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Friday 13 March 2020
Southwestern PA Family Practitioner Charged in 161-Count Superseding Indictment with Dispensing Drugs in Exchange for Sex and Health Care FraudRead the Press Release
PITTSBURGH - A physician who operated private family practices in Perryopolis, Pennsylvania, and Mount Pleasant, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
The 161-count Superseding Indictment, returned on March 10 and unsealed today, named Emilio Ramon Navarro, 58, of Coal Center, Pennsylvania, as the sole defendant.
"The U.S. Attorney’s office supports in NO MORE week, March 8-14, 2020, a week dedicated to ending domestic violence and sexual assault by increasing awareness and inspiring everyone to become part of the solution," said U.S. Attorney Brady. "We say NO MORE to corrupt doctors like Emilio Navarro who exploit the opioid addictions of women for their own perverse sexual gratification. Our office will continue to fight against such sexual exploitation and abuse, this week and every week."
According to Counts 1 – 28 of the Superseding Indictment, from April 2018 until April 2019, Navarro, a licensed physician, unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to Victim 1 in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Counts 29 through 141 charge that from April 2015 to September 2019, Navarro unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to Victim 2 in return for sexual favors outside the usual course of practice and not for a legitimate medical purpose. Counts 142 to 159 charge that from April 2015 to September 2019, Navarro unlawfully distributed Alprazolam, a Schedule IV controlled substance, to Victim 2 outside the usual course of practice and not for a legitimate medical purpose. Navarro is also charged in Counts 160 and 161 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances.
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000, or both, for the controlled substances offenses. Navarro faces an additional maximum term of imprisonment of 10 years and a fine of $250,000 for each of the health care fraud charges. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.
The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Six York Men Are Indicted for Drug Trafficking ConspiracyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Rankins, age 38, William Barton, age 38, Michael Adams, age 42, Denzel Swan, age 36, Dorral Basknight, age 40, and Furman Dennis, age 38, all of York County, Pennsylvania, were indicted on March 4, 2020, by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the 14-count indictment alleges that the six men distributed and conspired to distribute more than 280 grams of cocaine base between March 27, 2019, and December 19, 2019, in York County.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant U.S. Attorney Johnny Baer 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 maximum penalty under federal law for these offenses is a term of life imprisonment, a term of supervised release following imprisonment, and a 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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Saratoga County Man Sentenced to 96 Months on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Robert Gibeault Jr., age 52, of Gansevoort, New York, was sentenced today to 96 months in prison for distributing and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States District Judge Mae A. D’Agostino also sentenced Gibeault to a 15-year term of supervised release, to begin following his term of imprisonment. Gibeault will also be required to register as a sex offender upon his release from prison
In connection with his guilty plea on October 18, 2019, Gibeault admitted to using file-sharing program BitTorrent to distribute child pornography to other BitTorrent users from May 2017 through September 2017. When his residence was searched pursuant to a federal search warrant in November 2017, his laptop computer was found to contain approximately 400 video files and 100 image files depicting the sexual exploitation of children. These included files that Gibeault had previously distributed over the BitTorrent network.
This case was investigated by HSI, with assistance from the New York State Police and Colonie Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Saint Paul Felon Sentenced to 139 Months in Prison for Heroin DistributionRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PHELIXIS FITZGERALD MAR ROBINSON, a/k/a “Storm,” 45, to 139 months in prison for possession with intent to distribute heroin. ROBINSON, who pleaded guilty on October 15, 2019, was sentenced yesterday before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on March 27, 2019, following the execution of multiple search warrants, law enforcement seized from ROBINSON’s possession more than four kilograms of heroin and more than $545,000 in cash. ROBINSON was also found to be in possession of six loaded firearms, including a Glock model 22 .40 caliber semi-automatic pistol, a Taurus model Protector .38 caliber revolver, a Beretta model 96 .40 caliber semi-automatic pistol, a Glock model 30 .45 caliber semi-automatic pistol, a Bersa model Thunder .380 caliber semi-automatic pistol, and a SCCY model CPX-2 9mm semi-automatic pistol.
This case was the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force and the Drug Enforcement Administration. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant United States Attorney Thomas Calhoun-Lopez prosecuted the case.
Defendant Information:
PHELIXIS FITZGERALD MAR ROBINSON, a/k/a “Storm,” 45
St. Paul, Minn.
Convicted:
- Possession with intent to distribute heroin, 1 count
Sentenced:
- 139 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Republic Man Pleads Guilty to Transporting Minors for Sex, Faces at Least 10 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – A Republic, Missouri, truck driver pleaded guilty in federal court today to transporting two Missouri teenagers across state lines and sexually assaulting them.
Cleveland Lee Crumsey, 37, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of transporting a minor across state lines to engage in criminal sexual activity.
By pleading guilty today, Crumsey admitted that he transported two child victims across state lines from Missouri to Iowa in his truck. Crumsey also admitted that he had sexual intercourse with both of the child victims.
Under federal statutes, Crumsey is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Monett, Mo., Police Department, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Fremont County, Iowa, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Putnam County man sentenced to 10 years in prison for drug offenseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Anthony W. Burnett, 29, of Fillmore, Indiana was sentenced to 10 years in federal prison by U.S. District Judge Jane Magnus-Stinson. Burnett possessed a large amount of methamphetamine that was located during a traffic stop by a Putnam County Sheriff’s Deputy. Burnett pleaded guilty to Possession with Intent to Distribute Methamphetamine.
“Methamphetamine has a devastating impact on all communities in this district, but especially rural communities like Putnam County,” said Minkler. “The U.S. Attorney’s Office is committed to prosecuting individuals who are responsible for supplying this poison to the community.”
This case was the result of an investigation by the Putnam County Sheriff’s Office and the Drug Enforcement Administration (DEA).
DEA Indianapolis District Office Assistant Special Agent in Charge, Michael Gannon said, “The 10 year federal prison sentence for Mr. Burnett was just and necessary for the citizens of Indiana. People like Mr. Burnett who sell crystal methamphetamine (poison) must be held accountable for their actions. DEA will continue to utilize all available resources to investigate and arrest drug dealers who are making money by preying on people with substance abuse issues. DEA remains committed to working hand in hand with our state, local and federal partners and targeting those who are flooding our state and country with methamphetamine. DEA commends the outstanding work that was done in this investigation by the Putnam County Sheriff’s Office and the United States Attorney’s Office, Southern District of Indiana.”
“We are extremely pleased with the outcome of this case, and want to thank the U.S. Attorney’s Office for their diligence in pursuing and securing a lengthy sentence,” said Putnam County Sheriff Scott Stockton. “Working with our federal partners benefited the citizens of Putnam County today. We look forward to a continued relationship for years to come.”
According to Assistant United State Attorney Kyle M. Sawa, who prosecuted this case for the government, Burnett will serve five years of supervised release following his imprisonment and must pay a $1,000 fine.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those individuals who distribute a large amount of methamphetamine in the Southern District of Indiana. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.3.
Project Guardian: Five Felons Appear in Federal Court on Gun ChargesRead the Press Release
CHARLESTON, W.Va. – Five felons appeared in federal court on gun charges this week, announced United States Attorney Mike Stuart.
Paul William Martin, 34, of South Charleston, was sentenced to 46 months in prison for being a felon in possession of firearms. Martin was also sentenced to 18 months for violating his previous term of supervised release, which will run concurrently. A federal grand jury convicted Martin in December of 2019, following a two-day trial. Martin was indicted on being a felon in possession of a firearm due to previous convictions for possession of a stolen vehicle, forgery, daytime burglary, and fraudulent use of an access device in Kanawha County, West Virginia. Martin also had a previous federal conviction for being a felon in possession of a firearm in the Southern District of West Virginia. At the time of his arrest for this charge, Martin was on supervised release for that previous conviction. On October 12, 2018, Jason Buzzard had picked up Martin at the Sheetz gas station in order to sell him firearms. As part of the transaction, Martin and Buzzard were going to exchange drugs as well as guns and cash. Shortly after they met, and while they were en route to conduct the deal, Martin and Buzzard were stopped by officers with the South Charleston Police Department. Those officers were able to locate and recover a .25 semi-automatic handgun and a .22 caliber revolver. The South Charleston Police Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorneys L. Alexander Hamner and Andrew Tessman handled the prosecution.
Michael Q. Cottrell, 23, of Charleston, was sentenced to 21 months in federal prison for being a felon in possession of firearms. A federal jury convicted Cottrell, 23, on November 8, 2019, of possessing firearms despite being prohibited as a felon. On August 25, 2018, Cottrell was the driver of a vehicle that crashed on Garrison Avenue in the early morning hours. Cottrell left the scene of the car crash while a male passenger remained inside the overturned car. The car caught on fire and elderly residents of Garrison Avenue had to extinguish the flames. Investigators discovered a jail call from Cottrell in which he admitted to speeding down Garrison Avenue and crashing his car into a telephone pole and a fence. Police recovered two firearms, a pistol and a revolver, at the scene of the crash. At trial, evidence established that Cottrell threw one of the firearms next to a nearby shed in a resident’s yard. Cottrell had been seen earlier that same night with the other firearm, which juveniles playing basketball located hours after the crash. At trial, Cottrell stipulated that he was a felon and that he knew he was a felon at the time of the car crash. The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorneys Kristin F. Scott and Joshua C. Hanks handled the prosecution.
Shad Michael Knight, 27, of Parkersburg, pled guilty to being a felon in possession of a firearm. Knight admitted that on October 21, 2019, he was driving a blue Chevrolet Cruze when it was pulled over in the 1000 block of 29th Street in Parkersburg due to a busted tail light and Knight having a suspended driver’s license. During the traffic stop a Parkersburg Police Department K-9 responded to the scene and provided a positive indication for the presence of controlled substances within the vehicle. The vehicle was then searched, and officers located a backpack behind the driver’s seat containing a 9mm pistol, two loaded magazines, two boxes of 9mm ammunition, several small plastic bags, and a small amount of methamphetamine. Knight admitted that the firearm was within his possession, that he had placed the firearm in the backpack prior to the traffic stop, and that he knew that he was not permitted to possess firearms under federal law. Knight had previously been convicted of possession of a controlled substance with intent to deliver in Wood County Circuit Court, and was still on parole for that offense when this incident occurred. Knight faces up to ten years in prison when sentenced on June 24, 2020. The Parkersburg Narcotics Task Force, the Parkersburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
Jeromee Todd Donaway, 31, of Parkersburg, pled guilty to being a felon in possession of a firearm. On February 25, 2019, the Parkersburg Police Department responded to a residence on Broadway Avenue to investigate a complaint that Donaway had been seen waiving a firearm while screaming at someone. The responding officers detained Donaway and located a loaded Cobra .380 caliber pistol. At the time of the arrest, Donaway was on bond for a previous incident on December 22, 2018 when the Vienna Police Department seized two pistols from him during a traffic stop on Grand Central Avenue. As a convicted felon, Donaway was prohibited from possessing the firearms. During the plea hearing, Donaway admitted that he possessed the firearms on both occasions. He further admitted that at the time he possessed the weapons, he knew he had been convicted of several felony offenses including being convicted in Wood County Circuit Court in 2017 of possession with intent to deliver a controlled substance. Donaway faces up to 10 years in federal prison when he is sentenced on June 2, 2020. The Parkersburg Police Department and the Vienna Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Josh Hanks is handling the prosecution.
Ricky Nelson, 31, of Logan County, pled guilty to being a felon in possession of a firearm. Nelson admitted that on April 30, 2018, he possessed a RG Model 23, .22 in Logan County, West Virginia. While in his possession, the gun fired, shooting another person. His possession of the firearm was illegal due to his having been convicted in the Circuit Court of Logan County for robbery in the first degree in violation of W.Va. Code § 61-2-12. Nelson faces up to 10 years in prison when sentenced on June 16, 2020. The Boone County Sheriff’s Office conducted the investigation. United States District Senior Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Christopher Arthur is handling the prosecution.
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 noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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Pittsburgh Resident Pleads Guilty to Conspiracy, Health Care Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one count each of conspiracy to defraud the Pennsylvania Medicaid program, health care fraud, and aggravated identity theft, United States Attorney Scott W. Brady announced today.
Tamika Adams, 43, pleaded guilty before United States District Judge Cathy Bissoon.
During her plea hearing, Adams admitted that at various times between 2011 and 2017 she was an employee of three related entities operating in the home health care industry—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and a fourth entity, Coordination Care, Inc. (CCI), were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. EPS nominally performed back-office functions for MCI, ADL, and CCI.
Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for home health services, with PAS payments accounting for more than $80,000,000 of the total amount. During that time, Adams admitted that she participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims.
As part of the conspiracy, Adams admitted that she fabricated timesheets to reflect the provision of in-home PAS care that, in fact, she never provided to the consumer identified on the timesheets. In one instance, Adams admitted submitting false timesheets claiming that she provided more than 80 hours of care in a single week to an attendant, while also working full-time as the nominal president of ADL. Adams further admitted that she caused the submission of Medicaid claims in the name of "ghost" employees for PAS care that never occurred. Likewise, Adams admitted that she paid kickbacks to at least one consumer—her spouse at the time—in exchange for his participation in the scheme. Specifically, Adams admitted that she and her father, co-defendant Tony Brown, used Brown’s name on time sheets for fabricated care of Adams’s spouse. At various times, Adams admitted that she, Tony Brown, and her spouse would meet at an MCI office on the day that Brown received payment for the fraudulent care so that the three individuals could divide the proceeds. In total, Adams acknowledged causing losses to the Pennsylvania Medicaid program in excess of $250,000 related to her spouse.
Adams also admitted that during the conspiracy, she caused the submission of Medicaid claims for PAS care that her friend, an MCI employee, purportedly provided to various consumers, without the friend’s knowledge and when in fact no such care had been provided to the consumers. During this time, Adams admitted that her friend was recovering from a serious injury and unable to work. Adams further misused her friend’s personally identifiable information to obtain and misappropriate the resulting salary payments. Finally, Adams admitted that during the course of audits of MCI, ADL, and CCI, she fabricated documentation for submission to state authorities in an effort to conceal the Medicaid fraud scheme. Among other things, Adams fabricated PAS timesheets, criminal history checks for attendants, child-abuse clearance forms for attendants, and certain consumer affidavits to ensure that files requested as part of the audits appeared complete.
Judge Bissoon scheduled Adams’s sentencing for 2:15 p.m. on July 8, 2020.
The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. The aggravated identity theft charges carry a mandatory sentence of two years in prison to run consecutively with any sentence imposed on any other charge and a fine of no more than $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
To date, a total of sixteen defendants have been charged in connection with this investigation. Adams is the twelfth defendant to enter a guilty plea. The remaining defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Pierre Man Indicted on Gun ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Kyle Bordeaux, age 27, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 16, 2019, in Hughes County, Bordeaux knowingly being an unlawful user of and addicted to a controlled substance, knowingly possessed a firearm.
The charge is merely an accusation and Bordeaux is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trials Drug Enforcement Task Force, the Pierre Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Bordeaux was released on bond pending trial. A trial date has not been set.
Pierce County tax preparer arraigned for tax fraud conspiracy involving preparation of false income tax returnsRead the Press Release
Tacoma, Washington – A 51-year-old Lakewood, Washington, man was arraigned today in U.S. District Court in Tacoma for a multi-year fraudulent tax preparation scheme he operated, even after his father went to prison for the same conduct. CLEO J. REED Jr., created “Just Us Tax Service” and later merged it with “Young’s Tax Service.” The companies filed tax returns falsely claiming high rates of Earned Income Tax Credits (EITC) to increase clients’ tax refunds and therefore the fee they would receive for tax preparation.
REED Jr. pleaded “not guilty,” and trial was scheduled for May 12, 2020, in front of U.S. District Judge Benjamin H. Settle.
According to records filed in the case, in 2011 and 2012, even as REED Jr’s father’s tax preparation business was under investigation for preparing fraudulent returns, REED Jr opened and operated “Just Us Tax Service” and allegedly used the same fraudulent technique utilized by his father’s tax preparation business. When the IRS terminated REED Jr’s tax prep registration, he had an acquaintance open and register “Young’s Tax Service” in 2014 and continued filing tax returns with fraudulent entries for Earned Income Tax Credit. REED Jr filed the false returns from his home, from Everyday Essentials, the marijuana dispensary he owned and operated in Puyallup, and from his employment location with the Sumner School District.
The total amount of tax loss in this case and the illegal gain to REED Jr is still being calculated.
REED Jr is charged with one count of conspiracy to defraud the United States and seven counts of aiding in the preparation of false tax returns. Conspiracy is punishable by up to 5 years in prison and aiding in the preparation of false tax returns is punishable by up to three years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), and is being prosecuted by Assistant United States Attorney Arlen Storm.
reed_jr_superseding_indictment.pdfPhil Nichols and Jess Neal of Muncie, Indiana, indicted on corruption-related chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that the former Chairman for a political party in Delaware County, Indiana, Phil Nichols, and a Sergeant for the Muncie Police Department, Jess Neal, have been indicted on charges of conspiracy to commit wire fraud, wire fraud, and witness tampering. Nichols and Neal join defendants Debra Nicole Grigsby (“Nikki Grigsby”), the former District Administrator for the Muncie Sanitary District, and Tony Franklin, the owner of Franklin Building, and Design, LLC, Muncie, Indiana, who were initially indicted in July 2019 on charges of conspiracy to commit wire fraud, wire fraud, making false statements, and falsification of documents in a federal investigation.
The arrests are part of a multi-year-long and ongoing investigation by the United States Attorney’s Office and the Federal Bureau of Investigation into payment for public works projects in Muncie. The investigation has resulted in the following federal cases:
United States v. Craig Nichols, 17-CR-0021-TWP-DML
United States v. Tracy Barton, 18-CR-284-JMS-DLP
United States v. Jeff Burke, 18-CR-285-SEB-DLP
United States v. Rodney Barber, 19-CR-190-JMS-DML
United States. v. Debra Nicole Grigsby and Tony Franklin, 19-CR-231 JRS-DLP
Nichols, 73, and Neal, 53, of Muncie, Indiana, were arrested Thursday morning and will have their initial appearance Thursday afternoon in the federal courthouse in Indianapolis.
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
As set forth in the Superseding Indictment, Nichols served as the Chairman for a political party in Delaware County from approximately 1990 through approximately 1998. Though Nichols had no official leadership position or title within the political party after approximately 1998, Nichols maintained a private office at the political party’s headquarters, and continued to exert influence and control over multiple official acts performed by certain Muncie public officials.
Neal has been a long time Sergeant in the Muncie Police Department, and is also the owner of Red Carpet, Inc. and Express Properties, LLC.
“Public corruption is a significant priority for the FBI. Crimes of this nature are something we take very seriously, because those who exploit their official position for personal gain undermine public trust and confidence,” said Acting Special Agent in Charge Robert Middleton, FBI Indianapolis. “Today’s indictment and arrest of Phil Nichols and Jess Neal is just one more step in seeking to bring to justice those who have victimized the hard-working, tax paying residents of Muncie.”
According to Assistant U.S. Attorney Tiffany J. Preston who is prosecuting this case for the government, Nichols and Neal face up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large- scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3.
Petoskey Man Gets 11 Years for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN -Timothy Gerard Reader, 66, of Petoskey, Michigan, was sentenced to serve 11 years in the Federal Bureau of Prisons for possessing child pornography and for violating the terms of his supervised release. U.S. District Judge Gordon J. Quist also ordered that Reader spend the rest of his life on supervised release.
In 2006, Reader was sentenced in federal court to serve 10 years in prison and 9 years of supervised release for possessing child pornography. After completing his custodial sentence, Reader began his supervised release. As part of the terms and conditions of his supervised release, Reader was not permitted to have a cell phone with internet access. During a visit to Reader’s home in 2019, a probation officer discovered that Reader had two cell phones with internet access and 32 memory cards. When confronted, Reader admitted to possessing more child pornography. Homeland Security Investigations and the Michigan State Police opened a new investigation and discovered that the cell phones and memory card contained more than 2 million sexually suggestive images of children. Within that collection were hundreds of images of child pornography. At sentencing, Judge Quist, ordered Reader to serve another 10 years in prison for possessing more child pornography and one additional year for violating his supervise release.
“Protecting the homeland includes developing and implementing unique investigative methods to identify child predators,” said Vance Callender, Special Agent in Charge of HSI in Michigan and Ohio. “After already serving a decade for similar crimes, Mr. Reader was again identified committing depraved acts. HSI invests significant resources and manpower to protect children.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site:www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by Homeland Security Investigations, the Michigan State Police, and the United States Probation Office.
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Parent in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – A parent in the college admissions case has pleaded guilty today in federal court in Boston.
David Sidoo, 60, of Vancouver, Canada, pleaded guilty before U.S. District Court Judge Nathaniel M. Gorton who scheduled sentencing for July 15, 2020. Sidoo pleaded guilty to one count of conspiracy to commit mail and wire fraud. As part of the plea, Sidoo has agreed to a sentence that includes 90 days in prison and a $250,000 fine.
In 2011, Sidoo agreed to pay $100,000 to have a co-conspirator, Mark Riddell, secretly take the SAT in place of his older son. The following year, Sidoo agreed to pay $100,000 to have Riddell take the SAT in place of his younger son.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Omaha Man Sentenced for New Years’ Robbery SpreeRead the Press Release
United States Attorney Joe Kelly announced that Christopher E. Collins, 28, of Omaha, Nebraska, was sentenced today to 18 years in prison by United States District Judge Robert F. Rossiter, Jr. following his convictions for robbery, brandishing a firearm, and discharging a firearm. In addition to his prison term, he will serve three years of supervised release following his release from prison. There is no parole in the federal system. Collins was also ordered to pay restitution of $280.00 to Buck’s Inc., $151.55 to Kwik Shop, and $1,000 to Phillip’s 66.
On January 1, 2019, at approximately 5:58 a.m., Collins and co-defendants, Marcus Evans and Ervin Smith, Jr., while wearing masks and gloves, robbed the Bucky’s at 2901 North 72nd Street, Omaha. Smith brandished a gun but Collins and Evans knew it was there and being used. Collins was shouting orders and ordered the employee to the ground. They left the store with cash, cigarettes, and Nebraska lottery tickets.
On January 1, 2019, at approximately 6:16 a.m., Collins, Evans, and Smith went into the Kwik Shop at 5929 North 72nd Street. A gun was threatened but never shown. The clerk was ordered to lay on the ground. They left the store with cigarettes, cigars, and Nebraska Lottery tickets.
On January 1, 2019, at approximately 6:31 a.m., Collins, Evans, and Smith robbed the Phillip’s 66 at 5920 Sorenson Parkway, Omaha. Smith was carrying a firearm that Collins and Evans knew was there. As they were entering the store, R.S. saw them enter with faces covered, laying a stick in the doorway, and had a hunch the store was going to be robbed. He went to his car and retrieved a firearm, which he was licensed to carry, and re-entered the store. He demanded Collins, Evans, and Smith not to move. Smith passed Collins his gun and Collins fired several shots in the direction of R.S., before Collins, Evans, and Smith left the store taking store money with them.
They were all caught within 24 hours. Evans was recognized by a former school employee at a location Evans attended. Smith was recognized by an Omaha Police Gang Unit officer. The officer also located a 2013 Facebook picture showing Evans and Smith together. On January 2, 2019, a traffic stop was done of a vehicle Smith was driving. Collins was a passenger. Collins had attempted to cash in one of the stolen lottery tickets and the clerk of that store recognized him and was able to identify him.
Smith entered a guilty plea and is awaiting sentencing. Evans is scheduled to enter a guilty plea in April.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives.
Omaha Man Sentenced for Child EnticementRead the Press Release
United States Attorney Joe Kelly announced that Luis Tobar, age 44, of Omaha, Nebraska, was sentenced in federal court in Omaha for Attempted Coercion and Enticement of a Minor. The Honorable Judge Robert F. Rossiter, Jr. sentenced Tobar to 120 months’ imprisonment. There is no parole in the federal system. Tobar will begin a 5-year term of supervised release upon his release from prison. After completing his prison term, Tobar, a nation from El Salvador, will likely be deported.
On April 12, 2019, the FBI Child Exploitation and Human Trafficking Task Force (CEHTTF) was conducting an operation in Douglas County, Nebraska. As part of the operation, an undercover officer with the CEHTTF posted an advertisement on an escort website used to facilitate prostitution. Tobar responded to the advertisement and engaged in communications with an undercover officer who he believed to be a 15-year-old female. Believing that he was communicating with a 15-year-old female, Tobar requested that she send him nude pictures, agreed to pay her for sex, and traveled to an agreed upon location to meet her. Tobar was arrested by members of the CEHTTF and at the time of his arrest was found to be in possession of the cellular phone he used to communicate with the undercover officer, a large monetary sum, and alcohol. Tobar was convicted after a jury trial.
U.S. Attorney Joe Kelly thanked the efforts of the FBI and the local law enforcement agencies who work diligently to stop human trafficking and especially those who specifically see to exploit minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI Child Exploitation and Human Trafficking Task Force. Douglas County Sheriff’s Office, Lincoln Police Department, Omaha Police Department, LaVista Police Department, Nebraska State Patrol, Council Bluffs Police Department, and the Sarpy Douglas County Law Enforcement Academy participated in the April 12, 2019 operation.
Oklahoma City Anesthesiologist Pays $70,000 and Surrenders His Medical License and DEA Registration Number to Settle Civil Penalty ClaimsRead the Press Release
Oklahoma City, Oklahoma – Dr. Floyd Smith, M.D., ("Dr. Smith"), agreed to pay $70,000 and voluntarily surrender his medical license and DEA registration number for a period of three years to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Timothy J. Downing.
Dr. Smith is an anesthesiologist who practices in Oklahoma City, Oklahoma. The United States alleges that from January 2014, through February 2019, Dr. Smith issued prescriptions for controlled substances to family members in violation of state law, and without maintaining medical files on the family members. The United States further alleges that the prescriptions were not issued in the usual course of professional practice.
To resolve these allegations, Dr. Smith agreed to pay $70,000 to the United States, and to surrender his medical license and DEA registration.
In reaching this settlement, Dr. Smith did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Ocala Man Sentenced to 35 Years in Federal Prison for Leading Massive Drug Trafficking ConspiracyRead the Press Release
Ocala, Florida – Senior U.S. District Judge James D. Whittemore has sentenced Kevin Gene Hart (31, Ocala) to 35 years in federal prison for conspiring to distribute cocaine, heroin, and fentanyl. The court also sentenced Hart to supervised release for the remainder of his life following his release from prison.
A federal jury had found Hart guilty after a four-day jury trial on November 7, 2019. Hart was indicted, along with five co-conspirators, on March 27, 2019.
According to court documents and evidence presented at trial, between January 2012 and May 2019, Hart was the leader of a sprawling drug trafficking conspiracy that distributed hundreds of kilograms of cocaine and heroin through a network of stash houses in Marion County. Large quantities of the heroin were laced with fentanyl.
The following co-defendants previously pleaded guilty for their roles in this case and were sentenced to the following terms of imprisonment: Gary Eugene Hayes (15 years); Darren Michael Beatty (15 years); Jeremy Jermaine Willis (20 years); Kathy Suleydy (8 years, 1 month); and Deandre Amaad Williams (10 years).
This case was investigated by the Drug Enforcement Administration, the Ocala Police Department, the Unified Drug Enforcement Strike Team (UDEST), the Marion County Sheriff’s Office, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Northwest Arkansas Man Sentenced to 168 Months in Federal Prison for Drug Trafficking and Money LaunderingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced yesterday that Bryant Keethe Smith Ford, age 29, of Fayetteville, Arkansas, was sentenced to 168 months in federal prison followed by 4 years of supervised release, and to pay a $20,000.00 fine on one count of Conspiracy to Distribute More than 100 Kilograms of Marijuana and sentenced to 120 months in federal prison followed by 3 years of supervised release on one count of Money Laundering. These sentences were ordered to run concurrently. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, agents with the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigations, through their investigations, determined that from on or about January 1, 2017, and continuing to July 18, 2019, the Bryant Ford Drug Trafficking Organization (DTO) operated in the Western District of Arkansas and was responsible for trafficking large quantities of marijuana into the Fayetteville, Arkansas area from other states. Once the marijuana was brought to Fayetteville by Ford, it was then distributed to others by Ford or at his direction. Further, during the investigation, it was determined that Ford used proceeds from his unlawful marijuana sales to pay for luxury cars in United States Currency (cash) and that he then titled the luxury vehicles in another individual’s name. On July 18, 2019, the day of Ford’s arrest, several federal search warrants were executed. As a result, over $260,000.00 in United States Currency, two loaded firearms, and three luxury vehicles were seized.
During the course of the investigation, over 300 pounds of marijuana were seized by law enforcement.
Ford was indicted by a federal grand jury in August of 2019, and entered a guilty plea in November of 2019.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation. These federal agencies were assisted by many local law enforcement partners throughout the country during the course of this investigation. Assistant United States Attorney Kimberly Harris prosecuted the case for the Western District of Arkansas.
North Suburban Man Pleads Guilty to Federal Child Pornography and Exploitation ChargesRead the Press Release
CHICAGO — A north suburban man has pleaded guilty to federal criminal charges for threatening to publish sexually explicit images of an underage girl unless she sent him more explicit photos and videos of herself.
DAVID J. COTTRELL, 30, of Niles, enticed the underage victim into sending him sexually explicit photos of herself via online social messaging applications. After collecting the photos, Cottrell informed the girl that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit photos and videos, which she did. Cottrell contacted the victim on a regular basis until her parents discovered the messages in 2017 and contacted law enforcement.
Cottrell pleaded guilty Wednesday to one count of sexual exploitation of a child, which is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years, and one count of possession of child pornography, which is punishable by up to ten years. U.S. District Judge Robert W. Gettleman set sentencing for June 4, 2020, at 10:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Charles W. Mulaney.
Cottrell admitted in a plea agreement that he similarly induced or attempted to induce four other minor victims into sending him sexually explicit images of themselves. While communicating with the victims online, Cottrell used the screennames “sevendollarcab,” “brightcitylights,” “b88785,” and “YouShallSubmitToMe Sir.”
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children by calling 1-800-843-5678, or logging on to www.cybertipline.com.
North Dakota Man Indicted on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Dickinson, North Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Scott Alex Doll, age 48, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on March 12, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 25, 2019, in Mobridge, South Dakota, Doll knowingly being an unlawful user of and addicted to a controlled substance, knowingly possessed a firearm.
The charge is merely an accusation and Doll is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Corson County Sheriff’s Office, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Doll was released on bond pending trial. A trial date has not been set.
Mission Man and Woman Indicted on Drug Trafficking and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man and a Mission, South Dakota, woman have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person.
Robert James Riley, age 40, was indicted on March 9, 2020, for Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person. Harvi Lynn Sharp Butte, a/k/a Harvi Lynn Little Shield, age 43, was indicted for Conspiracy to Distribute Methamphetamine. They both appeared before U.S. Magistrate Judge Mark A. Moreno on March 12, 2020, and pled not guilty to their respective Indictments.
The maximum penalty Riley faces upon conviction is life in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty Sharp Butte faces upon conviction is forty years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about February 1, 2019, and continuing to March 5, 2019, Riley and Sharp Butte, knowingly and intentionally, combined, conspired, confederated and agreed with each other and others, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation. Further, on March 5, 2019, Riley, knowingly being an unlawful user of and addicted to a controlled substance, knowingly possessed a firearm.
The charges are merely accusations and Riley and Sharp Butte are presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Riley and Sharp Butte were both remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Michigan City, Indiana Man Sentenced to 15 Years in PrisonRead the Press Release
SOUTH BEND - William Shaifer, age 34, of Michigan City, Indiana was sentenced in South Bend by United States District Court Judge Damon R. Leichty for possession of firearms by a felon, announced U.S. Attorney Thomas L. Kirsch II.
Mr. Shaifer was sentenced to 180 months in prison followed by 2 years of supervised release.
According to documents in this case, over the course of six days in September of 2018, William Shaifer provided an individual with five firearms, crack cocaine, and marijuana. Shaifer sold two handguns and three long guns, including a MAK-90 rifle with an extended magazine. Shaifer’s prior felony convictions include two separate convictions for dealing cocaine.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County Drug Task Force and the Michigan City Police Department. This case was handled by Assistant United States Attorneys Molly E. Donnelly and Jerome W. McKeever.
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Madison Heroin Dealer Sentenced to 8 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Van Williamson, 43, Madison, Wisconsin was sentenced yesterday by Chief U.S. District Judge James D. Peterson to eight years in federal prison for conspiring to distribute 100 grams or more of heroin. Williamson pleaded guilty to this charge on December 10, 2019.
At sentencing, Judge Peterson found that Williamson was the leader of a heroin conspiracy that was responsible for distributing 1,000 to 3,000 grams of heroin in a six-month period in the Madison area. He reasoned that given the large amount of heroin involved in the conspiracy, an eight-year sentence was necessary to protect the public from the significant detrimental impact of heroin trafficking. Judge Peterson stressed that the defendant exploited the illness of others and contributed to a public health epidemic for his own profit.
Co-defendant Cortez Jackson is scheduled for sentencing in front of Judge Peterson on March 23, 2019.
The charge against Williamson was the result of an investigation conducted by the Dane County Narcotics Task Force and the Drug Enforcement Administration. The prosecution of the case has been handled by United States Attorney Scott Blader and Assistant U.S. Attorney David Reinhard.
Long Island Woman Sentenced to 13 Years’ Imprisonment for Providing Material Support to ISISRead the Press Release
Earlier today, in federal court in Central Islip, Zoobia Shahnaz was sentenced to 13 years’ imprisonment by United States District Judge Joanna Seybert for providing material support to a foreign terrorist organization, specifically more than $150,000 to the Islamic State of Iraq and al-Sham (ISIS), and attempting to travel to Syria to join ISIS. Shahnaz pleaded guilty in November 2018.
John C. Demers, Assistant Attorney General for National Security, Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
As set forth in court filings and facts presented at the sentencing hearing, between March 2017 and July 2017, Shahnaz defrauded numerous financial institutions to obtain money for ISIS, including a loan for approximately $22,500. Shahnaz also fraudulently obtained more than a dozen credit cards and used them to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online. Shahnaz then made multiple wire transfers totaling more than $150,000 to individuals and entities in Pakistan, China and Turkey that were fronts for ISIS.
Shahnaz accessed ISIS violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers. She also performed numerous internet searches for information that would facilitate her entry into Syria. Court-authorized search warrants executed at Shahnaz’s residence on Long Island resulted in the seizure of terrorist and jihad-related propaganda, including a photograph of a suicide belt of explosives and a night vision scope.
On July 31, 2017, Shahnaz was arrested at John F. Kennedy International Airport in Queens, New York, while attempting to board a flight with a layover in Istanbul, Turkey – a common point of entry for individuals travelling from western countries to join ISIS in Syria.
The government’s case is being handled by the Office’s National Security and Cybercrime Section and Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance provided by Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.
Long Island Woman Sentenced to 13 Years‘ Imprisonment for Providing Material Support to ISISRead the Press Release
Earlier today, in federal court in Central Islip, Zoobia Shahnaz was sentenced to 13 years’ imprisonment by United States District Judge Joanna Seybert for providing material support to a foreign terrorist organization, specifically more than $150,000 to the Islamic State of Iraq and al-Sham (ISIS), and attempting to travel to Syria to join ISIS. Shahnaz pleaded guilty in November 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today, the defendant learned the consequences of seeking to join ISIS and funneling thousands of dollars into the terrorist organization’s coffers,” stated United States Attorney Donoghue. “There is no higher priority of the Department of Justice and this Office than protecting our country from those who support violent, hate-filled terrorist organizations.” Mr. Donoghue praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force which consists of investigators and analysts from the FBI, the NYPD and over 50 other federal, state and local agencies.
“Financing terrorist organizations shouldn’t be viewed as any less dangerous of a crime than actually carrying out an act of terror itself. Make no mistake about it, Shahnaz funneled a significant amount of money into the hands of those who intended to use it in furtherance of ISIS objectives, and she set out to travel overseas with similar goals in mind. Today’s sentencing is a welcome end to this case as the FBI, along with our partners on the JTTF, continues to pursue other like-minded individuals,” stated FBI Assistant Director-in-Charge Sweeney.
As set forth in court filings and facts presented at the sentencing hearing, between March 2017 and July 2017, Shahnaz defrauded numerous financial institutions to obtain money for ISIS, including a loan of approximately $22,500. Shahnaz also fraudulently obtained more than a dozen credit cards and used them to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online. Shahnaz then made multiple wire transfers totaling more than $150,000 to individuals and entities in Pakistan, China and Turkey that were fronts for ISIS.
Shahnaz accessed ISIS violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers. She also performed numerous internet searches for information that would facilitate her entry into Syria. Court-authorized search warrants executed at Shahnaz’s residence on Long Island resulted in the seizure of terrorist and jihad-related propaganda, including a photograph of a suicide belt of explosives and a night vision scope.
On July 31, 2017, Shahnaz was stopped at John F. Kennedy International Airport in Queens, New York, while attempting to board a flight with a layover in Istanbul, Turkey – a common point of entry for individuals travelling from western countries to join ISIS in Syria.
The government’s case is being handled by the Office’s National Security and Cybercrime Section and Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance provided by Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.
The Defendant:
ZOOBIA SHAHNAZ
Age: 30
Brentwood, New YorkE.D.N.Y. Docket No. 17-CR-522 (JS)
List Broker Indicted for Facilitating Elder Fraud SchemesRead the Press Release
The Department of Justice has charged a New York resident with knowingly providing lists of potential victims to fraudulent mass-mailing schemes that tricked consumers into paying fees for falsely promised cash prizes and purportedly personalized “psychic” services, announced today.
An indictment filed on March 10, 2020, charged Norman Newman, 73, of Croton-on-Hudson, New York, with conspiracy to commit mail and wire fraud and multiple counts of wire fraud. Newman reported to U.S. District Court in Bridgeport, Connecticut before Magistrate Judge William Garkfinkel for arraignment on the indictment yesterday morning.
The indictment alleges that Newman provided list-brokerage services for more than 11 years to individuals running mass-mailing fraud schemes. Newman allegedly furnished consumers’ names and addresses to fraudster clients, knowing that the clients were mailing hundreds of thousands of deceptive prize notifications that misled victims into believing that they would receive a cash prize or personalized services upon payment of a fee. Many of the victims were elderly and vulnerable.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Principal Deputy Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this month when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors, including by pursuing and prosecuting those who perpetrate mass mailing fraud.”
According to the indictment, Newman worked in the offices of a list-brokerage company from 2005 until September 2016, when agents of the United States Postal Inspection Service searched the company’s offices and the Civil Division’s Consumer Protection Branch obtained a federal court order enjoining the company from list brokerage related to sweepstakes- and astrology-themed notifications.
Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
The United States Postal Inspection Service investigated the case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Heather Cherry of the U.S. Attorney’s Office for the District of Connecticut are prosecuting the case.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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.
Leader of Meth Conspiracy Sentenced to 30 Years in PrisonRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 12, 2020, Jason Paul Rodriguez, a/k/a “Chico,” age 40, of Council Bluffs, was sentenced to 30 years in prison by United States District Court Senior Judge James E. Gritzner for Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine. The prison terms for each conviction will be served concurrently. Rodriguez will serve 10 years of supervised release after his prison term.
Rodriguez organized and led a large-scale drug trafficking operation from 2016 until his arrest in April 2019. Rodriguez and his co-conspirators distributed more than 220 pounds of methamphetamine. Co-defendants Lacey Jo Smalley and Erik M. Barber have pleaded guilty and will be sentenced at a later date. The conspiracy involved dozens of others and the investigation is ongoing.
Rodriguez was arrested on April 30, 2019, following a traffic stop. A drug dog alerted law enforcement to the presence of approximately eleven pounds of methamphetamine in the vehicle. $14,933.55 in cash was also seized.
This matter was investigated by the Iowa Division of Narcotics Enforcement, South West Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department, Clarinda Police Department, Audubon Police Department, Omaha Police Department, Fremont County Sheriff’s Office, Page County Sheriff’s Office, Audubon County Sheriff’s Office, Iowa Division of Intelligence, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Law Enforcement Issues Public Safety Warning about Extreme Danger of FentanylRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Larry Casper (619) 546-6734EL CENTRO – The region’s highest-ranking law enforcement officials joined together today to issue a dire public safety alert about the extreme danger of fentanyl-laced pills following the fatal overdose of a 15-year-old boy, the youngest person known to have died as a result of fentanyl in Imperial County.
U.S. Attorney Robert Brewer announced that a complaint was unsealed Wednesday charging 20-year-old Lorenzo Anthony Garcia of Brawley in the overdose death of a young football player from Central Union High School. Garcia was arraigned in federal court in El Centro Wednesday before U.S. Magistrate Judge Ruth Bermudez-Montenegro.
According to the complaint, on the morning of October 8, 2019, the victim’s grandfather tried to wake him up for school, but the child was lifeless and unresponsive. Garcia was allegedly dealing counterfeit blue M30 oxycodone pills laced with fentanyl – known on the street as “blues.” He was also selling Xanax, methamphetamine and other illicit narcotics. Some of his customers were high school students. The complaint alleges that Garcia continued to distribute the counterfeit pills even though he knew about the overdose death.
Fentanyl is 30 to 50 times more powerful than heroin and so dangerous that, in its purest form, even a tiny amount can be deadly. The price of fentanyl – whether as powder or pill – is declining, meaning that both forms are increasingly available in our community.
“There is no margin for error when kids make a mistake with fentanyl, and the consequences can be deadly,” said U.S. Attorney Robert Brewer. “Parents! Get educated and teach your children the deadly consequences of taking pills that are not prescribed to them. The pills might be laced with fentanyl, and fentanyl can kill them!”
“The most effective way to prevent tragic deaths like this one is by talking to your kids about drugs,” said DEA Special Agent in Charge John W. Callery. “Tell your kids about the consequences of using drugs and use this story as an example. Because not only did a 15-year-old boy lose his life to drugs, a 20-year-old young man will possibly lose the next 20 years of his life in jail.”
“This case is a tragic reminder of the fentanyl crisis in the United States,” said El Centro Police Chief Brian Johnson. “The senseless death of a child is a sobering reminder that parents, teachers, and all public safety professionals need to work together to educate our youth and help encourage them to make good decisions about drugs and other dangerous behavior. We hope this tragedy will be a reminder to our youth to not experiment with drugs, alcohol, and tobacco products, all which are harmful to the developing young body and brain. If you know someone is using drugs, be a buddy and have the courage to get them help so we can prevent another tragedy. Working together we can all make a difference.”
“I would like to personally thank U.S. Attorney Robert Brewer for the action his office has taken regarding the senseless death of this young man,” said Imperial County District Attorney Gilbert Otero. “Under his leadership, our Federal counterparts have actively assisted local law enforcement in holding violators accountable for their actions. In the end, those who benefit the most are the victims and the public as a whole. My staff and I look forwarding to continue the relationship both offices have established.”
In San Diego County, officials expect the final tally for fentanyl overdose deaths in 2019 to reach 150. That’s up more than 600 percent from five years ago, and more than 60 percent from 2018. And the rapid increase continues in 2020.
So far, Imperial County has not experienced the high number of fentanyl overdose deaths seen in other regions, but the numbers are on the rise.
“We don’t want the Imperial Valley to mirror the San Diego trend,” U.S. Attorney Brewer said. “Just five years ago, San Diego had 21 fentanyl-related overdose deaths. Just when we think it can’t get any worse, the latest numbers prove us wrong. We are already on pace in 2020 to greatly exceed 2019. I am alarmed and devastated by the dramatic surge in trafficking activity and deaths, particularly of young people.”
The Southern District of California, which includes San Diego and Imperial counties, is the fentanyl gateway to the rest of the country. Fentanyl is crossing the border in this district in record quantities. Mexican drug trafficking organizations are using San Diego ports to smuggle fentanyl in record numbers.
Just five years ago, there were only six fentanyl seizures, collectively 68 pounds, by border officials in the Southern District of California. In 2019, however, there were 214 seizures, totaling 1,792 pounds. That’s an increase of more than two thousand five-hundred percent.
Law enforcement officials are working hard to close this gateway with interdiction, prosecution and education. “Every time we have a fatal overdose, we will be pursue the dealer,” Brewer said. “We are using every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”
Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury may face a 20-year mandatory minimum sentence. In recent years, the U.S. Attorney’s Office has charged 18 alleged dealers with that 20-year mandatory minimum offense – including today’s case.
United States Attorney Brewer urged users who opt to disregard his dire warning to seek Narcan, a drug that can reverse the effects of opioid overdose and save lives. Narcan is available by prescription and can be purchased at many pharmacies without a prescription.
People who need help with mental health including substance use disorder, suicide prevention, medication needs, and more can call the San Diego County Crisis line at 888-724-7240. It’s open seven days a week, 24 hours a day.
DEFENDANT Case Number 20mj8654
Lorenzo Anthony Garcia Age: 20 Brawley, CA
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Sections 841(a)(1) and 841(b)(1)(C)
Maximum penalty: Mandatory Minimum 20 years in prison and maximum of life and $1,000,000 fine
AGENCIES
Drug Enforcement Administration
El Centro Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
La Crosse Shooter Sentenced to 30 MonthsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Robert J. Powell IV, 29, La Crosse, Wisconsin was sentenced yesterday by U.S. District Judge James D. Peterson to 30 months in prison, for possessing ammunition as a convicted felon. Powell pleaded guilty to this charge on October 10, 2019.
On July 28, 2019, Powell was patronizing bars in downtown La Crosse. At approximately 1:30 a.m., a fight started in the street and city cameras showed Powell remove a handgun from his rear waistband and discharge the gun into the air. Powell fled the scene, and one .380 shell casing and one round of .380 ammunition were recovered. Although the firearm Powell used was never recovered, federal law prohibits felons from possessing ammunition. Powell has two felony convictions, for manufacture/deliver marijuana and possession of marijuana.
The charge against Powell was the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Kalamazoo Felon Gets 37 Months for Gun PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN - Darien Montrel Vaughn-White, 25, of Kalamazoo, Michigan, was sentenced to serve 37 months in the Federal Bureau of Prisons for possessing a handgun after being convicted of a felony. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 3 years.
In July 2018, as part of a violent crime reduction initiative, the Kalamazoo Department of Public Safety advised Vaughn-White that his gun-related criminal activity had come to the attention of law enforcement. KDPS warned him that further violent behavior and gun possession could result in federal prosecution. At same time, Vaughn-White was offered the option of guidance and social services. In September 2019, KDPS officers saw Vaughn-White in a fight. After he left the scene, officers stopped him. Officers found him in possession of a 9mm semiautomatic handgun with a 30-round extended magazine. A federal grand jury indicted Vaughn- White and he later pleaded guilty to his illegal possession. At sentencing, U.S. District Judge Maloney commented on the seriousness of Vaughn-White’s illegal possession, the poor choice of going to a place where he knew there would be a fight, and the danger posed by the high-capacity semi-automatic handgun. Judge Maloney observed that Vaughn-White had the potential to rise beyond his situation and expressed his hope for Vaughn-White’s future.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. As part of this strategy, the U.S. Attorney’s Office participates in Kalamazoo’s Group Violence Intervention (GVI) strategy. GVI is designed to reduce homicide and gun violence, minimize harm to communities by replacing enforcement with deterrence, and foster stronger relationships between law enforcement and the people they serve.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the Kalamazoo Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Jury Finds Tampa Man Guilty in International Drug Trafficking ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Ahman Walton (40, Tampa) guilty of conspiring to distribute cocaine and heroin, and distributing 100 grams or more of heroin. Walton faces a maximum penalty of 40 years in federal prison. His sentencing hearing has not yet been scheduled.
Walton had been indicted on July 11, 2019.
According to testimony and evidence presented at trial, Walton was responsible for bringing cocaine into Florida from the Bahamas. In addition, in September 2018, he helped his co-conspirator procure a quarter kilogram of heroin of for nearly $20,000.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Natalie Adams and Gregory T. Nolan.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation and was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jury Convicts Sexual Predator of Soliciting Child Sex Abuse Videos Using A CellphoneRead the Press Release
Jacksonville, Florida – A federal jury has found Paul Edward Lee, Jr. (40, Jacksonville) guilty of knowingly soliciting a minor to produce and send pornographic videos and images depicting sexual abuse of the minor. In 2011, Lee was convicted of lascivious molestation and exhibition of a child under 12 years old and, therefore, is required to register as a sexual predator. Because of this prior conviction, Lee faces an enhanced mandatory minimum penalty of 25 years, and up to, 50 years in federal prison, and a potential life term of supervised release in this case. Lee was arrested at his residence in Jacksonville on May 2, 2018. His sentencing hearing is set for July 6, 2020.
According to evidence and testimony introduced at trial, a law enforcement officer in Illinois discovered that a 14-year-old child was having online contact with an adult male in Florida through a smart phone gaming application designed for use by children. The messages sent to the child by the adult male were increasingly graphic and sexual in nature. The FBI was able to identify this adult male as Paul Edward Lee, Jr., and discovered that Lee was a registered sexual predator living in Jacksonville.
On April 25, 2018, an FBI agent in Jacksonville posing as the minor child continued to engage with Lee through text messaging. During these communications, Lee told the “child” in graphic terms how he wanted to have sex with the child and sent several images and videos of his own genitalia to the child. Two days later, Lee repeatedly texted and solicited the child to produce and send him graphic images and videos of the child’s genitalia. When FBI agents executed a search warrant at Lee’s residence on May 2, 2018, Lee attempted to destroy his cellular telephone in an effort to conceal evidence of his activity.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Sentences Additional Defendants in Borris Fuller Meth Ring, More Sentencings Expected Next MonthRead the Press Release
ALBANY, Ga. – Six defendants linked to a major methamphetamine distribution ring in southwest Georgia have been sentenced to prison for their crimes, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. U.S. District Judge Leslie Gardner sentenced the following individuals on Wednesday, March 11:
- Jamal Cornelius, 28, of Moultrie, was sentenced to 108 months in prison and three years of supervised release after previously pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
- Abe Dennis, 37, of Moultrie, was sentenced to 140 months in prison and five years of supervised release after previously pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
- Willie Dillard, 26, of Moultrie, was sentenced to 160 months in prison and five years of supervised release after previously pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
- Montrevious Jackson, 31, of Adel, was sentenced to 72 months in prison and three years of supervised release after previously pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
- Doug Palmer, 39, of Moultrie, was sentenced to 120 months in prison and five years of supervised release after previously pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
- Tahkhari Taylor, 29, of Moultrie, was sentenced to 12 months and 1 day in prison and three years of supervised release after previously pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
“Working together, federal, state and local law enforcement successfully shut down another dangerous methamphetamine operation pushing an extremely deadly drug into our communities,” said U.S. Attorney Charlie Peeler. “These defendants couldn’t escape the law, and neither will other dealers wanting to profit from the misery and death of people addicted to these illegal, deadly drugs. To all meth dealers: law enforcement is coming and will not stop until dealers are caught, prosecuted and sentenced.”
The known leader of the methamphetamine distribution ring, Borris Fuller, 41, of Moultrie, was sentenced on October 26, 2018 by Judge Abrams to 30 years in prison and ten years of supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. Authorities estimate that an organization of 35 individuals was responsible for the distribution of more than 20 kilograms of the drug in and around Moultrie from May until November 2016. According to court evidence, some of these transactions also occurred in Atlanta and parts of Florida, including at the Georgia-Florida line. The names of the additional defendants previously sentenced to prison for their involvement in the Fuller methamphetamine distribution case are listed in an earlier press release on the USAO Middle District of Georgia website (click here to be directed to the webpage). The remaining eight defendants are expected to be sentenced on April 14 and April 15. There is no parole in the federal system.
The case was investigated by the DEA, GBI, Georgia Department of Corrections, Georgia Department of Community Supervision, Mid-South Narcotics Task Force, Colquitt County Sheriff’s Office, Crisp County Sheriff’s Office, Tift County Sheriff’s Office, Henry County Sheriff’s Office, Grady County Sheriff’s Office, Berrien County Sheriff’s Office, Cook County Sheriff’s Office, Leon County Florida Sheriff’s Office, Volusia County Florida Bureau of Investigation and Moultrie Police Department. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. District Judge Brian M. Morris and pleading not guilty on March 11 was:
Roderick Kale Ledford, 38, of Great Falls, on charges of felon in possession of a firearm and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Ledford faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ledford was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department investigated the case. Pacer case reference. 20-23.
Appearing on March 10 and pleading not guilty was:
Don Fred Baldwin, 47, of Merced, CA, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, use of communications facility in causing and facilitating the commission of felonies. If convicted of the most serious crime, Baldwin faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Baldwin was detained pending further proceedings. The FBI, Merced Police Department and Fort Peck Tribes Department of Law and Justice investigated the case. Pacer case reference. 20-05.
Appearing on March 9 and pleading not guilty was:
Jennifer Lee Marie Walkingeagle, 29, of Wolf Point, on charges of conspiracy to possess with intent to distribute oxycodone and possession with intent to distribute oxycodone. If convicted of the most serious crime, Walkingeagle faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Walkingeagle was detained pending further proceedings. The FBI, Fort Peck Tribes Department of Law and Justice and Montana Highway Patrol investigated the case. Pacer case reference. 20-15.
Charles Clark, 26, of Wolf Point, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Clark faces a minimum mandatory 10 years to life in prison, a $250,000 fine and at least five years of supervised release. Clark was detained pending further proceedings. The FBI and Fort Peck Tribes Department of Law and Justice investigated the case. Pacer case reference. 20-20.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on March 12 and pleading not guilty was:
Destiny Lachelle Nilsen, 26, of Billings, on charges of transportation of a person with intent to engage in prostitution. If convicted of the most serious crime, Nilsen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Nilsen was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 19-152.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National Charged with Misuse of a Social Security NumberRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JUAN VALENTIN HERNANDEZ-CRUZ, age 26, a citizen of Honduras, was charged on March 11, 2020 in a one-count bill of information with misuse of a social security number in violation of 42 U.S.C. ' 408(a)(7)(B).
According to the bill of information, JUAN VALENTIN HERNANDEZ-CRUZ presented false documents in an attempt to obtain a legal Louisiana driver’s license.
If convicted, JUAN VALENTIN HERNANDEZ-CRUZ faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General, in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Grand Island Man Sentenced to 77 Months’ Imprisonment for Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Phillip M. Brown, age 41, of Grand Island, Nebraska, was sentenced on March 12, 2020 to 77 months’ imprisonment, to be followed by three years of supervised release, following his guilty plea to the charge of being a felon in possession of a firearm. There is no parole in the federal system. The Honorable Richard G. Kopf, Senior United States District Court Judge, presided over the case.
On the night of December 13, 2018, a Grand Island resident reported to police that, upon returning from work, he found his home to have been burglarized. The police were able to determine that at least fifteen firearms were stolen. Those firearms included seven shotguns, four handguns, and four rifles. The victim had inherited many of the firearms from his father.
The investigation revealed that Phillip Brown and an accomplice, Edwin Starman, broke into the home in the middle of the night. Brown had learned that a gun safe was kept in the home and he was provided with a key to the safe. Brown and Starman broke into the home and then Brown used the key to open the safe. The two burglars carried several firearms out of the residence and transported them to an apartment in Grand Island. Once they arrived at the apartment, Brown began contacting various people to find buyers for the guns. Brown further instructed Starman to return to the home to steal more firearms. Starman and a third person, Chelsea Musquiz, returned to the home that same night and stole additional items, including more firearms. The Grand Island Police Department was able to recover several of the stolen firearms. Starman and Musquiz have both entered pleas to charges in the District Court of Hall County, Nebraska.
At Brown’s sentencing hearing, after hearing testimony from an investigator with the Grand Island Police Department who also works with the Central Nebraska Drug and Safe Streets Task Force, Judge Kopf found that Brown should be held responsible for a total of fifteen firearms. Brown was assessed enhancements under the Sentencing Guidelines due to factors including the number of firearms involved in the offense and the fact that the firearms were stolen.
This case was investigated by the Grand Island Police Department and the Central Nebraska Drug and Safe Streets Task Force.
Gloversville Man Charged with Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – John Morgan, age 31, of Gloversville, New York, was arrested yesterday and charged by criminal complaint with distributing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that Morgan, using the name “ilikyoung,” distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Morgan initially appeared in court today, before United States Magistrate Judge Daniel J. Stewart. He was ordered detained pending a detention hearing on Monday.
If convicted, Morgan faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Morgan would be required to register as a sex offender.
Anyone with information about this defendant is encouraged to call the FBI Albany Field Office at 518-465-7551.
The case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Georgia DFCS employee pleads guilty to aggravated identity theftRead the Press Release
ATLANTA - Tamika Anderson, a Georgia Division of Family and Children Services (“DFCS”) employee, has pleaded guilty to aggravated identity theft after she stole more than 100 identities while employed at Georgia DFCS.
“DFCS provides critical services to some of Georgia's neediest and most vulnerable residents,” said U.S. Attorney Byung J. “BJay” Pak. “These citizens depend on DFCS and its employees to do the right thing. For a state employee to exploit these people by stealing their identities is reprehensible.”
“This case is an unfortunate example of an individual who violated her position of trust to illegally enrich herself,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “The Secret Service will continue to collaborate with our law enforcement partners to target and arrest individuals who commit these types of crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: in September 2018, Anderson and a co-conspirator, Cassandra Clayton, agreed to sell people's identities, including their names and Social Security numbers, to a third-party for $4,000, with Anderson keeping $3,600. Anderson obtained the identities while working at Georgia DFCS from unsuspecting clients and sent them to Clayton by text message. Clayton did not work for Georgia DFCS, but was responsible for completing the sale to the third-party at a restaurant in McDonough, Georgia. Unbeknownst to Anderson and Clayton, the “buyer” was an undercover agent. Anderson and Clayton knew, however, that the identities were supposed to be used for other fraudulent conduct. In total, Anderson stole over 100 identities over just a couple of weeks.
Cassandra Clayton, 44, of Jonesboro, Georgia, previously pleaded guilty to conspiracy to commit access device fraud. On January 23, 2020, Clayton was sentenced to three years’ probation.
Sentencing for Tamika Anderson, 29, of Jonesboro, Georgia, is scheduled for June 10, 2020, before U.S. District Judge Eleanor L. Ross.
The U.S. Secret Service is investigating this case.
Assistant U.S. Attorney Alex R. Sistla 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.
Fraudster Convicted After Federal Trial for Scamming More Than 100 Elderly Victims Through Lottery SchemeRead the Press Release
Greenbelt, Maryland – A federal jury yesterday convicted Keno Romario Brown, age 26, of Hyattsville, Maryland, on federal charges of conspiracy to commit mail and wire fraud, wire fraud, and mail fraud, in connection with a scheme to defraud more than 100 elderly victims through an advance fee scheme, specifically, by falsely representing that the victims had won a lottery or sweepstakes and demanding taxes or other fees before the victims could receive the prize.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
U.S. Attorney Robert K. Hur stated, “The Department of Justice is committed to bringing fraudsters who prey upon the elderly to justice. We will continue our outreach efforts to make the public aware of scams and frauds targeting elderly victims and encourage anyone who believes they may be a victim to contact the newly launched Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to the evidence presented at his seven-day trial, in April 2013, Brown and two co-conspirators began contacting victims, falsely telling them that they were representatives of Company 1 or Company 2, which sponsored a lottery or sweepstakes. Brown and his co-conspirators misrepresented to victims that they had won a prize sponsored by Company 1 or Company 2, but in order to collect the prize, the victims had to pay advance fees and taxes to Brown or his co-conspirators. The conspirators directed the victims to send the advance fees and taxes electronically, or through an interstate mail carrier to “runners” who received the fraudulent proceeds and provided them to Brown and his co-conspirators. Evidence was presented that Brown used physical abuse to control at least one of the runners.
The trial evidence proved that to launder the fraud proceeds, Brown and a co-conspirator obtained debit cards using the personal information of elderly individuals without their knowledge or consent, and deposited that fraud proceeds onto those debit cards.
The evidence proved that during the course of the conspiracy, Brown and other members of the conspiracy successfully defrauded over 100 elderly victims.
United States Attorney Robert K. Hur commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein, Dana J. Brusca, and Lindsay Eyler Kaplan, who are prosecuting the case.
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Former Music Teacher Sentenced to 10 Years for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – Juan Manuel Rivera-Vázquez, a music teacher and former keyboard player of a children’s music group, was sentenced on March 11, 2020, by U.S District Judge Francisco A. Besosa to a term of 10 years in prison, to be served concurrently with a 15-year sentence imposed in State Court, announced United States Attorney for the District of Puerto Rico W. Stephen Muldrow.
Juan Manuel Rivera-Vázquez was charged in a one-count indictment by a federal grand jury in May 2019 with coercion and enticement of minors following a U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Puerto Rico Crimes Against Children Task Force’s (PRCACTF) probe. He was arrested by HSI special agents on May 24, 2019, and pleaded guilty to the charge on August 6, 2019.
“This sentence should serve as a sobering warning about the consequences facing child sexual predators who mistakenly believe they can elude detection by coercing their victims,” said U.S. Attorney Muldrow. “The U.S. Attorney’s Office is committed to continuing its collaboration with our state, local and federal partners to locate these offenders and ensure that they are prosecuted to the fullest extent of the law.”
“Sexual exploitation is one of the most depraved crimes committed against humanity, and this case is especially disturbing given Rivera-Vázquez’s position of trust,” said Ivan J. Arvelo, special agent in charge for HSI San Juan “This sentence serves as a reminder that HSI is committed to collaborating with its community partners to bring to justice those who exploit children.”
Assistant United States Attorney Elba Gorbea and Deputy Chief of the Immigration, Cybercrimes, and Child Exploitation Unit, Nicholas Cannon, were in charge of the prosecution of the case.
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Former Manager of Heating and Cooling Company Sentenced for EmbezzlingRead the Press Release
St. Louis, MO – Tracy Lee Cernicek, 48, of St. Charles, Missouri, was sentenced to 36 months in prison for wire fraud. Cernicek appeared in federal court today before U.S. District Judge Stephen R. Clark.
According to court documents, Cernicek formerly worked as a credit and collection supervisor for Nortek Global HVAC and Nordyne Distributing. Between September 2016 and April 2019, Cernicek devised and executed a scheme wherein she fraudulently diverted company funds to herself. As one part of her scheme, she altered company systems in a manner that caused company refund transactions, which were properly due and owing to customers, to be paid to her own bank account. As another part of her scheme, she directed third parties to include her name on checks that were properly payable to the company, and thereafter, deposited those checks into her own personal bank account. As part of her effort to conceal the scheme, Cernicek thereafter manipulated company accounting software to write off the transactions as bad debt. In total, Cernicek attempted to embezzle almost $180,000 from her employer and their customers, and successfully embezzled approximately $136,000.
The U.S. Secret Service is investigating this case. Assistant U.S. Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Florida Nursing School President Sentenced for His Role in Defrauding D.C.'s Department of Disability ServicesRead the Press Release
WASHINGTON – Cleophat Tanis, 52, of Naples, Florida, was sentenced today to one month in prison and seven months of home detention for his role in a scheme that caused the District of Columbia’s Department of Disability Services to be defrauded out of hundreds of thousands of dollars. Tanis conspired with Eugenia Rapp, 50, of Woodbridge, Virginia, a former D.C. government employee, who pled guilty to conspiracy to commit mail fraud in July, and who will be sentenced on April 1, 2020.
The announcement was made by U.S. Attorney Timothy J. Shea; Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Aaron R. Jordan, Assistant Inspector General for Investigations, Department of Education; and Daniel W. Lucas, Inspector General for the District of Columbia.
Tanis pled guilty to one count of mail fraud in December 2020. Today the Honorable Trevor N. McFadden sentenced him to one month in prison and seven months of home detention. In addition, he was ordered to pay $47,895 in restitution, an identical amount in a forfeiture money judgement, and a $10,000 fine.
According to the statement of offense submitted to the Court in Tanis’ case, Rapp worked as a vocational rehabilitation counselor with the District of Columbia’s Department of Disability Services, Rehabilitation Services Administration (“DCRSA”). The DCRSA Vocational Rehabilitation program provides vocational rehabilitation benefits, like college tuition, to qualified individuals with disabilities to help them prepare for and engage in gainful employment. Individuals must be D.C. residents to be eligible for the benefits.
From 2012 through 2016, Rapp conspired with others to defraud the D.C. government by having benefits awarded to individuals who were not eligible to receive them. In her role as a vocational rehabilitation counselor, Rapp was responsible for determining whether an individual was eligible to receive the benefits. Notwithstanding D.C. government policy regarding conflicts of interest, Rapp served as the vocational rehabilitation counselor for more than 20 individuals whom she described as being related to her. She knew these individuals were not eligible to receive benefits, but ensured that she was assigned to be their vocational rehabilitation counselor, so she could process and approve their applications. As a result, the D.C. government awarded vocational rehabilitation benefits totaling approximately $834,536 to Rapp’s family members and friends.
When one of Rapp’s family members wanted to attend Tanis’ nursing school, Rapp worked with Tanis to get his school added as an approved vendor with the D.C. government. During that process, Tanis told Rapp that his school was struggling financially and asked her to use her position to help pay tuition for students at his school. Tanis knew that students had to be D.C. residents in order to be eligible to receive benefits, but worked with Rapp to get $47,895 in benefits awarded to five students at his school who were not D.C. residents and who had no familial relationship to Rapp. During the scheme, Tanis provided one of Rapp’s relatives with a full scholarship to attend his school. Rapp also asked him to provide money to that relative, which he did.
In announcing Tanis’ sentence, U.S. Attorney Shea, Special Agent in Charge Dunham, Assistant Inspector General Jordan, and Inspector General Lucas commended the work of those who investigated the case from the Federal Bureau of Investigation, the Department of Education’s Office of Inspector General, and the District of Columbia’s Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade, and former Paralegal Specialists Brittany Phillips and Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman, who prosecuted the case.
Florida Man Charged with Money Laundering in $30 Million Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Florida man appeared in court today on charges that he laundered funds related to a $30 million wire fraud scheme, U.S. Attorney Craig Carpenito announced.
Denis Sotnikov, 36, of Hallandale Beach, Florida, is charged by complaint with one count of money laundering. He appeared today before U.S. Magistrate Judge Jared M. Strauss in a Fort Lauderdale, Florida, federal court and was detained.
According to documents filed in this case and statements made in court:
Between April 2018 and March 2020, individuals engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from individuals seeking to invest money. At times, the websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble financial institutions that seemed legitimate, but did not, in fact, exist.
Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs, with higher than average rates of return on the CDs to lure potential victims.
To date, at least 70 victims of the fraud scheme nationwide, including in New Jersey, have collectively transmitted at least $30 million that they believed to be investments.
In many instances, the victims would contact an individual or individuals via telephone or email, as directed on a fraudulent website, who provided the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.
Sotnikov received funds from at least 18 victims of the fraud scheme, totaling $6 million, in accounts at various domestic banks that were controlled by him or by a close relative. Of this amount, $3.7 million was either frozen by the banks or returned to victims, and $707,380 was wired overseas by Sotnikov. The remaining stolen funds – $1.5 million – were transferred to numerous other accounts controlled by Sotnikov and used to fund personal expenditures, including down payments on several luxury vehicles, purchases at high-end retail stores such as Louis Vuitton, Tiffany & Co., and Cartier, rent exceeding $9,000 per month on a home in Florida, several vacations, living expenses and bills.
The money laundering charge is punishable by a maximum of 20 years in prison and a fine of up to $500,000, or twice the value of the property involved, whichever is greater.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Sotnikov and several companies associated with him today based on the same conduct.
U.S. Attorney Carpenito credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Roman Groysman Esq., Fort Lauderdale
Five Men Indicted after Schemes Defrauded Elderly and other Vulnerable Victims of More Than $4 MillionRead the Press Release
United States Attorney John H. Durham, Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division and J. Russell George, the Treasury Inspector General for Tax Administration, today announced that, on March 11, 2020, a federal grand jury in New Haven returned an 11-count indictment charging the following individuals with offenses stemming from their alleged participation in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars:
FAROUQ FASASI, 25, a citizen of Nigeria and a lawful permanent resident of the U.S. residing in New Haven
RODNEY THOMAS, JR., 29, of New Haven
MONTRELL DOBBS, JR., 27, recently of Ansonia, Hamden and New Haven
STANLEY PIERRE, 32, of Bridgeport
RALPH PIERRE, 30, of New HavenFasasi, Thomas, Dobbs and Ralph Pierre were arrested yesterday. They appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and entered pleas of not guilty to the charges. Fasasi, Thomas and Ralph Pierre are currently detained, and Dobbs is released on bond. Stanley Pierre is being sought by law enforcement.
As alleged the indictment, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery. The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing. Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings. The victims never receive winnings.
In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions. Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them. Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.
The indictment alleges that, since August 2015, Fasasi, Thomas and their co-conspirators have used lottery scams, romance scams and other fraudulent means to induce elderly victims to provide them with money, gifts and personal details. Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, and also wired or deposited money into bank accounts in Connecticut controlled by conspiracy members and their associates. Fasasi, Thomas and their associates, including Dobbs, Stanley Pierre and Ralph Pierre, retained a portion of the fraudulently obtained money and passed the rest to others. In addition, Fasasi, Thomas, Dobbs, Stanley Pierre and Ralph Pierre participated in a conspiracy to commit money laundering with the proceeds from the victims.
It is alleged that members of the conspiracy defrauded numerous victims across the U.S. of more than $4 million. One Connecticut victim lost more than $1 million.
“The financial victimization of seniors is as reprehensible as it is cruel, and the Justice Department has made it a priority to root out those who commit these crimes,” said U.S. Attorney Durham. “Numerous victims in this scheme gave thousands of dollars to these alleged predators. I urge all to think twice, and then to think again, before providing any money to individuals who they have never met in person. As soon as you are asked for money, call your local police department, or 833-FRAUD-11, for assistance.”
“Scammers use promises of large financial gains or sometimes even romantic relationships to lure victims in, only to manipulate them into giving their life savings away,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “They prey on those individuals who are more susceptible to falling for a phony promotion or offer, most times, our elder population. The U.S. Postal Inspection Service is committed to protecting our citizens and working hard to prevent more people from becoming further victimized by these types of schemes.”
“These charges demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those that victimize the American taxpayer,” said J. Russell George, the Treasury Inspector General for Tax Administration. “These defendants are alleged to have engaged in schemes resulting in millions of dollars in fraud, often targeting the most vulnerable members of society. The success of this investigation is the result of a collaborative effort between multiple federal law enforcement agencies and the dedicated staff at the U.S. Attorney’s Office.”
The indictment charges Fasasi and Thomas with one count of conspiracy to commit mail and wire fraud, and one count of mail fraud. Each of these charges carries a maximum term of imprisonment of 20 years. All five of the defendants are charged with one count of conspiracy to commit money laundering, a charge that also carries a maximum term of imprisonment of 10 years. Fasasi, Dobbs, Stanley Pierre and Ralph Pierre are also charged with one or more counts of money laundering, which carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Earlier this month, the Justice Department established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Federal Jury finds Defendants Guilty of Submitting False Claims to Medicare under Civil False Claims ActRead the Press Release
Gulfport, Miss. – Following a nine week trial, a federal jury in Gulfport returned a guilty verdict yesterday against Ted and Julie Cain of Ocean Springs, Ted Cain’s companies, Stone County Hospital (Wiggins) and Corporate Management, Inc. (Gulfport), and Tommy Kuluz, Chief Financial Officer of Corporate Management, Inc. for violating the Civil False Claims Act, announced U.S. Attorney Mike Hurst and Derrick Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services.
“This verdict is a victory for the American taxpayer and all the beneficiaries of Medicare and other government programs,” said U.S. Attorney Mike Hurst. “This was one of the most egregious cases of Medicare fraud we have litigated in the State of Mississippi, and I am grateful to our prosecutors and DOJ attorneys and investigators for tenaciously pursuing and holding these fraud takers accountable. We will remain vigilant in protecting American taxpayer dollars and rooting out waste, fraud and abuse throughout government.”
The Government’s complaint and evidence at trial established that these defendants used Stone County Hospital, formerly a 25-bed critical access hospital and Medicare provider, to defraud Medicare of more than $10.85 million through fraudulent annual Medicare cost reports for the years 2004 through 2015. The majority of the damages sustained by the Government resulted from Ted Cain’s multi-million dollar compensation, billed to Medicare through Stone County Hospital and Corporate Management, Inc. For years, Corporate Management, Inc. passed on the vast majority of Ted Cain’s multi-million dollar compensation to Stone County Hospital, which Medicare reimbursed for costs at 101% from 2004 through April 1, 2013, and 99% from April 1, 2013 through 2015 under special reimbursement principles for critical access hospitals that help rural, underserved areas. For the cost reporting years 2004 to 2015, Corporate Management, Inc., through Ted Cain and Tommy Kuluz, assisted by Julie Cain, requested more than $17.69 million in compensation for Ted Cain despite no evidence that Ted Cain did any work for Stone County Hospital that qualified for Medicare reimbursement and that his compensation was unreasonable. In total, Medicare reimbursed Stone County Hospital nearly $11.8 million for Ted Cain’s compensation. The jury awarded the Government nearly $9.62 million in damages for Ted Cain’s fraudulent compensation.
Ted Cain’s wife, Julie Cain, who Ted Cain placed in the position of Administrator for Stone County Hospital from 2003 to 2012, also fraudulently received more than $704,454 in compensation reimbursed by Medicare. The evidence at trial showed that Julie Cain rarely worked at Stone County Hospital, while others ran the hospital, and Julie Cain’s compensation was unreasonable. After Julie Cain resigned as the Administrator of Stone County Hospital, she immediately started receiving compensation from Corporate Management, Inc. for alleged consulting work and director’s fees. Neither Julie Cain nor any other defendant could identify any consulting work she did for Stone County Hospital. Medicare reimbursed $149,510 in Julie Cain’s fraudulently obtained compensation for consulting and director’s fees. The jury awarded the Government a total of $853,964 in fraudulent compensation paid for Julie Cain.
Moreover, an audit conducted by the Mississippi Division of Medicaid found that for 2012 and 2013, Corporate Management, Inc., self-disallowed home office costs on its Medicaid home office statement but charged those costs on its Medicare home office statement, despite that Medicare and Medicaid follow the same reimbursement rules. Chief Financial Officer Tommy Kuluz could provide no explanation for this discrepancy, and despite the fact that he knew about the discrepancies at least by 2016 when Medicaid conducted an audit, defendants made no effort to repay Medicare for the over-allocation to Stone County Hospital. Because of this fraud, Medicare reimbursed Stone County Hospital more than $381,866 in fraudulent costs that it should not have.
The jury made a number of findings in its verdict, resulting in recovery of more than $10.85 million to the Medicare program. Damages are trebled under the False Claims Act. The Court also imposes a statutory penalty of $5,500 to $11,000 for each false claim for cost report years 2004 to 2014 and $11,181 to $22,363 for the 2015 cost report. Accordingly, the total amount of defendants’ civil liability will be determined by the Court, using the findings in the jury’s verdict.
The jury’s verdict resolves a lawsuit that was filed by James Aldridge under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Government investigated and intervened in the lawsuit and prosecuted the case. The case is captioned United States ex rel. Aldridge v. Corporate Management, Inc., et al., Case No. 1:16cv369-HTW-LRA (S.D. Miss.). The United States appreciates the relator’s interest in program integrity and his assistance with this successful outcome. The United States also appreciates the assistance of the Mississippi Division of Medicaid and Manuel Pilgrim, who heads its audit program. The Department of Health and Human Services Office of Inspector General also provided assistance in the case.
The case was prosecuted by Assistant U.S. Attorney Angela Givens Williams and Attorneys Tom Morris and Elspeth A. England with the Civil Fraud Section of the Commercial Litigation Branch of the U.S. Department of Justice in Washington, D.C.
Federal Jury Convicts Two Defendants in Gun Conspiracy That Brought More Than 100 Illegal Guns to the Streets of BuffaloRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that following a three week trial, a federal jury has convicted Titus Thompson, Jr., 35, of Buffalo, NY, and Deonte Cooper 25, of Ashtabula, Ohio, of conspiracy to traffic firearms from Ohio to Buffalo. The charge carries a maximum penalty of five years in prison. Thompson was also convicted of unlawful dealing in firearms, being a felon in possession of firearms, and maintaining a drug involved premises. Those charges carry an additional penalty of up to 35 years in federal prison.
Assistant U.S. Attorneys Emmanuel O. Ulubiyo and Charles J. Volkert, who handled the prosecution of the case, stated that during the course of the conspiracy, Deonte Cooper, who also sold heroin, recruited heroin customers to make straw purchases of more than 100 firearms. The purchases were made at gun shows and gun stores in Ohio. The firearms were then transported to Buffalo, where they were sold to local drug dealers, including Titus Thompson.
On May 18, 2018, the Bureau of Alcohol, Tobacco and Firearms and Explosives, and the Buffalo Police Department executed a search warrant at 89 Parkridge Avenue in Buffalo in the upper and lower apartments which were utilized by Titus Thompson. During the search, agents recovered a .40 caliber pistol and a 9mm pistol in the upper apartment as well as several firearms in the lower apartment. Thompson has two previous felony convictions, and was legally prohibited from possessing firearms.
Another six defendants were also charged and previously convicted in this case.
“These defendants evaded our Nation’s laws so that they could profit by providing drug dealers with one of the most sought after tools of their trade—illegal guns,” stated U.S. Attorney Kennedy. “These are the guns that are used to wreak so much havoc and violence in our community. When we disrupt the flow of illegal guns, drug dealers suffer and our community benefits.”
The verdict is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for June 23, 2020, before U.S. District Judge Elizabeth A. Wolford who presided over the trial.
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East Tennessee United States Attorney Warns Public About Coronavirus Scams Targeting the ElderlyRead the Press Release
Knoxville, Tenn. ---United States Attorney J. Douglas Overbey said today there have been advertisements and claims on television and on the internet touting “cures” for the coronavirus. He asked that the public and especially our senior citizens, who are most susceptible to serious harm from COVID-19, be wary of responding to any such advertising or scheme.
“Unfortunately, in times of crisis, a segment of our society targets elderly persons with schemes that are designed simply to take advantage of them and defraud them out of their money,” U.S. Attorney Overbey stated. “I urge people to be aware of the falsehoods contained in these advertisements and vigilant to avoid becoming victims of a scam.”
The public should continue to monitor the bulletins from the Center for Disease Control (CDC) for the most accurate and up-to-date information on the fight against COVID-19. There is no known cure for this disease at this time, and citizens should refrain from interacting with anyone who claims otherwise.
“We further ask that anyone who believes they have been or are being targeted in any scam related to this illness come forward at the earliest possible moment and report it to a law enforcement agency. Those who seek to take advantage of members of our community by preying on their fears regarding COVID-19 must be stopped,” added Overbey.
The Department of Justice recently announced the launch of a National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
East Stroudsburg Man Sentenced to 24 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 12, 2020, United States District Court Judge Robert D. Mariani sentenced Kerry Sprouse, age 23, of East Stroudsburg, Pennsylvania, to 24 months’ imprisonment for drug trafficking.
According to United States Attorney David J. Freed, Sprouse distributed and possessed with the intent to distribute cocaine in February 2016, in Monroe County, Pennsylvania. Sprouse previously admitted during his guilty plea, to having distributed between 100 and 200 grams of cocaine as part of his trafficking activities.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni 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.
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Drug Dealer Indicted for Causing an Overdose and A Death, Then Disposing of the BodyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an eight-count superseding indictment charging Sherman Michael Puckett (32, Clearwater) with one count of conspiring to distribute controlled substances, three counts of possessing controlled substances with the intent to distribute them, one count of distributing a controlled substance that caused death to its user, one count of distributing a controlled substance that caused serious bodily injury to its user, one count of using a property for the purpose of distributing controlled substances, and one count of obstructing justice. If convicted on all counts, Puckett faces a maximum penalty of life in federal prison. The superseding indictment also notifies Puckett that the United States intends to forfeit any assets that are traceable to proceeds of the offenses.
According to the superseding indictment, from at least July 23, 2018, through September 17, 2019, Puckett conspired with others to distribute fentanyl, fentanyl analogues, heroin, and methamphetamine. On July 23, 2018, law enforcement officers found Puckett in possession of fentanyl, acetylfentanyl, heroin, methamphetamine, and hydromorphone under circumstances that indicated he had intended to distribute these controlled substances to others. On September 6, 2018, law enforcement officers found Puckett in possession of fluoroisobutyryl fentanyl, heroin, and methamphetamine under circumstances that indicated he intended to distribute these controlled substances to others. In September 2018, Puckett distributed a substance that contained heroin, as well as fentanyl or a fentanyl analogues to T.W., who suffered serious bodily injury when she used the substance. From December 5 to December 8, 2018, Puckett maintained a hotel room for the purpose of distributing controlled substances to others. On December 7, 2018, Puckett distributed methamphetamine to S.C., who died from using the drug. Puckett then obstructed justice by disposing of evidence related to S.C.’s death, including her body. On September 17, 2019, law enforcement officers arrested Puckett and found him to be in possession of fluoroisobutyryl fentanyl, heroin, and methamphetamine under circumstances that indicated he intended to distribute these controlled substances to others.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Department of Homeland Security, Homeland Security Investigations, the Pinellas County Sheriff’s Office, and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Mike Gordon.
Dozens charged in Atlanta-based money laundering operation that funneled $30 million in proceeds from computer fraud schemes, romance scams, and retirement account fraudRead the Press Release
ATLANTA – Federal agents have arrested twenty-four individuals for their involvement in a large-scale fraud and money laundering operation that targeted citizens, corporations, and financial institutions throughout the United States. Business email compromise schemes, romance fraud scams, and retirement account scams, among other frauds, duped numerous victims into losing more than $30 million.
“Fraud schemes, like the ones perpetrated and facilitated by these defendants, inflict considerable losses on citizens, companies, and the financial system,” said U.S. Attorney Byung J. “BJay” Pak. “Some of these schemes target the elderly and often deplete the victims’ entire life savings. These arrests affirm the Department of Justice’s commitment to prosecuting those who prey on our most vulnerable citizens.”
“The FBI would like to thank our numerous federal, state and local law enforcement partners who helped make these arrests possible,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “There is no way we can make the victims of these schemes, many who have lost their life savings, whole again. Hopefully the arrests and pending prosecutions will at least give them solace that someone is being held accountable for their losses.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“This investigation and subsequent arrests is due to the level of cooperation and information sharing by all law enforcement partners involved,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “The Secret Service will continue to collaborate with the U.S. Attorney’s Office and our partners to safeguard the nation’s critical financial infrastructure and the people in our communities.”
“No one deserves to have their hard-earned money stolen from them, so identifying and arresting these defendants makes everyone in the community safer,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Foreign nationals arrested in this scheme will be placed into removal proceedings upon completion of their criminal sentence.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: The defendants served as money launderers for other individuals throughout the world who conducted cyber-enabled fraud, including business email compromise schemes, romance scams, and retirement account scams, targeted at companies and individuals across the United States.
A “business email compromise” (BEC) is a type of computer intrusion that occurs when an employee of a company is tricked into interacting with an email message that appears to be, but is not, legitimate. The fraudulent email instructs the victim to wire money to a bank account controlled by conspirators.
A “romance scam” is a type of online fraud that occurs when an individual user of an internet dating website is targeted for fraud by an imposter posing as a potential paramour. The scammer creates a fake online dating profile that depicts photographs of an attractive man or woman alongside descriptions of the fictitious person. The scammer then uses this fake person to express romantic interest in the victim in order to trick him or her into sending money to the scammer. The scammer frequently targets vulnerable individuals who possess significant financial assets, such as retired widows or widowers.
A “retirement account scam” is a type of online fraud that occurs when a third party administrator (TPA) for retirement investment accounts is tricked into authorizing a money distribution to an imposter posing as the true accountholder. The imposter often starts the scam by calling the TPA, identifying himself or herself as an actual accountholder, and requesting a withdrawal distribution form. Once the imposter receives the withdrawal distribution form, the imposter returns the completed form to the TPA. The form is completed with the accountholder’s real personal identifying information (PII)—often stolen via BEC schemes, data breaches, and other hacking offenses—and bank account information for an account controlled by the imposter or the imposter’s conspirators. After the TPA processes the fraudulent request, the request is forwarded to the investment firm responsible for managing the accountholder’s investments, and the funds—often the accountholder’s life savings—are then directed to the imposter’s designated bank account.
The defendants and co-conspirators facilitated BEC schemes, romance scams, and retirement account scams by receiving and distributing fraudulent funds throughout the United States and the world. Over the course of the conspiracy, the defendants and their co-conspirators laundered over $30 million in fraud proceeds. The defendants created multiple sham companies that did not have physical premises, earn legitimate income, or pay wages to employees. In turn, the defendants opened business bank accounts at multiple financial institutions to facilitate receipt of the fraudulent money. The defendants also opened personal bank accounts to receive fraudulent funds, often using false identities and victims’ identities. After funds were deposited into the defendants’ bank accounts, the money was quickly withdrawn from the accounts and circulated among the defendants.
The following individuals have been charged with money laundering conspiracy:
- Darius Sowah Okang, a/k/a Michael J. Casey, a/k/a Richard Resser, a/k/a Thomas Vaden, a/k/a Michael Lawson, a/k/a Matthew Reddington, a/k/a Michael Little, 29, of Stone Mountain, Georgia;
- Dominique Raquel Golden, a/k/a Desire Tamakloe, a/k/a Mellissa Moore, a/k/a Nicole Nolay, a/k/a Raquel Roberts, a/k/a Maria Henderson, a/k/a Raquel Golden, 29, of Houston, Texas;
- Blessing Oluwatimilehin Ojo, a/k/a “Timmy,” 34, of Nigeria;
- George Kodjo Edem Adatsi, 36, of Atlanta, Georgia;
- Desire Elorm Tamakloe, a/k/a “Chubby,” 25, of Smyrna, Georgia;
- Solomon Agyapong, a/k/a “Gumpe,” 31, of Marietta, Georgia;
- Afeez Olaide Adeniran, a/k/a “Ola,” 31, of Atlanta, Georgia;
- Francesco Benjamin, a/k/a “B-More,” 30, of Atlanta, Georgia;
- Jonathan Kojo Agbemafle, a/k/a “Skinny,” 26, of Kansas City, Missouri;
- Joshua Roberts, a/k/a “Onyx,” 28, of Houston, Texas;
- Hamza Abdallah, a/k/a Reggie Lewis, 30, of McDonough, Georgia;
- Prince Sheriff Okai, 26, of Mableton, Georgia;
- Kelvin Prince Boateng, 24, of Atlanta, Georgia;
- Monique Wheeler, 29, of Atlanta, Georgia;
- Matthan Bolaji Ibidapo, a/k/a “B.J.,” 27, of Colorado Springs, Colorado;
- Stephen Abbu Jenkins, a/k/a “Face,” a/k/a Steven Abbu Jenkins, Steven Jenkins, Steve Jenkins, 53, of Atlanta, Georgia;
- Kahlia Andrea Siddiqui, 28, of Chamblee, Georgia;
- Alexus Ciera Johnson, 26, of Mableton, Georgia;
- Abubakar Sadik Ibrahim, 26, of Mableton, Georgia;
- Emanuela Joe Joseph, 34, of Lawrenceville, Georgia;
- Obinna Nwosu, 26, of Douglasville, Georgia;
- Ojebe Obewu Ojebe, 27, of Atlanta, Georgia; and
- Gregory Thomas Hudson, 38, of Powder Springs, Georgia.
Darius Sowah Okang is also charged with one count of bank fraud, and one count of aggravated identity theft. The indictment alleges that Okang created a bank account in a retirement scam victim’s name, which was then used to deposit approximately $288,000 in funds fraudulently withdrawn from the victim’s retirement account.
Afeez Olaide Adeniran and Blessing Ojo are also charged with wire fraud. The indictment alleges that Adeniran defrauded a homebuyer of $40,000 intended for a real estate transaction. The indictment alleges that due to a computer intrusion and false invoicing scam, Ojo caused a media company in California to send payments totaling $89,140 to a bank account controlled by one of the defendants. In total, the victim sent $646,840, as a result of the fraud.
In addition, two related cases charging additional defendants with various counts of bank fraud, aggravated identity theft, money laundering, and conspiracies to commit these offenses are currently pending in federal court in Atlanta. These defendants include:- Benjamin Ibukunoluwa Oye, 26, of Sandy Springs, Georgia;
- Tyler Keon Roussell, 25, of Atlanta, Georgia;
- Christopher Akinwande Awonuga, 27, of Fayetteville, Georgia;
- Casey Broderick Williams, 26, of Covington, Georgia;
- Macario Lee Nelson, a/k/a “Mac,” 24, of Atlanta, Georgia;
- Chadrick Jamal Rhodes, 28, of Atlanta, Georgia;
- Chadwick Osbourne Stewart, 40, of Atlanta, Georgia;
- Oumar Bouyo Mbodj, 28, of Kennesaw, Georgia;
- Seth Appiah Kubi, 60, of Dacula, Georgia;
- Ahamefule Aso Odus, 27, of Atlanta, Georgia;
- Paul Chinonso Anyanwu, 27, of Hampton, Georgia;
- Egale Veonzell Woods, Jr., 41, of East Point, Georgia;
- Chineda Obilom Nwakadu, 25, of McDonough, Georgia;
- Chukwukadibia Ikechukwu Nnadozie, a/k/a “Chuka,” a/k/a Michael McCord, 27, of Fayetteville, Georgia;
- Uchechi Chidimma Odus, a/k/a “Uche,” 23, of Atlanta, Georgia;
- John Ifeoluwa Onimole, 27, of Powder Springs, Georgia; and
- Oluwafunmilade Onamuti, a/k/a Mathew Kelvin, 26, of Duluth, Georgia.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, Department of Labor, Office of Inspector General, U.S. Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are investigating this case.
Assistant U.S. Attorneys Kelly K. Connors, Russell Phillips, and John Ghose are prosecuting the case.
The investigating agencies received considerable support from numerous federal, state, and local law enforcement authorities, to include: Department of Labor, Employee Benefits Security Administration, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the State of Georgia, Office of Inspector General. Also the Atlanta Police Department, Smyrna Police Department, Henry County Police Department, Gwinnett County Police Department, DeKalb County Sheriff’s Department, Chamblee Police Department, Dunwoody Police Department, Cobb County Police Department, McDonough Police Department, Carrollton Police Department, and the Sandy Springs Police Department, all in Georgia. Additional agencies are the New York City Police Department; Houston Police Department; Kent and Bellevue Police Departments in Washington; Newport Beach Police Department, Orange County Sheriff’s Department, San Francisco Police Department, and Upland Police Departments in California; Radnor Township Pennsylvania Police Department; York County South Carolina Sheriff’s Department; Bloomington Indiana Police Department; Arlington County Virginia Police Department; Wells Maine Police Department; Schaumburg Illinois Police Department; Salt Lake City Utah Unified Police District; and the Charlotte County Florida Sheriff’s Office.This investigation is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice.
We engage in community outreach to educate local law enforcement and residents about how they can assist in the fight against, and protect themselves from, fraud schemes that target elder Americans. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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.