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Thursday 11 June 2020
Schuylkill County Man Sentenced to 14 Years’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rhashean Strange, age 35, of Shenandoah, Pennsylvania, was sentenced on June 10, 2020 by U.S. District Court Judge Robert D. Mariani, to 14 years’ imprisonment for his role in a conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Strange previously pleaded guilty to participating in the conspiracy during 2014 and 2015. Strange admitted that he and others in the conspiracy distributed between one and three kilograms of heroin, which is approximately equivalent to between 40,000 and 120,000 retail bags of heroin. The heroin was obtained from suppliers in Paterson, New Jersey, and Hazleton, Pennsylvania.
Strange, who used the street name “Chicago,” was the leader of the drug conspiracy and possessed firearms in connection with the criminal activity.
Judge Mariani also ordered Strange to serve five years on supervised release following his prison sentence, and to forfeit firearms and his share of cash seized during the investigation.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a 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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Rochester Felon Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert E. Tillard, 35, of Rochester, NY, who was convicted of being a felon in possession of a firearm, and to possessing marijuana with intent to distribute it, was sentenced to serve 66 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on February 25, 2017, Rochester Police officers, having observed a traffic violation, stopped the defendant on Flint Street. Upon stopping, Tillard exited the car and ran. As Tillard ran from the police, he threw a 9mm handgun to the ground. Upon apprehending Tillard, the officers also discovered approximately 56 small plastic baggies of marijuana in his pocket.
In 2008, Tillard was convicted of a drug charge in Monroe County Court. As a result, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, 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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Project Guardian Update: Two Appear in Federal Court on Gun ChargesRead the Press Release
CHARLESTON, W.Va. -- One man was sentenced and another man pled guilty this week to being felons in possession of a firearm, according to United States Attorney Mike Stuart.
Ronald Lucas, 36, of Craigsville, was sentenced to 48 months in prison. He previously admitted that on May 10, 2019, law enforcement officers with the Nicholas County Sheriff’s Department were serving an arrest warrant at his home in Craigsville for a separate offense. Lucas answered the door wearing an empty nylon holster. When the officers asked where the gun was located, he indicated that it was inside the residence on a bed. When an officer went inside the residence to secure it, a loaded 9 millimeter pistol with a filed off serial number was located and seized. The Nicholas County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Andrew Tessman handled the prosecution.
Akeem R. Dickerson, 28, of Princeton, pled guilty to being a felon in possession of a firearm after admitting that on August 31, 2019, an officer with the Princeton Police Department pulled him over for not wearing his seatbelt while he was driving. During the traffic stop, the officer smelled marijuana. When asked about the marijuana smell, Dickerson admitted that he did in fact have some marijuana in the car and he also admitted that he had a gun. The officer then searched the car with Dickerson’s consent. The officer found a Springfield, model XDS, .45 caliber semi-automatic handgun. Dickerson admitted that he knew he was not supposed to possess any firearms because he was a convicted felon. Dickerson was prohibited from possessing any firearm under federal law because he was previously convicted in 2012 in McDowell County Circuit Court of the felony offenses of voluntary manslaughter and wanton endangerment with a firearm. Dickerson faces up to 10 years in federal prison and a $250,000.00 fine, to be followed by up to three years of supervised release when he is sentenced on September 14, 2020. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners listed above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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Pitt County Man Sentenced for Possessing a Firearm as a FelonRead the Press Release
RALEIGH, N.C. – A Greenville man was sentenced today to 42 months in prison for possessing a firearm as a felon.
According to court documents, Donnie Devon Adams, Jr., 36, was found in possession of a loaded 9mm handgun during the execution of a search warrant at his home. Greenville Police Officers obtained the search warrant as part of an investigation into a domestic violence incident where Adams allegedly fired a handgun at his girlfriend inside his home on October 1, 2019. Adams had previously been convicted of Second Degree Murder in 2004 in Pitt County Superior Court.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, and Firearms and the Greenville Police Department investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-cr-00073-BO-1.
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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
Penn Hills Man Sentenced to 7 Years in Prison for Illegally Possessing Heroin and FirearmsRead the Press Release
PITTSBURGH –A former resident of Allegheny County, PA has been sentenced in federal court to seven years (84 months) of imprisonment on his convictions for federal narcotics and firearms offenses, United States Attorney Scott W. Brady announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Antwon Shamar Bonner, age 21, formerly of Penn Hills, who pleaded guilty in January 2020 to a two-count Indictment charging him with possessing heroin with the intent to distribute it and with possessing firearms in furtherance of that drug trafficking crime.
According to information presented to the Court, on July 12, 2019, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives served a search warrant at Mr. Bonner’s residence in Penn Hills, Allegheny County. There, agents located approximately 36 "bricks" (constituting approximately 1,800 individual dosage units) containing mixtures of both heroin and fentanyl, which are scheduled controlled substances under federal law. In connection with his guilty plea, the defendant admitted to possessing those narcotics with the intent to distribute them. In addition to those narcotics, agents seized approximately $2,000 in U.S. currency, four loaded and operational firearms (one of which had an obliterated serial number), assorted ammunition, and high-capacity firearms magazines. In connection with his January 2020 guilty plea, Mr. Bonner admitted to possessing those firearms in furtherance of drug trafficking.
In imposing the 84-month sentence, Judge Horan noted, amongst many other factors, that the Court considered the seriousness of the offenses and the need to deter Mr. Bonner and others from engaging in criminal conduct involving heroin, fentanyl, and firearms.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Mr. Bonner.
Penn Hills Man Sentenced for Possessing HeroinRead the Press Release
PITTSBURGH, PA - A former resident of Penn Hills, Pennsylvania has been sentenced in federal court to 21 months imprisonment and five years supervised release, with the first three months of supervised release to be served on home detention on his conviction of possession with intent to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nicholas Ranjan imposed the sentence on Joseph McCoullum, 37. .
According to information presented to the Court, in the Spring of 2018, the Western Pennsylvania Opiate Task Force (WPAOTF) was investigating a series of heroin/fentanyl overdoses in the Etna and Shaler areas of Western Pennsylvania. The defendant, Joseph McCoullum, a/k/a "Steele," was identified as a heroin dealer, distributing controlled substances in Penn Hills and Shaler. Through this investigation, law enforcement identified the residence, located at 298 East Pennview Street, as one of McCoullum’s drug distribution locations.
On May 10, 2018, members of the WPAOTF conducted a search at the residence located at 298 East Pennview Street in Pittsburgh. Mr. McCoullum was located inside the residence and law enforcement located, on his person, four bricks of a mixture of mixture of heroin and fentanyl, and two bundles of a cocaine base, in the form commonly known as crack, all of which was packaged for distribution. Additionally, Mr. McCoullum was in possession of two cell phones – a flip phone and a smart phone.
In rendering the sentence, Judge Ranjan noted that a sentence at the high end of the advisory Guidelines Range, with a term of home detention, was necessary to reflect the seriousness of the offense, involving the distribution of heroin and fentanyl, and to provide deterrence to McCoullum as well as others.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Western Pennsylvania Opiate Task Force, led by the Federal Bureau of Investigation, with the assistance of the Etna Borough Police Department, the Hampton Township Police Department, and the Shaler Township Police Department, conducted the investigation leading to the prosecution of this case.
Owner of Business Consulting Firm Admits Orchestrating Multimillion-Dollar Bank Fraud and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man who founded and owned a business consulting firm admitted today to orchestrating a multimillion-dollar bank fraud and securities fraud scheme operated through that firm, U.S. Attorney Craig Carpenito announced.
Edward Espinal, 44, of Wayne, New Jersey, the chief executive officer of Cash Flow Partners LLC (Cash Flow) pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud and one count of securities fraud.
“Edward Espinal coordinated a vast fraud scheme that lured people into taking out fraudulent loans that his company helped obtain and, in many cases, put that borrowed money into sham investments he also controlled,” U.S. Attorney Carpenito said. “His complex scam tricked numerous investors out of a substantial amount of money, and now he will have to pay for his crimes.”
“This defendant is the quintessential con artist,” Acting FBI Special Agent in Charge Douglas Korneski said. “He played a shell game with other people’s hard-earned money, making promises he never intended to keep, and walking away with ill-gotten gains while leaving them high and dry. Fraudsters like Edward Espinal keep the FBI in business, and we work diligently to bring his type to justice.”
According to documents filed in this case and statements made in court:
The Bank Fraud Conspiracy
Espinal was the founder and chief executive officer of Cash Flow and controlled the company’s operations. From March 2016 through December 2019, Espinal led and directed a bank fraud conspiracy designed to obtain millions of dollars in loans from banks on the basis of false representations. To attract customers, Cash Flow released internet advertisements and held seminars offering to assist customers with low-paying salaries in obtaining loans. These advertisements included promotional videos featuring Espinal and a former telenovela actor. Customers contacted Cash Flow and were routed to the company’s sales department.
Employees in the sales department then encouraged customers to sign up for various loan programs that Cash Flow provided and to enter into contracts with Cash Flow. Under those contracts, employees would help customers obtain loans from banks. The Cash Flow contracts permitted customers to keep a portion of the loan proceeds and customers agreed to provide the remaining percentage of the proceeds to Cash Flow. Cash Flow agreed to pay off the loans on behalf of its customers.
Cash Flow then used false information and fraudulent documents to obtain loans for its customers for which they otherwise would not have qualified, and posed as the customers in communications with the banks.
The Securities Fraud
From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors on the basis of false and fraudulent pretenses and representations.
Espinal solicited investments from prospective customers using a marketing campaign on Spanish language television channels and the internet, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere. Espinal also solicited investments from individuals who obtained loans through Cash Flow’s bank fraud conspiracy, encouraging loan customers to invest loan proceeds in Cash Flow’s investment program. Once investors agreed to invest in Cash Flow, Espinal issued “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent. The promissory notes stated that Cash Flow would return investors’ principal either one year from the date of the promissory note, or 60 days after investors demanded payment. Espinal and other Cash Flow employees signed the promissory notes on behalf of Cash Flow.
Espinal made a number of misrepresentations to investors. He told investors that he would pool their funds with the funds of other investors in investments related to real estate, real estate companies, a gold mine in Ecuador, and construction projects in countries outside of the United States. In reality, Espinal used investor funds to pay returns to earlier investors, to pay for personal expenses for himself, his family, and another Cash Flow employee, to perpetuate the bank fraud scheme, and to market the bank fraud and investment scheme to future victims. Espinal falsely claimed that Cash Flow’s purported real estate fund, Cash Flow Capital, was “licensed” by the Securities and Exchange Commission. He guaranteed monthly returns on investment based on the purported proceeds from the sale of properties in Cash Flow’s investment portfolio. In reality, Espinal did not sell Cash Flow properties, so no profits were derived from the sale of Cash Flow properties.
Two other individuals, Raymundo Torres and Jennie Frias, have previously pleaded guilty to their roles in the Cash Flow bank fraud conspiracy and are awaiting sentencing.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Oct. 13, 2020.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
The U.S. Securities and Exchange Commission (SEC) has filed a civil complaint against Espinal based on the allegations underlying the securities fraud charge.
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and J. Stephen Ferketic of the U.S. Attorney’s Criminal Division in Newark.
Officer of China’s People’s Liberation Army Arrested at Los Angeles International AirportRead the Press Release
SAN FRANCISCO – Xin Wang, a scientific researcher and officer with the People’s Republic of China’s (PRC) People’s Liberation Army (PLA), was arrested at Los Angeles International Airport (LAX) while attempting to depart the United States for Tianjin, China, and was charged with visa fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to court documents filed today and a complaint which was unsealed on Monday, Wang entered the United States on March 26, 2019, after receiving a multiple entry J1 non-immigrant visa in December of 2018. Wang’s visa application stated that the purpose of his visit was to conduct scientific research at the University of California, San Francisco (UCSF). Wang is alleged to have made fraudulent statements on this visa application. Specifically, in his visa application, Wang stated that he had served as an Associate Professor in Medicine in the PLA, from September 1, 2002 through September 1, 2016.
In reality, when interviewed by officers of Customs and Border Protection (CBP) at LAX on June 7, 2020, Wang provided information that he was, in fact, still currently a “Level 9” technician in the PLA, employed by a military university lab. CBP officers also obtained information that this roughly corresponded with the level of Major, and that Wang had received compensation from the PLA and the China Scholarship Council—in addition to compensation from UCSF—while in the United States. According to court documents, Wang was still employed by the PLA while he was studying in the United States and he made false statements about his military service in his visa application in order to increase the likelihood that he would receive his J1 visa.
Also according to court documents, Wang provided information to CBP that he had been instructed by his supervisor, the director of his military university lab in the PRC, to observe the layout of the UCSF lab and bring back information on how to replicate it in China. CBP received information that Wang had studies from UCSF with him which he was taking to share with his PLA colleagues, and he had sent research to his lab in China via email. Wang similarly told his supervising UCSF professor that he had duplicated some of the work of that professor at the lab in China. Some of the work of the UCSF lab was funded by grants from the United States Department of Health and Human Services, National Institutes of Health (NIH). Wang also wiped his personal phone of WeChat messaging content earlier the morning he arrived at LAX.
Wang is charged with visa fraud, in violation of 18 U.S.C. § 1546(a). If convicted, he faces a maximum statutory penalty of ten years in prison and a fine of $250,000.
Wang made his initial appearance on Monday, June 8, 2020, in the Central District of California before Magistrate Judge Jacqueline Chooljian, and was detained for further proceedings. His next appearance is scheduled for Friday, June 12, 2020, at 10 a.m., before Judge Chooljian, for a detention hearing.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The case is being investigated by the FBI.
North Side Man Sentenced to More than 4 Years in Prison for Possessing Heroin and Crack near a Public Housing DevelopmentRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 50 months imprisonment and six years supervised release on his conviction of possession with intent to distribute heroin within 1000 feet of Allegheny Commons, a Pittsburgh Public Housing Authority development, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on William Thomas, 38, formerly of Pittsburgh's North Side.
According to information presented to the Court, on June 9, 2018, at approximately 3:20 am, a City of Pittsburgh police officer noticed a vehicle parked along the side of the road with engine running in the area of Belleau Drive and Belleau Street in North Side Pittsburgh. As the officer approached the vehicle to check on the occupants, the officer smelled marijuana emanating from the vehicle and observed a marijuana cigar in the ashtray of the center console of the vehicle. The two individuals in the vehicle appeared to be unconscious and were initially unresponsive to the officer calling out to them and knocking on the window. After the occupants awakened and exited the vehicle, officers located three unopened, paper-wrapped bricks of heroin on Thomas’ person as well as a quantity of cocaine base, commonly referred to as crack. Officers searched the vehicle and located, in the center console, a stolen Smith and Wesson .40 caliber pistol with a loaded magazine and one bullet in the chamber. Thomas also had $169 as well as a cell phone, which contained drug trafficking communications with several of Thomas’ drug customers, including communications wherein he instructed drug customers to meet him at Belleau Drive.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Bureau of Alcohol Tobacco Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Thomas.
North Carolina Man Admits Heroin Distribution and Firearms OffensesRead the Press Release
TRENTON, N.J. – A Raleigh, North Carolina, man with ties to Trenton admitted today to distributing heroin and unlawfully possessing a firearm as a convicted felon, U.S. Attorney Craig Carpenito announced.
Dennis Cheston Jr., a/k/a “Beans,” 39, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to a third superseding indictment that charged him with distribution and possession with intent to distribute heroin (Count Five) and unlawful possession of a firearm by a convicted felon (Count Nine).
In October 2018, Cheston and 26 other members identified as having participated in a large drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Cheston and others also were charged with additional firearms offenses. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging Cheston and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Of the 26 defendants charged in the original criminal complaint, Cheston is the 23rd defendant to plead guilty. The charges in the third superseding indictment and the criminal complaint are currently pending against the three remaining defendants, and they are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
From October 2017 to October 2018, law enforcement officers conducted an investigation of a large narcotics conspiracy that operated in Trenton and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.”
Telephone and text message communications intercepted pursuant to the wiretap orders also revealed that, on multiple occasions during the investigation, Cheston – a convicted felon who has ties to Trenton – traveled from North Carolina to Trenton and obtained quantities of heroin from Taylor, which Taylor had obtained from Antonio. During one intercepted telephone call between Taylor and Cheston, Cheston advised Taylor that the heroin bearing an ink stamp that read “Top Secret,” was high quality, and that his customers liked it. During the course of these drug transactions and additional intercepted communications between Taylor and Cheston, Cheston also agreed to travel from North Carolina to Trenton and supply Taylor with multiple firearms in exchange for future supplies of heroin. On Sept. 8, 2018, based on the intercepted communications and other evidence obtained during the investigation, law enforcement tracked Cheston’s travel from North Carolina to Trenton, where he was arrested upon his arrival as he exited the Trenton Transit Center. During a subsequent search of Cheston’s backpack, law enforcement recovered a nine-millimeter Smith & Wesson handgun, which Cheston had agreed to provide to Taylor.
The drug distribution count to which Cheston pleaded guilty carries a statutory maximum term of imprisonment of 20 years and a maximum fine of $1 million. The felon-in-possession count to which Cheston pleaded guilty carries a statutory maximum term of imprisonment of 10 years and a maximum fine of $250,000. Cheston’s sentencing is scheduled for Oct. 21, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Acting Special Agent in Charge Douglas Korneski; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty plea. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Nineteen Individuals Indicted in $41 Million Illegal Opioid Distribution ConspiracyRead the Press Release
An indictment was unsealed today charging nineteen individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Matthew Schneider announced today.
U.S. Attorney Schneider was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation and Special Agent in Charge Lamont Pugh, the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
The 44-count indictment charges defendants with an alleged drug conspiracy involving prescription drug controlled substances including Oxycodone, Oxymorphone, Oxycodone-Acetaminophen (Percocet), Hydrocodone, Hydrocodone-Acetaminophen, promethazine with codeine cough syrup, and other drugs.
Charged in the indictment are:
John Henry Rankin, III, 46, Detroit,
Dr. Beth Carter, 56, Southfield,
Dr. Robert Kenewell, 52, Auburn Hills,
Dr. Jason Brunt, 50, Clawson,
Dr. John Swan, 30, St. Clair Shores,
Nurse Practitioner, Jean Pinkard, 63, Farmington Hills
Nurse Practitioner Toni Green, 58, St. Clair Shores,
Fitzgerald Hudson, 60, Southfield,
Virendra Gaidhane, 49, Troy
Pharmacist, Maksudali Saiyad, 65, Troy
Pharmacist Adeniyi Adepoju, 61, Warren,
Pharmacist Ali Sabbagh, 36, Dearborn Heights
Robert King, 38, Taylor,
Jermaine Hamblin, 36, Roseville,
Sonya Mitchell, 50, Southfield,
Lavar Carter, 56, Southfield,
Robert Lee Dower, Jr., 49, Eastpointe
Denise Sailes, 51, Detroit, and
Dewayne Bason, 28, Detroit
The indictment alleges that from September 2017 through June 2020, John Henry Rankin, III, owner of New Vision Rehab and Preferred Rehab clinics would provide monetary remuneration and other illegal benefits to Dr. Beth Carter, Dr. Robert Kenewell, Dr. Jason Brunt, Dr. John Swan, Nurse Practitioner Jean Pinkard and Nurse Practitioner Toni Green to induce them to write prescriptions for “fake” patients, who did not have a legitimate medical need for the drugs. Rankin also allegedly provided monetary remuneration to an unlicensed medical professional, who was not legally authorized to prescribe controlled substances or practice as doctor, who would pose as a doctor and issue pre-signed controlled substance prescriptions in the names of other providers.
It is alleged that the medical professionals named in the indictment prescribed more than 1,951,148 dosage units of Schedule II controlled substances. The prescribed Oxycodone and Oxymorphone, alone, carried a conservative street value of more than $41 million. Oxycodone and Oxymorphone are two of the most addictive opioids and they have high street value. Patients were recruited into the conspiracy by patient recruiters or “marketers,” to include Robert King and Jermaine Hamblin.
The indictment further alleges that during this conspiracy, prescriptions were presented to Detroit New Hope Pharmacy (owner Virendra Gaidhane, pharmacist Maksudali Saiyad, pharmacy tech Dewayne Bason), Synergy Pharmacy (pharmacy technician Dewayne Bason), Nottingham Pharmacy (owner Virendra Gaidhane), Crownz Medical Pharmacy (pharmacist Adeniyi Adepoju), Franklin Healthmart (pharmacist Ali Sabbagh). Some of the pharmacists would bill insurers, including Medicare, Medicaid, and private insurers, for dispensing the medications, despite the fact that the medications were medically unnecessary. Other times, the pharmacists accepted cash from the recruiters for filling and dispensing medications.
According to the indictment, the pharmacies dispensed more than 58,725 dosage units of Schedule II controlled substances prescribed by the medical professionals listed in the indictment.
“Prescription drugs are supposed to go to people who truly need them, not to fake patients or people selling drugs on the streets,” United States Attorney Matthew Schneider said. “We are focusing on charging doctors, pharmacists, and the networks that add to the opioid crisis, and this case is unfortunately yet another example of the serious problem facing Michigan.”
Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division, stated, “These enforcement actions and others like them around the country, demonstrate our commitment to prosecuting licensed professionals who flood communities with addictive legal drugs for their own personal benefit”
“Today’s indictments are the result of healthcare professionals allegedly contributing to the devastating opioid crisis instead of working toward its solution. The public expects and deserves more from them,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan.
“The opioid epidemic continues to have a harmful impact on many people across this country”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Medical professionals who choose to participate in schemes as alleged in this indictment only exacerbate the problem. The OIG will continue to dedicate and prioritize resources to the investigation of allegations of this nature in an effort to ensure the health and safety of patients and taxpayer dollars.”
This case is being prosecuted by Assistant United States Attorneys Brandy R. McMillion and Mitra Jafary-Hariri. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative created by Attorney General Sessions, that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
The case was investigated by special agents and task force officers of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Department of Health and Human Services, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Montgomery Woman Receives 15-Month Sentence after Stealing Approximately $250,000 from Retired Educators AssociationRead the Press Release
Montgomery, Alabama – On Tuesday, June 9, 2020, a Montgomery, Alabama resident, Vicki Lott Rohan, 56, received a 15-month sentence for committing wire fraud, announced United States Attorney Louis V. Franklin, Sr. and FBI Special Agent in Charge James Jewell. The sentence and conviction were the results of Rohan embezzling, over a seven-year period, approximately $250,000.00 from her then-employer, the Alabama Education Retirees Association (AERA).
According to court documents, the AERA is a lobbying and political action organization based in Montgomery, Alabama. Its mission is to advocate for the interests of retired public educators and it receives funding through dues paid by its members.
For many years, Rohan worked for the AERA as its bookkeeper. In that position, she had access to an organization credit card and the ability to write checks in the name of the association’s director. Rohan used the AERA credit card and checkbook to spend money on personal expenses until the AERA uncovered the activity in 2018. The investigation that followed revealed that Rohan had illegally spent roughly $250,000.00 of the AERA’s money on herself.
At the sentencing hearing, both the former and current directors of the AERA addressed the court. Former director Janice Charlesworth said, “Dues of $35 per retiree may seem like an inconsequential amount to some. For retirees on a fixed income who have not received cost of living increases in their benefits for over ten years, the sacrifices to pay their dues were significant to them. The amount embezzled [amounted to] over a quarter of the annual budget to AERA, and it should not be taken lightly. Retirees put their trust in AERA and Ms. Rohan violated that trust.” The current director Jill Jackson said, “[Rohan] stole from an association who receives dues money from senior citizens living on fixed incomes.” Jackson also noted that Rohan “knew of these people and the condition of their limited finances.”
“The retired educators of Alabama counted on Ms. Rohan and the other employees of the AERA to advocate on their behalf,” stated United States Attorney Franklin. “Ms. Rohan’s actions limited the AERA’s ability to perform its critical mission and risked harming the interests of all of the organization’s dues-paying members. The sentence imposed in this case is a reflection of the simple fact that taking what does not belong to you is a crime and it will be punished.”
“The men and women of the FBI will continue to work tirelessly to bring justice to the victims of fraud and theft,” said FBI Special Agent in Charge James Jewell. “This sentence sends a clear message to those in trustworthy positions, theft will not be tolerated.”
The Federal Bureau of Investigation investigated this case. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour prosecuted the case.
Montgomery County Man Sentenced to 30 Months for Bank Fraud & Aggravated Identity TheftRead the Press Release
LEXINGTON, Ky. - Steven Ray Williams, 58, of Hope, Kentucky, was sentenced to 30 months in federal prison on Thursday, by U.S. District Court Judge Karen K. Caldwell, after previously pleading guilty to bank fraud and aggravated identity theft, involving fraudulent representations to a financial institution.
Beginning in 1999 Williams borrowed a series of loans from the Farm Services Agency (FSA), a division of the U.S. Department of Agriculture. As pledged collateral for the loans, Williams listed farm equipment, cattle and other livestock. In April 2012, Williams failed to make his loan payment to the FSA and declared bankruptcy the following month.
According to the plea agreement, from March 2012 through June 2015, Williams regularly sold off cattle at various stockyards in central Kentucky. Because the cattle had been pledged as collateral, though, Williams sold the cattle in the name of other people. Upon receiving payment for the cattle, in the form of a check, Williams forged the signature of the person it was made out to, and then added his own signature, enabling him to deposit the funds into his own bank account. Because he was in default on his FSA loans, Williams’ actions brought him financial gain and deprived the FSA of any chance at recovering proceeds from the livestock that was collateral.
Williams pleaded guilty in January 2020.
Under federal law, Williams must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Jason M. Williams, Special Agent in Charge for USDA OIG, jointly announced the sentencing.
The investigation was conducted by the U.S. Department of Agriculture. The United States was represented by Assistant U.S. Attorney William Moynahan.
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Montgomery County Man Pleads Guilty to Nearly $2.8 Million Embezzlement Scheme Against Lancaster CompanyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Steven J. Russo, 43, of Pennsburg, PA, pleaded guilty today to wire fraud and filing false tax returns before United States District Court Judge Jeffrey L. Schmehl. The charges arose from Russo’s embezzlement of $2.79 million from his former employer, a company in Lancaster, PA, for which he served as the Director of Information Technology from November 2013 until October 2018.
Russo used his access to his former employer’s lines of credit and credit cards to make unearned payments to companies owned and controlled by him, and to purchase items that he kept for his personal use or sold for his personal gain. He also caused his former employer to issue checks to the companies he owned and controlled, and to make payments via PayPal to an account he controlled. Russo reported his taxable income for 2017 as only $18,579, when in reality his taxable income was nearly $1 million.
“The U.S. Attorney’s Office takes offenses like embezzlement and tax fraud very seriously,” said U.S. Attorney McSwain. “Russo stole millions by abusing his trusted position with his former employer. My Office will continue to work with our law enforcement partners to protect innocent businesses and taxpayers from being victimized by this type of fraud.”
“Not only did Mr. Russo steal millions of dollars from his employer, he also stole from the government and the American people when he decided to shirk his tax obligations,” said IRS-Criminal Investigations Special Agent in Charge Thomas Fattorusso. “His admission of guilt today underscores our commitment to protecting the integrity of the tax system by ensuring that everyone pays their fair share of taxes.”
Russo faces up to twenty-three years in prison, as well as restitution, fines, supervised release, and special assessments.
This case was investigated by IRS-Criminal Investigations, and is being prosecuted by Assistant United States Attorney Bea Witzleben.
Milo Woman Sentenced for SNAP Fraud, Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Milo, Missouri, woman has been sentenced in federal court for her role in a conspiracy to sell methamphetamine in exchange for Supplemental Nutrition Assistance Program (SNAP) benefits (commonly known as “food stamps”).
Melanie A. Person, 54, was sentenced by M. Douglas Harpool on Wednesday, June 10, to six years in federal prison without parole.
On Oct. 1, 2019, Person pleaded guilty to one count of conspiracy to commit wire fraud, one count of possessing methamphetamine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Person admitted she and co-defendant Bobby G. Johnson, Jr., 54, of El Dorado Springs, Missouri, conspired to accept SNAP benefits in the form of electronic benefit transfer (EBT) cards and personal identification numbers (PIN) in exchange for methamphetamine. Johnson was sentenced on March 10, 2020, to 12 years in federal prison without parole after pleading guilty to the same charges.
Vernon County sheriff’s deputies executed a search warrant at Person’s residence on Aug. 7, 2018. In one bedroom, deputies found a Hi Point 9mm pistol in the top drawer of a dresser, 17 bags of methamphetamine in the bottom drawer of a dresser, a Wards Westernfield .22-caliber rifle in bedroom closet, and a clear bag that contained methamphetamine in the top drawer of another dresser. In another bedroom, deputies found a Savage Arms .220-caliber rifle and a box that contained approximately 750 rounds of ammunition. Deputies seized a total of 16.65 grams of methamphetamine from the residence.
Deputies also seized four SNAP EBT cards that were found in Person’s purse, which were issued to Johnson and three other persons. There were also receipts in Person’s purse from transactions completed using two additional SNAP EBT cards. Many of the transactions conducted with those SNAP EBT cards were at Walmart stores in Missouri, including the Walmart stores in Nevada and Raymore. Three of the individuals to whom those EBT cards were issued admitted that they exchanged their EBT cards and PINs for methamphetamine from Person.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Byron H. Black. It was investigated by the U.S. Department of Agriculture, Office of Inspector General; the Vernon County, Mo., Sheriff’s Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mexican Citizen Pleads Guilty to Re-Entry Charge, Sentenced to 20 Months in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Vargas-Arriga, 41, a citizen of Mexico, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to re-entry of a previously removed alien and was sentenced to serve 20 months in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that on June 16, 2019, Brockport Police Officers encountered the defendant while responding to a domestic call. U.S. Border Patrol Agents were then called to the residence. Vargas-Arriaga stated he was a citizen of Mexico and did not have documents that would allow him to be or remain in the United States legally. The defendant was subsequently charged by the Brockport Police Department with various offenses related to the domestic incident. In November 2019, further investigation determined that Vargas-Arriaga has no valid immigration status, has five previous criminal convictions, and was removed from the United States on five previous occasions.
The plea and sentencing are the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Eduardo Payan, and the Brockport Police Department, under the direction of Chief Mark Cuzzupoli.
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Memphis Man Sentenced to over 10 Years for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
MEMPHIS, TN –Marcus Christian, 33, has been sentenced to 130 months imprisonment for possession of a firearm in furtherance of a drug trafficking crime. U.S. Attorney D. Michael Dunavant announced the sentencing today.
According to information presented in court, law enforcement received and developed information about a subject who works for a local Pizza Hut and sells marijuana and Percocet in Cordova. On December 3, 2018, law enforcement arranged an undercover buy at which time they observed Christian selling drugs to both the undercover law enforcement and several other individuals.
On December 5, 2018, Shelby County Sheriff’s deputies executed and served a search warrant at Christian’s residence and found a loaded stolen Sig Sauer .40 caliber pistol along with 9mm cartridges, marijuana, Suboxone strips and 98 Percocet pills. A small amount of marijuana was found in a satchel in the bedroom, for a total of 41 grams of marijuana and $6,672 in U.S. currency seized. The defendant gave a recorded statement to law enforcement admitting to being a drug dealer and owning the evidence collected from the house, including the firearm, ammunition, and controlled substances.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted an interstate nexus search on the .40 caliber Sig Sauer pistol and verified that the firearm was manufactured outside of the State of Tennessee, and therefore traveled in and affected interstate commerce. Prior to the December 5, 2018 arrest, the defendant had been convicted of multiple felony offenses and was therefore prohibited by federal law from possession of a firearm or ammunition.
On June 11, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Christian to 130 months imprisonment followed by 3 years supervised release.
U.S. Attorney D, Michael Dunavant said, "This defendant has a long criminal history of felony drug convictions, and was on felony probation when he was found in possession of a firearm in furtherance of drug trafficking. Mr. Christian has devoted his adult life to a career of repeated criminal conduct, and that prior history has finally caught up with him. This sentence removing him from the community for more than 10 years is well-deserved, and will make Memphis and West Tennessee a safer place."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Shelby County Sheriff’s Office, and the Project Safe Neighborhoods (PSN) Task Force. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney Neal Oldham prosecuted this case on behalf of the government.
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Man from Santa Fe charged with stealing guns, vehicle and other government property in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Derek Padilla, 29, of Santa Fe, New Mexico appeared in federal court on June 10 on a criminal complaint charging him with theft of government property in Indian Country. A U.S. magistrate judge conducted a detention hearing and ordered him to remain in custody pending trial.
According to the criminal complaint, Padilla allegedly committed the offense in Santa Fe County on Nambe Pueblo. Sometime in May 2020, Padilla allegedly entered a Bureau of Indian Affairs storage compound and stole government property, including a government vehicle and firearms.
The Bureau of Indian Affairs arrested Padilla on June 4, 2020. He faces up to ten years in prison if convicted. Complaints are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Bureau of Indian Affairs is investigating this case with assistance from New Mexico State Police, Santa Fe County Sheriff’s Office, Pojoaque Police Department, and Federal Protective Service. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Man from Porcupine Sentenced to Two Years in Prison for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man convicted of Abusive Sexual Contact was sentenced by Jeffrey L. Viken, U.S. District Judge.
Julian Tail, age 22, was sentenced on June 5, 2020, to 2 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Tail was indicted by a federal grand jury in January 2019. The charge related to Tail engaging in sexual intercourse with a juvenile female over the course of a weekend in September 2018.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Tail was immediately turned over to the custody of the U.S. Marshals Service.
Man Sentenced to Federal Prison for Attempting to Smuggle over $879,000 in U.S. Currency to MexicoRead the Press Release
In San Antonio today, a federal judge sentenced 22-year-old Juan Pablo Hoyos Avila, a Mexican national residing in San Antonio, to five years in federal prison for attempting to smuggle more than $879,000 in alleged drug proceeds to Mexico, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, U.S. District Judge Fred Biery also ordered that Hoyos Avila be placed on supervised release for a period of three years after completing his prison term. Judge Biery previously ordered the forfeiture of seized funds to the government.
On March 17, 2020, Hoyos Avila pleaded guilty to one count of conspiracy to commit money laundering. According to court records, on July 16, 2018, Hoyos Avila and Rafael Gabriel Martinez Leal, a 22-year-old citizen of Mexico, were on a private plane at San Antonio International Airport bound for Mexico with $879,695 in undeclared U.S. Currency. Inside the plane, authorities located the money inside a suitcase and inside cardboard packaging for an 18” box fan. Authorities arrested Hoyos Avila and Martinez Leal. Both defendants have remained in federal custody since their arrest.
On May 7, 2020, Judge Biery sentenced Martinez Leal to 70 months in federal prison. Martinez Leal pleaded guilty on August 24, 2019, to one count of conspiracy to commit money laundering. By pleading guilty, Martinez Leal admitted that beginning in 2017, he coordinated the movement of money throughout the U.S. to San Antonio. On several occasions in 2018, Martinez Leal collected cash from Hoyos Avila before flying it back to Mexico using private aircraft.
“This sentence represents the seriousness of these crimes and serves as an appropriate punishment for Juan Pablo Hoyos Avila. The smuggling of bulk cash often contributes to the cartel violence that damages communities on both sides of the border. HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation,” stated HSI Special Agent in Charge Folden.
Agents from HSI and the U.S. Customs and Border Protection investigated this case. Assistant U.S. Attorneys Adrian Rosales, Antonio Franco, Jr. and Mary Nelda Valadez prosecuted this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Man Receives Maximum Sentence for DDoS Attack on Legal News AggregatorRead the Press Release
An Iranian-born, U.S. naturalized 40-year-old man who launched multiple international cyber-attacks on media, bloggers, and legal news aggregation websites was sentenced on Monday to five years in federal prison and ordered to pay more than $520,000 in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The defendant, born Kamyar Jahanrakhshan, changed his name to Andrew Rakhshan when naturalized as a US citizen. Mr. Rakhshan pleaded guilty in February 2020 to conspiracy to commit computer fraud. The sentencing judge, U.S. District Judge David C. Godbey, accepted the plea agreement which statutorily limited the defendant’s maximum sentence to 60 month incarceration.
According to plea papers, Mr. Rakhshan admitted to conspiring with others to launch a DDoS (distributed denial of service) attack in January 2015 on Leagle.com, a legal aggregation site that had posted publicly available information about his prior criminal conviction in Canada. Leagle.com’s website was hosted by a provider located in Dallas, Texas.
Upon his arrest in July 2017, at his residence in a suburb of Seattle, Washington, Mr. Rakhshan was detained pending the outcome of the case.
At his original trial in March 2018, a federal jury voted to convict Mr. Rakhshan of knowingly causing the transmission of a command to a protected computer, an offense that carried a 10 year maximum prison term. However, in July 2018, Judge Godbey granted a defense motion for a new trial based on the defense attorneys’ sworn admissions that they were ineffective in representing their client at trial. In April 2019, the government superseded the original indictment, adding the conspiracy charge. Mr. Rakhshan elected to plead guilty to the conspiracy charge on the morning his re-trial was to begin. He received the statutory maximum sentence for his guilty plea, although the Judge implied that the sentence would have been higher had there not been a statutory maximum.
Testimony and evidence from the trial established that when attacking each victim, Mr. Rakhshan followed the same pattern. First he would contact the targeted site and request that the site remove any publically available information about his 2013 criminal conviction in Canada. Mr. Rakhshan initially claimed that the similarity of his name to the convicted person’s name was ruining his life. When the websites refused to remove the data, Mr. Rakhshan first offered bribes to compel their compliance, then escalated his conduct through emails and faxes, by threatening to attack the site or associated sites. In some instances, Mr. Rakhshan threatened to call in bomb threats. Often, after initiating a successful DDoS attack, Mr. Rakhshan would contact the victim, admit to being the convicted person, brag about the successful attack, and threaten additional attacks.
Mr. Rakhshan purchased services from various booter services, such as ItsFluffy and RageBooter, to deploy the DDoS attack. The services offered by Rakhshan’s coconspirators allowed Mr. Rakhshan to flood the websites with traffic, overwhelming the servers and disabling the sites. Mr. Rakhshan initiated multiple DDoS attacks against each victim, and most victims removed the data to stop the attacks.
At the sentencing hearing, the Judge also found that Mr. Rakhshan had obstructed justice by perjuring himself during a hearing in 2017. Mr. Rakhshan lied about possessing 10 email addresses he used to facilitate the offense. Mr. Rakhshan also lied about illegally returning to Canada after having been deported. Mr. Rakhshan committed offense from at least December 2014 through at least August 2015 while residing in various states in the United States and in Vancouver, Canada.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Toronto Police Service and the Australian Federal Police.
Luzerne County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adam Holcomb, age 36, of Shickshinny, Pennsylvania, pleaded guilty on June 9, 2020, before U.S. District Court Judge Robert D. Mariani, to conspiracy to distribute more than 500 grams of methamphetamine.
According to United States Attorney David J. Freed, Holcomb admitted to participating in a conspiracy to distribute between 500 grams and 1.5 kilograms of crystal methamphetamine in the Luzerne County area between January 2017 and December 2018. Holcomb was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Luzerne, Lackawanna and Schuylkill Counties.
Judge Mariani ordered that a presentence report be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum penalty of ten years in prison under federal law. The maximum penalty for the charge is up to life in prison, a term of supervised release following imprisonment, and a $10,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local pastor pleads guilty to coercion and enticement involving a minor parishionerRead the Press Release
CINCINNATI – The pastor of a Sharonville church pleaded guilty via video conference in U.S. District Court today to coercion and enticement for sexually coercing a minor female member of the church.
Cesar Agusto Guerrero, Jr., 42, of Liberty Township, admitted to engaging in sexual acts with a 17-year-old victim on July 20, 2019 and August 5, 2019 at his office at the Mision Cristiana el Calvario Church.
Court documents detail that Guerrero told the victim God was speaking to him and the only way to get out of the dark place was for the victim to have sexual relations with Guerrero. The pastor referred to this as a “cleansing process.”
According to the plea agreement, Guerrero communicated with the victim via text messages, audio and video calls on Facebook Messenger. He coerced the victim into sending him sexually explicit photos and engaging in a sexually explicit video call. Guerrero cited several biblical verses while making the requests.
The parties involved in his case have recommended a sentence of 10 years 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; and Sharonville Police Chief Steve Vanover announced the plea entered into today before U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Lexington Woman Sentenced to 12 Months for Making Fake Bomb Threats to 911 Emergency Response CenterRead the Press Release
LEXINGTON, Ky. – A Lexington woman, Crystal Brotherton, 32, was sentenced on Thursday, to 12 months and 1 day in federal prison, by U.S. District Judge Karen Caldwell, after previously admitting to intimidating individuals by making threats involving explosives and the destruction of buildings.
Brotherton admitted to calling Lexington’s 911 system and telling the operator there were bombs at multiple business at an intersection off of New Circle Road. She admitted to demanding the businesses be evacuated in 15 minutes or “everyone will die.” According to her plea agreement, Brotherton made three calls to 911, on June 20 and 21, 2019, all involving similar threats of death and destruction.
Under federal law, Brotherton must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentencing.
The investigation was conducted by the FBI and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney William Moynahan.
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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Leader of Coffee County Drug Trafficking Organization SentencedRead the Press Release
Montgomery, Alabama – On June 9, 2020, Bryant Dewayne Pouncy, a 47 year old resident of Enterprise, Alabama, was sentenced to serve 360 months in prison for conspiracy to distribute methamphetamine, distribution of methamphetamine, conspiracy to maintain a drug-involved premises, maintaining a drug “stash house,” and being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. and FBI Special Agent in Charge James Jewell. Following his 30-year prison sentence, Pouncy will be on supervised release for ten years.
The investigation began in July 2016 after the FBI shifted its focus from another drug organization operating in Houston County. Through the authorized interception of telephone calls and text messages, controlled purchases of methamphetamine, the use of confidential sources of information, and other investigative means, law enforcement learned that Bryant Pouncy was in a leadership role in the conspiracy, using his co-defendants—some of them family members—to assist in carrying out his drug trafficking business. Evidence gathered during the investigation indicates the organization was responsible for obtaining wholesale amounts of methamphetamine for distribution in South Alabama and the Florida Panhandle.
According to the superseding indictment, the drug conspiracy continued until sometime in January 2018. It is difficult to know precisely how much methamphetamine the organization was responsible for distributing during its operation. However, during the sentencing hearing, law enforcement testified that at least 12 kilograms could be linked to it from March to October of 2017, with Pouncy being directly responsible for acquiring five kilos.
The federal guidelines called for a significant sentence in this case due to a number of factors, including the offense level of the drug charges, Pouncy’s prior criminal history, and his leadership role in the drug trafficking organization. The sentencing judge determined that Pouncy was responsible for directing the business affairs of the organization, giving orders to co-conspirators, and recruiting members to assist with operations, including his sister. In addition, his sentence was enhanced because of the purity of the methamphetamine that he and his co-defendants were distributing. Lab reports indicate that much of the methamphetamine tested was 97 to 98 per cent pure. This more potent form of methamphetamine is often called “ice” and resulted in a substantial enhancement being applied to his sentence.
The following eight other members of the organization were previously sentenced:
- Antonio Tyrell Pouncey— 41 year old from Enterprise, Alabama. On January 14, 2020, he was sentenced to 210 months’ imprisonment, to be followed by ten years of supervised release for conspiracy to distribute methamphetamine;
- Ervin Gene Bradham— 56 year old from Enterprise, Alabama. On July 24, 2019, he was sentenced to 151 months’ imprisonment, to be followed by three years of supervised release for conspiracy to maintain a drug-involved premises and for his active role in running a “stash house” used to sell methamphetamine and marijuana;
- Santos Rivera-Fernandez— 39 year old from Atlanta, Georgia. On July 16, 2019, he was sentenced to 116 months’ imprisonment, to be followed by five years of supervised release for conspiracy to distribute methamphetamine;
- Lynn Renfroe Donaldson— 53 year old from Enterprise, Alabama. On July 11, 2019, she was sentenced to 27 months’ imprisonment, to be followed by three years of supervised release for conspiracy to distribute methamphetamine;
- Rogelio Israel Pimentel — 23 year old residing in Rex, Georgia at the time of his arrest. On July 10, 2019, he was sentenced to 110 months’ imprisonment for conspiracy to distribute methamphetamine. Upon completion of his prison term, he will be remanded to the custody of the Bureau of Immigration and Customs Enforcement for deportation proceedings in accordance with the Immigration and Nationality Act;
- Kimberly Christina Pouncy— 30 year old from Enterprise, Alabama. On July 10, 2019, she was sentenced to 30 months’ imprisonment, to be followed by three years of supervised release for conspiracy to distribute methamphetamine;
- Dennis Reinaldo Peralta— 39 year old from Lawrenceville, Georgia. On June 26, 2019, he was sentenced to 151 months’ imprisonment, to be followed by five years of supervised release for conspiracy to distribute methamphetamine.
- Charles Earl Pouncy— 73 year old from Enterprise, Alabama. On May 29, 2019, he was sentenced to three years of probation for being a felon in possession of a firearm.
All defendants except Dennis Peralta pleaded guilty to the charges. Peralta was convicted after a trial that concluded on March 28, 2019. An additional member of the organization was initially charged as well. However, his whereabouts are unknown.
“Methamphetamine continues to be the number one drug threat in Alabama and is often linked to numerous property crimes, violent crimes, and deaths each year,” stated U.S. Attorney Franklin. “Due to its purity, the meth, or “ice,” that was being imported in this case, was even more dangerous and addictive. Make no mistake, this organization was bringing in a deadly drug and spreading it through our communities. The significant sentences handed down by the court illustrate the serious threat that the drugs represent, and they also show what can be accomplished when federal, state and local law enforcement work together.”
“This case, and its successful result, is a prime example of how the FBI continues to work with its state, local, and federal partners to stop this poison from reaching our streets,” stated FBI Special Agent in Charge James Jewell. “This is proof that all investigative methods will be used to keep our communities safe.”
These cases were investigated by the Federal Bureau of Investigation (FBI), the Enterprise Police Department, the Dothan Police Department, the Ozark Police Department, the Houston County Sheriff’s Office, the Coffee County Sheriff’s Office, and the Alabama Law Enforcement Agency (ALEA), with assistance from the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), the United States Marshals Service, the Georgia State Police, the Clayton County, Georgia Sheriff’s Office, and the Washington County, Florida Sheriff’s Office. Assistant United States Attorneys Curtis Ivy, Bradley Bodiford, Brett Talley, and Randolph Neeley prosecuted the cases.
Lawrence Man Sentenced to 60 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Nathanael Peguero, 27, of Lawrence, Massachusetts was sentenced to 60 months in federal prison for participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between November and December of 2016, an undercover DEA Task Force Officer from New Hampshire made arrangements with Peguero to purchase fentanyl. The undercover officer made a series of five undercover purchases of fentanyl from Peguero or members of Peguero’s drug trafficking organization.
Peguero previously pleaded guilty on September 20, 2019.
“Interstate fentanyl traffickers have been a serious affliction for the people of New Hampshire,” said U.S. Attorney Murray. “This sentence sends yet another message that traffickers face serious personal consequences in federal court. It also reaffirms our commitment to work closely with the DEA and all of our law enforcement partners to identify, prosecute, and incarcerate the drug dealers who endanger Granite Staters.”
“Fentanyl is causing grave damage to New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentence be a warning to traffickers like Mr. Peguero who are coming from out of state to distribute this poison. DEA’s top priority is combatting the opioid epidemic by working with our local, state and federal law enforcement partners.”
This matter was investigated by the Drug Enforcement Administration and the Hampton Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Kickapoo Woman Sentenced to 210 Months in Federal Prison for Felony Murder for Grandson’s Death after Being Left in Car in Casino Parking Lot in JulyRead the Press Release
OKLAHOMA CITY – ALANNA JEAN ORR, 50, of Oklahoma City, was sentenced today by U.S. District Judge Scott Palk to serve 210 month in federal prison for causing the death of her five-year-old grandson by leaving him in a hot car in a casino parking lot on a hot summer afternoon with no air conditioning, announced U.S. Attorney Timothy J. Downing. In addition, Orr was ordered to serve three years of supervised release upon release from prison and pay $3,877.31 in restitution for funeral expenses to the Oklahoma Crime Victims Compensation Board.
According to an affidavit in support of a search warrant signed in Oklahoma County District Court on July 17, 2018, Orr was caring for her five-year-old grandson on June 21, 2018, when she went to the Kickapoo Casino in Harrah, Oklahoma. Orr arrived at the casino at approximately 1:23 p.m., and she left the casino at approximately 7:28 p.m. During this time Orr’s grandson remained in the car and the high temperature in Harrah that day approached ninety degrees.
Approximately fifteen minutes after Orr left the casino, according to the affidavit, she called 911 and reported her grandson had choked and was not breathing. Harrah police officers met Orr at the Harrah Police Department and attempted to resuscitate the child, but noted that that rigor mortis had already begun.
On April 17, 2019, a federal grand jury returned an indictment that charged Orr with second degree felony murder by child neglect in Indian Country. In particular, it alleged Orr, who is a member of the Kickapoo Tribe, caused the death of a child by willfully failing to provide adequate shelter and supervision while she was responsible for the child’s health, safety, and welfare. This crime is subject to federal jurisdiction because the defendant and victim are Indians and the offense took place on tribal trust land.
On July 30, 2019, Orr pleaded guilty to the indictment. During the plea hearing before Judge Palk, she admitted she caused her grandson’s death by leaving him unattended on a hot summer afternoon in the back seat of her car with no air conditioning.
Judge Palk immediately remanded Orr into custody at the hearing today to begin serving her sentence.
This case is a result of an investigation by the Harrah Police Department, the Kickapoo Tribal Police Department, the Oklahoma District 23 Drug Task Force, the District Attorney’s Offices for Cleveland, Lincoln, and Pottawatomie Counties, and the FBI Oklahoma City Division. Assistant U.S. Attorneys Mark R. Stoneman and Mary E. Walters prosecuted this case, with assistance from the Cleveland County Assistant District Attorney’s Office.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
June 15, 2020 Update: The complaint against Michael Rodriguez was dismissed at the government’s request on June 14, 2020 and he has been released from custody. the investigation into the June 2, 2020 arson of the NYPD vehicle is ongoing.Read the Press Release
PRESS RELEASE
INDIVIDUAL CHARGED WITH SETTING NYPD VEHICLE ON FIRE IN BROOKLYN
A criminal complaint was filed Thursday in federal court in Brooklyn charging Michael Rodriguez with setting an unoccupied New York City Police Department vehicle on fire on June 2, 2020 in Williamsburg. Rodriguez was arrested Thursday morning and was ordered detained pending trial this afternoon by United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Daniel Nigro, Commissioner, Fire Department of New York (FDNY), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
“Under the cover of pre-dawn darkness, Rodriguez allegedly set fire to a vehicle bearing an NYPD placard on a residential block in Brooklyn, endangering innocent residents of the area and first responders to the blaze and damaging a second vehicle,” stated United States Attorney Donoghue. “The defendant’s actions have no place in civil society, and this Office will vigorously prosecute him and others who commit such acts of violence in our community.”
“As charged, Rodriguez’s deliberate actions put not only the lives of New York City Police officers at risk, but also those of the FDNY first responders and civilians. Thanks to the dedicated work of the ATF/FDNY/NYPD Arson and Explosives Task Force, this suspect was quickly apprehended. I would like to thank to the United States Attorney’s Office for their work in prosecuting this case,” stated ATF Special Agent-in-Charge DeVito.
“Beyond the dangerous torching of an NYPD vehicle, these allegations represent an attack on the peace and good order that all New Yorkers deserve. I commend our detectives, and law enforcement partners, for their swift and diligent work in this case,” stated NYPD Commissioner Shea.
“Using fire as a weapon to hurt others or destroy property puts innocent lives in danger and will never be tolerated in our city,” stated FDNY Commissioner Nigro. “I’m grateful for the outstanding collaboration of our Fire Marshals with the NYPD and ATF to apprehend this dangerous individual.”
As alleged in the complaint, at approximately 4:30 a.m., Rodriguez approached a vehicle parked on Devoe Street bearing an NYPD placard on the dashboard. The vehicle, assigned to an NYPD captain, was parked at the location for the night. Rodriguez was captured on video surveillance footage pouring liquid on the vehicle’s windshield, placing cardboard on the windshield, and then setting the cardboard on fire. With the vehicle ablaze, Rodriguez pointed a cellular phone toward the vehicle and appeared to either record or take photographs of the fire. The defendant then fled the scene on foot. Another vehicle parked near the NYPD vehicle was also damaged by fire.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Michael J. Bushwack is in charge of the prosecution.
The Defendant:
MICHAEL RODRIGUEZ
Age: 32
UndomiciledE.D.N.Y. Docket No. 20-MJ-431
Jacksonville Man Sentenced to 20 Years After Soliciting Minor for Sex and Child PornographyRead the Press Release
RALEIGH, N.C. – Morgan Jeffrey Shepard, 33, of Jacksonville was sentenced today to 240 months in prison for production of child pornography.
According to information provided to the court, in late 2016, the Wilmington Police Department received a report that a 14-year-old female was having a sexual relationship with an adult male from Jacksonville, NC. The minor victim told investigators that in September 2016, a man, later identified as the defendant Morgan Shepard, who was 29 years old at the time, had contacted her through social media and asked her to engage in sexual acts for money. On two occasions, he provided the victim with money and transportation to Wilmington in exchange for sex with him. In total, the victim had three or four sexual encounters with Shepard. He would not say his name, but she learned his name from mail in his house and was also able to identify him to law enforcement by his photo. In addition to the in-person encounters, Shepard paid the minor victim to send him nude photos on Snapchat.
Law enforcement searched the victim’s phone and found over a thousand text messages between her and Shepard. In one early exchange, Shepard mentioned that the victim was then 13 years old. In another, Shepard requested nude photos and offered “200 and smokes” if she would have sex with him in his car
In July of 2017, Onslow County executed a search warrant at Shepard’s Jacksonville residence. The layout and décor matched what the victim had drawn during a forensic interview. Law enforcement seized Shepard’s phone and a memory card within it. On the memory card, which also contained Shepard’s resume, they found a collection of 25 subfolders labeled with girls’ names. One folder was labeled with the victim’s name and contained multiple images and videos of her that constitute child pornography. Law enforcement identified multiple other girls whose nude photos were contained on the memory card, at least three of which also constituted child pornography.
In April 2018, while on bond for state charges related to the offense, Shepard (now 30 years old) used Instagram to contact a 13-year-old Craven County girl and offer her money for sex. The girl reported the conversation to her School Resource Officer, who referred it to the Craven County Sheriff’s Office. A detective then assumed the girl’s Instagram identity and continued the conversation. Shepard acknowledged the girl’s age, but still made plans to pick her up from a fast food restaurant and then go to a hotel for sex. He arrived as planned, but was met by officers. He attempted to flee and struck a police vehicle before being arrested.
Law enforcement obtained records of Shepard’s Instagram activity, which revealed that he had attempted to solicit no less than 78 young girls in the previous four months. Law enforcement successfully identified 13 of these girls and confirmed that all 13 were between 11 and 15 years of age. When girls had responded to an initial message about making money, Shepard would offer between $300 and $1,000 for sex or nude photos.
Mr. Higdon commented: “The facts of this case have become part of a frightening pattern: predator uses the internet to lure a young, vulnerable victim and sexually abuses them and exploits them through manufacturing pornography. Through aggressive prosecutions, we are working to stop this abuse and to prevent others from becoming victims. Parents, teachers, faith leaders – anyone with access to children – must join us in educating our children, monitoring their interaction with those who would prey upon them and oversee their online relationships. It is critical that we work together to protect our children.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle.
The Department of Homeland Security, the Onslow County Sheriff’s Office, the Craven County Sheriff’s Office, and the Wilmington Police Department investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-0121-BO.
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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.
Indicted Laredoan charged with firearms violationsRead the Press Release
LAREDO, Texas – A 19-year-old man has been taken into custody for illegally possessing a firearm while under an active domestic violence protection order and possessing a firearm while under indictment, announced U.S. Attorney Ryan K. Patrick.
Mario Salazar is expected to make a virtual initial appearance before U.S. Magistrate Sam Sheldon at 9 a.m. today.
The criminal complaint, filed under seal June 4 and unsealed yesterday upon his arrest, alleges that Salazar had a domestic violence order on file which prohibited him from possessing a firearm. However, he allegedly assaulted a woman March 31 – striking her in the left arm and hip with the firearm. The charges also allege he pointed a firearm at her feet while threatening to shoot her.
According to the criminal complaint, the firearm also matches a shooting incident in Laredo April 23. On that date, Salazar allegedly discharged a firearm at a vehicle as it was driving through an intersection. He was still subject to the domestic violence order at that time, according to the complaint.
Salazar is also currently under indictment in Webb County for engaging in organized criminal activity and unlawful restraint, according to the charges, and is prohibited from possessing a firearm.
If convicted of either charge, Salazar faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hudson Man Sentenced for Theft of Government FundsRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Glenn Hoyt Harrison (71, Hudson) to three years and five months in federal prison for theft of government funds. As part of his sentence, the court also entered a money judgment of $363,344.10, the proceeds from the offense, and ordered Harrison to pay restitution.
Harrison had pleaded guilty on August 29, 2019.
According to court documents, Harrison’s mother, L.S., was receiving Social Security Retirement Insurance Benefits. L.S. passed away in November 1994, and her death was never reported to the Social Security Administration (SSA). Consequently, the SSA continued to make the benefit payments. From November 1994, through December 2017, Harrison accessed the funds meant for L.S. and used them for his own personal expenses. In total, Harrison knowingly and willfully stole approximately $363,344.10 in benefits to which he was not entitled.
This case was investigated by the Social Security Administration – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Honduran National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Honduran national was sentenced yesterday in federal court in Boston for illegal reentry.
Oscar Elvir Carcamo was sentenced by U.S. District Court Judge Patti B. Saris to eight months in prison and one year of supervised release. Upon completion of his sentence, Carcamo will be placed into removal proceedings and deported to Honduras. Carcamo was indicted in September 2019 and pleaded guilty in March 2020.
Carcamo was first encountered by immigration officials in 2004 at the Texas border and determined to be illegally present in the United States. Carcamo was placed into removal proceedings and deported on Oct. 29, 2004. Carcamo illegally reentered the United States on two occasions in 2008, was prosecuted in the Southern District of Texas and then deported.
Sometime after his 2008 removal, Carcamo illegally reentered the United States and was arrested on Jan. 1, 2015 in Framingham and charged with assault and battery on a pregnant woman. Carcamo appeared in the Framingham District Court, posted bail and was released. At that time, ICE was not notified and the case went into default.
On Jan. 31, 2019, Carcamo was arrested in Framingham and charged with domestic assault and battery. Carcamo appeared in Framingham District Court, posted bail and was released. ICE, who had lodged a detainer, was not notified.
On July 15, 2019, Carcamo was arrested in Framingham and charged with breaking and entering. Carcamo appeared in Framingham District Court and was ordered held on bail. While in custody, ICE interviewed Carcamo and determined that he was illegally present in the United States. In November 2019, Carcamo was convicted of assault and battery on a pregnant person and sentenced to one year in state prison. Upon completion of his sentence, Carcamo was transferred into federal custody to await resolution of the federal charges of illegal reentry. Carcamo has been in federal custody since March 2020.
United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Helena woman sentenced in robbery of heroin traffickersRead the Press Release
HELENA—A Helena woman convicted by a jury of participating in an armed home invasion to rob a couple involved in trafficking heroin was sentenced today to one year and one day in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
After a three-day trial in February, a jury found Arielle Rose Cowser, 27, guilty of conspiracy to commit robbery affecting commerce and robbery affecting commerce.
U.S. District Judge Donald W. Molloy presided.
In evidence presented at trial, the prosecution said the FBI learned of a home invasion robbery in Helena in which the victims, a couple, were involved in trafficking heroin. Co-defendant Kielan Brett Franklin, who pleaded guilty and is pending sentencing, provided the couple money to travel to Washington to buy an ounce of heroin. The couple returned to Montana with less than an ounce. When the couple did not immediately turn over the heroin, Franklin sent them threatening text messages.
On March 8, 2019, Cowser went to the victims’ residence and asked to enter, saying she had broken up with Franklin. The female victim let Cowser inside and a few minutes later, Cowser let in Franklin and two other co-defendants, Gerald Allen Hiler and Morgan Victor Pitsch. Hiler and Pitsch, who also pleaded guilty, wore masks. Hiler was sentenced to 11 years and seven months in prison, while Pitsch was sentenced to six years and six months in prison.
Hiler brandished a handgun and Pitsch possessed one during the robbery. The defendants fled when they realized the female victim had called 911. The robbers took a small amount of heroin, the female victim’s wedding ring, her cell phone and a purse.
Assistant U.S. Attorneys Tom Bartleson and Tim Racicot prosecuted the case, which was investigated by FBI, Montana Regional Violent Crime Task Force, Lewis and Clark County Sheriff’s Office and Missouri River Drug Task Force.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Harrison County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frank Horner, III, of Clarksburg, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Horner, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Horner admitted to having methamphetamine in October 2019 in Harrison County.
Horner faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Probation Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Goshen Man Charged in Investment Fraud SchemeRead the Press Release
SOUTH BEND – Earl D. Miller, 40, of Goshen, Indiana was charged by way of an Indictment with 6 counts of wire fraud, 1 count of securities fraud, and 1 count of bankruptcy fraud, announced U.S. Attorney Kirsch.
According to documents in this case, it is alleged that Miller, a former real estate investor, began raising money for a new private investment firm named “5 Star Capital” in 2012. He began recruiting predominately novice investors, including members of the Amish community, for “investment opportunities” with 5 Star Capital, 5 Star Commercial and other real estate entities. Miller allegedly solicited funds to invest in “green energy saving product that save the American consumer hundreds of dollars each year.” It is alleged that from June 2014 to August 2015, Mr. Miller raised at least $4.3 million from at least 70 investors through lies. He falsely told investors that he would not get paid anything for managing their funds when, in truth, he misappropriated over $1 million dollars from 5 Star Commercial investors for his personal use including to pay off a former business partner. Mr. Miller also did not own “green product” patents and performed virtually no due diligence into the purported “green” companies before placing his investors’ assets. In addition, to the wire fraud, Mr. Miller is charged securities fraud and bankruptcy fraud for omissions made during bankruptcy proceedings.
“Investment fraud schemes, like the one charged today, ensnare hundreds of victims each year across the United States,” said United States Attorney Thomas L. Kirsch II. “This case is an excellent example of our law enforcement partners working together to seek justice on behalf of the defendant’s alleged victims. We will continue to aggressively investigate and prosecute cases involving all types of investment frauds.”
“I am grateful to U.S. Attorney Kirsch and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases as evidenced by today’s proceedings,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill. The charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by Federal Bureau of Investigation and Security Exchange Commission in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. This case is being prosecuted by Assistant U.S. Attorneys John Maciejczyk and Jerome McKeever.
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Georgia resident arrested for scheme to sell illegal products claiming to protect against COVID-19Read the Press Release
ATLANTA - Stephen Matthew Shumaker has been charged with mail fraud and knowingly distributing and selling a misbranded pesticidal device.
“Shumaker allegedly used the COVID-19 pandemic to sell a product that does not provide the benefits he advertised,” said U.S. Attorney Byung J. “BJay” Pak. “We are proud to be part of the Georgia COVID-19 Task Force, which continues to identify and prosecute those who attempt to perpetrate Coronavirus-related fraud schemes.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This scheme highlights the importance of collaborating with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“The defendant is charged with knowingly selling a fraudulent product during the COVID-19 public health emergency in order to make a profit,” said Environmental Protection Agency Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our partners in law enforcement remain vigilant to protect consumers from this kind of outrageous behavior. To find out how to protect yourself from fraudulent products please see EPA’s compliance advisory, available at https://www.epa.gov/sites/production/files/2020-05/documents/cornavirus-compliance-advisory.pdf.”
“Selling a misbranded pesticidal device as a protection for COVID-19 gives unsuspecting buyers a false sense of hope and places them in danger,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is proud to support the Georgia COVID-19 task force in protecting our citizens from these fraudsters.”
“The Federal Trade Commission appreciates the opportunity to work with the U.S. Attorney’s Office and the COVID-19 Task Force on such an important case,” said Anna Burns, the Commission’s Southeast Regional Director. “Interagency cooperation is essential to ensuring U.S. consumers are protected from fraud associated with the coronavirus pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Shumaker allegedly engaged in a scheme to defraud by soliciting thousands of Georgia residents with false claims that the Beyond Guardian Air™ air purifier kills every major viral and bacterial infection, including the COVID-19 coronavirus disease, in the home. According to the EPA, the device for sale is also a misbranded pesticidal device, another violation of federal law.
Stephen Matthew Shumaker, 43, of Marietta, Georgia, appeared before U.S. Magistrate Judge Christopher C. Bly. Members of the public are reminded that a complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:
• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
• Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission’s website at www.ftc.gov.
• Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
The U.S. Postal Inspection Service, the Environmental Protection Agency and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations are investigating this case, with valuable assistance from the Federal Trade Commission.
Special Assistant United States Attorney Valerie M. Verduce is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gambian Man Indicted on Torture ChargesRead the Press Release
A Gambian man previously residing in Denver, Colorado was arrested today for torture charges stemming from his actions specifically intended to inflict severe physical pain and suffering on individuals in his custody and control in The Gambia in 2006.
An indictment was returned on June 2 and unsealed today charging Michael Sang Correa, 41, a national of The Gambia, with one count of conspiracy to commit torture and six counts of inflicting torture on specific individuals. Correa made his first court appearance on the charges today before U.S. Magistrate Judge N. Reid Neureiter in the District of Colorado.
“Michael Correa allegedly committed heinous acts of violence against victim after victim in a brutal effort to coerce confessions from suspected coup plotters in The Gambia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These charges underscore that the United States will not be a safe haven for perpetrators of torture and that human rights violators will be held accountable and brought to justice.”
“As federal prosecutors, our mission is to seek out injustice and to hold accountable those who perpetuate it, regardless of where it occurs,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “With this arrest, we are not only holding accountable a man who has allegedly committed horrific acts of torture against his own people, but demonstrating to the people of The Gambia, and indeed the entire world, that the United States stands for the rule of law and against those who abuse human rights.”
“Michael Correa’s case is another example of our commitment to pursue those who attempt to evade accountability for their actions by fleeing to the United States,” said Assistant Director David C. Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “HSI will continue to investigate perpetrators of torture, genocide, and other war crimes to ensure the United States does not serve as a safe haven for human rights violators.”
The indictment alleges that in 2006, Correa, a former member of a Gambian armed unit known as the Junglers, conspired with others to commit torture against individuals suspected of plotting a failed coup attempt against then-President Yahya Jammeh, and that he inflicted torture on six victims. The Junglers were comprised of individuals who had been selected from the ranks of The Gambia Armed Forces (GAF) but operated outside the regular GAF chain of command. The Junglers received orders from then-President Yahya Jammeh and answered to him.
In March 2006, the Jammeh government learned that individuals within The Gambia were attempting to overthrow the Jammeh government. The Jammeh government reacted by arresting numerous individuals believed to have been part of plotting the attempt to overthrow the Jammeh government. Individuals who were arrested were taken to a prison known as Mile 2 Prison and to the National Intelligence Agency (NIA) Headquarters to be interrogated about their role in the coup attempt, and were subjected to severe physical and mental abuses at NIA Headquarters.
The indictment alleges that during this time frame, in March and April 2006, the defendant and his co-conspirators severely and repeatedly beat their victims with their fists, feet, boots, and objects including plastic pipes, wires, and branches. The co-conspirators sometimes covered the victims’ heads with plastic bags, restricting their ability to breathe, and subjected some victims to electrocution on various parts of their bodies. The indictment further alleges that one victim was suspended over the ground in a rice bag and beaten severely by the co-conspirators. Others had molten plastic or acid dripped on their bodies.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Denver is leading the investigation of this case with support from HSI agents in Dakar, Senegal as well the Diplomatic Security Service at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. The Human Rights Violators and War Crimes Center (HRVWCC) significantly supported the case. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.
Trial Attorney Erin Cox and Senior Counsel Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Greg Holloway of the District of Colorado are prosecuting the case with the assistance of HRSP historian Dr. Christopher Hayden and with the support of the Criminal Division’s Office of International Affairs. The department appreciates the assistance provided by the governments of The Gambia, the Netherlands, and Sweden in this investigation.
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.
Gambian Man Indicted on Torture ChargesRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that a Gambian man residing in Denver, Colorado was indicted on torture charges stemming from his actions specifically intended to inflict severe physical pain and suffering on individuals in his custody and control in The Gambia in 2006.
The indictment was returned on June 2, 2020, charging Michael Sang Correa, 41, a national of The Gambia, with one count of conspiracy to commit torture and six counts of inflicting torture on specific individuals. The defendant made his initial appearance today before a U.S. Magistrate Judge where he was advised of his rights and the charges pending against him.
“As federal prosecutors, our mission is to seek out injustice and to hold accountable those who perpetuate it, regardless of where it occurs,” said U.S. Attorney Jason R. Dunn. “With this arrest, we are not only holding accountable a man who has allegedly committed horrific acts of torture against his own people, but demonstrating to the People of The Gambia, and indeed the entire world, that the United States stands for the rule of law and against those who abuse human rights.”
“Michael Correa allegedly committed heinous acts of violence against victim after victim in a brutal effort to coerce confessions from suspected coup plotters in The Gambia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These charges underscore that the United States will not be a safe haven for perpetrators of torture and that human rights violators will be held accountable and brought to justice.”
“Michael Correa’s case is another example of our commitment to pursue those who attempt to evade accountability for their actions by fleeing to the United States,” said Assistant Director David C. Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “HSI will continue to investigate perpetrators of torture, genocide, and other war crimes to ensure the United States does not serve as a safe haven for human rights violators.”
The indictment alleges that in 2006, Correa, a former member of a Gambian armed unit known as the Junglers, conspired with others to commit torture against individuals suspected of plotting a failed coup attempt against then-President Yahya Jammeh and that he inflicted torture on six victims. The Junglers were comprised of individuals who had been selected from the ranks of the Gambia Armed Forces but operated outside the regular GAF chain of command. The Junglers received orders from then-President Yahya Jammeh and answered to him.
In March 2006, the Jammeh government learned that individuals within The Gambia were attempting to overthrow the Jammeh government. The Jammeh government reacted by arresting numerous individuals believed to have been part of plotting the attempt to overthrow the Jammeh government. Individuals who were arrested were taken to a prison known as Mile 2 Prison and to the National Intelligence Agency (NIA) Headquarters to be interrogated about their role in the coup attempt, and were subjected to severe physical and mental abuses at NIA Headquarters.
The indictment alleges that in this time frame, in March and April 2006, the defendant and his co-conspirators severely and repeatedly beat their victims with their fists, feet, boots, and objects including pipes, wires, and branches. The co-conspirators sometimes covered the victims’ heads with plastic bags restricting their ability to breathe and subjected some victims to electrocution on various parts of their bodies. The indictment further alleges that one victim was suspended over the ground in a rice bag and beaten severely by the co-conspirators. Others had molten plastic or acid dripped on their bodies.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Denver is leading the investigation of this case with support from HSI agents in Dakar, Senegal as well as personnel at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. Correa was identified by the Human Rights Violators and War Crimes Center (HRVWCC) and it has significantly supported the case. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers.
Assistant U.S. Attorney Greg Holloway of the District of Colorado and Trial Attorney Erin Cox and Senior Counsel Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case with the assistance of HRSP historian Dr. Christopher Hayden and with the support of the Criminal Division’s Office of International Affairs.
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.
Fort Mitchell Man Sentenced to 18 Months for Bank FraudRead the Press Release
COVINGTON, Ky. - Joseph Shockey, 53, of Fort Mitchell, Ky., was sentenced to 18 months in federal prison on Thursday, by Chief U.S. District Judge Danny C. Reeves, after previously pleading guilty, in January 2020, to bank fraud.
In his guilty plea agreement, Shockey admitted that, in 2014, he applied for and obtained a line of credit for $500,000 from Stock Yards Bank and Trust Company. Later that same year, Shockey was sued in Utah and ultimately a default judgment in the amount of $579,063 was entered against him in 2015. Shockey extended the line of credit from Stock Yards but failed to advise the bank, as he had agreed to do, of the judgment. Shockey defaulted on the loan and the bank suffered a loss of $463,000. As part of his plea agreement, Shockey agreed to pay $449,496.07, in restitution.
Under federal law, Shockey must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 5 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentencing
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Elaine Leonhard.
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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Former State Employee Sentenced to 30 Months for Mail Fraud, Identity Theft and Theft of FundsRead the Press Release
LEXINGTON, Ky. –Diana Baker, 53, of Louisville and a former employee of the Kentucky Commission (now Office) for Children with Special Care Needs, was sentenced to 30 months on Thursday, by U.S. District Judge Greg Van Tatenhove, for mail fraud, aggravated identity theft, and four counts of theft from the state agency.
Baker was a 28-year employee of the Commission, which is an agency within the Kentucky Cabinet for Health and Family Services that assists families with children with special health care needs in obtaining funding and care. According to the plea agreement, between 2007 and 2018, Baker, who was an Administrative Branch Manager in the Louisville office, manipulated software programs, to generate fraudulent payment vouchers, which purported to reimburse the families of special needs children for out of pocket expenses or pay third party vendors for services to children. These vouchers were sent in the regular course of business to the Kentucky State Treasurer’s Office, which issued checks that were actually used to make payments on Baker’s credit card accounts, to pay doctors and dentists for services to Baker’s family, and, in one instance, to pay a carpenter for work on a dock for lakefront property owned by Baker. The amount of the alleged theft is approximately $45,000.
Under federal law, Baker must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Louisville Field Office, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky Cabinet for Health and Family Services, Office of the Inspector General. The United States was represented by Assistant U.S. Attorney Ken Taylor.
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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Former Rapides Parish Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
Dominic Davidson, 27, a former Correctional Officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, pleaded guilty today to one misdemeanor count of using excessive force against a pretrial detainee housed at the facility.
“The Justice Department works to protect the civil rights of all citizens, including those in our custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “It is disheartening to hear of law enforcement officials who violate the civil rights of citizens instead of aiding in the department’s work to protect them.”
“Law enforcement, including correctional officers, are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold public servants accountable when they break the law.”
According to court testimony and documents filed in connection with the guilty plea, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
Davidson faces a maximum statutory penalty of up to 12 months in prison and a fine of up to $100,000. The sentencing will take place on Sept., 15, 2020.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
Former Rapides Parish Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Dominic Davidson, 27, a former Correctional Officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, pleaded guilty today before Senior U.S. District Judge Dee D. Drell, to one misdemeanor count of using excessive force against a pretrial detainee housed at the facility.
“Law enforcement, including correctional officers, are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold public servants accountable when they break the law.”
“The Justice Department works to protect the civil rights of all citizens, including those in our custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “It is disheartening to hear of law enforcement officials who violate the civil rights of citizens instead of aiding in the department’s work to protect them.”
According to court testimony and documents filed in connection with the guilty plea, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
Davidson faces a maximum statutory penalty of up to twelve months in prison and a fine up to $100,000. The sentencing date is set for September 15, 2020.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting 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.
Former Owner of Oil Field Construction Business Sentenced for Tax EvasionRead the Press Release
OKLAHOMA CITY – MICKEY ALVIN YOUNG, of Chico, Texas, has been sentenced to five years of probation for evading personal federal income taxes for the 2013 tax year, announced U.S. Attorney Timothy J. Downing. He will spend the first six months in home confinement and must pay $1,197,616.46 in restitution to the IRS.
A federal grand jury indicted Young on December 4, 2018, on two counts of tax evasion. According to the indictment, Young operated Mickey Young Construction, a sole proprietorship that built concrete pits to hold millings at oil and gas drilling sites. Evidence in the case showed that the business had gross receipts of more than $9 million in 2012 and more than $6 million in 2013. Young was required to report income from his business on his personal federal income tax return. He was charged with under-reporting his income in both 2012 and 2013 by treating money that he used for personal purposes as deductible business expenses of Mickey Young Construction. Documents filed in the case showed he improperly treated hundreds of thousands of dollars in each year as business expenses.
A trial in July 2019 resulted in a mistrial after a jury was unable to reach a unanimous verdict on either count. The court set the case for re-trial, but on January 30, 2020, Young pleaded guilty to the felony of tax evasion for the 2013 tax year. Pursuant to a plea agreement, the government moved to dismiss the charge for 2012.
On June 10, 2020, U.S. District Judge Robin J. Cauthron sentenced Young to five years of probation, with the first six months to be served in home confinement. While recognizing the seriousness of the crime, she explained that this sentence is based in part on the dangers that Covid-19 could pose to Young if he were incarcerated. She also ordered Young to pay $1,197,616.46 in restitution, which represents unpaid personal federal income taxes for 2011, 2012, and 2013.
This case is the result of an investigation by the Internal Revenue Service—Criminal Investigations, with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Scott E. Williams and Amanda Green prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Former Owner of Construction Company Admits EmbezzlementRead the Press Release
CAMDEN, N.J. – The former owner of a construction company today admitted his role in defrauding a retirement plan set up by the company, U.S. Attorney Craig Carpenito announced.
Joshua Ferrell, 34, of Chatsworth, New Jersey, the former owner of Indian Mills Contracting Services Inc. (Indian Mills), pleaded guilty plea by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of embezzlement and theft from an employee pension or welfare benefit plan or a fund connected with such plan established for the company’s employees.
According to documents filed in this case and statements made in court:
Ferrell admitted that, between 2011 and February 2017, he was the president and owner of Indian Mills, which was a construction company in Chatsworth. Indian Mills was a family owned construction company that worked on federal, municipal, state, commercial and industrial projects throughout New Jersey. Indian Mills employed machine operators, carpenters, cement masons and labors.
In 2015, Ferrell established the Indian Mills Contracting Inc. 401K Plan which was established as a single employer profit sharing and 401K plan. The plan was covered by the Employee Retirement Income Security Act (ERISA) of 1974. Ferrell was the plan administrator.
Under the ERISA regulations, employers are permitted to establish and maintain employer sponsored retirement plans for the benefit of their employees. Once these plans are established, both employers and employees have the option of making regular contributions of funds to them. The accumulated plan assets are generally invested for the benefit of the plan and the plan participants, and any capital gains or income earned through such investment are added to the accumulated plan assets. Upon retirement, or when otherwise eligible, a plan participant may request and receive disbursements from the retirement plan assets. These disbursements correspond to contributions made to the plan by the participant, plus any associated gains made during the term of employment.
Ferrell admitted that the 401K plan allowed employees to defer portions of their salary before taxes from their bi-weekly paychecks and have that money earmarked for contribution into the plan’s trust.
Ferrell admitted that between Jan. 1, 2015, and February 2017, money which was deducted bi-weekly from Indian Mills employees’ paychecks and which was supposed to be contributed to the plan was instead kept by Ferrell and spent by him.
The charges to which Ferrell pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled Oct. 19, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York; and investigators of the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), under the direction of Philadelphia Regional Director Michael Schloss, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Former Office Manager of Boston Dental Practice Pleads Guilty to Bank Fraud, Identity Theft and Tax FraudRead the Press Release
BOSTON – The former office manager of a Boston-based dental practice pleaded guilty yesterday in federal court in Boston to charges of bank fraud and tax fraud stemming from her embezzlement of funds from her former employer.
Yuliya Vaysglus, a/k/a Julia Vaysglus, 36, formerly of Hopkinton, now residing in Campbell, Calif., pleaded guilty to eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Nov. 17, 2020.
From 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice where her duties included tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, Vaysglus embezzled more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the signature of the dental firm’s owner on the checks, and deposited them into her bank account. Vaysglus failed to report the embezzled funds on her federal tax returns.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must be served consecutively to any other sentence, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; 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 Sara M. Bloom and Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Former DEA Official Pleads Guilty to Elaborate $4M Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A former Drug Enforcement Administration (DEA) public affairs officer pleaded guilty today to defrauding at least a dozen companies of over $4.4 million by posing falsely as a covert officer of the Central Intelligence Agency (CIA).
According to court documents, Garrison Kenneth Courtney, 44, of Florida, falsely claimed to be a covert officer of the CIA involved in a highly-classified program or “task force” involving various components of the United States Intelligence Community and the Department of Defense. According to the false story told by Courtney, this supposed classified program sought to enhance the intelligence gathering capabilities of the United States government. In truth, Courtney had never been employed by the CIA, and the task force that he described did not exist.
To accomplish the fraud, Courtney approached numerous private companies with some variation of this false story, and claimed that the companies needed to hire and pay him to create what Courtney described as “commercial cover,” i.e., to mask his supposed affiliation with the CIA. Courtney also fraudulently claimed that the companies would be reimbursed in the future for these salary payments, sometimes by the award of lucrative contracts from the United States government in connection with the supposedly classified program.
Courtney went to extraordinary lengths to perpetuate the illusion that he was a deep-cover operative. Among other things, he falsely claimed that his identity and large portions of his conduct were classified; directed victims and witnesses to sign fake nondisclosure agreements that purported to be from the United States government and that forbade anyone involved from speaking openly about the supposedly classified program; told victims and witnesses that they were under surveillance by hostile foreign intelligence services; made a show of searching people for electronic devices as part of his supposed counterintelligence methods; demanded that his victims meet in sensitive compartmented information facilities (SCIFs) to create the illusion that they were participating in a classified intelligence operation; and repeatedly threatened anyone who questioned his legitimacy with revocation of their security clearance and criminal prosecution if they “leaked” or continued to look into the supposedly classified information. Courtney further created fake letters, purporting to have been issued by the Attorney General of the United States, which claimed to grant blanket immunity to those who participated in the supposedly classified program.
As a further part of the scheme, Courtney created a fraudulent backstory about himself, claiming that he had served in the U.S. Army during the Gulf War, had hundreds of confirmed kills while in combat, sustained lung injuries from smoke caused by fires set to Iraq’s oil fields, and that a hostile foreign intelligence service had attempted to assassinate him by poisoning him with ricin. All of these claims were false.
Courtney also convinced several real governmental officials that he was participating in this “task force,” explained that they had been selected to participate in the program, and then used those officials as unwitting props falsely to burnish his legitimacy. For example, he directed his victims to speak with these public officials to verify his claims, and separately instructed the government officials as to exactly what to say. Courtney thereby created the false appearance to the victims that the government officials had independently validated his story, when in fact the officials merely were echoing the false information fed to them by Courtney. At times, Courtney also convinced those officials to meet with victims inside secure government facilities, thereby furthering the false appearance of authenticity.
Through the scheme, Courtney also fraudulently gained a position working as a private contractor for the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC), a branch of NIH that provides acquisition support services to federal agencies. Once he had installed himself at NITAAC, Courtney gained access to sensitive, nonpublic information about the procurements of other federal agencies being supported by NITAAC. Courtney thereafter used that information to attempt to corrupt the procurement process by steering the award of contracts to companies where he was then also on the payroll, and used the false pretext of national security concerns to warp the process by preventing full and open competition.
Courtney pleaded guilty to wire fraud and faces a maximum sentence of 20 years in prison when sentenced on October 23. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Liam O'Grady accepted the plea. Assistant U.S. Attorneys Matthew Burke, Heidi Boutros Gesch, and Raj Parekh, and Todd Gee, Deputy Chief of the Department of Justice’s Public Integrity Section, are prosecuting the case.
Investigative agency partners include CIA OIG; Intelligence Community OIG; National Geospatial-Intelligence Agency OIG; Air Force Office of Special Investigations; U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Department of Justice OIG; U.S. Department of Health and Human Services (HHS) OIG; and Naval Criminal Investigative Service (NCIS) Washington Field Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-84.
Former DEA Official Pleads Guilty to Elaborate $4 Million Fraud SchemeRead the Press Release
A former Drug Enforcement Administration (DEA) public affairs officer pleaded guilty today to defrauding at least a dozen companies of over $4.4 million by posing falsely as a covert officer of the Central Intelligence Agency (CIA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office Criminal Division made the announcement
Garrison Kenneth Courtney, 44, of Tampa, Florida, pleaded guilty before Senior U.S. District Judge Liam O'Grady. Sentencing has been scheduled for Oct. 23, 2020.
According to court documents, Courtney falsely claimed to be a covert officer of the CIA involved in a highly-classified program or “task force” involving various components of the United States Intelligence Community and the Department of Defense. According to the false story told by Courtney, this supposed classified program sought to enhance the intelligence gathering capabilities of the United States government. In truth, Courtney had never been employed by the CIA, and the task force that he described did not exist.
To accomplish the fraud, Courtney approached numerous private companies with some variation of this false story, and claimed that the companies needed to hire and pay him to create what Courtney described as “commercial cover,” i.e., to mask his supposed affiliation with the CIA. Courtney also fraudulently claimed that the companies would be reimbursed in the future for these salary payments, sometimes by the award of lucrative contracts from the United States government in connection with the supposedly classified program.
Courtney went to extraordinary lengths to perpetuate the illusion that he was a deep-cover operative. Among other things, he falsely claimed that his identity and large portions of his conduct were classified; directed victims and witnesses to sign fake nondisclosure agreements that purported to be from the U.S. government and that forbade anyone involved from speaking openly about the supposedly classified program; told victims and witnesses that they were under surveillance by hostile foreign intelligence services; made a show of searching people for electronic devices as part of his supposed counterintelligence methods; demanded that his victims meet in sensitive compartmented information facilities to create the illusion that they were participating in a classified intelligence operation; and repeatedly threatened anyone who questioned his legitimacy with revocation of their security clearance and criminal prosecution if they “leaked” or continued to look into the supposedly classified information. Courtney further created fake letters, purporting to have been issued by the Attorney General of the United States, which claimed to grant blanket immunity to those who participated in the supposedly classified program.
As a further part of the scheme, Courtney created a fraudulent backstory about himself, claiming that he had served in the U.S. Army during the Gulf War, had hundreds of confirmed kills while in combat, sustained lung injuries from smoke caused by fires set to Iraq’s oil fields, and that a hostile foreign intelligence service had attempted to assassinate him by poisoning him with ricin. All of these claims were false.
Courtney also convinced several real governmental officials that he was participating in this “task force,” explained that they had been selected to participate in the program, and then used those officials as unwitting props falsely to burnish his legitimacy. For example, he directed his victims to speak with these public officials to verify his claims, and separately instructed the government officials as to exactly what to say. Courtney thereby created the false appearance to the victims that the government officials had independently validated his story, when in fact the officials merely were echoing the false information fed to them by Courtney. At times, Courtney also convinced those officials to meet with victims inside secure government facilities, thereby furthering the false appearance of authenticity.
Through the scheme, Courtney also fraudulently gained a position working as a private contractor for the National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC), a branch of NIH that provides acquisition support services to federal agencies. Once he had installed himself at NITAAC, Courtney gained access to sensitive, nonpublic information about the procurements of other federal agencies being supported by NITAAC. Courtney thereafter used that information to attempt to corrupt the procurement process by steering the award of contracts to companies where he was then also on the payroll, and used the false pretext of national security concerns to warp the process by preventing full and open competition.
Investigative agency partners include CIA Office of Inspector General (OIG); Intelligence Community OIG; National Geospatial-Intelligence Agency OIG; Air Force Office of Special Investigations; U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit; Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Department of Justice OIG; U.S. Department of Health and Human Services OIG; and Naval Criminal Investigative Service Washington Field Office.
Deputy Chief Todd Gee of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Matthew Burke, Heidi Boutros Gesch, and Raj Parekh are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Calexico City Officials Admit to Accepting BribesRead the Press Release
NEWS RELEASE SUMMARY – June 11, 2020
SAN DIEGO – Former Calexico City Councilman David Romero and Bruno Suarez-Soto, a former commissioner on the city’s Economic Development and Financial Advisory Commission, pleaded guilty in federal court today to corruption charges, admitting that they accepted cash bribes in exchange for promises of official action by the city.
The defendants entered their pleas before U.S. Magistrate Judge Bernard G. Skomal, who set sentencing for September 4, 2020 before District Judge Cathy Ann Bencivengo. Romero and Suarez-Soto were allowed to remain free on $10,000 personal appearance bonds secured by their own signatures.
According to their plea agreements, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto guaranteed the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Both men admitted they had taken bribes from others in the past. Referring to this $35,000 payment, they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a councilman, Romero served as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Soto recently resigned from the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Romero resigned his position with the City of Calexico as part of his plea agreement, effective Monday, June 8.
“David Romero was about to become the highest-ranking public official in the city of Calexico, but he and his partner-in-crime sold their power and influence to the highest bidder in a secret pay-to-play scheme,” said U.S. Attorney Robert Brewer. “They are the ones who will pay now.”
“The corruption, lies, and greed of Romero and Suarez-Soto were uncovered by FBI Agents working in our Imperial Valley Office,” said Omer Meisel, Acting FBI Special Agent in Charge of the San Diego Division and Imperial County Resident Agency. “The community in Imperial Valley has a right to leaders who put the public's interest first and serve the community honorably. The FBI is committed to investigating those who violate their position of trust.”
According to their plea agreements, during a December 19, 2019 meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors.
Toward the conclusion of the December 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not, per court filings. “This is done. Set and sealed,” Romero said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
At this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah,” according to court records. Romero added that he “didn’t want to say it in front of everybody, but it will.”
On January 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court filings, Romero reminded the undercover agent how difficult it was to work with the City of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much bullshit [red] tape that exists” with the City.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “Fuck, yeah!” and laughed.
According to admissions in the plea agreements and documents filed in court, at the conclusion of the January 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t fuck up. Which means he [Soto] can’t fuck up.”
The defendants accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro, per the plea agreements. Both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charges filed in the case also allege that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
U.S. Attorney Brewer praised Assistant U.S. Attorney Nicholas Pilchak, DOJ Public Integrity Section trial attorney Joshua Rothstein and FBI agents for working hard to achieve justice in this matter.
The case against Romero and Suarez-Soto is a public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office. Any member of the public who has information related to this or any other public corruption matter in Imperial County or San Diego is encouraged to provide information to the FBI’s email tip line at tips.fbi.gov or to contact their local FBI Field Office. In Imperial County, the FBI can be reached 24 hours a day at 858-320-1800 or 1-877-NO-BRIBE (662-7423).
DEFENDANTS Case Number 20cr1215
Calexico City Councilman David Romero Age: 36 Residence: Calexico, CA
Calexico City Commissioner Bruno Suarez-Soto Age: 28 Residence: Calexico, CA
SUMMARY OF CHARGES
Conspiracy to Commit Federal Program Bribery, in violation of Title 18, United States Code, Sections
371 and 666 (a) (1) (B)
Maximum Penalty: Five years in prison; $250,000 fine.
AGENCY
Federal Bureau of Investigation
Florida man charged in telemedicine schemeRead the Press Release
SAVANNAH, GA: A Florida man who supplied Medicare patient information to his co-conspirators to ultimately bill Medicare for durable medical equipment claims has been charged for his alleged participation in a kickback and telemedicine fraud scheme.
Daniel Craig Hallam, a/k/a Daniel Craig, 41, of Palm Beach Gardens, Fla., is accused of conspiring to pay kickbacks for “leads,” or patient identifications and insurance information, of persons who may need durable medical equipment, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. According to court filings, Craig then received a percentage of the profit from a durable medical equipment company – which billed Medicare for the durable medical equipment – in exchange for supplying leads.
The financial total for orders facilitated through this scheme is alleged to be more than $6 million. Medicare beneficiaries whose patient data was brokered were located in the Southern District of Georgia and elsewhere. Hallam was charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia.
“As the number of defendants identified through this white-collar fraud investigation in the Southern District continue to grow, taxpayers should be aware that it is a priority of this office to work with our dedicated law enforcement partners to vigorously pursue those who would illegally exploit government safety-net programs for personal enrichment,” said U.S. Attorney Christine.
This prosecution, arising out of the related “Operation Brace Yourself” and “Operation Double Helix,” together with those previously announced, continue to add to the largest fraud operation prosecuted in the history of the Southern District of Georgia. Previous charges in this string of cases include eight physicians, two nurse practitioners, three operators of different telemedicine companies, two other brokers of patient data, and several owners of durable medical equipment companies. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the country, including in the Southern District of Georgia.
The combined total of more than $480 million in fraud charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has included allegations involving billions of dollars in fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“The FBI is determined to protect all tax paying citizens who are affected by these kickback schemes, especially those who need government assistance for their health care needs," said Chris Hacker, Special Agent in Charge of FBI Atlanta. This case is just a small piece of a much larger operation that has put tremendous pressure on those seeking to take advantage of our federally subsidized health care programs.”
“Now more than ever, it’s vitally important that the health care our Medicare beneficiaries seek is based on sound medical advice, not monetary kickbacks,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Together with our law enforcement partners, we will continue in the fight to ensure that government programs are only used for legitimate purposes.”
“Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “Our nation’s healthcare system cannot tolerate kickbacks to physicians and pharmacies while criminals line their pockets with taxpayer funded healthcare dollars.”
Criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, particularly during the COVID-19 pandemic, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by FBI - Savannah, the Department of Health and Human Services Office of Inspector General, and the U.S. Secret Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
Five Bay Area Residents Face Federal Charges for Vacaville Gun Store BurglaryRead the Press Release
SACRAMENTO, Calif. —, Five individuals face federal charges for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit.
According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vacaville Police Department. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.