as a sexual offender.
“Because of the Winnebago County Sheriff’s Office’s and the FBI’s excellent work, Tommy Lee Jenkins will not be able to prey on any more children,” said United States Attorney Krueger.
This case was investigated by the Winnebago County Sheriff’s Office with the assistance of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble and Julie F. Stewart.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Indian Man Arrested After Attempting to Smuggle More Than 3000 Pounds of Marijuana into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney James P. Kennedy Jr. announced today that Gurpreet Singh, 30, a citizen of India, was arrested and charged with unlawfully importing and possessing with intent to distribute 1000 kilograms or more of marijuana. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in the early morning hours of June 13, 2020, a commercial truck carrying 22 skids of peat moss and bearing Ontario, Canada license plates attempted to enter the United States at the Peace Bridge Port of Entry. During primary inspection, Singh told a CBP Officer that he was transporting the peat moss to Orange, VA. During the secondary exam, officers observed five pallets of peat moss packaged in large white plastic positioned at the rear of the trailer. Behind the pallets were 58 large cardboard boxes in the middle of the trailer. Behind the boxes were 14 additional pallets of peat moss. Inspection of the cardboard boxes revealed thousands of vacuum sealed bags containing suspected marijuana. The total weight of the suspected marijuana was approximately 3,346.35 pounds, with an approximate value of $5,000,000.
“For the second time in as many weeks, Customs and Border Protection Officers successfully interdicted a multi-million dollar load of marijuana being imported from Canada into our District,” stated U.S Attorney Kennedy. “Despite the current travel restrictions at our international crossings, the criminal element has not curtailed their efforts to profit from illicit drug trafficking. Fortunately, our tremendous partners in law enforcement have remained vigilant in their efforts to ensure the integrity of our border and, in so doing, to keep our citizens safer and healthier.”
“As criminals are determined to exploit our vulnerabilities during this unprecedented time in our country’s history, CBP remains steadfast in our commitment to protect our Nation,” said Buffalo Field Office Director Rose Brophy. “Our CBP officers have remained vigilant and focused, and their efforts have resulted in over 8,700 pounds of narcotics seized since March 21.”
“Large-scale marijuana trafficking is not an isolated crime,” said Kevin Kelly, HSI Buffalo Special Agent-in-Charge. “Smugglers are often connected to larger criminal syndicates who profit from a wide variety of crimes, and we must continue to dismantle all forms of their illicit activity.”
Singh made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained pending a detention hearing on June 17, 2020.
The complaint is the result of an investigation by Customs and Border Protection, under the direction Rose Brophy, Director of Field Operations, and Homeland Security Investigations - Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Illinois Man Sentenced for Bringing Cocaine to Wisconsin to Sell ItRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Enricki Gomez, 30, Rockford, Illinois, was sentenced today by U.S. District Judge William M. Conley to 21 months in federal prison for possessing 500 grams or more of cocaine with intent to distribute. Gomez pleaded guilty to this charge on March 10, 2020.
On October 7, 2019, a confidential informant working with law enforcement officers called Gomez to buy cocaine. During the phone call, Gomez agreed to drive a half kilogram of cocaine from Rockford to the informant in Madison, Wisconsin. When Gomez arrived at the meeting location in Madison, he was arrested after a search of his car revealed 510 grams of cocaine. Only two days prior to his arrest, Gomez had supplied the informant and another individual with one kilogram of cocaine.
In imposing the sentence, Judge Conley stated that a 21-month sentence was necessary because Gomez was involved in selling a significant amount of cocaine. While noting that Gomez had a limited criminal history, Judge Conley expressed his displeasure that Gomez jumped into major drug dealing with “both feet.”
The charge against Gomez is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, and Wisconsin Department of Justice Division of Criminal Investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Illinois Business Owner Charged with COVID-Relief FraudRead the Press Release
The owner and operator of several information technology companies based in the Chicago area has been charged in a complaint with allegedly filing a bank loan application fraudulently seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loan 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 John R. Lausch Jr. for the Northern District of Illinois, Inspector General J. Russell George of the Treasury Department Inspector General for Tax Administration (TIGTA), Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA OIG), and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.
Rahul Shah, 51, of Evanston, Illinois, was charged in a federal criminal complaint filed in the Northern District of Illinois with bank fraud and making false statements to a financial institution.
Shah allegedly caused to be submitted to a federally-insured bank an application for a $441,138 loan that was guaranteed by the SBA which significantly overstated the payroll expenses of a company that he controlled. In support of the loan application, Shah allegedly caused to be submitted to the lender several different false and fraudulent IRS documents. The complaint alleges that Shah caused to be submitted to the lender false IRS Forms 1099-MISC representing that the company made payments to several individuals who confirmed to investigators that they had not received the payments. In addition, Shah signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019. However, a comparison between the documents submitted to the lender and the company’s IRS filings revealed that Shah’s company reported significantly lower payroll expenses to the IRS.
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 1 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 entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tyler C. Murray for the Northern District of Illinois are prosecuting the case. The Justice Department acknowledges and thanks the TIGTA, the SBA OIG, and the FBI for their efforts investigating this matter.
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.
Illegal Alien Sentenced to 57 Months in Prison for Unlawful Reentry into United StatesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced today that United States District Judge Terry F. Moorer sentenced defendant Valeriano Cuevas-Mendoza, 35, an illegal alien from Mexico, to imprisonment for 57 months for unlawful entry into the United States by a deported alien. Cuevas-Mendoza faced up to 20 years imprisonment due to a prior conviction for an aggravated felony offense. As part of the sentence, the judge ordered that Cuevas-Mendoza undergo three years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, and receive deportation consideration.
On November 26, 2019, a federal grand jury for the Southern District of Alabama charged Cuevas-Mendoza with one count of reentry of removed aliens in violation of 8 U.S.C. § 1326(a). On January 24, 2020, Cuevas-Mendoza pleaded guilty to the charge before the Court.
Cuevas-Mendoza admitted to the following facts as part of his guilty plea. On October 4, 2019, a Thomasville Police Department officer lawfully arrested Cuevas-Mendoza for burglary in the third degree in Clarke County, Alabama. (On December 5, 2019, the defendant pleaded guilty to the burglary offense in Clarke County Circuit Court in Grove Hill, Alabama.) On October 8, 2019, Cuevas-Mendoza’s fingerprints were enrolled into immigration and criminal biometric databases. The databases verified that Cuevas-Mendoza was a citizen and national of the Republic of Mexico and had an alien registration number. An immigration records search revealed that on May 17, 2011, an immigration judge in Atlanta, Georgia ordered Cuevas-Mendoza removed to Mexico. On June 21, 2011, Cuevas-Mendoza was physically removed from the United States and returned to Mexico. On October 31, 2011, Cuevas-Mendoza was apprehended by United States Border Patrol agents near Hebbronville, Texas, and he was subsequently charged with illegal reentry after deportation. On May 3, 2012, Cuevas-Mendoza was sentenced to 38 months imprisonment in United States District Court in Laredo, Texas for violating 8 U.S.C. § 1326 (reentry by a deported alien) in the Southern District of Texas. On October 9, 2014, Cuevas-Mendoza was physically removed from the United States and returned to Mexico. At the time of his arrest on October 4, 2019 in the Southern District of Alabama, Cuevas-Mendoza was an illegal alien who was unlawfully present in the United States, and he had not obtained permission of the Attorney General of the United States or the United States Secretary of the Department of Homeland Security to reapply for admission into the United States.
The United States Customs and Border Protection investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Husband, Wife Plead Guilty in $15 Million Embezzlement SchemeRead the Press Release
A Red Oak, Texas couple pleaded guilty today to their roles in a $15 million retirement plan embezzlement scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Vantage Benefits Administrators co-owner Wendy Richie, 59, pleaded guilty Tuesday to two counts of theft from an employee benefit plan and one count of aggravated identity theft. Her husband, Vantage co-owner Jeffrey Richie, 55, pleaded guilty to two counts of aiding and abetting theft from an employee benefit plan. Their company served as third party administrator for dozens of pension and retirement funds.
According to plea papers, Ms. Richie admitted to using fund beneficiaries’ personal information to submit $15.2 million in fraudulent distribution requests to Matrix Trust, the funds’ custodian. Instead of depositing the money into beneficiaries’ accounts, however, she transferred it into Vantage’s operating account, then into personal bank accounts.
Even after a Vantage employee confronted Mr. Richie about Ms. Richie’s conduct, Ms. Richie continued to embezzle money from the funds. At least $6.2 million of the $15.2 million Ms. Richie embezzled was taken with Mr. Richie’s knowledge, he admitted.
In total, the pair admitted to submitting more than 90 unauthorized distribution requests from 13 pension plans and 7 retirement plans from 2014 and 2017.
“This couple took advantage of innocent people who were working hard and saving for their future,” U.S. Attorney Nealy Cox said in October 2018 when the couple was charged. “We cannot permit such brazen financial misconduct to go unchecked.”
Ms. Richie now faces up to 12 years in federal prison, while Mr. Richie faces up to 10 years. They may be required to pay restitution as well as a $500,000 fine.
The Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Department of Labor’s Employee Benefits Security Administration, and the Texas State Auditor’s Office conducted the investigation. Assistant U.S. Attorney Christopher Stokes is prosecuting the case.
Huntington Man Sentenced for Federal Meth ConvictionRead the Press Release
HUNTINGTON W.Va. – A Huntington man has been sentenced to 87 months in federal prison on a drug charge, announced United States Attorney Mike Stuart. Stewart Longworth Jordan, III, 27, previously pled guilty to attempted possession with intent to distribute 50 grams or more of methamphetamine after postal inspectors seized a large quantity of methamphetamine in the mail in 2018.
“Mr. Jordon was peddling in the very poisons that have deeply harmed our communities and our families,” said United States Attorney Mike Stuart. “We stopped him before he was able to distribute that poison in Huntington and beyond. Law enforcement okayed a critical role in protecting our community and families from more damage.”
On November 9, 2018, an inspector with the United States Postal Inspection Service located a package in the Huntington Post Office which had been mailed from Nevada and which was found to contain over two pounds of methamphetamine. Inspectors subsequently delivered the package to a residence in Huntington and Jordan arrived at the residence to collect the package. Jordan was arrested and admitted in court that he intended to sell the methamphetamine.
The United States Postal Inspection Service, the West Virginia State Police and Violent Crime and Drug Task Force West conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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High-Ranking Member of Sinaloa Drug Cartel Arraigned After Extradition from MexicoRead the Press Release
CHICAGO — A former high-ranking member of the Sinaloa drug cartel in Mexico was arraigned today on federal drug charges following his extradition from Mexico. The defendant, FELIPE CABRERA SARABIA, was charged with one count of conspiracy to possess with the intent to distribute cocaine and heroin, one count of conspiracy to import into the United States cocaine and heroin, and distribution of heroin, in an indictment that was returned by a federal grand jury in January 2012.
Cabrera Sarabia, 50, was brought to the United States on June 12, 2020, after Mexican courts ordered him extradited on the three counts of the Indictment. He remains in federal custody after pleading not guilty this afternoon before U.S. Magistrate Judge Maria Valdez in Federal Court in Chicago.
According to the Indictment, from at least May 2005 until December 2008, Cabrera Sarabia conspired with other Sinaloa Cartel members to transport multi-ton quantities of illegal drugs into the United States. Cabrera Sarabia is one of more than 20 members of the Sinaloa or Beltran-Leyva drug cartels to be charged in federal court in Chicago. The investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamines, and 78 kilograms of heroin.
The developments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Erika L. Csicsila and Andrew C. Erskine.
The conspiracy to possess with the intent to distribute cocaine and heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison. The conspiracy to import cocaine and heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison, and the distribution of heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Guatemalan Women Sentenced for Using Social Security Number of Deceased Person to Cicumvent the E-Verify SystemRead the Press Release
MOBILE, AL — Richard W. Moore, United States Attorney for the Southern District of Alabama, announces that Magdalena Vasquez Garcia (age 44, of Guatemala) has been sentenced to time served and one year of supervised release after pleading guilty to using a Social Security number issued to another individual for purposes of circumventing the E-Verify System. E-Verify is a system that allows employers to confirm the eligibility of their employees to work in the United States. Garcia also faces potential immigration consequences following her sentencing.
During the course of an investigation into another matter, special agents with the Department of Homeland Security and the Department of Labor determined that certain individuals working at a nursery in Mobile County were circumventing the E-Verify System by using Social Security numbers that had been issued to other individuals. One of the individuals doing so was Magdalena Vasquez Garcia, a Guatemalan national illegally present in the United States. Specifically, Garcia was using a Social Security number assigned to a now-deceased woman who had lived in Texas. During the course of this investigation, it was determined that this same Social Security number was being used by other individuals illegally working in Alabama, Mississippi, Arkansas, and Tennessee.
This case was investigated by the Department of Homeland Security and the Department of Labor, and prosecuted by Assistant U.S. Attorney Christopher J. Bodnar.
Guatemalan National Sentenced to 57 Months’ Imprisonment for Transporting HeroinRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar Moscoso-Sagastume, age 39, of Esquipulas, Guatemala, was sentenced on June 11, 2020 to serve 57 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for his role in a conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Moscoso-Sagastume previously pleaded guilty to participating in the conspiracy during February 2018. Moscoso-Sagastume admitted that he agreed to transport approximately five kilograms of heroin (which is equivalent to approximately 200,000 individual retail baggies) from Chicago to New York City. The heroin was transported from Mexico to Chicago where it was placed in the his vehicle. Moscoso-Sagastume was stopped by Pennsylvania State Troopers on Interstate 80 while traveling to New York City.
Moscoso-Sagastume will likely face deportation after serving his prison sentence.
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordin effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Greenbrier County Woman Pleads Guilty to Wire FraudRead the Press Release
BECKLEY, W.Va. – A Greenbrier County woman pled guilty to a wire fraud charge today, according to United States Attorney Mike Stuart. Cathy Byers, 44, of Renick, pled guilty to one count of wire fraud. Byers faces up to 20 years in prison when sentenced on October 2, 2020.
“Ms. Byers betrayed the trust given to her by using the union’s bank account as her own to pay personal expenses. The union members’ hard earned money was her personal piggy bank,” said United States Attorney Mike Stuart. “We prosecute cases like this to hold fraudsters accountable, protect the victims, and to seek restitution.”
Byers used her position as the treasurer of a local union to defraud the union of approximately $22,000 by using the union’s bank card to make numerous purchases of personal items.
The Department of Labor, through its Office of Inspector General and Office of Labor Management Standards, conducted the investigation. United States District Court Judge Frank W. Volk presided over the plea hearing. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
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Founder and CEO of Iranian Financial Services Firm Pleads Guilty to Conspiracy to Violate U.S. SanctionsRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald today announced the guilty plea of Seyed Sajjad Shahidian, 33, for his role in conducting financial transactions in violation of U.S. sanctions against Iran. Shahidian, who was indicted on Dec.18, 2018, entered his guilty plea today to one count of conspiracy to commit offenses against and to defraud the United States before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
Shahidian, a citizen of Iran, was arrested in London, England on Nov. 11, 2018. On May 15, 2020, Shahidian was extradited to the United States and had his initial appearance in the District of Minnesota on May 18, 2020.
According to the defendant’s guilty plea and documents filed in court, Payment24 was an internet-based financial services company with approximately 40 employees and offices in Tehran, Shiraz, and Isfahan, Iran. The primary business of Payment24 was helping Iranian citizens conduct prohibited financial transactions with businesses based in the United States, including the unlawful purchase and exportation of computer software, software licenses, and computer servers from United States companies. According to Payment24’s website, the company charged a fee to circumvent “American sanctions,” and claimed to have brought in millions of dollars of foreign currency into Iran.
According to the defendant’s guilty plea and documents filed in court, Shahidian, the founder and former Chief Executive Officer of Payment24, co-conspirator Vahid Vali, and other individuals violated the restrictions on trade and exports from the United States to Iran. On its website, Payment24 sold a package to assist its Iranian clients with making online purchases from United States-based businesses, which included a PayPal account, a fraudulent “ID card and address receipt,” a remote IP address from the United Arab Emirates, and a Visa gift card. The Payment24 website also offered its clients advice on how to create accounts with a foreign identity and how to avoid restrictions on foreign websites, including advising clients to “never attempt to log into those sites with an Iranian IP address.”
According to the defendant’s guilty plea and documents filed in court, Shahidian admitted to making material misrepresentations and omissions to United States-based businesses regarding the destination of the United States-origin goods. In order to accomplish the transactions, Shahidian obtained payment processing accounts from United States-based companies like PayPal using fraudulent passports and other false residency documentation to falsely represent that his customers resided outside of Iran. Shahidian admitted to opening hundreds of PayPal accounts on behalf of his Payment24 customers who resided in Iran and to unlawfully bringing millions of U.S. dollars into the economy of Iran.
Pursuant to the International Emergency Economic Powers Act (IEEPA), unauthorized exports of goods, technology or services to Iran, directly or indirectly from the United States or by a United States person are prohibited.
This case is the result of an investigation conducted by the Minneapolis Division of the FBI. The U.S. Attorney’s Office for the District of Minnesota, the U.S. Department of Justice, and the FBI are particularly grateful for the substantial assistance provided by law enforcement authorities in the United Kingdom, including the National Crime Agency and London Metropolitan Police, in connection with the arrest and extradition in this matter.
Assistant U.S. Attorneys Timothy C. Rank and Charles J. Kovats of the District of Minnesota and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Founder and CEO of Iranian Financial Services Firm Pleads Guilty to Conspiracy to Violate U.S. SanctionsRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald today announced the guilty plea of SEYED SAJJAD SHAHIDIAN, 33, for his role in conducting financial transactions in violation of U.S. sanctions against Iran. SHAHIDIAN, who was indicted on December 18, 2018, entered his guilty plea today to one count of conspiracy to commit offenses against and to defraud the United States before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
SHAHIDIAN, a citizen of Iran, was arrested in London, England on November 11, 2018. On May 15, 2020, SHAHIDIAN was extradited to the United States and had his initial appearance in the District of Minnesota on May 18, 2020.
According to the defendant’s guilty plea and documents filed in court, PAYMENT24 was an internet-based financial services company with approximately 40 employees and offices in Tehran, Shiraz, and Isfahan, Iran. The primary business of PAYMENT24 was helping Iranian citizens conduct prohibited financial transactions with businesses based in the United States, including the unlawful purchase and exportation of computer software, software licenses, and computer servers from United States companies. According to PAYMENT24’s website, the company charged a fee to circumvent “American sanctions,” and claimed to have brought in millions of dollars of foreign currency into Iran.
According to the defendant’s guilty plea and documents filed in court, SHAHIDIAN, the founder and former Chief Executive Officer of PAYMENT24, co-conspirator VAHID VALI, and other individuals violated the restrictions on trade and exports from the United States to Iran. On its website, PAYMENT24 sold a package to assist its Iranian clients with making online purchases from United States-based businesses, which included a PayPal account, a fraudulent “ID card and address receipt,” a remote IP address from the United Arab Emirates, and a Visa gift card. The PAYMENT24 website also offered its clients advice on how to create accounts with a foreign identity and how to avoid restrictions on foreign websites, including advising clients to “never attempt to log into those sites with an Iranian IP address.”
According to the defendant’s guilty plea and documents filed in court, SHAHIDIAN admitted to making material misrepresentations and omissions to United States-based businesses regarding the destination of the United States-origin goods. In order to accomplish the transactions, SHAHIDIAN obtained payment processing accounts from United States-based companies like PayPal using fraudulent passports and other false residency documentation to falsely represent that his customers resided outside of Iran. SHAHIDIAN admitted to opening hundreds of PayPal accounts on behalf of his PAYMENT24 customers who resided in Iran and to unlawfully bringing millions of U.S. dollars into the economy of Iran.
Pursuant to the International Emergency Economic Powers Act (IEEPA), unauthorized exports of goods, technology or services to Iran, directly or indirectly from the United States or by a United States person are prohibited.
This case is the result of an investigation conducted by the Minneapolis Division of the FBI. The United States Attorney’s Office for the District of Minnesota, the United States Department of Justice National Security Division, and the Federal Bureau of Investigation are grateful for the substantial assistance provided by law enforcement authorities in the United Kingdom, including in particular the National Crime Agency and the London Metropolitan Police, in connection with the arrest and extradition in this matter.
Assistant U.S. Attorneys Timothy C. Rank and Charles J. Kovats of the District of Minnesota and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defendant Information:
SEYED SAJJAD SHAHIDIAN, a/k/a “Soheil Shahidi,” 33
Shiraz, Iran
Convicted:
- Conspiracy to defraud and commit offenses against the United States, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Wilkinsburg Resident Sentenced for Violating Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA -A former resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to seven years’ imprisonment and six years’ supervised release on his conviction of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Jordan Thompson, 23.
According to information presented to the court, on February 7, 2019, Thompson possessed with intent to distribute fentanyl and heroin. The court was further informed that Thompson unlawfully possessed a Glock .40 caliber firearm in furtherance of the drug trafficking offense, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include one conviction for possession with intent to deliver a controlled substance, two convictions for receiving stolen property, and convictions for carrying a firearm without a license and being a person not to possess a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroeville Police Department conducted the investigation that led to the prosecution of the defendant. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (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.
Former Bumble Bee CEO Sentenced to Prison for Fixing Prices of Canned TunaRead the Press Release
Christopher Lischewski, former Chief Executive Officer and President of Bumble Bee Foods LLC, was sentenced to serve 40 months in jail and pay a $100,000 criminal fine for his leadership role in a three-year antitrust conspiracy to fix prices of canned tuna, the Department of Justice announced.
Lischewski was charged on May 16, 2018, in an indictment returned by a federal grand jury in San Francisco. After a four-week trial in late 2019, he was convicted on the single count of participating in a conspiracy to fix prices of canned tuna. In imposing Lischewski’s 40-month prison sentence, the Court found that Lischewski was a leader or organizer of the conspiracy and that it affected over $600 million dollars of canned tuna sales.
“The sentence imposed today will serve as a significant deterrent in the C-suite and the boardroom,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Executives who cheat American consumers out of the benefits of competition will be brought to justice, particularly when their antitrust crimes affect the most basic necessity, food. Today’s sentence reflects the serious harm that resulted from the multi-year conspiracy to fix prices of canned tuna.”
“This sentence is the result of our commitment to holding corporations and senior leadership accountable for their actions, whether they operate in the food supply industry or elsewhere,” said FBI San Francisco Division Special Agent in Charge, John F. Bennett. “This brings us closer to our goal; allowing our citizens to be able to purchase food in an unbiased market within an efficient and fair economy, free of corporate greed.”
Bumble Bee pleaded guilty and was sentenced to pay a $25 million criminal fine. In September, StarKist Co. was sentenced to pay a statutory maximum $100 million criminal fine. In addition to Bumble Bee and StarKist, four executives, including Lischewski, were charged in the investigation. The other three executives pleaded guilty and testified in Lischewski’s trial.
The sentence announced today is a result of the Department’s ongoing investigation into price fixing in the packaged-seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging, or other anticompetitive conduct related to the packaged-seafood industry should contact the Antitrust Division’s San Francisco Office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Florissant Man Sentenced to 60 Months in Prison for Making False Statement in Attempted Firearm Purchase as a Convicted FelonRead the Press Release
St. Louis, Missouri –United States District Judge Rodney W. Sippel sentenced Johnny Sesson II, 47, of Florissant, Missouri, to 60 months in prison for making a false statement on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473 in order to acquire a firearm.
According to the plea agreement, on April 13, 2019, Sesson attempted to purchase a shotgun from federally licensed firearms dealer Quincy Farm & Home Supply in Cottleville, Missouri. In completing the Form 4473, Sesson made a false written statement to the effect that that he had never been convicted of a felony crime. Sesson admitted to knowingly making this false statement, and that the false statement regarding his status as a convicted felon was capable of influencing the federally licensed firearms dealer into believing a firearm could lawfully be sold to him. Sesson also admitted to making the false statement with the intent to acquire the shotgun and to deceive the firearms dealer into selling him the shotgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and was prosecuted by the United States Attorney’s Office.
Florida Man Sentenced for Illegal Taking of Black Bear in Kenai National Wildlife RefugeRead the Press Release
Anchorage, Alaska - U.S. Attorney Bryan Schroder announced that a Florida man was sentenced in federal court for violating the Lacey Act by shooting and transporting a black bear in the Skilak Wildlife Recreation Area, which is part of the Kenai National Wildlife Refuge, an area closed to all hunting and trapping.
James L. Connolly, 63, of St. Petersburg, Florida, was sentenced on Monday, June 15, 2020, by U.S. Magistrate Judge Matthew M. Scoble, to pay a fine of $8,000, after previously pleading guilty to one count of violating the Lacey Act. As part of his sentence, Connolly agreed to forfeit the black bear hide, and is to serve a two-year term of probation, during which he is prohibited from hunting anywhere in the United States.
According to court documents, on May 17, 2018, Connolly shot and killed the black bear in the Skilak Wildlife Recreation Area on the Kenai Peninsula, an area closed to all hunting and trapping. Connolly then transported the bear carcass from Alaska to a tannery in California, who then shipped the carcass to Connolly in Florida.
The investigation revealed that eyewitnesses had seen the remains of a black bear that had been killed on Skilak Lake Loop Road, and others had seen and spoken with Connolly, who told them he recently shot and killed a black bear in the area. Law enforcement officers took DNA samples of the blood from the kill site and matched it with DNA samples taken from the bear carcass in Connolly’s possession in Florida. Evidence collected by now retired Federal Wildlife Canine Rex played a vital role in the investigation and prosecution of Connolly.
At the sentencing hearing, Judge Scoble noted the importance of protecting Alaska’s natural resources and “the wild spaces” in the United States. He also commented that Mr. Connolly’s actions were particularly “abhorrent” under the circumstances. Specifically, that an individual would travel to Alaska from Florida with the intent to hunt and kill a wild animal, and not be aware of the proper areas he could legally take an animal.
The Kenai National Wildlife Refuge and the U.S. Fish and Wildlife Service’s Office of Law Enforcement conducted the investigation, with assistance from the Florida Wildlife Commission and Federal Wildlife Officers in Alaska, Florida, and North Carolina, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh.
Felon in Possession of a Gun Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jacob Clark Jackson, 29, of Mobile, was sentenced today in federal court to five days in custody as time served on the charge of being a convicted felon in possession of a firearm. Jackson pled guilty to the charge in October of 2018.
United States District Court Judge Kristi K. Dubose imposed the sentence, ordering that Jackson would be on supervised release for three years, with the first 12 months to be served in home confinement. Jackson was ordered to undergo mental health counseling and drug abuse treatment as conditions of his supervision. No fine was imposed, but Jackson was ordered to pay $100 special mandatory assessment.
The investigation was conducted by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Felon Sentenced to 24 Months After Threatening Former Employer and Possessing a FirearmRead the Press Release
St. Louis, Missouri –United States District Judge Rodney W. Sippel sentenced Christopher McKinney, 28, of St. Louis, to 24 months in prison for being a felon in possession of a firearm.
According to the plea agreement, on June 24, 2019, officers from the St. Ann Police Department were called to the Freeman Foundation at 8499 Lackland Road for a former employee threatening management after having been fired. McKinney was leaving the facility in a tan Infinity sedan with an expired plate when officers stopped the vehicle at 8316 Charlack Road. When asked what happened, McKinney stated there was a verbal argument before he left the business. Officers asked him if there was anything he had on him or in the vehicle that could hurt anyone. McKinney stated there was a pistol on the front passenger seat and gave consent for officers to retrieve the pistol. In plain view on the front passenger seat was a Ruger SR 45, which officers retrieved.
At the time defendant possessed the aforementioned firearm, he knew he had been convicted of a crime punishable by a term of imprisonment exceeding one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Edward Dowd handled this case for the U.S. Attorney’s Office.
Felon Admits Possessing Loaded Rifle in East HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL A. GOMEZ, 30, of Hartford, pleaded guilty today in New Haven federal court to possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 17, 2019, Gomez was involved in a one-car motor vehicle accident in East Hartford. As East Hartford Police responded to the accident, Gomez ran from the scene. He was apprehended after a short foot chase. A subsequent search of Gomez’s vehicle revealed a loaded AM-15 .223 caliber rifle.
In 2008, Gomez was convicted in state court of two counts of assault in the first degree, on which he was sentenced to 15 years of imprisonment, execution suspended after seven years.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gomez is scheduled to be sentenced by U.S. District Judge Janet C. Hall on September 9, 2020, at which time he faces a maximum term of imprisonment of 10 years.
Gomez has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.