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5 March 2020
Banksville Restaurant Owner Pleads Guilty to Fraud ChargeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BARBARA MEYZEN, a/k/a “Bobbie Meyzen,” the owner and operator of La Cremaillere Restaurant in Banksville, New York, pled guilty to wire fraud in connection with her multi-year scheme to defraud the restaurant’s lenders, mortgagee, bankruptcy creditors, and customers. MEYZEN pled guilty before the Honorable Vincent L. Briccetti in White Plains federal court today.
U.S. Attorney Geoffrey S. Berman said: “Barbara Meyzen ran a renowned restaurant that served fine French food. As she admitted today, she also cooked the books and engaged in wholesale fraud, and deceived creditors, the bankruptcy trustee, and FBI agents. That is a recipe for federal prosecution and a potential prison sentence.”
According to the allegations in the Superseding Information to which MEYZEN pled guilty and other court documents:
MEYZEN has owned and operated the La Cremaillere Restaurant in Banksville, New York, since 1993. From August 2015 to July 2016, MEYZEN submitted applications for credit on behalf of La Cremaillere to at least nine lenders, factors, and financiers. In support of those applications, MEYZEN gave the potential lenders La Cremaillere’s bank statements that she had modified to change negative balances to positive balances; to remove references to checks returned for insufficient funds; and to reduce service fees. For example, MEYZEN modified one month’s statement to change a negative beginning balance of $32,865.57 to a positive beginning balance of $27,766.29; to change from negative to positive the negative ending balance for that month of $5,268.13; and to change service charges of $2,385.60 to $8.00. When one lender discovered that MEYZEN had altered the bank statements, MEYZEN created an email account in the name of one of the bank’s officers and sent the lender an email in which she, in the guise of the bank officer, told the lender that the statements were genuine.
MEYZEN also falsely represented to the same lender that the second mortgage on the restaurant’s property in Banksville had been discharged. She created a false satisfaction of mortgage on which she forged the signature of a representative of the restaurant’s second mortgagee, who is MEYZEN’s relative by marriage. MEYZEN filed the false satisfaction of mortgage with the Westchester County Clerk, paid the Clerk’s filing fee, and sent a copy of the filed satisfaction of mortgage to the lender. MEYZEN later denied filing the false satisfaction of mortgage or paying the filing fee when she was interviewed by special agents of the FBI. She told the FBI that she believed a loan broker with whom she had worked in the past, and whom she identified by name, had filed the false satisfaction of mortgage.
Throughout the summer of 2017, MEYZEN charged more than $80,000 in food and restaurant supplies to one of the restaurant’s customers who had left her credit card number on file at the restaurant. When the customer discovered the charges, MEYZEN claimed the charges were a mistake and repeatedly promised to resolve the problem. MEYZEN gave the customer two checks in a total amount of $32,000, but the checks bounced. When she was interviewed by the FBI, MEYZEN denied knowing anything about unauthorized charges to the customer’s credit card or ever speaking with the customer about the unauthorized charges. MEYZEN also denied giving the customer checks.
Meyzen Family Realty Associates, LLC, which owns the real property from which the restaurant operates, filed for bankruptcy in the U.S. Bankruptcy Court in White Plains in September 2018. La Cremaillere Restaurant Corp., which operates the restaurant, filed for bankruptcy in April 2019. MEYZEN is a part owner of both entities. In May 2019, MEYZEN misled the office of the United States Trustee, which oversees bankruptcy cases, about insurance coverage on the restaurant property. MEYZEN caused her bankruptcy counsel to give the United States Trustee and an attorney for Meyzen Family Realty’s largest creditor documents indicating that the property was insured when, in fact, the insurance coverage had been canceled months earlier for nonpayment. MEYZEN knew that the coverage had been canceled because her insurance broker had communicated with her several times about the cancellation of the policies. In June 2019, MEYZEN falsely testified under oath in a deposition conducted by the United States Trustee that she was not aware that the insurance had been canceled when she caused her attorney to turn the documents over to the United States Trustee.
Two days after La Cremaillere filed for bankruptcy in April 2019, MEYZEN opened a bank account in her name and diverted more than $40,000 of the restaurant’s credit card receipts to that account. MEYZEN used a portion of that money to make payments to a food distributor and to an in-home nursing service. This account was closed on May 1, 2019. On May 7, 2019, MEYZEN opened an account in the name of Honey Bee Farm, LLC, at another bank and diverted La Cremaillere’s credit card receipts, as well as $20,000 in advances on La Cremaillere’s future credit card revenue, to that account. MEYZEN used a portion of that money to make a payment on Meyzen Family Realty’s mortgage and to pay food distributors, two wine wholesalers, a commercial trash service, a tableware and china company, and an employee of La Cremaillere.
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MEYZEN, 57, of Redding, Connecticut, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of MEYZEN will be determined by a judge. MEYZEN is scheduled to be sentenced by Judge Briccetti on June 24, 2020.
Mr. Berman praised the outstanding investigative work of the FBI and the Office of Internal Affairs, New York State Department of Taxation and Finance.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Baltimore Drug Dealer Sentenced to More Than Four Years in Federal Prison – Rented an Apartment Within 1,000 Feet of an Elementary School to Store and Distribute DrugsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Tyrell Daronte Curry, a/k/a “Mike,” age 28, of Baltimore, Maryland, to 51 months in federal prison, followed by four years of supervised release for conspiracy to distribute and possess with intent to distribute controlled substances.
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; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
United States Attorney Robert K. Hur stated, “We absolutely will not tolerate drugs dealing near our schools. We are committed to working with our law enforcement partners to remove gun-toting drug dealers from our communities, in order to reduce violent crime.”
According to his guilty plea, from December 2018 to February 2019, Curry distributed fentanyl, heroin, and cocaine. On January 3 and again on February 6, 2019, Curry sold an undercover Baltimore County Police officer a “pack” of heroin—each containing 25 gel capsules—for $200 per pack.
On February 22, 2019, law enforcement executed a search warrant at an apartment in Parkville, Maryland, which was rented by Curry, and was within 1,000 feet of a Baltimore County elementary school. Curry and his co-defendant, Deandre Laquan Jones, used the apartment to distribute fentanyl, heroin, and cocaine. From the apartment, law enforcement recovered two baggies containing a total of approximately 345 grams of fentanyl, cutting agents, digital scales, two kilogram presses, and bags of packaging materials. In addition, officers found mail and other documents in the names of Curry and Jones, and two empty .40-caliber extended magazines, from which the BCPD Forensic Services Section recovered a latent print of Jones’ left thumb. In the living room, officers located a coffee table that had been custom-manufactured to contain a hidden compartment secured by a wireless lock. Investigators later learned that the table had been purchased by, and shipped to, Deandre Jones at the Parkville apartment. When the hidden compartment in the table was opened, law enforcement recovered plastic bags containing 16 grams of fentanyl, 175 grams of heroin, 185 grams of crack cocaine, and 173 grams of powder cocaine, as well as a .410-caliber handgun and 19 rounds of .410-caliber ammunition.
That same day, BCPD officers executed a search warrant at Curry’s residence and recovered a total of $17,820 in cash, sandwich bags holding a total of 46 capsules of heroin, three cell phones, and a box containing .357-caliber ammunition, which was found in the mattress. Curry admitted that the cash was furnished or intended to be furnished in exchange for controlled substance, or was proceeds from the sale of controlled substances.
A subsequent forensic examination of the cell phones recovered messages between Jones and Curry relating to drug trafficking, including discussions about the Parkville apartment, potential customers, sources of supply, possible police surveillance, and ammunition.
Deandre Laquan Jones, a/k/a “Cuz,” age 27, of Towson, Maryland previously pleaded guilty to possession with intent to distribute controlled substances, possession with intent to distribute drugs near a school, and to being a felon in possession of firearms. U.S. District Judge George L. Russell, III has scheduled sentencing for Jones on April 30, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who are prosecuting the case.
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2 Texas men face federal charges after violently attacking federal officerRead the Press Release
LAREDO, Texas – Two men from Irving are set to appear in court for assaulting Customs and Border Protection (CBP) officers, announced U.S. Attorney Ryan K. Patrick.
The Laredo grand jury returned the indictment Feb. 25 against Juan Alfredo Crisencio Martinez, 20, and Jaythan Trevonne Phillips, 20. They are set to appear before U.S. Magistrate Judge Diana Song Quiroga at 1 p.m. today.
They are all charged with forcible assault on an officer Feb. 8.
The incident began after they applied for admission into the United States at the Juarez-Lincoln International Bridge in Laredo, according to the charges. A CBP officer allegedly began to conduct an immigration inspection and asked them to exit the vehicle. They refused, according to the allegations.
The charges allege authorities swarmed the lane to apprehend the occupants. At that time, Martinez allegedly reached for the officer’s belt from inside the vehicle. He also opened the driver’s side door in order to prevent a responding officer from assisting, according to the allegations.
Law enforcement allegedly had to physically carry Phillips to the secondary inspection area.
Martinez continued to resist, according to the allegations. Law enforcement allegedly had to deploy a Taser in order to subdue him.
The charges allege the incident significantly impacted the port’s daily operation, because officers from passenger booths, secondary inspection and bus operations had to assist. Most of the travel lanes were closed until they could resolve the incident, according to the allegations. The bus traffic was allegedly backed up into the Mexico side of the bridge which caused stalls and ultimately delayed dozens of passengers.
If convicted, Martinez and Phillips face up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from CBP. Assistant U.S. Attorney Yoona Lim is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.13 Members of Bronx Drug Crew Charged with Distributing Cocaine and Crack CocaineRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging EDWARD ABREU, ALICIA ARIAS, LUIS FRIAS, TIMOTHY WALLACE, a/k/a “Larry,” DEREK LIVINGSTON, a/k/a “Wiz,” CHARKEEM PAYNE, a/k/a “Lite,” CAROL LANE, TRACEY SMITH, a/k/a “Trey,” HERMAN STEWARD, TASHA BURNETT, a/k/a “Dutchis,” TYRISS GWYNN, EDGAR MONTES, a/k/a “E,” and FERNANDO DISLA, a/k/a “Lolo,” with participating in a conspiracy to distribute cocaine and crack cocaine. Eight defendants were taken into custody today and will be presented this afternoon before United States Magistrate Judge Kevin Nathaniel Fox. Four defendants were previously presented after being taken into custody and one defendant remains at large. The case is assigned to United States District Judge Denise L. Cote.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants in this case brought cocaine and crack into our communities for well over a year. Thanks to the extraordinary work of the NYPD and DEA, the defendants will now face justice in federal court.”
DEA Special Agent in Charge Ray Donovan said: “The Gunna Ave gang’s alleged drug trafficking operations encouraged drug abuse and drove crime and violence in the community where they live. Our partnership with the NYPD and U.S. Attorney’s Office focuses on disrupting drug trafficking organizations at all levels of distribution, as evidenced in this investigation.”
NYPD Commissioner Dermot Shea said: “I commend our investigators, together with our federal partners, for the great work throughout this investigation. The men and women of the NYPD work each day to eradicate illegal drugs from our City and ensure safety across every neighborhood.”
As alleged in the Indictment unsealed today in Manhattan federal court[1] and in statements on the record in court:
EDWARD ABREU, ALICIA ARIAS, LUIS FRIAS, TIMOTHY WALLACE, a/k/a “Larry,” DEREK LIVINGSTON, a/k/a “Wiz,” CHARKEEM PAYNE, a/k/a “Lite,” CAROL LANE, TRACEY SMITH, a/k/a “Trey,” HERMAN STEWARD, TASHA BURNETT, a/k/a “Dutchis,” TYRISS GWYNN, EDGAR MONTES, a/k/a “E,” and FERNANDO DISLA, a/k/a “Lolo,” were members of a drug trafficking organization (the “DTO”) that distributed cocaine and crack cocaine within the Bronx, including in the vicinity of East 167th Street and Sheridan Avenue from at least in or about January 2019 through March 2020. LIVINGSTON is also charged with having used and possessed a firearm in furtherance of the charged drug trafficking conspiracy and being a felon in possession of a firearm.
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A chart containing the names, charges, and maximum penalties for the defendants is 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 DEA and NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Thomas John Wright is 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.
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COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics conspiracy
21 U.S.C. § 846
EDWARD ABREU, 44,
ALICIA ARIAS, 36,
LUIS FRIAS, 40,
TIMOTHY WALLACE, 32,
a/k/a “Larry,”
DEREK LIVINGSTON, 32,
a/k/a “Wiz,”
CHARKEEM PAYNE, 32,
a/k/a “Lite,”
CAROL LANE, 52, and
TRACEY SMITH, 52,
a/k/a “Trey”
HERMAN STEWARD, 62,
TASHA BURNETT, 44,
a/k/a “Dutchis,”
EDGAR MONTES, 40,
a/k/a “E,” and
FERNANDO DISLA, 33,
a/k/a “Lolo”
TYRISS GWYNN, 34,
Life in prison
Mandatory minimum of 10 years in prison
40 years in prison
Mandatory minimum of 5 years in prison
20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c)
DEREK LIVINGSTON,
a/k/a “Wiz”
Life in prison
Mandatory minimum of 5 years in prison
3
Felon in possession of a firearm
18 U.S.C. § 922(g)
DEREK LIVINGSTON,
a/k/a “Wiz”
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
4 March 2020
Wellsville Man Pleads Guilty to Being A Felon in Possession of FirearmsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason E. Slocum, 44, of Wellsville, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to being a felon in possession of firearms. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that on October 1, 2018, a 911 caller reported a domestic dispute at the defendant’s residence on Williams Avenue in Wellsville. Upon arrival, Wellsville police officers found a female sitting inside a vehicle, in the driveway of the residence, smoking a cigarette. She was determined to be a resident of the residence. The woman reported she and Slocum, who have a child together, started arguing that morning. During the argument, the defendant damaged her cellphone and other items around the house. Following the argument, the woman went outside and Slocum locked her out of the house, which prevented her from entering the residence again. The woman also advised officers that her autistic son was still inside with the defendant.
Officers then conducted a room by room safety sweep of the residence to ensure there were not any additional people present in the residence. During that sweep, officers discovered an AK-style rifle in the closet of Slocum’s bedroom.
Subsequently, officers executed a search warrant of the residence and recovered several firearms, including an AK-style semi-automatic rifle, and ammunition. The defendant was previously convicted in 1996 of Attempted Burglary in Allegany County Court, and is legally prohibited from possessing a gun.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Wellsville Police Department, under the direction of Chief Steven Mattison.Sentencing is scheduled for June 8, 2020, at 9:00 a.m. before Judge Skretny.
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Wallingford Man Admits Downloading Child Pornography from the InternetRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC RUNDSTROM, 45, of Wallingford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of receipt and possession of child pornography.
According to court documents and statements made in court, an FBI investigation revealed that Rundstrom had accessed an online website to connect with others interested in collecting and sharing images and videos depicting the sexual abuse of children. Investigators discovered a link to an online file hosting account associated with Rundstrom where hundreds of images and videos of child pornography had been stored, including images of adult males sexually abusing prepubescent females.
Rundstrom was arrested on a federal criminal complaint on February 14, 2019.
Judge Arterton scheduled sentencing for June 3, 2020, at which time Rundstrom faces a maximum term of imprisonment of 20 years. Rundstrom is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
USP Lewisburg Inmate Charged with MurderRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lorenzo Scott, age 47, an inmate at the United States Penitentiary at Lewisburg (USP Lewisburg), was indicted by a federal grand jury for murder, assault with intent to commit murder and assault with intent to commit serious bodily injury
According to United States Attorney David J. Freed, the indictment alleges that Scott was an inmate at USP Lewisburg on March 25, 2015, when he assaulted his cellmate and repeatedly struck, stomped and inflicted blunt force trauma to the cellmate’s head, neck and face resulting in life threatening injuries. The cellmate later died as a result of the injuries.
The case was investigated by the FBI. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charges carry a maximum sentence under federal law of up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney's Office for the Northern District of Georgia participates in unprecedented elder fraud sweepRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale to announce the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Combating fraud perpetrated upon elderly Americans is a top priority of my office and the Department of Justice,” said U.S. Attorney Byung J. “BJay” Pak. “Would-be criminals who prey upon elder U.S. residents and engage in such abhorrent conduct will be subject to criminal prosecution.”
Over the past year, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted numerous defendants who scammed thousands of Americans, including elder victims, out of over $12 million.
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by the sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the FBI Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Transnational Elder Fraud Strike Force
This office is one of six districts on the Department of Justice Transnational Elder Fraud Strike Force. The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
Northern District of Georgia Elder Fraud Cases
Elder fraud prosecutions in this district over the past year included romance, retirement, impersonating the Internal Revenue Service, grandparent, timeshare, and investment fraud.
In 2019, our office prosecuted individuals involved in romance and retirement scams that target the elderly. Romance scams are a type of online fraud in which victims are targeted by individuals posing as potential paramours. The fraudsters create fake online dating profiles (often with photographs of attractive men or women) and use these fake personas to express a romantic interest in the victims in order to trick them into sending money to them or their co-conspirators under false pretenses. Romance scams frequently target vulnerable individuals who possess significant financial assets, such as retired widows or widowers.
- In United States v. Alonge, et al., two defendants pled guilty based upon their involvement in a Nigeria-based romance scam that tricked victims into sending over $1.8 million. Both defendants were sentenced to ten years in prison and ordered to pay restitution in the amount of $1,835,279.00.
- In United States v. Adara, et al., one defendant pleaded guilty based upon his involvement in a Nigeria-based romance scam.
- In United States v. Oye, et al., three defendants pled guilty for their involvement in a West African organized crime group that laundered millions of dollars on behalf of various sophisticated fraud schemes, including romance and retirement fraud schemes. One defendant was sentenced to two years, three months in prison in January 2020.
- In United States v. Odus, et al., two defendants pled guilty and one was sentenced to 18 months incarceration for laundering funds on behalf of a West African group engaging in romance and retirement fund fraud.
- In United States v. MgBodile, the defendant was indicted for his alleged involvement in a romance scam that defrauded a Virginia woman out of more than $6.5 million.
We also prosecuted a number of cases in 2019 involving India-based centers that scammed U.S. residents, including the elderly. Criminal India-based call centers seek to profit by exploiting U.S. residents through various phone scams, including the impersonation of government officials. The call center operators threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees. If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds.
- In United States v. Excellent Solutions BPO, et al., eight defendants pled guilty and were subsequently sentenced in January 2020 to up to four years and nine months for their involvement in an India-based IRS impersonation scam that victimized thousands of United States residents and resulted in over $3.7 million in losses.
- In United States v. Charania, the defendant was sentenced to one year and four months imprisonment based on his involvement in an India-based call center scam that victimized over 340 people in the U.S., resulting in over $200,000 in losses.
- In United States v. Patel, the defendant was indicted for allegedly using fake identifications to retrieve over $150,000 from over 160 victims of India-based tele-fraud. He pleaded guilty to wire fraud on March 4, 2020.
- In United States v. Thakur, the defendant was indicted for his alleged involvement in an India-based call center scam that victimized approximately 288 people across the U.S., resulting in over $330,000 in losses.
In 2019, Cecilio Nemencio Rodriguez-Rivas was prosecuted for a wire fraud conspiracy in which he and others engaged in a grandparent scam. As part of the scam, co-conspirators of Rodriguez-Rivas made fraudulent telephone calls to elder victims purporting to be the victim’s grandchild. The callers pretended that they were in need of emergency funds, which Rodriguez-Rivas received in Georgia. Rodriguez-Rivas pled guilty and was sentenced to one year and one month in prison.
Also in 2019, our office indicted James Torchia, the CEO of a Georgia company named Credit Nation. Torchia allegedly ran a fraud scheme that caused investors, many of whom were elderly, to spend over $40 million on his company’s promissory notes. Torchia allegedly stole investors’ money by misrepresenting the security of their investments, and how he would use their money.
Katherine Craig was indicted in 2020 on federal charges of mail fraud. Craig allegedly embezzled over $1.7 million dollars from a company she was managing and defrauded over 1000 timeshare owners, most of whom were elderly retirees. Craig operated the timeshare resort where she worked without casualty insurance, even though the Lease Agreements required the resort to maintain casualty insurance. Over the years, the buildings at the resort deteriorated through storm damage and neglect and by early 2016, the resort was in such bad shape that Craig was not allowing any timeshare owners to vacation there anymore.
In addition to prosecuting cases involving elder victims, our office holds quarterly meetings for the Transnational Elder Fraud Strike Force. These quarterly meetings bring together federal, state, and local partners to discuss the latest scams targeting elder Americans, share investigative techniques, and coordinate in the investigation and prosecution of these transnational scams.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
We engage in community outreach to educate local law enforcement and residents about how they can assist in the fight against, and protect themselves from, fraud schemes that target elder Americans. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office Reaches Agreement with DeSoto Parish to Increase Accessibility Pursuant to the Americans with Disabilities ActRead the Press Release
SHREVEPORT, La. – United States Attorney for the Western District of Louisiana David C. Joseph announced the signing of an agreement with DeSoto Parish to improve access to all aspects of civic life for persons with disabilities. The agreement is part of the Department of Justice’s Project Civic Access (PCA), a wide-ranging effort to ensure that parishes/counties, cities, towns, and villages comply with the Americans with Disabilities Act (ADA) by working to eliminate barriers that may prevent people with disabilities from participating fully in community and civic life.
DeSoto Parish has worked cooperatively with the Department of Justice and, in signing the settlement, has made significant progress in meeting ADA requirements. Under the settlement agreement, DeSoto Parish will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, courthouses, sheriff’s offices, and detention centers. The agreement also requires DeSoto Parish to:
- make physical modifications of facilities to improve accessibility, such as accessible parking, accessible routes into and through the facilities, accessible restrooms, and the provision of services at alternate, accessible locations;
- train staff regarding the requirements of the ADA and appropriate ways of ensuring program access;
- ensure effective communication to individuals with disabilities, including individuals who are deaf or hard of hearing or blind or have low vision; and
- post and publish the identity and functions of the Parish ADA Coordinator, as well as the Parish’s ADA Grievance Procedure Policy.
“The U.S. Attorney’s Office for the Western District of Louisiana stands firm in its commitment to advance the goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities,” said U.S. Attorney Joseph. “Our office will continue to support the rights of individuals with disabilities to access civic life.”
Assistant U.S. Attorney Karen J. King handled the case. For more information about the ADA, the agreement and the PCA initiative, individuals may access the ADA web page at: www.ada.gov/civicac.htm or call the toll-free ADA Information Line at: 800-514-0301 or 800-514-0383 (TTY).
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- make physical modifications of facilities to improve accessibility, such as accessible parking, accessible routes into and through the facilities, accessible restrooms, and the provision of services at alternate, accessible locations;
Two Bank Insiders and A Third Man Arrested in Bank Bribery and Money Laundering ConspiracyRead 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 Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), announced today the arrest of HERODE CHANCY and MICHAEL ALBARELLA, who are both employed as managers at a Manhattan branch of a national bank (“Bank-1”), and ADEDAYO ILLORI for engaging in a scheme to fraudulently obtain business loans and to launder the proceeds of that scheme using a bank account opened with a stolen identity. CHANCY, ALBARELLA, and ILORI were arrested in the New York metropolitan area and are expected to be presented before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “Bank employees, Herode Chancy and Michael Albarella, and another individual, Adedayo Illori, allegedly engaged in a scheme to use a stolen identity to secure over $1 million in illegal loans. Furthermore, the defendants allegedly offered the underwriter of the fraudulent loans – who unbeknownst to them was an undercover law enforcement officer – a commission to carry out their scheme. The defendants stated that they wanted to ‘bust out’ the ill-gotten loans, but ironically find themselves busted for serious federal crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “The three subjects in this fraud scheme allegedly thought they could ‘bust out’ of a loan, and steal millions of dollars that wasn’t theirs. But they got caught, and now they’ll have even more trouble ‘busting out’ of their next destination, a federal prison. I want to commend the work done by our law enforcement partners and the FBI New York Joint Organized Crime Task Force, who do all they can to protect the public from fraudsters who use insiders to aid and hide their theft.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Driven by greed, Chancy and Albarella, allegedly abused their positions as bank officials to perpetrate this loan ‘bust out’ scheme. By allegedly conspiring with Ilori, the three men were responsible for fraudulently obtaining in excess of $1 million in loans while victimizing the lending institution. Utilizing the expertise of HSI New York’s El Dorado Financial Crimes Task Force along with our law enforcement partners, this trio was arrested and will have to face criminal charges including money laundering, wire fraud, identity theft and bank bribery.”
As alleged in the Complaint unsealed in Manhattan federal court[1]:
From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and ILORI conspired to obtain business loans fraudulently from a third-party commercial lender with the intent to “bust out,” that is, not repay, the loans. CHANCY and ILORI submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans in furtherance of this scam. The business loan applications submitted by CHANCY and ILORI included doctored bank statements and listed the identities of other persons as the loan applicants. CHANCY and ILORI also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. CHANCY and ILORI believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer.
To effect their illegal scheme, CHANCY and ILORI conspired with bank insider ALBARELLA to launder approximately $1 million of the expected proceeds of the loan scheme. ALBARELLA opened a bank account at Bank-1 using a stolen identity in order to launder the proceeds of the loan scheme, and ALBARELLA accepted a $10,000 bribe in order to open the bank account.
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CHANCY, 40, and ILORI, 42, are charged with: (1) conspiracy to commit wire fraud, (2) wire fraud, (3) aggravated identity theft, and (4) conspiracy to commit money laundering. ALBARELLA, 34, is charged with: (1) conspiracy to commit money laundering, and (2) bank bribery.
Wire fraud and conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, carries a maximum of 20 years in prison. Aggravated identity theft, in violation of 18 U.S.C. § 1028A, carries a mandatory term of two years in prison, to be served consecutively to any other term of imprisonment. Conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h), carries a maximum term of 20 years in prison. Bank bribery, in violation of 18 U.S.C. § 215, carries a maximum term of 30 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the outstanding investigative work of the FBI and HSI.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
The allegations in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Temple Man Sentenced to 40 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
In Waco this morning, a federal judge sentenced 51–year–old Shozo “Sho” Tanaka to 40 years in federal prison for producing and possessing child pornography, announced U.S. Attorney John F. Bash, FBI San Antonio Division Special Agent in Charge Christopher Combs and Temple Police Chief Jim Tobin.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Tanaka pay a $10,000 assessment under the Justice for Victims of Trafficking Act and be placed on supervised release for the remainder of his life after completing his prison term.
“The 40-year sentence imposed in this case is a just punishment for the unconscionable abuse of a child. Our office does nothing more important than prosecuting predators to make sure they can never hurt children again,” stated U.S. Attorney Bash.
On August 6, 2019, Tanaka pleaded guilty to one count of production of child pornography and one count possession of child pornography. According to court records, from August 2014 to June 2018, Tanaka coerced a minor to engage in sexually explicit conduct for the purpose of producing visual images of such activity. On November 19, 2018, officers with the Temple Police Department executed a search warrant at the defendant’s address. At that location, authorities seized numerous electronic items and storage devices. A subsequent forensics review of the seized materials revealed numerous videos that contained video footage of the minor victim being sexually assaulted by the defendant. Tanaka has remained in custody since November 19, 2018.
The FBI and Temple Police Department investigated this case. Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Surry Man Sentenced for Trafficking in Counterfeit Pills Containing CarfentanilRead the Press Release
Bangor, Maine: A Surry man was sentenced yesterday in federal court in Bangor for holding for sale counterfeit drugs, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Adam Fitzherbert, 55, to two years in prison and three years of supervised release. Fitzherbert pleaded guilty on September 3, 2019.
According to court records, on February 6, 2018, Fitzherbert was arrested at his residence in Surry while agents were executing a search warrant there. While executing the warrant, agents from the U.S. Food and Drug Administration recovered 91 counterfeit Oxycodone HCL pills from Fitzherbert’s bedroom that were later found to contain carfentanil. Fitzherbert admitted purchasing the pills through a “dark web” marketplace.
“The opioid epidemic that has resulted in overdoses and deaths is a national public health crisis. Those who contribute to that crisis by illicitly distributing opioids, whether online or through conventional drug distribution methods, will be brought to justice,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations’ New York Field Office. “The FDA is fully committed to disrupting and dismantling networks engaged in the manufacturing and sale of illicit opioids and counterfeit prescription drugs. We will continue to pursue and bring to justice those who threaten the health and safety of Americans by distributing dangerous products.”
FDA’s Office of Criminal Investigations, the Maine Drug Enforcement Agency, the Maine State Police, the Hancock County Sheriff’s Office and the Ellsworth Police Department investigated the case. The U.S. Attorney’s Office prosecuted the case as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Sports Bettor Charged with Threatening Tampa Bay Rays Players and Other Professional AthletesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Benjamin Tucker Patz (23, New York, New York), a/k/a “Parlay Patz,” with transmitting threats in interstate or foreign commerce. If convicted, Patz faces a maximum penalty of five years in federal prison.
According to the
complaint , in 2019, Patz made numerous threats to carry out violence against professional athletes and/or their family members via Instagram messages, using anonymous accounts. In many of the messages, Patz threatened to enter the athletes’ homes and behead them or their family members. Some of Patz’s threats also contained derogatory terms and racial slurs directed at those individuals.On July 20, 2019, the Tampa Bay Rays lost a home game to the Chicago White Sox. That same day, four baseball players for the Tampa Bay Rays, as well as a baseball player for the Chicago White Sox, received Instagram direct messages from Patz in which he threatened to carry out acts of violence against them. Patz made the following threats to the Tampa Bay Rays players:
- “I will enter your home while you sleep…And sever your neck open…I will kill your entire family…Everyone you love will soon cease…I will cut up your family…Dismember the[m] alive”;
- “Your family’s necks will be severed open with a dull knife!...Your family will die!”;
- “Unfortunately 0-5 against the Chicago White Sox isn’t going to cut it. Because of your sins, I will have to behead you and your family”; and
- “Your family will be beheaded.”
Patz, who resides in both New York and California and goes by the moniker “Parlay Patz,” had recently won more than $1 million by wagering on sports events.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and is part of the Bureau’s Integrity in Sport and Gaming Initiative, which is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
South Carolina Man Pleads Guilty to Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. - A Blacksburg, South Carolina man, Joe Barlow Owens, 44, pleaded guilty in federal court Tuesday, before U.S. District Judge Claria Horn Boom, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
Owens admitted that on February 25, 2019, in Knox County, he knowingly possessed with intent to distribute more than 50 grams of methamphetamine, and also possessed a firearm in furtherance of this drug trafficking crime. According to his guilty plea agreement, law enforcement officials searched the defendant’s vehicle and found the methamphetamine, cash, and a loaded firearm, that Owens admitted was to protect his drugs and drug proceeds. Owens also admitted that he knew he had a prior felony conviction, for possession with intent to distribute methamphetamine..
Owens was indicted in July 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; jointly announced the guilty plea.
The investigation was conducted by the DEA. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
Owens’ sentencing date is TBD. He faces a sentence of not less than 15 years, up to life imprisonment, and a maximum fine of $20 million for the drug offense, and a consecutive sentence of not less than 5 years for the firearm offense. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Saint Louis Alderman Larry Arnowitz Indicted for Using Campaign Funds for His Own Personal Use and ExpensesRead the Press Release
St. Louis, MO –Larry Arnowitz, 66, of St. Louis, Missouri, was indicted by a federal grand jury on one count of mail fraud related to his illegal use of campaign funds for his personal use and expenses.
According to the Indictment, Arnowitz serves as the Alderman for the 12th Ward of the City of St. Louis, having first been elected during 2011. Arnowitz maintains his political campaign account under the name “Friends of Larry Arnowitz.” Numerous individuals and organizations have contributed to the Friends of Larry Arnowitz based upon representations that their political donations would be properly and legally used for campaign and reelection purposes. From June, 2015 through February, 2019, Arnowitz instead used donated campaign funds for personal expenses, unrelated to any legitimate campaign or reelection purpose. Arnowitz used funds from the Friends of Larry Arnowitz campaign account to make payments towards his personal residential mortgage and for other personal expenses, and he made substantial cash withdrawals from the account for his own personal use and expenses. In order to conceal his fraud, Arnowitz filed false reports with the Missouri Ethics Commission, which reports failed to identify the many cash withdrawals from the Friends of Larry Arnowitz campaign account, and which failed to identify payments made directly from the Friends of Larry Arnowitz campaign account which were made for his own personal use, unrelated to any campaign or reelection purpose. As one example, on February 13, 2019, Arnowitz withdrew $5,000 from his Friends of Larry Arnowitz campaign account in the form of a cashier’s check, which he then mailed to Ocwen Financial Services in partial payment of his personal residential mortgage. United States Attorney Jeff Jensen stated, “Alderman Arnowitz abused the trust of many individuals and organizations that contributed to his political campaign fund for several years. This type of corruption by our elected officials will not be tolerated, and federal law enforcement will continue to investigate and prosecute these types of criminal schemes in order to insure the integrity of our political processes.” "Rooting out public corruption is a top priority for the FBI because of the abuse of public trust," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "When citizens donate money to an election campaign, they are supporting a candidate to represent them, not to pay for their personal expenses."
If convicted, Arnowitz faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Repeat Offender Pleads Guilty in Federal Court to Baltimore County Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Rondell Ronald Hackett, Jr., age 34, of Middle River, Maryland, pleaded guilty today to the federal charge of conspiracy to distribute and possess with intent to distribute cocaine. At the time of his arrest, Hackett was on supervised release for a previous federal drug conviction.
The guilty plea 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; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Colonel Woodrow W. Jones III, Acting Superintendent of the Maryland State Police.
According to Hackett’s plea agreement, HSI and the Baltimore County Police Department were investigating a drug trafficking organization in Baltimore County. Hackett was identified as a member of the organization, along with Tony Lee Bauer, Aaron Kenith Waller, Gary Gaines-Hidalgo, Adrian Gilberto Herrera-Diaz, and Carlos Alejandro Castro-Castro. In December 2017, Gaines arranged to purchase kilograms of cocaine for $26,500/kilogram from a confidential source (CS), who was working with law enforcement. Thereafter, Gaines arranged to resell the cocaine to Herrera for $28,000/kilogram. Gaines and Castro arranged to have 10 kilograms of cocaine delivered to them in Baltimore.
As detailed in his plea, on January 26, 2018, Gaines and Castro entered the United States from Mexico, then traveled to Baltimore. Gaines and Castro agreed to sell three kilograms of cocaine to Herrera, Bauer, and Waller, with additional sales of kilograms of cocaine to follow the initial purchase. Gaines agreed to meet the CS in the parking lot of a Baltimore hotel, and told Herrera, Bauer, and Waller to also meet him there.
Three cars arrived at the agreed-upon location, one driven by the CS. Hackett drove one vehicle with Herrera in the front passenger seat and Gaines in the driver’s side rear passenger seat. Waller drove the third vehicle, with Bauer in the front seat and Castro in the rear passenger seat. Bauer, Herrera, and Gaines exited their vehicles and met with the CS. The CS then opened the trunk of his car, which contained two kilogram-shaped packages, one of powder cocaine and one kilogram of “sham,” or fake narcotics. Gaines placed his hand in the bag containing the packages and members of HSI and the MSP Tactical Team approached. Hackett and Waller attempted to drive away, but were stopped. In Hackett’s car, a loaded 9mm semi-automatic pistol was recovered from the center console and a loaded .45-caliber semi-automatic pistol was recovered from the rear passenger-side floor of the vehicle. On the rear seat was a vinyl bank bag containing bank-banded cash and a white bag containing cash. A search of Bauer also recovered banded-up amounts of cash. In all, law enforcement recovered $129,583 in cash from the defendants, their vehicles, and their residences.
As part of his plea agreement, Hackett will be required to forfeit the two loaded firearms and $129,583 in cash recovered after the arrests of Hackett and his co-defendants, and four vehicles, including a Range Rover, a Mercedes Benz, a Cadillac Escalade, and a Cadillac CTS.
Hackett and the government have agreed that, if the Court accepts the plea agreement, Hackett will be sentenced to between 10 and 15 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for June 26, 2020 at 9:30 a.m.
Gary Gaines-Hidalgo, age 28, and Carlos A. Castro-Castro, age 36, both of Baja California, Mexico, pleaded guilty to the drug conspiracy and were each sentenced to 37 months in federal prison. Tony Lee Bauer, age 37, of Baltimore, Maryland, previously pleaded guilty to the drug conspiracy and to possession of a firearm in furtherance of a drug trafficking crime and Aaron Kenith Waller, age 52, of Crofton, Maryland, previously pleaded guilty to the drug conspiracy. Both are awaiting sentencing.
The final defendant, Adrian Herrera-Diaz, age 29, of Baltimore County, absconded in March 2018 while on home detention with electronic monitoring. Herrera-Diaz was arrested in Georgia in August 2019 and returned to Maryland, where he is scheduled for trial on March 30, 2020. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 HSI Baltimore, the Baltimore County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher Romano and Derek E. Hines, who are prosecuting the case.
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Reno Man Sentenced to 18 Months in Prison for Threatening to Shoot Bank ManagerRead the Press Release
RENO, Nev. – A Reno resident was sentenced today to 18 months in prison and three years of supervised release for making phone calls in which he threatened to shoot a bank manager, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
In November 2019, a jury convicted Robert Liesse of two counts of interstate communications containing a threat to injure another person. U.S. District Judge Howard D. McKibben presided over the three-day jury trial and today’s sentencing hearing.
According to court documents, Liesse, 54, made two phone calls to Bank of America call centers on July 26 and 27, 2018, threatening to shoot a bank manager. Liesse, who was adamant that he was not joking, told the manager specific details of how and when he planned to carry out his threats. For example, Lisesse repeatedly made threats such as: “I want the money available tomorrow or that guy is not going to see his family. I’m telling you right now. I have a nine millimeter, sixteen rounds in it.” Further, he slipped threatening and derogatory notes under a bank door and threatened three different bank call center operators. He also took a BB gun resembling a real pistol to the bank and pointed it toward security cameras.
The case is a product of an investigation by the FBI and the Reno Police Department. Assistant U.S. Attorneys Andolyn Johnson and James Keller prosecuted the case.
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Rehoboth Beach Man Sentenced to 111 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
WILMINGTON, Del. – Chief U.S. District Judge Leonard P. Stark sentenced Michael Henry, a 40 year-old Rehoboth Beach resident, to 111 months in prison for possessing cocaine with the intent to distribute it, as well as possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, Henry was on probation following a 2017 State of Delaware sexual assault conviction. Because Henry had been twice convicted of federal gun-possession charges, he was prohibited from possessing any firearm.
On February 12, 2019, Henry’s state probation officers learned that Henry was violating his probation by carrying a gun and selling drugs. On the basis of that information, the probation officers searched Henry’s vehicle and residence. As they were conducting the search, law enforcement located Henry hiding underneath a mattress. Dispersed throughout the residence and vehicle, the officers discovered more than 333 grams of cocaine, 14 grams of marijuana, digital scales used to weigh drugs, and several “trap” soda cans—cans with a hidden compartment used to conceal contraband. Concealed between the box springs and the mattress where Henry was hiding, the officers found a loaded 9 mm handgun. Henry confessed that he had been selling the drugs since October 2018.
David C. Weiss, U.S. Attorney for the District of Delaware, commented on the sentence: “Despite having been convicted twice of federal gun charges, and despite being on active probation, this defendant chose to deal drugs while illegally possessing a firearm. Defendant couldn’t hide his person; couldn’t hide his drugs; and couldn’t hide his gun. The message is clear—if you possess a gun and sell drugs we will find you and you will go to jail for a long time.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Delaware State Police, and the Delaware Department of Probation and Parole participated in the investigation. Assistant U.S. Attorney Christopher R. Howland prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-00068-LPS.
Pottawattamie County Man Sentenced for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – On February 28, 2020, United States District Court Chief Judge John A. Jarvey sentenced Jason Eric Leinen, age 46, of Council Bluffs, to 97 months in prison for possession of child pornography, announced United States Attorney Marc Krickbaum. Leinen was ordered to serve five years of supervised release to follow his prison term, pay $500 in restitution to each victim seeking restitution, and to comply with sex offender registry requirements upon release.
The investigation began in April 2018, when a Pottawattamie County Sheriff’s Department Deputy was working undercover investigating users sharing child pornography on a peer-to-peer file sharing network. The program identified an IP address sharing known images and videos of child pornography. A search warrant was executed on Leinen’s residence and a desktop drive and PC were seized. The forensic exam produced numerous links to the peer-to-peer file sharing networks, child erotica, and child pornography.
This matter was investigated by the Pottawattamie County Sheriff’s Department and the Council Bluffs Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pickens Drug Trafficker Sentenced to 300 MonthsRead the Press Release
Greenville, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Bruce Allen Howland, 58, of Easley, South Carolina, was sentenced to 25 years in federal prison after pleading guilty to violating federal drug distribution laws.
Evidence presented at the change of plea hearing showed that on February 28, 2019, in Pickens County, two confidential sources under the supervision of law enforcement placed recorded calls to Howland and arranged a meet at his trailer. On the call, Howland told the confidential sources that he was “good,” meaning that he had drugs available to be purchased. The confidential sources were searched and equipped with recording devices before going to Howland’s property. They purchased two grams of methamphetamine using funds provided by law enforcement. They left the trailer, turned over the drugs to law enforcement, and were searched again.
Based on this controlled purchase, law enforcement obtained a search warrant and executed it. Howland was in the trailer and refused to open the door, and thus forced entry was made. Investigators seized three pounds of crystal meth and one pound of liquid meth. Howland had a lengthy history of drug distribution dating back to 1992.
The case was investigated by the Pickens County Sheriff’s Office and Homeland Security Investigations. Senior United States District Judge Henry M. Herlong, Jr., sentenced Howland to 300 months in federal prison, to be followed by 10 years of supervised release. There is no parole in the federal system. Assistant United States Attorney Bill Watkins prosecuted the case on behalf of the Government.
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Northern Air Cargo LLC, Agrees to Pay $4.7 Million for Allegedly Falsely Reporting Delivery of U.S. Mail Transported InternationallyRead the Press Release
The Justice Department announced today that Northern Air Cargo LLC, has agreed to pay $4.7 million to resolve its potential liability under the False Claims Act for falsely reporting information regarding the delivery of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS). Northern Air Cargo is a cargo airline headquartered in Anchorage, AK.
“Government contractors must abide by their contractual commitments to the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Those who knowingly misrepresent compliance with their contractual obligations will face appropriate consequences.”
USPS contracted with Northern Air Cargo to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and Department of State locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Northern Air Cargo was required to submit electronic scans of the mail receptacles to USPS that confirmed the time and delivery of the mail at the specified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. Today’s settlement resolves allegations that Northern Air Cargo submitted scans that falsely reported the time that possession of the mail was transferred.
“The safeguarding and timely delivery of the U.S. Mail to both international and domestic venues is of critical importance to the U.S. Postal Service,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by promptly investigating allegations of contractual malfeasance, including instances of delivery falsification. Working closely with the Department of Justice’s Civil Division, our special agents worked diligently to ensure an appropriate resolution.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, in coordination with the USPS Office of the Inspector General and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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.
Nevada Fraudster Sentenced to More Than Five Years in Prison for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
A Las Vegas resident was sentenced to 65 months in prison today for his role in a stolen identity tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Josiah Ntekume engaged in a scheme to file false tax returns using stolen identities in order to obtain tax refunds. Coconspirators provided Ntekume with names, addresses, dates of birth, and social security numbers, and Ntekume used these stolen identities to establish prepaid debit card accounts. The coconspirators then caused refunds fraudulently obtained from the Internal Revenue Service (IRS) to be deposited into those accounts.
When Ntekume was arrested on March 13, 2012, he had in his backpack approximately 250 prepaid debit cards in the names of other individuals, on which more than more than $200,000 in fraudulent refunds had been loaded. The backpack also contained stolen identities for nearly 200 other individuals that were used either to file false returns or to establish additional prepaid debit cards.
On Dec. 4, 2019, Ntekume pleaded guilty to aggravated identity theft, wire fraud, theft of government property, and fraud in connection with access devices.
In addition to the term of imprisonment, U.S. District Judge James C. Mahan ordered Ntekume to serve three years of supervised release and to pay approximately $221,599 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn, Stephen K. Moulton, and Arthur Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Missouri Man Sentenced to 19 Years for Attempting to Provide Material Support to ISISRead the Press Release
A Columbia, Missouri, man was sentenced to 236 months in prison in federal court today for his role in making preparations to launch a terrorist attack with persons he believed were members of the Islamic State of Iraq and al-Sham (ISIS), but who were actually undercover law enforcement employees, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney Timothy A. Garrison for the Western District of Missouri.
Robert Lorenzo Hester Jr., 28, was sentenced by U.S. District Judge Greg Kays to 236 months in federal prison without parole. The court also sentenced Hester to a lifetime of supervised release following incarceration.
Hester pleaded guilty on Sept. 24, 2019, to attempting to provide material support to ISIS from October 2016 to Feb. 17, 2017, knowing that it was a designated foreign terrorist organization that engages in terrorist activity. Hester actively attempted to plot a mass casualty attack with others that he believed were acting on behalf of ISIS. Hester drew the attention of law enforcement through advocating violence on social media, and when contacted by undercover officers, he immediately showed that he wanted action in addition to words. Law enforcement engaged Hester to see if he was truly committed to an act of terrorism, and his responses left no doubt that he was.
Hester, who has been in federal custody since his arrest in February 2017, is a U.S. citizen. He was enlisted in the U.S. Army for less than a year, receiving a general discharge from service in mid-2013.
According to the plea agreement, multiple confidential sources reported to the FBI that Hester had posted a variety of material on multiple social media accounts. Hester indicated that he had converted to Islam, expressed animus toward the United States, and posted photos of weapons and the ISIS flag, among other material, suggesting an adherence to radical Islamic ideology and a propensity for violence. In order to assess whether Hester posed a security threat, the FBI undertook a series of investigative steps, beginning with an examination of whether and to what extent Hester would engage directly online with confidential sources working for the FBI and, later, with FBI employees working in an undercover capacity.
FBI employees using undercover identities communicated with Hester via social media, texting and personal meetings on several occasions. In those conversations, Hester said, for example, that the U.S. government should be “overthrown,” and he suggested “hitting” the government “hard,” while noting that it would not be “a one man job.” Hester identified categories of potential targets for attack, including “oil production,” “military bases,” “federal places,” “government officials,” and “Wall Street.” Hester specified that “[a]ny government building in DC would get attention of everyone.” He said he wanted a “global jihad.” Citing his brief enlistment in the U.S. Army, Hester also claimed proficiency with “assault weapons” and said that his favorite firearm was the AK-47 rifle. Hester spoke about the perceived ease in which one could gain access to a military base.
Hester established an apparent willingness to act on the statements that he made online. An undercover FBI employee conversing online with Hester offered an in-person meeting with a like-minded “brother.” Hester agreed to meet and subsequently did meet on numerous occasions with a person who was described as, and Hester believed was, a terrorist operative – but who, in reality, was an employee of the FBI working in an undercover capacity. Throughout their conversations, the undercover employee provided Hester a number of opportunities to dissociate with no questions asked, but Hester repeatedly reaffirmed his commitment to their plot.
In the meetings, the FBI undercover made clear to Hester that the undercover was representing a foreign terrorist organization (ISIS) and that the undercover was planning an attack that would involve multiple operatives, deploy bombs and guns, and result in mass casualties. Hester indicated through his statements and actions that he was ready and willing to participate and assist in the “plot.”
Hester obtained, at the undercover’s request, items that he was told would be used as bomb components, including boxes of roofing nails. The undercover made clear to Hester that the nails’ purpose was to maximize the number of casualties. In addition, Hester did not hesitate when the undercover showed him a cache of three machine guns and two handguns that would be used in the “attack,” and two pipes that would be used to construct the “bombs.” In fact, in the days after seeing this display, which was arrayed in the rear compartment of the undercover’s SUV, Hester provided information on storage units that could be used to hold the weapons and agreed to obtain additional supplies for the operation.
As the plea agreement cites in greater detail, throughout the investigation, Hester expressed his interest in and exhibited his willingness to commit violence in support and on behalf of ISIS.
This case was prosecuted by Assistant U.S. Attorneys Brian P. Casey and David Raskin and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section. It was investigated by the FBI.
Meridian Man Found Guilty under Project EJECT for Possessing Ammunition and a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Dominique Dontona Ashford, 36, of Meridian, was found guilty yesterday, after a one day trial before Senior U.S. District Judge Tom S. Lee, of one count of being a convicted felon in possession of ammunition, and one count of being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ashford has previous convictions for robbery, possession of cocaine, burglary and sale of cocaine within 1,500 feet of a church. Due to the number and nature of Ashford’s prior convictions he faces a minimum of fifteen years in prison, and a maximum potential sentence of life in prison, as to each of the two counts. He will be sentenced by Judge Lee on June 11, 2020.
On March 18, 2019, officers with the Meridian Police Department responded to a 911 call reporting a domestic disturbance. Upon arriving at the residence, the officers spoke with the complainant who told them she wanted her boyfriend, Ashford, out of her house. Officers spoke with Ashford and told him they would need to pat him down for weapons. Ashford was found to be in possession of suspected narcotics during the pat down search. When officers began to take Ashford into custody due to the suspected narcotics, he struggled, and the officers had to take him to the ground in order to complete the arrest.
Once Ashford was in handcuffs, the officers searched his pockets. Three .38 caliber bullets were found in Ashford’s left front pants pocket. A body camera recording made by one of the officers showed the discovery of the ammunition. The complainant told officers that she did not own any firearms and that she wanted all of Ashford’s belongings out of her house. The complainant testified at trial that Ashford threatened to beat her with a handgun earlier that day.
Meridian Police officers searched the house and located a .38 caliber Taurus revolver, loaded with five .38 caliber bullets, in a closet in a back bedroom. The complainant identified the revolver as the pistol with which she had been threatened. Officers with the Meridian Police Department, the Lauderdale County Sheriff’s Office and an ATF agent testified at trial in addition to Ashford’s ex-girlfriend.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Marion County man guilty of firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a two-day trial, Oneil Wayne South, of Fairmont, West Virginia, was found guilty today by a federal jury of a firearms charge, U.S. Attorney Bill Powell announced.
After deliberating for two hours, the jury found South, age 45, guilty of one count of “Unlawful Possession of a Firearm as Drug User.” South is prohibited from having a firearm because of drug use, and has a 9mm pistol in March 2019 in Marion County.
South pled guilty to one count of “Reckless Flight from a Law Enforcement Officer” in February 2020. South admitted to fleeing from law enforcement after being asked to stop when on the property of the FBI Criminal Justice Information Services Division in Harrison County in March 2019.
South faces up to 10 years incarceration and a fine of up to $250,000 for the firearms charge. South faces up to five years incarceration and a fine of up to $2,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Andrew R. Cogar and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the Fairmont Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.Manhattan U.S. Attorney Announces Guilty Plea of Correctional Officer at Metropolitan Correctional Center for Engaging in Abusive Sexual Contact with InmatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that COLIN AKPARANTA, a correctional officer at the Metropolitan Correctional Center (“MCC”), which houses federal inmates in Manhattan, pled guilty before United States Magistrate Judge Kevin Nathaniel Fox to one count of abusive sexual contact of an inmate, in violation of Title 18, United States Code, Section 2244(a)(4), and one count of deprivation of the civil rights of that inmate, in violation of Title 18, United States Code, Section 242. In connection with the plea, AKPARANTA also admitted that he engaged in abusive sexual contact with six additional victims, and engaged in sexual acts with all seven of the victims.
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, Colin Akparanta abused his position of authority as a correctional officer at the MCC to sexually abuse at least seven inmates whose safety and security he was duty-bound to protect. This Office has prosecuted, and will continue to prosecute, correctional officers who use their positions to engage in criminal conduct, and I encourage anyone with knowledge of this or similar criminal conduct involving correctional officers at the MCC to contact my Office.”
According to the Indictment, other filings in this case, and statements during court proceedings, including AKPARANTA’s guilty plea hearing:
AKPARANTA has been employed as a correctional officer at the MCC since 2004.
Between in or about late 2012 and in or about April 2018, AKPARANTA used his official position to engage in sexual acts and contact with at least seven female inmates at the MCC while they were under AKPARANTA’s custodial, supervisory, and disciplinary authority. AKPARANTA digitally penetrated the victims’ vaginas and touched their breasts, buttocks, and/or genitalia. AKPARANTA also had some of the victims touch his penis over his pants. In addition, AKPARANTA smuggled contraband, including, but not limited to, personal hygiene items, makeup, and food into the MCC for some of the victims, and, with respect to at least one of the victims, explicitly conditioned his provision of contraband on the inmate’s continued performance of sexual acts with him. AKPARANTA also asked the victims for their contact information in order to reach them after their release.
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COLIN AKPARANTA, 43, of Irvington, New Jersey, pled guilty to one count of abusive sexual contact, which carries a maximum sentence of two years in prison, and one count of deprivation of civil rights, which carries a maximum sentence of 10 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 defendant will be determined by the judge. AKPARANTA is scheduled to be sentenced by the Honorable Lorna G. Schofield on July 8, 2020.
Any individuals who believe they have information concerning COLIN AKPARANTA or any criminal conduct involving correctional officers at the MCC should contact the United States Attorney’s Office at (866) 874-8900.
Mr. Berman praised the investigative work of the DOJ Office of the Inspector General and the special agents of the United States Attorney’s Office.
The prosecution is being handled by the Office’s Public Corruption, Violent and Organized Crime, and Civil Rights Units. Assistant U.S. Attorneys Lara Pomerantz, Sarah Krissoff, and Rachael Doud are in charge of the prosecution.
Lecanto Medical Biller Sentenced in Large Healthcare Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Teresa Johnson (53, Lecanto) to five years’ probation, with four months of home detention, for conspiring with a local doctor to commit health care fraud. As part of her sentence, the court also ordered Johnson to pay restitution to the defrauded federal health care programs and, entered a money judgment of more than $5,700, representing a portion of Johnson’s health care fraud proceeds.
Johnson had pleaded guilty on October 10, 2019.
According to court documents, Johnson owned and operated a medical billing company, Tri-County Billing, which submitted mostly false and fraudulent claims for three clinics owned and operated by Doctor 1 (recently deceased). The clinics were located in Crystal River, Spring Hill, and Celebration. Most of the false claims from Doctor 1’s clinics were submitted to government healthcare programs including Medicare, Medicaid, TRICARE, and CHAMPVA. Johnson had previously worked for Doctor 1 in several different capacities before Doctor 1 financially assisted her in opening Tri-County Billing. Doctor 1 filed bankruptcy on behalf of his medical practice in April 2019.
As part of the scheme, Doctor 1 employed numerous health care providers, many who were not authorized to perform, and prohibited from, billing for medical services. Doctor 1 directed Johnson to bill claims performed by these prohibited health care providers as if they were rendered by Doctor 1, when they were not. One of these providers was a pain management doctor who had been denied enrollment in the Medicare and Medicaid program. Another doctor had been excluded from billing, directly or indirectly, any government healthcare programs. Doctor 1 also hired nurse practitioners to perform medical services, and directed Tri-County to submitted claims as if a doctor had performed those services. Both Johnson and Doctor 1 knew all of these claims were false and fraudulent.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, the Department of Defense, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, and the Florida Office of Attorney General’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney Kelley Howard-Allen.
Last of Defendants Convicted in Pensacola-Based Dogfighting InvestigationRead the Press Release
PENSACOLA, FLORIDA – A federal jury in Pensacola, Florida, convicted Shane Patrick Sprague, 35, of Pensacola, Florida, of felony conspiracy to violate the dogfighting prohibitions of the federal Animal Welfare Act. Co-defendants James "Tommy" Peek, 67, and Haley Cook Murph, 24, both of Milton, Florida, and David Lee Moser, 36, of Waynesboro, Tennessee, had previously pleaded guilty to seven federal felonies for their involvement with Sprague and others in a dogfighting operation centered in Pensacola. The jury acquitted co-defendant Derek Jedidiah Golson, 38, also of Pensacola.
Evidence at trial, along with admissions made by the pleading defendants in conjunction with their plea agreements, established that Sprague operated C Wood Kennels, a dogfighting operation that arranged dogfights and trafficked in fighting dogs with Moser and others outside of Florida. Moser admitted that he and Sprague agreed to fight their dogs against one another and to prepare a dog for a dogfight, and that they had discussed concealing evidence that one of Moser’s dogs had killed another dog.
Murph pleaded guilty to unlawfully conspiring with the co-defendants to violate the dogfighting prohibitions of the federal Animal Welfare Act, traveling to Steele, Alabama, to purchase a fighting dog from a known dogfighter, and possessing that dog for purposes of using the dog in an animal fighting venture. Peek pleaded guilty to unlawfully conspiring with the co-defendants to violate the dogfighting prohibitions of the federal Animal Welfare Act, delivering a dog to defendant Sprague for purposes of having the dog participate in an animal fighting venture, and possessing a dog for purposes of having the dog participate in an animal fighting venture. Moser pleaded guilty to conspiring with the co-defendants to violate the dogfighting prohibitions of the federal Animal Welfare Act.
Each of the eight counts of conviction in the case carries a maximum of five years in prison and a criminal fine of up to $250,000.
Peek was one of the sources of supply of fighting dogs to C Wood Kennels. He admitted to having sold dogs to Sprague, believing that the dogs would be used for fighting purposes. He also admitted to having sold a dog to an undercover agent after making representations about the fighting "bloodlines" as well as prior and upcoming dogfights of some of the dogs on his yard.
Murph’s role was that of a makeshift "veterinarian" for C Wood Kennels. Although Murph at no time possessed a veterinary license, she admitted to offering and performing veterinary and surgical procedures on dogs belonging to members of the conspiracy, including by treating dogs injured in a dogfight and by surgically removing dogs’ ears, including for the purpose of dogfighting. Two dogs in her "care" died from their fighting injuries. Murph also admitted to supplying a "bait" animal to test the fighting abilities of one of the co-defendant’s dogs. Finally, Murph admitted to traveling to Alabama on two occasions to receive dogs from a known dogfighter, and to keeping one of the dogs for herself for the purposes of having the dog participate in an animal fighting venture.
"These barbaric acts of animal cruelty have no place in a civilized society, and the U.S. Attorney’s Office will pursue and prosecute these criminals to the fullest extent of the law," said U.S. Attorney Lawrence Keefe of the Northern District of Florida. "Societies are measured in part by how well they treat their domestic animals, and these defendants failed that test miserably – and now will pay the consequences."
"The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling," said Special Agent-in-Charge Jason M. Williams of the U.S. Department of Agriculture-Office of Inspector General. "Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures."
Assistant United States Attorney Ryan Love and Department of Justice Trial Attorney Ethan Eddy prosecuted the case. The matter was investigated by the U.S. Department of Agriculture, Office of the Inspector General.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Las Vegas Fraudster Sentenced to More Than Five Years in Prison for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident was sentenced to 65 months in prison today for his role in a stolen identity tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
According to court documents and statements made in court, Josiah O. Ntekume engaged in a scheme to file false tax returns using stolen identities in order to obtain tax refunds. Co-conspirators provided Ntekume with names, addresses, dates of birth, and social security numbers, and Ntekume used these stolen identities to establish prepaid debit card accounts. The co-conspirators then caused refunds fraudulently obtained from the IRS to be deposited into those accounts.
When Ntekume was arrested on March 13, 2012, he had in his backpack approximately 250 prepaid debit cards in the names of other individuals, on which more than more than $200,000 in fraudulent refunds had been loaded. The backpack also contained stolen identities for nearly 200 other individuals that were used either to file false returns or to establish additional prepaid debit cards.
On December 4, 2019, Ntekume pleaded guilty to aggravated identity theft, wire fraud, theft of government property, and fraud in connection with access devices.
In addition to the term of imprisonment, U.S. District Judge James C. Mahan ordered Ntekume to serve three years of supervised release and to pay approximately $221,599 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn, Stephen K. Moulton, and Arthur Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Kenton County Man Sentenced to 207 Months for Armed Drug TraffickingRead the Press Release
LONDON, Ky. - An Independence, Kentucky man, Larry Coots, 54, was sentenced in federal court on Tuesday, to 207 months in prison, by U.S. District Judge Claria Horn Boom, for conspiring to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
Coots admitted that beginning in May 2017 and continuing through December 2017, he conspired with Cynthia Burkhart, 38, to distribute methamphetamine in Perry County.
According to his plea agreement, Coots admitted that, on December 20, 2017, law enforcement executed a traffic stop on a vehicle driven by Burkhart, with Coots as a passenger. Coots fled on foot, but was eventually apprehended. Burkhart left the scene and was later located at a hotel, where she and Coots were staying. In their room, officers found two loaded firearms, drug paraphernalia, marijuana, pills, and six ounces of methamphetamine. Coots further admitted that he possessed one of the firearms for protection, in furtherance of his drug trafficking. Coots also had a prior felony conviction and was prohibited from possessing a firearm.
Coots pleaded guilty to the charges in July 2019.
Under federal law, Coots must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was directed by the DEA and KSP. The United States was represented by Assistant U.S. Attorney Sam Dotson.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Jury convicts Billings man in meth trafficking trialRead the Press Release
BILLINGS – A jury on Tuesday convicted a Billings man accused of bringing large quantities of methamphetamine to the community for redistribution and possessing firearms to further the crime, U.S. Attorney Kurt Alme said.
The jury found Maurice Joseph Fregia, 33, guilty of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possessing a firearm in furtherance of a drug trafficking crime.
The two-day trial began on Monday.
Fregia faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory consecutive five years to life in prison, a $250,000 fine and five years of supervised release on the firearm possession crime.
U.S. District Judge Susan P. Watters presided. Sentencing is set for July 23. Fregia was detained.
“Meth dealers with firearms are causing violence in our communities and pushing Montanans toward addiction. We will continue to prosecute dealers like Fregia and his co-conspirators to the full extent of the law. I want to thank Assistant U.S. Attorneys Colin Rubich and Julie Patten, along with the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department for their good work investigating and prosecuting this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that Fregia, along with co-defendant Chad Beres, headed a large drug trafficking organization that brought large quantities of meth and other drugs into Montana from California. In April 2018, law enforcement officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force served three search warrants on three Billings residences, including a house where Fregia and Beres lived. Both Fregia and Beres were present during the search. Officers found almost 700 grams of meth, which is about 1.5 pounds and about 5,600 doses, sticking out of a clothes dryer vent, $14,538 in currency, jewelry, including a Rolex watch in Beres’ room, other drugs and various firearms and ammunition. Beres pleaded guilty to charges and was sentenced to 15 years in prison.
During the search of a second residence, occupied by co-defendant Larry Barnett, agents found meth and a handgun. Barnett, who pleaded guilty and was sentenced to seven years in prison, admitted he had received multiple pounds of meth from Fregia and Beres and had seen both men with firearms.
Assistant U.S. Attorneys Colin Rubich and Julie Patten are prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Joint Investigation Nets Multiple Arrests in Undercover Sex Trafficking OperationRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces the arrests of Justin Latronica (30, Orange Park), James Allen Shook (48, Weeki Wachee), and Timothy Veres, III (Jacksonville, 24) for attempted online enticement of a minor to engage in sexual activity. Veres was also charged with soliciting for images depicting the sexual abuse of a child. Each faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.
According to court records, in January 2020, Latronica, Shook, and Veres each traveled to an undercover location for the purpose of engaging in sexual activity with individuals they believed to be between 12 and 14 years old.
These arrests were part of a joint operation conducted between January 24 and January 27, 2020, in Orange Park Florida. The agencies involved include the Clay County Sheriff’s Office, the Naval Criminal Investigative Service, and Homeland Security Investigations, with assistance from the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and the North Florida ICAC task force. The proactive operation was conducted to identify and arrest those who perform predatory acts and exploit children online.
As part of the operation, the Clay County Sheriff’s Office also arrested two individuals, Abhishek Shah (30, Jacksonville) and Che’ Jenkins Jr. (22, Jacksonville), who have each been charged in state court with violating state law by traveling to meet a minor to engage in an unlawful sex act, soliciting a child for unlawful sexual conduct using computer services or devices, and the unlawful use of a two-way communications device.
The federal cases are being prosecuted by Assistant United States Attorneys Kelly S. Karase and Ashley Washington.
These cases are 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.
Jacksonville Tax Return Preparer Indicted on Federal Tax Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Kenyan Shondre Scott with 55 counts of aiding and assisting others with the filing of false tax returns and 4 counts of filing false tax returns on his own behalf. Each count carries a maximum penalty of three years’ imprisonment. The United States also seeks restitution for the tax losses arising out of the alleged criminal conduct.
According to the
indictment , Scott owned and operated a tax preparation business in Jacksonville and began preparing tax returns for others in 2009. Between February 2014 and April 2018, Scott defrauded the IRS by filing returns for clients in which he falsely claimed, among other things, that the clients were eligible for certain itemized deductions for which they were not eligible. In addition, he falsely claimed that some clients had incurred business losses when they did not in fact own a business. Scott also fraudulently claimed general business credits and education credits that reduce a taxpayer’s tax liability or increase a taxpayer’s tax refund on a dollar for dollar basis. The indictment specifically alleges the filing of 55 false returns on behalf of 13 taxpayers for the tax years 2013 through 2017.The indictment further alleges that Scott filed personal returns for the years 2013 through 2016 in which he fraudulently and substantially reduced the amount of his net business income and the amount of taxes owed on that income by claiming false business expenses and other false deductions and credits. The indictment also alleges that Scott fraudulently reported fake wages and a disproportionate amount of taxes being withheld from those purported wages in an attempt to lower the amount of taxes owed.
“This time of year all Americans are thinking about taxes, and the last thing they want to worry about is if their return preparer might be a crook,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Unfortunately, every year, we see shady return preparers take advantage of taxpayers trying to do the right thing. Don’t fall into that trap! Education is key, and we urge taxpayers to use extra caution, starting by visiting www.irs.gov to learn of criteria to consider when selecting a return preparer.”
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Indictment: Inmate Ran Wichita Drug Ring from A Cell in Oklahoma PenitentiaryRead the Press Release
WICHITA, KAN. – A 55-count federal indictment with 24 defendants unsealed here today alleges that an inmate ran a drug ring in Wichita from a prison cell in the Oklahoma State Penitentiary, U.S. Attorney Stephen McAllister said.
McAllister said federal agents began investigating in April 2019 and reviewed thousands of intercepted messages among the alleged traffickers.
“A large scale criminal drug conspiracy operating in Kansas whose shot caller is behind bars in another state talking on a cell phone makes this a unique case in my experience,” McAllister said. “To the alleged traffickers, I think I would say: Can you hear us now?”
The indictment contains detailed descriptions of defendants going about their daily chores, negotiating prices, handling hundreds of thousands of dollars in cash and trying to do business without drawing attention.
“Today’s arrests and indictments send a clear message: whether you are behind bars or on the street, you will be held accountable. Today, over a 100 federal, state and local officers, working together executed dozens of arrests. The impact of these arrests will be immediate, and our community will be safer due largely in part to the tireless work and dedication of our law enforcement partners. I applaud their dedication and commitment to the community we are sworn to serve,” said Timothy Langan, Special Agent in Charge of the FBI in Kansas City, Missouri.
CALLING THE SHOTS
Travis Knighten, 47, who is being held at the Oklahoma State Penitentiary in McAlester, Okla., is alleged to have been the brains behind a criminal organization that distributed methamphetamine, heroin, cocaine powder, crack cocaine and marijuana in Wichita.
Communicating by cell phone calls and text messages, Knighten is alleged to have directed the movements of almost two dozen conspirators. The indictment alleges Knighten used cell phones obtained while in custody to receive information and to coordinate times and locations for meetings with suppliers. Knighten put together deals with the assistance of a co-defendant who also is an inmate in the same prison, Armando Luna, 39. Knighten also worked with a treasurer outside the prison walls, co-defendant Travis Vontress, 43, Wichita, Kan., as well as other close associates who collected funds to pay suppliers. Lower ranking conspirators were responsible for maintaining stash houses, cutting, packaging and storing drugs, reselling the final products and other duties.
90-YEAR SENTENCE
Although Knighten is being held in Oklahoma, he is still under the authority of the Kansas Department of Corrections. He is serving a 90-year sentence for killing a corrections officer at Lansing Correctional Facility on May 22, 1993. The victim, Officer Mark Avery, died of head injuries received during a fight in the prison recreation building.
In text messages and in phone calls, Knighten and the co-conspirators avoided using words that anyone overhearing them might too easily recognize. They used a variety of slang terms instead. For instance, they might call methamphetamine “ice hockey.” Heroin could be called “Jordan.” Cocaine could be “soda.” Sometimes crack cocaine was “hard” and “gorilla” could be the word for marijuana.
During the conspiracy, many of the co-defendants were known to one another by their street names instead of their given names. Examples include Bizz, P-Boy, E, Booty, YT, Troub, Diablo, Wack, Shot, Leggs, Gray, Bink, Funk, Godfather and Punch.
The conspirators are alleged to have maintained five properties in Wichita as stash houses for processing and storing drugs, including 930 N. Yale, 2548 Somerset, 245 N. Chautauqua, 1411 N. Holyoke and 429 N. Green.
CHARGES AND PENALTIES
Charges and potential penalties include:
- Operating a continuing criminal enterprise (count 1): Not less than 20 years and a fine up to $2 million.
- Conspiracy to distribute methamphetamine (count 2): Not less than 10 years and a fine up to $10 million.
- Conspiracy to distribute marijuana (count 3): Up to five years and a fine up to $250,000.
- Conspiracy to distribute heroin (count 4): Not less than 15 years and a fine up to $20 million.
- Conspiracy to distribute cocaine powder (count 5): Not less than 10 years and a fine up to $8 million.
- Conspiracy to distribute crack cocaine (count 6): Not less than 10 years and a fine up to $8 million.
- Maintaining drug involved premises (counts 7, 8, 9 and 10, 54, ):
- Unlawful use of a telephone in furtherance of drug trafficking (counts 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 38, 40, 41, 42, 43, 44, 45, 46 and 47): Up to four years and a fine up to $250,000.
- Possession with intent to distribute powder cocaine (count 23): Up to 20 years and a fine up to $1 million)
- Possession with intent to distribute methamphetamine (count 36, 39, 49): Not less than 10 years and a fine up to $10 million.
- Possession with intent to distribute heroin (count 37): Not less than five years, not more than 40 years, and a fine up to $5 million.
- Possession of firearms in furtherance of drug trafficking (count 50, 51, 52, 53, 55): Not less than five years and a fine up to $250,000.
DEFENDANTS
Here is a list of the defendants:
Richard Adams, 27, Wichita, Kan., counts 2, 3, 9, 48, 49 and 52.
David Bell, 46, Wichita, Kan., counts 5, 6, 40 and 50)
Frederick Collins, 47, Wichita, Kan.,counts 2, 5, 6 and 33.
Byron Fitchpatrick, 45, Wichita, Kan., counts 5 and 42.
Eric Goodwin, 53, Wichita, Kan., counts 4, 29 and 30.
Dorzee Hill, 40, Wichita, Kan., counts 3, 4, 5, 24, 25, 26, 28, 31, 32, 35, and 45.
Satoria Hill, 33, Wichita, Kan., counts 5 and 45.
Orlando Hogan, 44, Wichita, Kan., counts 2, 4, 9 and 27.
Derek Hubbard, 44, Wichita, Kan., counts 3 and 24.
Travis Knighten, 47, Oklahoma State Penitentiary, counts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 21, 22, 24, 25, 38, 40, 44, 47 and 54.
Kevin Lewis, 56, Wichita, Kan., counts 2, 4, 5, 6, 8, 12, 16 and 17.
Armando Luna, 39, Oklahoma State Penitentiary, counts 2, 9, 18, 19, 20 and 54.
Trey Martin, 27, Wichita, Kan., counts 3 and 26.
Mario Ponds, 39, Wichita, Kan., counts 5 and 42.
Otis Ponds, 41, Wichita, Kan., counts 2, 8 and 41.
Robert Richmond, 48, Wichita, Kan., counts 5, 6 and 46.
Kimberly Schmidtberger, 38, Wichita, Kan., counts 2, 4, 6 and 47.
Shantus Smallwood, 46, Wichita, Kan., counts 2, 43 and 44.
Travis Vontress, 43, Wichita, Kan., counts 2, 4, 5, 10, 21, 22, 23 and 51.
Kevin Walker, 54, Wichita, Kan., counts 4 and 28.
Tia Ward, 40, Wichita, Kan., counts 2, 3, 8, 38, 39 and 53.
Eddie Washington, 60, Wichita, Kan., counts 5, 31, and 32.
Trevor Wells, 39, Wichita, Kan., counts 2, 3, 4, 7, 35, 36 and 37 and 55.
Dallas Williams, 38, Wichita, Kan., counts 2 and 34.
The FBI and the Wichita Police Department investigated. Special Assistant U.S. Attorney Katherine Andrusak and Assistant U.S. Attorney Matt Treaster are prosecuting. The following agencies assisted with taking defendants into custody: the FBI, the Wichita Police Department, the Drug Enforcement Administration, the Sedgwick County Sheriff’s Office, Homeland Security Investigations and the U.S. Marshals Service.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct,
Illegal alien sentenced for possessing with intent to distribute heroin, fentanyl, carfentanil, and methamphetamineRead the Press Release
ATLANTA - Nicholas Hernandez-Gonzalez has been sentenced for possessing with intent to distribute multiple kilograms of fentanyl and other opioids on May 16, 2019 when agents with Homeland Security Investigations (“HSI”) and Georgia State Patrol (“GSP”) seized one kilogram of fentanyl during a traffic stop and more than ten kilograms of heroin, fentanyl, and carfentanil from his apartment in Duluth, Georgia.
“Hernandez-Gonzalez endangered countless people with the quantity of extremely dangerous drugs he was mixing and storing in his apartment,” said U.S. Attorney Byung J. “BJay” Pak. “This case highlights the risks for drug users and their families – you do not know what is in the drugs sold on the street. Fortunately, our law enforcement partners work tirelessly to remove these dangerous products from our streets.”
“The reckless manner in which Hernandez-Gonzalez mixed and sold his illegal drugs placed the entire community at risk. Powerful opioids like fentanyl have the potential to kill just by contact. I’m relieved that this defendant’s days of poisoning our community are over,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “Combatting the importation of fentanyl into the country and its distribution remains a top priority for HSI and its partners across Georgia.”
According to U.S. Attorney Pak, the charges and other information presented in court: In April 2019, HSI agents identified Hernandez-Gonzalez as a drug dealer selling what he claimed was simply heroin, but which actually contained a mixture of significantly more potent synthetic opioids - fentanyl and carfentanil. Fentanyl is 50 times more potent than heroin, and carfentanil is 100 times more potent than fentanyl.
On May 16, 2019, a GSP trooper stopped Hernandez-Gonzalez shortly after he left his apartment, and seized a cellophane-wrapped bundle that contained one kilogram of fentanyl from the backseat of his car. Hernandez-Gonzalez claimed the bundle contained heroin that he was delivering to a customer. Later that day, HSI agents searched Hernandez-Gonzalez's apartment and found nearly 10.5 kilograms of heroin, fentanyl, and carfentanil, a gun, and evidence that Hernandez-Gonzalez had been mixing various substances in the sparsely-furnished apartment. Specifically, one large plastic box in the master bedroom contained three kilograms of heroin and another box contained nearly four kilograms of a mixture of fentanyl and carfentanil. Agents also found ten bundles of powder containing methamphetamine and another kilogram of mixtures of fentanyl and carfentanil hidden inside a hole that had been cut into the master bedroom closet.
According to immigration records, Hernandez-Gonzalez had previously been deported to Mexico on two occasions in 2013.
Nicholas Hernandez-Gonzalez, 36, of Duluth, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 17 years, six months in prison to be followed by five years of supervised release. Hernandez-Gonzalez was convicted on these charges on August 29, 2019, after he pleaded guilty. Hernandez-Gonzalez will be deported to Mexico following his sentence of imprisonment.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case.
Assistant U.S. Attorney Nicholas Hartigan prosecuted the case.
This case is presented as a part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hospice to pay $1.75 million to resolve false claims act allegationsRead the Press Release
ATLANTA - STG Healthcare of Atlanta, Inc. (“STG Healthcare”) and two of its senior executives, Paschal “Pat” Gilley and Mathew Gilley, have agreed to pay $1.75 million to resolve allegations that STG Healthcare, operating as Interim Healthcare of Atlanta, submitted or caused the submission of false claims to Medicare and Medicaid for patients who were not eligible for the hospice benefit and that resulted from STG Healthcare’s provision of unlawful payments to a referring physician in violation of the Anti-Kickback Statutes.
“Hospice is not a blank check for unscrupulous medical providers willing to admit patients who are not terminally ill,” said U.S. Attorney Byung J. “BJay” Pak. “It is reserved for those who truly need it. We will also continue to prioritize cases where it appears that a medical decision, especially the decision to forego curative treatment, has been influenced by a kickback.”
“When healthcare providers put their financial interests above the needs of patients the federal funds are diverted from where they are truly needed, putting our most vulnerable citizens at risk,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The message is clear; the FBI will not tolerate companies who file false claims to generate more corporate revenue and take advantage of programs like Medicare & Medicaid.”
“As more Americans choose hospice care, more government funding is being provided to this critical service. Unfortunately, scammers are seizing an opportunity to steal precious funding by enrolling ineligible patients in hospice care,” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we will continue to protect patients and the programs on which they depend.”
“The hospice benefit provided by Medicaid is especially reserved for terminally ill Georgians at a critical time of transition in their care,” said Attorney General Chris Carr. “Our office is proud to have worked alongside the U.S. Attorney’s Office for the Northern District of Georgia in this effort, and we will continue to ensure the hospice benefit is not exploited and abused by health care providers to the detriment of Georgia taxpayers.”The Medicare and Medicaid hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms, or stress) for terminal illness and who have a life expectancy of six months or less if their illness runs its normal course. Before billing government healthcare programs, a hospice provider must comply with Medicare and Medicaid’s requirements and ensure that patients who are foregoing curative care are in need of end-of-life care.
The government alleges that, between 2013 and 2017, STG Healthcare submitted claims for patients who were not terminally ill. Specifically, the government contends that STG Healthcare’s business practices—setting aggressive goals for enrolling patients and failing to supervise properly the admission practices of its staff and medical directors—resulted in the submission of claims for ineligible patients. The government also alleges that STG Healthcare submitted or caused the submission of claims to Medicare and Medicaid for services provided to individuals referred by a physician who STG Healthcare paid to be a “back up” medical director, but who did not serve as a legitimate hospice physician.
The settlement resolves allegations filed by Serita Samuel and Miranda Eskridge, former STG Healthcare employees, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Eskridge v. STG Healthcare of Atlanta, Inc. et al., No. 1:16-cv-0688-LMM (N.D. Ga.). Ms. Samuel and Ms. Eskridge will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorneys General Sara Vann and Rick Tangum.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Hiawatha Cocaine User Pleads Guilty to Illegally Possessing a GunRead the Press Release
A man who unlawfully possessed a handgun pled guilty today in federal court in Cedar Rapids.
Guillermo Legarrea, age 50, from Hiawatha, Iowa, was convicted of one count of being an unlawful user of cocaine in possession of a firearm.
At the plea hearing, Legarrea admitted that he illegally possessed the firearm in December 2018. Evidence at a prior hearing showed that Legarrea was stopped by a Hiawatha Police Officer on suspicion of driving with a suspended license. During the encounter, the officer noticed the odor of alcohol coming from Legarrea’s breath and could tell that he was intoxicated. Another officer observed beer bottles inside Legarrea’s van. After placing Legarrea under arrest for suspicion of drunk driving, the officers located a baggie containing cocaine in Legarrea’s sock. During a search of Legarrea’s van, officers located a black backpack that contained a loaded handgun and over $9,000 in cash.
This 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Legarrea remains free on bond previously set pending sentencing. Legarrea faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the Hiawatha Police Department and Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19‑CR‑00100‑CJW‑MAR.
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Hazleton Man Indicted for Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ricardo Jimenez-Rodriguez, age 34, of Hazelton, Pennsylvania, was indicted on March 3, 2020, by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that Rodriguez possessed with the intent to distribute over five kilograms of cocaine on February 23, 2020, in Conyngham, Pennsylvania.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant's educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hartford Gang Member Pleads Guilty to Drug and Firearm ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICARDO REYES, also known as “Rick the Ruler,” 40, of Hartford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to offenses related to the possession and trafficking of narcotics and firearms.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Violent Crimes Gang Task Force began investigating Reyes, a member of the Los Solidos street gang, who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. On September 9, 2018, Reyes was arrested by Hartford Police on state charges after they found him in possession of a firearm and approximately 250 bags of heroin/fentanyl. Between January and June 2019, while Reyes was released on bond in his state case, investigators conducted multiple controlled purchases of narcotics from Reyes. Court authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf.
Intercepted communications also revealed that Norman Klosek of Enfield was acting as a “straw purchaser” of firearms for Reyes. On April 22, 2019, Reyes picked up Klosek in Enfield and drove to a licensed gun dealer in Newington, where Klosek, who had a valid state firearm permit, purchased two handguns. Klosek then provided the guns to Reyes after the purchase. Later that day, investigators conducted a traffic stop of Reyes’ vehicle in New Britain and seized the two firearms. A search of the vehicle also revealed approximately 450 bags of suspected heroin/fentanyl, more than one pound of marijuana, and $1,160 in cash. Reyes was charged with state offenses, released on bond, and resumed his drug trafficking activity.
Reyes and several co-defendants were arrested on a federal criminal complaints on June 17, 2019. On that date, investigators seized two additional guns that had been purchased by Klosek, one that was in Reyes’ car and one that was in a Rowe Avenue residence that Reyes’ used as a stash location. Investigators also seized approximately 3,500 bags of fentanyl from the stash house, and approximately $6,000 from Reyes’ residence.
Reyes has been detained since his federal arrest. On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes and 14 associates with various narcotics trafficking and firearm possession offenses.
Reyes pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 40 grams or more of fentanyl and 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Shea scheduled sentencing for June 5, 2020, at which time Reyes faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Reyes’ criminal history includes state drug convictions, and a federal conviction for dealing firearms without a license. The previous federal case involved Reyes and an associate, who had a valid state firearm permit, purchasing at least 13 firearms and selling them to drug dealers. Reyes was sentenced to 60 months in federal prison for that offense.
On March 2, 2020, Klosek pleaded guilty to one count of dealing firearms without a license, and one count of making a false statement during the acquisition of a firearm. Klosek, who was addicted to heroin/fentanyl, admitted that he had purchased a total of 47 handguns, and that he had sold or “loaned” the guns he had purchased to support his drug addiction. To date, approximately 10 of the 47 guns purchased by Klosek have been recovered by law enforcement. One gun was recovered after it was used in a shooting in Hartford on August 22, 2019.
The FBI’s Northern Connecticut Violent Crimes Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the New Britain Police Department have provided valuable assistance to the investigation. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hannibal Man Sentenced to 84 Months in Prison for Possessing over 50 Grams of MethamphetamineRead the Press Release
St. Louis, MO –Cody Wayne Seabaugh, 31, of Hannibal, MO, was sentenced to 84 months in prison for possession with the intent to distribute over 50 grams of methamphetamine. Seabaugh appeared in federal court today before United States District Judge Audrey G. Fleissig.
According to court documents, in July 2017, the Hannibal Missouri Police Department initiated an investigation into Seabaugh’s methamphetamine possession and distribution activities. As part of that active and on-going investigation, Hannibal police officers received information on October 4, 2017, that, among other things, Seabaugh had been involved in a vehicle accident, ran from the scene holding a bag, and was beating on residential doors in the area. When police eventually located Seabaugh, he was lying in the street. Officers observed plastic bags strewn about around Seabaugh in the roadway. Officers also saw a black and pink zip up bag lying in the street.
Inside the black and pink zip up bag, officers found and seized several bags containing approximately 126 grams of methamphetamine, a scale, more baggies, and U.S. currency. Seabaugh was arrested and a subsequent search of Seabaugh’s mobile phone discovered additional information confirming Seabaugh’s drug trafficking activities.
The Hannibal Police Department investigated this case, assisted by the Illinois State Police and the Drug Enforcement Administration. Assistant U.S. Attorney Lisa Yemm is handling the case.
Hammond Man Sentenced for Theft of More Than $240,000.00 in Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that DANNY L. LETARD (“LETARD”), age 57, of Hammond, Louisiana, was sentenced today for Theft of Government Funds, announced United States Attorney Peter G. Strasser.
According to documents filed in federal court, beginning in 1989, LETARD filed for and later became eligible for Social Security Administration (“SSA”) disability benefits of approximately $2,177.30 per month. During this period, LETARD formed a number of businesses including, but not limited to, Excavation/Dozer Company, Virginia Shop Site Cleaning Services, Virginia’s Job Site Cleaning, Virginia Cleaning Services, and R & D Dozer Excavation & Pipe Fabr. LETARD’s businesses were registered in the names of LETARD’s family members rather than in his name to conceal his employment. LETARD’s businesses performed demolition work and the cleaning of job sites according to occupational license applications filed with Tangipahoa Parish. LETARD also operated heavy construction equipment as part of his businesses. On October 24, 2017, LETARD was interviewed by agents with the SSA Office of Inspector General and the Louisiana State Police. In his post-Miranda interview, LETARD told the agents he concealed his SSA benefits through third party companies “so y’all wouldn’t find out about it.” Accordingly, LETARD fraudulently received approximately $242,000.00 in Social Security Administration disability benefits he was not entitled to due to his employment.
U.S. District Judge Lance M. Africk sentenced LETARD to 5 years of probation and restitution to the Social Security Administration in the amount of $242,308.20.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Grandview Man Sentenced to 15 Years for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Grandview, Missouri, man was sentenced in federal court today for distributing methamphetamine and illegally possessing a firearm.
Jorge Omar Hernandez, also known as “Little Mexico,” 21, was sentenced by U.S. District Judge Greg Kays to 15 years and one month in federal prison without parole.
On April 11, 2019, Hernandez pleaded guilty to one count of distributing methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime. Hernandez admitted that he sold methamphetamine to an undercover federal agent on several occasions. Law enforcement apprehended a total of 833.9 grams of pure methamphetamine from Hernandez.
According to court documents, Hernandez concealed 108.9 grams of pure methamphetamine in a folded child’s diaper, which he sold to the undercover agent for $1,500, on Sept. 21, 2017. Hernandez met the undercover agent again on Sept. 28, 2017, and sold 201.5 grams of pure methamphetamine for $2,800. On Feb. 14, 2018, Hernandez sold the undercover agent 90.8 grams of pure methamphetamine for $1,200.
Hernandez agreed to meet again on Feb. 27, 2018, to sell a pound of methamphetamine. When Hernandez arrived at the meeting location, he was arrested. Agents searched his vehicle and found a plastic baggie that contained 432.7 grams of pure methamphetamine, a loaded Glock .40-caliber pistol, a loaded extended Glock magazine, a loaded shotgun magazine, and two cell phones.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Drug Enforcement Administration, the Johnson County, Kan., Sheriff’s Department, the Kansas City, Kan., Police Department, and the Overland Park, Kan., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Marathon County Teacher Charged with Attempting to Produce Child Pornography
Travis. C. Greil, 38, Wausau, Wisconsin, is charged with six counts of attempting to use a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The indictment alleges that between August 2015 and February 2020, he attempted to use six minors to produce child pornography using an iPad. During this time, Greil was employed as a teacher at D.C. Everest High School.
Greil is in custody in Marathon County following the filing of a complaint charging him with related state offenses. The date for his initial appearance in U.S. District Court in Madison, Wisconsin has not been set.
If convicted, Greil faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation – Internet Crimes Against Children Task Force, the Everest Metro and Wausau Police Departments, the Marathon County Sheriff’s Office, and the Marathon County District Attorney’s Office, with the cooperation of the D.C. Everest Area School District. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
This indictment has been brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wisconsin Rapids Woman Charged with Stealing Mail, Wire Fraud & Identity Theft
Shelby Bottensek, 42, Wisconsin Rapids, Wisconsin, is charged with conspiring to steal mail, stealing mail, wire fraud, identity theft, and possessing a forged check. The indictment alleges that Bottensek conspired with others known and unknown to the grand jury to steal mail from mailboxes, use credit cards found in the stolen mail, and use the identity of another person in the commission of a felony.
The indictment alleges that Bottensek and others conspired to steal over 350 pieces of mail addressed to over 170 individuals and entities from mailboxes in Amherst, Wisconsin Rapids, Waupaca, Port Edwards, Nekoosa, Necedah, Plover, Portage, Wausau, Friendship, Janesville, Westfield, and Town of Saratoga, Wisconsin from August through October 2019. The indictment alleges that Bottensek and others would transport the stolen mail to Bottensek’s residence in Wisconsin Rapids, open the mail, and remove anything of value, including cash, uncashed checks, and credit cards.
The indictment also charges Bottensek with stealing and attempting to steal mail from two authorized depositories for mail in Wisconsin Rapids on January 19, 2020.
The indictment further charges Bottensek with four counts of wire fraud for allegedly using credit cards found in the stolen mail to put money in jail commissary accounts of an inmate in the Walworth County jail and an inmate in the Wood County jail, and to make online purchases and purchases at businesses in Portage and Wood Counties. The indictment also charges her with four counts of using the identification of another person during the alleged wire fraud violations.
The eleventh count of the indictment charges Bottensek with possessing and uttering a forged security by using two corporate checks that had been stolen from the mail and contained forged signatures on the payor signature line to pay for items purchased at a business in Beloit, Wisconsin.
If convicted, Bottensek faces a maximum penalty of five years in federal prison on the conspiracy charge, five years on the stealing mail charge, 20 years on each of the wire fraud charges, and 10 years in prison on the possession of a forged security charge. Each of the identity theft charges carries a mandatory minimum penalty of two years, which would be served consecutive to any sentence imposed on the wire fraud charges.
The charges against Bottensek are the result of an investigation by the U.S. Postal Inspection Service, Wood County Sheriff’s Department, and Plover and Grand Rapids Police Departments. Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.
Sun Prairie Man Charged with Armed Robbery
Mekhi Moss, 19, Sun Prairie, Wisconsin, is charged with the robbery of a business in Sun Prairie and with brandishing a firearm during the robbery. The indictment alleges that on January 21, 2020, Moss robbed the Stop-N-Go on Tower Drive in Sun Prairie, and that he brandished a firearm during this crime of violence.
If convicted, Moss faces a maximum penalty of 20 years in federal prison on the robbery charge, and a mandatory minimum penalty of seven years on the brandishing a firearm charge. Federal law requires that any penalty imposed on the brandishing a firearm charge be served consecutive to any sentence imposed on the robbery charge. The charges against him are the result of an investigation by the Sun Prairie Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
Chicago Man Charged with Robbery of Madison Business
Bernard Thomas, 28, Chicago, Illinois, is charged with robbing a Madison, Wisconsin business. The indictment alleges that on December 28, 2019, Thomas and five accomplices robbed Rocky’s Liquor on the West Beltline Highway in Madison.
The indictment alleges that one of Thomas’s accomplices brandished a weapon at an employee and demanded money while Thomas and the four other accomplices stole cases of liquor.
If convicted, Thomas faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Madison, Town of Madison, and Fitchburg Police Departments. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Monticello Man Charged with Illegally Possessing Ammunition
Justin Wenger, 37, Monticello, Wisconsin, is charged with being a felon in possession of ammunition. The indictment alleges that he possessed .223 caliber ammunition on January 16, 2020.
If convicted, Wenger faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Monroe and Monticello Police Departments, Green County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
The indictments charging Moss, Thomas, and Wenger have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Crawford County Man Charged with Methamphetamine Crime
Travis Johnson, 31, Gays Mills, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on November 10, 2019.
If convicted, Johnson faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Crawford County Sheriff’s Office. Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.
Grand Island Woman Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
United States Attorney Joe Kelly announced that Racquel Hamilton, 31, of Grand Island, was sentenced today in federal court in Lincoln, Nebraska for Possession with Intent to Distribute Methamphetamine. Senior United States District Judge Richard G. Kopf sentenced Hamilton to 9 years, 2 months’ imprisonment. There is no parole in the federal system. Hamilton will serve a four-year term of supervised release after completing her prison term.
In March, 2019, the Grand Island Police Department received a tip of Hamilton’s whereabouts. Hamilton had an active warrant for her arrest. The police located Hamilton and found her to have methamphetamine in her coat pocket and a large amount of U.S. currency. The methamphetamine was sent to the Nebraska State Crime Lab for testing. Results confirmed that the methamphetamine found on Hamilton was 11 grams of pure methamphetamine.
This case was investigated by the Grand Island Police Department and the Central Nebraska Drug and Safe Streets Task Force.
Fort Wayne Man Sentenced to 10 Years in PrisonRead the Press Release
FORT WAYNE – Demonta Huddleston, age 28, formerly of St. Joseph, Michigan was sentenced before U.S. District Court Judge Holly A. Brady to 120 months in prison upon his guilty plea to two distribution of a controlled substance charges, announced U.S. Attorney Kirsch.
According to documents in this case, in November 2017, the Fort Wayne Police Department began receiving anonymous tips regarding drug trafficking activity happening at a particular residence in Fort Wayne, Indiana. Demonta Huddleston as well as those specifically named in those anonymous tips were observed at that residence in January 2018.
Thereafter, on May 3, 2018, a confidential informant working with the Fort Wayne Police Department made a telephone call to Demonta Huddleston to arrange for the purchase of $600 of methamphetamine. Huddleston directed the confidential informant to nearby car wash in Fort Wayne, Indiana. Law enforcement followed the confidential informant to this location and thereafter observed a white vehicle with a Michigan license plate arrive at the car wash and park next to the confidential informant’s vehicle. Huddleston was the driver of the white SUV. The confidential informant met with Huddleston in the white SUV for approximately one minute. After meeting with Huddleston, the confidential informant turned over to law enforcement 26.9 grams of methamphetamine that he had received from Huddleston.
On July 11, 2018, the same confidential informant made a recorded telephone call to a known associate of Huddleston to arrange for the purchase of one ounce of methamphetamine and a quantity of heroin. During this recorded call, the associate instructed the confidential informant to go to a nearby store and wait and someone would be there soon with the drugs. A short time later, surveillance officers in the area of that store saw Huddleston arrive at the store and meet with the confidential informant. Huddleston gave the confidential informant one ounce of methamphetamine and a small amount of heroin. These were the same drugs and amounts negotiated earlier by the confidential informant and Huddleston’s associate.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department Vice & Narcotics Unit. Assistant United States Attorney Lesley J. Miller Lowery handled this prosecution.
Former U.S. Marine and Registered Sex Offender Pleads Guilty to Coercing Minors to Produce Sex Abuse MaterialRead the Press Release
Tampa, Florida – Joshua Eugene Burton (34, Missouri) has pleaded guilty to coercing a minor to engage in sexually explicit activity and committing a child sex offense while registered as a sex offender. Burton faces a maximum penalty of life in federal prison.
According to the plea agreement, Burton engaged in sexually explicit online conversations with a 14-year-old individual ("Victim 1") while portraying himself as a teenage girl from California named “Becky Smith.” In his conversations, Burton persuaded, induced, enticed, and coerced Victim 1 to create and send him sexually explicit images and videos of himself/herself. Burton also coerced Victim 1 into creating a video of Victim 1 performing oral sex on a 16-year-old individual ("Victim 2") by threatening to publicly post the photos and videos that he had previously received. In order to add more credibility to his threat, Burton specifically referenced the schools that both victims attended. As a result of his threats, Victim 1 sent Burton multiple sexually explicit images and videos.
Burton is a former U.S. Marine who was convicted of possession of child pornography in 2008 during the time he served in the United States Marine Corps. As part of his conviction, Burton was required to register as a sex offender and was dishonorably discharged from the Marine Corps.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Candace Garcia Rich.
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.
Former Roanoke Tax Preparer Sentenced to Prison for Filing False ReturnsRead the Press Release
ROANOKE – A former tax return preparer in Roanoke, Virginia, was sentenced to 12 months and one day in prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to documents and information provided to the court, Pierre owned and operated JP Tax Services LLC, a tax return preparation business in Roanoke, Virginia. From 2013 through 2014, Pierre falsified clients' tax returns by fraudulently claiming residential energy credits, fuel tax credits, and itemized deductions, in order to inflate his clients’ refunds. Pierre also fraudulently claimed the fuel tax credit on his own 2013 tax return.
In addition to the term of prison imposed, U.S. District Judge Urbanski ordered Pierre to serve one year of supervised release and pay $25,495 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Lauren Archer and Kevin Schneider, and Assistant U.S. Attorney Charlene R. Day, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Knox County Magistrate Sentenced to 18 Months for Selling Controlled SubstancesRead the Press Release
LONDON, Ky. - A Flat Lick, Kentucky man, Jerry Cox, 70, was sentenced in federal court on Tuesday, to 18 months in prison, by U.S. District Judge Claria Horn Boom, for distributing hydrocodone and oxycodone pills.
Cox previously admitted that, on two separate occasions in April 2018, he sold oxycodone and hydrocodone pills, from both his residence and business in Knox County. Cox pleaded guilty in September 2019. In addition to his prison sentence, Cox will serve six months of home detention.
Under federal law, Cox must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for two years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was directed by the DEA. The United States was represented by Assistant U.S. Attorney Jason Parman.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Forsyth County Commissioner Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON – A former Forsyth County Commissioner pleaded guilty today to filing false tax returns and failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Everette Witherspoon Jr., was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also co-owned and operated Quick Taxes LLC, and Fast Tax Inc., tax return preparation businesses in Greensboro and Winston-Salem, respectively. For 2013 through 2015, Witherspoon filed false tax returns with the Internal Revenue Service (IRS) that failed to report his county commissioner wages and underreported income he received from CRS. Witherspoon also failed to file a tax return for 2012.
U.S. District Judge Thomas D. Schroeder scheduled sentencing for May 26, 2020. At sentencing, Witherspoon faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Witherspoon’s partner at CRS and Quick Taxes, Willie Lee Cole Jr., was sentenced in January 2020 to six months’ imprisonment for failing to file his tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Forsyth County Commissioner Pleads Guilty to Tax FraudRead the Press Release
A former Forsyth County Commissioner pleaded guilty today to filing false tax returns and failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Everette Witherspoon Jr., was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also co-owned and operated Quick Taxes LLC, and Fast Tax Inc., tax return preparation businesses in Greensboro and Winston-Salem, respectively. For 2013 through 2015, Witherspoon filed false tax returns with the Internal Revenue Service (IRS) that failed to report his county commissioner wages and underreported income he received from CRS. Witherspoon also failed to file a tax return for 2012.
U.S. District Judge Thomas D. Schroeder scheduled sentencing for May 26, 2020. At sentencing, Witherspoon faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Witherspoon’s partner at CRS and Quick Taxes, Willie Lee Cole Jr., was sentenced in January 2020 to six months’ imprisonment for failing to file his tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.