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Friday 14 February 2020
Federal Jury Convicts Four Defendants for Operating Knoxville-Area Pill MillsRead the Press Release
A federal jury returned a guilty verdict yesterday against four defendants for their roles in running “pill mills,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee.
A federal jury convicted Sylvia Hofstetter, 55, of Miami, Florida, and Courtney Newman, 44, Cynthia Clemons, 47, and Holli Womack, aka “Holli Carmichael,” 46, all of Knoxville, Tennessee. The jury returned guilty verdicts against Hofstetter for a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, a drug conspiracy, money laundering and maintaining drug-involved premises, and guilty verdicts against Newman, Clemons and Womack for maintaining drug-involved premises.
The verdict follows a three-month trial presided over by U.S. District Judge Thomas A. Varlan for the Eastern District of Tennessee. The United States presented testimony from 55 witnesses throughout the trial, including former patients, employees, medical providers, and expert medical witnesses.
Sentencing hearings are tentatively set for Newman in July 2020, Clemons and Womack in August 2020, and Hofstetter in September 2020.
The drug conspiracy involved the distribution of over 11 million tablets of oxycodone, oxymorphone and morphine that generated over $21 million of clinic revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, which, the evidence showed, were essentially pill mills. Before opening these pill mills in Tennessee, testimony established that Hofstetter worked at a Florida-based pill mill in Hollywood, Florida, which was raided by the Drug Enforcement Administration (DEA) in December 2010. Testimony revealed that law enforcement’s crackdown on hundreds of pill mills in South Florida during that time-period precipitated the move to East Tennessee, where a large percentage of those clinics’ opioid-addicted customers lived.
The charges resulted from an investigation by the Criminal Division’s Organized Crime and Gang Section (OCGS), the U.S. Attorney’s office for the Eastern District of Tennessee, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Criminal Division’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health and the DEA’s Knoxville Diversion Group.
Assistant U.S. Attorneys Tracy L. Stone, Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot of OCGS prosecuted the case.
This case was part of the department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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.
Federal Jury Convicts Four Defendants for Operating Knoxville-Area "Pill Mills"Read the Press Release
Knoxville, Tenn. – A federal jury returned a guilty verdict against four defendants for their roles in running “pill mills,” announced Assistant Attorney General Brian A. Benczkowksi of the Justice Department’s Criminal Division and U. S. Attorney J. Douglas Overbey of the Eastern District of Tennessee.
After five days of deliberation, a federal jury returned a guilty verdict against Sylvia Hofstetter, 55, of Miami, Florida, and Courtney Newman, 44, Cynthia Clemons, 47, and Holli Womack, a.k.a. “Holli Carmichael,” 46, all of Knoxville, Tenn. The jury returned guilty verdicts against Hofstetter for a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, a drug conspiracy, money laundering, and maintaining drug-involved premises, and guilty verdicts against Newman, Clemons, and Womack for maintaining drug-involved premises.
The verdict follows a three-month trial presided over by United States District Judge Thomas A. Varlan in the United States District Court for the Eastern District of Tennessee at Knoxville. The United States presented testimony from 55 witnesses throughout the trial, including former patients, employees, medical providers, and expert medical witnesses.
Defendant Hofstetter faces a term of up to 20 years in prison and a $1,000,000 fine. The remaining defendants face up to 20 years in prison and fines up to $500,000. Sentencing hearings are tentatively set for Newman in July 2020, Clemons and Womack in August 2020, and Hofstetter in September 2020.
The drug conspiracy involved the distribution of over 11 million tablets of oxycodone, oxymorphone, and morphine that generated over $21 million of clinic revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, which, the evidence showed, were essentially pill mills. Before opening these pill mills in Tennessee, testimony established that Hofstetter worked at a Florida-based pill mill in Hollywood, Florida, which was raided by the Drug Enforcement Administration (DEA) in December 2010. Testimony revealed that law enforcement’s crackdown on hundreds of pill mills in South Florida during that time-period precipitated the move to East Tennessee, where a large percentage of those clinics’ opioid-addicted customers lived.
United States Attorney Overbey said, “This office appreciates the extremely hard work by the jury to reach this verdict. The verdict should demonstrate the dire consequences to individuals who participate in greedy schemes to make money and cause so many to suffer from the opioid crisis. To the men and women on the investigative and prosecution teams, we salute the sacrifices you made and the skills you demonstrated to achieve justice in this long and complex trial.”
“The devastation inflicted on families due to the illicit drug trade is immeasurable. The reprehensible actions of those responsible will not be tolerated. As evidenced by these convictions, the FBI and our law enforcement partners will never stop working to put those people who run pill mills behind bars,” said the FBI’s Special Agent in Charge, Joe Carrico.
This superseding indictment resulted from an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
Eastern District of Tennessee Assistant U.S. Attorney Tracy L. Stone, along with Deputy Chief Kelly Pearson and Trial Attorney Damare Theriot of the Organized Crime and Gang Section, with the U.S. Department of Justice, represented the United States.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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Federal Complaint Filed Against Killeen Woman for Bank RobberyRead the Press Release
Eboni Siamone McMurray, age 23 of Killeen, stands charged with allegedly robbing the First National Bank Texas branch in Killeen on Wednesday, announced U.S. Attorney John F. Bash, FBI San Antonio Division Special Agent in Charge Christopher Combs and Killeen Police Chief Charles F. Kimble.
A federal criminal complaint unsealed today in Waco charges McMurray with one count of bank robbery. The complaint alleges that on the afternoon of February 12, 2020, McMurray entered the bank located in the 4300 of East Central Texas Expressway. She approached a teller and demanded that the teller “fill the bag.” The complaint further states that McMurray then pointed a firearm directly at the teller, told the teller she had five seconds to comply, and began counting down from five. The teller filled the bag with money as instructed. McMurray exited the bank with approximately $2,500.
Based on video surveillance from the scene, investigators were able to identify and subsequently locate McMurray’s vehicle. FBI agents and Killeen Police officers, with assistance from the U.S. Marshals Service, arrested McMurray at her residence without incident yesterday.
McMurray faces up to 25 years in federal prison upon conviction. She remains in federal custody pending a detention hearing on Tuesday at 9:00am before U.S. Magistrate Judge Jeffrey Manske in Waco.
The FBI and Killeen Police Department are investigating this case. Assistant U.S. Attorney Greg Gloff is prosecuting the case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Duplin County Man Sentenced to Thirty Years for Decades-Long Drug Trafficking CareerRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that in Federal court, BRANDON DUDLEY, a 34-year-old resident of Duplin County, North Carolina, received a thirty (30) year sentence following his conviction before Chief United States District Judge Terrence W. Boyle. After a three-day trial, a jury found DUDLEY guilty of all counts reflecting his extensive drug trafficking activities throughout Eastern North Carolina. During trial, the prosecution presented evidence of multiple narcotics sales involving DUDLEY, as well as the testimony of individuals who assisted DUDLEY’s operation back to the 1990’s.
Despite serving prison time on various occasions in the North Carolina Department of Corrections, DUDLEY, and those with whom he worked, have continued to distribute large quantities of methamphetamine and other drugs since 2015. Upon final calculation, the Court held DUDLEY “conservatively responsible” for the following quantities of drugs:
- 20 KG of Crystal Methamphetamine;
- 41 KG of Marijuana;
- 31 KG of Cocaine;
- 15 KG of Crack Cocaine.
In addition to the evidence presented regarding drug trafficking, the Court received extensive testimony that tied DUDLEY to the use of firearms while running the Drug Trafficking Organization. DUDLEY has been linked to multiple, ongoing investigations that involve violence and criminal activity centered on the use, possession and trafficking of firearms.
Mr. Higdon commented: “Brandon Dudley’s sentence represents a just conclusion to a long, thorough investigation into a committed, prolific drug dealer. The Dudley case is part of the Take Back North Carolina Initiative, which targets the most dangerous criminals in our communities throughout Eastern North Carolina. With the focused, interconnected efforts of federal, state, and local law enforcement, the Dudley drug trafficking organization has been successfully identified, investigated, and is now fully dismantled. Given Brandon Dudley’s years of committed criminal activity and the countless lives affected throughout North Carolina by the drugs and accompanying violence dispensed by his organization, incapacitating Dudley will make all of Eastern North Carolina safer.”
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The DUDLEY prosecution was a part of the “Fall of the House of Usher” OCDETF Operation that has resulted in the prosecution of dozens of high level drug traffickers, gang and cartel-linked criminals, and the seizure of hundreds of kilograms of controlled substances throughout Eastern North Carolina and beyond.
The Duplin County Sheriff’s Office and the United States Drug Enforcement Administration investigated this matter. J. Frank Bradsher and J. Bradford Knott prosecuted the case on behalf of the United States.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
District Man is Sentenced to 26 1/2 Years in Prison for the Murder of His GirlfriendRead the Press Release
WASHINGTON – Ronald Randolph, 42, of Washington, D.C. was sentenced today by Judge Todd Edelman to 26 ½ years in prison for the murder of his girlfriend, Shameka Jones, U.S. Attorney Timothy J. Shea announced. Randolph previously pled guilty to one count of second degree murder while armed with a sentencing range of 20 to 28 years in prison.
The incident occurred on July 22, 2017, less than one month after Randolph’s release from prison for another violent crime, around 8:30 a.m. Randolph and Ms. Jones had been in a romantic relationship for years, however, in the days leading up to the murder, Ms. Jones had expressed a desire to end the relationship. That morning, angry about the possibility that the relationship might end, Randolph shot Ms. Jones in the face. He then waited twenty minutes before calling 911 and confessing to the crime.
During the sentencing hearing, numerous statements were read that had been prepared by family members and friends describing the significant role Ms. Jones played in their lives as a sister, daughter, friend and mother. In imposing his sentence, Judge Edelman indicated that he considered Randolph’s significant prior criminal history, to include multiple convictions for crimes of violence and a prior conviction for second degree murder, and found there were few if any mitigating factors to consider.
In announcing the sentence, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Lead Paralegal Specialist Sharon Newman, Paralegal Specialists Stephanie Gilbert and Stephanie Siegerist, Victim Witness Specialist Jennifer Allen, and Investigative Analyst Zachary McMenamin. Finally, U.S. Attorney Shea commended the work of former Assistant U.S. Attorney Christopher Bruckmann who investigated and indicted the case and Assistant U.S. Attorneys Laura Bach and Jack Korba who prosecuted the matter.
District Man Sentenced to 19 1/2 Years in Prison for Second-Degree Murder While Armed in Northeast WashingtonRead the Press Release
WASHINGTON – Darius Murphy, 25, of Washington, D.C., was sentenced today to a period of nineteen-and-a-half years of incarceration for second-degree murder while armed announced Timothy J. Shea, United States Attorney for the District of Columbia, and Peter Newsham, Chief of the Metropolitan Police Department.
The defendant pled guilty in the Superior Court of the District of Columbia on September 13, 2019. He was sentenced by the Honorable Craig Iscoe. Following his prison term, he will serve five years of supervised release.
On February 22, 2019, at approximately 7:01 a.m., defendant Murphy fatally stabbed James Wood. Specifically, Mr. Wood was having a conversation with two men in the parking lot of the Capital Laundromat on Benning Road in Northeast. As Mr. Wood engaged in conversation with these two individuals, the defendant walked up behind him, grabbed him by the neck, and stabbed him several times, killing him. After stabbing Mr. Wood, the defendant fled on foot.
In announcing the sentence, United States Attorney Shea and Chief of Police Newsham commended the work of those who investigated the case from the Metropolitan Police Department, including Homicide Branch Detective Thomas O’Donnell. They also acknowledged the efforts of those who worked on the case from the United States Attorney’s Office, including Assistant United States Attorney George A. Pace, Jr., Paralegal Specialist Kelly Blakeney, and Victim/Witness Advocate Marcey Rinker.
Delaware County Business Owner Sentenced to 4+ Years in Prison for Stealing Funds from Clients, Filing False Forms with the IRSRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Myles Hannigan, 48, of Newtown Square, PA was sentenced to 52 months’ incarceration, one year supervised release, and ordered to pay $3,270,566 in restitution by United States District Judge Chad F. Kenney for filing false tax information with the Internal Revenue Service on behalf of his clients. At the conclusion of today’s sentencing hearing, Mr. Hannigan was immediately taken into custody and sent to federal prison.
The defendant pleaded guilty in July 2019 to obstructing the due administration of the IRS and seventeen counts of preparing materially false income tax returns, in connection with owning and operating Payroll Professionals, Incorporated (“PPI”) located in Media, Pennsylvania. PPI is a third-party payroll processor, which assists its clients by issuing payroll checks and forwarding tax payments to federal, state, and local authorities. PPI’s clients were small- to medium-sized businesses, and the clients relied on Hannigan to prepare and file tax Form 941, among others, with the IRS. Form 941 details employee wages that were paid by a company, and payroll tax withheld and paid to the IRS based on those wages.
Beginning in January 2012 and continuing up to December 2016, Hannigan prepared and submitted Forms 941 that falsely reported information to the IRS. In particular, Hannigan reported depositing more money to pay tax debt than he had actually sent to the IRS, causing 35 of PPI’s client companies (who are considered victims in this case) to collectively underpay the IRS $3,270,566.89 for those tax years. These victims/companies gave Hannigan access to all necessary funds to pay the full tax debt, but Hannigan failed to do so. Hannigan hid his behavior from these victims/companies by presenting bogus documents that purported to be confirmation of payments he had made to the IRS on their behalf, and by re-directing IRS correspondence to his business address.
“This defendant – an accountant whose business it was to handle payroll taxes – committed fraud and stole from clients and the United States government,” said U.S. Attorney McSwain. “He also stole from the pockets of all taxpayers who do the right thing every year by paying their taxes. As we enter tax season this year, let this sentence serve as a warning to anyone who might be considering trying to get away with cheating the IRS: don’t do it – because it will not end well.”
“As the third-party payroll processor, Mr. Hannigan’s clients trusted him to prepare accurate employment tax returns and remit their payroll taxes to the IRS. Instead, he prepared fraudulent employment tax returns, lied to his clients and failed to remit their payroll taxes,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Today’s sentencing holds Mr. Hannigan accountable for his crimes and shows how serious IRS Criminal Investigation is about pursuing individuals who intentionally cheat not only their clients but the entire taxpaying public.”
The case was investigated by the IRS and the Treasury Inspector General for Tax Administration, and is being prosecuted by Assistant United States Attorney Jason Bologna.
Cuyahoga Falls man indicted for attempting to use explosives at Cuyahoga Falls High School and making threats to a Kansas elementary schoolRead the Press Release
Allen Martin Kenna, 18, of Cuyahoga Falls, Ohio, was charged in a two-count indictment for Attempted Use of an Explosive Device and Interstate Communication of Threats.
As alleged in the indictment, Kenna is charged with attempting to use an explosive device to damage or destroy buildings and real property associated with Cuyahoga Falls High School. Kenna is also charged with making threatening communications to a Kansas elementary school. Specifically, Kenna is alleged to have notified the Fort Rily Sheriff’s Office that he was holding a hostage inside of the school and that he would injure any person attempting to enter the school in response to this threat.
“The indictment alleges that the defendant attempted to construct an explosive device that was to be used in an attack on a local high school,” U.S. Attorney Justin Herdman stated. “The defendant is further alleged to have engaged in making interstate threats that were directed at another school in Kansas. Law enforcement takes seriously all concerns about potentially violent individuals, but where we have specific, credible threats of violence against the public, especially in our schools, we will act swiftly and with appropriate federal charges.”
“Thanks to the awareness of private citizens and the hard work of our law enforcement partners, what could have been a horrific and tragic day was stopped,” said FBI Special Agent in Charge Eric B. Smith. “Law enforcement has no higher priority than protecting others. We will continue to ensure our schools remain a safe place where young people go to learn and thrive. The FBI and our law enforcement partners urge parents, relatives, and friends to report suspicious and troubling behavior to authorities immediately.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the Federal Bureau of Investigation’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Duncan T. Brown.
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Cookeville Hospital Settles False Claims Act AllegationsRead the Press Release
NASHVILLE, Tenn. – February 14, 2020 – Cookeville Regional Medical Center Authority, has agreed to pay $4.1 million to settle allegations that it violated the False Claims Act (“FCA”), announced Don Cochran, United States Attorney for the Middle District of Tennessee. The alleged conduct involved payments to physicians in violation of the Anti-Kickback Statute and Stark Law.
“Federal statutes exist to protect the well-being of patients and to prevent improper influence on patient care by providers,” said U.S. Attorney Don Cochran. “The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively enforce the laws designed to protect the patient and the integrity of federal healthcare programs.”
The settlement resolves allegations by the United States and State of Tennessee that from January 2012 through December 2017, Cookeville Regional Medical Center (“CRMC”), a hospital in Cookeville, Tennessee, submitted false claims for payment to the Medicare program and to TennCare as a result of violations of the Federal Anti-Kickback Statute and the Stark Law. These violations related to financial arrangements between CRMC and physicians associated with its wholly owned subsidiary physician practice, CRMC MSO-Sub 1, Inc. d/b/a Tennessee Heart.
Under the terms of the agreement, the United States will receive $3,647,155.00 and the State of Tennessee will receive $452,845.00.
“The Stark Law prohibits hospitals and physicians from entering into improper financial relationships that can disrupt the physician decision-making process,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
“We are fortunate to have this strong relationship with our federal law enforcement partners, and continue to be diligent in pursuing false claim actions that have the potential to affect quality of our health care, in addition to costing consumers and taxpayers,” said TBI Director David Rausch.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against CRMC by a former employee who brought claims under the qui tam, or whistleblower, provisions of the FCA, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $779,000 as his share of the settlement.
This matter was investigated by the Department of Health and Human Services, Office of Inspector General; the Tennessee Attorney General’s Office; the Tennessee Bureau of Investigation; and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This case is docketed as United States ex rel. Seabury v. Cookeville Regional Medical Center Authority, d/b/a Cookeville Regional Medical Center, d/b/a Cookeville Regional Medical Group, Inc., f/k/a CRMC MSO, Inc., d/b/a CRMC MSO Sub-1, Inc., d/b/a Tennessee Heart, Civ. Action No. 2:15-cv-00065 (M.D. Tenn.).
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Construction Company Owner Charged with Fraudulently Obtaining More Than $2.75 Million in Chicago Housing Authority ContractsRead the Press Release
CHICAGO — The owner of a construction company has been indicted for allegedly fraudulently obtaining more than $2.75 million in Chicago Housing Authority contracts designed to benefit minority-owned businesses.
LESTER COLEMAN owned Coleman Development Corp., a Chicago-based construction company and certified minority-owned business. From 2010 to 2018, Coleman falsely represented to the CHA that his company would perform construction work sufficient to satisfy the agency’s minority-owned business requirements, which mandated that a certain percentage of work on CHA properties be performed by minority or women-owned enterprises, according to an indictment returned Thursday in U.S. District Court in Chicago. In reality, Coleman subcontracted nearly all of the work to a company that was not certified as a minority-owned business, the indictment states. Coleman, through his company, fraudulently obtained more than $2.75 million in payments from the CHA contracts, including for construction or rehab work on properties in the Chicago neighborhoods of West Ridge, North Park, Albany Park, Archer Heights, and Oakland, the indictment states.
The charges also allege that Coleman falsely represented and certified to the CHA that the employees performing the work were paid the prevailing wages required by federal labor laws, when, in fact, they were not paid the prevailing wages.
The indictment charges Coleman, 62, of Chicago, with three counts of wire fraud. An arraignment date in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Elissa Rhee-Lee, Inspector General of the CHA; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorney Stephen Heinze.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Complaints of fraud at the CHA may be reported to the CHA’s Office of Inspector General by clicking here.
Cincinnati police officer charged with lying to federal agents, submitting false tax returnsRead the Press Release
CINCINNATI – A Cincinnati police officer was arrested today and charged with making a false statement to federal agents and filing false tax returns.
Quianna Campbell, 39, of Cincinnati, appeared in federal court on the charges at 3pm today, at which point the charges against her were unsealed.
According to court documents, the Cincinnati Police Department and IRS Criminal Investigation began investigating Campbell for various criminal offenses related to financial benefits she received as a result of her employment with the department.
Campbell has been employed with the Cincinnati Police Department for 11 years.
As part of an ongoing investigation into alleged money laundering and other crimes associated with area nightclubs, investigators discovered text message conversation between Campbell and a nightclub owner.
Campbell allegedly responded to a text from the nightclub owner asking if an individual was an undercover officer. According to the affidavit filed in support of the criminal complaint, Campbell confirmed via text message that the person was an undercover officer and discussed with the club owner the possible reasons that the police department might investigate the nightclub.
When federal agents questioned Campbell about the text conversation, she allegedly lied to the agents. Campbell told the agents she would never confirm if an individual was a police officer because if they were working in an undercover capacity it would put them in danger.
Campbell also allegedly failed to report on her federal tax returns cash income that she earned working off-duty details.
According to police records, Campbell earned more than $81,000 total working off-duty details in 2015, 2016 and 2017. She did not report an accurate income when filing her taxes.
Making a false statement to a federal agent in punishable by up to five years in prison. Willfully filing a false tax return carries a potential maximum penalty of up to three years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Cincinnati Police Chief Eliot K. Isaac announced the charges. Assistant United States Attorney Kenneth L. Parker is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Chicago Woman Found Guilty for Role in $7 Million Scheme to Defraud MedicareRead the Press Release
A federal jury found a Chicago woman guilty today for her role in a scheme to defraud Medicare of approximately $7 million between 2011 and 2017.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the United States Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Division Office made the announcement.
After a four-day trial, Angelita Newton, 42, was found guilty of one count of conspiracy to commit health care fraud and wire fraud. Sentencing has been scheduled for Oct. 13, 2020 before U.S. District Judge Virginia Kendall of the Northern District of Illinois, who presided over the trial.
According to evidence presented at trial, from approximately 2011 to 2017, Newton worked at Care Specialists, a home health company based in Chicago, Illinois, and owned by Ferdinand Echavia, 46, and Ma Luisa Echavia, 44, both of Chicago. Newton was the Echavias’ employee and personal assistant. In that role, Newton conspired with the Echavias and others to submit claims to Medicare for unnecessary home health services for unqualified patients, or for visits that did not happen as billed, the evidence showed. Newton created and completed visit notes and other documents purporting to reflect nursing services purportedly rendered by Ferdinand Echavia with the knowledge that he was not actually providing the services. Newton was aware that Ferdinand Echavia was making cash payments to patients, which Newton knew to be illegal, the evidence showed.
The evidence at trial showed that between 2011 and 2017, Medicare paid Care Specialists approximately $7 million for home health care services.
Three other defendants have been charged in connection with the fraud at Care Specialists. Ferdinand Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 28, 2020, and is awaiting sentencing. Ma Luisa Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 29, 2020, and is awaiting sentencing. A former nurse at Care Specialists, Reginald Onate, 31, of Aurora, Illinois, pleaded guilty to one count of conspiracy to commit health care fraud, and is awaiting sentencing.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Leslie S. Garthwaite and Patrick Mott of the Criminal Division’s Fraud Section are prosecuting the case. Former Trial Attorney Jessica Collins of the Fraud Section previously handled the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chicago Man Charged in Criminal Complaint with Robbery Affecting Interstate Commerce of Hammond Boost Mobile StoreRead the Press Release
HAMMOND- Daniel Smith, 26, of Chicago, Illinois, was charged in a criminal complaint with robbery affecting interstate commerce of a Hammond Boost Mobile store, announced U.S. Attorney Kirsch.
The criminal complaint alleges that on January 24, 2020, Daniel Smith entered the Boost Mobile store located at 2741 169th Street, Hammond, Indiana, held employees at gunpoint, and ordered them to fill up a duffel bag with cellular phones, after which he left the store with the bag full of phones.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team and Hammond Police Department with assistance from the Merrillville and Hazel Crest, Illinois Police Departments. This case is being prosecuted by Assistant United States Attorney Caitlin M. Padula.
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Canadian Man Sentenced to 15 Months for Conspiracy to Commit Bank FraudRead the Press Release
CONCORD –Tharushan Nirmalachandran, 30, of Ile-Bizard, Quebec, was sentenced to 15 months in federal prison for participating in a conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today. Nirmalachandran faces likely removal to Canada after the completion of his prison sentence.
According to court documents and statements made in court, in April 2019, Nirmalachandran, Syed Hoque, and Ajitharan Raveendran, conspired with others to withdraw money from other persons’ bank accounts by using cloned debit cards at ATMs. A “cloned” debit card is a gift card or other type of card that has been re-encoded to contain other persons’ debit card information. Blank credit and debit or gift cards can be encoded with stolen credit and debit card information using an “MSR” or “Magnetic Stripe Reader” machine. An MSR machine can read and write the information stored in the magnetic stripe on the back of credit and debit cards.
On Friday, April 26, 2019, a witness reported to the Hudson Police Department that a man later identified as Hoque drove his car through an ATM in Hudson, New Hampshire, several times to make withdrawals. The Hudson Police responded and found Hoque in his car at the ATM. The officer saw that Hoque was holding a cell phone that was displaying several sets of numbers on the screen and saw a large amount of cash on the front passenger seat of his car and several ATM or credit cards on the center console.
A search of Hoque’s phone revealed text messages in an application called “WhatsApp” from the weekend of April 24 through 26, 2019. One group message chain from April 26, 2019, showed members of the conspiracy coordinating their activities as they withdrew money from ATMs with the cloned debit cards.
The trio was operating out of a hotel room in Methuen, Massachusetts. Hotel surveillance video showed that, early in the morning on April 27, 2019, Nirmalachandran and Raveendran carried large duffle bags out of their hotel room. Investigators later found duffle bags during a search of Nirmalachandran’s car that contained (i) a portable MSR machine; (ii) 103 Visa, American Express, and MasterCard gift cards, 96 of which contained cloned debit card information; (iii) over $51,000 United States currency; and (iv) a Hewlett Packard laptop computer. A later search of the computer revealed text files that contained over 170 debit card numbers.
In total, from April 25, 2019, through April 27, 2019, members of the conspiracy successfully withdrew at least $43,980.00 and attempted to withdraw an additional $69,900.00 from other people’s bank accounts using cloned debit cards.
Nirmalachandran previously pleaded guilty on November 4, 2019. In addition to his prison sentence, Nirmalachandran was ordered to pay $$43,980. The defendants in the case also have been ordered to forfeit over $61,000.
Hoque pleaded guilty December 13, 2019 and is scheduled to be sentenced on April 1, 2020.
Raveendran pleaded guilty on November 14, 2019 and will be sentenced on February 28, 2020.
“Those who commit bank fraud cause serious damage by stealing money from their victim’s bank accounts, driving up business costs, and undermining confidence in the banking system,” said U.S. Attorney Murray. “We will not hesitate to seek federal prison sentences for those who attempt to steal hard-earned money from innocent victims. I am grateful to the law enforcement officers whose excellent work led to this successful prosecution.”
“The U.S. Secret Service appreciates the coordination between local, federal and international partners. This cooperation is crucial when investigating trans-national criminal organizations that operate under the assumption they will not be detected in another country,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office.
This matter was investigated by the United States Secret Service, with assistance from the Hudson and Methuen Police Departments. The case is being prosecuted by Assistant U.S. Attorney Matthew Hunter.
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Baltimore Man Sentenced to Nine Years in Federal Prison for His Participation in an Armed Robbery of a RestaurantRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Joseph Coates, age 29, of Baltimore, Maryland, today to nine years in federal prison, followed by five years of supervised release, for an armed commercial robbery in which a firearm was brandished.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
As detailed in guilty plea, on February 21, 2018, Coates and co-conspirator Jason Walker robbed a restaurant in the 2200 block of Wilkins Avenue in Baltimore. Coates admitted that during the robbery, Walker pointed a handgun at one of the victims, while Coates took all the money from the cash register and tip jar. In addition, Coates and Walker took the victims’ personal cell phones before fleeing the restaurant.
After receiving a 911 call to report the robbery, a Baltimore Police officer was canvassing the area and saw two men in an alley who matched the description provided by the victims. The men were standing by a wall counting cash. Officers detained the men and brought one of the victims to the location. That person identified Coates as one of the men that had committed the robbery. Officers arrested and searched Coates and Walker, recovering $272 in cash, a plastic bag full of change, blue bandanas, a black mask, two cellular telephones that belonged to two of the victims of the robbery, and a receipt from the restaurant. Officers also recovered a fully loaded revolver from the area where Coates and Walker were counting money. Walker admitted that it was the gun he brandished during the robbery of the restaurant.
Jason Walker, age 31, of Baltimore, Maryland, was previously sentenced to 121 months in federal prison, for his role in the robbery.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker, who is prosecuting the case.
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Animal Health International Inc. Pleads Guilty to Introduction of Misbranded Drugs into Interstate CommerceRead the Press Release
Abingdon, VIRGINIA – Animal Health International Inc., a Colorado corporation that obtains prescription drugs for animals from manufacturers for further distribution to veterinarians, farms, feedlots, and other facilities, pleaded guilty today, through its corporate counsel, in U.S. District Court to introducing a misbranded drug into interstate commerce. Also, Patterson Companies, Inc. (Patterson) Animal Health International’s corporate parent, entered into a non-prosecution agreement in which it committed to enhance its compliance program and fully comply with the law. United States Attorney Thomas T. Cullen and Special Agent in Charge Mark S. McCormack of the FDA’s Office of Criminal Investigations Metro Washington Field Office, made the announcement today.
Pursuant to the agreements entered into by Animal Health International and Patterson, Animal Health International admitted to introducing and causing the introduction and delivery into interstate commerce of veterinary prescription drugs that were misbranded and agreed to pay $1 million to the Virginia Department of Health Professionals, a $5 million fine, and a forfeiture money judgement of $46,802,203. In past 18 months, Patterson has fully cooperated in the investigation and implemented changes to International’s and its compliance programs to prevent further violations of federal and state law.
“Today’s conviction demonstrates that our office will not tolerate when entities or individuals illegally bypass the important safeguards that exist to protect our nation’s food sources,” First Assistant United States Attorney Daniel P. Bubar said today. “We will continue to work closely with our partner agencies to make sure that veterinary drug distributors uphold their important obligations.”
“The FDA recognizes the importance of controlling the prescription drug supply for animals. The careless or uncontrolled distribution of prescription animal drugs poses a danger not only to the medicated animals but to the U.S. public health by increasing the risk that humans will become resistant to antibiotics that we unknowingly consume through our food supply.,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who distribute prescription animal drugs unlawfully.”
The Food and Drug Administration’s restrictions on veterinary prescription drugs are not primarily to protect animals from the potential harms of prescription drugs, but are to protect the human food supply from unsafe drug residues in the edible tissues of animals sold for slaughter. Common causes of illegal residues include: (1) exceeding the drug’s approved dose; (2) using a shorter withdrawal period than what is stated on the drug’s label (if a higher than approved dose is given, the labeled withdrawal period may not be enough to allow the drug in the edible tissues to deplete to levels that are at or below the tolerance); (3) using a drug in an extra-label manner (for indications and dosages outside the approved labeling) without a veterinarian’s involvement; (4) giving a drug not approved for that species; and (5) using an unapproved route of administration. Drug residues in the nation's drug supply are concerning because: (1) they may contribute to antibiotic resistance in the human population, rendering human drugs less effective to treat human disease and contributing to the mutations of “superbugs”; and (2) they may cause allergic reactions in individuals with certain drug allergies.
According to court documents, from 2012 through 2018, Animal Health International caused misbranded veterinary prescription drug shipments to be made throughout the United States by distributing veterinary drugs from its wholesale locations directly to end users and by distributing veterinary drugs to unlicensed individuals.
Two such unlicensed individuals, Marlin Webb and Billy K. Groce, were not properly licensed to receive, transport, store, distribute, or dispense veterinary prescription drugs. Webb was the store manager of a cooperative in Hillsville, Virginia. The cooperative was not a licensed wholesaler, pharmacy, or veterinary clinic. Groce operated an unlicensed veterinary prescription distribution business. Webb and Groce each obtained veterinary prescription drugs from Animal Health International in interstate commerce without valid prescriptions, and on many occasions, with no prescriptions at all. Webb and Groce previously pled guilty to criminal charges for their conduct in United States District Court in Abingdon.
While, as stated in the charge to which Animal Health International pleaded guilty, Animal Health International obtained not less than $46,802,203 from its illegal shipments, its profits from such shipments were a small percentage of the amount received.
United States District Judge James P. Jones scheduled sentencing for April 28, 2020 at 2:30 p.m.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations with the assistance of the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Aliquippa Man Sentenced for Conspiring to Distribute DrugsRead the Press Release
PITTSBURGH – Darren Martin was sentenced to 27 months in federal prison for conspiring to distribute cocaine and fentanyl, United States Attorney Scott W. Brady announced today.
Martin, age 31 of Aliquippa, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also sentenced Martin to serve three years of supervised release upon his release from prison.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Alcester Man Charged with Wire Fraud and Mail FraudRead the Press Release
United States Attorney Ron Parsons announced that an Alcerster, South Dakota, man has been indicted by a federal grand jury for 12 Counts of Wire Fraud and 8 Counts of Mail Fraud.
Christopher Day, age 31, was indicted on February 4, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 12, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $2,000 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between 2015 and 2019, Day, who worked for Pedersen Machine located in Beresford, South Dakota, knowingly and unlawfully devised a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations, and promises.
The Indictment also alleges that between 2018 and 2019, Day knowingly caused to be sent and delivered by the U.S. Postal Service invoices for transactions involving Day’s shell business, which were sent to Day from his employer.
Day would order parts for himself, which he would resell online. Day would make it appear as though those parts were ordered on behalf of his employer’s customers. He would then cancel the orders, but still keep the parts.
The charges are merely accusation and Day is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Division of Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Day was released on bond pending trial. A trial date has not been set.
Albany Felon Charged with Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Saul McDuffie, age 32, of Albany, was indicted yesterday on a charge of unlawfully possessing a firearm as a felon. The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Chief Eric Hawkins of the Albany Police Department.
The indictment alleges that McDuffie, a felon, possessed a Taurus handgun in Albany on October 28, 2019. The charge carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
McDuffie was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial before Chief United States District Judge Glenn T. Suddaby.
This case is being investigated by the Albany Police Department and HSI, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel L. Williams.
Acushnet Man Pleads Guilty to Conspiring to Distribute Fentanyl and Illegal Firearm PossessionRead the Press Release
BOSTON – An Acushnet man pleaded guilty yesterday in federal court in Boston to conspiracy to distribute fentanyl and illegal firearm possession.
Clifford Gomes, 54, pleaded guilty to one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for June 16, 2020. Gomes was indicted by a federal grand jury on May 15, 2019.
Between January 2018 and April 2019 Gomes conspired with Manuel Pina-Agee, and others, to distribute and possess with intent to distribute fentanyl.
On Nov. 26, 2019, Pina-Agee pleaded guilty to various drug trafficking charges and illegal possession of firearms. Pina-Agee is scheduled to be sentenced on March 27, 2020.
The charge of conspiracy to distribute fentanyl provides for a sentence of up to 40 years in prison, four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the New Bedford, Wareham and Seekonk Police Departments. Assistant U.S. Attorneys Theodore B. Heinrich and Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
64 White Supremacists Sentenced to a Combined 820 Years in Federal PrisonRead the Press Release
Sixty-four individuals with ties to various white supremacist gangs have been convicted and sentenced to a combined 820 years in federal prison following an investigation led by the Texas Department of Public Safety, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
This marks the second round of sentencings in what is believed to be the nation’s largest prosecution of white supremacist gang affiliates. In the first round, announced in August 2017, 89 defendants were convicted and sentenced to a combined 1,070 years in federal prison.
The 64th and final defendant in this round, 51-year-old Garry Cody Jones, was sentenced Thursday by U.S. District Judge Sidney A. Fitzwater to more than 11 years’ imprisonment on a charge of possession with intent to distribute methamphetamine.
All together, this round’s defendants – members or affiliates of white supremacists gangs including Aryan Circle, Aryan Brotherhood, the Peckerwoods, Soldiers of Aryan Culture, and the Dirty White Boys – were sentenced for trafficking more than 1,600 kilos of meth, 59 firearms, and various other drugs, including cocaine and heroin, between 2015 and 2018, according to court records.
Several of the defendants, including Ralph Adams, aka “Evil,” and Jerry Lunsford, aka “Looney,” kidnapped, threatened, and assaulted individuals they believed had stolen their drug proceeds. One defendant, Justin Mark Nelson, aka “Nazi,” even admitted to using a hatchet to amputate a victim’s finger in retribution for a purported drug debt. Another defendant, Joshua Lane, who sports a large tattoo of Adolf Hitler on his head, attempted to run over officers during his arrest.
“Not only do white supremacist gangs endorse repugnant ideologies, they also facilitate a violent drug and gun trade, putting our citizens in grave danger,” said U.S. Attorney Erin Nealy Cox. “We were alarmed – but not necessarily surprised – at the quantities of drugs and firearms recovered during this investigation. The U.S. Attorney’s Office is committed to working with our law enforcement partners to dismantle these organizations, disrupt their criminal activities, and put their members behind bars.”
“Thanks to the hard work of our investigators and the diligence of the U.S. Attorney’s Office, 64 criminals are now off our streets and out of our communities,” said Texas DPS Regional Director Jeoff Williams. “Effective law partnerships are vital to operations like this and are instrumental in the making the state of Texas a safer place to live.”
The vast majority of defendants charged in this round, with charges announced in May 2018 following a massive takedown, had violent criminal histories. Combined, they had 587 prior convictions; certain defendants had as many as 28 prior convictions.
This investigation was led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID) Gang Unit and the Dallas Police Department. The U.S. Marshal Service North Texas Fugitive Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, and the Garland Police Department assisted in the investigation.
The Texas Anti-Gang Center, or TAG, coordinated the law enforcement operation. The TAG serves as the unified headquarters for roughly 100 of the region’s most knowledgeable and experienced federal, state and local anti-gang investigators, analysts and prosecutors.
Assistant U.S. Attorney P.J. Meitl was in charge of these prosecutions.
13 Defendants Charged with Submitting Millions of Dollars in False Transportation Claims to MedicaidRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of the New York Field Office of the Department of Homeland Security Investigations (“HSI”), Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), and Dennis Rosen, New York State Medicaid Inspector General (“OMIG”), announced the unsealing of a Complaint charging thirteen defendants with participating in a scheme to steal millions of dollars from New York State’s Medicaid program through fraudulent claims related to transportation services.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants exploited and abused Medicaid, billing millions of dollars for phantom medical transportation services. Medicaid is intended to provide financial assistance to those in need. These defendants allegedly treated the Medicaid program that pays for medical transport as an opportunity to steal from Medicaid, which is indirectly stealing from American taxpayers. Now they face prosecution for their alleged crimes.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “It is alleged that these individuals schemed to defraud the Medicaid program out of millions of dollars, in turn robbing all those who rely on it for their vital healthcare needs. More than a dozen were involved in this plan to charge for services not rendered, and HSI working with its law enforcement partners arrested those who sought to make a profit at the expense of those in need and will continue to do so.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Millions of people in New York depend on Medicaid for vital services, and taxpayers across the country pay for that care. We will continue close cooperation with our State and Federal law enforcement partners to preserve this essential funding.”
NYS Medicaid Inspector General Dennis Rosen said: “Today’s arrests send an unmistakable message to those who seek personal gain by preying upon vulnerable New Yorkers and exploiting the Medicaid program. My office will continue to work closely with our federal partners to protect Medicaid recipients, save taxpayer dollars, and hold wrongdoers fully accountable.”
As alleged in the criminal Complaint unsealed today:
From in or about August 2017 to February 2020, KJ Transportation C Services Inc. (“KJ”) was paid more than $20 million for providing transportation services for Medicaid enrollees in the New York City area.
JORGELINA ABREU GIL, 32, of Yonkers, New York, is the owner of KJ. Her husband, JULIO ALVARADO, 59, of Yonkers, is a manager at the company. Beginning in August 2017, KJ began submitting claims to Medicaid for purported medical transportation services for eligible people in the New York area. From August 2017 to February 2020, KJ submitted more than 100,000 claims related to hundreds of thousands of trips. However, a large percentage of those claims were fraudulent. In some instances, the Medicaid recipient was deceased or out of the country when KJ claimed it was transporting that person to medical appointments. In other instances, the Medicaid recipient had never heard of KJ and had never taken any rides with the company. In yet other instances, the Medicaid recipient had received unlawful “kickbacks” from defendants in exchange for either giving KJ his/her Medicaid information, or for fraudulently scheduling trips he/she did not take.
In hundreds of instances, defendants called Medicaid’s transportation management company for the New York City area and scheduled trips on behalf of Medicaid enrollees. On these calls, the defendants tried to schedule reoccurring trips several times per week that would go on for months, allowing them to bill dozens of trips to Medicaid without having to schedule each trip individually. In other instances, defendants scheduled trips online. ABREU GIL attested to nearly all of the trips, fraudulently certifying that the trips actually took place when, in fact, most did not.
HECTOR SALAZAR HERRERA, 27, of the Bronx, New York, ZORAIDA GONZALEZ, 44, of Yonkers, New York, YESENIA RODRIGUEZ, 37, of Yonkers, JOSE RIVERA, 26, of the Bronx, FABIAN MORGAN, 39, of the Bronx, VICTORIA PALMA BREA, 32 of the Bronx, CRISTOPHER SANTOS FELIX, 28, of the Bronx, JOHN MANUEL MEJIA, 41, of the Bronx, JOSE JIMENZ HIDALGO, 42, of the Bronx, FRANCISCO SALAZAR, 68, of the Bronx, and NELSON DIAZ, a/k/a “Abdul Alamin,” 56, of the Bronx, acted as “drivers” or “recruiters” of Medicaid enrollees. As detailed in the Complaint, the defendants variously paid Medicaid enrollees to schedule fraudulent trips, paid unlawful kickbacks to Medicaid enrollees, and fraudulently scheduled trips that never took place. In exchange for their work, the “drivers” or “recruiters” were paid up to hundreds of thousands of dollars.
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ABREU GIL, ALVARADO, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, MEJIA, JIMENEZ HIDALGO, SALAZAR, and DIAZ were arrested this morning and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. SANTOS FELIX was already in federal custody on unrelated charges and will be presented at a later date.
ABREU GIL, ALVARADO, SALAZAR HERRERA, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, SANTOS FELIX, MEJIA, JIMENZ HIDALGO, SALAZAR, and DIAZ are each charged with one count of submitting false claims, in violation of 18 U.S.C. § 287; one count of theft of government funds, in violation of 18 U.S.C. § 641; one count of aggravated identity theft, in violation 18 U.S.C. § 1028A; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of health care fraud, in violation of 18 U.S.C. § 1347; one count of conspiracy to commit wire fraud and health care fraud, in violation of 18 U.S.C. § 1349; and one count of violating the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b. In addition, ABREU GIL and ALVARADO are each charged with one count of money laundering, in violation of 18 U.S.C. § 1957.
The crime of submitting false claims carries a maximum sentence of five years in prison. The crimes of theft of government funds, health care fraud, money laundering, and violating the Anti-Kickback Statute each carry a maximum sentence of 10 years in prison. The crime of wire fraud carries a maximum sentence of 20 years in prison. The crime of aggravated identity theft carries a mandatory two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
On February 14, 2020, law enforcement officers also executed seizure warrants in an effort to recover millions of dollars in fraud proceeds obtained by the defendants.
Mr. Berman praised the outstanding work of HSI, HHS-OIG, and OMIG. He also thanked the City of Yonkers Police Department, the New York City Police Department, the New York Attorney General’s Medicaid Fraud Control Unit, and United States Customs and Border Protection for their assistance in the case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Kedar S. Bhatia is in charge of the prosecution.
As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Thursday 13 February 2020
Woman who schemed to hide millions from Bankruptcy Court sentenced to 3+ years in prisonRead the Press Release
Seattle – A former Bellevue, Washington, resident who relocated to Miami, was sentenced today in U.S. District Court in Seattle to 38 months in prison, three years of supervised release, and $2,359,914 in restitution for bankruptcy fraud. MARINA BONDARENKO, 38, operated a ‘work-at- home’ email scheme that ultimately crashed – but not before she and her partner raided the cash to purchase homes, expensive cars, and a yacht. The two set up a series of trusts to try to hide the diverted assets from the bankruptcy trustee after the sham company declared bankruptcy. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said he was concerned about respect for the law. “She submitted false documents in two different judicial proceedings,” Chief Judge Martinez said. “She committed perjury – she took the witness stand and lied.”
According to records filed in the case, between July 2013 and March 2014, BONDARENKO and her partner, Volodimyr Pigida, siphoned off more than $3 million from a company they had established that essentially operated as a Ponzi scheme. The pair used the money to purchase four properties, a yacht, and numerous cars. As the Ponzi scheme unraveled, the company filed for bankruptcy protection. BONDARENKO and Pigida never revealed to the bankruptcy court that they had looted the company coffers and transferred assets purchased with that money to ten trusts they had established. In all, the pair attempted to conceal $3,334,750 in assets from the bankruptcy court and creditors.
BONDARENKO and her now-husband Pigida were indicted for conspiracy, mail, wire, and bankruptcy fraud in November 2018. In September 2019, BONDARENKO pleaded guilty to bankruptcy fraud. Pigida is scheduled for trial on the indictment in September 2020.
The company the two formed, Trend Sound Promoter AMG Corp., was supposed to conduct advertising and music promotion over the internet. The couple sold Ad-promoting packages whereby those who bought a package were to be paid for email marketing. The couple made claims to those purchasing the packages that they could make big money for sending emails on Trend Sound’s behalf. In reality, the only money being generated was from those purchasing the packages, and it was used to pay earlier purchasers as in a typical Ponzi scheme. As purchasers got wise and the money started to run out, BONDARENKO and Pigida accelerated their looting of the company, eventually transferring $3.3 million out of the company for their personal benefit.
The two even filed suit in King County Superior Court in an attempt to stop an unhappy customer from warning others about the company’s sham offering. In her plea agreement, BONDARENKO admitted to providing perjured testimony in that proceeding.
The case is being investigated by the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Marie Dalton.
Wichita Bank Robber Did Not Get FarRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today in federal court to robbing a bank, U.S. Attorney Stephen McAllister said.
Timothy B. Riggans, 57, Wichita, Kan., pleaded guilty to committing a robbery July 30, 2018, at Emprise Bank, 257 N. Broadway in Wichita. Riggans approached a teller and demanded money. A security guard apprehended him outside the bank with the stolen money.
Sentencing is set for May 11. He could face a penalty of up to 20 years in federal prison and a fine up to $250,000.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Waterbury Gang Member Admits Role in Shootings that Killed and Wounded Innocent BystandersRead the Press Release
U.S. Attorney John H. Durham, Waterbury State’s Attorney Maureen Platt, ATF Boston Field Division Special Agent in Charge Kelly D. Brady, FBI New Haven Division Special Agent in Charge Brian C. Turner, and Waterbury Police Chief Fernando C. Spagnolo, today announced that JERMAINE GILBERT, 21, of Waterbury, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to racketeering, firearm possession and drug trafficking offenses stemming from his participation in a violent Waterbury street gang.
According to court documents and statements made in court, this matter stems from a long-term investigation into drug trafficking and numerous acts of violence being committed by members of “960,” a street gang operating in Waterbury’s north end. During the investigation, ATF, FBI and Waterbury Police investigators have analyzed dozens of shooting incidents between 960 members and members of rival gangs. Some of the shootings resulted in innocent bystanders being killed or seriously wounded.
In pleading guilty, Gilbert, a member of 960, admitted that he and other members and associates of 960 engaged in narcotics distribution and acts of violence, including murder and assaults. Gilbert specifically admitted that, on October 6, 2018, he and other 960 members intended to shoot a rival gang member who they believed had been disrespectful to 960, but instead wounded an innocent bystander. On October 11, 2018, Gilbert and his associates conspired to shoot another rival gang member, but instead killed an innocent bystander and paralyzed a second innocent bystander. On November 18, 2018, Gilbert and other 960 members shot and wounded the rival gang member who was their intended target on October 6, 2018. During this shooting, another innocent bystander was wounded.
Gilbert has been detained since his arrest on May 17, 2019. At the time of his arrest, he possessed a .22 caliber Beretta pistol, a 9mm Taurus pistol, multiple rounds of ammunition, and heroin that he intended to distribute.
Gilbert pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, which carries a maximum term of imprisonment of life, one count of possession with intent to distribute heroin, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive prison term of at least five years.
“Through a reinvigorated Project Safe Neighborhoods program in Waterbury, the ATF, FBI and Waterbury Police have identified several reckless gang members who wreaked havoc in the city and killed or maimed not only each other, but, more important, multiple innocent bystanders,” said U.S. Attorney Durham. “I thank our law enforcement partners, specifically Chief Spagnolo, for their committed efforts, and the Waterbury State’s Attorney for agreeing to bring the force of both the state and federal justice systems to help put an end to this mindless violence and remove these bad actors from the community for a long time. Clearly, this investigation is ongoing.”
“The Waterbury State’s Attorney’s Office would like to express their gratitude to the U.S. Attorney’s Office and the federal law enforcement agencies involved for their hard work and commitment in helping to end the violence brought about by gang activity in this area,” said Waterbury State’s Attorney Platt. “We would also like to commend the professionalism and dedication of the Waterbury Police Department in this multi-agency investigation and prosecution.”
“ATF will continue working with our local, state and federal law enforcement counterparts to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade,” said ATF Special Agent in Charge Brady. “This is another example of ATF’s commitment to rid our communities of dangerous criminals, drugs and illegal firearms.”
“The Waterbury Police Department and all of the law enforcement partners have done a phenomenal job in rooting out those members of a violent street gang responsible for the senseless shootings of innocent residents of the community,” said FBI Special Agent in Charge Turner. “We at the FBI are committed to assisting Waterbury Police in every way possible to destroy gang-related crimes in and round the city.”
“The Waterbury Police Department is proud of its partnerships with the ATF and FBI and appreciative of the strong support from the U.S. Attorney and Waterbury State’s Attorney and the members of their respective offices,” said Waterbury Police Chief Spagnolo. “These committed partnerships are the backbone in making our community a safer place and keeping it that way through targeting violent crime problems in our City, along with education and community outreach.”
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson, Patrick F. Caruso and Natasha M. Freismuth, and Assistant State’s Attorneys Cynthia S. Serafini and Don E. Therkildsen, who have been cross designated as Special Assistant U.S. Attorneys in this matter.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Vance County Man Sentenced to More Than Six Years Imprisonment on Drug and Gun ChargesRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge James C. Dever, III, sentenced PRESTON OBRYAN MILES, 35, of Kittrell to 78 months’ imprisonment, followed by 3 years of supervised release. MILES was named in a two-count Indictment on July 10, 2019, charging him with possession with intent to distribute heroin and cocaine and possession of firearms in furtherance of a drug trafficking crime. On November 1, 2019, he pled guilty to the Indictment.
According to the investigation, on Saturday, July 21, 2018, a Franklinton Police Department officer was on patrol near NC 56 in Franklinton, North Carolina, when he saw a black Toyota Camry with heavily tinted windows. As he began following the Camry, he could smell marijuana, and he noticed that the smell diminished when he switched lanes away from the car. The officer ran the tag and also found that the registered owner had an expired license.
The officer initiated a traffic stop and made contact with the driver, who was identified as MILES. The smell of marijuana was strong, and the officer spotted several partially smoked marijuana cigarettes inside the car. Backup arrived and officers searched the car. They noticed that the carpet liner in the trunk was not attached on the edges. In the space between the carpet liner and the frame of the car, officers found a plastic bag containing a cardboard box, which itself contained two bricks of heroin—approximately 100 single-dose bags. The box also contained two loose bindles of 10 bags each, a plastic baggie of approximately 3 grams of raw heroin, and tools of the drug trade, including a wooden stamp with a Mercedes symbol, a bag of small rubber bands, and scotch tape. Further back between the carpet liner and side of the car, officers found a black FN 5.7x28mm pistol.
Officers later reviewed communications from jail, in which Miles, in discussing his car, directed a woman to get items out of “the head” and stated that that “I got a brick in the head.” On July 26, 2018, law enforcement obtained a search warrant to re-search the car. They found a digital scale hidden in a hole in the bottom of the passenger seat headrest, and behind the scale, they found a brick of heroin and a plastic bag of cocaine. Using a camera to search deeper into the area between the carper liner and the passenger side of the car, officers located a second handgun, a Smith & Wesson revolver.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Franklinton Police Department, State Bureau of Investigation, and Department of Homeland Security conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
VELVA, ND Woman and MINOT, ND Man Arrested for Multiple Counts of Producing, Receiving and Distributing Child PornographyRead the Press Release
Bismarck – United States Attorney Drew H. Wrigley announced that two co-defendants have been indicted and detained on federal child exploitation charges. On February 11, 2020 Katie Heidinger of Velva, ND made her initial court appearance on Six Counts of Producing Sexually Explicit Images of Minors and One count of Distribution of Sexually Explicit Images of Minors. Today in federal court, Magistrate Judge Hochhalter ordered that Heidinger be detained without bond, pending trial. Co-defendant Derrick Walker of Minot, ND is charged by the grand jury with the same six counts of production and is also charged in separate count of Receipt of Images Depicting the Sexual Exploitation of Minors. On February 10, 2020, Walker was ordered to be detained, pending trial on the matter. An Indictment is an accusation and notice of charges, and the defendants are presumed innocent until proven guilty.
"The Federal grand jury has issued indictments alleging numerous counts of child sexual exploitation against Katie Heidinger of Velva, ND and Derrick Walker of Minot, ND," said U.S. Attorney Drew Wrigley "and we are preparing to move toward trial and justice for the multiple child victims in this case."
The federal grand jury indictment alleges that Katie Heidinger possessed numerous videos and images depicting the sexual exploitation of minor children "John Doe One", "John Doe Two", "John Doe Three", "John Doe Four", "Jane Doe One", and "Jane Doe Two". Federal and State investigators allege that Katie Heidinger was involved in a romantic relationship with Derrick Walker and that Heidinger produced and distributed the videos and images, using the internet, at Walker’s request. Heidinger was initially arrested and charged in McHenry County, ND, and remains charged there with multiple counts of Gross Sexual Imposition. Walker was arrested and initially charged in Ward County and currently has no state charges pending.
This case was investigated by the McHenry County Sheriff’s Office, Ward County Sheriff’s Office, North Dakota Bureau of Criminal Investigation, and the Department of Homeland Security, Minot Office.
Assistant United Sates Attorney Gary Delorme is prosecuting the case.
Utah Tax Return Preparers Indicted for Tax CrimesRead the Press Release
A federal grand jury in Salt Lake City, Utah, returned an indictment today charging Sergio Sosa, and his adult children, Alissa and David Sosa, with conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney John W. Huber for the District of Utah. Sergio Sosa was also charged with one count of tax evasion, and he and his children were also each charged with one count of corruptly endeavoring to obstruct the administration of the internal revenue laws.
According to the indictment, Sosa owned and operated Sergio Central Latino (SCL), a tax return preparation business in Orem, Utah, where both Alissa and David worked. From 2003 through 2017, Sosa allegedly did not timely file his personal tax returns and after multiple audits, the Internal Revenue Service (IRS) determined that he owed more than $750,000 in unpaid taxes. When the IRS began collection efforts, Sosa and his children allegedly agreed to obstruct IRS collection of the outstanding taxes by hiding Sosa’s personal assets, residential properties, and by titling SCL in the children’s names.
The indictment also alleges that when the IRS suspended SCL’s ability to electronically file client tax returns due to Sosa’s unpaid taxes, David Sosa changed SCL’s business name and obtained electronic filing authorization in a third party’s name. It is further alleged that Alissa Sosa falsely represented to the IRS that she owned a residence that was, in fact, her father’s, and that she withdrew funds from an account that she knew had been levied by the IRS. As of 2019, Sosa allegedly owes more than $1.1 million in taxes, penalties, and interest.
If convicted, the Sosas each face a statutory maximum sentence of five years in prison for the conspiracy charge and three years in prison for corruptly endeavoring to obstruct the administration of the internal revenue laws. Sergio Sosa faces an additional five years in prison for tax evasion. The Sosas also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Ruth Hackford-Peer, and Trial Attorney Erin S. Mellen of the Tax Division, who are prosecuting the case.
Two headed to prison for selling machine guns destined for MexicoRead the Press Release
McALLEN, Texas — Two South Texas men have been ordered to federal prison following their convictions of transferring machine guns, announced U.S. Attorney Ryan K. Patrick.
Martin Guerra, 44, Palmview, and Saul De La Garza, 46, Sullivan City, pleaded guilty Nov 25, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced Guerra to 50 months in federal prison while De La Garza, a previously convicted felon, received a total 78-month term of imprisonment. Both men will then serve three years of supervised release following completion of their prison terms. In handing down the sentence, Judge Alvarez stressed the significant nature of the crime both men committed and noted the demand for firearms in Mexico.
Both men had attempted to coordinate the sale of three machine guns - two Glock auto-switches and an AR-style rifle - to undercover authorities. The men believed the weapons would ultimately be illicitly transported to Mexico. Through the course of the investigation, Guerra bragged that he would be able to provide as many weapons as desired. De La Garza claimed he would be able to transport firearms from Houston to the Rio Grande Valley and coordinated with Guerra to make the sale of the machine guns.
Guerra has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future, while Garza was permitted to remain on bond and voluntarily surrender at a later date.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Mitchell Prosecuted the case.
Two Members of Bronx Gang Charged with Racketeering, Firearms, and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging two members of the Woodycrime gang (“Woodycrime”) with various racketeering, firearms, and narcotics offenses, including assault with a deadly weapon and attempted murder in aid of racketeering for committing a June 7, 2018, shooting in Nelson Playground in the Bronx, during which two individuals, including a 13-year-old child, were struck by gunfire.
The defendants, MARVIN GAMONEDA, a/k/a “June,” and LUILLY FERNANDEZ, a/k/a “Luigi,” were taken into custody yesterday evening. They will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants carried out a shooting in a playground that injured two individuals, including a child. Thanks to the extraordinary work of the FBI and the NYPD, the defendants now face federal charges for their crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, these men fired off weapons at a playground, and a child was hit, all because they wanted to protect their turf. It’s not their turf, it’s not their land, they don’t own it, and everything they’re allegedly doing is illegal and potentially deadly. I want to commend the outstanding work of the New York FBI/NYPD Metro Safe Streets Task Force for the investigation that led to the arrest of these two men, and doing all they can to get alleged criminals who show no respect for anyone’s life out of the communities they’re terrorizing.”
NYPD Police Commissioner Dermot Shea said: “The NYPD, in close cooperation with our federal partners, is making New Yorkers safer by focusing significant resources on the relatively small percentage of criminals responsible for much of our city’s crime and disorder. I commend the NYPD officers, federal investigators, and prosecutors whose hard work resulted in these arrests and charges.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
Woodycrime was a criminal enterprise involved in committing numerous acts of violence, including attempted murders and assaults, as well as drug dealing in the Bronx. Members and associates of Woodycrime engaged in violence to retaliate against rival gangs, to preserve and expand the gang’s territory, and to protect the gang’s narcotics business. Members and associates of Woodycrime enriched themselves by selling drugs, such as crack cocaine, marijuana, oxycodone, and MDMA or “ecstasy.”
The Indictment charges GAMONEDA and FERNANDEZ in Count One with participating in a racketeering conspiracy. Counts Two through Four charge the defendants with conspiracy to commit murder, assault with a deadly weapon and attempted murder in aid of racketeering, and a related firearms offense in connection with the Nelson Playground shooting. Counts Five and Six charge the defendants with narcotics conspiracy and a related firearms offense. Count Seven charges GAMONEDA with being a felon in possession of ammunition.
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Charts containing the names, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and the FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Karin Portlock and Andrew Chan are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
MARVIN GAMONEDA (33)
LUILLY FERNANDEZ (26)
20 years in prison
2
Conspiracy to commit murder in aid of racketeering
18 U.S.C. § 1959
MARVIN GAMONEDA
LUILLY FERNANDEZ
10 years in prison
3
Assault with a deadly weapon and attempted murder in aid of racketeering
18 U.S.C. § 1959
MARVIN GAMONEDA
LUILLY FERNANDEZ
20 years in prison
4
Using and carrying firearms during and in relation to, and possessing firearms in furtherance of, a crime of violence, which firearms were discharged
18 U.S.C. § 924(c)
MARVIN GAMONEDA
LUILLY FERNANDEZ
Life in prison
Mandatory minimum of 10 years in prison
5
Narcotics trafficking conspiracy
21 U.S.C. § 846
MARVIN GAMONEDA
LUILLY FERNANDEZ
5 years in prison
6
Using and carrying firearms during and in relation to, and possessing firearms in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c)
MARVIN GAMONEDA
LUILLY FERNANDEZ
Life in prison
Mandatory minimum of 5 years in prison
7
Possessing ammunition after being convicted of a felony
18 U.S.C. § 922(g)
MARVIN GAMONEDA
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Two MS-13 Members Each Sentenced to 27 Years in Federal Prison for Participating in a Violent Racketeering Conspiracy, Including MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced two MS-13 gang members, Jose Alberto Sibrian Garcia, a/k/a Chango, age 28, and Carlos Hernandez Diaz, a/k/a Positivo, age 29, both of Silver Spring, Maryland, to 27 years each in federal prison, followed by five years of supervised release, on a federal racketeering charge related to their participation in a violent racketeering conspiracy, specifically MS-13, including murders. Hernandez Diaz was sentenced today and Sibrian Garcia was sentenced yesterday.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“MS-13 members are committing horrifying acts of violence in Maryland. We must not allow these criminals to ravage our communities, spreading fear in their wake,” said U.S. Attorney Robert K. Hur. “Federal, state, and local law enforcement will use all the tools at our disposal to arrest and prosecute gang members who prey on our neighbors. We will not rest until we dismantle this organization to make Maryland safer.”
“Today’s sentence takes out a small part of the plague that has spread throughout our communities. And while it means these defendants will be off the streets for decades, our work is not done,” said Jennifer Boone, Special Agent in Charge of the Baltimore Field Office of the FBI. “Together, working with our civic and community partners, the law enforcement community will be relentless in our pursuit of these gang members until our streets are safe from the scourge of MS-13.”
“MS-13 perpetuates senseless violence in our communities,” said HSI Baltimore Special Agent in Charge John Eisert. “Through coordination with our local and federal partners, domestically and abroad, we will continue in our mission to disable and dismantle MS-13.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other Central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. From 2016 and 2017, respectively, Sibrian Garcia and Hernandez Diaz were members and associates of the Fulton Locotes Salvatrucha clique of MS-13.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to their plea agreements, Sibrian Garcia and Hernandez Diaz conspired with other MS-13 members and associates to engage in racketeering activity including murders, conspiracies to commit murder, attempted murders, extortion, robbery, and drug trafficking, in order to further the interests of the gang.
Attempted Murder in Wheaton Specifically, in July 2016, another MS-13 gang member identified Victim 9 as a suspected rival gang member and directed Sibrian Garcia and other MS-13 members to arrange to lure Victim 9 to a secluded area in Wheaton Park in order to murder him, however, Victim 9 refused to go to the secluded area. After that, another MS-13 member found Victim 9 on the street and shot him. Victim 9 survived.
Murder in Wheaton Sibrian Garcia also admitted that in March 2017, he and other MS-13 gang members brought Victim 13 from Annapolis to Wheaton Regional Park in Wheaton, Maryland, where other MS-13 gang members had dug a grave and gathered weapons. When Victim 13 arrived, Sibrian Garcia and other MS-13 gang members attacked him with a machete and knives, killing him. Victim 13’s body was then dismembered and buried in the grave. In September 2017, investigators recovered Victim 13’s body from the grave in Wheaton. As detailed in the plea agreement, the medical examiner found that the cause of death was homicide. The body had suffered numerous blunt and sharp force traumas, the victim’s head had been severed, and his heart had been removed.
Murder in Frederick As detailed in Hernandez Diaz’s plea agreement, in April 2017, MS-13 gang members found Victim 14 in Silver Spring, Maryland, and called Hernandez Diaz and others to confirm that Victim 14 was a rival gang member. After receiving confirmation that Victim 14 was a rival gang member, they arranged with other gang members to identify a place in Frederick, Maryland where the victim could be killed and contacted other gang members to arrange to transport Victim 14 to Frederick. Victim 14 was transported by MS-13 members to Frederick City Watershed off Gambrill Park Road in Frederick, where they had dug a grave and gathered weapons. When Victim 14 arrived, some gang members hit him with a tree branch and then Hernandez Diaz and other gang members attacked him with a machete and knives until he was dead. Victim 14’s body was then dismembered and buried in the grave. Victim 14’s remains were found in June 2017.
Assaults in Wheaton According to his plea agreement, on June 14, 2017, Sibrian Garcia and other MS-13 gang members were at Wheaton Regional Park in Wheaton, Maryland when they saw Victim 15 and Victim 16, who they suspected were rival gang members. Sibrian Garcia and other gang members found Victims 15 and 16 in a bathroom and forced them out at knife-point. Sibrian Garcia and the other gang members hit Victims 15 and 16 with branches, fists, and feet and talked about killing them with the knife. When bystanders approached, Sibrian Garcia and the other gang members ran away. The victims’ cell phones were stolen. Both victims were transported to the hospital for their injuries.
The defendants admitted that the murders, attempted murder and assault of these victims was intended to maintain and increase the status of MS-13 and allow members to maintain or increase their status within the gang.
Drug Distribution Finally, as stated in their plea agreements, members of the Fulton clique, including Sibrian Garcia and Hernandez Diaz, also conspired to distribute marijuana. As a part of that conspiracy, gang members would obtain bulk quantities of marijuana and then break it up for distribution. At least a portion of the proceeds from the drug sales would go to the gang to further its objectives. It was reasonably foreseeable to Sibrian Garcia and Hernandez Diaz that the conspiracy would distribute at least five kilograms of marijuana.
A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019. A total of 13 defendants have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Three Members of an Eastern Shore Drug Trafficking Organization Sentenced to Five, Eight, and Eleven Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Three members of an Eastern Shore drug trafficking organization have been sentenced to federal prison on drug conspiracy charges. U.S. District Judge Richard D. Bennett sentenced the three co-defendants to terms of imprisonment ranging from just over five years to just over 11 years.
Today, James Eley, age 34, of Millsboro, Delaware, was sentenced to 63 months in federal prison, followed by four years of supervised release, for a drug distribution conspiracy involving heroin and fentanyl. On February 10, 2020, co-defendant James Martel Frazier, age 34, of Cambridge, was sentenced to 135 months—just over 11 years—in federal prison, followed by five years of supervised release, on the conspiracy charge and a related firearms charge. On January 15, 2020, co-defendant Jason Brittingham, age 37, of Federalsburg was sentenced to eight years in federal prison, followed by four years of supervised release, for his role in the organization.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; the members of the Dorchester County Narcotics Task Force, including: Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Dorchester County Sheriff James W. Phillips, Jr.; Chief Mark Lewis of the Cambridge Police Department; Chief Bruce Jones of the Hurlock Police Department; Caroline County Sheriff Randy Bounds, Chief Rodney R. Cox of the Denton Police Department, and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. We are committed to working with our federal, state, and local law enforcement partners to arrest and prosecute those who bring these deadly drugs to our communities. Drug dealers take note, just like these defendants you can face years in federal prison, where there is no parole—ever.”
“We continue to fight against the devastating impact that opioids have on our community,” said John Eisert, special agent in charge, HSI Baltimore. “This investigation’s success is a direct result of the strong partnership between HSI Baltimore and our local, state and federal law enforcement partners.”
According to their plea agreements, the defendants were all part of narcotics conspiracy that was being investigated by the Dorchester County Narcotics Task Force and Homeland Security Investigations beginning in 2018. The conspirators were responsible for trafficking significant amounts of fentanyl, heroin, and other drugs in the Delmarva area.
During the investigation, Frazier was identified as personally distributing significant quantities of drugs, as well as working with his co-defendants and other to facilitate the distribution of drugs on behalf of the conspiracy. For his part, Brittingham helped store and distribute drugs on behalf of the organization, maintaining a “stash house” in Federalsburg, Maryland. According to his plea agreement, Brittingham delivered heroin, fentanyl, cocaine, and crack cocaine from the stash house to other locations and to customers.
Eley was arrested in conjunction with a traffic stop conducted by the Delaware State Police on December 13, 2018. A subsequent search of Eley’s vehicle revealed 10 cardboard boxes stamped with a red apple logo. Inside each box were bundles of branded waxed-paper folds, each containing a mixture of fentanyl and heroin. In total, the boxes contained 7,800 paper folds stamped and branded for distribution. The total weight of the fentanyl/heroin mixture in the folds was approximately 130 grams.
On February 23, 2019, law enforcement executed search warrants at locations associated with Frazier and Brittingham in Maryland and Delaware. In total, law enforcement recovered over 250 grams of a mixture of fentanyl and heroin, much of it packaged in individual waxed folds branded with words and/or images; over 250 grams of crack cocaine; over 400 grams of methamphetamine; and over a kilogram of cocaine. In addition, law enforcement recovered four firearms from residences associated with Frazier, including a .357-caliber pistol and a .40-caliber pistol at a residence where Frazier kept drugs, and over $40,000 in cash. Frazier admitted that those firearms were used in furtherance of the conspiracy’s drug trafficking.
United States Attorney Robert K. Hur praised HSI, the Maryland State Police, the Dorchester County Sheriff’s Office, the Cambridge Police Department, the Hurlock Police Department, the Caroline County Sheriff’s Office, the Denton Police Department, and the Delaware State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Christopher J. Romano, who prosecuted the case.
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Three Local Doctors and Staff/Patients Indicted for Conspiring to Distribute OxycodoneRead the Press Release
St. Louis, Missouri – Eleven individuals were indicted today by a federal grand jury for conspiracy to distribute controlled medications, such as oxycodone, without a legitimate medical purpose; obtaining controlled medication by deceit and subterfuge; paying and receiving illegal kickbacks for referrals to lab for urine tests of the patients; and submitting false claims to Medicare and other health insurers.
ASIM MUHAMMAD ALI, M.D., 49, of Creve Coeur;
ALEXIS DORJAY BUTLER, 32, of Bellefontaine Neighbors;
SHAUNTA C. CROSBY, 33, of Ferguson;
ERIN MELISSA HERMAN, 35, of Oakville;
VLADIMIR KOGAN, 39, of Afton;
JERRY DALE LEECH, D.C., 47, of Creve Coeur;
STANLEY L. LIBRACH, M.D., 58, of Chesterfield;
DENIS J. MIKHLIN, 40, of Chesterfield;
EBONY R. PRICE, 37, of St. Louis;
ERICA T. SPATES, 32, of Berkley; and
TIJUANA A. SPATES, 36, of Jennings.
According to the indictment, Dr. Asim Muhammad Ali and Dr. Stanley Librach, medical doctors, and Dr. Jerry Dale Leech, a chiropractor, and Denis J. Mikhlin illegally wrote and distributed hundreds of prescriptions for oxycodone, oxycontin, hydromorphone, and fentanyl for patients whom Dr. Ali and Dr. Librach did not see, examine, or evaluate. One day a week for about two hours, Dr. Ali or Dr. Librach came into the American Pain Institute (API) and later Institute for Pain Management (IPM) and pre-sign stacks of prescriptions, which were given to API and IPM patients during the next week or two. Dr. Ali and Dr. Librach continued to write prescriptions for controlled substance drugs although many patients repeatedly tested negative for the prescribed drugs and positive for illegal street drugs.
According to the indictment, Dr. Leech, an owner of API and chief of staff for IPM, Denis Mikhlin, the owner of Doctors on the Go, and the other defendants bought and sold prescriptions for controlled substances written in the name of Dr. Librach and other doctors. Dr. Leech received between $200 and $500 for each script he sold, receiving on some occasions as much as $5000. Dr. Leech and Mikhlin also identified or had other co-defendants identify persons whose names could be used on fraudulent scripts. The patients were paid in cash or with some of the pills. Dr. Ali, one of the co-owners of Central Diagnostic Laboratory (CDL) paid illegal kickbacks to Dr. Leech, Dr. Librach, and Mikhlin for the referral of drug tests that they sent to CDL.
“Doctors and trained practitioners know better than anyone the twin dangers of addiction and overdose that come with powerful narcotics,” said DEA St. Louis Division Special Agent in Charge William Callahan. "DEA will investigate doctors, like these ones, who prescribe a controlled substance outside the normal course of professional practice and for no legitimate medical purpose to stop their illegal practices."
“As Attorney General, it’s my duty to protect all six million Missourians. To that point, our Medicaid Fraud Control Unit works diligently with both state and federal partners to root out and prosecute fraud. When doctors are abusing the healthcare system and irresponsibly doling out potentially addictive medications for personal gain, we need to hold them responsible. I’m grateful for the chance to work with our federal partners on this case.”
"According to the Centers for Disease Control and Prevention, the majority of overdose deaths in this country involved prescription or illicit opioid," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "It is appalling that any health care professional would knowingly fuel this epidemic rather than help stop it."
“Doctors who prescribe medically unnecessary and potentially addictive drugs are a threat to their patients, and their actions will not be tolerated,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working closely with our State and Federal law enforcement partners to protect patients and the government healthcare programs on which they depend.”
If convicted, each count carries a maximum penalty of 10 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Drug Enforcement Administration, the Attorney General’s Medicaid Fraud Control Unit, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Department of Health and Human Services – OIG are investigating this case. Assistant United States Attorney Dorothy McMurtry is handling this case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Louis Man Sentenced to 15 Years in Prison for Shooting His Co-Defendant During a Home InvasionRead the Press Release
St. Louis, MO – Dallas Richardson, 25, of St. Louis, MO, was sentenced to 15 years in prison for his role in a home invasion where he shot co-defendant Kyle Phillips. Richardson appeared today before United States District Judge Henry E. Autrey.
According to court documents, between January 2016 and February 2018, Richardson was part of a drug trafficking organization that distributed multi-pound amounts of marijuana within the Eastern District of Missouri. Richardson received some of the marijuana. The organization then collected the proceeds of the marijuana sales and utilized MoneyGrams purchased at various outlets, including Wal-Mart stores within the Eastern District of Missouri, to send the proceeds to the source of supply, Cedric Davis, in California.
Both co-defendants Joseph Hope and Jack Huck supplied marijuana to co-defendant Kyle Phillips. In December 2016, Phillips received bulk quantities of marijuana from Hope but refused to pay. As a result, Hope planned a robbery and retaliation against Phillips.
On January 12, 2017, Hope recruited Richardson to conduct the robbery of Phillips in order to retrieve either the marijuana or proceeds derived from the sale of the marijuana. Richardson and his associate drove from St. Louis to Phillips’ residence in Cape Girardeau, Missouri. Wearing masks and armed with firearms, including an assault rifle, Richardson forcibly entered the front door of the residence while his associate entered the residence through a bedroom window.
During the robbery, Richardson shot Phillips in the abdomen. Both Richardson and his associate assaulted Phillips, including with the stock of their firearms. The two men also kicked and assaulted with their firearms three other individuals that were present. Richardson and his associate took the safe, small amounts of marijuana, and the victims’ wallets, which contained small amounts of cash and exited the residence.
The following co-defendants in this drug conspiracy have been sentenced:
Jack Huck – 89 months in prison;
Seth Ault – 36 months in prison;
Cedric Davis, Jr. – 46 months in prison;
Cody Henderson – 3 years probation;
Joseph Hope – 96 months in prison;
Deven Huck – 48 months in prison;
Zach Hunter – 3 years probation;
Dakota McCain – 32 months in prison;
Dustin Puckett – 3 years probation;
Collin Weber – 3 years probation; and
Jacob Wolff – 3 years probation.
Richardson pleaded guilty in October to one count of robbery and one count of possessing a firearm that was discharged and Phillips is awaiting trial.
The Missouri Highway Patrol, the Ste. Genevieve Police Department, the Homeland Security Investigation, the Warrenton Sheriff’s Department, the Cape Girardeau Police Department, the U.S. Postal Inspection Service, and the Major Case Squad investigated this case.
St. Johns County Registered Sex Offender Charged with Receiving Child Sex Abuse Images, Possessing A Firearm, Illicit International Travel, and Hacking A JumbotronRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Samuel Arthur Thompson (49, St. Augustine) with receiving and possessing child sex abuse images, possessing a firearm as a convicted felon, failing to register under the Sex Offender Registration and Notification Act (“SORNA”), and transmitting damaging commands to a protected computer. If convicted on all counts, Thompson faces a minimum mandatory penalty of 15 years, and up to 100 years, in federal prison. Thompson has been a convicted felon and required to register as a sex offender since 1998, when he was convicted in Alabama of second degree sodomy on a child.
According to court documents, from April 2017 through February 2018, Thompson was a contractor for the Jacksonville Jaguars. His contract was not renewed, and, as of February 23, 2018, he was no longer employed by the organization. During the 2018 - 2019 NFL season, the Jaguars experienced multiple incidents involving malfunctions of the video board (commonly referred to as a “Jumbotron”) located within the Jaguars’ stadium. Thompson was identified as the architect of the video board system. A subsequent investigation revealed that an account associated with Thompson had been used to remotely log into the computer system and send commands to a rogue server that had been placed in the Jaguars’ server room, resulting in the outages.
On July 17, 2019, the FBI executed a search warrant at Thompson’s residence for evidence related to the computer intrusion. During the search, agents recovered a firearm from Thompson’s nightstand. As a previously convicted felon, Thompson is prohibited from possessing firearms. The FBI also seized multiple pieces of computer equipment and Thompson’s iPhone. A review of the electronic items revealed that Thompson had received child sex abuse images on his iPhone in 2018 and that Thompson had additional child sex abuse images on two of the computers.
Nine days after the execution of the search warrant, Thompson traveled from the United States to the Philippines without reporting his international travel prior to his departure, in violation of SORNA. Further investigation revealed that Thompson had also traveled to the Bahamas in July 2019 and failed to report that trip. On January 31, 2020, Thompson was arrested in Los Angeles following his deportation from the Philippines.
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 is being investigated by the Federal Bureau of Investigation, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
It 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.
South Bend, Indiana Man Sentenced to 130 Months in PrisonRead the Press Release
SOUTH BEND - Maurice Sylvester, age 32, of South Bend, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio for conspiracy to possess with intent to deliver over 500 grams of methamphetamine and over 100 grams of heroin, announced United States Attorney Thomas L. Kirsch II.
Mr. Sylvester was sentenced to 130 months in prison followed by 5 years of supervised release.
According to documents in this case, Mr. Sylvester was charged along with two others with conspiracy to distribute methamphetamine and heroin. Law enforcement found Mr. Sylvester and over four pounds of methamphetamine in a home when they served a search warrant in South Bend. Mr. Sylvester also had over $1200 of currency hidden on his body that had been used to purchase drugs. Phone records, text messages and fingerprints all linked Mr. Sylvester to the drug business. Mr. Sylvester has previously been convicted of six felonies, most involving drugs.
Kenneth Sanders, a co-defendant, was previously sentenced to 120 months imprisonment followed by five years of supervised release. A third defendant awaits sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms with the assistance of the LaPorte County Drug Task Force and the Drug Enforcement Administration. The case was handled by Assistant U.S. Attorneys Frank Schaffer and Kimberly Schultz.
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Somersworth Felon Pleads Guilty to Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
CONCORD - James Howard, 39, of Somersworth, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on September 27, 2019, agents from the ATF executed a search warrant at a home where Howard stayed. At the home, agents found a Marlin Wester Auto firearm receiver and ammunition.
Howard is a convicted felon and prohibited from possessing a firearm or ammunition.
Howard is scheduled to be sentenced on May 12, 2020.
“Preventing violent crime requires that we keep guns out of the hands of convicted felons,” said U.S. Attorney Murray. “Under Project Safe Neighborhoods we work closely with ATF, the Somersworth Police Department and all of our law enforcement partners to identify and prosecute criminals who possess guns unlawfully.”
“This arrest demonstrates the outstanding partnership between ATF and the Somersworth Police Department as well as the commitment we share to work together to interdict illegal firearms and the criminals that compromise the safety of our communities,” said Kelly D. Brady, Special Agent in Char ATF Boston Field Division.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Somersworth Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Saint Louis Man Sentenced to 25 Years for Shooting Federal OfficerRead the Press Release
Saint Louis, MO – Johnzell Moorehead, 30, of Saint Louis, MO, was sentenced to 25 years in prison on one count of discharging a firearm in furtherance of assaulting a federal law enforcement officer. Wines appeared today before U.S. District Judge John A. Ross who imposed the sentence.
According to court documents, Moorehead and an associate, Daryaun Wines, were travelling inside a vehicle in the early morning hours of October 12, 2017. Earlier that day, Moorehead and Wines had been involved in an altercation with another individual resulting in that individuals being shot.
Concerned about possibly retaliation from that earlier shooting, Moorehead and Wines were being followed by two additional associates who were in a separate vehicle. Federal Bureau of Investigation Special Federal Officer Archie Shaw was on-duty and, as part of an on-going investigation into drug distribution activity, began to follow the second of the two vehicles. Special Federal Officer Shaw was utilizing an unmarked law enforcement vehicle.
Moorehead and Wines noticed Special Federal Officer Shaw’s vehicle. Moorehead and Wines split-up from their other associates (who were being followed by Special Federal Officer Shaw). The vehicle being followed by Special Federal Officer Shaw intentionally led Special Federal Officer Shaw to the intersection of Miami and Iowa streets within the City of Saint Louis. As Special Federal Officer Shaw drove through the intersection, Wines and Moorehead shot Special Federal Officer Shaw. Wines and Moorehead traveled to that location for the purpose of committing the shooting.
Special Federal Officer Shaw’s vehicle was struck several times by the gunfire. Special Federal Officer Shaw himself was also struck by gunfire. After being shot, Special Federal Officer Shaw was able to drive himself to safety. Moorehead and his associates fled the area.
“Officer Shaw has shown great courage throughout this investigation and during his almost 30 years of service and dedication to the citizens of St. Louis. The St. Louis Police Department appreciates the continued support and assistance we’ve received from the U.S. Attorney’s Office, the FBI and all our federal partners in this case,” state Chief John Hayden, St. Louis Metropolitan Police Department.
"The importance of Officer Archie Shaw to this community can be understood by law enforcement’s relentless and wide ranging response in the immediate aftermath of his October 12, 2017, shooting and throughout the almost three years since the incident occurred,” said Assistant United States Attorney Thomas Rea after today's proceeding.
Rea continued, “Law enforcement has held Mr. Moorehead and Daryaun Wines accountable for their actions. In the course of doing so, officials also dismantled an entire drug organization resulting in five additional federal prosecutions. That is a total of seven federal prosecutions arising out of the shooting of Officer Shaw. Offense conduct such as this cannot and will never go unchecked by the United States Attorney’s Office. We hope that these sentences of 25 years for Mr. Moorehead and 17 years for Mr. Wines make that clear.”
The Saint Louis Metropolitan Police Department, with the assistance of the Federal Bureau of Investigation, investigated this case.
Sacramento Man Convicted of Sex Trafficking of a Child and Sex Trafficking by Force, Fraud, or CoercionRead the Press Release
SACRAMENTO, Calif. — After a six-day trial, Jaquorey Rashawn Carter, 24, of Sacramento, was found guilty today of sex trafficking of a child, and sex trafficking by force, fraud, or coercion, U.S. Attorney McGregor W. Scott announced.
“The defendant targeted vulnerable young women and underage girls to work as prostitutes for him on the streets of California cities and inside seedy motels,” U.S. Attorney Scott stated. “Thanks to the thorough work of the investigating agencies, the defendant’s years-long pimping operation has come to an end. For the next several years, he will be in a place where he cannot harm young females.”
“Traffickers see their victims as mere commodities to be controlled and sold. This case illustrates the cycle of violence and exploitation victims often face and traffickers’ brazen disregard for the law,” said FBI Sacramento Field Office Special Agent in Charge Sean Ragan. “The FBI works with its local and state partners to ensure criminals face justice for their actions and victims of trafficking are connected with the support they need to move forward with their lives.”
“Sex trafficking is a monstrous crime. It has no place in our society, let alone near our children,” said California Attorney General Xavier Becerra. “Those who profit from the detestable exploitation of human beings must pay a high price. We owe many thanks to the multi-jurisdictional law enforcement team that successfully investigated and prosecuted this case.”
According to evidence presented at trial, between 2013 and October 2018, Carter targeted vulnerable young women and underage girls to work as prostitutes for him. Carter used a consistent pattern of behavior in recruiting and keeping close association to the women and girls who worked for his financial benefit. As part of Carter’s pimping operation, he put girls and women in motel rooms and had them engage in prostitution in Sacramento, Stockton, Oakland, Sunnyvale, and Santa Ana, in order to make money from their prostitution activity.
Starting in 2013, Carter recruited two 14-year-olds to work as prostitutes for him in Oakland. Ultimately, the girls were returned home to Sacramento, but Carter continued to transport, harbor and maintain one of the underage girls in connection with prostitution activity through 2018.
Evidence presented at trial also showed that Carter has been arrested or contacted by law enforcement on multiple occasions on the streets or in high-crime areas while he was transporting his victims to or from his illegal business opportunities. In September 2018, a federal judge authorized the wiretap of Carter’s cellphone. Sacramento-based task force agents then intercepted calls demonstrating that Carter was actively recruiting, harboring, transporting, and managing several women engaged in prostitution throughout California. During the calls, Carter discussed his pimping operation and his involvement in violence, and he threaten to physically beat one of his victims.
Task force agents identified at least five different women that Carter was either recruiting or actively managing in ongoing prostitution. On Sept. 19, 2018, law enforcement intervened during an intercepted call when Carter described his plan to hurt a woman. At the time of the call, Carter was driving to Oakland with four women in his car. A California Highway Patrol officer conducted a traffic stop and arrested Carter for falsely impersonating someone. A short time later, while out on bail, Carter assisted a fellow pimp who savagely beat a woman inside a car. The victim tried to exit the car, but Carter stood outside the car and attempted to prevent her from escaping.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, and the Sacramento Police Department. The California Highway Patrol, Sacramento Sheriff’s Department, and the Sacramento District Attorney’s Office assisted in the investigation. Assistant U.S. Attorneys Brian A. Fogerty and Jason Hitt are prosecuting the case.
Carter is scheduled to be sentenced on May 4, 2020, by U.S. District Judge William B. Shubb. Carter faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison for sex trafficking of a child. Carter also faces a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of life in prison for sex trafficking by force, fraud, or coercion. Both counts of conviction carry a maximum fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Schoolsafety.gov Launches to Help Educators, Administrators, Parents, and Law Enforcement Prepare for ThreatsRead the Press Release
Earlier this week, the Trump Administration launched the federal school safety clearinghouse website: SchoolSafety.gov. This website is a one-stop-shop with resources for Kindergarten through Grade 12 (K-12) administrators, educators, parents and law enforcement to use to prepare for and address various threats related to safety, security, and support in schools.
In an effort to address this important issue, President Trump had earlier established the Federal Commission on School Safety to review safety practices and make meaningful and actionable recommendations of best practices to keep students safe. This new website has been created with input from the Commission, and the inter-agency cooperation of the Department of Justice, Department of Education, Department of Homeland Security, and the Department of Health and Human Services,
“As a parent, I understand the importance of knowing that our children are as safe and protected as they can be in our schools,” said United States Attorney Mark Klaassen. “I know that many districts across Wyoming have already taken substantial and important steps to make our schools safer and I hope this new website will be a welcome additional resource. This information may also be useful to parents concerned about security issues who want to stay informed about ways to address these issues for themselves and their families.”
Repeat Offender Sentenced to 90 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
PORTLAND, Ore.—Timothy Ray Vance, 54, of Salem, Oregon, was sentenced to 90 months in federal prison and five years’ supervised release for distributing large quantities of methamphetamine throughout Marion County.
Vance has a long criminal history dating back to 1983. Vance served more than 20 years in prison after being convicted in Marion County Circuit Court in 1994 on two counts of robbery, two counts of burglary, and one count each of kidnapping and theft.
Two months after completing post-prison supervision, in August 2018, Vance was found to be involved in a large methamphetamine distribution network. By October 2018, investigators discovered the network’s source of supply and at least one informant who revealed they had purchased methamphetamine from Vance on ten different occasions. A different informant told investigators that on one occasion, Vance sold them one pound of methamphetamine for $3,200.
In February 2019, Salem Police Department executed a search warrant on Vance’s residence. Investigators located 62.7 grams of methamphetamine, $2,780 in cash, drug packaging materials, and two handguns. Vance was placed under arrest and later released.
In March 2019, investigators learned that Vance was dealing methamphetamine out of a Salem hotel room. Officers conducted a traffic stop of Vance after obtaining a search warrant on his vehicle. During the search, they found 443 grams of methamphetamine, $1,500 in cash, and two additional firearms.
On November 11, 2019, Vance pleaded guilty to one count of possession with intent to distribute methamphetamine. As part of his plea agreement, Vance agreed to abandon four firearms used to facilitate his crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Salem Police Department. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Registered Sex Offender Gets 50 Years on Child Pornography ChargesRead the Press Release
WICHITA, KAN. – A registered sex offender who pleaded guilty to committing child sexual exploitation crimes while still on supervised release in a previous case was sentenced today to 50 years in federal prison, U.S. Attorney Stephen McAllister said.
Daniel Eric Merida, 36, El Dorado, Kan., pleaded guilty to one count of producing child pornography, one count of distributing child pornography, one count of transporting child pornography, two counts of possessing child pornography, and one count of sending obscene material to a minor.
In his plea, Merida admitted using the internet to contact a minor beginning in 2012 when she was 12 years old. He used the internet to sexually exploit the victim, sending her obscene material as well as child pornography. During a search in March 2018, he was found in possession of additional child pornography. After his arrest in November 2018, a second search revealed the defendant had used online storage to transport more child pornography, and he was in possession of more child pornography on his phone.
McAllister commended Homeland Security Investigations (HSI), the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, the Royal Canadian Mounted Police, the Elizabeth Township Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Providence Woman Sentenced in Multi-State Fraud & ID Theft ConspiracyRead the Press Release
PROVIDENCE – A Providence woman who admitted to working directly with the local leader of a far-reaching multi-state fraud scheme that defrauded banks, finance companies, car dealerships, and retailers, was sentenced today in U.S. District Court to two years and one day in federal prison.
Yenesia Pujols, 48, worked alongside Octavio Andres Difo-Castro, 29, of Edgewater, N.J., the admitted leader of an organization with roots reaching into the Dominican Republic, that purchased stolen personal identifying information from the Dark Web, including Social Security numbers, and used the information to create fraudulent driver’s licenses, open bank accounts, apply for and receive financing for automobiles, and open retail credit accounts used to purchase clothing, electronic devices, and furniture – some of which was shipped to the Dominican Republic and displayed on Instagram accounts.
At the time of his guilty plea, Difo-Castro admitted that at his direction several individuals opened bank accounts using fraudulent IDs he provided to deposit and withdraw fraudulently obtained funds; to pose as both the seller and the buyer of vehicles to fraudulently secure bank and/or credit union financing from financial institutions in several states; and to obtain retail store credit to make purchases at clothing, furniture, and cellphone retailers in Rhode Island, Massachusetts, Connecticut, and Pennsylvania.
According to information presented to the court, Pujols willingly agreed to play the role of bank and retail store customers by opening bank accounts to be used exclusively for the purpose of depositing fraudulently obtained car loan checks and quickly siphoning off cash, and to pose as customers at Sprint retailers from which she fraudulently obtained numerous high-end smart phones to be sold by Difo-Castro.
Pujols also admitted to obtaining and using stolen personal identifying information of an American citizen, including her Social Security number and date of birth, to apply for and gain employment. Pujols did so despite claims to Social Security that she was disabled and unable to work, all the while fraudulently collecting Social Security disability benefits.
Additionally, Pujols admitted to using stolen personally identifying information and fraudulent documents provided by Difo-Castro to improve her personal appearance through cosmetic surgery.
Pujols pleaded guilty on October 15, 2019, to aggravated identity theft, conspiracy to commit wire fraud, wire fraud, conspiracy to commit bank fraud, and Social Security fraud.
At sentencing today, United States District Court Chief Judge John J. McConnell, Jr., imposed a sentence of 24 months and one day imprisonment, 3 years’ supervised release, and ordered Pujols to pay restitution totaling $86,144, announced United States Attorney Aaron L. Weisman, Stephen Marks, Special Agent in Charge of the U.S. Secret Service, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Difo-Castro pleaded guilty on September 19, 2019, to one count each of conspiracy to commit wire fraud and conspiracy to access device fraud, two counts of aggravated identity theft, and nineteen counts of wire fraud. He is scheduled to be sentenced on March 17, 2020.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Zachary A. Cunha.
The investigations were led by the U.S. Secret Service, with the assistance of the Social Security Administration, Office of the Inspector General/Office of Investigations.
United States Attorney Aaron L. Weisman acknowledges and thanks the United States Postal Inspection Service and East Providence, Seekonk and Mansfield Police Departments for their assistance in the investigations.
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Prolific identity thief convicted following three-day trialRead the Press Release
Seattle – A Seattle man who stole tens of thousands of dollars from a woman in her 70’s while she lay dying in the hospital, was convicted today in U.S. District Court in Seattle of ten federal felonies. DWAYNE BROOKS was convicted of six counts of bank fraud and attempted bank fraud, two counts of use of unauthorized access devices, and two counts of aggravated identity theft. The jury deliberated about four hours following the three-day trial. U.S. District Judge James L. Robart scheduled sentencing for May 18, 2020.
According to records in the case and testimony at trial, between November 2016 and April 2018, BROOKS used debit cards, credit cards, checks, and other financial information stolen from mail, cars, and homes to steal money from multiple victims. One of the victims, a 78-year-old woman ultimately died in the hospital while BROOKS was looting her accounts. During the scheme, BROOKS repeatedly used her information to open credit accounts, drain bank accounts, and even attempted to obtain her power of attorney. While the woman was in the hospital, surveillance video shows BROOKS using keys stolen from her ex-husband’s car to burglarize her condominium, taking bags full of valuables. A second victim, an 84-year-old Seattle woman, is still trying to untangle the fraud he committed against her accounts, including her retirement investment account. Finally, BROOKS stole and attempted to cash a $34,000 tax refund check.
In all, BROOKS’ fraud exceeds $120,000.
In closing argument, Assistant United States Attorney Seungjae Lee noted, BROOKS’ scheme “was simple, but devastating. He had no regard for those left behind holding the bag. An 84-year-old woman is still trying to recover from the fraud on her accounts. A second victim spent her last months in the hospital while the defendant was draining her accounts.”
The case was investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Duval Police Department, King County Sheriff’s Office, Renton Police Department, and the Washington State Patrol.
The case is being prosecuted by Assistant United States Attorney Seungjae Lee and Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration Office of Inspector General, specially designated to pursue fraud cases in federal court.
Philadelphia Drug Dealer Sentenced to 10 Years in Federal Prison for Supplying Deadly Heroin in NewarkRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that Canda Quach, 28, of Philadelphia, was sentenced today to 10 years in federal prison by U.S. District Judge Richard G. Andrews. Quach previously pled guilty to conspiracy to distribute over 3000 grams of heroin in capsule form.
According to court documents, the Drug Enforcement Administration and the New Castle County Police Department investigated an overdose death involving suspected heroin capsules in August, 2017. Heroin sold in Delaware is typically packaged in clear plastic baggies containing a blue wax paper sheet, which is usually “stamped” or otherwise branded to differentiate it from other types of heroin. The emergence of heroin capsule sales in the greater Newark area was novel and unique to Delaware.
Following an investigation into the death of the victim, officers arrested co-defendant Rodney Cox for delivering the fatal dose of heroin capsules. Judge Andrews sentenced Cox to 51 months in federal prison on August 20, 2017. Cox received the heroin capsules from co-defendant Jawaan Wallace, who was sentenced by Judge Andrews on August 20, 2019 to 10 years in federal prison. As the heroin supplier for Wallace, Quach was the source of the heroin capsules in Delaware. Since Quach’s arrest on February 1, 2018, officers have no reported cases of heroin capsules distributed in Delaware.
Commenting on the sentence, U.S. Attorney Weiss noted: “This case highlights both the tragedy of heroin overdoses and the collective response needed to combat it. The collaborative efforts of federal and local law enforcement resulted in Mr. Quach’s arrest and conviction. The deadly heroin capsules the defendant distributed took a human life. Today’s sentence appropriately reflects the seriousness of the defendant’s crime.”
“Quach was responsible for distributing over 3,000 grams of heroin in capsule form, which represented a distribution method that was different from what is normally seen in this region. As such, Quach’s unusual method of packaging heroin was likely tied to the significant amount of heroin that he was responsible for distributing,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “This case is a reminder that illegal street drugs, especially when packaged in an innocuous from like a capsule, pose a deadly threat to the people that use them.”
This case was investigated by the Drug Enforcement Administration as part of the First State Overdose Taskforce with assistance from the New Castle County Police Department and Delaware State Police. The Task Force consists of state and federal law enforcement partners who work to investigate overdose deaths soon after they occur. Assistant U.S. Attorney Daniel Logan prosecuted the case.
Palm Beach County Resident Sentenced to Prison Term for Defrauding Victim Out of Approximately a Half of a Million DollarsRead the Press Release
WEST PALM BEACH – United States District Judge Robin L. Rosenberg sentenced Scott Woolley, 59, of Delray Beach, Florida, to five months in prison followed by three years of supervised release for scheming to defraud the owner of a skin care product company out of about half a million dollars.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
On December 3, 2020, Woolley pled guilty to two counts of wire fraud. According to court records, the victim was the majority owner of Aubio Life, LLC, Aubio Life Sciences, LLC (Aubio Life), a skin care products company. The victim appointed Woolley as the CEO of Aubio Life, with a salary of $13,000 per month. In 2017, without the victim’s consent, Woolley transferred about $500,000 from Aubio Life bank accounts to bank accounts that Woolley controlled. The bank accounts that Woolley controlled were located in Palm Beach County, Florida. Woolley used the money to make a down payment on a house in Delray Beach, Florida.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and the Delray Beach Police Department in this matter. Assistant U.S. Attorney Lothrop Morris prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Orem, Utah Return Preparers Indicted for Tax CrimesRead the Press Release
SALT LAKE CITY -- A federal grand jury in Salt Lake City, Utah, returned an indictment Thursday afternoon charging Sergio Sosa, and his adult children, Alissa and David Sosa, with conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney John W. Huber for the District of Utah.
Sergio Sosa was also charged with one count of tax evasion, and he and his children were each charged with one count of corruptly endeavoring to obstruct the administration of the internal revenue laws.
According to the indictment, Sosa owned and operated Sergio Central Latino (SCL), a tax return preparation business in Orem, Utah, where both Alissa and David worked. From 2003 through 2017, Sosa allegedly did not timely file his personal tax returns and after multiple audits, the Internal Revenue Service (IRS) determined that he owed more than $750,000 in unpaid taxes. When the IRS began collection efforts, Sosa and his children allegedly agreed to obstruct IRS collection of the outstanding taxes by hiding Sosa’s personal assets, residential properties, and by titling SCL in the children’s names.
The indictment also alleges that when the IRS suspended SCL’s ability to electronically file client tax returns due to Sosa’s unpaid taxes, David Sosa changed SCL’s business name and obtained electronic filing authorization in a third party’s name. It is further alleged that Alissa Sosa falsely represented to the IRS that she owned a residence that was, in fact, her father’s, and that she withdrew funds from an account that she knew had been levied by the IRS. As of 2019, Sosa allegedly owes more than $1.1 million in taxes, penalties, and interest.
If convicted, the Sosas each face a statutory maximum sentence of five years in prison for the conspiracy charge and three years in prison for corruptly endeavoring to obstruct the administration of the internal revenue laws. Sergio Sosa faces an additional five years in prison for tax evasion. The Sosas also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. Individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Ruth Hackford-Peer and Trial Attorney Erin S. Mellen of the Tax Division, who are prosecuting the case.
Ohio Resident Charged with Operating Darknet-Based Bitcoin “Mixer,” which Laundered over $300 MillionRead the Press Release
An Ohio man was arrested for his operation of Helix, a Darknet-based cryptocurrency laundering service.
In the three-count indictment unsealed Feb. 11 in the District of Columbia, Larry Harmon, 36, of Akron, Ohio, was charged with money laundering conspiracy, operating an unlicensed money transmitting business and conducting money transmission without a D.C. license.
According to the indictment, Harmon operated Helix from 2014 to 2017. Helix functioned as a bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet as a way to conceal transactions from law enforcement.
“Helix allegedly laundered hundreds of millions of dollars of illicit narcotics proceeds and other criminal profits for Darknet users around the globe,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This indictment underscores that seeking to obscure virtual currency transactions in this way is a crime, and that the Department can and will ensure that such crime doesn’t pay.”
“For those who seek to use Darknet-based cryptocurrency tumblers, these charges should serve as a reminder that law enforcement, through its partnerships and collaboration, will uncover illegal activity and charge those responsible for unlawful acts,” said U.S. Attorney Timothy J. Shea of the District of Columbia.
“The brazenness with which Helix operated should be the most appalling aspect of this operation to every day citizens. There are bad actors and then there are criminals who facilitate hundreds of other crimes,” said Don Fort, Chief, IRS Criminal Investigation. “The sole purpose of Harmon’s operation was to conceal criminal transactions from law enforcement on the Darknet, and because of our growing expertise in this area, he could not make good on that promise. Working in tandem with other sites, he sought to be the ‘go-to’ money launderer on the Darknet, but our investigators once again played the role of criminal disrupters, unraveling the interlinked web from one tentacle to another. We thank the Belizean authorities and other law enforcement agencies for their assistance on this case.”
“The perceived anonymity of cryptocurrency and the Darknet may appeal to criminals as a refuge to hide their illicit activity,” said Special Agent in Charge Timothy M. Dunham of the Criminal Division of the FBI Washington Field Office. “However, as this arrest demonstrates, the FBI and our law enforcement partners are committed to bringing the illegal practices of money launderers and other financial criminals to light and to justice, regardless of whether they are using new technological means to carry out their schemes.”
The indictment alleges that Helix moved over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Helix partnered with the Darknet market AlphaBay to provide bitcoin laundering services for AlphaBay customers. AlphaBay was one of the largest Darknet marketplaces in operation at the time that it was seized by law enforcement in July 2017.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was led by the IRS-CI and the FBI’s Washington Field Office with assistance from the Financial Crimes Enforcement Network. The Department of Justice’s Office of International Affairs of the Criminal Division, the U.S. Attorney’s Office for the Northern District of Ohio, IRS Field Offices of Washington, D.C.; Cincinnati, Ohio; and Oakland, California; and the FBI’s Criminal Investigative Division and Field Offices of Cleveland, Ohio — Akron Resident Agency; Newark, New Jersey; and San Francisco, California — San Jose Resident Agency and the Department of State’s Diplomatic Security Service provided essential support for the operation.
Internationally, the Belize Ministry of the Attorney General and the Belize National Police Department simultaneously executed a search warrant of a residence allegedly leased by Harmon in Belize as U.S. authorities executed warrants in the United States. U.S. law enforcement agencies, coordinated by U.S. Embassy Belmopan, assisted in the Belize action. “These actions underscore the vital importance of working closely with our law enforcement partners in Belize to make both of our countries more safe and secure,” said U.S. Chargé d’Affaires, a.i. Keith Gilges.
Trial Attorneys S. Riane Harper and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Additional assistance has been provided by Trial Attorneys Emily Siedell and Brian Nicholson of the Criminal Division’s Office of International Affairs, former CCIPS Trial Attorney W. Joss Nichols and Assistant U.S. Attorney Daniel Riedl of the Northern District of Ohio.
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.
North Wilkesboro Man Is Sentenced to More Than 10 Years in Prison on Child Pornography ChargesRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Kenneth D. Bell sentenced yesterday Ronnie Dean Brown, 36, of North Wilkesboro, N.C., to 121 months in prison on child pornography charges, announced the U.S. Attorney’s Office for the Western District of North Carolina. Brown was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in North Carolina, and Sheriff Chris Shew of the Wilkes County Sheriff’s Office, join the U.S. Attorney’s office in making today’s announcement.
According to filed documents and statements made in court, in September 2018, law enforcement became aware that an individual, later identified as Ronnie Brown, was accessing child pornography online. In October 2018, law enforcement approached Ronnie Brown, who was at Charlotte Douglas Airport on his way to Las Vegas. Court records show that Ronnie Brown refused to cooperate with law enforcement, and afterwards contacted his wife, Kelly Brown, and instructed her to “get rid of his laptop.” Kelly Brown did as instructed and gave the laptop to another individual, who later turned it over to law enforcement.
Law enforcement executed a search warrant at Ronnie Brown’s residence and seized a computer and portable storage media. According to court records, a forensic examination of the seized items revealed that Ronnie Brown possessed more than 4,100 images of children, including infants and toddlers, engaging in sexually explicit conduct. Some of the child pornography depicted sadistic and masochistic conduct.
On October 3, 2019, Ronnie Brown pleaded guilty to receipt of child pornography. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
Kelly Brown previously admitted to giving her husband’s laptop to another individual according to his instructions, in an attempt to prevent law enforcement from seizing it. Kelly Brown further admitted that when she followed Ronnie Brown’s instructions, she and her husband were both aware that law enforcement were conducting an investigation into child pornography. Kelly Brown has pleaded guilty to a federal felony related to her obstruction of the investigation and is currently awaiting sentencing.
HSI and the Wilkes County Sheriff’s Office conducted the investigation.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
North Platte Man Receives 40-Year Sentence for Production of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Mathew S. Goad, 34, of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard for conspiracy and production of child pornography. Goad was sentenced to 40 years in prison and a lifetime of supervised release. He will also be required to register as a sex offender and pay $3,600 in restitution. There is no parole in the federal system.
In March of 2019, a state search warrant was served at the home of a target living in Kansas City, Missouri. During a forensic examination of the computer seized in the Kansas City investigation, the examiners located screenshots of a chat between the Kansas City target and Mathew Goad. During the chat, Goad indicated he had sexually assaulted a child and recorded that assault. Goad then sent the recording to the target. Further investigation revealed that Goad and his co-defendant, Cory Preitauer, were both involved in the production of the video. Preitauer will be sentenced at a later date.
After his arrest, Goad admitted to the production and distribution of the video during an interview with law enforcement. Agents conducted a forensic examination of electronic devices owned by Goad that were seized at the time of his arrest. There were approximately 3,400 image files and 800 video files of child pornography recovered from Goad’s laptop computer.
U.S. Attorney Kelly added, “The actions of Goad and his co-defendant will have a lifelong effect on this young victim. Today’s sentence sends a powerful message to those who prey on the most vulnerable of children.”
“The terrible and deliberate acts of this individual hurt both the victim and victim’s family. While this sentence will never remove this hurt, it should reassure the public that the FBI will vigorously pursue child predators until justice is served and children are rescued,” said FBI Special Agent in Charge Kristi Johnson.
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 Federal Bureau of Investigation.