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27 February 2020
Aurora Man Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An Aurora, Missouri, man has been sentenced in federal court for receiving and distributing child pornography.
Michael Steven Copfer, 38, was sentenced by U.S. District Judge Brian C. Wimes on Monday, Feb. 24, to 12 years and seven months in federal prison without parole. The court also sentenced Copfer to 15 years of supervised release following incarceration. Copfer will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Sept. 9, 2019, Copfer pleaded guilty to one count of receiving and distributing child pornography. Copfer was identified by law enforcement after Google discovered files containing images of child pornography stored in Copfer’s Google Photos account.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Apex Entrepreneur Pleads Guilty to Defrauding Water Remediation Investors and to Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, CHARLES GILBERT MURPHY, 63, of Apex, NC, pleaded guilty to Counts 10 and 13 of an indictment charging him with, among other things, Wire Fraud and Aggravated Identity Theft.
The Indictment alleges that MURPHY was subject to collection efforts by the United States Government arising from a prior federal conviction for Wire Fraud in June of 1999 in this same District. As such, the Indictment alleges that MURPHY caused family members to open bank accounts for him in the name of various companies he controlled, referred to in the Indictment as the “Murphy Entities.” These entities were Toxic Solutions LLC (“Toxic Solutions”), Biological Marine Remediation LLC (“Bio-Remediation”), Bio Marine Remediation LLC (“Bio-Marine”), Bio Separation Systems, LLC (“Bio-Separation”), On-Site Solutions LLC (“On-Site Solutions”), and On-Site Technologies LLC (“On-Site Technologies”).
The Indictment further alleges that MURPHY used the Murphy Entities to obtain money from individuals and entities under false and fraudulent pretenses. According to the Indictment, MURPHY represented that the Murphy Entities performed environmental cleanup activities, such as water remediation. MURPHY purported to offer to various entrepreneurial victims the opportunity to purchase exclusive rights to perform environmental cleanup services in a given geographic area. MURPHY also purported to sell the equipment necessary to perform the cleanup services. In furtherance of the scheme, MURPHY frequently presented false documents to the entrepreneurs to make it appear that funds had been allocated for services to be performed in the geographic area where the victims had purchased the exclusive rights. In reality, the documents justifying the exclusive rights purchase were falsified, and MURPHY took the money without providing all of the equipment purchased.
In furtherance of the scheme, the Indictment further alleges that MURPHY utilized the identities of others to make it appear that his companies were good investments by creating false documents and correspondence in the names of the victims.
Mr. Higdon stated, “This case arose from our Office’s continuing efforts to obtain restitution for victims of the defendant’s prior federal conviction. In the process of doing that, we learned that the defendant was at it again, deceiving a new set of victims with the same old tricks. The defendant will now have to answer to his victims, and to the court, for his actions.”
The maximum punishment for Wire Fraud (18 U.S.C. § 1343) is up to 20 years in prison. The maximum punishment for Aggravated Identity Theft (18 U.S.C. § 1028A) is not less than, nor more than 2 years in prison consecutive to any other term of imprisonment imposed. The sentencing is tentatively scheduled for June, 2020 term of court.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
168 Dogs Rescued in Georgia Pursuant to Federal Search Warrants Related to Suspected Violations of the Animal Welfare ActRead the Press Release
MACON, Ga. — Eleven federal search warrants were executed Wednesday morning related to suspected violations of the federal Animal Welfare Act (AWA) and drug trafficking, resulting in the rescue of 168 canines, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The United States Department of Agriculture, Office of the Inspector General (USDA-OIG), the Drug Enforcement Administration (DEA) and the U.S. Attorney’s Office for the Middle District of Georgia are leading the investigation, with the assistance of the following agencies:
- U.S. Marshals Service
- The Department of Justice, Environment and Natural Resources Division (ENRD)
- Georgia Bureau of Investigation (GBI)
- Bibb County Sheriff’s Office
- Crawford County Sheriff’s Office
- Houston County Sheriff’s Office
- Merriweather County Sheriff’s Office
- Peach County Sheriff’s Office
- Taylor County Sheriff’s Office
- Webster County Sheriff’s Office
- Byron Police Department
- Fort Valley Police Department
This is an ongoing investigation and any individuals who may be arrested in this investigation are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of competent jurisdiction.
Eleven federal search warrants were executed at the following locations on Wednesday, February 26, 2020:
- 323 Ruby Street, Macon, Bibb County, Georgia
- 16 Spruce Lane, Roberta, Crawford County, Georgia
- 99 Calloway Drive, Roberta, Crawford County, Georgia
- 107 Stanton Circle, Warner Robins, Houston County, Georgia
- 407 Vienna Street, Fort Valley, Peach County, Georgia
- 718 Green Street, Apt. A101, Fort Valley, Peach County, Georgia
- 223 Buckrun Road, Talbotton, Talbot County, Georgia
- 293 Chapman Road, Shiloh, Talbot County, Georgia
- 838 Jeff Hendricks Road, Woodland, Talbot County, Georgia
- 65 Turner Estates Road, Reynolds, Taylor County, Georgia
- 369 Millard Kennedy Road, Preston, Webster County, Georgia
The 168 rescued animals are now in the care of the U.S. Marshals Service. Many of the animals are malnourished with scarring, and some are severely injured and require surgery or other medical intervention. For example, one animal, a female pit bull, was discovered chained with broken legs, malnourished and overbred. An emergency veterinarian was on hand to administer care to the pit bull. At least two dogs had emergency surgery to treat their injuries. For the safety of the animals, the location of their care and housing will not be made public.
“I am incredibly grateful to the law enforcement teams who came together from all over the region to rescue these abused animals as we continue to investigate this alleged dog fighting ring,” said U.S. Attorney Charlie Peeler. “Illegal dog fighting is a barbaric activity. Those who choose to violate the Animal Welfare Act face serious consequences, including federal prison time, where there is no parole.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Animal fighting is an investigative priority for USDA-OIG, and together with the Department of Justice, we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“These search warrants are part of a multi-month, multi-agency investigation into allegations of illegal dog fighting and drug trafficking,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the dedication between all law enforcement agencies involved, the citizens of Middle Georgia are safer and innocent animals have been rescued.”
The federal Animal Welfare Act (AWA) defines “animal fighting venture” as “any event, in or affecting interstate or foreign commerce, that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment.” It is illegal to sponsor or exhibit an animal in, attend or cause an individual who has not attained the age of 16 to attend an animal fighting venture. It is illegal to possess, train, sell, buy, transport, deliver or receive an animal for purposes of having the animal participate in an animal fighting venture. It is unlawful to use an instrumentality of interstate commerce for commercial speech for purposes of advertising an animal for use in an animal fighting venture, or for promoting or furthering an animal fighting venture. All of these offenses are felonies punishable by up to five years in prison.
USDA Animal Care, a unit within the Animal and Plant Health Inspection Service, administers the AWA. This federal law establishes requirements concerning the transportation, sale and handling of certain animals and includes restrictions on the importation of live dogs for purposes of resale, prohibitions on animal fighting ventures and provisions intended to prevent the theft of personal pets. Regulations established under the AWA set standards for the humane care and treatment for certain animals that are exhibited to the public, sold for use as pets, used in research or transported commercially. Facilities using regulated animals for regulated purposes must provide their animals with adequate housing, sanitation, nutrition, water and veterinary care, and they must protect their animals from extreme weather and temperatures. The regulations also establish specific requirements that must be met prior to the importation of dogs for resale purposes.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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.
Assistant U.S. Attorney Julia Bowen Mize is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at https://www.justice.gov/history.
26 February 2020
Washington woman sentenced for role in meth trafficking ringRead the Press Release
BILLINGS—A Washington woman who admitted trafficking methamphetamine as part of a large drug distribution ring was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Sadie Allen Hackett, 29, of Glenwood, WA, pleaded guilty in October to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the prosecution said Hackett was an active member of a meth trafficking ring led by Joshua Clause. Clause pleaded guilty to drug trafficking and firearms crimes and was sentenced last year to 15 years in prison. In July 2018, a Billings Police officer made a traffic stop in which Hackett was a front seat passenger. The officer became suspicious and eventually deployed a K-9 dog, which indicated for the presence of narcotics. Law enforcement impounded the vehicle and got a warrant to search the car.
Law enforcement found a half-pound of meth and a large amount of cash in the front glove box. Hackett’s purse was found and it contained more meth. The driver said he saw Hackett place items in the glove box, including the money.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the FBI, Billings Police Department, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Montana Highway Patrol.
This case is part of Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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U.S. Attorney’s Office credited with over $169 million collected in civil and criminal actions in fiscal year 2019Read the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced today that the Northern District of Georgia was directly and jointly responsible for over $169 million in criminal and civil collections for Fiscal Year 2019. Included in this amount were funds paid directly to the Northern District of Georgia of $23,963,457.52. Of this amount, $9,510,094.82 was collected in criminal actions and $14,453,362.70 was collected in civil actions. Additionally, the Northern District of Georgia was credited with recovery of an additional $145,287,404.95 for joint investigations worked with other U.S. Attorney’s Offices and components of the Department of Justice.
“Collecting restitution owed to victims of crime and recovering funds stolen from the federal government are among our highest priorities,” said U.S. Attorney Byung J. “BJay” Pak. “We understand that deterring crime and fraudulent conduct requires that we create disincentives through aggressive collection efforts. Here in the Northern District of Georgia, crime doesn’t pay but persons who violate our laws do.”
The largest collection of over $108 million in criminal penalties and civil settlements was the result of a joint investigation by criminal prosecutors and civil attorneys from Northern District of Georgia, along with attorneys at the Department of Justice and the Northern District of Ohio, and law enforcement partners at the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigations and other federal agencies. Working together, these federal agencies held accountable Avanir Pharmaceuticals, a California-based company. Avanir was alleged to have violated the Anti-Kickback Statute and the False Claims Act by, among other things, paying doctors to become high prescribers of Nuedexta, a drug treating pseudobulbar affect (PBA), to beneficiaries of federal healthcare programs. The government alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. Under a deferred prosecution agreement, Avanir agreed to pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. It also agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta.
In another affirmative civil enforcement action, the Northern District of Georgia recovered $750,000 for violations of the False Claims Act from DeKalb County and Worksource DeKalb. This settlement resolved allegations that they failed to ensure federal grant funds were used to benefit those who qualified for the Department of Labor's On-the-Job Training (OJT) Programs and not used to subsidize the wages of County employees who were ineligible for the OJT Programs.
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are also responsible for enforcing and collecting criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Highlights among the thousands of criminal collections on behalf of victims recovered in 2019 are a full pre-sentence payment of approximately $191,088 in the case of U.S. v. Morgan, an insurance fraud case, and a collection of $116,249 in U.S. v. Howle, a tax fraud case.
Additionally, the Northern District of Georgia, working with partner agencies and divisions, collected $10,603,801.00 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Los Angeles Pharmacy Owners Sentenced for Multimillion-Dollar Scheme that Billed Medicare, Cigna $11.8 Million in Fraudulent Medication ClaimsRead the Press Release
Two owners and operators of a Los Angeles pharmacy were both sentenced today to 144 months in prison for their roles in a health care fraud scheme where Medicare and CIGNA were billed more than $11.8 million in fraudulent claims for prescription drugs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office, Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office, Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office and Special Agent in Charge Kris Lyle of the California Department of Justice made the announcement.
Aleksandr Suris, 51, of Sherman Oaks, California, was sentenced to 144 months in prison by U.S. District Judge S. James Otero of the Central District of California, who also ordered Suris to pay restitution of $11,826,444.65 to Medicare and $17,109.39 to CIGNA. The court ordered Suris to make an immediate partial restitution payment of $500,000. Maxim Sverdlov, 45, also of Sherman Oaks, was sentenced to 144 months in prison by Judge Otero, who ordered him to pay $11,826,444.65 in restitution to Medicare. The court ordered Sverdlov to make an immediate partial restitution payment of $500,000.
On Aug. 20, 2019, after an 11-day trial, a jury found Suris guilty of two counts of conspiracy to commit health care fraud, six counts of health care fraud, and one count of conspiracy to commit money laundering. The jury found Sverdlov guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
Suris and Sverdlov were the co-owners and co-operators of Royal Care Pharmacy (Royal Care) in Hollywood. According to the evidence presented at trial, from 2012 to 2015, Suris and Sverdlov fraudulently billed Medicare and CIGNA for prescription medications that Royal Care did not actually purchase or dispense to beneficiaries. In order to hide the fraud, Suris and Sverdlov obtained fake drug invoices from co-conspirators to make it appear as if Royal Care had purchased the medicines for which it had billed Medicare and CIGNA, when it actually had not. Suris and Sverdlov also used these fake invoices to launder the proceeds of the fraud through a co-conspirator. In total, Suris and Sverdlov submitted more than $11.8 million in bogus claims to Medicare for prescription drugs that they never purchased or dispensed to patients.
This case was investigated by HHS-OIG, the FBI, IRS-CI and the California Department of Justice, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Trial Attorney Robyn N. Pullio and Assistant Chief Daniel J. Griffin of the Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Twenty-Four People in Milwaukee Charged with Heroin and Cocaine Trafficking and Firearms OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today federal charges against 24 defendants associated with a violent drug trafficking organization in Milwaukee known as the Buffum Meinecke Boys.
The defendants charged in this law enforcement action all reside in Milwaukee and are:
Name
Age
Ramone LOCKE
33
Jesus PUENTES
33
Michael SMITH
37
Victor GONZALEZ
34
Garrell HUGHES
33
Lamar JOHNSON
32
Rico SMITH
29
Michael WILSON
34
Amir LOCKE
34
Joey VAZQUEZ
34
Coury AGEE
33
Louis BATES
31
Tyrone BRYANT
28
Dennis KING
35
Derrell TAYLOR
31
Luis LORENZO
34
Nicholas WELDON
29
Deon BUTTS
38
Maureno BRIGGS
29
Dawan TURNER
18
Jasmaine LINTON
38
Alfonso GREER
20
Juiquin PINKARD
35
Charles MCCOLLUM
32
A federal grand jury returned an indictment charging fifteen of the defendants with conspiring to distribute 1 kilogram or more of heroin, at least five kilograms or more of powder cocaine, at least 280 grams or more of “crack” cocaine, and greater than 50 kilograms of marijuana. If convicted of this conspiracy charge, those 15 defendants face a mandatory minimum term of 10 years in prison. One of the co-conspirators, Victor Gonzalez, was also charged with unlawful possession of 37 firearms. Nine other defendants were charged with distribution of heroin or cocaine or illegally possessing firearms.
On February 25, 2020, federal, state, and local law enforcement officers arrested 17 of these defendants in a coordinated enforcement operation. Throughout the course of the investigation, officers recovered over 900 grams of heroin, over 150 grams of a mixture containing fentanyl, 1.5 kilograms of cocaine, 20 kilograms of marijuana, almost $300,000 in U.S. currency, and 53 firearms.
“Every Milwaukee resident deserves to live in a secure neighborhood, free from groups who wield guns and pedal dangerous drugs,” said United States Attorney Krueger. “This joint law enforcement action is another example of our unwavering commitment to fight gun violence and drug trafficking. I commend the excellent law enforcement cooperation, led by the FBI, to build this case.”
FBI Special Agent in Charge Robert E. Hughes stated “The FBI, with its partners, stand committed to reducing the negative impact of gangs responsible for gun violence, illegal drugs and homicides. Working together, we are dedicated to making Milwaukee a safe place to live, work, and enjoy all our city has to offer.”
“The Milwaukee law enforcement agencies continue to show our resolve by working together to investigate and prosecute violent drug organizations like the Buffum Meinecke Boys. The residents of Milwaukee deserve to live in neighborhoods free of drug related violence, and this investigation is another step to provide that freedom,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
The defendants were charged based on joint investigation by law enforcement officers from the Federal Bureau of Investigation’s Southeastern Wisconsin Gang Task Force, the Milwaukee Police Department (MPD), the Milwaukee County Sheriff’s Office, the IRS-Criminal Investigations, and the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Kevin C. Knight.
Multiple law enforcement agencies participated in the arrests and execution of search warrants yesterday, including Federal Bureau of Investigation, FBI’s Southeastern Wisconsin Regional Gang Task Force, Milwaukee Police Department, Milwaukee County Sheriff’s Office, Racine Police Department, Racine County Sheriff’s Office, Mt. Pleasant Police Department, FBI’s Central Wisconsin Narcotics Task Force, Marathon County Sheriff’s Office, Lincoln County Sheriff’s Office, Wausau Police Department, Wisconsin Division of Criminal Investigation, FBI’s South Central Wisconsin Regional Gang Task Force, Madison Police Department, Dane County Sheriff’s Office, FBI Chicago Field Office, FBI Minneapolis Field Office, FBI’s Critical Incident Response Group – HRT
Drug Enforcement Administration, Internal Revenue Service, United States Marshal’s Service, St. Francis Police Department, Cudahy Police Department, West Allis Police Department, Wisconsin Division of Criminal Investigation, Bureau of Alcohol Tobacco, Firearms, and Explosives, Department of Homeland Security, North Central HIDTA
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The public is cautioned that an indictment or criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Tomato Plant Corporation and Local Restaurant Owner Plead Guilty in O’Neill Harboring CaseRead the Press Release
United States Attorney Joe Kelly announced that O’Neill Ventures, Inc., a tomato greenhouse and packing plant located in O’Neill, Nebraska, entered a felony plea of guilty in federal court today to conspiracy to harbor undocumented aliens. The plea was entered before United States Magistrate Judge Cheryl R. Zwart. The conspiracy to harbor aliens relates to the earlier prosecution of Juan Pablo Sanchez-Delgado. The plea agreement requires O’Neill Ventures to pay a fine of $400,000 at sentencing. In addition, the corporation must allow Homeland Security Investigations to conduct reviews and inspections of their labor practices and hiring processes during a probationary term as outlined in the agreement. The maximum fine authorized by law for this offense is $500,000.
The corporation admits through the plea agreement to being in a conspiracy to employ and harbor undocumented aliens with Juan Pablo Sanchez-Delgado since at least 2014. At Sanchez-Delgado’s sentencing hearing on November 27, 2019, Chief United States District Judge John M. Gerrard described Sanchez-Delgado’s financial exploitation of the workers at the tomato plant and other agricultural work sites as one of the “most egregious financial crimes,” that the judge had ever seen and proceeded to sentence Sanchez-Delgado to the maximum imprisonment time authorized by law, 120 months in federal prison. Restitution for those workers will be determined by Chief Judge Gerrard at a future date in time.
On August 8, 2018, agents and officers with Immigration and Customs Enforcement executed a search warrant at O’Neill Ventures, Inc., and found that undocumented alien workers comprised approximately 70% of the company’s work force on that date.
United States Attorney Joe Kelly further announced that John Charles Good, car salesman and owner of the La Herradura restaurant in O’Neill, entered a plea of guilty to aiding and abetting Sanchez-Delgado in his pattern and practice of unlawfully employing undocumented aliens, and particularly for employing Magdalena Castro-Benitez, Sanchez-Delgado’s wife, at the La Herradura restaurant. Castro-Benitez, previously deported from the United States to Mexico, returned to the United States illegally before joining her husband’s conspiracy to harbor illegal aliens. The charge carries a possible penalty of up to six months of incarceration, a fine of $3,000 per alien, and a term of supervised release of up to one year that could follow any term of incarceration.
Sentencing for O’Neill Ventures, Inc. and Good is set for May 29, 2020 before Chief Judge Gerrard.
This case was investigated by Immigration and Customs Enforcement and Homeland Security Investigations.
Three Bloomington Men Indicted on Charges of Child Sex Trafficking, Child PornographyRead the Press Release
PEORIA, Ill. – Trial dates in April 2020 have been scheduled for three Bloomington area men who have been indicted in separate cases on charges of child sex trafficking. A federal grand jury returned the indictments on Feb. 19, 2020, and the cases were unsealed as each made their respective initial appearances in federal court.
Teon Williams, 20, of the 800 block of E. Washington St., Bloomington, Ill., is charged with three counts of child sex trafficking for offenses from 2017 through 2019. The case was unsealed on Feb. 25, when Williams was arraigned in federal court. Williams waived detention hearing and was ordered to remain in the custody of the U.S. Marshals Service.
Jahquan Howard, 26, of the 1700 block of Linda Lane, Normal, Ill., is charged with one count of child sex trafficking and one count of production of child pornography for offenses from 2018 through 2019. Howard was also arraigned on Feb. 25. Howard remains in law enforcement custody pending a detention hearing scheduled on Feb. 27.
Andrew Wheeler, 24, of the 500 block of Bradley Lane, Normal, Ill., is charged with three counts of child sex trafficking and one count of child sex trafficking conspiracy for offenses alleged to have occurred in 2019. Wheeler, arraigned on Feb. 21, waived detention hearing and was ordered to remain in the custody of the U.S. Marshals Service.
The indictments are the result of a long-term investigation by the Bloomington Police Department's Criminal Investigation Division into child sex trafficking in central Illinois. As the investigation progressed, assistance was provided by the Federal Bureau of Investigation.
Assistant U.S. Attorney Adam W. Ghrist is representing the government in the prosecution in coordination with the McLean County State’s Attorney’s Office.
If convicted, the statutory penalty for each count of child sex trafficking is 10 years to life in prison; for child pornography, the penalty is 15 to 30 years in prison; and, for child sex trafficking conspiracy, the penalty is five years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The Department of Justice Creates Section Dedicated to Denaturalization CasesRead the Press Release
The Department of Justice today announced the creation of a section dedicated to investigating and litigating revocation of naturalization. The Denaturalization Section will join the existing sections within the Civil Division’s Office of Immigration Litigation—the District Court Section and the Appellate Section. This move underscores the Department’s commitment to bring justice to terrorists, war criminals, sex offenders, and other fraudsters who illegally obtained naturalization.
While the Office of Immigration Litigation already has achieved great success in the denaturalization cases it has brought, winning 95 percent of the time, the growing number of referrals anticipated from law enforcement agencies motivated the creation of a standalone section dedicated to this important work.
“When a terrorist or sex offender becomes a U.S. citizen under false pretenses, it is an affront to our system—and it is especially offensive to those who fall victim to these criminals,” said Assistant Attorney General Jody Hunt. “The Denaturalization Section will further the Department’s efforts to pursue those who unlawfully obtained citizenship status and ensure that they are held accountable for their fraudulent conduct.”
Denaturalization cases require the government to show that a defendant’s naturalization was “illegally procured” or “procured by concealment of a material fact or by willful misrepresentation . . . .” 8 U.S.C. § 1451. Civil denaturalization cases have no statute of limitations, and the Department has successfully denaturalized numerous categories of individuals who have illegally obtained citizenship, including terrorists and other national security threats, war criminals, human rights violators, sex offenders, and other fraudsters.
National Security/Terrorism
- U.S. v. al Dahab, No. 15-cv-5414 (D.D.C.). Successful civil denaturalization of individual convicted of terrorism offenses in Egypt who admitted recruiting for al Qaeda within the United States and running a communications hub in California for the Egyptian Islamic Jihad terrorist organization. The defendant was denaturalized while in Egypt, stripped of his passport, and prevented from returning to the United States.
- U.S. v. Kariye, No. 15-cv-1343 (D. Or.). Successful civil denaturalization of individual who received military training in a jihadist training camp in Afghanistan; coordinated with Osama bin Laden and other known terrorist leaders; and was associated with terrorist organizations including Makhtab Al-Khidamat, a U.S. government-designated terrorist organization and pre-cursor to al Qaeda. The Office of Immigration Litigation coordinated a settlement that facilitated the defendant’s self-deportation to Somaliland despite his presence on No Fly List.
- U.S. v. Hamed, No. 2:18-cv-0424 (W.D. Mo.). Successful civil denaturalization of an individual convicted of conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions and of obstructing internal revenue laws with respect to tax-exempt charities. In furtherance of those crimes, the defendant regularly authorized and transferred tax-exempt funds from a non-profit organization’s accounts in the United States to an account in Jordan controlled by a Specially Designated Global Terrorist.
War Crimes & Human Rights Violators
- U.S. v. Dzeko, No. 18-cv-759 (D.D.C.). Successful civil denaturalization of an individual who was convicted in Bosnia of executing eight unarmed civilians and POWs during the Balkans conflict. Defendant was denaturalized while incarcerated in a Bosnian prison, and thereby prevented from returning to the United States upon his release.
- U.S. v. Yetisen, No. 18-cv-570 (D. Or.). Successful civil denaturalization of an individual who pled guilty in Bosnia of executing six unarmed civilians and POWs during the Balkans conflict.
Sex Offenders
- U.S. v. Omopariola (N.D. Tex.). Successful civil denaturalization of an individual engaged in sexual contact with a 7-year-old family member.
- U.S. v. Lopez, No. 18-cv-00527 (D. Md.). Successful civil denaturalization of an individual who sexually abused a minor victim for multiple years.
- U.S. v. Arizmendi, No. 4:15-cv-454 (S.D. Tex.). Successful civil denaturalization of an individual convicted of multiple sex offenses, including as to students. The defendant was denaturalized while incarcerated in a Mexican prison related to a sex offense, and thereby prevented from returning to the United States upon his release.
Fraudsters & Other Criminals
- U.S. v. Mondino, No. 18-cv-21840 (S.D. Fla.). Successful civil denaturalization of an individual convicted of conspiring to defraud the U.S. Export-Import Bank of more than $24 million, resulting in more than $12 million in unrecovered losses. Because of the denaturalization proceedings, the defendant self-deported.
- U.S. v. Warsame cases, Nos. 17-cv-5023, -5024, -5025, -5027 (D. Minn.). Successful civil denaturalizations of four individuals who fraudulently claimed to be a family to gain admission to the United States through the Diversity Immigrant Visa Program.
Texas man gets nearly 17 years after kilogram of meth found on bus passenger’s thighsRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old former resident of San Antonio has been ordered to federal prison following his conviction for conspiring to possess with the intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge Nelva Gonzales Ramos convicted Lawrence James Espree Oct. 11, 2019, following a one-day trial.
Today, Judge Ramos ordered Espree to serve a total of 200 months in federal prison to be immediately followed by five years of supervised release.
During the trial, the judge heard Espree had hired a drug courier to transport drugs from the Rio Grande Valley to San Antonio. On Feb. 21, 2017, that courier was a passenger on a commercial bus as it approached the Border Patrol checkpoint near Falfurrias. There, authorities found approximately a kilogram of meth strapped to his thighs.
After the courier was arrested, Espree fled the area and evaded arrest until 2019.
During trial, he identified Espree as the person who recruited him to transport the narcotics.
Evidence also established that Espree purchased the courier’s bus ticket using his girlfriend’s email account and his mother’s credit card.
Judge Ramos also heard Espree was leading a narcotics trafficking operation in which he directed another courier. In that incident, authorities also seized an additional kilogram of narcotics from the bus passenger at the Falfurrias checkpoint in January 2017.
Evidence presented during trial also demonstrated that Espree used numerous firearms and body armor to facilitate his narcotics trafficking.
The defense attempted to convince the court he was not involved. Judge Ramos did not believe those claims and convicted him as charged.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Both bus passengers previously pleaded guilty to their roles in the offenses.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and U.S. Marshals Service. Assistant U.S. Attorney Robert D. Thorpe Jr. and Jeremy Carl Fugate prosecuted the case.
Tennessee Podiatrist Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
A Tennessee podiatrist pleaded guilty today for his role in unlawfully distributing controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
Timothy Abbott, D.P.M., 62, of Nashville, Tennessee, pleaded guilty to seven counts of unlawful distribution of controlled substances before Chief U.S. District Judge Waverly D. Crenshaw Jr. of the Middle District of Tennessee. Sentencing has been scheduled for Aug. 31, 2020, before Chief Judge Crenshaw.
As part of his guilty plea, Abbott admitted that, on 44 occasions between April 2013 and February 2019, he knowingly distributed to four of his patients hydrocodone, a Schedule II controlled substance, without a legitimate medical purpose and outside the usual course of professional practice.
The DEA and TBI investigated the case with the assistance of the Metropolitan Nashville Police Department. Trial Attorneys William M. Grady and Alexandra Michael of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Stanly County Man Sentenced to 75 Months in Prison for Firearm and Drug ChargesRead the Press Release
WINSTON-SALEM, N.C. – A Stanly County man was sentenced to federal prison Tuesday, for firearm and drug offenses, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
EARL CHRISTOPHER TERRY, JR., 34,also known as “E” and “E-Magic,” pleaded guilty on October 15, 2019, to one count of possession of ammunition by a previously convicted felon, one count of possession with intent to distribute heroin, and one count of possession with intent to distribute fentanyl. On February 26, 2020, TERRY was sentenced by United States District Judge Loretta C. Biggs to 75 months of imprisonment, followed by three years of supervised release.
On April 18, 2019, the Stanly County Sherriff’s Office executed a search warrant at TERRY’s Badin, N.C., residence, finding $9,212 in cash and several dozen rounds of ammunition. In the woods across from the residence, deputies found a Smith & Wesson model M&P 40, .40-caliber handgun, next to bag containing heroin and fentanyl. Analysis later showed that TERRY’s DNA was on the handgun. Because TERRY had a prior felony conviction in Stanly County for three counts of the felonious Indecent Liberties with a Child, he could not possess a firearm or ammunition under federal law. TERRY was arrested on state charges but released on bond. On May 7, 2019, the Stanly County Sheriff’s Office received additional information about TERRY and narcotics, and again executed a search warrant on his residence, finding additional heroin and fentanyl.
Judge Biggs also ordered forfeiture of the handgun and ammunition found in the woods across from TERRY’s residence.
This case was investigated by the Drug Enforcement Administration, Stanly County Sheriff's Office, Richland County (South Carolina) Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives, with the assistance of the District Attorney's Office for Stanly and Montgomery Counties. The case was prosecuted by Assistant United States Attorneys Eleanor T. Morales and Craig M. Principe for the Middle District of North Carolina.
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Springfield Sex Offender Sentenced for Failing to RegisterRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for his fourth conviction of failing to register as a sex offender.
Terry Lee Holmes, 66, was sentenced by U.S. Chief District Judge Beth Phillips to two years and nine months in federal prison without parole. Holmes will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Oct. 10, 2019, Holmes pleaded guilty to failing to register as a sex offender. According to court documents, Holmes has failed to register and follow the registration laws since his release from state prison in Illinois, where he served 20 years for aggravated criminal sexual assault. For more than 14 years, he has disregarded his registration requirements. Holmes failed to register even after he was repeatedly convicted for failing to register as a sex offender.
Holmes was located by a deputy marshal, who learned he was living near an elementary school playground. He has never registered in the state of Missouri as a sex offender.
Holmes has prior felony convictions for the aggravated sexual assaults of two victims, a 3-year-old and a 7-year-old child, and three prior felony convictions (in Illinois and Arkansas) for failing to register as a sex offender.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the U.S. Marshals Service.
Springdale Man Sentenced to 20 Years in Federal Prison for Bank RobberyRead the Press Release
Fort Smith, AR – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Jaime Leonel Reinosa-Salguero, of Springdale, Arkansas, was sentenced to 240 months in federal prison on one count of Bank Robbery and one count of Use of a Firearm During and in Relation to a Crime of Violence. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Reinosa-Salguero entered the Arvest Bank in Alma at approximately 10:38 a.m. on May 29, 2019. He approached the teller and demanded money while brandishing a firearm. The teller placed a large amount of currency into Reinosa-Salguero’s backpack. Reinosa-Salguero then fired one round from his handgun directly over the teller’s head and the bullet impacted the north wall near the ceiling. Reinosa-Salguero then fled the bank. A short time later, Reinosa-Salguero was located traveling northbound on Interstate 49. When Arkansas State Police initiated a traffic stop and ordered him to exit the vehicle, Reinosa-Salguero refused and fled, reaching speeds in excess of 100 m.p.h. During the pursuit, Reinosa-Salguero fired multiple rounds at the trooper who returned fire and struck Reinosa-Salguero. At approximately 11:12 a.m., the trooper performed a pursuit intervention technique causing Reinosa-Salguero’s vehicle to crash near the 55 mile marker. A subsequent search of the vehicle and surrounding area revealed the firearm used in the robbery, the money taken from the bank, and 15 rounds of ammunition. Arvest Bank’s deposits were insured by the Federal Deposit Insurance Corporation.
Reinosa-Salguero was indicted by a federal grand jury in June of 2019 and entered a guilty plea in October of 2019.
The investigation was conducted by the Alma Police Department, Arkansas State Police and FBI. Assistant United States Attorney David Harris is prosecuting the case for the United States.
Singaporean Shipping Company Convicted for Concealing Illegal Discharges of Oily WaterRead the Press Release
Unix Line PTE Ltd., a Singapore-based shipping company, pleaded guilty in federal court today to a violation of the Act to Prevent Pollution from Ships.
Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney David L. Anderson of the Northern District of California and U.S. Coast Guard Investigative Service Special Agent in Charge Kelly S. Hoyle made the announcement.
In pleading guilty, Unix Line admitted that its crew members onboard the Zao Galaxy, a 16,408 gross-ton, ocean-going motor tanker, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water without the use of required pollution-prevention equipment, during the vessel’s voyage from the Philippines to Richmond, California.
According to the plea agreement, Unix Line is the operator of the Zao Galaxy, which set sail from the Philippines on Jan. 21, 2019, heading toward Richmond, California, carrying a cargo of palm oil. On Feb. 11, 2019, the Zao Galaxy arrived in Richmond, where it underwent a U.S. Coast Guard inspection and examination. Examiners discovered that during the voyage, a Unix Line-affiliated ship officer directed crew members to discharge oily bilge water overboard, using a configuration of drums, flexible pipes, and flanges to bypass the vessel’s oil water separator. The discharges were knowingly not recorded in the Zao Galaxy’s oil record book.
Unix Line’s sentencing hearing is scheduled for March 20 before U.S. District Court Judge Jon S. Tigar in Oakland, California.
Senior Trial Attorney Kenneth Nelson of the Environmental Crimes Section, with the assistance of Kay Konopaske and Katie Turner, Assistant U.S. Attorney Katherine Lloyd-Lovett and Special Assistant U.S. Attorney Andrew Briggs of the Northern District of California are prosecuting the case. The prosecution is the result of a year-long investigation by the Coast Guard Investigative Service and the Investigations Division of Coast Guard Sector San Francisco.
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.
Singapore Shipping Company Pleads Guilty to Concealing Discharge of Oily WasteRead the Press Release
OAKLAND – Unix Line PTE, Ltd., a Singapore-based shipping company, pleaded guilty in federal court today to a violation of the Act to Prevent Pollution from Ships. The plea was received by the Honorable Jon S. Tigar, U.S. District Judge.
United States Attorney David L. Anderson, Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division, and U.S. Coast Guard Investigative Service Special Agent in Charge Kelly S. Hoyle made the announcement.
In pleading guilty, Unix Line admitted that its crew members onboard the Zao Galaxy, a 16,408 gross-ton, ocean-going motor tanker, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water without the use of required pollution-prevention equipment, during the vessel’s voyage from the Philippines to Richmond, Calif.
According to the plea agreement, Unix Line is the operator of the Zao Galaxy, which set sail from the Philippines on January 21, 2019, heading toward Richmond, carrying a cargo of palm oil. On February 11, 2019, the Zao Galaxy arrived in Richmond, where it underwent a U.S. Coast Guard inspection and examination. Examiners discovered that during the voyage, a Unix Line-affiliated ship officer directed crew members to discharge oily bilge water overboard, using a configuration of drums, flexible pipes, and flanges to bypass the vessel’s oil water separator. The discharges were knowingly not recorded in the Zao Galaxy’s oil record book.
On October 24, 2019, a federal grand jury indicted Unix Line. On February 19, 2020, Unix Line was charged by superseding information with one count of violating the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a). Under the plea agreement, Unix Line pled guilty to violating the Act to Prevent Pollution from Ships.
Judge Tigar scheduled Unix Line’s sentencing hearing for March 20, 2020, at 9:30 a.m. in Oakland. The maximum statutory penalty for a violation of the Act to Prevent Pollution from Ships is six years’ imprisonment and a fine of twice the gross gain or loss derived from the offense. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by Assistant United States Attorney Katherine Lloyd-Lovett and Special Assistant United States Attorney Andrew Briggs of the Northern District of California and Senior Trial Attorney Kenneth Nelson of the Environmental Crimes Section, with the assistance of Kay Konopaske and Katie Turner. The prosecution is the result of a year-long investigation by the Coast Guard Investigative Service and the Investigations Division of Coast Guard Sector San Francisco.
Rawlins Doctor Pleads Guilty to Unlawful Distribution of Prescription Pain PillsRead the Press Release
Dr. DAVID RAY CESKO, 66, of Rawlins, Wyoming pleaded guilty on February 26, 2020 in U.S. District Court in Cheyenne to multiple charges that, as a physician, he unlawfully distributed controlled substances, primarily opiates and benzodiazepines, to his patients.
Cesko was charged by a Wyoming federal grand jury in March of 2019 in a thirty count indictment following a lengthy, collaborative investigation by the Wyoming Division of Criminal Investigation and the Drug Enforcement Administration. The charges alleged that Cesko had, without a legitimate medical purpose and outside the course of professional practice, unlawfully prescribed pain killers and other controlled substances to multiple patients. At the hearing today, pursuant to a plea agreement, Cesko pleaded guilty to twenty of the original charges, including charges that he unlawfully prescribed codeine cough syrup and opiates to minor, female patients, and, on several occasions, that he unlawfully prescribed opiates to a pregnant minor.
Cesko is scheduled to be sentenced on May 13th in U.S. District Court. He faces the possibility of decades in prison. As part of the plea agreement Cesko also agreed to forever relinquish his medical license and prescription authority. Judge Scott W. Skavdahl presided over the change of plea proceedings and Assistant United States Attorney Stuart S. Healy III represents the government.
Post Falls Women Sentenced to Ten Years for Murder for Hire PlotRead the Press Release
COEUR D'ALENE - Katrina (Katie) Lynn Danforth, 32, of Post Falls, Idaho, was sentenced in U.S. District Court to 120 months in federal prison for use of interstate commerce facilities in commission of murder for hire, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Danforth to pay a $1,000 fine and serve three years of supervised release following her prison sentence. Danforth pleaded guilty to the charge on August 6, 2019.
According to court records, Danforth admitted that in October 2018 she agreed to pay a “hitman” to murder someone. During October and November 2018, she met in person with the hitman, called him on the phone and mailed him a thank you card with a $2,500 cash down payment. The hitman was actually an undercover police officer and Danforth was arrested. At the sentencing hearing, the United States played a recording of Danforth’s conversation with the hitman. Danforth could be heard describing how she wanted to make sure the man was dead and his body was found. Danforth has remained in custody since her arrest in December 2018.
This case was investigated by the North Idaho Violent Crime Task Force (NIVCTF). The NIVCTF is a FBI sponsored task force comprised of law enforcement from the Kootenai County Sheriff’s Office, Post Falls Police Department, Idaho Department of Correction, and Homeland Security Investigations.
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Physician Charged for Alleged Role in an over $120 Million Health Care Fraud and Money Laundering Conspiracy Involving Sponsorship of Ultimate Fighting Championship Hall of FamersRead the Press Release
A physician who from 2016 to 2017 was the top prescriber of oxycodone 30 mg in Michigan was charged in a superseding indictment unsealed today with an over $120 million health care fraud and money laundering scheme that involved the alleged medically unnecessary distribution of over 2.2 million dosage units of controlled substances and the administration of medically unnecessary injections that resulted in patient harm.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Francisco Patino, 65, of Wayne County, Michigan, was charged in the superseding indictment with one count of conspiracy to commit health care fraud and wire fraud, one count of conspiracy to commit money laundering and one count of money laundering. These charges are in addition to the two counts of health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks that was charged in the initial indictment. The case is pending before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Trial has been scheduled to begin on April 7 before Judge Hood.
The superseding indictment alleges the laundering of the proceeds of the health care fraud scheme to falsely portray the defendant as a legitimate doctor through the publication of a diet book and plan described as the “next Atkins,” paid-for appearances on a nationally syndicated television show, and the sponsorship of boxers, cagefighters and prominent Ultimate Fighting Championship (UFC) world champions and hall of famers.
The superseding indictment alleges that Patino owned, controlled and operated numerous pain clinics and laboratories in Michigan – including Global Quality Inc., RenAMI, FDRS and Patino Laboratories – and was the top prescriber of Oxycodone 30 mg in Michigan from 2016 to 2017. As alleged in the superseding indictment, from 2008 until his arrest in 2018, Patino induced patients to come to his clinics by offering unnecessary prescriptions for addictive opioids, of which he ultimately prescribed over 2.2 million dosage units of medically unnecessary controlled substances, including fentanyl, oxycodone and oxymorphone. Patino prescribed these opioids to Medicare beneficiaries, some of whom were addicted to narcotics. Some of these opioids were resold on the street, the superseding indictment alleges. Fentanyl is one of the most potent opioids available for human use.
According the superseding indictment, Patino forced patients to submit to unnecessary and sometimes painful back injections and other procedures in exchange for the opioid prescriptions as part of a scheme to defraud Medicare of over $120 million. The superseding indictment alleges that Patino persisted with these unlawful practices even after Medicare informed him that the injections violated Medicare’s rules and after Patino entered into a consent order with the State of Michigan that his prescription of opioids “constitute[d] a violation of the public health code.”
Patino also ordered unnecessary urine drug testing in exchange for illegal kickbacks, the superseding indictment alleges. Patino was aware that his ownership structure and kickbacks were a violation of law and authored emails acknowledging that such ownership constituted a “violation of the Stark and Anti-Kickback laws” and attempted to conceal and disguise the ownership structure and scheme in order to keep himself “out of Federal Prison & having all our assets seized to pay a 15 million dollar fine.”
The superseding indictment alleges that Patino conspired to commit money laundering and committed money laundering in connection with the creation and promotion of the “Patino Diet” plan, which Patino described to others as the “next Atkins diet.” In order to conceal and disguise his illegal health care fraud scheme, Patino allegedly paid for the authorship and publication of a book touting the diet plan, entitled “The Age of Globesity,” and paid hundreds of thousands of dollars in order to promote the diet plan and appear as the exclusive medical expert on a nationally syndicated television show.
In addition to concealing the scheme by paying money to falsely portray himself as a media personality and a legitimate physician, the superseding indictment alleges, that Patino laundered the healthcare fraud and kickback money by entering into sham contracts or employment relationships to pay others on his behalf to sponsor boxers, mixed martial artists and Ultimate Fighting Championship (UFC) combatants, including UFC world champions and hall of famers. The superseding indictment alleges that Patino also withdrew the proceeds derived from the conspiracy to live an extravagant lifestyle and spend money on luxury clothes, real estate and international travel, including multiple trips to the Cayman Islands.
The charges against Patino are related to a broader investigation into the Tri-County Network of pain clinics in Michigan and Ohio, which involves over $300 million in alleged Medicare fraud and the alleged distribution of over 6.6 million dosage units of controlled substances. In connection with the investigation, 22 defendants, including 12 physicians, have previously pleaded guilty or been found guilty at trial.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG. Assistant Chief Jacob Foster and Trial Attorney Thomas Tynan of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Philadelphia Felon Living in Butler, PA Pleads Guilty to Drug and Firearms ViolationsRead the Press Release
PITTSBURGH, PA - A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Brandon Morris, 34, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in June 2016, Pennsylvania State Police arranged for a confidential informant (CI) to buy crack and heroin from Mark Carter. Carter arranged for Brandon Morris to meet the CI. In exchange for $2,000 in pre-recorded funds, Morris gave the CI three bricks of heroin and one-half-of-an-ounce of crack.
On June 28, 2016, troopers executed a search warrant on Morris’ residence located on E. Brady St. in Butler, PA. Carter was also staying at the residence. Troopers recovered a plastic bag containing 39.57g of raw heroin, a plastic bag containing 119.36g of crack cocaine, individual packets of heroin, $7,612.00, including pre-recorded funds, a 12-gauge shotgun and ammunition (3 shells), and various items of drug paraphernalia. Due to a prior felony conviction, Morris is prohibited from possessing a firearm or ammunition.
Mark Carter pleaded guilty on Feb. 6, 2020.
Judge Bissoon scheduled sentencing for July 15, 2020. The law provides for a maximum sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court continued Morris’s bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the prosecution of Morris.
Pennsylvania man admits to firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Lynn, of Uniontown, Pennsylvania, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Lynn, age 41, pled guilty to one count of “Possession of Stolen Firearm.” Flynn, a convicted felon, admitted to possessing a 12 gauge shotgun, a .308 caliber rifle, and a 7mm caliber rifle, all believed to be stolen, in October 2018 in Monongalia County.Lynn faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monongalia County Sheriff’s Office, and the Pennsylvania State Police investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
U.S. Magistrate Judge Michael John Aloi presided.
Pascagoula Man Sentenced to over 2 Years in Federal Prison for Possession of a Firearm by an Illegal Drug UserRead the Press Release
Gulfport, Miss. – Brian Keith Blalock, Jr., 25, of Pascagoula, was sentenced today by U.S. District Judge Sul Ozerden to 30 months in federal prison, followed by 3 years of supervised release, for possession of a firearm by an unlawful user of a controlled substance, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Blalock also was ordered to pay a $2,500 fine.
On March 20, 2019, the Pascagoula Police Department responded to a call about a drive-by shooting. Upon arriving at the scene, police officers spoke with residents who reported seeing a black car with dark colored windows and a missing front bumper leave the scene immediately after multiple shots were fired. A witness also reported that a man had been seen throwing something over a nearby fence. Police investigated and found a rifle, wrapped in clothing, at the location indicated by the witness. Police later determined that the description given of the man seen throwing the rifle matched the description of Blalock.
Officers searched the surrounding area and located the vehicle. When officers initiated a traffic stop, Blalock exited the vehicle and fled on foot. Officers secured the car for evidence and alerted other officers who were able to locate Blalock. Officers found sixteen 7.62 caliber ammunition shell casings in the car Blalock had been driving. It also was documented that Blalock was a habitual user of marijuana.
As part of an ATF investigation, the casings found in the car Blalock was driving, were identified as Tula 7.62 caliber ammunition casings, the same caliber as fired from the recovered rifle. Further examination by the ATF Forensic Science Laboratory in Atlanta showed the casings had been fired in the rifle recovered at the scene.
Blalock pled guilty before Judge Ozerden on November 4, 2019, to possession of a firearm by an unlawful user of a controlled substance.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and by the Pascagoula Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Owner of Bend-Based Microbrewery Equipment Company Indicted on Fraud ChargesRead the Press Release
EUGENE, Ore.—A federal grand jury in Eugene returned an indictment last week charging a Bend, Oregon resident with using a microbrewery equipment company to defraud customers of more than $800,000.
The seven-count indictment alleges that Matthew Mulder, 48, used his company, WeCan Brewing Systems, LLC, to solicit payments from 23 customers located throughout the U.S. Mulder’s company supplied custom-built microbrew systems, keg washers, and other industrial brewing products. Many of his customers were microbrewery owners.
According to court documents, beginning in at least 2017, Mulder began soliciting and accepting orders for microbrewery equipment he knew his company was not capable of fulfilling. When asked by various customers for order updates, Mulder falsely stated that the orders were on schedule or near completion.
Mulder would entice customers to make payments by sending emails and text messages that included photos of nearly-completed orders prepared for other customers. Mulder solicited and accepted new customer contracts requiring large down payments that he would in-turn use for personal expenses, to pay off loans, and to pay suppliers.
Mulder made his initial appearance in federal court in Eugene today. He was released pending a jury trial scheduled for April 29, 2020 before U.S. District Court Judge Michael J. McShane.
Mulder faces four counts of wire fraud and three counts of mail fraud. Wire and mail fraud are both punishable by up to 20 years in prison, a $250,000 fine, and three years’ supervised release.
This case was investigated by the FBI and the Bend Police Department and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Newport Woman Admits to Receipt of Child PornographyRead the Press Release
PROVIDENCE – A Newport woman who admitted to soliciting and receiving materials involving the sexual exploitation of minors faces between five to twenty years in federal prison when she is sentenced in June, having pleaded guilty in U.S. District Court in Providence today to receipt of child pornography.
Karissa A. Cave, 23, admitted to the court that on December 7, 2016, while communicating with another person on Facebook messenger, she requested that the person send her a video depicting an adult engaged in sexually explicit conduct with a female toddler she knew that person possessed.
Cave admitted after receiving the video she asked, “Is there any more?” In return the person sent her an image of prepubescent girls and boys engaged in sexually explicit conduct.
Cave’s guilty plea before U.S. District Court Chief Judge John J. McConnell, Jr., to receipt of child pornography is announced by United States Attorney Aaron L. Weisman, Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Cave is scheduled to be sentenced on June 16, 2020. At sentencing Cave faces statutory penalties of between five and twenty years imprisonment; five years to lifetime supervised release; and a mandatory $5,000 special assessment imposed as required by the Justice for Victims Trafficking Act in child sexual exploitation cases where the court makes a finding that the defendant is not indigent.
United States Attorney Aaron Weisman thanks the Woonsocket Police Department for their assistance in the investigation of this matter.
This Project Safe Childhood case is being prosecuted by Assistant United States Attorney Denise M. Barton.
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New York Man Pleads Guilty in Scheme that Used False ID Cards to Negotiate Fake Checks at East Coast CasinosRead the Press Release
PITTSBURGH, PA – A resident of New York has pleaded guilty in federal court to a charge of identity theft, United States Attorney Scott W. Brady announced today.
Anthony L. Powell, 35, of Rochester, NY, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between January 2015 and June 2015, Powell used false identification cards to negotiate counterfeit checks totaling approximately $24,000 at casinos along the East Coast of the United States, including the Rivers Casino in Pittsburgh.
Judge Fischer scheduled the sentencing for June 25, 2020 at 11:00 a.m. The law provides for a maximum sentence of 15 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Agents from Homeland Security Investigations and the Pennsylvania State Police conducted the investigation that led to the prosecution of Anthony Powell.
New Castle Man Sentenced to 15 Years in Federal Prison for Second Child Pornography ConvictionRead the Press Release
Wilmington, Del. – A New Castle, Delaware man was sentenced today to 15 years in prison for possessing and attempting to receive child pornography, announced David C. Weiss, U.S. Attorney for the District of Delaware.
On October 24, 2019, a federal jury for the District of Delaware found Thomas Noble, 71, guilty of one count of attempting to receive child pornography and one count of possessing child pornography after three days of trial. On February 26, 2020, Chief U.S. District Judge Leonard P. Stark sentenced Noble to serve 15 years in prison followed by 10 years of supervised release.
According to publicly filed documents and statements made in open court, while executing a search warrant at Noble’s home, law enforcement caught Noble actively downloading child pornography using peer-to-peer file sharing software. Later forensic analysis of Noble’s computer revealed 54 videos of child pornography and more than 900 hundred images of child pornography, including files depicting the sexual exploitation of prepubescent girls. Noble had previously been convicted in the State of Delaware on child pornography charges.
U.S. Attorney David C. Weiss stated as follows, "Our office is dedicated to protecting the most vulnerable among us – our children – from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace. Defendant’s time of preying on our children has come to an end."
“The 15-year sentence imposed on Noble sends a clear message that there are serious consequences for those possessing sexually explicit images of children,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “HSI is dedicated to identifying these predators, and bring them to justice.”
“As a New Castle, Delaware man was sentenced today to 15 years in prison, everyone should know the protection of our children are a top priority for Delaware Law Enforcement. Our laser focus is to defend, guard and shield our most vulnerable for a safer Delaware. We are beholden to the prosecutors and the investigators who work tirelessly to protect our precious children from predators who seek to exploit them,” said Sergeant Richard Bratz, spokesperson for the Delaware State Police.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Assistant U.S. Attorneys Graham L. Robinson and Alexander P. Ibrahim of the District of Delaware prosecuted the case.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
Nashville Podiatrist Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – February 26, 2020 - A Nashville, Tennessee podiatrist pleaded guilty today for his role in unlawfully distributing controlled substances.
U.S. Attorney Don Cochran of the Middle District of Tennessee, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
Timothy Abbott, D.P.M., 62, of Nashville, Tennessee, pleaded guilty to seven counts of unlawful distribution of controlled substances before Chief U.S. District Judge Waverly D. Crenshaw Jr. of the Middle District of Tennessee. Sentencing has been scheduled for August 21, 2020, before Chief Judge Crenshaw.
As part of his guilty plea, Abbott admitted that, on 44 occasions between April 2013 and February 2019, he knowingly distributed to four of his patients hydrocodone, a Schedule II controlled substance, without a legitimate medical purpose and outside the usual course of professional practice.
The DEA and TBI investigated the case with the assistance of the Metropolitan Nashville Police Department. Trial Attorneys William M. Grady and Alexandra Michael of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Nashville Man Facing Federal Carjacking and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – February 26, 2020 – Devan Javon Thompson, 31, of Madison, Tennessee, was charged yesterday in a criminal complaint, with carjacking; brandishing a firearm during and in relation to a crime of violence; and being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the complaint, on November 20, 2019, a woman and her 11 year-old child were shopping at Kroger on Old Hickory Boulevard in Hermitage, Tennessee when she became suspicious of a man, later identified as Thompson, following her in the store. Thompson subsequently approached the woman and asked her what kind of car she had. After refusing to tell him, Thompson displayed a handgun in the pocket of his hooded sweatshirt and demanded the keys to her vehicle. The child was holding the keys and gave them to Thompson. Thompson then held the gun to the child’s back and pushed him out of the store and into the parking lot. He demanded the woman start her car and drive over the median while he dragged the child through the parking lot. Thompson then entered the car and drove away.
An off-duty Metropolitan Nashville Police officer, who was in the Kroger parking lot and witnessed the incident, followed Thompson and notified the police department. Thompson continued to flee and crashed the vehicle in a ravine near Lebanon Pike and Munn Road, where he was taken into custody after resisting and injuring an officer and a police K-9.
If convicted, Thompson faces up to 15 years in prison on the carjacking offense; up to 10 years in prison on the gun possession charge; plus an additional mandatory minimum of seven years for brandishing the firearm.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rachel M. Stephens is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Multiple Illegal Aliens Sentenced, Plead Guilty to Illegally Reentering the United States After RemovalRead the Press Release
Gulfport, Miss. – Two illegal aliens were sentenced and one pled guilty in federal court today to illegally reentering the United States after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Immigration & Customs Enforcement, Homeland Security Investigations in New Orleans, and Gregory Bovino, Chief Patrol Agent of the Border Patrol, New Orleans Sector.
Yesenia Flores-Ortega, 27, an illegal alien from Mexico, was sentenced by Senior U.S. District Judge Louis Guirola Jr. to 9 months in federal prison and one year of supervised release for unlawful reentry by an alien after removal. She also faces Department of Homeland Security removal proceedings. Flores-Ortega was arrested on September 12, 2019 following a traffic stop in Harrison County. She pled guilty on November 26, 2019 before Judge Guirola.
Teodulio Ramos Ramos, 30, an illegal alien from Guatemala, was sentenced by U.S. District Judge Sul Ozerden, to “time served” (3 months and 16 days) and one year of supervised release for unlawful reentry by an alien after removal. He also faces Department of Homeland Security removal proceedings. Ramos Ramos was arrested on November 11, 2019 following a traffic stop in Harrison County. He pled guilty on December 17, 2019 before Judge Ozerden.
Elias Delgado-Ortiz, 33, an illegal alien from Mexico, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr., to unlawful return of an alien after removal. He will be sentenced by Judge Guirola on May 27, 2020, at 10:00 a.m. Delgado-Ortiz was arrested following a traffic stop in Jackson County on December 4, 2019.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for these cases.
Mortgage Short Sale Negotiator Sentenced for Defrauding Mortgage LendersRead the Press Release
BOSTON – The principal and co-founder of a North Andover mortgage short sale assistance company was sentenced yesterday in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.
Jaime L. Mulvihill, 40, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to six months in prison, two years of supervised release, and ordered to pay restitution in the amount of $478,458 and forfeiture of $239,229. In November 2019, Mulvihill pleaded guilty to conspiracy to commit wire fraud.
Mulvihill and her co-defendant Gabriel T. Tavarez founded and operated Loss Mitigation Services, LLC. The charges arise out of the defendants’ scheme to steal undisclosed and improper fees from mortgage lenders in connection with short sales of homes. A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.
Loss Mitigation Services, purportedly acting on behalf of underwater homeowners, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.
From 2014 to 2017, Mulvihill and, allegedly, Tavarez, directly or through their employees, falsely claimed to homeowners, real estate agents and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive those fees. When the short sales closed, at the instruction of Mulvihill, or others working with her and Tavarez, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Mulvihill or Tavarez filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. Mulvihill and, allegedly, Tavarez, fabricated the transaction documents, or caused them to be fabricated, in order to justify the additional fees and conceal that they were being paid to Loss Mitigation Services.
The defendants defrauded the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the U.S. Department of Housing and Urban Development.
Tavarez has pleaded not guilty and is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Brian M. LaMacchia of Lelling’s Office are prosecuting the case.
Maryland Man Pleads Guilty to CarjackingRead the Press Release
Greenbelt, Maryland – Dante Tyler-El, age 54, of Landover, Maryland, pleaded guilty carjacking and to using, carrying and brandishing a firearm during and in relation to a crime of violence. Tyler-El entered his guilty plea yesterday.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; and Chief Peter Newsham of the Metropolitan Police Department.
According to his guilty plea, on June 5, 2019, Tyler-El perpetrated three armed robberies, as well as the carjacking to which he is pleading guilty. As detailed in his plea agreement, at 5:30 a.m. Tyler-El assaulted a victim who was pumping gas at a gas station in Prince Frederick, Maryland, putting a gun in the victim’s face, stealing the victim’s wallets and credit cards, and then placing the victim in handcuffs.
Tyler-El admitted that at 5:00 p.m., he approached a victim who was sitting in her vehicle in a parking lot in Gaithersburg, Maryland, waiting for her daughter to finish a dance class. Tyler-El, dressed in a neon construction vest and hard hat, approached the victim holding a Walther PK380 pistol, which he put to the victim’s head and demanded money. Tyler-El then handcuffed the victim and forced her into the back seat of the vehicle, where he restrained her while he rummaged through the vehicle. When the victim screamed, Tyler-El struck her with the pistol, causing severe bruising on the victim’s face. After finding the victim’s credit cards, Tyler-El got into the driver’s seat and drove away with the victim still in the back seat. After driving for some distance, Tyler-El got out of the vehicle and fled.
According to his plea agreement, at 7:00 p.m. Tyler-El, brandishing the pistol and wearing the same neon construction vest and hard hat, robbed a victim outside his apartment building in Hyattsville, Maryland, stealing $150 in cash. Approximately one hour later, Tyler-El robbed three pedestrians at gunpoint as they walked along Eastern Avenue in Washington, D.C., just across the Maryland border. Tyler-El admitted that during the robbery he fired the pistol into the air as a show of force to compel the victims’ compliance. Tyler-El stole credit cards and $6 in cash from the victims.
Tyler-El was stopped by law enforcement early the next morning after crossing the Bay Bridge into Queen Anne’s County, Maryland. A search of the vehicle recover some of the victims’ credit cards, as well as the loaded Walther PK 380 used during the robberies and carjacking.
Tyler-El and the government have agreed that, if the Court accepts the plea agreement, Tyler-El will be sentenced to 150 months in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 12, 2020 at 2:30 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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; 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.
United States Attorney Robert K. Hur commended the FBI, the Montgomery County Police Department, the Prince George’s County Police Department, the Calvert County Sheriff’s Office, and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who is prosecuting the case.
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Marion County man admits to fleeing from law enforcementRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oneil Wayne South, of Fairmont, West Virginia, has admitted to fleeing from law enforcement, U.S. Attorney Bill Powell announced.
South, age 45, pled guilty to one count of “Reckless Flight from a Law Enforcement Officer.” South admitted to fleeing from law enforcement after being asked to stop when on the property of the FBI Criminal Justice Information Services Division in Harrison County in March 2019.
South faces up to five years incarceration and a fine of up to $2,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the Fairmont Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.Man from Tucson, Arizona convicted of federal alien transporting charge in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – A federal jury in Las Cruces, New Mexico returned a guilty verdict yesterday against Francisco Armando Martinez, 39, of Tucson, Arizona on one count of transporting illegal aliens.
The evidence at trial showed that a group of illegal aliens from Mexico paid smugglers to help them cross the border into the United States illegally. They gathered at a guest house in Agua Prieta, Sonora, Mexico. They paid for backpacks containing food and water for the trip and took a taxi to the border where a guide led them into the United States through the desert on foot. Martinez picked up the illegal aliens on the side of the road to transport them. He told them to wear their seat belts and be quiet. Martinez later drove to a gas station where border patrol agents questioned him about the people inside his vehicle and discovered Martinez was transporting illegal aliens.
The jury acquitted Martinez of a charge of conspiracy to transport aliens. He is currently out of custody awaiting sentencing. Martinez faces up to 5 years in prison.
U.S. Border Patrol investigated this case with assistance from Homeland Security Investigations. Assistant U.S. Attorneys Luis Martinez and Taylor Hartstein of the Las Cruces Branch Office are prosecuting the case.
Man Pleads Guilty to Traveling to U.K. to Sexually Abuse MinorRead the Press Release
NORFOLK, Va. – A Franklin man pleaded guilty today to charges related to his travel to the United Kingdom in May 2019 to sexually abuse a minor victim.
According to court documents, in May 2018, Joshua R. Hatfield, 23, began an online relationship with Jane Doe, a 14 year-old living in the United Kingdom. After the two discussed engaging in sexual intercourse, Hatfield, traveled to the minor victim’s home in May 2019 and stayed there for several days. Despite knowing the victim was a minor, Hatfield engaged in sexual acts with her. After returning home, Hatfield informed the minor victim that he had contracted a sexually transmitted infection, although he had in fact traveled to the United Kingdom already knowing that he had this untreated infection.
Hatfield pleaded guilty to travel with intent to engage in illicit sexual conduct. He faces a maximum penalty of 30 years in prison when sentenced on July 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorneys Elizabeth M. Yusi and E. Rebecca Gantt are prosecuting 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. 2:19-cr-186.
Madisonville Pharmacist Charged with Conspiracy to Commit Health Care FraudRead the Press Release
NEW ORLEANS - The United States Attorney’s Office, Eastern District of Louisiana announced that DARREN M. MARTIN, age 44, a resident of Madisonville, Louisiana, was charged on February 20, 2020 with one count of conspiracy to commit health care fraud.
According to the Indictment, MARTIN was a licensed pharmacist in the State of Louisiana who owned Willow Pharmacy, Inc. (“Willow), which was located in Madisonville, Louisiana. Between 2012 and 2015, Willow operated as a closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including Blue Cross & Blue Shield (“Blue Cross”). In 2012, MARTIN, on behalf of Willow, executed a provider agreement with CVS Caremark (“CVS”), a pharmacy benefit manager for Blue Cross. Under the terms of the agreement, Willow agreed to collect copayments from Blue Cross-covered patients and further agreed that it would not waive a copayment unless authorized by CVS to do so.
According to the Indictment, in or around June 2014, CVS notified Willow that Willow was the subject of an audit. At around the same time, to conceal the fact that Willow had not collected copayments for the claims at issue in the audit, Willow, through MARTIN, contracted with Joseph L. Wiley, II (“Wiley”) of Monroe, Louisiana and his company Affordable Medication Solutions, LLC (“AMS”). The purpose of the contract was to make it appear that Willow collected the copayments at issue in the CVS audit through AMS, a purported secondary payer. Between 2014 and 2015, as it conducted its audit, CVS requested information from Willow substantiating that AMS collected copayments on behalf of Willow for $567,710.39 worth of claims at issue in the CVS audit.
In actuality, according to the Indictment, AMS never collected copayments for Willow. Had CVS known that Willow had not collected copayments from Blue Cross-covered patients, it would have terminated Willow’s provider agreement. To conceal the fact that Willow had not collected copayments, Wiley created false documents, including copies of backdated checks and remittance advices, for certain of the claims at issue purporting to show that AMS collected copayments for Willow and sent those documents to MARTIN. Despite knowing that AMS had not collected copayments for Willow, MARTIN caused false statements to be made to CVS indicating that AMS had collected copayments for the claims at issue in the CVS audit for Willow.
If convicted, MARTIN faces a possible maximum sentence of 10 years’ imprisonment, up to three years of supervised release, a $250,000 fine, and a mandatory $100 special assessment.
The case is being investigated by the Federal Bureau of Investigation and the Defense Criminal Investigative Service. The United States Attorney’s Office, Eastern District of Louisiana stated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution of the case is being handled by Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathryn McHugh.
MS-13 Members Plead Guilty to Violent 2018 AttackRead the Press Release
ALEXANDRIA, Va. – Two MS-13 members pleaded guilty today to their respective roles in a December 2018 shooting and stabbing that occurred in Four Mile Run Park on the border of Alexandria and Arlington.
According to court documents, Juan Francisco Rivera-Pineda, 25, and Jefferson Noe Amaya, 24, both Alexandria residents, are members of the Pinos Locos Salvatrucha (PLS) clique of MS-13, which operates in the northern Virginia area of Arlington County and Alexandria City known as Chirilagua.
On Dec. 30, 2018, Rivera-Pineda and Amaya shot and stabbed a 40-year-old victim while the victim and his two friends were in Four Mile Run Park. The victim’s nephew had been warned by PLS not to sell drugs in PLS territory without paying rent. On the night of the shooting, Rivera-Pineda, Amaya, and a third unidentified suspect confronted the victim in the park, shooting him in the throat and arm, and stabbing him in the back. The victim was transported to the hospital where he underwent surgery and survived.
Rivera-Pineda and Amaya each pleaded guilty to assault with a dangerous weapon in aid of racketeering activity and discharging a firearm during a crime of violence and face a mandatory minimum penalty of 10 years and a maximum penalty of life in prison when sentenced on April 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and M. Jay Farr, Arlington County Chief of Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Morris Parker and Natasha Smalky are prosecuting the case.
This matter was investigated by the FBI Washington Field Office’s Safe Streets/HIDTA Task Force – Northern Virginia, which is composed of FBI Agents, along with Detectives from the Fairfax County Police, Alexandria City Police, Prince William County Police, Arlington County Police, Alexandria Police Department, Alexandria Sheriff’s Office, Vienna Police Department, Herndon Police Department, along with Agents from the Department of Homeland Security Enforcement Removal Operations, the USMS, and the Northern Virginia Gang Task Force. The task force is charged with investigating, disrupting and dismantling the most egregious and violent gangs operating in Northern Virginia to include MS-13.
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-225.
Leader of Coles County Meth Trafficking Network Sentenced to 30 Years in PrisonRead the Press Release
URBANA, Ill. – A Mattoon, Ill., man, Travis Tuggle, 38, has been sentenced to 30 years in federal prison for his leadership role in a network that trafficked highly pure ‘ice’ methamphetamine in East Central Illinois. On Feb. 18, 2020, U.S. District Judge James E. Shadid sentenced Tuggle to the government’s recommended sentence, 360 months, to be followed by 10 years of supervised release upon completion of the prison term.
According to court documents and court findings, by conservative estimates, Tuggle, who pleaded guilty on Sept. 20, 2019, is responsible for the distribution of more than 45 pounds of highly pure ‘ice’ methamphetamine, valued at more than $1 million dollars at the time, to drug users in Coles County from late 2013 through early 2016. In 2013, when Tuggle began introducing ‘ice’ to this rural market, the meth available to most rural East Central Illinois users was typically impure locally manufactured methamphetamine.
Tuggle initiated his drug trafficking conspiracy while incarcerated in the Illinois Department of Corrections in 2012. Once released on parole, in April 2013, he began recruiting accomplices, several of whom had a history with manufacturing methamphetamine and knew local users in and around Coles County. Tuggle imported the methamphetamine to his Mattoon residence via drug couriers from Chicago. The couriers transported the methamphetamine from Chicago to Mattoon in spare tires and trap compartments, among other concealment methods.
While his conspirators dealt methamphetamine at the wholesale and retail levels, Tuggle handled the money and dealt with his supplier and couriers. During the operation, Tuggle hired a woman to assist him in counting money from the drug sales. On at least 50 separate occasions, she counted between $6000 and $18,000 for Tuggle.
While Tuggle was the conspiracy’s central figure, several others assisted him in distributing the methamphetamine in Coles County. Those individuals, including Joshua Vaultonburg, Ryan Gaines, Casey Hughes, Brian Fuller, Anthony Gordon, Douglas Hatten, Timothy Whitmore, Clifford Colbert, and Juan Manuel Meza-Nunez, were charged and convicted in the U.S. District Court for the Central District of Illinois for their roles in assisting Tuggle in this drug trafficking conspiracy.
These cases are the result of a Department of Justice task force investigation dubbed “Operation Frozen Tundra,” conducted by the Federal Bureau of Investigation; the East Central Illinois Task Force; the Drug Enforcement Administration; the Illinois State Police; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Coles County Sheriff’s Office; the Mattoon Police Department; and the Charleston Police Department. Assistant U.S. Attorneys Bryan Freres and Paul Morris represented the government in the case prosecutions.
The Organized Crime Drug Enforcement Task Force (OCDETF) is a Department of Justice program that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Last of Four Defendants in Conspiracy Trafficking Methamphetamine Sentenced to 15 Years on PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge today imposed a 15-year sentence on the last of four defendants in a North Alabama conspiracy to distribute methamphetamine, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge Madeline H. Haikala sentenced, Marcus Leo Kyle to 180 months in prison for his role in a North Alabama drug conspiracy. Kyle pled guilty in April 2019 to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine between January 2016 and February 2018. Kyle also pled guilty to possession with the intent to distribute 50 grams or more of methamphetamine in March 2018 and to possessing a Taurus 709 Slim 9mm semi-automatic pistol in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
“This defendant organized and delivered large amounts of methamphetamine into the Northern District of Alabama and now he will spend the next 15 years in prison,” Town said. “Thanks to the work by the DEA, ATF and other law enforcement partners, we have dismantled yet another drug conspiracy, closing the pipeline of deadly drugs into our communities and sending four drug traffickers to prison.”
“Just like so many other drug dealers, Kyle will spend the next 15 years in federal prison,” Morris said. DEA, ATF and the United States Attorney’s Office is committed to the relentless pursuit of those who destroy our communities and ruin lives. Highly addictive methamphetamine is flooding into Alabama at historic levels. We will not stop in our combined efforts to identify, investigate and put drug dealers in federal prison.
“ATF’s Crime Gun Intelligence partnerships effective in removing the criminal element that endangers our communities,” Watson said.
In January, Judge Haikala sentenced Melvin “Froggy” Rolin, the leader of the North Alabama drug conspiracy to 24 years and 7 months in prison and Barry Williams to 12 ½ years in prison.
In December 2019, Judge Haikala sentenced Britney Michelle Black to 78 months in prison for possession with the intent to distribute 50 grams or more of methamphetamine in March 2018. Black pled guilty to the charge last year.
The DEA and ATF investigated the case, along with the Madison County Sheriff’s Office, Morgan County Sheriff’s Office, and Cullman County Sherriff’s Office investigated the case, which Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted.
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.
Lasara man sent to prison on child pornography chargeRead the Press Release
BROWNSVILLE, Texas - A 37-year old South Texas man has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
Rodolfo Mireles Jr. pleaded guilty May 15, 2019.
Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve 78 months in federal prison. Mireles was further ordered to pay $30,000 in restitution to several known victims and will serve 30 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
On or about Dec. 21, 2017, authorities were conducting undercover operations of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. The investigation led them to an internet protocol address making child pornography available for sharing.
A search warrant at the residence of Mireles resulted in the seizure of various digital devices containing child pornography. A forensic analysis revealed he possessed 343 images and 1,646 videos of child pornography.
Mireles has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation
Assistant U.S. Attorneys Ana Cano and Jason Corley prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page
Lackawanna Man Pleads Guilty to Possessing Fentanyl While on Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Larry D. Brodie, Jr., 38, of Lackawanna, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Justin L. Bish, who handled the case, stated that on April 4, 2019, a Lackawanna Police undercover officer contacted the defendant to arrange for a controlled purchase of heroin. Brodie then met with and sold the undercover officer approximately $100 of suspected heroin and $40 worth of crack cocaine.
At the time of his arrest, the defendant was on supervised release for a 2001 federal drug conviction.
The sentencing is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Jury convicts local man in multiple robberiesRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 30-year-old Houston man on 12 counts related to the robbery or attempted robbery of six local banks, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for two hours before convicting Eric Beverly following a one and a half day trial. He was convicted of five counts of aiding and abetting the robbery of local banks and aiding and abetting the attempted robbery of another as well as six counts of aiding and abetting the brandishing of a firearm during the commission of the robberies.
During trial, the jury heard Beverly and other members of his crew committed six armed bank robberies and had robbed three of the banks more than once. The take-over style robberies occurred between Aug. 25, 2014, and May 2, 2015. During the crimes, two or more men wore masks and entered the banks while at least one of them brandished a firearm and put people’s lives in jeopardy. While in the banks, one or more of the men demanded money from employees at gunpoint, jumped over teller counters and grabbed money from teller drawers.
Jurors also heard testimony that Beverly participated in an attempted robbery. He did not get any money due to the bank’s bullet-proof bandit barriers.
At trial, the jury saw videos and photos from each of the robberies and heard testimony from five bank tellers explaining how the armed robbers wore masks and gloves. The jury also considered phone records showing how the robbers used their cell phones to communicate with each other. A cell phone registered to Beverly was used at or near the times of several of the robberies while in the vicinity of the banks.
Two co-conspirators also identified Beverly in all of the robberies.
U.S. District Judge Lynn N. Hughes presided over the trial and set sentencing for June 1. At that time, Beverly faces up to 20 years in federal prison on each of the bank robbery and attempted bank robbery convictions. He also faces seven years for each conviction for aiding and abetting the brandishing of a firearm to run consecutively to each other and any other sentence imposed.
He has been and will remain in custody pending that hearing.
The FBI Violent Crime Task Force, Harris County Sheriff’s Office and Houston Police Department conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Jill Stotts are prosecuting the case.
Jamestown Man Pleads Guilty to Methamphetamine and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kyle Kamholtz, 33, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that the defendant was identified as a methamphetamine distributor in the Jamestown, NY, area during an investigation that began in November 2017 by the Jamestown Police Department.
The investigation included a series of controlled purchases of methamphetamine from the defendant, several vehicle and traffic stops that resulted in Kamholtz’s arrest for possession of methamphetamine and a firearm, and the execution of two search warrants at the defendant’s McKinley Avenue residence. Investigators seized a firearm, methamphetamine, scales, packaging, and other drug distribution paraphernalia.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Deviot, New York Field Division.
Sentencing is scheduled for June 4, 2020, before Judge Arcara.
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Jackson Man Arrested Locally for Murder and Released on Bond Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Cedric Taylor, 45, of Jackson, who was arrested by Jackson Police officers in March for murder and released on bond by a local judge, pled guilty yesterday before Senior U.S. District Judge David C. Bramlette III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
On March 5, 2019, officers with the Jackson Police Department executed a search warrant on Taylor’s residence in Jackson while investigating the murder of Dewan Fortner. Investigators recovered a firearm at the residence, which Taylor later confessed to knowingly possessing. While Taylor was arrested for murder in March 2019, he was thereafter released on a $125,000 bond, even though, according to the victim’s family, Taylor admitted in court that he had hidden Fortner’s body behind a building in Byram. This bond was granted despite the fact that Taylor had previous convictions for aggravated assault in Hinds County, Mississippi, and felon in possession of a firearm in the U.S. District Court for the Southern District of Mississippi.
After being release on a local bond, Taylor was arrested on federal charges on March 29, 2019, for being a felon in possession of a firearm, and has been detained by U.S. Marshals without bond ever since.
Taylor will be sentenced by Judge Bramlette on June 2, 2020. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
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.
Indictment: Honduran Citizen Attacked Immigration OfficersRead the Press Release
WICHITA, KAN. – A citizen of Honduras was indicted today on charges of unlawfully re-entering the United States and attacking immigration officers when they took him into custody in Kansas, U.S. Attorney Stephen McAllister said.
Gerson Ayala-Alfaro, 27, is charged with one count of unlawfully re-entering the United States after being deported and two counts of assaulting and injuring employees of Immigration and Customs Enforcement. The crimes are alleged to have occurred Jan. 17, 2020, in Sumner County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000 on the re-entry charge and up to 20 years and a fine up to $250,000 on the assault counts. ICE’s Enforcement and Removal Operations (ERO) investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
OTHER INDICTMENTS
Kyle Ellery, 19, Wichita, Kan., is charged with one count of transporting a minor across state lines for the purpose of engaging in sexual conduct, and one count of traveling across state lines for the purpose of engaging in sexual conduct with a minor.
The indictment alleges that on Jan. 10, 2020, Ellery traveled from Kansas to Missouri for the purpose of engaging in sex with a 14-year-old victim. Then, on Jan. 11, 2020, he transported the 14-year-old victim from Missouri to Kansas for the purpose of engaging in sex.
If convicted, he could face not less than 10 years in federal prison and a fine up to $250,000 on the transportation charge, and up to 30 years and a fine up to $250,000 on the traveling charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
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Five men in Kansas are charged in a superseding indictment with trafficking methamphetamine.
The defendants include:
Alvaro Dieguez Jr., 29, Wichita, Kan., possession with intent to distribute methamphetamine (count 2).
Keith A. Goodman, 47, Arkansas City, Kan., possession of methamphetamine (count 3).
Felipe D. Luna, 26, Wichita, Kan., possession with intent to distribute methamphetamine (counts 1 and 6), distribution of methamphetamine (count 5), unlawful possession of a firearm by a user of controlled substances (count 7), unlawful possession of a firearm in furtherance of drug trafficking (count 8), using a firearm in furtherance of drug trafficking (count 9).
Jeremy J. Snyder, 38, Dighton, Kan., possession with intent to distribute methamphetamine (count 4).
Obed A. Paz-Moreno, 23, Garden City, Kan., possession with intent to distribute methamphetamine (count 4).
Upon conviction, the crimes carry the following penalties:
Counts 1, 2, 4, 5 and 6: Not less than 10 years in federal prison and a fine up to $10 million.
Count 3: Up to a year in prison and a fine of not less than $1,000.
Count 7: Up to 10 years and a fine up to $250,000.
Counts 8 and 9: Not less than five years and a fine up to $250,000.
The FBI Safe Streets Task Force and the Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
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Marco A. Claros-Guzman, 36, Wichita, Kan., is charged with one count of possession with intent to distribute cocaine. The crime is alleged to have occurred Dec. 5, 2019, in Sedgwick County, Kan.
If convicted, he could face not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
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Vontrel Vaughn, 25, Wichita, Kan., is charged with unlawful possession of a firearm by a felon. The crime is alleged to have occurred Aug. 21, 2019, in Sedgwick County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearm and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Immigrant Sentenced to Ten Years for Conspiracy to Distribute Heroin and FentanylRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today the conclusion of the prosecution of Ivan Alexis Nunez and his co-conspirators. Ivan Alexis Nunez (age: 45) of Milwaukee, WI was sentenced by the Honorable J.P. Stadtmueller to 120 months in federal prison for leading a conspiracy to distribute heroin and fentanyl. Nunez previously pleaded guilty to conspiracy to distribute at least 1 kilogram of heroin and at least 400 grams of fentanyl. Nunez’s co-conspirators Ananda Mujica (age: 37), and Jovonte Winston (age: 30), of Milwaukee, Wisconsin, also have pleaded guilty.
Nunez and Mujica were previously convicted in 2006 of conspiracy to distribute one kilogram or more of heroin, in the Eastern District of Wisconsin in Case Number 05-CR-295. Nunez is an illegal immigrant with citizenship in the Dominican Republic who previously was removed from the United States after serving the federal prison sentence for his 2006 conviction.
“The fentanyl, heroin, and other opioids that destroy lives are being trafficked by serious criminals like Nunez and his co-conspirators,” said United States Attorney Krueger. “Despite an earlier stint in federal prison, and despite being removed from the U.S., Nunez reentered illegally and went right back to selling dangerous drugs. Now he faces years in federal prison.”
The investigation of this case was conducted by the Drug Enforcement Administration, a High Intensity Drug Trafficking Area (HIDTA) task force, which includes task force officers from the Waukesha County Sherriff’s Department and the Milwaukee Police Department, and the U.S. Department of Homeland Security. This case was prosecuted by Assistant United States Attorney Adam Ptashkin.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Huntington Woman Indicted as Part of International Nigerian Fraud Scheme for Laundering FundsRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced that a federal grand jury has indicted a Huntington woman in connection with laundering funds from an international fraud scheme that scammed money from individuals, many of whom were elderly, in several states and foreign countries.
A twelve count indictment was returned against Patricia Dudding, 68, of Huntington, charging her with conspiracy to commit money laundering, bank fraud and unlawful money transactions. The indictment alleges that Dudding acted as a money mule for a Nigerian scammer. According to the indictment, Dudding met “Lucas” online in the early spring of 2018, and although they never actually met in person, Dudding and Lucas communicated frequently by email and text messages. The indictment alleges that Dudding set up numerous bank accounts in her name at over 10 different banks and that she would use these bank accounts to wire and receive fraudulent funds. Dudding received numerous deposits in those bank accounts from more than two dozen individuals located in the United States and abroad. She, and unnamed co-conspirators, would then transfer these funds to bank accounts located in Nigeria. To further the scheme, Dudding admittedly would make false and fraudulent representations to the financial institutions to make it appear that the wire transfers were being sent for legitimate purposes.
“Egregious. This is the largest elder fraud scheme ever prosecuted in the history of West Virginia and our work continues. This case is significant on a national and international level,” said United States Attorney Mike Stuart. “Elder fraud is an important priority for Attorney General Barr and me. Elder fraud is a diabolical crime that preys on the vulnerabilities of some of the most vulnerable among us. By all outward appearances, Mrs. Dudding was just an ordinary neighbor but, instead, the indictment alleges she was what we call a “money mule” actively engaged in facilitating a money laundering scheme that left many, many victims in its wake. The stories of the victims are tragic. Our goal is to hold those responsible accountable and to do our best to make victims of these despicable crimes whole. This investigation is on-going.”
“The exploitation of both a vulnerable population as well as our financial systems is a particular evil,” said U.S. Secret Service Charleston Resident Agent in Charge Wade Fleming. “These criminals may not hide behind false identities and fraudulent accounts, and our skilled investigators will continue to pursue and bring these malicious actors before our justice system.”
Money mules play critical roles in the commission and facilitation of fraudulent schemes including elder fraud. A money mule is someone who transfers illegally acquired money on behalf of or at the direction of another party. Criminal enterprises recruit what is referred to as a “mule” to move money electronically through bank accounts, move physical currency, or assist in the movement of money through a variety of other methods. Money mules are inherently dangerous, as they add layers to the money trail from a victim to a criminal and launder money illegally to aid a criminal actor.
The indictment alleges that Dudding used over $100,000 of victim funds for her personal benefit over the course of the scheme. Dudding used those funds to pay her utility bills, satellite television service, groceries, drug store purchases, gasoline purchases, department store purchases, restaurants and took numerous cash withdrawals. Her total cash withdrawals amounted to nearly $42,000. The total loss contributed to the fraudulent scheme is $3.2 million. Over $3 million was transferred or deposited into Dudding’s accounts during the scheme and she attempted to transfer over $1.6 million to Nigeria during this period.
During the course of the investigation, warrants were issued for the seizure of nearly $1.9 million related to the alleged scheme. The indictment seeks forfeiture of those funds.
The victims in this case that have been identified are from six (6) countries including the United States, Australia, Canada, Nevis, Poland, and Sweden as well as twenty (20) states including Alaska, Arkansas, California, Connecticut, Florida, Georgia, Indiana, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Jersey, North Carolina, Pennsylvania, Ohio, Texas, and Washington.
The investigation was conducted by the United States Secret Service, the Federal Deposit Insurance Corporation (FDIC) – Office of Inspector General and the South Charleston Police Department. Assistant United States Attorney Kathleen Robeson is handling the matter.
“Elder fraud and financial fraud are complex frauds. I want to commend the excellent, detailed work of the Secret Service, the FDIC-OIG and the South Charleston Police Department, and my team, including AUSA Robeson and my remarkable investigators, Steve Rowley and Tony Hussion. This was a team effort and I’m proud of their work,” continued Stuart.
If convicted on all counts, Dudding faces up to 20 years in prison. The investigation is ongoing and could result in additional federal and state charges in the future.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2019, the department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Please Note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Holyoke Resident Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke woman pleaded guilty today in federal court in Springfield to distributing heroin.
Milagros Gaetan, 50, pleaded guilty to an indictment charging her with distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 26, 2020.
On Oct. 1, 2019, an undercover officer made a controlled drug purchase in an area known for the availability of heroin, cocaine and cocaine base on Appleton Street in Holyoke. The officer walked down the street and encountered an individual later identified at Gaetan. Gaetan asked the officer what he was looking for and he responded one bundle (10 bags) of heroin. Gaetan told the officer to wait, and then returned a short time later with one bundle of heroin, which she gave to the officer in return for cash.
On Oct. 7, 2019, the undercover officer returned to the area and purchased one bundle of heroin and cocaine from Gaetan in return for cash. On Oct. 25, 2019, Gaetan was arrested and charged by criminal complaint.
The charging statute provides for a sentence of up to 20 years in prison, at least three years of supervised release and fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Heroin and Firearm Convictions Get Franklin County Man More Than 13 Years in Federal PrisonRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced MICHAEL JERMAINE JACKSON, 35, of Spring Hope to 160 months imprisonment, followed by 5 years of supervised release.
JACKSON was named in a four-count Indictment filed on April 4, 2019, charging him with possession with intent to distribute heroin, fentanyl, cocaine base (crack), cocaine, and marijuana, possession of a firearm in furtherance of a drug trafficking crime, maintaining a dwelling for the purpose of distributing a controlled substance, and possession of a firearm by a convicted felon. On October 15, 2019, JACKSON pled guilty to that charge.
According to the investigation, in September 2018, the Franklin County Sheriff’s Office (FCSO) began an investigation into the drug trafficking activities of JACKSON. A confidential informant provided information that JACKSON was selling narcotics, including heroin, from his residence on Wiley Road in Spring Hope, North Carolina. After a series of controlled purchases of heroin and crack cocaine from JACKSON at his residence, FCSO executed a search warrant of JACKSON’S residence where they found quantities of heroin containing fentanyl, crack cocaine, cocaine, marijuana, drug distribution paraphernalia, a firearm, and ammunition. JACKSON had just been released from a state prison sentence six months prior to the execution of the search warrant.
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.
This case is also part of 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 violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this matter was conducted jointly by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Franklin County Sheriff’s Office. Assistant United States Attorney Robert J. Dodson prosecuted the 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.
Herkimer County Woman Pleads Guilty to Stealing Social Security FundsRead the Press Release
SYRACUSE, NEW YORK – TammyLynn Sterling Barthelmess, age 62, of Little Falls, New York, pled guilty today to Conspiracy to Steal Government Funds and three Counts of Bank Fraud, announced United States Attorney Grant C. Jaquith and Special Agent in Charge John Grasso, Social Security Administration-Office of the Inspector General (“SSA-OIG”), New York Field Division.
As a part of her guilty plea today, Barthelmess admitted that she concealed the death of D.W., a tenant of hers in Little Falls, New York, who died in her home in 2006. Barthelmess and others caused the body of D.W. to remain hidden until it was discovered in Little Falls on May 1, 2013, in an advanced state of decomposition inside a dog-crate behind an unoccupied house owned by the defendant. Following the death of D.W., TammyLynn Sterling Barthelmess and her daughter, Shannon Hardy Sekel, used the checking account of D.W. to steal Social Security retirement benefits that were deposited in the account each month. The defendant wrote checks from D.W.’s checking account until the payments stopped in May 2013 following the discovery of D.W.’s remains. As a further part of her guilty plea today, Barthelmess admitted to making false statements to New York State Police Investigators who interviewed her following the discovery of D.W.s body.
Shannon Hardy Sekel previously pled guilty to Conspiracy to Steal Government Money and Bank Fraud. Her sentencing is not yet scheduled.
At sentencing on June 24, 2020, in Binghamton, New York, TammyLynn Sterling Barthelmess faces a sentence of up to 5 years imprisonment and a fine of up to $250,00.00 for Conspiracy to Steal Government Money. For her convictions for bank fraud, she faces a sentence of up to 30 years in prison and a fine of up to $1,000,000.00 for each of the three counts. The defendant may also be sentenced to serve up to 5 years of supervised release following any term of imprisonment. As part of her guilty plea today, Barthelmess agreed to pay $ 110,948.00 in restitution to the Social Security Administration.
This case was investigated by the United States Social Security Administration-Office of Inspector General (“SSA-OIG”), the New York State Police, and the City of Little Falls Police Department, and is being prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Richard R. Southwick.