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29 July 2020
Pittsburgh Woman Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Theresa Somerville, 50, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. Ms. Somerville was one of 37 defendants charged in the original Indictment and is one of 22 defendants charged in the Superseding Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Intercepted communications revealed that Ms. Somerville was involved in the distribution of heroin and fentanyl. Specifically, Theresa Somerville assisted her son and co-defendant, Ronald Williams, with heroin/fentanyl transactions by preparing drugs for pickup by him or serving customers outside her house.
Judge Stickman scheduled sentencing for Dec. 14, 2020, at 10:30 am. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, 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. Ms. Somerville remains on bond pending an August 3, 2020 bond violation hearing.
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pass Christian Man Pleads Guilty to being an Unlawful Narcotics User in Possession of a FirearmRead the Press Release
Gulfport, Miss. – Travis W. Fennel, 32, of Pass Christian, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to one count of possession of a firearm by an unlawful user of illegal narcotics, announced U.S. Attorney Mike Hurst and ATF Special-Agent-in-Charge Kurt Thielhorn.
On October 14, 2019, a Harrison County Sheriff’s Deputy initiated a traffic stop on a vehicle driven by Fennel for speeding and following too closely. The Deputy recovered a Rock Island M1911 .45 caliber semi-automatic handgun from Fennel who later admitted to being an unlawful user of illegal narcotics. On May 12, 2020, Fennel was charged in a federal criminal indictment.
Fennel will be sentenced by Judge Ozerden on October 29, 2020 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Erica Rose.
Parent in College Admissions Case Sentenced to PrisonRead the Press Release
BOSTON – A California man was sentenced today for agreeing to pay more than $500,000 to participate in the college admissions scheme for his two children.
Manuel Henriquez, 56, the founder of Hercules Capital, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six months in prison, two years of supervised release during which time he is ordered to conduct 200 hours of community service, and ordered to pay a fine of $200,000. In October 2019, Henriquez pleaded guilty to one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering.
Beginning in 2015, Henriquez conspired with William “Rick” Singer and others to secure his children’s admission to selective colleges and universities through bribery and fraud. In June 2015, Henriquez paid Singer to have a corrupt proctor correct his older daughter’s answers on the SAT II subject tests. In October 2015, Henriquez again paid Singer to have a third party correct his older daughter’s answers on the SAT exam. Henriquez pursued exam cheating through Singer for his younger daughter on three additional occasions in 2016 and 2017, once in Houston, Texas and twice in Los Angeles, Calif. Finally, Henriquez paid Singer $400,000 to facilitate his older daughter’s admission to Georgetown University as a purported tennis recruit, even though she did not play tennis competitively.
In March 2020, the defendant’s wife, Elizabeth Henriquez, was sentenced to seven months in prison, two years of supervised release, during which time she is ordered to conduct 300 hours of community service, and ordered to pay a fine of $200,000.
Manuel Henriquez is the 28th parent to have pleaded guilty and the 20th parent to be sentenced in this case.
Singer previously pleaded guilty and is cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner and Employees of Monmouth County Marine Equipment and Servicing Company Charged with Defrauding U.S. Department of DefenseRead the Press Release
TRENTON, N.J. – Three people have been charged for their alleged roles in a years-long conspiracy to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized by contract, U.S. Attorney Craig Carpenito announced today.
Linda Mika, 69, and Paul Mika, 73, both of Jackson, New Jersey, and Kenneth Mika, 49, of Ewing, New Jersey, were arrested today and are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
“As described in the criminal complaint, these defendants sought to make a greater profit by substituting products that were not those they had contractually agreed to provide to the Department of Defense,” U.S. Attorney Carpenito said. “By doing so, they potentially risked the safety of our men and women in uniform. We will continue to work with our law enforcement partners to root out this kind of fraud.”
“Protecting the integrity of the defense procurement system is a top priority for the Defense Criminal Investigative Service (DCIS),” Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office, said. “This case, which resulted in today's arrests, confirms the DCIS’ ongoing commitment to work with the USAO-NJ and the FBI, to investigate and prosecute contractors who engage in fraudulent schemes targeting the U.S. Department of Defense.”
“Today's arrest of Linda Mika, Paul Mika and Kenneth Mika reflects the continuing impact federal and state partnerships have on combatting those who defraud the Department of Defense,” Acting FBI Special Agent in Charge Joe Denahan said. “These contractors of Monmouth Marine Engines Inc. knowingly provided substituted parts for military equipment for their own personal gain. We will continue to investigate these types of schemes and hold those who endanger the U.S. military accountable.”
According to documents filed in this case and statements made in court:
From at least March 2017 through February 2020, the Mikas conspired with each other and others to defraud the DoD and its combat logistic support arm, the Defense Logistics Agency (DLA), by engaging in a pattern of unlawful product substitution. Paul Mika was the founder and owner of Monmouth Marine Engines Inc. (Monmouth Marine), a maritime equipment and servicing facility, which, as an approved federal contractor, also entered into contracts with DLA to supply DoD contracting entities with replacement parts for Naval vessels. Paul Mika’s wife and son, Linda Mika and Kenneth Mika, were employees of Monmouth Marine.
The Mikas, on behalf of Monmouth Marine, obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be exact products furnished by authorized manufacturers. Once awarded the contracts, however, the Mikas sourced non-conforming substitute parts at a significantly reduced cost to fill the contracts. They did this to maximize their profit margin while also suppressing fair competition in the bidding of federal contracts. Upon receipt by Monmouth Marine, the non-conforming parts were then shipped to DLA in packaging disguising the parts’ identity in an effort by the Mikas to deceive DLA and its unwitting downstream purchasers.
The count of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Barzey; and special agents of the FBI, under the direction of Acting Special Agent in Charge Denahan with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney=s Office Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Operation Legend Expands to DetroitRead the Press Release
DETROIT – United States Attorney Matthew Schneider announced today the expansion of Operation Legend to Detroit. Schneider was joined at a press conference at ATF Headquarters with the heads of Michigan’s federal law enforcement, including ATF Special Agent in Charge James Deir, DEA Assistant Special Agent in Charge Kent Kleinschmidt, FBI Special Agent in Charge Steve D’Antuono, and United States Marshal Owen Cypher.
United States Attorney Matthew Schneider stated, “Operation Legend continues and expands what we have been doing for decades, which is sending federal agents and money to Detroit to fight gun and gang violence. Our children are being caught in the crossfire and murdered in senseless acts of gun violence, and I am very thankful that our community supports federal help to fight the current crime wave in Detroit.”
In December 2019, United States Attorney Matthew Schneider and Detroit Police Chief James Craig joined Attorney General William Barr and the heads of the FBI, DEA, ATF, and U.S. Marshals Service in Detroit to launch Operation Relentless Pursuit. This initiative surged federal resources to fight back against violent crime, gangs, and gun violence in seven of America’s most affected cities, including Detroit. This effort continues and expands with Operation Legend.
Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in cooperation with state and local law enforcement officials to fight violent crime. The Operation was launched on July 8 in Kansas City, Missouri, as a result of President Trump’s promise to assist America’s cities that are plagued by violence and has since expanded to include Albuquerque, Chicago, Cleveland, Milwaukee, and Detroit.
Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. Similar crimes are happening in Detroit. Detroit is currently experiencing a significant increase in violent crime, with homicides currently up 31% and shootings up 53%.
Operation Legend, combined with Operation Relentless Pursuit, will bring a total of approximately 42 federal agents to Detroit, in addition to the many federal agents who have worked for decades with state and local partners on violent crime and other offenses. An additional 10 Detroit ATF agents have been reassigned to work on violent gun crimes.
These federal agents come from the FBI, DEA, ATF, and U.S. Marshal’s Service. Some are temporary assignments that came to Detroit in December 2019. Others are permanent assignments who will provide long-term support to our local partners. Our primary local partner is the Detroit Police Department.
Our federal-local partnership will build upon proven, existing violent-crime fighting strategies. Specifically, we will address (1) fugitive apprehension; (2) gun violence; (3) gang violence; (4) illegal firearm possession, use, and trafficking; and (5) violent drug trafficking. As we have for many years, we will work with the Detroit Police Department to use intelligence-led, data-driven approaches to solve homicides and shootings. The Department of Justice’s assets will supplement local law enforcement efforts, as we work together to take the shooters and chronic violent criminals off of our streets.
Starting in December 2019, the enhancement to our federal-local law enforcement partnership has included the following:
● 10 new U.S. Marshal Task Force Officers began temporary detail assignments; ATF had 4 special agents assigned to the group targeting armed fugitives who were apprehended
● 7 new DEA personnel began temporary detail assignments (5 Special Agents, 1 Special Agent Supervisor, and 1 Intelligence Analyst)
● $3.9 million in grants to Detroit and Wayne County to fight gang and gun violence
Starting in July 2020, Operation Legend expands our partnership to include the following for the City of Detroit:
● Approximately $1 million BJA grant awarded to local law enforcement to assist in gun and gang violence prevention
● Approximately $100,000 JLEO grant awarded for acoustic gunshot detection technology and equipment
ATF
● 10 new/permanent ATF Special Agents
● 1 new/permanent ATF Supervisory Special Agent
● 4 new/permanent ATF Intelligence Specialists
● 4 new/permanent ATF Industry Operations Investigators
● 15 ATF Special Agents begin temporary detail assignments
● 10 ATF Special Agents reassigned internally to this initiative
● ATF creates additional unit to focus on gun violence
FBI
● 5 FBI Special Agents realigned from other FBI programs
● 3 FBI Analysts from other FBI programs
● 3 FBI Special Agents begin temporary detail assignments
● 1 FBI Intelligence Analyst begins temporary detail assignment
● FBI issues $25,000 rewards for information leading to the arrest of suspects in gun violence cases
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Operation Legend Expanded to Milwaukee to Confront Violent CrimeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, joined the Department of Justice in officially announcing the expansion of Operation Legend to Milwaukee. Operation Legend is a sustained, systematic, and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. In addition to Milwaukee, Operation Legend is now underway in Kansas City, Chicago, Albuquerque, Detroit, and Cleveland.
The expansion of Operation Legend to Milwaukee marks a continuation of violent crime reduction efforts that began in Milwaukee under Operation Relentless Pursuit in December 2019. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
The addition of these resources will help address a spike in violent crime. In Milwaukee, there already have been 97 homicides in 2020, an 85% increase over last year. Non-fatal shootings in the city also are up 64%.
As part of Operation Legend, the Department of Justice will supplement state and local law enforcement agencies by sending more than 25 federal investigators from the FBI, DEA, ATF, and United States Marshals Service to the city. These investigators will join the work already underway by existing joint federal, state and local task forces focused on combatting violent crime, including offenses involving firearms and violent drug trafficking organizations. Ten of those federal investigators are assigned to work in Milwaukee temporarily to provide immediate assistance, and the others will be assigned over the coming year to Milwaukee permanently to provide long-term assistance.
United States Attorney Krueger held a press conference in Milwaukee to make the announcement along with leadership from the FBI, ATF, DEA, United States Marshal’s Service, Milwaukee County Sheriff’s Office, and the Milwaukee Police Department.
At the press conference, FBI Special Agent in Charge Robert Hughes announced that the FBI is offering a reward of up to $25,000 for information leading to the identification and arrest of the individuals responsible for the murder of Qunyonce Louis-Moore of Milwaukee on June 30, 2020. Louis-Moore, who was 16 years old at the time of her death, was shot when unknown individuals opened fire on the 3400 block of North 8th Street at approximately 10:28 p.m. Louis-Moore was on a walk with her friends when she was struck by gunfire.
In addition to the increased number of federal agents described above, through the Bureau of Justice Assistance, the Department of Justice will make available $1.9 million in funding to support Operation Legend’s violent crime reduction efforts in Milwaukee. In addition, the Department of Justice’s COPS Office also has made $10.2 million available to the Police Departments of Milwaukee, Wauwatosa, and Cudahy to fund the hiring of 29 new officers to facilitate those Police Departments’ ability to assign existing officers to task forces.
The Department has also provided assistance through the Joint Law Enforcement Operations fund to assist reimbursement of local law enforcement serving as federal task force officers with the FBI, ATF, DEA, and U.S. Marshals Service. ATF also has provided $100,000 to help agencies in the Milwaukee area defray costs associated with installing or maintaining shot detection technology.
During the press conference, the results of the initial phase of Operation Relentless Pursuit were announced. This phase ran from January to April 2020 and focused on apprehension of violent fugitives. The efforts in Milwaukee were led by the United States Marshal’s Service in coordination with the ATF, FBI, DEA, and the Milwaukee Police Department. In Milwaukee, the operation resulted in the arrest of 96 individuals wanted for violent offenses, including homicide, robbery, aggravated assault, and forcible sexual assault.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Operation Legend Expanded to Cleveland, Detroit, and MilwaukeeRead the Press Release
Today, the expansion of Operation Legend was announced in Cleveland, Detroit, and Milwaukee. Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The Operation was first launched on July 8 in Kansas City, Missouri, and expanded on July 22, 2020, to Chicago and Albuquerque.
Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The first federal arrest under Operation Legend was announced on July 20.
“The most basic responsibility of government is to protect the safety of our citizens,” said Attorney General William P. Barr. “Today, we have extended Operation Legend to Cleveland, Detroit, and Milwaukee, three cities that have seen disturbing increases in violent crime, particularly homicides. For decades, the Department of Justice has achieved significant success when utilizing our anti-violent crime task forces and federal law enforcement agents to enforce federal law and assist American cities that are experiencing upticks in violent crime. The Department of Justice’s assets will supplement local law enforcement efforts, as we work together to take the shooters and chronic violent criminals off of our streets.”
As part of Operation Legend, Attorney General Barr directed the FBI, U.S. Marshals Service, DEA, and ATF to significantly increase resources into Cleveland, Detroit, and Milwaukee in the coming weeks to help state and local officials fight high levels of violent crime, particularly gun violence. Cleveland is currently experiencing a significant increase in violent crime, with homicides currently up more than 13 percent and shootings up over 35 percent over 2019. Similarly, homicides are up in Detroit nearly 31 percent and shootings resulting in wounds are up over 53 percent. In Milwaukee, homicides are up 85 percent this year, and non-fatal shootings are up 64 percent.
In Cleveland, the Department of Justice will supplement state and local law enforcement agencies by sending more than 25 federal investigators from the FBI, DEA, and ATF to the city. Under the leadership of Justin Herdman, U.S. Attorney for the Northern District of Ohio, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combating violent gangs, gun crime, and drug trafficking organizations.
The Bureau of Justice Assistance will make available $1 million to support Operation Legend’s violent crime reduction efforts in Cleveland, and the COPS Office has also made almost $10 million available to the Cleveland Police Department to fund the hiring of 30 officers, five Ohio State Highway Patrol troopers, and four Adult Parole Authority officers.
In Detroit, the Department of Justice will supplement state and local law enforcement agencies by sending approximately 42 federal agents from the FBI, DEA, and ATF to the city. An additional 10 Detroit ATF agents have been reassigned to work on violent gun crimes. Under the leadership of Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, these federal agents will work cooperatively with the Detroit Police Department to combat gun and gang violence, as they have been doing since December 2019. These additional resources include 11 new and permanent ATF Special Agents and five new and permanent FBI Special Agents who will focus on violent crime in the City of Detroit.
The Bureau of Justice Assistance will make available $1.4 million to support Operation Legend’s violent crime reduction efforts in Detroit, and the COPS Office has also made $2.4 million available to the Detroit Police Department to fund the hiring of 15 officers.
In Milwaukee, the Department of Justice will supplement state and local law enforcement agencies by sending more than 25 federal investigators from the FBI, DEA, ATF, and U.S. Marshals Service to the city. Under the leadership of Matthew Krueger, U.S. Attorney for the Eastern District of Wisconsin, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combatting violent crime, including offenses involving firearms and violent drug trafficking organizations. 10 of those federal investigators are assigned to work in Milwaukee temporarily to provide immediate assistance, and the others will be assigned over the coming year to Milwaukee permanently to provide long-term assistance.
The Bureau of Justice Assistance will make available $1.9 million in funding to support Operation Legend’s violent crime reduction efforts in Milwaukee, and the COPS Office has also made $10.2 million available to the Police Departments of Milwaukee, Wauwatosa, and Cudahy to fund the hiring of 29 officers.
The Department has also provided assistance through the Joint Law Enforcement Operations (JLEO) fund to assist reimbursement of local law enforcement serving as federal task force officers with FBI, ATF, DEA, and the U.S. Marshals Service. Each city will receive $100,000 from ATF to help local agencies defray costs associated with installing or maintaining shot detection technology.
Okmulgee Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenneth Roy Nester, age 26, of Okmulgee, Oklahoma entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment alleged that on or about December 30, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
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The charges arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation as part of the Project Safe Neighborhoods (“PSN”) effort in the Eastern District of Oklahoma to reduce violent crime. PSN is an initiative led and coordinated by the United States Attorney’s Office.The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States at the change of plea hearing.
Odenton Felon Sentenced to 30 Years in Federal Prison for Charges Related to the Attempted Armed Robbery of His Former Employer—A Food Service Company—Including Shooting an EmployeeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Cornell Slater, a/k/a Chopper, age 34, of Odenton, Maryland, to 30 years in federal prison, followed by five years of supervised release, for using, carrying, and discharging a firearm during and in relation to a crime of violence; for committing a commercial robbery; and for being a felon in possession of a firearm. Slater’s convictions arose from the attempted armed robbery of a food service business in Baltimore on December 5, 2018, during which Slater shot an employee of the business, and from another shooting on November 14, 2018, during which Slater shot the driver of a nearby vehicle.
Co-defendant Alex Smith, a/k/a Skeet, age 34, of Halethorpe, Maryland, was convicted at trial on January 10, 2020, on federal charges of conspiracy to commit a commercial robbery, attempted robbery, and using, carrying, and discharging a firearm during and in relation to a crime of violence, for his role in the crime.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Acting Chief William Lowry of the Anne Arundel County Police Department.
According to Slater’s guilty plea, which was entered on the eve of trial, as well as evidence presented at Smith’s trial, on December 5, 2018, Slater and Smith committed an attempted armed robbery of a food service business, which was Slater’s former employer. At approximately 3:22 a.m., Slater picked Smith up at his residence and the two traveled to the business. At 4:30 a.m., four employees arrived for the morning shift to open the store. Surveillance cameras showed Slater and Smith, who were wearing masks, walking across a parking lot in the direction of the employee entrance. As employees entered the store, Slater and Smith trailed them through the open door, posing as employees.
As detailed in the plea agreement and described during trial testimony, upon entering the building Slater confronted two victims outside of the manager’s office, pulled out a gun and shot one of the victims in the face. Slater then forced the other employee toward the direction of the cash room, where the safe was stored. In the meantime, Smith entered the employee breakroom and confronted two other victims, brandishing a firearm while he ordered the victims to hand over their cell phones and get on the floor. Once Slater and the victim reached the cash room, the victim quickly entered the room and shut the door behind him, knowing that the door would lock automatically.
Knowing that they had been locked out of the cash room, Smith and Slater fled to Slater’s vehicle and drove off.
In addition to the attempted robbery, Slater admitted that on November 14, 2018, he fired two shots at a woman, striking her in the side. The woman’s temporary license plate had been stolen from her vehicle on October 26, 2018. While driving in her neighborhood in the 2500 block of Springhill Avenue in Baltimore on November 14, 2018, the victim saw her stolen license plate on Slater’s car and pulled beside the vehicle to see who had stolen the plate. Slater confronted the victim for following him and shot her. The victim was able to describe Slater and his girlfriend, who had also been in the car at the time of the shooting.
Both of the shootings were forensically linked through the National Integrated Ballistic Information Network (NIBIN) by the shell casings recovered at each shooting scene. Using information gleaned from both investigations, law enforcement officers were able to locate Slater and subsequently arrest him on December 18, 2018, outside of his residence in Odenton. At the time of his arrest, Slater’s vehicle was displaying another temporary license plate that Slater stole approximately two weeks earlier. During a search of Slater’s residence, law enforcement recovered the 9mm pistol used in the two shootings from under Slater’s bed, as well as 10 rounds of 9mm ammunition. Slater had previous felony convictions, including a prior federal conviction, and was prohibited from possessing a firearm or ammunition.
Smith faces a maximum of 20 years in federal prison for a commercial robbery; and a mandatory minimum of 10 years and a maximum of life in federal prison for aiding and abetting the discharge of a firearm during and in relation to a crime of violence. Actual sentences for federal crimes are typically less than the maximum penalties. Judge Bennett has scheduled sentencing for Smith on October 21,, 2020, at 3:00 p.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) NIBIN. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and James G. Warwick, who are prosecuting the case.
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Ninth Circuit Court of Appeals upholds conviction of former State Auditor Troy X. KelleyRead the Press Release
Seattle - The 9th Circuit Court of Appeals today rejected the appeal of former Washington State Auditor TROY X. KELLEY, clearing the way for him to start serving the one-year-and-one-day sentence imposed by U.S. District Judge Ronald B. Leighton on June 28, 2018. The court declined to hear oral argument and upheld the conviction with an order today.
“Through two trials and multiple appeals, the attorneys in this office have sought nothing but justice for those Kelley defrauded and the members of our community who expect law breakers to be held accountable regardless of their station or standing in society,” said U.S. Attorney Brian T. Moran. “The time has come for Troy Kelley to accept his punishment and report to custody and conclude this lengthy legal odyssey.”
According to the evidence at trial, between 2003 and 2008, KELLEY operated a business that monitored real estate filings on county websites. KELLEY agreed with escrow companies that his business would charge a flat fee of $15 or $20 for each real estate transaction it monitored for the escrow companies’ customers. In addition to the flat fee, the escrow companies also gave Kelley $100-$150 of customer money for each transaction, which KELLEY agreed to use to pay expenses if necessary. KELLEY agreed to refund the money to the homeowners if there were no expenses. However, beginning in 2005, in virtually every case he handled, KELLEY kept the entire amount withheld on each transaction, thereby stealing nearly $3 million.
In 2008, class action lawsuits were filed against escrow companies, claiming that homeowners had been charged excessive fees in real estate transactions. After the lawsuits were filed, KELLEY falsified a letter to the plaintiff in one lawsuit to make it appear that KELLEY had refunded the plaintiff’s money, when in fact he had not. Concerned that the lawsuits would lead to his downfall, KELLEY transferred millions of dollars of stolen money through a series of bank accounts, ultimately placing the funds in an investment account for a company controlled by a Central American trust controlled by KELLEY. One of the escrow companies sued KELLEY to retrieve the stolen money. KELLEY testified falsely under oath in the lawsuit that he had only kept money he had earned for services provided. One of KELLEY’s convictions for making false declarations in a court proceeding is based on that testimony.
Beginning in 2011, KELLEY spent the stolen money on personal expenses and his campaign for State Auditor. To hide the fact that this was money he had stolen years earlier, KELLEY claimed on his tax returns that he was continuing to perform real estate services and to earn income through his business, when in fact he had not operated the business for years. In the same tax returns, KELLEY claimed tens of thousands of dollars of business deductions for personal items like spa treatments, a family trip, and household purchases such as sheets and toys. KELLEY’s tax fraud convictions are based on this conduct.
In December 2017, a unanimous jury convicted KELLEY of possession of stolen property, two counts of making false declarations under oath, and six counts of tax fraud. Following the trial, an unrelated U.S. Supreme Court ruling resulted in the dismissal of one of the tax fraud counts.
A first trial in March 2016 ended with the jury being able to reach a verdict on only one count, acquitting KELLEY on lying to the Internal Revenue Service agent who questioned him about his scheme in 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case was prosecuted by Assistant United States Attorneys Arlen Storm, Andrew Friedman, Seth Wilkinson and Katheryn Frierson. Assistant United States attorney Michael Morgan handled the appeal.
18-30153._dkt._64_usv_kelley_002.pdfNew Jersey Public University Employee Admits Role in $5.3 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – An employee of a public university in New Jersey today admitted his role in a scheme to defraud public and private health benefits programs of at least $5.3 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.
John Cuffari, 58, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and July 2016, Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Cuffari exploited this opportunity through working as a sales representative for several compounding pharmacies. In order to profit as a sales representative, Cuffari targeted individuals who had insurance plans that covered compounded medications and then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. In order to obtain prescriptions for compounded medications for some of the recruited individuals, Cuffari caused payments to be made to a New Jersey-based physician.
Once the prescriptions were written, they were filled by the compounding pharmacies with which Cuffari worked. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay Cuffari a percentage of the reimbursement amount.
As part of his plea agreement, Cuffari must forfeit $539,580 in criminal proceeds he received for his role in the scheme and pay restitution of at least $5,392,214. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 9, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the United States Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
More Members of Family-Run Heroin-Trafficking Ring Sentenced to PrisonRead the Press Release
NORFOLK, Va. – Two Portsmouth men were was sentenced to a combined 21 years in prison for their respective roles in a family-run heroin-trafficking organization in which members trafficked at least one kilogram of heroin throughout Hampton Roads and sold handguns, rifles, and shotguns with their drugs.
According to court documents, Dominic Donta Jones, 27, and Raewkon Akil Pierce, 24, were members of the Jones DTO run by Malcolm Jones, Sr., Jones and Pierce’s father. The organization operated at least three drug premises, including the “Court,” a residence serving as the distribution point for Jones Sr.’s drugs—heroin, fentanyl, Acetyl fentanyl, crack, and powder cocaine. Since the beginning of 2017, the Court serviced 50 to 100 customers a day until authorities shut down the operation on Sept. 11, 2019. During that time, Jones and Pierce stayed at the Court, managed drug-trafficking efforts there, and stockpiled firearms there to protect their drug trade. Jones also sold a handgun during one of his heroin transactions, and that heroin turned out to be a mixture of fentanyl and Acetyl fentanyl.
This case is part of Operation High Tide, a proactive, large-scale narcotics trafficking and firearms investigation that focused on high-impact targets driving crime in some of the hardest hit neighborhoods in Hampton Roads.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson and Special Assistant U.S. Attorney Kristin Bird prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-155.
Monterey, Louisiana Couple Sentenced for Felony Violations of the Lacey ActRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a couple from Monterey, Louisiana, was sentenced in federal court in Shreveport on July 23, 2020, to three years of federal probation for felony Lacey Act violations in relation to illegally operating a woodcock guide service on Richard K. Yancey Wildlife Management Area (RKYWMA). The Suttons pleaded guilty on August 19, 2019.
Senior U.S. District Judge Dee D. Drell ordered William K. Sutton, 66, to pay a fine in the amount of $5,000; Karen S. Sutton, 61, was ordered to pay a fine in the amount of $1,000. Additionally, Judge Drell ordered the couple to pay restitution in the amount of $7,850 to the RKYWMA and the United States Fish and Wildlife Service, Office of Law Enforcement.
The Suttons were named in a federal indictment for conspiracy and Lacey Act violations in March of 2019 after agents with the United States Fish and Wildlife Service completed a successful criminal investigation of their Woodcock guide service. State Wildlife officers had cited Mr. Sutton during the previous hunting season, but the Suttons continued their illicit activity. The investigation culminated with joint search warrant executions by Federal and State Wildlife agents at the Sutton’s residence and hunting lodge. The investigation yielded evidence indicating the Suttons had conducted approximately 82 illegal hunts over a two-year period netting an estimated monetary gain of over $100,000.
The Lacey Act is a comprehensive federal law that protects against wildlife crimes, such as international and domestic wildlife trafficking. The Act prohibits trade in wildlife, fish, and plants that have been taken, possessed, transported or sold in violation of other federal, state, or foreign laws.
United States Fish and Wildlife Service Acting Special Agent in Charge Stephen Clark stated, “We take our mission working with the Louisiana Department of Wildlife and Fisheries and the citizens of Louisiana in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. The U.S. Fish and Wildlife Service, Office of Law Enforcement, considers the illegal commercialization of wildlife resources a high priority, and we will continue to work closely with our State partners to assist them in these important investigations."
"This is a great example of federal and state agencies working together to protect Louisiana's wonderful natural resources. This couple was stealing from the citizens of Louisiana and justice was served," said Louisiana Department of Wildlife and Fisheries, Enforcement Division, Colonel Chad Hebert.
The United States Fish and Wildlife Service and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Milwaukee Man Sentenced to Prison for Arson of DuplexRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that Dameon Johnson (46) was sentenced to five years in prison for his involvement in the arson of a duplex located on North 37th Street in Milwaukee. Johnson also will spend three years on supervised release following his prison term.
According to court documents, on November 19, 2019, after becoming upset with his girlfriend, Johnson used the stovetop in her kitchen in an upper unit of duplex to set fire to several pieces of his clothing. Johnson then piled the burning clothes on the hallway floor, burning a hole through the floor and causing damage to the ceiling of a rental unit on the first floor.
United States Attorney Krueger commended the quick response of the Milwaukee Fire Department (MFD) and the collaborative investigative work of MFD, the Milwaukee Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
By virtue of its statutory authority under the Organized Crime Control Act of 1970, ATF initiates investigations and assists in state and local bomb and arson investigations that impact interstate commerce. ATF has developed scientifically proven investigative capabilities, expertise and resources and has proved that the cooperative effort between trained State and local officers and ATF results in more effective investigations.
The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Marquez Pleads Guilty to Possession of Methamphetamine with Intent to Distribute, Agrees to 120-Month SentenceRead the Press Release
SALT LAKE CITY – Roberto Manuel Marquez, 43, of Tooele, pleaded guilty Monday afternoon to one count of possession of methamphetamine with intent to distribute in U.S. District Court in Salt Lake City.
Marquez, a Sureno gang member, was a fugitive from state parole when he was arrested Oct. 10, 2018, during a fugitive operation conducted by the U.S. Marshals Service’s Violent Fugitive Apprehension Team (VFAST) in the Salt Lake Valley. The Utah Board of Pardons and Parole had issued a warrant for Marquez after he removed a GPS ankle monitor and failed to report. The Tooele County Sheriff’s Office was also looking to talk to Marquez about a drive-by shooting in Middle Canyon in Tooele County on Oct. 3, 2018.
Task force officers developed information on Marquez’s location. Officers attempted to initiate a traffic stop in West Valley City, but the driver of the car fled at a high rate of speed and then attempted a U turn. After law enforcement officers tried to block the vehicle, the car hit two task force cars and came to a stop.
Marquez, who was in the passenger seat, was non-complaint, tased, and removed from the vehicle. After his arrest, officers found a key in his pocket that fit a gray lock box in the vehicle. They found meth, heroin, plastic baggies, drug paraphernalia and $3,269 in the box.
As a part of the plea agreement, Marquez admitted he possessed 346 grams of methamphetamine and $3,269. He agreed he was planning to distribute the methamphetamine to other people.
The plea agreement includes a stipulated sentence of 120 months in federal prison, subject to the approval of the Court. As a part of the plea agreement, federal prosecutors have agreed to dismiss a second count in the indictment, possession of heroin with intent to distribute, at sentencing.
While federal prosecutors cannot bind the State of Utah or Tooele County, parties to the federal plea agreement understand that the Tooele County Attorney’s Office will dismiss its pending case charging Marquez with discharge of a firearm during the drive-by shooting in Tooele after sentencing in the federal case.
There is no parole in the federal criminal justice system, so if the stipulated sentence is approved by the court, Marquez will serve 10 years in federal prison.
Assistant U.S. Attorneys in the U.S. Attorney’s Office in Salt Lake City are prosecuting the case. Special agents and task force officers with the U.S. Marshals Service’s VFAST and the DEA are investigating the case.
Manhattan U.S. Attorney Announces $2.775 Million Settlement of Medicaid Billing Fraud Case Against New York City and Computer Sciences CorporationRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Scott Lampert, the Special Agent in Charge for the New York Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), announced today the entry of two settlements in a Medicaid billing fraud lawsuit against New York City (the “City”) and Computer Sciences Corporation (“CSC”). The settlements resolved allegations brought by the United States and the State of New York that defendants knowingly failed to take reasonable measures to obtain private insurance coverage before billing Medicaid for early intervention program (“EIP”) services, such as speech and physical therapy, for young children.
Under the settlements, which were approved yesterday by U.S. District Judge Jed S. Rakoff, the City and CSC agreed to pay a total sum of $2.775 million, with $1,585,435 being paid to the United States and the remaining amount to the State of New York. As part of the settlements, defendants admitted, acknowledged, and accepted responsibility for conduct that resulted in the City having received payments from Medicaid for EIP services that Medicaid would not otherwise have made pursuant to its payment regulations and procedures.
Acting U.S. Attorney Audrey Strauss said: “Medicaid covers vitally needed medical care for millions of people in New York. Compliance with billing requirements ensures the financial integrity of the Medicaid program. This Office is committed to holding recipients of Medicaid funding and their billing agents responsible for complying with these billing requirements.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Millions of people in New York depend on Medicaid for vital services, and taxpayers across the state pay for that care. HHS-OIG will continue close cooperation with our State and Federal law enforcement partners to preserve this essential funding and ensure that it is used properly.”
As alleged in the complaint filed by the United States in September 2016, the City was responsible for paying for EIP services for young children in New York City and then was permitted to seek reimbursement from private insurers, Medicaid, and other funding sources. In 2007, the City retained CSC as its billing agent to submit EIP reimbursement claims. Although the City and CSC knew that Medicaid rules required them to take reasonable measures to obtain private insurance coverage before submitting EIP claims to Medicaid, they frequently ignored that billing requirement. For example, although the City knew that it received no response from private insurers for many EIP claims, the City and CSC failed to contact those insurers in a significant number of cases to follow up on the claims and determine the reason for the lack of a response. Instead, the City instructed CSC to treat those claims as having been denied by the private insurers and submit them to Medicaid using a code – known as “0Fill” – to indicate there was in fact no private insurance coverage.
In the two settlements, the City and CSC made numerous factual admissions. The City admitted, acknowledged, and accepted responsibility for, among others, the following conduct:
- the City was responsible for the provision of EIP services to eligible children in New York City, including preparing individualized family service plans, contracting with and paying treating providers such as audiologists and speech therapists who delivered EIP services, and seeking reimbursement for the EIP services provided to eligible children;
- in 2005, the City issued a request for proposal for a new fiscal agent for EIP, and a corporate predecessor of CSC responded to that request for proposal;
- between 2005 and 2007, the City and CSC engaged in discussions about the City’s expectations for CSC as the City’s EIP fiscal agent, during which the City advised CSC that when seeking reimbursement for EIP services for an eligible child with health coverage from both private insurance and Medicaid (“dual-eligible EIP beneficiaries”), the sequence of billing was to be: 1) private insurance, 2) Medicaid, and 3) EIP funds from New York State;
- in September 2007, the City and CSC signed a fiscal agent contract, after which CSC began developing systems and computer programs for the City; and
- from 2009 to 2012, the City received reports from CSC regarding instances where there had been no responses from private insurers for EIP claims involving dual-eligible beneficiaries; in a significant number of such cases, the City did not inquire with private insurers to determine the cause(s) for their lack of response, and did not direct CSC to so inquire.
CSC also admitted, acknowledged, and accepted responsibility for, among others, the following:
- in or about September 2010, CSC and the City discussed a plan to develop a procedure for designating claims as “denied” in CSC’s internal EIP database once those claims had been pending with private insurers for 90 days without an adjudication;
- the City approved that plan, and CSC proceeded to populate the claims that had received no response from private insurers after 90 days with the “denial” designation in its claims database;
- CSC also obtained permission from the City to submit those claims to Medicaid with the “0Fill” modifier – which, according to Medicaid’s claim submission guide, was to be used either for “when it is known that the primary payer or any other payer prior to Medicaid[] does not cover the services and so will not pay any amount towards the claim,” or for claims that “have been denied (the services were not covered) or were paid zero (the entire charge was adjusted, for example, applied to deductible) by any prior payer;” and
- as result, the City received payments from Medicaid for EIP services that Medicaid would not otherwise have made pursuant to its payment regulations and procedures.
These settlements arise from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allow private persons – known as “relators” – to file civil actions on behalf of the United States and share in any recovery.
Ms. Strauss praised the outstanding investigative work of the HHS-OIG, and she thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation and litigation of this case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Arastu Chaudhury are in charge of this case.
Man from Albuquerque faces federal firearms charges under Operation LegendRead the Press Release
ALBUQUERQUE, N.M. – Carlos Trevon Morris, 44, of Albuquerque, New Mexico made an initial appearance in federal court in Albuquerque today on a criminal complaint charging him with felon in possession of a firearm.
This case is being prosecuted as part of Operation Legend, a sustained and coordinated law enforcement initiative in which the U.S. Attorney’s Office and federal law enforcement agencies work with state and local law enforcement to prosecute gun and dangerous crimes arising in the City of Albuquerque.
“This case exemplifies the goals and aims of Operation Legend: to make Albuquerque a safer place to live by reducing gun violence.” said John Anderson, U.S. Attorney for the District of New Mexico.
As alleged in the criminal complaint, police officers responded to a call of shots fired at an apartment complex in Albuquerque. As officers approached the complex on foot, they saw Morris as he attempted to place what appeared to be an unconscious male into a vehicle. After shining their flashlights at Morris, officers noticed what appeared to be blood on his arms, shirt, and pants. Directly underneath Morris was the motionless body of the victim. The complaint further alleges that officers saw a bottle of bleach next to the vehicle. Police officers then commanded Morris to the ground and arrested him. The complaint further alleges that the police observed a blood trail from where the body and Morris were located and followed it all the way to an apartment walkway, where they discovered bullet casings and odors of bleach. Police officers also discovered a handgun in Morris’s left pant pocket. Morris was transported to a hospital for a gunshot wound on his right arm. Homicide detectives responded to the scene.
Morris is currently in custody awaiting a detention hearing scheduled for July 31. He faces up to 10 years in prison if convicted of the charged offense. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Thomas Outler is prosecuting the case.
Man Pleads Guilty in Scheme to Steal Debit CardsRead the Press Release
A U.S. citizen who formerly resided in the Dominican Republic has pleaded guilty to his role in a scheme to steal debit cards from bank customers, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Gregory Jean-Louis, 46, pleaded guilty on Wednesday to conspiracy to commit bank fraud before U.S. Magistrate Judge Jeffrey L. Cureton in Fort Worth.
Mr. Jean-Louis, a U.S. citizen living in the Dominican Republic at the time of his crime, was charged via criminal complaint in November 2019. He was removed from the Dominican Republic to the United States in May 2020. A federal grand jury in Texas returned an indictment against him a week after his arrest.
According to plea papers, Mr. Jean-Louis admits that he and his coconspirators used stolen PII (personal identification information) to obtain debit cards in the names of customers of Bank of America and Citizens Bank.
Posing as actual customers of the financial institutions, Mr. Jean-Louis – also known to his coconspirators as “G.” – reached out to the banks, requesting that they mail duplicate debit cards and PIN numbers to customers’ actual addresses, he admits.
He then directed coconspirators to steal the debt cards and PIN numbers from the customers’ mailboxes, and to send him photos of the cards and PINs so he could activate them.
Using the fraudulently obtained cards, the group withdrew thousands of dollars from customers’ accounts from ATMs across the country, including in Texas, New York, Massachusetts, Rhode Island, Connecticut, California, and Pennsylvania. Much of the money was wired to Mr. Jean-Louis.
The defendant now faces up to 30 years in federal prison. Sentencing has been set for Nov. 20 before U.S. District Judge Reed O’Connor in Fort Worth.
The United States Postal Inspection Service conducted the investigation; the U.S. Marshals Service assisted in Mr. Jean-Louis’ apprehension. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.
Luzerne County Women Sentenced for Fentanyl Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 24, 2020, Chyvonne Traver, age 28, and Kayla Clark, age 29, both of Swoyersville, Pennsylvania, were sentenced by United States District Court Judge Robert D. Mariani, for fentanyl trafficking and firearms offenses. Judge Mariani sentenced Traver to 36 months’ imprisonment and a four-year term of supervised release, and sentenced Clark to 60 months’ imprisonment and a four-year term of supervised release.
According to United States Attorney David J. Freed, Traver and Clark were convicted of conspiring to distribute between 100 and 300 grams of a fentanyl mixed with acetyl fentanyl, which is equivalent to approximately 50,000 to 150,000 potentially lethal individual doses of fentanyl, in June and July 2018. Traver also was convicted of possessing a firearm as a convicted felon, and Clark also was convicted of possessing a stolen firearm. Judge Mariani ordered the forfeiture of the firearm seized during the investigation.
A codefendant, Jhaquil Moore, previously was convicted of conspiring to distribute fentanyl, and was sentenced to 60 months’ imprisonment and a four-year term of supervised release. Another individual, Corey Foster, was charged in a separate indictment with trafficking fentanyl.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo 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 part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case further was 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 coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lame Deer man sentenced to prison for assaulting womanRead the Press Release
BILLINGS — A man who admitted injuring a woman by hitting and punching her during a fight in Lame Deer in 2017 was sentenced today to six months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Frank Brent Flying, Sr., 38, of Lame Deer, pleaded guilty in November to assault resulting in substantial bodily injury.
U.S. District Judge Susan P. Watters presided.
In court records filed in the case, the prosecution said that the assault occurred during an argument on Dec. 28, 2017 at a residence in Lame Deer on the Northern Cheyenne Indian Reservation. Flying punched the victim multiple times in the face and strangled her. The victim was treated for substantial injuries.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Illinois Man Sentenced for Failing to Update Sex Offender Registration & Absconding from Federal SupervisionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Raynaldo Mendez, 44, South Beloit, Illinois, was sentenced today by U.S. District Judge William M. Conley to 30 months in federal prison for failing to comply with sex offender registration, and an additional 24 months for revocation of his federal supervised release. This prison term will be followed by 10 years of supervised release.
Mendez was required to comply with sex offender registration requirements as a result of two Illinois sexual assault convictions. At the time Mendez failed to comply with the requirements of this registration, he was serving a term of supervised release in connection to a 2006 federal drug offense.
Mendez is currently serving a prison sentence for sexually assaulting a minor in 2017 in Wisconsin. Judge Conley ordered the sentences imposed today to run consecutively to that prison sentence.
In sentencing Mendez, Judge Conley stated that Mendez presented a continuing danger to the community and had totally ignored conditions of federal supervision. Judge Conley noted that Mendez had absconded from supervision and failed to update his sex offender registration, in part, to elude officers investigating the 2017 sexual assault.
The charge against Mendez was the result of an investigation conducted by the Beloit (Wisconsin) and South Beloit (Illinois) Police Departments, and the U.S. Marshals Service. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Illinois Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on July 28, 2020, a federal grand jury returned a one-count indictment against Javier Vargas (age: 43) of Joliet, Illinois.
The indictment alleges that Vargas possessed in excess of 50 grams of actual methamphetamine with the intent to distribute it to others in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). “Actual” methamphetamine possesses a high level of purity and is commonly known as “crystal” or “ice.” Vargas faces a minimum of ten years to life imprisonment, at least five years of supervised release, and up to a $10 million fine.
This case was investigated by the Manitowoc County Metro Drug Unit, Wisconsin Department of Justice – Division of Criminal Investigation, and Wisconsin State Patrol. It will be prosecuted by Assistant United States Attorney Alexander E. Duros.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Hudson County Felon Admits Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of multiple felonies admitted today to possessing a firearm and ammunition, U.S. Attorney Craig Carpenito announced.
Benorce Duncan, 31, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On May 21, 2019, Duncan knowingly possessed a Röhm .22-caliber RG10 revolver loaded with six rounds of ammunition. At that time, Duncan had previously been convicted in Hudson County Superior Court of aggravated assault and robbery, both of which are felonies.
The charge to which Duncan pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 8, 2020.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
U.S. Attorney Carpenito credited the Newark Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Charlie J. Patterson, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Hitting woman with baseball bat sends Busby man to prisonRead the Press Release
BILLINGS – A Busby man who admitted striking a woman with a baseball bat and his fists last year on the Northern Cheyenne Indian Reservation was sentenced today to three years and 10 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Chase Woodenlegs, 30, pleaded guilty in February to assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided.
In court records filed in the case, the prosecution said the assault happened on July 23, 2019 at a Busby residence. Woodenlegs hit the victim with his fists and a baseball bat. He also strangled the victim. After the assault, Woodenlegs fled the area. The victim was treated for multiple injuries.
Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.
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Hawaii man sentenced to five years in prison for possessing child pornographyRead the Press Release
HONOLULU, Hawaii – Tyler Pang, 20, of Honolulu, received a sentence of five years imprisonment from United States District Judge Leslie E. Kobayashi today for possessing child pornography. The defendant also must register as a sex offender in the jurisdiction(s) where he resides, is employed, or is a student.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that according to information produced in court, Pang found a sexually explicit video of a minor female online. After identifying her and finding her social media account, Pang contacted the female with threats to disseminate her sexually explicit video unless she produced more explicit images for him. When she refused to comply with his demands, Pang distributed the explicit video to her friends on social media, and continued to threaten her over the course of months. In addition, Pang admitted possessing a collection of child pornography that he offered for sale on the internet.
“The defendant’s despicable conduct in this case appropriately landed him in federal prison for years, where he can reflect upon the harm he caused the victim. As the prosecution made clear, Pang weaponized a sexually explicit video of a minor in his attempt to satisfy his desire for explicit photos of her. My office will continue to seek justice for victims of this kind of extortion, as well as those who victimize our young people by contributing to the market for child pornography by possessing, distributing, or producing it,” said U.S. Attorney Price.
“Identifying predators who exploit the innocence of a child will always be a top priority for the FBI. Tyler Pang possessed sexual images of children and distributed the images over the internet. Today’s sentencing highlights the hard work of the men and women of the FBI and puts a child predator offline,” said Federal Bureau of Investigation Special Agent in Charge Eli S. Miranda.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two California Women Charged with Health Care Fraud Scheme At Wisconsin Nursing Homes
Lauryn Nelson, 40, San Pedro, California, and Marie De La Torre, 50, Corona, California, are charged with conspiring to commit health care fraud, and De La Torre is also charged with eight additional counts of health care fraud, through a scheme to defraud the Medicare Program administered by the U.S. Department of Health and Human Services. The indictment alleges that the conspiracy operated from February to September 2015.
The indictment alleges that Nelson and De La Torre, both licensed vocational nurses, worked for a company not named in the indictment that did genetic testing of residents in nursing homes to determine how different residents metabolized medication, which might result in changes in medication prescribed to the residents. The indictment alleges that Nelson and De La Torre went into four nursing homes in Wisconsin, located in Milwaukee, Rhinelander, Oshkosh, and Wisconsin Rapids, to do this genetic testing and obtained medical information about residents which they used to create fraudulent wound care supply orders they submitted to Medicare for reimbursement. The indictment alleges that neither Nelson nor De La Torre had any involvement in caring for wounds of the Wisconsin nursing home residents.
The indictment alleges that Nelson and De La Torre directed that fraudulently ordered wound care supplies be shipped to the California office of the company for which they worked, instead of to the Wisconsin nursing homes. The indictment charges that they caused $552,889 to be billed to Medicare for these wound care supplies, of which Medicare paid $431,579.
If convicted, Nelson and De La Torre face a maximum penalty of 10 years in federal prison on Count 1, and De La Torre faces a maximum penalty of 10 years in federal prison for the remaining eight counts in the indictment. The charges against them are the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Zachary J. Corey is handling the prosecution.
Rhinelander Man Charged with Attempting to Entice Child
Richard M. Duellman, 42, Rhinelander, Wisconsin, is charged with using text messages and telephone calls to persuade an individual who had not attained the age of 18 years to engage in sexual activity that would constitute second degree sexual assault of a child under Wisconsin law. The indictment alleges that he attempted to do so on July 21, 2020.
If convicted, Duellman faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Oneida County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and Rhinelander Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Burnett County Man Charged with Possessing Child Pornography
Anthony A. Atkins, 47, Webster, Wisconsin, is charged with possessing child pornography. The indictment alleges that on June 15, 2020, he possessed a cellular phone that contained visual depictions of minors engaging in sexually explicit conduct, and at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Atkins faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Burnett County Sheriff’s Office and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Lincoln County Man Charged with Illegally Possessing Firearm
Michael W. Wienandt, 26, Tomahawk, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on May 15, 2020, he possessed a .40 caliber pistol.
If convicted, Wienandt faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Marathon County Sheriff’s Office, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert A. Anderson is handling the prosecution.
Beloit Man Charged with Gun Crime
Fabian W. Jones, 28, Beloit, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on March 15, 2020, he possessed a .40 caliber handgun.
If convicted, Jones faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Beloit Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
Spooner Man Charged with Possessing Methamphetamine for Distribution
Brian K. Dennis, 50, Spooner, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on May 29, 2020.
If convicted, Dennis faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Barron and Sawyer County Sheriffs’ Offices and the Drug Enforcement Administration. First Assistant U.S. Attorney Timothy M. O’Shea is handling the prosecution.
La Crosse Man Charged with Drug Crimes Involving Methamphetamine
Lucas Carpenter, 36, La Crosse, Wisconsin, is charged with possessing methamphetamine with the intent to distribute, and with distributing 50 grams or more of methamphetamine. The indictment alleges that he possessed and distributed methamphetamine on November 15, 2019.
If convicted, Carpenter faces a maximum penalty of 20 years in federal prison on the possession with intent to distribute charge, and a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the distribution of 50 grams or more or methamphetamine charge. The charges against him are the result of an investigation by the Prairie du Chien Police Department and the West Central Metropolitan Enforcement Group. Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.
Four MS-13 Gang Members Indicted in Maryland on Federal Charge of Conspiracy to Destroy and Conceal Evidence in Connection with a MurderRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland has indicted four MS-13 gang members today on federal charges in connection with their MS-13 gang activities, specifically for conspiracy to destroy and conceal evidence in connection with a murder. Charged in the three-count indictment are Jose Domingo Ordonez-Zometa, a/k/a “Felon,” age 31, of Landover Hills, Maryland; Jose Rafael Ortega-Ayala, age 28, of Washington, D.C.; Jose Henry Hernandez-Garcia, age 26, of no fixed address; and Kevin Alexis Rodriguez-Flores, age 20, of Stafford, Virginia.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation, Washington Field Office Criminal Division; Special Agent in Charge John Eisert of U.S. Homeland Security Investigations (HSI) Baltimore Office; Interim Chief of Police Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department; and Sheriff David P. Decatur of the Stafford County, Virginia Sheriff’s Office.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Maryland, Virginia, and throughout the United States. Members of MS-13 are expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members are expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Another principal rule of MS-13 is that its members must never cooperate with law enforcement. Violation of this rule results in an order of death for the offender.
According to indictment, the defendants were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) clique of MS-13, with Ordonez being the leader of the LGCS clique. MS-13 members and associates met on a regular basis to, among other things, discuss gang affairs and report on acts of violence committed by their members, with the goal of inciting and encouraging further violence. Each clique held clique meetings where business specific to that clique was discussed. Any perceived indiscretions by members and associates for violations of MS-13 rules were discussed at clique meetings, and punishments known as “courts” or “violations” were issued. Courts or violations often took the form of beatings by fellow MS-13 members. More serious violations resulted in the issuance of a “greenlight.” A greenlight was an order and/or approval to kill.
The indictment alleges that on March 8, 2019, Ordonez held a meeting for LGCS clique members at his residence to discuss clique matters, including recent contacts that an LGCS member (Victim 1) had with police. During the meeting, Ordonez questioned Victim 1 about his/her recent interaction with police and other matters. As a result of suspicions that Victim 1 was cooperating with police, the defendants and at least one other MS-13 member allegedly assaulted Victim 1 and another LGCS member who attempted to defend Victim 1 from the assault. The assault on Victim 1 continued, with Victim 1 being beaten, cut, and stabbed, and culminated with Ordonez, as LGCS clique leader, allegedly ordering Victim 1 be killed. The indictment alleges that Ortega, Hernandez, Rodriguez, and other LGCS clique members stabbed and murdered Victim 1 on Ordonez’ orders, for reasons including suspicions that Victim 1 had cooperated with law enforcement.
According to the indictment, Ordonez, as LGCS leader, directed Ortega, Hernandez, Rodriguez, and other LGCS clique members and co-conspirators to conceal and destroy evidence of the murder. Specifically, the indictment alleges that Ordonez directed Ortega and other LGCS clique members and co-conspirators to transport the body of Victim 1 from Maryland to a secluded location in Stafford, Virginia; set the body of Victim 1 on fire; and destroy and conceal other evidence of the murder of Victim 1. Further, the indictment alleges that while the body of Victim 1 was being transported from the crime scene, Ordonez, Hernandez, and Rodriguez stayed at the crime scene and attempted to destroy, remove, and conceal evidence of the murder of Victim 1, including Victim 1’s blood. When Ortega returned from disposing of Victim 1’s body, the defendants and others attempted to remove any evidence of the murder, including Victim 1’s blood, from the vehicle used to transport the body.
All of the defendants are currently detained on related state criminal charges.
The defendants face a maximum sentence of 20 years in federal prison. Initial appearances have not yet been scheduled in U.S. District Court.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Robert K. Hur commended the FBI, HSI Baltimore, the Prince George’s County Police Department, the Prince George’s County State’s Attorney’s Office, the Fairfax County, Virginia Police Department, and the Stafford County, Virginia, Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys William Moomau and Erin B. Pulice, who are prosecuting the case.
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Fort Edward Man Charged with Attempted Sex Trafficking of a ChildRead the Press Release
ALBANY, NEW YORK – Timothy J. Bush, 49, of Fort Edward, New York, appeared on July 23, 2020 in federal court on charges that he attempted to patronize a child under the age of 14 for a commercial sex act, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the criminal complaint filed in this case, on July 23, 2020, the defendant arranged to pay a woman $100 to have sex with her eleven-year-old daughter. The woman was an FBI agent acting in an undercover capacity. On July 28, 2020, Bush was ordered detained pending further court proceedings.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. If convicted, Bush faces a maximum sentence of life imprisonment, a mandatory minimum sentence of 15 years, a term of supervised release of at least 5 years, and up to life following any term of incarceration, a fine of up to $250,000, and will be required to register as a sex offender.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman. This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former Sheriff's Deputy Going to Prison for Possessing A Gun While Subject to A Domestic Violence OrderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael T. Blajszczak, 54, of Clarence, NY, who was convicted of possession of a firearm by a person subject to a domestic violence order of protection, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on April 27, 2019, a six-month domestic violence order of protection was issued in Cheektowaga, NY, Town Court against the defendant, who was an Erie County Sheriff’s Deputy at the time. As a result of that order, Blajszczak was prohibited from possessing any firearm during the time period for which it was in effect. On May 2, 2019, the defendant knowingly possessed a .22 caliber rifle and 11 rounds of ammunition.
“A just society depends on the shared understanding that all of its members—no matter what they do, the color of their skin, or the uniform that they wear—will be held personally accountable for their actions,” noted U.S. Attorney Kennedy. “Ensuring that all in our District share that understanding—and the responsibility it brings—is a lesson that the tremendous men and women of my Office, through their work, strive to deliver each and every day.”
The sentencing is the result of an investigation by the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Amherst Police Department, under the direction of Chief John Askey; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Former Fresno Businessman Charged with Wire Fraud and Money Laundering for Classic Car Restoration SchemeRead the Press Release
FRESNO, Calif. — A Fresno business owner was arraigned today for a scheme to defraud the customers of his classic car business, U.S. Attorney McGregor W. Scott announced.
On July 23, a federal grand jury returned a 22-count indictment against Jeffrey Scott Hedges, 48, currently residing in Irvine, charging him with wire fraud and money laundering.
According to court documents, Hedges owned and operated West Coast Chassis LLC. Between November 2015 and January 2019, Hedges advertised his business online as one dedicated to the restoration of classic cars likes Corvettes, Camaros, and others. However, instead of providing the promised chassis and modifications to the vehicle frames that his customers sent him, Hedges kept the money and failed to provide the promised product. Hedges allegedly defrauded his customers out of more than $600,000.
Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at 916-746-7000.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Hedges faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Employee of Birmingham Area Psychology Clinic Pleads Guilty to Defrauding State Medicaid Agency by Filing False Claims for CounselingRead the Press Release
BIRMINGHAM, Ala. — A former Birmingham area psychology clinic that defrauded the Alabama Medicaid Agency of at least $1.5 million by billing for counseling services that were never provided pled guilty today, announced U.S. Attorney Prim Escalona, Alabama Attorney General Steve Marshall and U.S. Department of Health and Human Services -OIG Special Agent in Charge Derrick Jackson.
Heidi Robertson, 35, pleaded guilty to one count of conspiracy to commit healthcare fraud for her role in filing false claims to the Alabama Medicaid Agency for individual and group counseling services for at-risk youth while she was employed as the primary insurance biller for Capstone Medical Resources, LLC. The owner of the facility, former Birmingham psychologist Sharon D. Waltz, pleaded guilty in 2019 to defrauding Medicaid of at least $1.5 million.
An investigation was initiated by the Program Integrity Division of the Alabama Medicaid Agency after an audit showed that billings submitted by Capstone for counseling services had increased from $99,000 in 2015 to more than $2 million in 2017. The Program Integrity Division referred its findings to the Attorney General’s Medicaid Fraud Control Unit after Waltz submitted falsified records during the Program Integrity Audit.
A subsequent investigation was conducted by the Medicaid Fraud Control Unit and the Office of Investigations of the U.S. Department of Health and Human Services Office of Inspector General. This investigation determined that the majority of claims submitted by Capstone during 2016 through 2018 were fraudulent. Robertson’s role in the scheme included submitting claims using the Medicaid identifications of the children of friends and family members for counseling services that never took place. Waltz paid Robertson a 10 percent commission for all claims paid by Medicaid. Robertson was employed by Waltz from 2016 through late 2017.
“The defendant’s actions demonstrated reckless disregard for at-risk youth,” U.S. Attorney Prim F. Escalona said. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to protect the members of our community that are the most vulnerable, our children.”
Attorney General Steve Marshall said, “This defendant engaged in an illegal and immoral scheme to profit at the expense of children in need by claiming payment for services that were never provided. As Attorney General, I stand committed with the U.S. Attorney and the Department of Health and Human Services to punish those who plunder the public treasury and betray the at-risk youth they were entrusted to serve.”
“Let this be a warning to medical billers around the State of Alabama that if you facilitate the submission of fraudulent claims, you will be held accountable for your actions,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Together with our partners at both the state and federal level, the OIG will continue to identify and hold accountable those responsible for such schemes.”
The U.S. Department of Health and Human Services OIG, the Alabama Attorney General’s Medicaid Fraud Control Unit, and the Program Integrity Division of the Alabama Medicaid Agency investigated the case. Assistant U.S. Attorney J.B. Ward and Assistant Attorney General Bruce Lieberman, working as a Special Assistant U.S. Attorney is prosecuting the case.
Former Dayton agency director sentenced to prison for accepted cash bribesRead the Press Release
DAYTON – The former director of Dayton’s Minority Business Assistance Center was sentenced via videoconference in U.S. District Court today to six months in prison and two years of supervised release for accepting a thing of value in connection with a local government.
According to court documents, RoShawn Winburn, 46, disclosed internal information regarding minority-owned, woman-owned and small disadvantaged business contracts to a local business owner who hoped to obtain contracts with the City of Dayton.
Between July 2015 and July 2016, Winburn accepted cash payments totaling more than $6,500 from the individual in exchange for internal City of Dayton documents with restricted public access.
Winburn met the individual at a downtown Dayton bar to provide information regarding contracts and receive cash.
Winburn pleaded guilty in February 2020.
Clayton Luckie, Brian Higgins, Steve Rauch, Joyce Cameron and James Cameron have also been charged in connection to this case. Luckie was sentenced in November 2019 to four months in prison for mail fraud. Williams was sentenced in January 2020 to 12 months in prison.
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 and Ohio Auditor of State Keith Faber announced the sentence imposed today by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.
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Former Construction Executive Pleads Guilty to Tax Evasion in Connection with Bribery SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RONALD OLSON, a vice president and deputy operation manager for Turner Construction Company (“Turner”), pled guilty today to charges of evading taxes on more than $1.5 million in bribes he received from building sub-contractors. OLSON is scheduled to be sentenced on December 9, 2020, at 11:00 a.m., before United States District Judge P. Kevin Castel. In related proceedings, co-conspirator Michael Campana, a subordinate construction manager at Bloomberg, LLC (“Bloomberg”), was sentenced last Friday, July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in the same scheme. In addition, two managers of a construction contractor – Anthony Guzzone and Vito NiGro – were respectively charged on July 14 and July 22, 2020, for evading taxes on more than $1.4 million and $1.8 million in bribes that they respectively received in the same scheme.[1]
Acting U.S. Attorney Audrey Strauss said: “When bribery is coupled with tax evasion, both the bribery victims and the taxpaying public are forced to bear the hidden, unfair costs of corruption. This investigation has resulted in charges of such conduct by four defendants, one of whom pled guilty today, one of whom previously pled guilty and was sentenced last week, and the other two of whom were charged earlier this month.”
According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:
Between 2011 and 2017, GUZZONE was a construction project manager for Bloomberg, a global financial firm that was engaged in various building projects in New York City and elsewhere, while OLSON and NIGRO were executives at Turner, which performed construction projects for Bloomberg. For most of that time, beginning in 2013, CAMPANA was also a construction manager at Bloomberg. Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg.
In all, the defendants are charged with failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million. The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction labor and materials for work on their individual homes and properties, and the direct payment of personal expenses. Such personal expenses included charges related to CAMPANA’s 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with CAMPANA’s honeymoon, as well as Super Bowl tickets worth almost $8,000 provided to GUZZONE. Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.
In connection with the underlying bribery scheme, the Manhattan District Attorney’s Office charged OLSON, CAMPANA, GUZZONE, NIGRO, and 10 others in December 2018 with numerous felonies, including charges of conspiracy, commercial bribery, and money laundering. On November 19, 2019, CAMPANA pled guilty in the State court case to money laundering in the third degree for his participation in the bribery scheme. (New York v. Guzzone, et al., case no. 04037-2018 (N.Y. Sup. Ct.), count 44). He is awaiting sentencing in that case, while the State charges remain pending against OLSON, GUZZONE, and NIGRO.
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OLSON, 53, of Massapequa, New York, pled guilty today to a single count of tax evasion for the tax years 2011 through 2017. That charge carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CAMPANA, 34, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced last week, on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes (which he has repaid), and a fine of $10,000.
GUZZONE, 51, and NIGRO, 59, both of Middletown, New Jersey, were each charged in criminal informations, respectively on July 14 and 16, 2020, with a single count of tax evasion. The charges against GUZZONE pertained to the tax years 2010 through 2017, while the charges against NIGRO pertained to 2011 through 2017. Those charges carry a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judges.
Ms. Strauss praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis, and Stanley J. Okula, Assistant Chief of the Criminal Appeals & Tax Enforcement Policy Section of the Tax Division of the Department of Justice, are in charge of the prosecution.
[1] In addition, all four defendants have been charged in New York State Supreme Court for their participation in the underlying bribery scheme, where CAMPANA has pled guilty in that case and is awaiting sentencing.
Former Cemetery Owner Sentenced for Defrauding CustomersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arminda Martin, age 49, formerly of York County, Pennsylvania, was sentenced on July 28, 2020, to 12 months’ and one day imprisonment to be followed by two years of supervised release, by Chief District Court Judge John E. Jones, III, for conspiring to commit mail fraud. The sentence represents a downward adjustment of approximately 32 months to account for prison time that Martin has served for a related fraud scheme in Ohio.
According to United States Attorney David J. Freed, Martin, along with her husband, Theodore Martin, owned and operated Suburban Memorial Gardens Cemetery in Dover, Pennsylvania. The Martins previously pleaded guilty to conspiring to defraud hundreds of their customers out of approximately $500,000. The Martins admitted that instead of applying customer payments to cemetery services and products, they embezzled the money for their own personal gain, including for gambling.
Theodore Martin was sentenced earlier this year to 13 months’ imprisonment.
The case was investigated by the United States Department of Veterans Affairs Office of Inspector General, the Federal Bureau of Investigation, and the Northern York County Regional Police Department. Assistant U.S. Attorneys Carlo D. Marchioli and Joseph J. Terz prosecuted the case.
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Former Baltimore Delegate Cheryl Glenn Sentenced to Two Years in Federal Prison for Soliciting and Accepting Bribes in Exchange for Official Actions Taken on Legislation Related to Medical Marijuana, Opioid Therapy Clinics, and Liquor LicensesRead the Press Release
Baltimore Maryland – U.S. District Judge Catherine C. Blake today sentenced former Maryland State Delegate Cheryl Diane Glenn, age 68, of Baltimore, Maryland, to two years in federal prison, followed by three years of supervised release, for federal honest services wire fraud and bribery. Judge Blake also ordered Glenn to forfeit and to pay restitution in the amount of $18,750 each.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Cheryl Glenn solicited and accepted more than $33,000 in bribes in exchange for official actions instead of doing her duty and putting the interests of the public above her own,” said U.S. Attorney Robert K. Hur. “We expect our elected officials to serve the public, not to use their positions of authority to line their own pockets. As this case demonstrates, we will work with our law enforcement partners to hold accountable those who betray the public trust. Cheryl Glenn will now pay the price for her greed by serving time in federal prison.”
“Elected officials owe the taxpayers of Baltimore their honest services and as today's sentence shows, there are serious consequences for violating that trust,” said Special Agent in Charge Jennifer Boone. “The FBI is dedicated to rooting out corruption so that the citizens we serve can feel secure that their elected leaders are putting the public good over their own personal profits.”
According to her plea agreement, until her resignation on December 18, 2019, Glenn was a Maryland State Delegate representing District 45, which covered portions of Baltimore. During her tenure, Glenn served as the Chair of the Banking, Consumer Protection, and Commercial Law Subcommittee of the Economic Matters Committee; the Vice Chair of the Rules and Executive Nominations Committee; and the Chair of the Baltimore City Delegation, among other roles.
As detailed in her plea agreement, from at least March 4, 2018 through February 11, 2019, Glenn defrauded the citizens of Maryland of the right to her honest services by soliciting and accepting bribes in exchange for her official actions. Specifically, Glenn accepted five bribes totaling $33,750 from an associate in exchange for voting in favor of a bill to increase the number of medical marijuana grower and processing licenses that were available to an out-of-state company; promising to lead the effort to change the law in order to provide a preference for Maryland residency to in-state medical marijuana license applicants; introducing legislation that decreased the number of years of experience required to be a medical director of an opioid maintenance therapy clinic; and introducing legislation that created a class B alcohol and liquor license in District 45.
Glenn admitted that after a meeting on March 5, 2018 with an associate and two businesspersons, she agreed to use her position as a state legislator to vote for a bill which could favor Company 1 in its pursuit of a medical marijuana license, in exchange for $3,000 in cash, which would be used to pay an outstanding tax bill on her residence. Glenn subsequently voted for the bill after its Third Reading on March 8, 2018, and again on April 7, 2018, after amendments from the Senate. The bill passed and on April 20, 2018, the associate provided Glenn with $3,000 in cash during a meeting at a restaurant in Baltimore County.
According to the plea agreement, on June 7, 2018, Glenn and her associate met with another businessperson at a restaurant in Baltimore to discuss medical marijuana licenses. During the conversation, Glenn told the businessperson that people had asked her how a medical marijuana company had been awarded a medical marijuana growing license without having any high-priced lobbyists. Glenn responded, “… they know God and Cheryl Glenn.” A few weeks later, Glenn followed up with the associate to see if the businessperson was “lookin’ for [Glenn] to help him or something?” The associate confirmed that the businessperson did want Glenn’s help and Glenn asked “… is he going to be makin’ a donation or something?” On August 10, 2018, the associate told Glenn that the businessperson had offered the associate $10,000 to get Maryland law changed so that local businesses would be given priority for medical marijuana licenses. The associate offered to split the $10,000 with Glenn, who agreed to introduce legislation to get the law changed in exchange for a payment of $5,000. In order to get the businessperson to make the $10,000 payment, Glenn subsequently sent the associate an e-mail pledging to take the lead in the effort to get the law changed so that Maryland residents received a preference for medical marijuana licenses. On August 23, 2018, the associate gave Glenn $5,000 in cash during a meeting at a Baltimore restaurant.
Further, Glenn admitted that on October 18, 2018, she pre-filed legislation to reduce the required experience for medical directors at opioid maintenance therapy clinics in order to receive another $5,000 payment from the businessperson. The payment was provided on October 22, 2018, and Glenn subsequently introduced the bill on January 9, 2019. Glenn also agreed to introduce legislation to obtain a liquor license for a restaurant that the businessperson wanted to open in Glenn’s district, in exchange for $20,000, with the initial payment of $5,000 to be made up front and the remaining $15,000 payment when the legislation was introduced. As stated in the plea agreement, Glenn received the $5,000 payment on December 10, 2018. On January 28, 2019, Glenn introduced the bill to obtain the liquor license and on February 11, 2019, received a bribe payment of $15,000.
Glenn took steps to conceal her illegal activities, including: agreeing not to deposit bribe payments in her bank account; agreeing to meet in person to discuss the details of bribes rather than discussing them over the phone; and creating a false loan note for the $15,000 bribe payment, falsely stating that the money was a gift and was in no way connected to her position as a State Delegate. On at least two occasions, Glenn texted an associate who was providing the bribe payments on behalf of the businesses and falsely advised the associate that the bribe payments were short a total of $750, which the associate subsequently provided to Glenn.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case, along with former Maryland Assistant U.S. Attorney Derek Hines.
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Foreign National Taken into Custody After Being Indicted in Fraudulent Ticket ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOSEPH GATT, age 75, a citizen of Canada and Malta, was arrested on July 26, 2020, in Los Angeles, California after previously being indicted by a federal grand jury sitting in the Eastern District of Louisiana with ten counts of wire fraud, in violation of 18 U.S.C. '' 1343, for conducting a lengthy scam related to the sale of sporting event tickets. Although GATT was indicted in June 2018, the indictment was unsealed only after GATT was taken into custody.
According to the indictment, between about 2009 and October 2014, GATT resided in the New Orleans area. He purported to sell tickets to spectator professional sporting events, including Union of European Associations (UEFA) Champions League and Federation Internationale De Futbol Association (FIFA) World Cup matches. Specifically, GATT falsely claimed to have connections with FIFA and, through those connections, could purchase tickets to World Cup games at or below face value before the tickets went on sale to the general public. GATT sought investors for his fraudulent business enterprise in which he claimed to be able to purchase World Cup tickets at face value and then sell them at a higher price to individuals and groups who wished to attend the games. GATT recruited individuals, including Investor A and Investor B, to enter into a fraudulent business arrangement in which they would give him money to purchase tickets and then split the resulting profits. Together, Investor A and Investor B gave GATT over $52,000. In fact, GATT used the money for personal purchases. When confronted, GATT wrote investors checks, ostensibly as repayment for the investments, when he knew that the account on which the checks were drawn had insufficient funds to cover the checks.
If convicted, GATT faces a maximum term of twenty (20) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment per count.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Supervisor of the Public Corruption Unit, is in charge of the prosecution.
Florida Man Sentenced to Three Years in Prison for Obstructing the IRSRead the Press Release
A Florida man was sentenced to 36 months in prison today for corruptly obstructing the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.
According to evidence presented at trial, since 1999, Dennis J. Nagle, 67, refused to voluntarily pay federal income taxes. As a result, by 2014, he had an outstanding tax balance of more than $400,000. When the IRS attempted to collect Nagle’s unpaid taxes by filing liens and levying his paychecks and pension, Nagle obstructed the IRS’s collection efforts. Nagle submitted false forms to his employer claiming he was exempt from federal tax withholding, attempted to pay off his tax debts with checks written on a closed bank account, and threatened to file criminal complaints against IRS collection officers. In total, Nagle sent the IRS at least 15 worthless payments, purportedly totaling more than $1.9 million dollars.
A jury convicted Nagle on Jan. 30, 2020.
In addition to the term of imprisonment, U.S. District Judge Paul G. Byron ordered Nagle to serve one year of supervised release and to pay approximately $221,502 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Archer of the Tax Division and Assistant U.S. Attorney Karen Gable, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Florida Man Charged with COVID Relief Fraud, Health Care Fraud and Money LaunderingRead the Press Release
A Florida man has been charged regarding allegations that he fraudulently obtained a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL), and that he orchestrated a conspiracy to submit false and fraudulent claims for reimbursement to Medicare and CareCredit, and to defraud his own patients by charging them thousands of dollars for chiropractic services under false pretenses.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Omar Perez Aybar of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG), and Special Agent in Charge Kevin Kupperbuschof the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Dennis Nobbe, 63, of Miami, Florida, was charged by criminal complaint, unsealed today upon his arrest, in the Southern District of Florida with wire fraud; health care fraud; conspiracy to commit health care fraud and wire fraud; making false statements to a financial institution; money laundering; and conspiracy to commit money laundering. He is expected to make his initial appearance before U.S. Magistrate Judge John O’Sullivan at 1 p.m. EST today.
The complaint alleges that Nobbe, a chiropractor, orchestrated a scheme to exploit his patients for financial gain through a credit card program intended to help patients pay for out-of-pocket medical expenses. To conceal his role in the scheme, Nobbe paid bribes to other physicians to open credit card merchant accounts in their names. Nobbe then encouraged patients at his chiropractic business, Dynamic Medical Services Inc., many of whom were low-income and did not speak English, to apply for the credit cards.
According to the complaint, Nobbe charged thousands of dollars to these credit cards for services that he never, or only partially, rendered, leaving patients saddled with debt. In addition, Nobbe bribed a physician to submit claims to Medicare on Nobbe’s behalf because Nobbe, as a chiropractor, was ineligible to submit the claims himself, and would not have been able to receive reimbursement for the claimed services. Nobbe and other physicians also allegedly conspired to launder the proceeds from these schemes.
As stated in the complaint, Nobbe instructed the physicians to conceal Nobbe’s involvement in the scheme, and sought to conceal the purpose of large wire transfers he received, through the use of shell companies and sham contracts.
The complaint further alleges that Nobbe obtained over $200,000 in PPP and EIDL loans intended to provide COVID relief, and that Nobbe transferred portions of the proceeds to shell companies under his control and to pay personal expenses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The CARES Act also authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by SBA-OIG, the FBI’s Miami Field Office, and HHS-OIG. The Department of Justice also thanks the U.S. Attorney’s Office for the Southern District of Florida, and the Florida Department of Revenue for assistance they provided. Trial Attorney Sara Clingan of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Peter Laserna is handling the forfeiture aspects of the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Financial officer of Hawaiian charter school sentenced to imprisonment for embezzling over $600,000 from Big Island charter schoolRead the Press Release
HONOLULU, Hawaii – Kelaukila Estabilio, 40, of Hilo, Hawaii, was sentenced today in federal court by U.S. District Judge Derrick K. Watson to 60 months imprisonment for embezzling funds from the Hawaiian charter school where she worked.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that according to court documents and information presented in court, from 2006 through January 2019, Estabilio worked for the Kua O Ka Lā Public Charter School, formerly located in Pahoa, Hawaii on the Big Island. The charter school also had a non-profit financial support entity, Ho’oulu Lahui. Estabilio was the financial officer of the charter school and responsible for managing the books and records.
For over six years, from at least 2012 through November 2018, Estabilio misused the charter school’s funds to pay for her and her family’s personal credit card bills totaling around at least $628,835. Estabilio used the charter school’s funds to pay off personal bills for extensive interisland and mainland travel; personal care, such as nail salons; pet veterinary care; retail purchases, such as stores like Victoria’s Secret and Zales; entertainment, such as Bruno Mars tickets, MMA, Netflix, and iTunes; living expenses; and restaurant bills. For years, Estabilio falsified the books and records of the charter school to conceal her embezzlement activities from both her subordinates and supervisors.
The charter school’s campus was destroyed by lava from the Kilauea eruption in or around July 2018. Over approximately five months, between July and November 2018, when her fraud was uncovered, Estabilio stole more than $90,000 from the charter school and Ho’oulu Lahui. In sentencing Estabilio, the District Judge imposed a sentence above the range suggested by the U.S. Sentencing Guidelines. At the sentencing hearing, the District Judge characterized Estabilio’s conduct as “reprehensible,” and driven by “greed” and a sense of “entitlement.” The District Judge pointed out that Estabilio’s scheme was revealed ultimately because of the careful attention to detail by staff at the charter school; not a change of heart by Estabilio. The District Judge also stated that Estabilio took advantage of her position of trust within the charter school and her theft impacted the charter school movement as a whole. Because of Estabilio’s “selfish” actions, the District Judge noted that the money the charter school needed for the children it served and to rebuild was not there when it needed it the most.
“This investigation and prosecution brought to light the despicable conduct of Kua O Ka Lā Public Charter School’s former financial officer. While charter schools and other educational institutions work to educate our keiki, unfortunately there are those like Estabilio who undermine those efforts to line their own pockets. As a result of this prosecution, Estabilio will have five years in federal prison to reflect upon the damage her actions caused to the native Hawaiian community, and the plight of those whose lives are so dramatically impacted by her shameful conduct,” said U.S. Attorney Price.
“Today’s sentencing sends a very simple message that these types of financial frauds will not go unpunished—they will be investigated to the fullest extent of the law,” said Trevor Fenwick, Special Agent in Charge of the U.S. Secret Service Honolulu Field Office.
In addition to a term of imprisonment, the Court also imposed three years of supervised release, restitution, and criminal forfeiture.
The case was investigated by the U.S. Secret Service with the assistance of the State of Hawaii Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorney Rebecca Perlmutter.
Federal Grand Jury Indicts Two for Kidnapping Resulting in DeathRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted two persons for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Separate indictments filed in U.S. District Court charge Patrick Devone Stallworth, 40, and Derick Irisha Brown a/k/a Quentesa Jackson, 29, each with one count of kidnapping and one count of conspiracy to kidnap a minor victim arising out of events which occurred in October 2019.
“This case is an excellent example of the seamless cooperation and coordination by federal agencies and our state and local partners,” Escalona said. “Federal law enforcement stands ready to assist whenever our help is needed.”
“The kidnapping of a child is one of a parent’s biggest fears.” First Assistant United States Attorney Lloyd C. Peeples said. “Despite their best efforts, federal, state, and local law enforcement were not able to bring the 3-year old victim home to her family. However, we hope that today’s charges will be a step towards bringing justice for her and her family.”
If proven that death resulted from the charges alleged in the indictments, Stallworth and Brown, would face a minimum sentence of life in prison, or death.
The Federal Bureau of Investigation, the Birmingham Police Department, and the United States Marshals Service all participated in this investigation. First Assistant U.S. Attorney Lloyd C. Peeples and Assistant U.S. Attorneys Robin Mark and Blake Milner are prosecuting the cases.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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.
Father and Son Sentenced to Federal Prison for Drug DealingRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Christopher Gloster, Sr. (57, Fort Myers), aka “OG,” to seven years in federal prison for conspiring to distribute crack cocaine. Gloster’s son, Christopher Gloster, Jr. (30, Fort Myers), aka “Jitt,” was sentenced to five years in federal prison earlier this year for the same offense.
According to court documents, in April 2019, the Glosters approached a woman with a plan to establish a residence in Lee County from which she could use to sell their crack cocaine. Gloster, Jr. advised the woman on suitable locations and how to run the “trap house.” Over the course of the next month, the father-and-son team supplied the woman with approximately $7,000 in crack cocaine, often meeting her in busy parking lots, where they also gave her pointers on generating more business and avoiding law enforcement. The plan collapsed within a month.
Gloster, Sr. was arrested on May 15, 2019, during a search of his apartment. His son quickly confessed. In total, law enforcement seized nearly one pound of the duo’s drugs.
This case was investigated by the Drug Enforcement Administration and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Execution Rescheduled for Federal Inmate Convicted of Brutally Murdering a Grandmother and her Nine-Year-Old GranddaughterRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to reschedule the execution of Lezmond Mitchell, a federal death-row inmate who was convicted more than 17 years ago of the brutal murders of a grandmother and her nine-year-old granddaughter. The execution, initially scheduled for last December, is now scheduled to occur on August 26, 2020, at the U.S. Penitentiary in Terre Haute, Indiana.
In October 2001, Mitchell murdered Alyce Slim, a 63-year-old grandmother, and her nine-year-old granddaughter as part of a carjacking in Arizona. After getting a ride from Slim in her pickup truck, Mitchell and an accomplice stabbed her 33 times and threw her body into the backseat beside her granddaughter. Mitchell then drove the truck 30-40 miles into the mountains, ordered the girl “to lay down and die,” slit her throat twice, and crushed her head with rocks. Mitchell and his accomplice proceeded to sever the heads and hands of the victims’ bodies and burn their clothes. Mitchell later confessed to the murders. In May 2003, a jury in the U.S. District Court for the District of Arizona found him guilty of numerous federal crimes — including first-degree murder, felony murder, and carjacking resulting in death — and he was sentenced to death. His convictions and sentence were affirmed on appeal, and his claims for collateral relief were denied by every court that considered them.
Mitchell’s execution was initially scheduled for December 2019, but the U.S. Court of Appeals for the Ninth Circuit entered a stay of execution while it resolved an additional appeal by Mitchell. The court of appeals unanimously rejected Mitchell’s claim in April 2020 and denied his request for full-court rehearing earlier this month. When the Ninth Circuit stay formally concludes, no legal impediments will bar the execution, and it can occur without further delay.
Eleven Individuals Charged with Social Security Fraud in Operation Dead RingerRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of federal charges against 12 individuals in Operation Dead Ringer. The individuals are charged in 11 separate cases, with cumulatively stealing more than $700,000 in benefits paid by the Social Security Administration on behalf of beneficiaries who were actually deceased. If convicted, each faces a maximum penalty of 10 years’ imprisonment on each count.
Operation Dead Ringer, initiated in the Middle District of Florida, aggressively targets individuals who steal Social Security benefits inadvertently paid to deceased beneficiaries. According to an information and the respective indictments:
Donald Stevenson (51, Orlando) was charged with theft of government funds. According to his plea agreement, from June 2016 through April 2019, Stevenson fraudulently collected approximately $48,750 in Social Security benefits and $3,501 in benefits from the Pension Benefit Guarantee Corporation following his mother’s death on June 17, 2016.
Jacque Rathburn (64, Punta Gorda) was charged with theft of government funds. Between February 2013 and June 2019, Rathburn fraudulently collected approximately $78,164 of her mother’s Social Security benefits following her mother’s death on February 18, 2013.
Glenn Frank (70, Largo) was charged with theft of government funds. From September 2016 through February 2019, Frank fraudulently collected approximately $28,895 of his mother’s Social Security benefits following her death on September 17, 2016.
Louis Rozzero (62, Clearwater) was charged with theft of government funds. Between October 2014 and April 2019, Rozzero fraudulently collected approximately $57,332 of his partner’s Social Security benefits following his partner’s death on October 21, 2014.
Scott Eads (56, Indianapolis) was charged with theft of government funds and aggravated identity theft. From February 2016 through April 2018, Eads fraudulently collected approximately $30,547 in Social Security benefits following the death of a Social Security beneficiary on February 6, 2016.
Ronald Harshman (53, St. Cloud) was charged with theft of government funds. From August 2013 through May 2019, Harshman fraudulently collected approximately $62,341 of his father’s Social Security benefits following his father’s death on August 11, 2013.
Sandra Polder (79, Orlando) was charged with theft of government funds and false statement to a federal agency. From January 2013 through May 2019, Polder fraudulently collected approximately $49,299 of her son’s Social Security benefits following his death on January 15, 2013.
Rosemary Freeman (75, Summerfield) was charged with theft of government funds. From January 2013 through April 2019, Freeman fraudulently collected approximately $83,488 of her boyfriend’s Social Security benefits following his death in January 2013.
Bruce Griffin (58, Dunnellon) was charged with theft of government funds. From June 2013 through July 2019, Griffin fraudulently collected approximately $50,963 of his wife’s Social Security benefits following her death in May 2013.
Madelin Caridad Ifrim (61, Fort Myers) and Marian Ifrim (53, Fort Myers) have been charged with theft of government funds. From April 2013 through February 2019 Madelin Caridad Ifrim and Marian Ifrim fraudulently collected approximately $100,762 in Social Security benefits following the death of a Social Security beneficiary in May 2013.
Robert Lee West Jr. (71, Fort Myers) was charged with theft of government funds. From November 1995 through February 2019, West fraudulently collected approximately $118,186 in Social Security benefits following the death of a Social Security beneficiary in November 1995.
“As these charges demonstrate, stealing from SSA on behalf of a deceased beneficiary is a federal crime. We work closely with SSA and other government agencies to identify Social Security fraud and stop improper payments,” said Gail S. Ennis, Inspector General of Social Security. “I thank the United States Attorney’s Office and Special Assistant U.S. Attorney Suzanne Huyler for their continuing support of our investigations, and our law enforcement partners for their vital assistance in bringing these individuals to justice.”
An information and an indictment are merely formal charges that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The cases are being investigated by the Social Security Administration – Office of the Inspector General, with assistance from other federal and local law enforcement agencies, including the Pension Benefit Guarantee Corporation – Office of the Inspector General. Special Assistant United States Attorney Suzanne Huyler is coordinating the Operation. She, along with Assistant United States Attorneys Yolande Viacava and Tyrie Boyer, will be prosecuting the above cases.
El Salvadorian National Sentenced to Eight Months for Felony Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that MARLON TORRES-HERRERA, an El Salvadorian national, age 50, was sentenced to credit for time served on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) by U.S. District Judge Sarah Vance. He was originally arrested on November 14, 2019 by federal immigration authorities and had served over (8) eight months in jail prior to being sentenced today. He will be deported once again.
According to the indictment, MARLON TORRES-HERRERA (“TORRES”), a citizen of El Salvador reentered the United States after he was previously deported on May 16, 2011. TORRES faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. He pled guilty on June 24, 2020.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Eight People in Kenosha and Chicago Charged with Heroin Trafficking OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today federal charges against eight defendants associated with a drug trafficking organization operating in Southeastern Wisconsin and Chicago. The co-conspirators are members and associates of the Black Disciples Street Gang.
The defendants are: James Allen, a.k.a. “Jimmy,” (52), Eric Bradley, a.k.a. “Too Too,” (52), Joanna Johnson, (25), James Smith, (36) John Gaston, a.k.a. “Ike,” (50), Richard Wadlington (69), Latonya Webster, (20), and Lance Woodward, (41).
A federal grand jury returned an indictment charging six of the defendants with conspiring to distribute 1 kilogram or more of heroin. If convicted of this conspiracy charge, those six defendants face a mandatory minimum term of ten years in prison. Two other defendants were charged with distribution of heroin.
On July 28 and 29, 2020, federal, state, and local law enforcement officers arrested four defendants in a coordinated enforcement operation. Throughout the course of the investigation, officers recovered approximately one kilogram of heroin and a firearm.
“The Justice Department is committed to confronting violent drug trafficking organizations that possess firearms and pedal deadly opioids,” said United States Attorney Krueger. “Kudos to the excellent cooperation among the law enforcement agents and officers from multiple agencies, led by the FBI, to build this case.”
Federal Bureau of Investigation (“FBI”) Special Agent in Charge Robert E. Hughes stated, “I commend the work of the Southeastern Wisconsin Regional Gang Task Force. Successful collaborative law enforcement partnerships from Racine to Chicago brought this violent drug trafficking operation to an end. The FBI has a long reach across states to bring violent offenders to justice, as demonstrated in this successful investigation by the FBI Milwaukee and Chicago Divisions.”
The defendants were charged based on joint investigation by law enforcement officers from the FBI’s Southeastern Wisconsin Gang Task Force, Kenosha Drug Operations Group, Racine County Metro Drug Unit, City of Racine Police Department Drug Unit, and the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Bridget J. Schoenborn.
Multiple law enforcement agencies participated in the arrests yesterday, including the FBI’s Southeastern Wisconsin Gang Task Force, FBI Chicago, Chicago Police Department, Kenosha Drug Operations Group, Racine County Metro Drug Unit, City of Racine Police Department Drug Unit, and the Drug Enforcement Administration.
The public is cautioned that an indictment or criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Eight Indicted for Criminal Activity During May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH – Eight Pittsburgh-area residents have been charged in six separate indictments for criminal activity perpetuated during a civil disorder in the City of Pittsburgh, United States Attorney Scott W. Brady announced today. The alleged criminal acts occurred while Pittsburgh Police officers were engaged in responding to the violent demonstration in downtown Pittsburgh on May 30, 2020 at the same time that many other citizens were lawfully protesting over the death of George Floyd in Minneapolis, Minnesota. The indictments were returned under seal on July 22, 2020, and the final two indictments were unsealed today.
"Throwing IEDs and bricks at police officers, throwing projectiles at and striking police horses, and setting police cruisers on fire are not the protected First Amendment activities of a peaceful protest; they are criminal acts that violate federal law," said U.S. Attorney Brady. "We will continue to identify and prosecute these agitators, whose acts of violence hijacked a lawful protest and undermined a message of equality with one of destruction."
"The actions of the accused were uncalled for and prevented law enforcement officers from carrying out their duties to protect and serve our community," said FBI Pittsburgh Special Agent in Charge Michael Christman. "The FBI respects the rights of people to peacefully exercise their First Amendment freedoms but will not stand by and let those with a violent agenda take over peaceful protests. We, alongside the Pittsburgh Bureau of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives, worked around the clock to uncover the faces behind the destruction and obstruction of law enforcement. We are not done. We continue to use all of our investigative resources to find each person who chose to start a violent confrontation."
"The defendants in this case posed as protesters to hijack otherwise peaceful demonstrations," said John Schmidt, acting Special Agent in Charge of the Bureau of Alcohol, Tobacco Firearms and Explosives’ Philadelphia Field Division. "ATF supports every citizens’ constitutional right to peaceably protest, and we are committed to rooting out those who use the current situation for their own nefarious intentions. Rest assured we will continue to work with our local and state partners to investigate violent acts committed during these unprecedented times until the criminal offenders are brought to justice."
"I would like to thank our law enforcement partners with FBI Pittsburgh, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office, plus the Damage Assessment and Accountability Taskforce for continuing to seek justice in these matters. The lawlessness we saw on May 30 cannot be tolerated. We appreciate the support to hold accountable those who committed violent acts in the City of Pittsburgh," Public Safety Director Wendell Hissrich said.
"The Pittsburgh Bureau of Police is committed to serving every resident, every visitor, and every person who works in the city of Pittsburgh. We have a track record of assuring the public’s First Amendment rights, and we will continue to protect those rights. But when protests turn violent, we have an obligation to protect everyone—including business owners, peaceful protesters, and law enforcement officers who are attacked for simply doing their jobs," Pittsburgh Police Chief Scott Schubert said.
The first indictment charges George Allen, 31, of Pittsburgh, Pennsylvania, with one count of obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Allen knowingly and willfully caused damage to a police officer’s police vehicle by throwing a projectile through the front passenger window of the vehicle, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
A second indictment charges Nicholas Lucia, 25, of Pittsburgh, Pennsylvania, with one count of obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Lucia knowingly and willfully threw an object at uniformed police officers that appeared to be an explosive device, which landed on an officer’s vest, was quickly pulled off by another officer, and thereafter exploded when it hit the ground, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
A third indictment charges Andrew Augustyniak-Duncan, 25, of Carnegie, Pennsylvania, with one count of obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Augustyniak-Duncan knowingly and willfully threw projectiles at several police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
A fourth indictment charges Raekwon Dac Blankenship, 24, of Pittsburgh, Pennsylvania with obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Blankenship knowingly and willfully caused damage to a police officer’s unmarked police vehicle by hitting, kicking and stomping on various parts of that vehicle, knowingly and willfully caused damage to a police officer’s marked vehicle by throwing a projectile into the windshield, and poked and struck multiple police horses, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties
The grand jury also returned a two-count indictment charging Devin Montgomery, 24, and Brandon Benson, 29, each of Pittsburgh, Pennsylvania, with malicious destruction or damage by fire of a vehicle of an organization receiving federal financial assistance and bank burglary. According to the Indictment, on May 30, 2020, Devin Montgomery maliciously damaged and destroyed by fire a police vehicle leased and possessed by the City of Pittsburgh Bureau of Police. The indictment further alleges that on May 30, 2020, Devin Montgomery and Brandon Benson entered and attempted to enter the Dollar Bank, located at 537 Smithfield Street in Pittsburgh, with the intent to take property, money or thing of value. The bank’s deposits were then insured by the Federal Deposit Insurance Corporation.
Finally, the grand jury returned a four-count indictment that named Da’Jon Lengyel, 22, of McKees Rocks, Pennsylvania, and Christopher West, 35, of Pittsburgh, Pennsylvania, as defendants. Counts one and two of the indictment allege that on or about May 30, 2020, Da'Jon Lengyel and Chrisopher West knowingly conspired to and did maliciously damage and destroy by fire a police vehicle leased and possessed by the City of Pittsburgh Bureau of Police, an organization receiving federal financial assistance. In addition, Counts three and four of the indictment allege that on May 30, 2020, Lengyel and West, respectively, knowingly and willfully caused damage to a police officer’s vehicle by hitting, kicking and stomping on various parts of the vehicle and by joining others to destroy the vehicle by fire. The indictment alleges this conduct resulted in the obstruction, impediment and interference of a law enforcement officer engaged in the lawful performance of his official duties.
For Allen, Lucia, Duncan and Blankenship, the law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. For Montgomery, the law provides for a mandatory minimum of five years and a maximum of 25 years in prison, a fine of $500,000, or both. For Benson, the law provides for a maximum total sentence of 25 years in prison, a fine of $500,000, or both. For Lengyel and West the law provides for a mandatory minimum of five years and a maximum of 30 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
U.S. Attorney Brady credited the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Bureau of Police for the investigation leading to these indictments.
Assistant United States Attorneys Shaun E. Sweeney and Jonathan D. Lusty are prosecuting these cases for the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dubuque Man Pleads Guilty to Conspiring to Distribute Opioids that Caused Three DeathsRead the Press Release
A man who sold three deadly doses of opioids in April and May of 2019 pled guilty today in federal court in Cedar Rapids.
Travis Gordon Jones, age 38, from Dubuque, Iowa, was convicted of one count of conspiring to distribute controlled substances near a protected location resulting in death.
At the plea hearing, Jones admitted that he conspired with others to distribute the opioids in Dubuque in April and May 2019. Jones also admitted that he personally sold mixtures of heroin, fentanyl, and a synthetic opioid called valeryl fentanyl that were used by three individuals who then died of overdoses. One of the individuals died on April 24, 2019 after using drugs Jones had distributed. Another individual died on May 20, 2019, after using drugs Jones had distributed.
The third victim died on May 27, 2019. Evidence at prior hearings showed that Jackie Birch drove her boyfriend, Mateusz Syryjczyk, and the third victim to Jones’s home in Dubuque during the early morning of May 27, 2019. Birch and the third victim went into the home, where they purchased what was purported to be heroin from Jones. The three then drove to a hotel in Dubuque, where they all used the purported heroin. The third victim began to overdose in the room. Birch and Syryjczyk did not immediately call 911, but, over the course of multiple hours, Birch would occasionally perform CPR on the third victim to restore some breathing function, though the victim never regained consciousness. Eventually, Birch and Syryjczyk decided they needed to call 911, and Syryjczyk took the remaining drug paraphernalia from the room to prevent law enforcement from finding it. The third victim never recovered.
Birch previously pled guilty to aiding and abetting the distribution of a controlled substance. Syryjczyk pled guilty to misprision of a felony. Both Birch and Syryjczyk are awaiting sentencing.
Sentencing for Jones before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Jones remains in custody of the United States Marshal pending sentencing. Jones faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $2,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number for Jones is 19-CR-1037-CJW-MAR. The case file number for Birch is 19‑CR‑1041‑CJW-MAR. The case file number for Syryjczyk is 19‑CR‑1042‑CJW‑MAR.
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Delaware Man Pleads Guilty to Defrauding Federal Government of Hundreds of Thousands of Dollars in Small Business Fraud CaseRead the Press Release
WILMINGTON, Del. – A Delaware man pleaded guilty today to wire fraud in connection with false representations that he made in a final report to the United States Air Force.
Pengcheng Lv is a co-owner of AlphaSense, Inc. (“AlphaSense”), a small technology company located in Wilmington, Delaware. Starting as early as 2008 and continuing through at least 2016, AlphaSense, through Lv, voluntarily and intentionally made false representations in grant proposals and payment requests to United States government agencies, including the United States Department of Energy (DOE), Air Force, Navy, and Army, the Defense Advanced Research Projects Agency, the National Science Foundation (NSF), and the National Aeronautics and Space Administration (NASA), seeking funds for scientific research. The total loss attributable to Lv’s conduct is between $250,000 and $500,000. As part of Lv’s plea, he also agreed to enter into a civil settlement to pay $700,000 in damages to the government for violations under the False Claims Act.
Lv’s grant applications were submitted to the government agencies in connection with grants or contracts that were administered through the Small Business Innovation Research (“SBIR”) and Small Business Technology Transfer (“STTR”) programs. The SBIR and STTR programs encourage domestic small businesses to engage in federal research and development that has the potential for commercialization. These funding programs are highly competitive and require a showing of adequate and qualified staffing and, in some cases, industry support.
Lv’s scheme included forging letters from university professors and industry professionals and including such letters in his proposals to the government as evidence of capability, support, or interest; representing that AlphaSense had employees with impressive experience and education, when many of those individuals had never worked for AlphaSense; and, pocketing money that had been earmarked through the government awards to others, including “ghost” employees.
“Lv deceived numerous government agencies into awarding federal grants or contracts that should have gone to honest, qualified, and deserving small businesses,” said U.S. Attorney David C. Weiss. “Fraud in the award process serves to undermine public trust and confidence in such programs, and harms deserving small businesses looking to commercialize their ideas. With our agency partners, we will continue to identify and punish those who use the federal funding process to line their own pockets and we will disgorge bad actors of any ill-gotten gains.”
"The SBIR/STTR program is a valuable tool in advancing NSF's mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program," commented Allison Lerner, the Inspector General for NSF. "The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney's Office and our investigative partners for their strong support in this effort."
“I commend the outstanding investigative efforts of our law enforcement partners and the work of the USAO for the District of Delaware in reaching this plea,” said NASA Inspector General Paul K. Martin. “Their teamwork resulted in ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors and grantees.”
“Protecting research and development programs funded by the U.S. Department of Defense is a priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “The defendant’s guilty plea is the result of a joint effort and this case demonstrates the DCIS’ ongoing commitment to work with the USAO-DE and its law enforcement partners to investigate and prosecute individuals who defraud the SBIR and STTR programs.”
“The SBIR and STTR programs are critically important in the generation of scientific breakthroughs and technological innovations. Those who defraud our programs are a threat to our nation. The Department of Energy, Office of Inspector General will continue to work with our law enforcement partners to hold all who violate the integrity of our Nation's scientific programs accountable,” said Department of Energy Inspector General Teri L. Donaldson. “Thank you to the U.S. Attorney's Office and our law enforcement partners on this joint investigation.”
Lv faces a maximum penalty of 20 years imprisonment, 3 years supervised release, a fine equal to the greater of $250,000 or twice the gross loss, and a $100 special assessment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the Offices of Inspectors General at NASA, NSF, and DOE, the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Naval Criminal Investigative Service, with assistance from United States Citizenship and Immigration Services and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Laura D. Hatcher and Elisabeth Christensen, Special Assistant U.S. Attorney, from the National Science Foundation Office of Inspector General.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. Case 1:20-cr-00021-MN.
Decatur Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
BIRMINGHAM, Ala. – A Decatur man pled guilty today to filing a false tax return, announced United States Attorney Prim F. Escalona and Internal Revenue Service, Criminal Investigations Special Agent in Charge James E. Dorsey.
According to court documents, Jerry Wayne Scott, Jr., 47, owned and operated Advanced Roofing in Decatur, Alabama. In 2013, Advanced Roofing worked on several large projects for which it was paid approximately $750,083. In October 2014, Scott filed a 2013 tax return that reported gross receipts of $392,250 for Advanced Roofing. For the preparation of the return, Scott provided a hand-written document to the tax preparer that listed the business income as $392,250, but failed to provide any other documentation to the tax preparer, such as bank statements, ledgers, or Forms- 1099.
“Filing a false tax return is not a victimless crime - it affects all Americans,” said Escalona. “The U.S. Attorney’s Office and IRS Criminal Investigation will continue to aggressively pursue those who choose to cheat the tax system.”
“The license to run a business is not a license to avoid paying taxes,” said IRS Criminal Investigation Special Agent in Charge James Dorsey. “Mr. Scott’s filing of false tax returns, cheated all Americans, since we all share the responsibility to pay our fair share tax for the government services and protections that we enjoy.”
The maximum penalty for filing a false tax return is three years in prison and a $100,000 fine.
Internal Revenue Service- CID investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
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.
Charleston Man Pleads Guilty to Three Federal Drug ChargesRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty today to federal charges related to three drug transactions, announced United States Attorney Mike Stuart. Levi Kennith Carter, 30, pled guilty to two counts of distribution of heroin, fentanyl and methamphetamine, and one count of distribution of methamphetamine.
“A three-time felon – two prior drug convictions and now again,” said United States Attorney Mike Stuart. “Carter’s two prior drug convictions didn’t help him see the error of his ways. Maybe this conviction will. Maybe not. Regardless, he’ll have plenty of time to consider his future.”
Carter admitted that on February 28, 2020 and March 3, 2020, he met with a confidential informant working with the Charleston Police Department at an apartment complex on Renaissance Circle in Charleston. On each occasion, he sold the informant a mixture of heroin, fentanyl and methamphetamine. Carter admitted that he again met with a confidential informant working with the Charleston Police Department on March 5, 2020, also at the same apartment complex, and sold the informant a quantity of methamphetamine. Each transaction was monitored by law enforcement officers.
Carter has two prior federal convictions from the Southern District of West Virginia for felony offenses tied to drug dealing activity. On October 12, 2010, he was convicted of aiding and abetting the possession with intent to deliver crack cocaine, and on October 2, 2015, he was convicted of distribution of heroin.
Carter faces up to 20 years in prison when sentenced on October 29, 2020.
The Charleston Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00073.
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