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28 February 2020
Three Maryland Men Sentenced to at Least 10 Years in Federal Prison for Conspiracy to Distribute Fentanyl in Baltimore Trafficked from Sinaloa and Tijuana Drug CartelsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow has sentenced Nevone McCrimmon, age 48, of Edgewood, Maryland to 14 years in federal prison; and sentenced co-defendants William Elijah, age 52; and Terrance Mobley, age 51, both of Baltimore, Maryland, each to 10 years in federal prison, all followed by five years of supervised release, for the federal charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; Baltimore City Sheriff John Anderson; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore.
“Fentanyl is one of the most lethal threats facing Maryland right now. As little as two milligrams of fentanyl can be a lethal dose, and the 20 kilograms of fentanyl seized in this case to date is enough to kill 10 million people—more than one and a half times the population of Maryland,” said Maryland U.S. Attorney Robert K. Hur. “We are working with our partners to attack the sources of supply, as well as the street dealers who are committing the most violence in our neighborhoods.”
“Fentanyl exacts a deadly toll in our community and in communities across the country,” said HSI Baltimore Special Agent in Charge John Eisert. “This problem crosses state and international borders and requires partnership between law enforcement agencies. We’re grateful for our allies in this battle against the opioid scourge.”
According to their plea agreements and other court documents, beginning in about May 2017 through October 2018, Nevone McCrimmon was the leader of the McCrimmon drug-trafficking organization (DTO), and William Elijah and Terrance Mobley were associates of McCrimmon, assisting with the day-to-day operations of the McCrimmon DTO, including the collection of money for and the distribution heroin and fentanyl to the DTO’s customers. The McCrimmon DTO obtained its heroin and fentanyl from Mexican drug cartels. The DTO would order kilograms of heroin and fentanyl from members and associates of the Jesus Prieto DTO, located in Miami. Florida.
As detailed in their plea agreements, members of the Prieto DTO would travel to the mid-Atlantic area to collect large sums of cash from the McCrimmon DTO, which would then be conveyed directly to members of various Mexican drug-trafficking cartels. The cartels would then facilitate the transportation of heroin and fentanyl to co-conspirators in California. The narcotics would then be transported from California to Baltimore for delivery to the McCrimmon DTO.
In August 2018, federal law enforcement agents intercepted a shipment of 20 kilograms of fentanyl in Ventura, California, that was intended for delivery to the McCrimmon DTO in Maryland. Law enforcement transported the fentanyl to Maryland and conducted a “controlled delivery” to a member of the McCrimmon DTO.
During the investigation, law enforcement seized more than 20 kilograms of fentanyl and over $500,000 in cash.
According to the U.S. Drug Enforcement Administration’s National Drug Threat Assessment, Mexican DTOs pose the greatest crime threat to the United States. The cartels use drug trafficking and other criminal activities, such a money laundering, bribery, and gun trafficking, to obtain power, influence, and money, while protecting its activities through a pattern of violence and corruption. To combat this threat, the Department of Justice has formed a Transnational Organized Crime Task Force to coordinate and optimize the Department’s efforts to dismantle the cartels and other priority targets.
United States Attorney Robert K. Hur commended the DEA, the Baltimore Police Department, the Baltimore City Sheriff’s Office, the Baltimore County Police Department; and HSI-Baltimore for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys John W. Sippel, Jr., LaRai Everett, and Lauren Perry, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Springfield Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to sex trafficking.
William Coleman, 48, pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2020. Coleman has been in custody since his arrest on Dec. 23, 2018.
Coleman ran a prostitution business in the Springfield area, the greater Hartford, Conn., area, and other parts of Connecticut, from 2016 to 2018. Coleman used violence and the drug addictions of eight female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman, and their daily lives were tightly controlled by him. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain their drugs – in most cases, heroin – from Coleman. Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman used websites to post prostitution advertisements for the victims working for him.
The maximum sentence for sex trafficking and conspiracy to commit sex trafficking is life in prison, up to life of supervised release and a $250,000 fine. The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and up to life in prison, up to life of supervised release and a $250,000 fine. According to the terms of the plea agreement, Coleman will be sentenced to 186 months in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
Southern Maryland Man Convicted After One-Week Trial on Federal Fentanyl Distribution Conspiracy Charges, Including Distribution of Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Rodney Mondell Coby, a/k/a “Cuz,” age 31, of Waldorf, Maryland, on the federal charges of distribution of fentanyl resulting in death, conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of firearms and ammunition.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Charles County Sheriff Troy D. Berry.
U.S. Attorney Robert K. Hur stated, “Rodney Coby knew that the fentanyl he was distributing was killing people, but he continued anyway. Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution—especially when they use guns to ply their trade. We will continue to work with our law enforcement partners to stop the tragic deaths resulting from opioid overdoses.”
“Coby was dealing fentanyl, a dangerous drug that is killing far too many people in the DMV,” said DEA Special Agent in Charge Jesse Fong. “Cases like this are a great example of the work we are doing, side-by-side with our local law enforcement partners and federal prosecutors, to send a resounding message that drug dealers who callously profit by distributing deadly drugs in our neighborhoods will be held accountable.”
According to the evidence presented at his seven-day trial, Coby and his co-defendant, Steven Jerome, distributed fentanyl to an individual on September 6, 2017, resulting in the death of the victim. According to Steven Jerome’s plea agreement, after meeting with Coby for the drug transaction, Jerome and the individual used the fentanyl that Coby distributed. The individual immediately showed signs of overdosing. Because there was an unrelated warrant for Jerome’s arrest, however, Jerome did not call first responders or otherwise seek help for the individual. Instead, Jerome drove the individual from Waldorf to the St. Clement Shores neighborhood of St. Mary’s County, and walked to his mother’s house. Jerome’s mother then called first responders, who were unable to resuscitate the individual.
Further, the evidence introduced at trial also proved that Coby distributed fentanyl on November 29, 2017, resulting in the death of a second victim.
On April 13, 2018, law enforcement recovered five firearms from Coby’s apartment, including a loaded .45-caliber semi-automatic pistol from Coby; a .357-caliber semi-automatic pistol; a 5.7x28mm semi-automatic pistol; a .300-caliber semi-automatic AR type pistol, a 7.62x39 caliber semi-automatic AK type pistol, as well as 159 rounds of various types of ammunition. The .45-caliber semi-automatic pistol was found in a backpack next to 121 individual baggies of fentanyl and a bag of cocaine base. As such, the jury determined that Coby possessed the .45-caliber pistol in furtherance of his drug trafficking. During the execution of a search warrant at Coby’s apartment, law enforcement officers recovered a total of over 200 grams of a heroin/fentanyl mixture, over 40 grams of cocaine base, 12 cell phones, a money counter, four digital scales, over $22,000 in U.S. currency, and jewelry including a Rolex, gold chain, and gold and diamond grills. Moreover, Coby had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Coby faces a mandatory minimum of 20 years and up to life in prison for distribution of fentanyl resulting in death. Coby also faces a maximum sentence of 40 years in prison for the conspiracy and for possession with intent to distribute controlled substances; a maximum of life in prison for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in prison for being a felon in possession of firearms and ammunition. U.S. District Judge George J. Hazel has not yet scheduled sentencing for Coby. Coby has been in custody since his arrest on April 13, 2018.
Steven Jerome, age 33, of Leonardtown, Maryland, pleaded guilty before trial to distributing fentanyl. As detailed in his plea agreement, two individuals, including Jerome’s mother, died as a result of his distributing fentanyl to them. Jerome admitted to one of his associates that he worked with Coby to distribute narcotics. Jerome and the government have agreed that, if the Court accepts the plea agreement, Jerome will be sentenced to 150 months in federal prison. Judge Hazel has scheduled sentencing for Jerome on June 15, 2020 at 2:00 p.m.
United States Attorney Robert K. Hur commended the DEA, the St. Mary’s County Sheriff’s Office, and the Charles County Sheriff’s Office for their work in the investigation, and thanked the Prince George’s County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Erin Pulice, who are prosecuting the case.
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Six defendants charged in conspiracy to distribute crack cocaine in Northern New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Jose Mendoza, 32, and Natalie Mendoza, 35, of Medanales, New Mexico, Ryan Rodriguez, 27, of Chamita, New Mexico, Andrea Rodriguez, 28, and Edvardo Carlson, 39, of Espanola, New Mexico, and Bridget Archuleta, 31, of San Juan Pueblo, New Mexico appeared in federal court today for arraignment on an indictment charging them with various drug trafficking offenses involving crack cocaine (cocaine base) in Rio Arriba County, New Mexico from Oct. 2, 2019, to Feb. 25, 2020.
A grand jury returned an indictment against the defendants on Feb. 25. Federal agents arrested them on Feb. 27 with assistance from state and local law enforcement. According to public court records, Jose Mendoza, and his wife, Natalie Mendoza, allegedly were high-level suppliers of cocaine in the Espanola Valley of New Mexico. Natalie Mendoza allegedly kept records of drug sales and collected proceeds from drug transactions. Ryan Rodriguez allegedly acted as a mid-level cocaine distributor. He allegedly received supplies of cocaine from Jose and Natalie Mendoza, converted it to crack cocaine, and distributed it by the ounce to customers, including an undercover agent posing as a lower level drug trafficker.
Ryan Rodriguez’s girlfriend, Bridget Archuleta allegedly participated in drug sales with Rodriguez. Ryan Rodriguez’s sister, Andrea Rodriguez, allegedly delivered drugs to customers on Ryan Rodriguez’s behalf. Edvardo Carlson allegedly conducted drug transactions at Ryan Rodriguez’s direction. The defendants allegedly communicated extensively by telephone and text message about their drug trafficking business. According to court records, Jose Mendoza and Natalie Mendoza also laundered proceeds from their drug trafficking by making large cash payments on auto loans and large cash deposits into accounts at credit unions.
Summary of the Charges
Count 1 of the indictment charges all six defendants with conspiracy to distribute cocaine base. The maximum penalty on conviction varies for each defendant.
Counts 2, 5, 7, 9, and 11 charge certain defendants with use of a telephone to facilitate a drug trafficking offense. The maximum penalty on conviction is up to four years in prison.
Count 3 of the indictment charges certain defendants with distribution of cocaine base. The maximum penalty on conviction is up to 20 years in prison.
Counts 4, 6, 8, and 10 of the indictment charge certain defendants with distribution of 28 grams or more of cocaine base. The maximum penalty on conviction is from five to 40 years in prison.
Count 12 of the indictment charges certain defendants with possession with intent to distribute 280 grams or more of cocaine base. The maximum penalty on conviction is 10 years to life in prison.
Charges Against Defendants
Jose Mendoza is charged in Counts 1, 2, 9, 10, 11, and 12. He was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Natalie Mendoza is charged in Counts 1, 2, 5, 7, 9, 10, and 12. She was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Ryan Rodriguez is charged in all 12 counts of the indictment. He was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Andrea Rodriguez is charged in Counts 1 and 3. She was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Edvardo Carlson is charged in Counts 1, 6, 7, and 8. He was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Bridget Archuleta is charged in Counts 1, 4, 11, and 12. She was arrested on Feb. 27 and is in custody pending a detention hearing later today.
An indictment is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This indictment is the product of a joint federal investigation by Homeland Security Investigations and the Drug Enforcement Administration with assistance from the High Intensity Drug Trafficking Area (HIDTA) Region III Narcotics Task Force which includes members of the BIA, New Mexico State Police, the Santa Fe Police Department, the Santa Fe County Sheriff and the Taos Police Department. Assistant U.S. Attorneys Peter Eicker and Matthew Nelson are prosecuting the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sitting Kauai County Councilmember and Eleven Others Charged with Participation in a Drug Trafficking OrganizationRead the Press Release
KAUAI, Hawaii – Kenji M. Price, the United States Attorney for the District of Hawaii, Jonathan E. Blais, Special Agent in Charge of the Seattle Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Todd Raybuck, Chief of the Kauai Police Department (“KPD”), and Lucia Cabral-Dearmas, Department of Homeland Security, Homeland Security Investigations, Honolulu Office (“HSI”) announced the unsealing of an Indictment today charging ARTHUR BRUN, and 11 other defendants with conspiring to distribute methamphetamine. The Indictment also charges substantive drug trafficking offenses, an assault on a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses. As alleged in the Indictment, BRUN participated in these offenses while serving as an elected member of the Kauai County Council.
Eleven of the defendants were arrested yesterday and will be arraigned in federal court later today before the Honorable Rom Trader, United States Magistrate Judge. The twelfth defendant, ORLANDO MANGUCHEI, was already in federal custody serving a sentence for violating the terms of supervised release.
As alleged in the Indictment unsealed yesterday[1]:
From at least June 2019, and continuing to in or about January 2020, ARTHUR BRUN, aka “Ata,” MALUELUE UMU, aka “Malu,” KELVIN KAUWILA KAI, aka “Kauwila,” STEVEN KELIIKULI, KANIU HUIHUI, SHEENA MILLARE, EFREN YANOS, KIRSTEN MAKANOE AYAU, aka “Makanoe,” ORLANDO MANGUCHEI, aka “Ole,” ROBBY SILVA, HAIDEE SUEYASU, and PHRYSTAL BACIO, the defendants, and others known and unknown, conspired to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of methamphetamine.
BRUN ran this drug trafficking conspiracy while, at the same time, serving as an elected member of the Kauai County Council and the Vice Chair of its Public Safety & Human Services Committee. One of BRUN’s suppliers of methamphetamine was UMU, who was a “shot caller,” or leader, of the United Samoan Organization, a gang that operates both inside and outside of the prison system in the State of Hawaii.
On or about October 29, 2019, BRUN assaulted a state law enforcement officer who was acting in cooperation with and under the control of federal officers. BRUN committed this assault during a traffic stop in an effort to conceal methamphetamine that he had in his possession at the time. The officer asked BRUN to get out of his car and gave him other instructions. Instead of complying with the officer’s commands, BRUN placed the vehicle in drive and sped off, injuring the police officer, who had his hand and shoulder in the car as he tried to remove the keys from the ignition. BRUN then led the police on a high speed chase during which he threw a backpack containing approximately one pound of methamphetamine out of the car.
After the assault, BRUN made efforts to conceal the methamphetamine to avoid its use in any official proceeding by attempting to corruptly persuade another person to provide false information to the KPD about the ownership of the backpack.
Multiple defendants possessed or conspired to possess firearms or ammunition. In January 2020, KELIIKULI possessed a Smith and Wesson .38 Special, and six rounds of ammunition, after having been convicted of a felony. Also in January 2020, SILVA possessed various sizes, calibers, and types of ammunition after having been convicted of a felony. In about October 2019, BRUN conspired to supply a firearm and ammunition to MANGUCHEI, despite both men having previously been convicted of a felony.
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Charts containing the name, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
U.S. Attorney Price praised the outstanding investigative work of the ATF, KPD, and HSI. He also thanked the United States Marshals Service Fugitive Task Force, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Coast Guard Investigative Service for their assistance.
Assistant U.S. Attorneys Sean Van Demark and Micah Smith are handling the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT CHARGE DEFENDANT(S) MAX. PENALTIES 1 Drug trafficking conspiracy
21 U.S.C. § 846 ARTHUR BRUN (48)
MALUELUE UMU (50)
KELVIN KAUWILA KAI (38)
STEVEN KELIIKULI (50)
KANIU HUIHUI (39)
SHEENA MILLARE (37)
EFREN YANOS (57)
KIRSTEN MAKANOE AYAU (36)
ORLANDO MANGUCHEI (48)
ROBBY SILVA (57)
HAIDEE SUEYASU (43)
PHRYSTAL BACIO (37) Life in prison
Mandatory minimum of 10 years in prison 2 Distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) ARTHUR BRUN
SHEENA MILLARE 20 years in prison 3 Attempted possession of methamphetamine with intent to distribute
21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 846 ARTHUR BRUN
KANIU HUIHUI 40 years in prison
Mandatory minimum of five years in prison 4 Possession of methamphetamine with intent to distribute
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A) ARTHUR BRUN
MALUELUE UMU Mandatory minimum of 10 years in prison 5 Assault of a Federal Law Enforcement Officer
18 U.S.C. §§ 111(a)(1) and 111(b) ARTHUR BRUN 20 years in prison 6 Obstruction of Justice through Evidence Tampering
18 U.S.C. § 1512(c)(1) ARTHUR BRUN
KELVIN KAUWILA KAI 20 years in prison 7 Distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) ARTHUR BRUN 20 years in prison 8 Distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) ARTHUR BRUN 20 years in prison 9 Obstruction of Justice through Witness Tampering
18 U.S.C. § 1512(b)(3) ARTHUR BRUN 20 years in prison 10 Felon in Possession of a Firearm and Ammunition
18 U.S.C. § 922(g)(1) STEVEN KELIIKULI 10 years in prison 11 Possession of methamphetamine with intent to distribute
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B) ROBBY SILVA 40 years in prison
Mandatory minimum of five years in prison 12 Felon in Possession of Ammunition
18 U.S.C. § 922(g)(1) ROBBY SILVA 10 years in prison 13 Conspiracy to Possess Firearm and Ammunition as Felons
18 U.S.C. § 371 ARTHUR BRUN
ORLANDO MANGUCHEI 5 years in prison_________________
[1] As the introductory phrase signifies, the entirety of the text of the Indictment is merely an accusation and that the defendant(s) are presumed innocent until and unless proven guilty.
Santa Rosa Doctors Indicted for Tax FraudRead the Press Release
SAN FRANCISCO - A federal grand jury returned a superseding indictment against Robert Rowen and Teresa Su, charging them with conspiracy to defraud the United States, announced United States Attorney David L. Anderson and Internal Revenue Service (IRS) Special Agent in Charge Kareem Carter. In addition, each defendant also was charged with a separate count of tax evasion.
According to the indictment, Rowen and Su, ages 69 and 66, respectively, of Sebastopol, Calif., are a married couple who practiced medicine from their clinic in Santa Rosa. The medical doctors allegedly conspired to evade payment of Rowen’s federal income tax liabilities by concealing Rowen’s ability to pay his 1992 through 1997 and 2003 through 2008 federal income tax liabilities. Specifically, Rowen and Su allegedly placed his assets out of the reach of the United States Government, placed assets in the names of other persons or entities, deposited Rowen’s revenue into nominee bank accounts, used cash to conduct personal and professional business, converted his revenue into gold and silver coins, and provided false information to the IRS.
The indictment provides a description of various methods the couple allegedly used to conceal Rowen’s income. For example, the indictment describes how the couple instructed patients to make their checks for medical services payable to gold dealers who, in turn, purchased gold and silver coins. In addition, the indictment alleges Rowen formed a company named Lotus Management LLC to receive revenue from a different company. Rowen then deposited the funds into a bank account opened in the name of Lotus Management LLC, and used the proceeds to purchase gold and silver coins. Further, the couple allegedly used cash to pay the rent for the medical practice as well as to pay the balance on credit cards used to cover various business and personal expenses.
In sum, the indictment alleges that between January 3, 2007, and April 11, 2014, Rowen, both individually and through nominees, converted over $3,900,000 of his revenue to gold and silver coins. Count one of the superseding indictment charges Rowen and Su with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, and counts two and three of the superseding indictment charges the defendants each with one count of tax evasion, in violation of 26 U.S.C. § 7201.
A superseding indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy count, the defendants face a maximum sentence of five years imprisonment, and a fine of $250,000, plus restitution. If convicted of tax evasion, the defendant faces a maximum sentence of three years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rowen and Su made a federal court appearance on the superseding indictment on February 26, 2020. The defendants currently are released on a $200,000 bond. The matter was assigned to the Honorable Charles R. Breyer, U.S. District Judge who scheduled the trial in the case to begin on February 22, 2021.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS.
Sanofi Agrees to Pay $11.85 Million to Resolve Allegations That it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Sanofi-Aventis U.S., LLC (“Sanofi”), has agreed to pay $11.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation, The Assistance Fund (“TAF”).
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
Sanofi sells Lemtrada, a multiple sclerosis drug that costs nearly $100,000 per patient per year. Medicare co-pays for Lemtrada can be many thousands of dollars per year. The cost of the drug often presents significant barriers to access for Medicare patients.
The government alleged that TAF, an entity claiming 501(c)(3) status for tax purposes, operates funds, including a fund for MS patients, that pay the co-pays of certain patients, including Medicare patients, who were prescribed Lemtrada. TAF allegedly raised its maximum per-patient grant allocation to $20,000 specifically to accommodate Lemtrada patients. During the relevant time period, TAF’s MS fund frequently ran out of funding and was closed to new patients. If any patients applied for co-pay assistance at a time when the MS fund was out of funding and closed to new patients, TAF did not maintain a wait list of such patients. As a consequence, whenever TAF’s MS fund opened to new patients, the fund provided grants to the patients who applied immediately after the opening and did not provide grants to patients who had sought to apply earlier but at a time when the fund was closed.
The United States further alleged that Sanofi made payments to TAF not with a charitable purpose but rather with the intention of using TAF as a conduit to pay the financial obligations, including Medicare co-pay obligations, of patients taking Lemtrada, and that Sanofi’s payment through TAF of Medicare co-pays for Lemtrada violated the Anti-Kickback Statute. To effectuate its scheme, Sanofi worked with its third-party reimbursement hub to identify Medicare patients for whom physicians had prescribed Lemtrada, but who had not yet received infusions of the drug because they lacked sufficient funds to afford the co-pays for Lemtrada. Sanofi made nine payments to TAF during 2015 and 2016. At the times Sanofi made eight of these nine payments, TAF’s MS fund had run out of funding, and was closed to new patients. In conjunction with its payments to TAF, and knowing that TAF’s MS fund did not maintain wait lists and would fund the first patients who applied for assistance after the fund received new funding, Sanofi instructed its hub quickly to refer as many Lemtrada patients as possible to the TAF MS fund. As a result, when TAF’s MS fund opened with funding from Sanofi, Lemtrada patients received a disproportionately large share of the Medicare co-pay grants TAF issued and patients taking MS drugs other than Lemtrada received a disproportionately small share of the Medicare co-pay grants TAF issued.
“According to the allegations in today’s settlement agreement, Sanofi used a supposed charity as a conduit to funnel money to patients taking Sanofi’s very expensive drug, all at the expense of the Medicare program,” said United States Attorney Andrew E. Lelling. “This office will continue to pursue drug companies for violations of the anti-kickback laws. We commend Sanofi for swiftly resolving the government’s allegations.”
“Sanofi sought to undermine the Medicare program through its use of kickbacks disguised as routine charitable donations aimed at helping patients battling multiple sclerosis and who were struggling with costly copays,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “They rigged the system so those taking its drug Lemtrada gained an unfair advantage over patients using other medications, and with today’s settlement, they are finally being held accountable for their actions.”
Sanofi has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sanofi implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, and compliance-related certifications from company executives and Board members.
A limited liability partnership formed by a former employee of Sanofi’s predecessor, Genzyme Corporation, brought these allegations through a whistleblower lawsuit. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery. In connection with today’s announced settlement, the partnership will receive approximately $2.7 million of the recovery.
U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Joseph Bonavolonta made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Evan Panich of Lelling’s Office, with assistance from Kelley Hauser, Trial Attorney with Department of Justice’s Civil Division.
Romanian Man Pleads Guilty to Access-Device Fraud and Aggravated Identity TheftRead the Press Release
BIRMINGHAM, Ala. – A Romanian man pled guilty on Wednesday to multiple counts of access device fraud and aggravated identity theft, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge James G. Hernandez.
A nine-count indictment filed in U.S. District Court charges Alexandru Stoica, 35, with three counts of illegally possessing and using fraudulent access devices and six counts of aggravated identity theft in Limestone County in October 2019.
According to the plea agreement, Stoica knowingly used and attempted to use unauthorized access devices – gift cards – encoded with bank account numbers each issued to other persons, for the purpose of withdrawing money from the bank accounts.
“Stoica and the criminal element with whom he works specifically target our communities here in the Northern District of Alabama because of a perceived weakness in ATM security. That perception was proven wrong with his guilty plea,” Town said. “He will now have plenty of time to reconsider that strategy.”
“The hardworking people of this community can rest easier now that this fraudster is no longer able to steal their money,” said James Hernandez, Assistant Special Agent in Charge for Alabama. “Catching and prosecuting criminals that attack the integrity of the United States’ financial system is one of HSI’s top priorities.”
The maximum penalty for fraudulent use of a counterfeit access device is 10 years in prison and a fine of $250,000 or twice the gross gain, whichever is greater. The maximum penalty for both using and attempting to use a counterfeit access device is 15 years in prison and a fine of $250,000 or twice the gross gain or loss and a possible fine of $250,000 or twice the gross gain or loss, whichever is greater., whichever is greater. Aggravated identity theft carries a mandatory two-year prison sentence per count. At least one count must run consecutively to the other sentences and the remaining counts can run either concurrently or consecutively to each other.
Immigration and Custom Enforcement’s Homeland Security Investigations investigated the case, which Assistant U.S. Attorney Michael R. Pillsbury is prosecuting.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Shawn Hawley, age 39, was sentenced on February 24, 2020, to 18 months in federal prison, followed by 18 months of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Hawley, a previously convicted felon who is prohibited from possessing firearms, being in possession of an Izhmash, model Saiga-12, 12 gauge shotgun, which was found after Hawley came into contact with law enforcement in November 2018 at Rapid City.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Hawley was immediately remanded to the custody of the U.S. Marshals Service.
Raleigh Blood Gang Member Sentenced for Illegally Possessing a FirearmRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced TAVEYON JAMOND WILLIAMS, 21, of Raleigh, NC, to 70 months’ imprisonment, followed by 3 years of supervised release.
WILLIAMS was named in an Indictment filed on June 7, 2019 charging him with one count of Felon in Possession of a Firearm on February 6, 2019. On October 9, 2019, WILLIAMS pled guilty.
On February 6, 2019, officers with the Raleigh Police Department (RPD), were on proactive patrol around Jones Street and North Tarboro Street in Raleigh, when they encountered WILLIAMS. The officers recognized WILLIAMS, a convicted felon, from previous encounters with him and were aware of multiple outstanding warrants for WILLIAMS’ arrest. As officers approached WILLIAMS to serve the outstanding warrants, WILLIAMS fled on foot. With the assistance of a police K-9 and witness identification, officers determined WILLIAMS ran into a nearby apartment.
Officers made contact with the occupants of the apartment WILLIAMS was witnessed entering. WILLIAMS was arrested at the residence without further incident. Officers conducted a search of the residence and recovered WILLIAMS’ Smith & Wesson, M&P Shield, 9mm pistol loaded with eight rounds of ammunition.
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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Prince George’s County Man Sentenced to 22 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Rody L. Bowden, age 41, of Prince George’s County, Maryland, to 22 years in federal prison, followed by lifetime supervised release, on the charge of sex trafficking of a minor. Bowden was a registered sex offender at the time of the offense and will be required to continue to register as a sex offender upon his release from prison.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI).
“This is an egregious case because the defendant was already a twice-convicted sex offender and his victim was a 14-year old child,” said U.S. Attorney Robert K. Hur. “Rody Bowden will now serve 22 years in federal prison, where there are no suspended sentences and no parole – ever. This sentence sends a powerful message that the sex trafficking of children will not be tolerated in Maryland.”
“This man—already a two-time sex offender—exploited and trafficked a child,” said John Eisert, HSI Baltimore special agent in charge. “HSI is committed to finding and investigating predators like him so they can no longer harm our communities’ most vulnerable members—its children.”
According to Bowden’s plea agreement, in late 2016 and early 2017, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student, including in Anne Arundel County motel rooms. On January 4, 2017, Bowden recorded a video of the victim engaged in oral sex with him. The next day, Bowden created an account on a streaming pornographic website and uploaded the video to his account, where it could be viewed by all of Bowden’s followers on the site. On September 4, 2017, Bowden e-mailed a copy of the video to another account that he controlled.
Bowden was previously required to register as a sex offender, stemming from two convictions for third-degree sex offenses in Prince George’s County and Charles County. Bowden has been detained since his arrest.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
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Poca Man Pleads Guilty to Role in $4 Million Warranty Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – A Poca, West Virginia man entered a guilty plea to mail fraud for his role in a scheme to defraud Toyota of more than $4 million, announced United States Attorney Mike Stuart. Stanley Clark, 67, faces up to 20 years of incarceration when he is scheduled to be sentenced on May 28, 2020. He will also be required to pay restitution to Toyota.
“This was one heck of a scheme and it worked until the fraud was caught. Of course, that’s always the story with fraud schemes. Clark was involved in perpetrating this warranty fraud scheme for two years,” said United States Attorney Mike Stuart. “Thanks to the outstanding work of a number of law enforcement agencies, the scheme was thwarted and Clark is facing significant time in prison for his crime. Great work by the entire team to expose a costly fraud to a great company and consumers.”
Clark was employed as a transfer agent for a company contracted by Toyota to administer an extended warranty extension program where Toyota had offered to repurchase certain trucks for 150% of their value, so long as those trucks were owned by individual Toyota customers. Clark admitted he was a participant in a fraudulent scheme whereby a Kentucky used car dealership, Big Blue Motor Sales, bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced the car company to repurchase the trucks at 150% of value.
Clark admitted that the execution of the scheme relied on him to coordinate fraudulent truck repurchase meetings, work with a notary to forge the false owners’ signatures on truck repurchase documentation, and mail the fraudulent repurchase documentation that induced Toyota to repurchase the trucks. Clark received a cash payment from Big Blue Motor Sales for every fraudulent transaction. The scheme participants ran 350 trucks through the scheme between 2013 and 2015, causing approximately $4.3 million in losses to Toyota.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police, and the West Virginia Office of the Insurance Commissioner conducted the investigation. Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Pierre Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on February 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Joel Boe, age 38, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Boe was indicted by a federal grand jury on September 10, 2019. He pled guilty on December 5, 2019.
The conviction stemmed from a conspiracy that occurred between June 2017 and September 2019, in which Boe, knowingly and intentionally, conspired and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine in and around the Pierre and Ft. Pierre communities.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Boe was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Tax Preparer Convicted at Trial on All CountsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Principal Deputy Assistant Attorney General Richard E. Zuckerman, announced that Nvahbulai “Kosh” Quisiah, 44, of Philadelphia, PA was convicted today after a jury trial on charges of preparing false tax returns, aggravated identity theft and related crimes.
As the owner and operator of a Philadelphia-based tax preparation business on Woodland Avenue, First Premier Tax Service also d/b/a Kosh & Associates, the defendant prepared tax returns for clients that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents for tax years 2009 through 2016. This resulted in inflated tax refunds for his clients to which the clients were not entitled. Quisiah also bought and sold the personal identifying information of children in order to falsely claim the children as dependents on tax returns.
“Today’s verdict serves as a reminder to tax preparers (and tax payers) as we find ourselves in the middle of tax season: don’t try to defraud the federal government,” said U.S. Attorney McSwain. “When tax preparers fraudulently inflate tax refunds, every honest American tax payer loses. My Office will continue to work with our federal partners here and in Washington D.C. to investigate and prosecute these crimes.”
“The Justice Department and the IRS will continue to vigorously investigate and prosecute corrupt tax return preparers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “Preparing false tax returns for clients, and using minors’ identities to do so, will not be tolerated.”
“When people like Mr. Quisiah cheat the tax system, they victimize the hard-working taxpayers of America”, said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. “Today’s verdict hopefully shows other potential criminals that the Special Agents of IRS-CI are working every day to protect the integrity of the tax system.”
The defendant faces a mandatory minimum sentence of two years’ imprisonment for aggravated identity theft, and up to a maximum of 89 years’ imprisonment for the other convictions of conspiracy, wire fraud, and preparing false tax returns.
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.
Philadelphia Return Preparer Convicted of Tax FraudRead the Press Release
A federal jury in Philadelphia, Pennsylvania, found Nvahbulai Quisiah guilty today of conspiracy to defraud the United States, preparing false client tax returns, wire fraud, and identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
According to the evidence presented at trial, Quisiah owned and operated First Premier Tax Service, a tax return preparation business in Philadelphia. From 2010 through 2017, Quisiah falsified clients tax returns by claiming false dependents, itemized deductions, and business losses to fraudulently increase the refunds paid by the Internal Revenue Service (IRS).
“The Justice Department and the IRS will continue to vigorously investigate and prosecute corrupt tax return preparers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “Preparing false tax returns for clients, and using minors’ identities to do so, will not be tolerated.”
“Today’s verdict serves as a reminder to tax preparers (and tax payers) as we find ourselves in the middle of tax season: don’t try to defraud the federal government,” said U.S. Attorney McSwain for the Eastern District of Pennsylvania. “When tax preparers fraudulently inflate tax refunds, every honest American tax payer loses. My Office will continue to work with our federal partners here and in Washington D.C. to investigate and prosecute these crimes.”
U.S. District Judge Nitza I. Quinones Alejandro scheduled sentencing for June 10, 2020. At sentencing, Quisiah faces 20 years in prison for each wire fraud count, a maximum of five years in prison for conspiracy, three years in prison for aiding and assisting in preparing tax returns, and a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ann M. Cherry of the Tax Division and Assistant U.S. Attorney Anthony Wzorek, who prosecuted the case.
Philadelphia Man Charged with Drug OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rashaun Flemming, age 31, of Philadelphia, Pennsylvania, was indicted on February 27, 2020, by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment charges Flemming with four counts of possession with intent to distribute cocaine base between October 7, 2019 and November 21, 2019, in Lycoming County.
This case was investigated by the Lycoming County Narcotics Enforcement Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged by indictment 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 possession with the intent to distribute cocaine base is 30 years’ imprisonment and a fine. A sentence for each of these offenses also includes a period of supervised release following imprisonment. 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
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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Owner of Fraudulent Mortgage Elimination Company Sentenced to 11 Years in Prison for $38 Million Fraud ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JACQUELINE GRAHAM was sentenced today to 132 months in prison in connection with a $38 million fraudulent mortgage debt elimination scheme. GRAHAM previously was convicted in June 2019 after a two-week trial before U.S. District Judge Nelson S. Román, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jacqueline Graham brazenly defrauded vulnerable homeowners during the housing crisis by falsely promising that, for substantial fees, she could make millions of dollars of their mortgage debt disappear. In reality, she pilfered her victims’ money, leaving them far worse off, and some ended up losing their homes. Now Graham will spend 11 years in federal prison for preying upon her many victims.”
According to the Indictment in the case, the evidence presented at trial, and statements made in public court filings and proceedings, including GRAHAM’s sentencing hearing:
From at least 2011 to at least 2012, JACQUELINE GRAHAM partnered with Bruce Lewis and John Ruzza in operating the Valhalla, New York-based Terra Foundation, which held itself out as a business that would investigate and eliminate mortgage loans in exchange for fees, soliciting clients who were having difficulties making their mortgage payments. In fact, however, Terra engaged in a wide-ranging scheme to defraud clients, county clerks’ offices, and banks.
The fraudulent scheme, which was created by GRAHAM and Lewis, involved Terra performing “audits” of clients’ mortgages, sending pseudo-legal paperwork to the banks and/or lenders holding the mortgages, and ultimately filing purported mortgage discharges with the relevant county clerks’ offices. As a result, anyone doing a title search for one of Terra’s clients would see that the client’s mortgage had been satisfied. The mortgages had not, however, been discharged, and the mortgages were eventually reinstated, after the clients paid their fees.
In order to effectuate the scheme, GRAHAM, Lewis, and Ruzza involved others, including Rocco Cermele, the director of operations, Paula Guadagno, who filed discharges on behalf of Terra, and Anthony Vigna, a lawyer and CPA who worked in Terra’s offices. Vigna was formerly an Assistant Corporation Counsel for the City of Yonkers, and a college accounting and law professor, including stints on the faculties of Mercy College, Iona College, SUNY Maritime College, College of Mount St. Vincent, and Westchester Community College.
In total, GRAHAM and her co-conspirators filed over 60 fraudulent discharges in Westchester and Putnam Counties in New York, and in Connecticut. The fraudulent discharges claimed to discharge mortgages with a total loan principal of nearly $38 million.
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In addition to her prison term, GRAHAM, 54, formerly of Antioch, California, and Levittown, Pennsylvania, was sentenced to five years of supervised release and ordered to pay restitution to her victims in the amount of $694,450 and forfeiture of $138,941.86.
Lewis, 67, formerly of Alaska and Washington State, previously was sentenced by Judge Román to seven years in prison, three years of supervised release, and forfeiture of $149,408.
Vigna, 61, of Thornwood, New York, previously was sentenced by Judge Román to one year and one day in prison, three years of supervised release, and $250,500 of restitution.
Ruzza, 49, formerly of Mahopac, New York, previously pled guilty before U.S. District Judge Cathy Seibel to one count of participating in a conspiracy to commit mail fraud, wire fraud, and bank fraud relating to the Terra scheme, as well as one count of participating in a conspiracy to commit wire fraud, two counts of bank fraud, two counts of wire fraud, and one count of obstruction of justice.
Cermele, 57, of Yonkers, New York, and Guadagno, 62, of Verplanck, New York, previously pled guilty to their participation in the scheme.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Berman also thanked the Westchester County District Attorney’s Office and the Department of Housing and Urban Development for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys David Felton, Michael Maimin, and James McMahon are in charge of the prosecutions.
Northumberland County Man Charged with Violating Toxic Substance Control ActRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dennis Morgan, age 73, of Northumberland County, Pennsylvania, was indicted on February 27, 2020 by a federal grand jury on three violations of the Toxic Substances Control Act.
According to United States Attorney David J. Freed, the indictment alleges that Morgan, of Northumberland County, failed to provide a lead hazard pamphlet or warning and failed to retain records as required by the Code of Federal Regulations in violation of the Toxic Substances Control Act.
The investigation was conducted by the Environmental Protection Agency. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments 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 for each violation under federal law is 1 years of imprisonment, 1 years of supervised release, and a fine of $100,000. 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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Mission Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on February 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Luke Joseph Burning Breast, age 36, was sentenced to 16 months in federal prison, followed by 2 years of supervised release, forfeiture of a firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burning Breast was indicted by a federal grand jury on August 14, 2019. He was convicted of the charge on December 10, 2019, following a two-day jury trial in Pierre, South Dakota.
The conviction stemmed from Burning Breast being previously convicted of Drug User in Possession of a Firearm, a felony, in U.S. District Court for the District of South Dakota in 2008. On April 9, 2019, in Rosebud, South Dakota, Burning Breast was at a residence when a heated altercation ensued between him and his domestic partner. Law enforcement was contacted and responded to the residence. At the scene, officers overheard Burning Breast say his rifle was placed outside during the argument. Upon questioning, Burning Breast affirmed the location of the rifle and acknowledged his prior felony conviction, but erroneously asserted the conviction was expunged. Officers found the rifle outside the residence as Burning Breast described. Burning Breast’s felony conviction had not been expunged and remained valid.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Miami Resident Sentenced to 25 Years in Prison for Sex Trafficking a MinorRead the Press Release
Jim Lundi, 38, of Miami, was sentenced to a total of 300 months in prison by U.S. District Judge Robert N. Scola, Jr. after pleading guilty to sex trafficking a minor.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Alfredo Ramirez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, in November 2017, the defendant met the 16-year-old victim, who was homeless and addicted to drugs, and saw an opportunity. The victim began living with him in an abandoned house in Miami. Shortly thereafter, the defendant discussed going into “business” with the victim. The defendant taught the victim how to use websites such as Backpage to advertise sex for money. He took nude photographs of the victim and then posted them on various websites including Backpage and listed his phone number in the advertisements as the method of contact.The defendant communicated with potential customers who responded to the advertisements and set up dates for the victim. Before meeting with a customer, the defendant often told the victim, “condoms, money, don’t play games.” He set the prices for the commercial sex acts and kept all of the money. The defendant regularly beat the victim for not making enough money from commercial sex acts or for trying to keep some of the money that she had earned. He frequently only gave the victim small amounts of drugs at a time, knowing that she had a strong addiction, in order to maintain control over her.
Also according to the court record, sometime in January 2018, the defendant transported the victim to a motel in Hollywood, Florida, where they stayed for approximately two weeks. During this time, the victim engaged in commercial sex acts inside the motel room while the defendant hid in the closet. The defendant then took the victim back to Miami because he wanted to make more money. After returning to Miami, the victim escaped from the defendant after he beat her and dragged her down a street. The victim broke away from the defendant and ran into a nearby restaurant – scraped, battered, and without pants. A good samaritan called the police and the victim was transported to a hospital.
Following his release from prison, Lundi will be on supervised release for 25 years and must register as a sexual offender (Case No. 19cr20075).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and assistance from the FBI Behavioral Analysis Unit and Operational Technology Division, National Center for Missing and Exploited Children, and the Miami-Dade State Attorney’s Office.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation and Human Trafficking Task Force, MDPD, and all those who assisted in this matter. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Rilwan Adeduntan.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Citizen Sentenced in Major Drug Trafficking Ring for Methamphetamine and CocaineRead the Press Release
United States Attorney Joe Kelly announced that on February 28, 2020, Jose Ivan Contreras-Gomez, 30, of Mexico, was sentenced to 120 months’ imprisonment for Possession with Intent to Distribute 50 Grams or More of Methamphetamine and 500 grams or more of Cocaine by United States District Judge Robert F. Rossiter, Jr. There is no parole in the federal system. He was also sentenced to 5 years of supervised release following his release from prison. Contreras-Gomez is also subject to deportation and removal from the United States after serving his prison term.
On September 5, 2018, a confidential human source (CHS), equipped with audio and video recording devices, met with Contreras-Gomez and purchased 452.68 grams of methamphetamine. Law enforcement executed a search on Contreras-Gomez’s home and seized 2 kilos of cocaine, $11,215 in U.S. currency, a handgun, ammunition, scales and drug trafficking ledgers.
This case was part of the Greater Omaha Safe Streets Initiative and investigated by the Federal Bureau of Investigation and Omaha Police Department.
Metro Denver Carjacker/Gun Store Robber Sentenced to 8 Years in Federal PrisonRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jonathan Estrada, age 21, of Denver was sentenced yesterday to serve 96 months (8 years) in federal prison followed by 3 years on supervised release for carjacking and robbery of two gun stores. Estrada appeared at the sentencing hearing in custody and was remanded at its conclusion. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division joined in this announcement.
Estrada and others were involved in violent “smash and grab” burglaries of two gun stores, stealing at least 30 firearms.
According to the stipulated facts from the plea agreement, on September 19, 2017, Estrada and another person burglarized Reloader’s gun store in Arvada, Colorado, after throwing a rock through a glass window. They stole seventeen firearms and left in a stolen vehicle.
On the morning of December 26, 2017, Estrada committed an armed carjacking in Arvada, where he fired a shot at an individual, then stealing the victim’s 2008 BMW.
On January 18, 2018, the defendant and five others burglarized Murdoch’s gun store in Littleton. They entered the store after throwing a rock through a glass window. They spent 3 minutes in the store, stealing 13 AR-15 style firearms. That evening, the ATF executed a search warrant at Estrada’s address. Agents found evidence related to the September 19, 2017 and January 18, 2018 gun store burglaries, as well as the armed carjacking.
“Gun crime is a top priority for the Department of Justice and our office,” said U.S. Attorney Jason Dunn. “Seizing these weapons and putting this defendant in prison for 8 years will unquestionably make our communities safer.”
“The community is safer as a result of this investigation,” said ATF Denver Field Division Special Agent in Charge David Booth. “ATF will combat violent crime with every resource as its disposal.”
This case was investigated by the ATF. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster. The sentence was handed down by U.S. District Court Judge Robert E. Blackburn.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Meriden Man Pleads Guilty to Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DONALD CARIATI, JR., 44, of Meriden, waived his right to be indicted and pleaded guilty today in New Haven federal court to obstructing the IRS.
According to court documents and statements made in court today, Cariati owns and operates Cariati Developers Inc. (“CDI”), a snowplow and hauling business based in Wallingford. Between 2013 and 2017, Cariati paid several CDI employees with company checks asserting that they were independent contractors or subcontractors in order to evade the responsibility to withhold and pay over taxes to the IRS. However, Cariati and CDI failed to issue Forms 1099 to these “subcontractors” for particular years. Cariati also informed certain individuals that they were being paid off the books, meaning that their pay was not reported to the IRS.
In late 2015, the IRS began an audit of CDI. During the course of this audit, Cariati caused fraudulent invoices to be made available to an IRS revenue agent. The invoices were purported to have been created in 2013 and purported to substantiate that individuals were appropriately considered subcontractors.
The investigation also revealed that, in 2014, CDI paid an invoice related to products for Cariati’s cigarette boat. During the IRS audit, Cariati caused his accountant to provide to the IRS a false invoice to make it appear that the purchase was a business expense and not a personal expense.
As part of his plea agreement, Cariati agrees that the tax loss in this case is between $550,000 and $1.5 million.
Cariati pleaded guilty to one count of obstructing or impeding the due administration of the Internal Revenue laws, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on June 4, 2020.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Mental Health Clinic Owner Sentenced to 18 Months of Imprisonment After Making False Claims to Medicaid for Services Allegedly Provided to Deceased PatientsRead the Press Release
St. Louis, MO – Naim Muhammad, 56, of St. Charles, MO, was sentenced today to 18 months of imprisonment after previously pleading guilty to one count of making a false claim to Medicaid on November 18, 2019 before U.S. District Judge Audrey G. Fleissig. Mr. Muhammad was also ordered to pay $366,185 as restitution to the Missouri Medicaid program, a health care benefit program that provides medical items, benefits, and services to low income citizens of Missouri.
According to the plea agreement, Mr. Muhammad was the President of a business named Community Behavior Health (“CBH”). CBH maintained an office in the City of St. Louis, Missouri. Mr. Muhammad had no psychiatric training or license.
Mr. Muhammad billed the Missouri Medicaid program for mental health therapy services to a patient identified by her initials as W.W. Mr. Muhammad told Medicaid that a licensed provider with the initials D.P. had provided the therapy to W.W. on June 21, 2017. However, Mr. Muhammad’s statements were false and fraudulent in that patient W.W. was not treated by the licensed provider D.P. on June 21, 2017, the date of service shown in defendant’s therapy records for W.W. Mr. Muhammad’s statements were material to the Missouri Medicaid program because the program does not pay for services that are not actually provided to the patient, and does not pay for mental health services that are provided by unlicensed individuals.
The Indictment in this case further alleged that Mr. Muhammad repeatedly billed the Missouri Medicaid program for therapy services allegedly provided on dates when the patient was actually deceased, and therefore unable to receive any services. For example, patient W.W. died on June 8, 2017, before the alleged June 21, 2017 session that was billed to the Missouri Medicaid program.
“When individuals rig the Medicaid system for personal gain, it hurts those who legitimately require treatment and the taxpayers who pay into the system. I’m pleased that our Medicaid Fraud Control Unit and the U.S Attorney’s Office are able to work together to root out and prosecute this fraud” said Eric Schmitt, the Attorney General of Missouri.
This case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, with assistance from the Federal Bureau of Investigation and the Division of Professional Registration of the Missouri Department of Commerce and Insurance.
Manhattan U.S. Attorney Announces Guilty Plea of U.S. Accountant in Panama Papers InvestigationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and Brian A. Benczkowski, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that RICHARD GAFFEY, a/k/a “Dick Gaffey,” pled guilty today before U.S. District Judge Richard M. Berman to wire fraud, tax fraud, money laundering, aggravated identity theft, and other charges. GAFFEY, a resident of Massachusetts, is charged along with Harald Joachim von der Goltz, Ramses Owens, and Dirk Brauer in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities. Harald Joachim von der Goltz pled guilty to his role in the scheme on February 18, 2020.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Richard Gaffey went to extraordinary lengths to circumvent U.S. tax laws in order to maintain Harald Joachim von der Goltz’s wealth and hide it from the IRS. Using the specialized criminal services of global law firm Mossack Fonseca, Gaffey assisted others in violating U.S. tax laws for decades.”
Assistant Attorney General Brian A. Benczkowski said: “This defendant worked with the Mossack Fonseca law firm and exploited his role as an accountant to create fraudulent shell companies and defraud the United States of millions of dollars over decades. Today’s guilty plea reflects the Department’s commitment to prosecute financial professionals and other gatekeepers to the U.S. financial system who abuse the public’s trust.”
According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including GAFFEY’s guilty plea hearing:
Since at least 2000 through 2018, GAFFEY conspired with others to defraud the United States by concealing his clients’ assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means. During all relevant times, GAFFEY assisted U.S. taxpayers who were required to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. GAFFEY helped those U.S. taxpayers evade their tax reporting obligations in a variety of ways, including by hiding the beneficial ownership of his clients’ offshore shell companies and setting up bank accounts for those shell companies. These shell companies and bank accounts made investments totaling tens of millions of dollars. For one U.S. taxpayer, GAFFEY advised how to covertly repatriate approximately $3 million to the United States by reporting to the IRS a fictitious company sale that never actually occurred to evade paying the full U.S. tax amount. GAFFEY was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca.
GAFFEY was the U.S. accountant for Harald Joachim von der Goltz. From 2000 until 2017, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income. In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, GAFFEY falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike von der Goltz – was not a U.S. taxpayer. In support of this fraudulent scheme, GAFFEY submitted the name, date of birth, government passport number, address, and other means of identification of von der Goltz’s elderly mother to a U.S. bank in Manhattan.
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GAFFEY, 75, a U.S. citizen and resident of Medfield, Massachusetts, pled guilty to one count of conspiracy to commit tax evasion and to defraud the United States, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114, each of which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
GAFFEY is scheduled to be sentenced by Judge Berman on is June 29, 2020, at 11:00 a.m. Von der Goltz is scheduled to be sentenced by Judge Berman on June 24, 2020, at 11:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
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U.S. Attorney Berman praised the outstanding investigative work of IRS-Criminal Investigation and Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Mr. Berman also thanked the Criminal Division’s Office of International Affairs as well as law enforcement partners in France, the United Kingdom, Panama, and Germany for their assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorneys Michael Parker and Parker Tobin of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens and Brauer, and every fact described should be treated as an allegation.
Manager of Marijuana Cultivation Site in Shasta Trinity National Forest ArrestedRead the Press Release
SACRAMENTO, Calif. — Custodio Ibarra Nunez, 37, of Merced, was arrested pursuant to a federal arrest warrant today. On Jan. 30, 2020,a federal grand jury returned a three-count indictment against Nunez, charging him with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of public lands in the Shasta-Trinity National Forest, U.S. Attorney McGregor W. Scott announced.
This indictment relates to the same conspiracy charged in U.S. v. Lopez Pena et al. (2:19-cr-123). According to court documents, between May 23 and July 8, 2019, Nunez was a manager in a conspiracy to cultivate over 4,000 marijuana plants south of Rays Peak in Shasta-Trinity National Forest with three other co-conspirators, including an uncharged 17-year-old minor. In addition to the cultivation charges, Nunez is charged with committing depredation of federal lands and resources.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, the Bureau of Land Management, the Trinity County District Attorney’s Office the Merced Area Gang and Narcotics Team, Merced County Sheriff’s Office, the Atwater Police Department, and the Redding Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of either of the marijuana charges, Nunez faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a fine of up to $10 million. If convicted of damaging public lands, he faces a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Charged in Kidnapping and Death of Pennsylvania Woman Whose Body Was Found in Nevada DesertRead the Press Release
LAS VEGAS, Nev. – A Pennsylvania resident has been charged for allegedly kidnapping and killing a woman whom he led to believe was his girlfriend, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
John Matthew Chapman, 40, was charged by criminal complaint in the District of Nevada on February 20, 2020 with one count of kidnapping resulting in death. Chapman is currently in state custody at Allegheny County jail in Pennsylvania, where he awaits his initial court appearance in federal court on the Nevada criminal complaint. The initial appearance is scheduled for March 2, 2020 in the Western District of Pennsylvania.
According to information contained in the criminal complaint, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim or her van in approximately two months, but they had recently observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found a fake CIA identification card with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.
A family member of the victim told investigators that she was communicating with the victim’s Facebook messenger account. Law enforcement determined that Chapman was pretending to be the victim, including responding to messages as the victim after her death.
On November 15, 2019, Chapman was arrested and interviewed by Bethel Park Police Department detectives. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim and had a “kill kit” ready before their departure to Nevada.
Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a photo shoot, he bound her hands and feet with plastic zip ties and affixed her to a signpost. He then applied duct tape to her mouth and nose, and watched her die from asphyxiation. After the victim’s body was later discovered, she was a “Jane Doe” unknown decedent until she was later positively identified by the Clark County Office of the Coroner/Medical Examiner through dental records.
The investigation revealed that Chapman returned to Pennsylvania afterwards, and continuously used the victim’s residence following her death and passed it off as his own.
If convicted, Chapman faces the maximum penalty of life in prison or death. A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is the product of an investigation by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Allison Reese are prosecuting the case.
The publicly filed criminal complaint can be found here.
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Leader of Mendota MS-13 Gang Pleads Guilty to Drug Trafficking and Assault with a Deadly WeaponRead the Press Release
FRESNO, Calif. —Denis Barrera-Palma, 25, of Mendota, pleaded guilty today to assault with a deadly weapon in aid of racketeering and conspiracy to distribute and to possess with intent to distribute methamphetamine, cocaine, and marijuana, U.S. Attorney McGregor W. Scott announced.
Barrera-Palma was the leader in Mendota of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking.
The investigation began after reports that MS-13 had established a presence in and around Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity. In August 2018, 25 individuals associated with MS-13 were arrested on federal and state charges in connection with their gang activities, including assault with a dangerous weapon in aid of racketeering and conspiracy to distribute and possess with intent to distribute controlled substances.
According to court documents, on May 14, 2018, Barrera-Palma, along with others, assaulted another individual with a pipe in front of an elementary school in Mendota in order to gain entrance to, or maintain or increase his status within MS-13.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Kathleen Servatius, and Kimberly Sanchez are prosecuting this and related cases. Senior Deputy District Attorney Dennis Lewis is working with the team and prosecuting related cases in Fresno County Superior Court.
Four of Barrera-Palma’s co-defendants have pleaded guilty. On Jan. 27, Claudia Lizaola, 40, of San Bernardino, was sentenced to 10 years in prison for conspiracy to distribute methamphetamine. Other co-defendants are scheduled for trial on April 14. These remaining defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Barrera-Palma is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 10. Barrera-Palma faces a maximum statutory penalty of 40 years in prison and a $1.25 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Lead defendant pleads guilty in Texas-to-Ohio heroin distribution ringRead the Press Release
DAYTON – Gene Talley, 48, of Dayton, pleaded guilty in U.S. District Court to conspiring to distribute more than 100 grams of heroin.
According to court documents, beginning in 2007, Talley would meet with an individual in Austin, Texas to obtain controlled substances, including heroin, to distribute in the Southern District of Ohio.
Talley also arranged for other individuals to collect the drugs and bring them to Ohio for distribution. In addition, he directed individuals to transport money back to the individual in Texas.
On three occasions, money intended for delivery in Texas was seized by law enforcement, including approximately: $99,000 seized by police in Austin, Texas in December 2012; $230,000 seized by police in Chicago in June 2015; and $240,000 seized by police in Winfield, Texas.
Talley pleaded guilty on Feb. 26 to conspiring to distribute more than 100 grams of heroin. A sentence of between 60 to 150 months in prison has been recommended for the Court’s consideration.
Four co-defendants have also pleaded guilty in connection to this case.
Brianna Reid pleaded guilty in federal court in Dayton today.
Adriauna Smith, Syreeta Scruggs and Kenneth Patterson each pleaded guilty in January or February and are scheduled to be sentenced during the week of May 18.
Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA) and the DEA’s Drug Task Force announced the pleas entered into before U.S. District Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Andrew J. Hunt are representing the United States in this case.
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Last of Five East Bay Contractors Sentenced in Mail Fraud SchemeRead the Press Release
OAKLAND – Kevin Laney was the last of five defendants sentenced for their respective roles in a mail fraud scheme, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Yvonne Gonzalez Rogers, United States District Judge, sentenced Laney to the 25 months he had already served in prison for his role in the scheme.
Laney, 52, of Bozeman, Montana, pleaded guilty to the charge on August 15, 2019. Specifically, Laney admitted he conspired with Brian Federico, 54, of Tracy, Calif., to defraud Laney’s employer at the time, Matrix Service Company. The mail fraud scheme also was the subject of a two-week trial in September of 2019, at the conclusion of which a jury found Federico guilty of one count of mail fraud conspiracy and two counts of mail fraud.
According to documents submitted at trial, Matrix provides tank construction, maintenance and repair services to petrochemical companies. Federico was a project manager for Imperial Shotcrete, a company hired to perform concrete construction services as a subcontractor for Matrix. The evidence at trial showed that Matrix and the FBI uncovered a complex scheme that took place between 2007 and 2010, in Matrix’s Suisun City, Calif., office, where Laney worked as a Senior Project Manager.
As part of the scheme, Federico caused Matrix to pay fraudulent and inflated invoices to Imperial, with the proceeds of the scheme then being paid downstream to Laney and Federico. Federico created false and fraudulent invoices both by using the name and logo of a real company without its authorization, and by using bogus invoices from C.E.M.S., another company Federico controlled. Federico also instructed Laney and another Matrix Project Manager to submit fraudulent invoices from fake companies to Imperial, and persuaded his employer, Imperial, to pass those bogus charges onto Matrix for payment. Most of the funds that Matrix paid on the fraudulent invoices eventually were deposited into bank accounts that Federico controlled. Pursuant to his scheme, Federico defrauded Matrix of a total of $1,289,403, with more than $875,000 of the payments ultimately being deposited into bank accounts he controlled. After Matrix and the FBI uncovered the scheme, Matrix reimbursed its customers more than $1.3 million in charges they unwittingly passed on to their customers as a result of the fraud scheme.
Many of the fraudulent invoices Federico and Imperial submitted to Matrix were submitted for payment approval to Laney and another Matrix project manager, Brandon Hourmouzus. For his role in the scheme, Laney submitted fraudulent invoices totaling $1.01 million under the name of his fake company, Rogue Consultants, for work not performed. Those invoices were paid in full by Imperial, but only after it had successfully passed the costs onto Matrix, and been paid by Matrix. The scheme continued under a third Matrix Project Manager, Charles Burnette, who passed fake costs through Imperial and its owner, Miguel Ibarria, onto Matrix for payment
On December 6, 2012, a federal grand jury indicted Federico, Laney, and their co-defendants, charging each with various financial crimes related to the scheme. Hourmouzus, Burnette, and Ibbaria all pleaded guilty to conspiracy charges related to their respective role in the scheme. In addition, all three testified at Federico’s trial.
Federico, Laney and their co-defendants were sentenced as follows:
Defendant's Name Age/Residence Charge(s) Sentence Brian Federico54/Tracy, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349
Mail Fraud,18 U.S.C. § 1341 (two counts)
Sentenced 1/24/20 to 60 months in prison, three years of supervised release, a $50,000 fine, a $300 special assessment, and $1,287,000 in restitution. Kevin Laney52/Bozeman, Montana
Conspiracy to Commit Mail Fraud, 18 U.S.C. § 1349
Sentenced 2/27/20 to time served of 25 months in prison, one year of supervised release, a $100 special assessment, and restitution to be determined. Brandon Hourmouzus45/Vacaville, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349 Sentenced 10/08/2015 to three years and six months probation, $100 special assessment, and $196,410 restitution. Charles Burnette38/Aliso Viejo, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349Sentenced 09/11/2014 to five years’ probation, $100 special assessment, and $145,149 restitution.
Miguel Ibarria60/Tracy California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349 Sentenced 12/15/15 to four years’ probation, and a $100 special assessment.Judge Gonzalez Rogers concluded that both Federico and Laney were deserving of sentencing enhancements for using sophisticated means to accomplish the illegal goals of the conspiracy. Federico also received a sentencing enhancement for being the leader organizer of the conspiracy, and Laney received a sentencing enhancement for abusing the trust of his employer, Matrix.
Judge Gonzalez-Rogers ordered the parties to return to Court on April 2, 2020, for a further hearing regarding restitution.
Assistant U.S. Attorneys Thomas R. Green and Jonathan U. Lee are prosecuting this case with the assistance of Jessica Rodriguez Gonzalez, Tina Rosenbaum, and Noble Hughes. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Lancaster Man Arrested for Robberies in Massachusetts and New HampshireRead the Press Release
BOSTON – A Lancaster man was arrested yesterday and charged in connection with a series of unarmed robberies committed in Massachusetts and New Hampshire between November 2019 and February 2020.
Matthew Alden, 26, was charged in a criminal complaint with two counts of interference with commerce by threats or violence. Alden was arrested yesterday evening and detained pending a detention hearing set for March 5, 2020.
According to charging documents, on Feb. 4, 2020, Alden robbed a TD Bank on Main Street in Athol, Mass., and on Feb. 21, 2020, Alden allegedly robbed an Avidia Bank on Maple Avenue in Shrewsbury. During both robberies, Alden wore a black ski mask and black gloves and demanded cash from the bank tellers. Alden is allegedly connected to the eight other robberies listed below:
• Nov. 21, 2019: Enterprise Bank on Littleton Road in Westford;
• Dec. 2, 2019: TD Bank on Main Street in Athol;
• Dec. 11, 2019: Honey Farms on Leominster-Shirley Road in Lunenburg;
• Dec. 12, 2019: Cornerstone Bank on South Main Street in Leicester;
• Dec. 27, 2019: Avidia Savings Bank on Maple Street in Marlborough;
• Jan. 10, 2020: Metro Credit Union on Worcester Road in Framingham;
• Jan. 10, 2020: TD Bank on Central Street in Foxborough; and
• Feb. 13, 2020: Citizens Bank on North Eastern Boulevard in Nashua, N.H..
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 on each count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Clinton, Lancaster, Millbury and Nashua (N.H.) Police Departments. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kernersville Man Sentenced to Prison for Impersonating a Federal Law Enforcement OfficerRead the Press Release
GREENSBORO, N.C. - A Kernersville man was sentenced today in federal court in Greensboro for impersonating a Deputy United States Marshal, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
MICHAEL ROBERT KWASNIEWSKI, age 38, was sentenced to a total term of imprisonment of 16 months by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, KWASNIEWSKI was ordered to serve three years of supervised release and to pay a fine of $2,000 and a special assessment of $100.00. KWASNIEWSKI pleaded guilty on March 6, 2019.
On October 30, 2018, KWASNIEWSKI was indicted for impersonating a United States Marshal. He was released on November 8, 2018, pending trial and advised that the commission of a federal felony while on release could result in enhanced penalties. On December 10, 2018, KWASNIEWSKI entered a Kohl’s department store in Kernersville wearing a grey t-shirt with a United States Marshals Service (“USMS”) emblem on the front and had a USMS badge draped around his neck. He was also armed with a handgun on his right side. Over the course of several hours in the store that night, KWASNIEWSKI displayed the badge and repeatedly identified himself to store employees as a “U.S. Marshal.”
The case was investigated by the United States Marshals Service, the Kernersville Police Department, and the Winston-Salem Police Department. The case was prosecuted by Assistant United States Attorney Meredith C. Ruggles.
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Justice Department Settles with Tufts Medical Center to Better Ensure Equal Access to Individuals with DisabilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office has entered into a settlement agreement with Tufts Medical Center to ensure equal access for individuals with disabilities at its facilities in Boston.
The agreement resolves a compliance review under Title III of the Americans with Disabilities Act (ADA). Under the three-year Agreement, Tufts will:
- improve the hospital’s policies, practices and procedures for ensuring effective communication with patients and companions who are deaf or hard of hearing (including an assessment to determine appropriate Auxiliary Aids and Services, and providing qualified interpreters in a timely way);
- improve physical access to its facilities by removing barriers at public and common use areas;
- provide one or more accessible patient rooms on every medical department;
- provide sufficient accessible medical equipment to ensure individuals with disabilities have equal access to medical services (at least one of each type per clinical service); and
- Designate an ADA Compliance Officer and an Effective Communication Coordinator.
“This case is a reminder that we still need the basic protections provided by the ADA,” said U.S. Attorney Andrew Lelling. “This is especially true for the deaf and hard-of-hearing, who often receive too little support when trying to navigate the healthcare system. I commend Tufts for working with us to improve services for patients with disabilities, and we hope this agreement encourages other healthcare providers to review their ADA compliance.”
“No one with a disability should face unlawful barriers to accessing health care facilities or receiving medical treatment,” said the head of the Civil Rights Division, Assistant Attorney General Eric Dreiband. “This agreement reflects the Department’s continued commitment to enforcing the Americans with Disabilities Act to ensure equal access for individuals with disabilities to medical care, and we appreciate Tufts’ full cooperation with the Department throughout the investigation.”
The settlement agreement is posted here: https://www.ada.gov/tufts_medical_ctr_sa.html.
Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit handled the matter with Senior Trial Attorney Alyse Bass of the Justice Department’s Disability Rights Section.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Justice Department Settles with Tufts Medical Center to Better Ensure Equal Access for Individuals with DisabilitiesRead the Press Release
Today, the Justice Department and Tufts Medical Center entered into a settlement agreement to ensure equal access for individuals with disabilities at Tufts’ facilities in Boston, Massachusetts. The agreement resolves a compliance review under Title III of the Americans with Disabilities Act (ADA). Under the agreement, Tufts will:
- improve the hospital’s policies, practices, and procedures for ensuring effective communication with patients and companions who are deaf or hard of hearing;
- improve physical access to its facilities by removing barriers at public and common use areas;
- provide one or more accessible patient rooms for each medical service; and
- provide sufficient accessible medical equipment to enable individuals with disabilities to have equal access to medical services.
“No one with a disability should face unlawful barriers to accessing health care facilities or receiving medical treatment,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This agreement reflects the Department’s continued commitment to enforcing the Americans with Disabilities Act to ensure equal access for individuals with disabilities to medical care, and we appreciate Tufts’ full cooperation with the Department throughout the investigation.”
“This case is a reminder that we still need the basic protections provided by the ADA,” said U.S. Attorney Andrew Lelling. “This is especially true for the deaf and hard-of-hearing, who often receive too little support when trying to navigate the healthcare system. I commend Tufts for working with us to improve services for patients with disabilities, and we hope this agreement encourages other healthcare providers to review their ADA compliance.”
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
NOTE: The settlement agreement can be found here.
Justice Department Settles Disability-Based Housing Discrimination Lawsuits with Owners and Developers of 11 Apartment Complexes in Puerto RicoRead the Press Release
The Justice Department announced today that the owners and developers of 11 multi-family housing complexes in Puerto Rico, whose buildings include more than 650 rental units, have agreed to pay a combined $335,000 to resolve claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the companies also agreed to make substantial retrofits to remove accessibility barriers.
Two separate consent orders, which must still be approved by the U.S. District Court for the District of Puerto Rico, resolve the government’s lawsuits filed with the court along with the consent orders against Puerto Rico-based developers Fernando L. Sumaza & Co. Inc. and Star Management Corp. and their affiliated companies. Under the terms of the settlements, the defendants must take extensive corrective actions to make the complexes accessible to persons with disabilities. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps and walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay a combined $325,000 to establish two settlement funds for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations. A $10,000 civil penalty also will be paid to the United States.
“The Fair Housing Act and Americans with Disabilities Act prohibit discrimination on the basis of disability and guarantee the rights of disabled individuals to access housing of their choice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to aggressively enforce these laws to ensure that residential multi-family housing is built with the required accessible features.”
“Access to housing free from discrimination is a right afforded to all Americans and is crucial to the development of our communities,” said U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico. “This settlement is an example of our office’s continuing efforts to enforce anti-discrimination laws that protect those rights.”
The Consent Orders also require the defendants to receive training about the Fair Housing Act and Americans with Disabilities Act to ensure that all future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department.
The 11 complexes at issue, all of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
Fernando L. Sumaza & Co., Inc. Affiliated Properties
- La Inmaculada Elderly, San Juan, PR
- Marie Gardens, Cabo Rojo, PR
- San Cristobal, San Juan, PR
- San Fernando Elderly Center, Mayagüez, PR
- Virgen del Pozo, Sabana Grande, PR
Star Management Corp. Affiliated Properties
- Florida Elderly, Florida, PR
- Isabela Elderly, Isabela, PR
- Monserrate Elderly, PR
- Morovis Elderly, PR
- Patillas Elderly, Patillas, PR
- Sunrise Elderly, San Juan, PR
Those who are entitled to share in the settlement funds will be identified through a process established in the Consent Orders. Persons who believe they may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department. For Fernando L. Sumaza & Co., Inc. affiliated properties, call toll-free at 1-800-896-7743 mailbox #9996, or e-mail at [email protected]. For Star Management affiliated properties, call toll free at 1-800-896-7743 mailbox #3, or e-mail at [email protected].
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Inland Empire Man Arrested on Indictment Alleging He Repeatedly Caused False Statements to Be Made in Bankruptcy Court PetitionsRead the Press Release
RIVERSIDE, California – A San Bernardino County man who worked as a bankruptcy petition preparer (BPP) was arrested today on federal criminal charges that allege he acted as an unlicensed attorney in bankruptcy cases, charged fees well over those permitted by law and then repeatedly lied to the United States Bankruptcy Court.
Richard Allen Mease, 62, of Victorville, was taken into custody this morning by special agents with the FBI. Mease is scheduled to be arraigned on an indictment this afternoon in United States District Court in Riverside.
The indictment, which was returned Wednesday by federal grand jury, charges Mease with four counts of making a false statement in a bankruptcy proceeding. The indictment alleges that, on at least four separate occasions, Mease concealed his identity as a BPP on bankruptcy petitions he prepared on behalf of clients.
Under applicable law and regulations, a BPP is permitted to charge fees of up to $200 to prepare and file a bankruptcy petition, but is not permitted to offer or provide legal advice.
Mease repeatedly violated these laws and regulations since at least September 2009, charging clients fees well over the legally permitted limit and acting as an unlicensed lawyer, the indictment alleges. In response to these violations, a bankruptcy court in 2011 barred him from acting as a BPP after he had charged a client more than $1,000 for BPP services and provided legal advice, according to the indictment. In 2013, the bankruptcy court issued another order holding Mease in contempt of court for continuing to prepare bankruptcy petitions in violation of the injunction.
But Mease allegedly continued to break the law and violate the court’s injunction against him. On four occasions between November 2016 and May 2018, Mease charged his clients multiple times over the amount permitted by law to prepare their bankruptcy petitions and caused false statements to be filed in their petitions, the indictment alleges.
For example, in November 2016, Mease allegedly charged one client $950 for BPP services. According to the indictment, Mease caused a false statement to be made under penalty of perjury in the bankruptcy petition which stated “No” to the question, “Did you pay or agree to pay someone who is not an attorney to help you fill out your bankruptcy forms?”
On another bankruptcy petition that contained a similar false statement, Mease charged his clients $1,550 in fees for BPP services, the indictment alleges.
If convicted of all charges, Mease would face a statutory maximum sentence of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated by the FBI, which received substantial assistance from the Office of the United States Trustee.
This case is being prosecuted by Assistant United States Attorney Natasha Haney of the Riverside Branch Office.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 27 was:
Augustus Christopher Wolfback, 18, of Lodge Grass, on charges of assault by strangulation of a dating partner. If convicted of the most serious crime, Wolfback faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wolfback was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-22.
Samuel Richard Bonko, 34, of Garryowen, on charges of failure to register as a sexual offender. If convicted of the most serious crime, Bonko faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. Bonko was detained pending further proceedings. The U.S. Marshals Service investigated the case. Pacer case reference. 19-79.
Jordan Lee Larue, 26, of Billings, on charges of prohibited person in possession of a firearm and receipt of a firearm by person under indictment for felony. If convicted of the most serious crime, Larue faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Larue was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-147.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
Appearing on Feb. 25 were:
Brandon Thomas Houdashelt, 32, of Clyde Park, on charges of distribution of controlled substances causing death and possession with intent to distribute controlled substances. If convicted of the most serious crime, Houdashelt faces 20 years to life in prison, a $1 million fine and three years of supervised release. Houdashelt was detained pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-188.
James Robert Patterson, 21, of Billings, on charges of coercion and enticement. If convicted of the most serious crime, Patterson faces a minimum mandatory 10 years to life in prison, a $250,000 fine and five years to life of supervised release. Patterson was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-20.
Christopher Cleveland, 40, of Billings, on charges of prohibited person in possession of a firearm and possession of an unregistered firearm. If convicted of the most serious crime, Cleveland faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Cleveland was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-15.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
Appearing on criminal complaints on Feb. 25 were:
Maliyah Jae Chavez, 19, of Billings, on charges of possession of stolen firearms. If convicted of the most serious crime, Chavez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Chavez was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-18.
Rodrigo Gomez, 18, of Billings, on charges of possession of stolen firearms. If convicted of the most serious crime, Gomez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Gomez was detained pending further proceedings. Pacer case reference. 20-19.
These cases are part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Sentenced for Production of Child PornographyRead the Press Release
WASHINGTON - A Bloomington, Illinois, man was sentenced today to 30 years in prison followed by lifetime supervised release for production and possession of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois. U.S. District Court Judge James E. Shadid pronounced the sentence.
Tyler Watson, 21, pleaded guilty to two counts of production of child pornography and one count of possession of child pornography before U.S. Magistrate Judge Jonathan E. Hawley on Aug. 19, 2019.
According to admissions made as part of his guilty plea, Watson came to the attention of the Bloomington Police Department while home on leave from active duty in the U.S. Navy. Information from an acquaintance of Watson’s led police officers to discover sexually explicit pictures Watson had taken of a 6-year-old boy on Watson’s cellphone, as well as other child pornography images. Watson was subsequently interrogated by the Naval Criminal Investigative Service (NCIS) and admitted to possessing, distributing and producing child pornography. A forensic examination of his electronic media subsequently revealed that he had communicated with and received sexually explicit images from other minors via the internet.
The investigation was conducted by the Bloomington Police Department and NCIS with assistance from the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Tech Investigative Unit and the FBI. This case was prosecuted by CEOS Trial Attorney Nadia Prinz and Assistant U.S. Attorneys Paul Morris and Adam W. Ghrist of the Central District of Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc<http://www.justice.gov/psc.
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.
Illinois Man Sentenced for Production of Child PornographyRead the Press Release
A Bloomington, Illinois man was sentenced today to 30 years in prison followed by lifetime supervised release for production and possession of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois. U.S. District Court Judge James E. Shadid pronounced the sentence.
Tyler Watson, 21, pleaded guilty to two counts of production of child pornography and one count of possession of child pornography before U.S. Magistrate Judge Jonathan E. Hawley on Aug. 19, 2019.
According to admissions made as part of his guilty plea, Watson came to the attention of the Bloomington Police Department while home on leave from active duty in the U.S. Navy. Information from an acquaintance of Watson’s led police officers to discover sexually explicit pictures Watson had taken of a 6-year-old boy on Watson’s cellphone, as well as other child pornography images. Watson was subsequently interrogated by the Naval Criminal Investigative Service (NCIS) and admitted to possessing, distributing and producing child pornography. A forensic examination of his electronic media subsequently revealed that he had communicated with and received sexually explicit images from other minors via the internet.
The investigation was conducted by the Bloomington Police Department and NCIS with assistance from the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Tech Investigative Unit and the FBI. This case was prosecuted by CEOS Trial Attorney Nadia Prinz and Assistant U.S. Attorneys Paul Morris and Adam W. Grist of the Central District of Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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.
Hyde Park Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – A Hyde Park man was charged yesterday in federal court in Boston with bank robbery.
Paul Whooten, 56, was charged in a criminal complaint with one count of armed bank robbery. Whooten was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley.
According to the charging documents, on Dec. 21, 2019, an individual wearing black clothing and a mask walked into a branch of Rockland Trust Bank in Hyde Park with what appeared to be a firearm. The robber pointed the firearm at the teller and said, “Give me all of your money.” The teller filled the robber’s bag with cash, and the robber fled the bank on foot. Bank surveillance cameras captured images of the robber wearing a long dark coat, black reflective jacket, a black knit hat, black sunglasses and gloves. A police officer stationed inside of the bank broadcast a description of the robber.
As alleged in the complaint, another police officer observed an individual matching the description of the robber walking down Truman Parkway. The officer issued verbal commands to the robber to drop the gun and get on the ground. The robber complied and was apprehended by law enforcement. A black rifle-type BB gun and bag of cash were recovered from the robber, who was identified as Whooten.
The charging statute provides for a sentence of up to 25years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Greene County man sentenced to prison for illegal possession of firearm silencer, missile warning systemRead the Press Release
DAYTON – A former military subcontractor was sentenced in U.S. District Court today to 33 months in prison and three years of supervised release for illegally possessing a firearm silencer and equipment that was property of the United States.
Joel Montgomery, 50, pleaded guilty to two counts in December 2019: possessing a silencer not registered to him and retaining United States property with a value of more than $1,000.
According to court documents, in June 2015, Montgomery possessed at his home a firearm silencer that was not registered to him in the National Firearms Registration and Transfer Record.
While executing another search warrant at his home in October 2015, agents discovered an AN/AAR-47 Missile Warning System and a Control Countermeasures Set Display Unit that were property of the United States.
Montgomery had previously been employed as a subcontractor on a local military base, and during that time, had gained access to the property of the United States. Upon the end of his employment contract, Montgomery did not return equipment valued at more than $1,000 and instead kept the equipment for his personal use.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Dwight Keller are representing the United States in this case.
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Grand Jury Returns Indictment Charging Utah Resident with Tax Evasion, Assisting in Preparation of False DocumentsRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Thursday afternoon charging a Price, Utah, resident with one count of tax evasion and eight counts of aiding and assisting in the preparation of false/fraudulent documents. At the time of the alleged crimes, he lived in Draper and Bluffdale.
The indictment alleges James Cunningham attempted to evade payment of federal income taxes he and his spouse owed for calendar years 2000, 2001, and 2013 – an amount of approximately $450,000 in income tax, penalties, and interest. The charges allege Cunningham took several affirmative steps to evade paying taxes, including having a person identified in the indictment as M.C. open a personal bank account at Nevada Bank & Trust which he used for his own purposes. M.C. never used or accessed the account, according to the indictment.
Cunningham used the bank account to receive commissions he earned from his sale of insurance products. As an example, the indictment alleges a deposit of $3,874.50 was made around May 15, 2013. By depositing the money into an account he controlled but was not named on, Cunningham concealed his income from the United States. In another instance, the indictment alleges that in June 2014 Cunningham caused $99,999.99 of his commissions to be deposited into a bank account held by J.C.
The indictment also alleges Cunningham used other people to obtain insurance licenses so he could sell insurance products and earn income under other names. In one instance, according to the indictment, he had M.C. obtain a life insurance license. Cunningham, the indictment alleges, used M.C.’s license to earn commissions totaling $18,891.02. Cunningham also used and controlled bank accounts belonging to other people to receive commission income.
The eight counts of aiding or assisting in the preparation of false or fraudulent documents charge Cunningham with willfully aiding and assisting in the preparation and submission of several different tax forms that were submitted to the IRS. The indictment alleges the returns were materially false and fraudulent and that at the time of preparation and submission to the IRS, Cunningham knew the taxpayers were not entitled to claim deductions in the claimed amounts and that the reported income was false.
A summons will be issued to Cunningham to appear for an initial appearance on the charges. The tax evasion count carries a potential maximum penalty of five years in prison. Each of the eight counts of aiding and assisting a fraudulent tax return carries a three year maximum sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The U.S. Attorney’s Office in Salt Lake City is prosecuting the case. IRS-Criminal Investigation special agents are conducting the investigation.
Geneva County Man Sentenced to More Than Nine Years in Prison for Federal Gun ChargesRead the Press Release
Montgomery, Alabama – On Wednesday, February 26, 2020, Jermaine Dale Jones, a 35-year-old man from Geneva County, Alabama, was sentenced to 112 months in prison for federal firearms charges, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Jones will be on supervised release for three years.
In November 2019, Jones pleaded guilty to charges of being a felon in possession of a firearm and possession of a firearm in connection with a drug trafficking crime. The charges arose out of two separate incidents.
According to court records, on May 20, 2018, officers in Enterprise, Alabama responded to a call about a man arguing with others and waving a firearm outside the window of a green Ford F-150 pickup truck near a local restaurant. When officers arrived at the location described by the caller, they observed two individuals sitting in a tan Chevy Tahoe. The officers approached the vehicle to speak to the occupants and saw the handle of a pistol next to Jones, who was in the passenger seat. Further investigation revealed there were two other firearms inside the vehicle and that Jones had purchased the weapons from the man who had been in the green F-150. Jones, who is a convicted felon, was indicted by a federal grand jury in February 2019 for being a felon in possession of a firearm.
On February 21, 2019, the United States Marshals Service and Gulf Coast Regional Fugitive Task Force officers went to Jones's residence in Geneva County to arrest him on the felon in possession of a firearm charge. During the arrest, officers saw marijuana and a handgun in plain view. A search warrant was obtained for the house and, during the search, drugs and additional firearms were found. Among the drugs seized were clonazepam, alprazolam, marijuana, hydrocodone, and methamphetamine hydrochloride. As a result of these discoveries, Jones was further charged with possession of a firearm in connection with a drug trafficking crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Enterprise Police Department, and the United States Marshals Service (USMS) investigated this case. Assistant United States Attorney Robert Nichols prosecuted this case.
Former UNF Student Sentenced to More Than 8 Years for Distributing Child Sex Abuse VideosRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Anthony Davis Stagnitta (23, St. Petersburg) to eight years and four months in federal prison for distributing child sex abuse videos over the internet. Stagnitta was also ordered to pay $132,415 in restitution to victims and to register as a sex offender.
Stagnitta had pleaded guilty on May 16, 2019.
According to court documents, in February 2018, agents from Homeland Security Investigations (HSI) began an investigation into the sexual exploitation of children that was occurring on a popular messaging application. The agents discovered that between November 24 and December 3, 2017, Stagnitta had engaged in online conversations with other users in a public group chat on the app and had discussed trading child pornography. On December 3, 2017, Stagnitta sent a video to the group that depicted the sadistic sexual abuse of an infant.
On April 30, 2018, HSI agents executed a federal search warrant at Stagnitta’s home in Jacksonville. During an interview, Stagnitta admitted that he had discussed child pornography using this app, had sent child sex abuse videos to others users via private messaging, and had posted videos in the group chats. Forensic analysis of Stagnitta’s cellphone revealed that it contained 2,904 images depicting children being sexually abused.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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 Atomwaffen Division Member Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – A white supremacist and former member of the Atomwaffen Division was sentenced today to one year in prison for possessing firearms while being an unlawful drug user and making a false statement in order to illegally purchase a firearm.
According to court documents, in October 2017, Andrew Jon Thomasberg, 21, of McLean, purchased a semiautomatic rifle and claimed to be the true purchaser. In fact, Thomasberg knew this statement was false and that he was purchasing the gun for a third party. He transferred that firearm to that third party after purchasing it. Thomasberg also possessed at least four firearms while unlawfully using controlled substances, including marijuana, psilocybin mushrooms, and opium.
According to court documents and testimony, Thomasberg, who has a prior criminal conviction for a dangerous firearms offense, was associated with white supremacist organizations, such as Vanguard America, Atomwaffen Division, and Patriot Front. In text message communications, while Thomasberg possessed firearms and was a regular drug user, he glorified racially motivated violence and referred to mass shooters as “saints.” Additionally, Thomasberg informed law enforcement that only one day before he was arrested, he had submitted an application to join Patriot Front. Patriot Front is “a white supremacist group whose members maintain that their ancestors conquered America and bequeathed it to them alone.”
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Larissa Knapp, Special Agent in Charge, Counterterrorism, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Anthony W. Mariano and Assistant U.S. Attorney Ronald L. Walutes, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-337.
Former Aledo Banker Sentenced to Five Years in Prison and Ordered to Pay $23.5 Million in RestitutionRead the Press Release
ROCK ISLAND, Ill. – U.S. Chief District Judge Sara Darrow today sentenced Dana Frye, former executive vice president and chief loan officer of the failed Country Bank of Aledo, Ill., to five years in prison, the maximum prison term for conspiring with others to make materially false statements to the Country Bank Board of Directors. Judge Darrow ordered Frye to immediately pay $23.5 million in restitution.
On Oct. 10, 2019, Frye admitted that he conspired with others to influence Country Bank to make loans to projects in which he held a personal financial interest, including the “Fyre Lake Project,” a development including a golf course and surrounding residential lots in Sherrard, Ill. Frye, 66, currently of Bettendorf, Iowa, helped found Country Bank and served as executive vice president and chief loan officer for Country Bank from its formation in March 2000 to Dec. 31, 2010. In October 2011, Country Bank failed and the Federal Deposit Insurance Corporation, as receiver, covered losses in excess of $70 million.
Frye held ownership in multiple companies that either directly participated in real estate developments or provided services to persons and entities engaged in developments. One company, known as Webgem, Inc., owned by Frye and his son, Andrew Frye, provided accounting and other services to developers. Dana Frye did not disclose to the bank board of directors his full interest in Webgem and allowed Webgem to receive proceeds from loans issued by Country Bank.
Andrew Frye pleaded guilty to a related misdemeanor offense concerning a loan he received from Country Bank and was sentenced to six months of probation and ordered to pay $15,375 in restitution. As a condition of their respective sentences, both Dana Frye and Andrew Frye are prohibited from ever working in the banking or financial industry again.
In May of 2009, Country Bank received $4.1 from the U.S. Government through the Department of Treasury’s Troubled Asset Relief Program known as TARP. On Oct. 14, 2011, Country Bank failed and the Federal Deposit Insurance Corporation took over as receiver. Other victims included Greenwoods State Bank, Burlington, Wis.; Blackhawk Bank & Trust, Milan, Ill.; and Citizens Bank of Mukwonago, Wis.
The FDIC Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) conducted the investigation. First Assistant U.S. Attorney Douglas J. Quivey and Assistant U.S. Attorney Douglas F. McMeyer prosecuted the case for the U.S. Attorney’s Office for the Central District of Illinois.
Felon Sentenced to Prison for Illegal Possession of a Pistol and AmmunitionRead the Press Release
PITTSBURGH, PA - A former resident of McKeesport, Pennsylvania, was sentenced in federal court to 30 months’ imprisonment and 3 years’ supervised release on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed sentence on Eric Antoin Johnson, 23.
According to information presented to the court, on January 21, 2019, Johnson engaged in a text message conversation with a prospective employer relating to scheduling a job interview. Several hours after the scheduling-related texts, Johnson texted three photographs to the potential employer, which illustrated two different firearms. In one photo, Johnson was holding the firearm and pointing it at the camera. Law enforcement officials executed a search warrant at Johnson’s residence on January 29, 2019, and recovered an Intratec model AB10 9 millimeter pistol and 9 millimeter ammunition. Johnson was prohibited from possessing the firearm and ammunition due to prior convictions for robbery and assault, crimes punishable by more than one year in prison. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from lawfully possessing a firearm or ammunition.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Findlay Township Police Department conducted the investigation that led to the successful prosecution of Johnson. The case was brought as part of Project Safe Neighborhoods. 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.
Federal Jury Convicts Two Brothers under Project EJECT of Drug Trafficking and Possessing Stolen Firearms in HattiesburgRead the Press Release
Hattiesburg, Miss. – Brothers Victor Smith, 43, and Michael Smith, 42, of Hattiesburg, were found guilty on Wednesday of possession of marijuana with the intent to distribute and possession of stolen firearms, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. The jury returned the verdict following a two-day trial before Senior U.S. District Judge Keith Starrett in Hattiesburg.
On August 25, 2016, Hattiesburg Police officers, supported by other law enforcement agencies, responded to a call for service at the Southern Village Apartments in Forrest County. Upon arrival, officers were directed to the Smith brothers’ apartment, where they found over half a pound of marijuana bagged for distribution, scales, and five firearms, two of which were stolen. On April 3, 2019, Victor Smith and Michael Smith were charged in a federal criminal indictment.
Victor and Michael Smith will be sentenced by Judge Starrett on June 10, 2020, beginning at 10:00 a.m. in Hattiesburg.
The case was investigated by the Hattiesburg Police Department, Bureau of Alcohol Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Andrew W. Eichner and Erin Chalk.
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.
Federal Jury Convicts Lumberton Man for Drug and Gun CrimesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that in federal court this week, JAMES CALVIN BREEDEN, a 33-year-old resident of Lumberton, was convicted following a one-day trial before Senior United States District Judge James Earl Britt. The jury found BREEDEN guilty of Possession with the Intent to Distribute 28 Grams or more of Cocaine Base (Crack) and a Quantity of Cocaine, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm by a Convicted Felon. Sentencing is scheduled for the June 1, 2020 term of court in Raleigh. BREEDEN faces at least ten years’ and up to life imprisonment.
The evidence at trial showed that BREEDEN, who is a convicted felon, was the passenger of a vehicle stopped by officers with the Robeson County Sheriff’s Office as they were attempting to serve an outstanding warrant. When officer’s approached the vehicle, they observed BREEDEN in possession of a crown royal bag that contained approximately 80 grams of crack cocaine and 38 grams of cocaine. He also possessed loaded handgun inside of his waistband.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted investigation of this case. Assistant United States Attorneys Chad Rhoades and Erin Blondel handled the prosecution of this case for the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Grand Jury Indicts Nigerian Nationals for Multiple Fraud Schemes against Dickinson, ND CompanyRead the Press Release
BISMARCK – U.S. Attorney Drew H. Wrigley announced that Federal Court documents were unsealed on February 10, 2020, revealing that the federal grand jury has indicted 1) Kolawole Bamidele Akande, a/k/a Patric Elis Ferguson 2) Olawale Sule a/k/a Brand King Mohamed; and 3) Babatope Joseph Aderinoye a/k/a Wilson Tidwell on charges of 1) Conspiracy to Commit Bank Fraud; 2) Conspiracy to Commit Wire Fraud; 3) Conspiracy to Commit Mail Fraud; 4) Conspiracy to Commit Money Laundering; 5) Mail Fraud; and 6) Money Laundering.
The Indictment alleges that the defendants participated in a complicated computer intrusion scheme targeting a Dickinson, ND company which was allegedly defrauded out of approximately $348,000.00. The Indictment alleges that the defendants fraudulently obtained checks from the Dickinson company through the mail and deposited these checks in fraudulently obtained accounts in financial institutions located within the State of Texas. Once the funds from these checks were available for withdrawal and transfer, the defendants is alleged to have withdrawn and transferred the funds to conceal and disguise their nature, location, source, and ownership.
"While the alleged financial scheme in this case is complex," said U.S. Attorney Drew Wrigley, "our investigative team has pieced this string of fraudulent acts together and we look forward to presenting our evidence in court."
Olawale Sule a/k/a Brand King Mohamed’s arraignment was held before United States Magistrate Judge Clare R. Hochhalter, on February 28, 2020, in Bismarck, North Dakota. Olawale Sule was previously arrested on December 18, 2019, under a separate indictment for money laundering. He had an initial appearance, identity hearing, and detention hearing, in Federal Court in the Northern District of Texas. The Court there ordered that the defendant be detained and that the United States Marshalls Service transport Olawale Sule to the District of North Dakota.
This case is being investigated by the Federal Bureau of Investigation; United States Postal Inspection Service; Homeland Security Investigations, and the United States Attorney’s Office in the Northern District and Eastern District of Texas, and is being prosecuted by Assistant United States Attorney Jonathan O’Konek
The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.