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14 February 2020
Man Charged with Defrauding Banks and Investors of $5 MillionRead the Press Release
A Tulsa man was charged this week in U.S. District Court with defrauding five federally insured financial institutions and two investor families of more than $5 million dollars, announced U.S. Attorney Trent Shores
William Brian Mulder, 61, is charged with 26 counts of Bank Fraud; 41 counts of Causing the Interstate Transmission of Moneys Taken by Fraud, and five counts of Engaging in Unlawful Monetary Transactions.
According to a superseding indictment returned by a grand jury, Mulder is alleged to have repeatedly represented himself to banks and investors as a person of high net worth who owned and controlled assets that, in fact, did not exist. Mulder pledged these assets as collateral for loans and lines of credit that totaled approximately $4 million. Among the phony assets were life insurance policies that Mulder represented to have been worth hundreds of thousands of dollars.
The superseding indictment also charged Mulder with having fraudulently obtained over $1 million from investors. Mulder allegedly told the investors that they could invest through his own family trust and also in specific ventures, such as the financing of a doctor’s home that, Mulder claimed, was being built in the Joplin, Missouri, area. The superseding indictment alleges that, in fact, the purported investment opportunities were bogus and that Mulder used the investor funds for his own purposes.
“The superseding indictment in the Mulder case touches upon two important aspects. First, Mr. Mulder is alleged to have defrauded financial institutions that are the mainstay of commercial activity in our communities. Second, Mr. Mulder is alleged to have defrauded individuals who sought to invest in commercial ventures,” said U.S. Attorney Trent Shores. “Our next step is to hold this white collar criminal accountable in a court of law, and we are prepared to do so.”
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Mulder faces a maximum penalty of 30 years in prison and fines of twice the amount of loss caused by his actions, if convicted at trial.
The FBI, IRS-Criminal Investigation, Department of Treasury-Office of Inspector General, and Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General are the investigative agencies. Assistant U.S. Attorney Kevin Leitch is prosecuting the case.
Local man sent to prison for impersonating federal agentRead the Press Release
HOUSTON – A 33-year-old Cypress resident has been ordered to federal prison following his conviction for illegally possessing a machine gun and impersonating a federal agent, announced U.S. Attorney Ryan K. Patrick.
Mitchell Shoemaker pleaded guilty Aug. 23, 2019.
Today, U.S. District Court Judge Ewing Werlein Jr. handed Shoemaker a 78-month sentence for the firearms charge. He also received a 36-month sentence for the impersonation, which is to be served concurrently to the other sentence imposed. The sentences are to be immediately followed by three years of supervised release. Shoemaker was further ordered to pay $2,000 in fines. At the hearing, the court considered that Shoemaker continued to abuse illegal substances and to unlawfully possess several firearms after he was charged with aggravated assault with a deadly weapon in 2014. In handing down the sentence, the court noted Shoemaker has spent years lying and deceiving others, that he obstructed justice by destroying evidence and that he has shown virtually no respect for the law.
“The Diplomatic Security Service’s (DSS) strong relationship with the Magnolia Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Attorney’s Office for the Southern District of Texas continues to be essential in the pursuit of justice,” said Jeffrey McGallicher, Special Agent in Charge of the DSS - Houston Field Office. “This shows the positive outcome when local law enforcement and federal agencies work together to stop someone from impersonating a federal agent.”
On Dec. 18, 2018, Shoemaker presented a fake badge to law enforcement officers at the shooting range in Magnolia. He admitted he represented himself to be an agent with DSS in order to gain access to the law enforcement only shooting range. He was found to not have ties to any federal agency and was immediately taken into custody.
At the time of his arrest, Shoemaker was in possession of seven firearms and two silencers. Among them was a machine gun - a F.N. (FN Herstal) PS90, 5.7 caliber rifle – that he was prohibited from possessing. Eight more firearms were seized from Shoemaker’s home the following day pursuant to a federal search warrant.
The investigation revealed Shoemaker had previously represented himself to be a federal law enforcement agent and participated in target practice with a local officer.
Authorities obtained video of him firing weapons, including the machine gun. They also found additional videos in which Shoemaker discussed the features of the F.N. PS90 weapon and modifications he made to the firearm. In the video, he pointed out the “giggle switch” which refers to the selector level to switch the weapon to automatic fire.
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.
DSS, ATF and Magnolia Police Department conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Britni Cooper prosecuted the case.
Local Man Pleads Guilty to Embezzling over $825,000Read the Press Release
PENSACOLA, FLORIDA – Michael C. Greutman, 59, of Fort Walton Beach, Florida, pleaded guilty today to thirteen counts of wire fraud and four counts of tax evasion stemming from his embezzlement of funds from his employer. Lawrence Keefe, United States Attorney for the Northern District of
Florida, announced the guilty plea.Between 2009 and 2016, Greutman embezzled over $825,000 from his employer, a family-owned business in Shalimar, Florida. Greutman worked as the Chief Financial Officer and stole money by making unauthorized online payments to pay his credit cards with employer funds, using corporate credit cards for unauthorized personal purchases, and transferring company funds to his personal bank accounts. He used his position to create false documentation and manipulate accounting records to cover up his scheme. Greutman also failed to report the embezzled money as income on his income tax returns.
Greutman faces the following penalties: • Wire Fraud: a maximum of 20 years in prison
• Filing a false tax return: a maximum of 3 years in prisonThe sentencing hearing is scheduled for May 12, 2020, at 10:30 am at the United States Courthouse in Pensacola.
Deputy United States Attorney Jeffrey Tharp is prosecuting the case after a joint investigation by the Okaloosa County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation as part of the Emerald Coast Financial Crimes Task Force.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.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.
Las Vegas Man Sentenced to over Two Years in Prison Based on False Statement During the Purchase of 35 Firearms over the Course of One YearRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was convicted of making a false statement when he purchased a firearm was sentenced yesterday to 28 months in prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the San Francisco Field Division.
“This case stems from the Department of Justice’s new gun violence reduction initiative,” said U.S. Attorney Trutanich. “Lying to a licensed firearms dealer and buying a gun for someone else is a serious offense. Our office will continue to work closely with ATF and local law enforcement to prosecute these crimes.”
“The goal of Project Guardian is to reduce the threat of gun violence throughout the country,” said Special Agent in Charge Roundtree. “Our focus is removing crime guns from our communities. Part of that focus encompasses identifying, investigating, and prosecuting those who lie on federal firearms transaction forms. ATF is happy to announce the continued success of the Project Guardian initiative through this conviction and our continued work and partnership with the U.S. Attorney’s Office and the Las Vegas Metropolitan Police Department.”
In November 2019, a jury found James Williams Jr., 29, guilty of making a false statement during a purchase of a firearm. According to court documents, between May 2017 and May 2018, Williams purchased 35 firearms, mostly handguns, and many of the same make, model, and caliber from various Las Vegas firearms dealers over approximately a one-year period. In May 2018, when purchasing one of those firearms, Williams made a false statement to a licensed firearms dealer regarding his residential address in Las Vegas. As proven at trial, Williams in fact did not reside at the address that he falsely listed as his residence on the Firearms Transaction Record form. At sentencing, U.S. District Chief Judge Miranda M. Du noted that numerous firearms bought by Williams have been recovered by law enforcement officers at crime scenes in multiple states.
In addition to the term of imprisonment, Chief Judge Du sentenced Williams to three years of supervised release.
The case was the product of an investigation by the ATF, with the assistance of the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Jared Grimmer and Tony Lopez prosecuted the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
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Las Vegas Man Sent to Prison for Scheme to Defraud Mortgage LenderRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Robert Lyle Buckhannon, 59, of Las Vegas, Nevada, was sentenced by U.S. District Judge Janet T. Neff to serve 24 months in federal prison for his role in a conspiracy to defraud a California mortgage lender in connection with a Battle Creek business, On Deck Sports Bar & Grill. Buckhannon will spend two years on court supervision following release from prison and was ordered to pay $467,213.98 in restitution to his victims and a $1,000 fine.
“West Michigan is not a safe zone for fraudsters,” commented U.S. Attorney Birge. “Mr. Buckhannon brought his scheming ways here and now he’s headed to prison.”
In July 2019, Buckhannon pleaded guilty in a Grand Rapids federal courtroom to conspiracy to commit wire fraud. Buckhannon admitted that, in 2013, he sent fake lease agreements and fake rent checks to the mortgage lender purporting to show $42,000 in annual rental income to induce the lender to loan $456,000 to On Deck Sports Bar & Grill, a Battle Creek business owned by co-defendant Kelly DeMoss (a/k/a Kelly Flees). In truth, there were no tenants or leases in the building, only the restaurant. After fraudulently obtaining the loan proceeds, Buckhannon and DeMoss siphoned off $36,500 of the loan proceeds for the purchase of a personal residence, which had not been disclosed to the lender and which held no mortgage on the residence. Shortly after the fraud scheme was executed, On Deck Sports Bar and Grill was destroyed by fire on December 30, 2013.
Judge Neff’s sentence reflected in part that Buckhannon had previously been convicted of a wire fraud conspiracy in Nevada for his role in defrauding investors in connection with a hedge fund called the Vestium Equity Fund in which he was ordered to pay $239,686.19 in restitution to those victims. He is serving a three-year probationary sentence for that offense. The Court noted the need for punishment and specific deterrence given Buckhannon’s prior fraudulent conduct and other criminal history.
Buckhannon’s co-defendant, Kelly Flees, previously was sentenced by Judge Neff to serve one year on federal probation and to pay $30,654.42 in restitution for her role in the offense. Ms. Flees was convicted of misprision of a felony (having knowledge of Buckhannon’s felony offense, failing to report it to law enforcement, and taking an affirmative step to conceal the crime).
The case was investigated by the Grand Rapids office of the ATF and the Battle Creek Police Department. Assistant U.S. Attorneys Christopher O’Connor and Erin Lane prosecuted the case.
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Jury Finds Madison Man Guilty of Armed Robbery, Drug & Gun ChargesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeremiah Edwards, 34, Madison, Wisconsin, was found guilty yesterday evening of armed robbery of an O’Reilly Auto Parts store, brandishing a firearm during that crime, being a felon in possession of a firearm, possessing THC-products with an intent to distribute, and possessing a firearm in furtherance of that drug trafficking crime. The jury reached its verdict after 7 hours of deliberations following four days of testimony in federal court in Madison.
The evidence presented at trial showed the Edwards, along with Kanasha Woods, 25, Milwaukee, Wisconsin, robbed the O’Reilly Auto Parts Store on South Stoughton Road in the Town of Blooming Grove, Wisconsin, on November 8, 2018. Both Edwards and Woods brandished firearms during the robbery and obtained cash from the safe and cash register drawers. Edwards and Woods fled the scene in Edwards’s vehicle and drove to the Moorish Science Temple in downtown Madison where Madison police officers attempted a traffic stop. Edwards evaded the stop and led the police in a high-speed chase through downtown Madison that ended with him crashing the vehicle and fleeing on foot.
During a search of the getaway vehicle, officers found the robbery proceeds, a ski mask and gloves used by Woods in the armed robbery, a receipt from Walmart showing the purchase of the mask and gloves, and a tactical light/laser that was on the firearm used by Edwards during the robbery. Officers also found a variety of marijuana and THC products in individually packaged portions with home-made labels with skull & crossbones in the names of “OG” and “LK.” During a second search of the vehicle, officers found a loaded 9mm Glock 19 semi-automatic pistol along with a black stocking hat with a green Moorish star on it in a hidden compartment in the ceiling of the vehicle behind a sunglasses holder. Analysts from the Wisconsin State Crime Lab in Madison testified that the Glock 19 and the black stocking hat contained Edwards’s DNA.
The government also presented evidence that four hours after the robbery, Edwards drained his bank account at an ATM in a laundromat located just one mile from the crash site, and fled to Chicago using a fake ID in the name of Henry Gilmore. Edwards was arrested in Chicago on March 11, 2019.
At trial, Woods testified that after attending services at the Moorish Science Temple in Madison on the day of the robbery, she was told by Caliph Muab-el, the Grand Sheik of the Temple (and Edwards’s brother), to get into Edwards’ vehicle and that she could trust Edwards that he would drive her home safely. Woods testified that Edwards told her he made and sold THC products, and that he supplied the marijuana and THC products that she was selling on behalf of Caliph Muab-el. Edwards offered her two exotic strains of marijuana to sample. After smoking the marijuana, Edwards pulled out the Glock and pointed it at Woods and told her he wanted her help as a lookout for a robbery. He told her she could “make some money or get hurt.” He then drove her to a Walmart and gave her $20, and told her to buy a mask and gloves for the robbery. Edwards then drove to the O’Reilly store and circled around it a number of times waiting for customers to leave the store. Once the parking lot was empty, Edwards and Woods entered the store brandishing pistols and ordered the store manager to show Edwards the safe. Edwards was unhappy with the three-minute time delay on the safe and threatened the manager by racking his gun and telling the manager, “don’t make me f*** you up.”
Woods pleaded guilty to the armed robbery of the O’Reilly store on March 25, 2019. She was sentenced on June 19, 2019, to 42 months in prison.
Chief U.S. District Judge James D. Peterson scheduled Edwards’s sentencing for April 17, 2020, at 11:00 a.m. Edwards faces a statutory maximum sentence of 20 years on the robbery charge, 10 years on the felon in possession charge, and five years on the drug charge. He also faces a mandatory minimum penalty of seven years on the brandishing charge during the robbery, and another mandatory minimum penalty of five years on the possession of a firearm in furtherance of a drug crime. Federal law requires that the mandatory seven-year and five-year gun sentences be served consecutively to each other, and to any sentence imposed on the robbery charge, the drug charge, and the felon in possession charge.
The charges against Edwards and Woods are the result of an investigation by the Dane County Sheriff’s Office, Madison Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Chadwick M. Elgersma and Daniel J. Graber handled the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
John Guerrero Sentenced to 155 Months for Drug Distribution and Firearms ConspiraciesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that John Guerrero (also known as “Sunshine” to his former drug customers in Franklin County) was sentenced today in federal court on one count of conspiring to distribute two hundred and eighty grams or more of cocaine base and one count of conspiring to possess firearms in furtherance of the drug trafficking crime. Guerrero—who is 27 and a resident of Boston, Massachusetts—was sentenced by U.S. District Judge Christina Reiss to a period of incarceration of 155 months, to be followed by 5 years of supervised release, for his role in the conspiracies.
The defendant pleaded guilty pursuant to a plea agreement he entered into with the United States. According to court records, Guerrero was responsible for the distribution of at least 2.8 kilograms of “crack” cocaine in the Franklin County area and for the trafficking of at least 30 illegally purchased firearms from Vermont to the Boston area. Guerrero and his coconspirators used drug customers to purchase firearms for them in exchange for controlled substances. Their offenses continued from at least September 2017 through March 2018.
As part of his plea agreement, the defendant had agreed to a sentencing range of 144 to 180 months (12-15 years). In exchange, the United States agreed to dismiss two additional criminal charges, including interstate transportation of firearms from which the serial numbers had been removed, altered, or obliterated. The defendant could have been sentenced up to life imprisonment for the remaining counts of conviction in the absence of the plea agreement.
United States Attorney Christina E. Nolan noted: “These cases are among the most serious cases we investigate and prosecute. The damage currently caused by dangerous drugs in our communities, including those in Franklin County, cannot be overstated. To make the situation worse, these particular individuals trafficked firearms across state lines into a separate community, deliberately introducing them into neighborhoods already saturated with violent crime. The U.S. Attorney’s Office remains committed to the prosecution of crimes at the intersection of dangerous drugs and illegal firearms.”
The investigation of this case was a joint effort between agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and local law enforcement—particularly the St. Albans Police Department. Their efforts were part of Project Safe Neighborhoods (PSN), a 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 prosecution was handled by Assistant United States Attorney Matthew Lasher. John Guerrero was represented by David F. Kidney, Esq. of Barre, Vermont.
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.
Jacksonville Woman Indicted for Perjury, Passport Fraud, and Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Brandi Nicole Fletcher (24, Jacksonville) with perjury, fraudulently obtaining a passport, and aggravated identity theft in connection with passport fraud. If convicted, Fletcher faces up to 10 years in federal prison for the false statement in an application for a passport count, up to 5 years for the perjury count, and a consecutive mandatory term of two years for the aggravated identity theft count.
According to court documents, the U.S. Marshals Service (USMS) in Jacksonville began investigating Fletcher after she appeared in federal court in July 2019 as a potential third-party custodian for a federal defendant seeking to be released on bond. During that hearing, Fletcher claimed, under oath, to be another person with the initials K.N.P. Fletcher also claimed to have the date of birth of K.N.P. and claimed to have no prior criminal record. All of these claims were false. Further investigation by the USMS revealed that Fletcher had obtained a Florida identification card in the name of K.N.P. approximately one hour prior to appearing in federal court. A facial recognition search of the Florida driver license database also showed that Fletcher had been issued Florida driver licenses or identification cards in her own name, as well as in the names of four other individuals.
In August 2019, Fletcher was arrested in South Carolina on unrelated charges for possession of stolen property. At the time of her arrest, she was in possession of a United States passport in the name of a person with the initials A.I.N.D., as well as at least 12 identification documents for other individuals, including birth certificates, social security cards, Florida identification cards, and a Georgia driver license. Further investigation by the United States Diplomatic Security Service revealed that, in February 2019, Fletcher had submitted an application for the passport using identification documents belonging to another person. In submitting the passport application, Fletcher swore that she was A.I.N.D.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Marshals Service and the Diplomatic Security Service. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Jackson Man Sentenced to 10 Years in Federal Prison Under Project EJECT for Illegally Possessing and Discharging a Firearm During Waffle House RobberyRead the Press Release
Jackson, Miss. – Nicholas Thames, 22, of Jackson, was sentenced yesterday by Chief U.S. District Court Judge Daniel P. Jordan III to 120 months in federal prison, followed by 3 years of supervised release, for possessing a firearm after he had been previously convicted of felony crimes, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation. Thames was also ordered to pay a $1,500 fine.
“Project EJECT was created to expel this exact type of criminal from our communities – those who violently threaten and terrorize our fellow citizens. Because of the work by the Jackson Police Department and the FBI, this criminal was quickly apprehend and prosecuted before he was able to harm anyone else. For at least the next decade, this criminal will not be able to hurt any more innocent civilians,” said U.S. Attorney Hurst.
On October 27, 2017, Thames entered a Waffle House restaurant on Beasley Road in Jackson, armed with a .45 caliber handgun. Thames covered his face with a red bandana in an attempt to conceal his identity. However, Thames was recognized by several witnesses because he had eaten at the restaurant just an hour earlier. Thames fired one shot from his pistol into the ceiling of the business, then pointed the gun at an employee, demanding money. The employee emptied the register, giving the contents to Thames. After receiving the cash, Thames fled on foot. In all, Thames got away with approximately $400.00.
Officers with the Jackson Police Department responded to the scene immediately. An officer spotted Thames walking in an apartment complex wearing clothing that matched the description given by the Waffle House employees. Thames was arrested and officers found a large sum of money and a black handgun on his person. Officers also found several other items that the defendant admitted taking from a vehicle that he had broken into in the area.
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.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Charles W. Kirkham.
Jackson County Man Sentenced to 7 ½ Years in Prison for Possessing Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Jackson County man for possession of child pornography, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge James G. Hernandez.
U.S. District Judge Anne Marie Axon sentenced Joshua Taylor Holcomb, to 7 ½ years in prison to be followed by 10 years supervised. Holcomb pled guilty in October to possessing more than 2700 images of child pornography and 351 videos on his laptop and thumb drive. Holcomb will have to comply with the Sex Offender Registration and Notification Act (SORNA).
“Criminals who victimize our children through digital pixels, videos or photos expect a visit from federal law enforcement,” Town said. “He will now spend the next 7 ½ years looking at prison bars instead of a computer screen.”
HSI investigated the case along with Alabama Law Enforcement Agency, State Bureau of Investigations, which Assistant U.S. Attorney R. Leann White prosecuted.
Indictment: Gun Deal in Parking Lot Went Badly for FelonRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was indicted Thursday on federal charges of assaulting an undercover officer after she paid him $400 for a handgun, U.S. Attorney Stephen McAllister said.
Nicholas Newman, 19, Kansas City, Kan., was charged with one count of robbery, one count of assaulting a federal officer, one count of brandishing a firearm in a crime of violence and one count of unlawful possession of a firearm by a felon.
An affidavit filed in the case alleges that on Feb. 6, 2020, Newman met the undercover officer in the parking lot of a Sunfresh grocery store at 241 S. 18th Street in Kansas City, Kan. The agent gave Newman $400 and he gave her a .45 caliber Ruger Model P234 pistol. She asked if the gun came with a clip and he said it did. Then Newman reached for the firearm and tried to pull it away from her. During the struggle, the agent shouted for help and a second agent grabbed Newman from behind.
If convicted, Newman could face up to 10 years in federal prison and a fine up to $250,000 on the charge of felon in possession of a firearm, up to 25 years on the robbery count, up to 20 years on the assault count and not less than five years on the charge of brandishing a firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri Catania is prosecuting. This case is being prosecuted under Project Guardian, a Justice Department initiative focused to reducing gun violence.
OTHER INDICTMENTS
Cory Castro, 28, Lawson, Mo., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred July 21, 2019, in Johnson County, Kan.
If convicted, he could face not less than five years in federal prison and a fine up to $5 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking and up to 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm by a felon. The Lenexa Police Department and the FBI investigated. Assistant U.S. Attorney Ryan Huschka is prosecuting.
Perfecto Morales-Santiago, 42, who is not a citizen of the United States, is charged with one count of unlawfully re-entering the United States after being deported. He was found Jan. 27, 2020, in Wyandotte County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Ryan Huschka is prosecuting.
Stephen M. Nelson, 31, Kansas City, Kan., is charged in a superseding indictment with two counts of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred in February and July 2019 in Wyandotte County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
Monta Simmons, 31, Leavenworth, Kan., is charged with escaping from federal custody at the Grossman Center on Brewer Place in Leavenworth, Kan. The crime is alleged to have occurred Nov. 20, 2019.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Henderson Man Sentenced to 26 Years Imprisonment for Heroin and Firearm ViolationsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, United States District Judge James C. Dever III sentenced JONATHAN ANTWAN MITCHELL, 34, of Henderson, North Carolina to 312 months imprisonment, followed by 5 years of supervised release.
MITCHELL was named in an Indictment filed on December 4, 2018, charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, possess with the intent to distribute a quantity of heroin, and possession of a firearm in furtherance of a drug trafficking crime. On July 22, 2019, MITCHELL pled guilty to that charge.
According to the investigation, in August of 2018, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a controlled purchase of heroin from MITCHELL. This purchase occurred in Henderson, North Carolina.
A few days later, a trooper with the North Carolina State Highway Patrol attempted to conduct a traffic stop on a car that MITCHELL was driving. MITCHELL sped away, reaching speeds of up to approximately 80 mph in a 45 mph zone. After a couple of miles, MITCHELL lost control and wrecked the car in a ditch. MITCHELL ran from the car and after a struggle with the trooper, was ultimately placed under arrest. Agents from the Vance County Sheriff’s Office and the State Bureau of Investigation arrived at the scene to assist. As a result of the arrest and a search of the car, agents recovered over 1,200 dosage units of heroin, approximately $31,000 in US currency, a semiautomatic pistol, and a 50-round extended magazine. MITCHELL later admitted to agents that he had been dealing heroin in the Henderson and Vance County area since 2014.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the State Bureau of Investigation; the Vance County Sheriff’s Office; and the North Carolina State Highway Patrol conducted the investigation in this matter. Assistant United States Attorney Nick J. Miller represented the government.
This case is 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 violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
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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.
Hedge Fund Manager Sentenced to 140 Months in Prison for Defrauding Investors of Millions of DollarsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that NICHOLAS JOSEPH GENOVESE was sentenced on February 11 in Manhattan federal court to 140 months in federal prison for committing securities fraud. GENOVESE induced more than $11.2 million in investments in a hedge fund that he founded, Willow Creek Investments LP (“Willow Creek”), by misrepresenting his qualifications and professional background and concealing that he had prior felony convictions for fraud-related crimes. In February 2018, GENOVESE was charged, arrested, and detained for perpetrating this fraud. In October 2018, GENOVESE pled guilty to one count of securities fraud before United States District Judge William H. Pauley III, who also imposed the sentence.
United States Attorney Geoffrey S. Berman said: “Nicholas Genovese is a recidivist fraudster and con artist who tricked more than ten victims into investing more than $11.2 million dollars into his hedge fund, Willow Creek, based on false claims about his background and credentials. Genovese brazenly lied to his victims, falsely claiming that he was an heir to a multimillion-dollar fortune, that he had an Ivy League MBA, and that he had served in senior roles at major Wall Street firms. In reality, Genovese was a repeat offender with nine prior criminal convictions for fraud-related and other crimes. Genovese now faces more than a decade in prison for defrauding his victims.”
According to the allegations set forth in the Complaint and Indictment filed against GENOVESE in Manhattan federal court, and statements made in public court filings and proceedings including GENOVESE’s sentencing hearing:
In or about 2015, GENOVESE began soliciting individuals to invest in the hedge fund that became Willow Creek, which was based in New York, New York. In doing so, GENOVESE represented, among other things, that he was part of the Genovese family that had owned the Genovese Drug Store chain in the New York area and was an heir to this family’s fortune from the sale of that business for hundreds of millions of dollars in the late 1990s; that he had graduated from Dartmouth College’s Tuck School of Business; and that he had extensive Wall Street experience. In particular, GENOVESE claimed that he had been a Goldman Sachs partner and a Bear Sterns portfolio manager before forming Willow Creek. Based in part on these claims, victims invested $11,211,704 with GENOVESE.
These representations were false. GENOVESE is not related to the Genovese family that owned and sold the Genovese Drug Store Chain, did not attend the Tuck School of Business, and had never worked for Goldman Sachs or Bear Stearns. GENOVESE also did not tell his investors that he had multiple prior felony convictions for fraud-related offenses including forgery, identity theft, and grand larceny.
When investors began to ask for their money back, GENOVESE put them off. He told one investor that he would only return that investor’s funds after “the stars have aligned,” or else there would be a risk that almost all the money would be lost as a result of the purported impracticalities of unwinding unspecified trading positions. Records indicate that GENOVESE lost approximately $8 million trading in TD Ameritrade accounts between January 2015 and December 2017. GENOVESE also used proceeds of his fraud to purchase various luxuries for himself.
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GENOVESE, 54, was born and raised in Illinois and is a resident of New York, New York. In addition to his prison term, GENOVESE was sentenced to three years of supervised release and ordered to pay restitution to his victims in the amount of $11,211,704 in addition to forfeiture of the proceeds of his crime.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the New York Regional Office of the United States Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Samson Enzer is in charge of the prosecution.
Fresno County Man Indictment for Large-Scale Marijuana CultivationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Diego Garcia Lua, 61, of Orange Cove, charging him with cultivating marijuana and maintaining a drug-involved premises, U.S. Attorney McGregor W. Scott announced.
According to court documents, Lua used his orange orchard to disguise the presence of approximately 6,305 marijuana plants he was growing there.
This case is the product of an investigation by the Tulare County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Katherine E. Schuh are prosecuting the case.
If convicted, Lua faces a maximum statutory penalty of life in prison and a $10 million fine on count one and a 20-year maximum penalty and $250,000 fine on count two. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Indian Health Services Doctor Indicted on Multiple Counts of Sexual Abuse and Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Wagner, South Dakota, man formerly employed as a physician for Indian Health Services at the Wagner Indian Health Service Clinic has been indicted by a federal grand jury for four Counts of Sexual Abuse and four Counts of Abusive Sexual Contact involving his patients.
Pedro Ibarra-Perocier, age 58, was indicted on February 4, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 13, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, life of supervised release, and up to $800 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count 1 of the Indictment alleges that on or about between approximately January 2017, and August 2018, Ibarra-Perocier knowingly caused and attempt to cause Adult Victim #1 to engage in a sexual act by threatening and placing Adult Victim #1 in fear.
Count 2 of the Indictment alleges that on or about between approximately January 2014, and February 2017, Ibarra-Perocier knowingly caused and attempt to cause Adult Victim #2 to engage in a sexual act by threatening and placing Adult Victim #2 in fear.
Count 3 of the Indictment alleges that on or about between approximately April 2018, and August 2018, Ibarra-Perocier knowingly caused and attempt to cause Adult Victim #3 to engage in a sexual act by threatening and placing Adult Victim #3 in fear.
Count 4 of the Indictment alleges that on or about between approximately April 2018, and June 2018, Ibarra-Perocier knowingly caused and attempt to cause Adult Victim #4 to engage in a sexual act by threatening and placing Adult Victim #4 in fear.
Count 5 of the Indictment alleges that on or about between approximately January 2017, and August 2018, Ibarra-Perocier knowingly engaged in, and attempted to engage in, sexual contact with Adult Victim #1 by threatening and placing Adult Victim #1 in fear.
Count 6 of the Indictment alleges that on or about between approximately January 2014, and February 2017, Ibarra-Perocier knowingly engaged in, and attempted to engage in, sexual contact with Adult Victim #2 by threatening and placing Adult Victim #2 in fear.
Count 7 of the Indictment alleges that on or about between approximately April 2018, and August 2018, Ibarra-Perocier knowingly engaged in, and attempted to engage in, sexual contact with Adult Victim #3 by threatening and placing Adult Victim #3 in fear.
Count 8 of the Indictment alleges that on or about between approximately August 2016, and June 2018, Ibarra-Perocier knowingly engaged in, and attempted to engage in, sexual contact with Adult Victim #4 by threatening and placing Adult Victim #4 in fear.
The charges are merely accusations and Ibarra-Perocier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Ann M. Hoffman and Jeffrey C. Clapper are prosecuting the case.
Ibarra-Perocier was released on bond pending trial. A trial date has not been set.
Former Generic Pharmaceutical Executive Pleads Guilty for Role in Criminal Antitrust ConspiracyRead the Press Release
A former senior executive pleaded guilty today for his role in a conspiracy to fix prices, rig bids, and allocate customers for generic drugs, the Department of Justice announced.
According to court documents, from at least March 2013 until at least June 2015, Hector Armando Kellum, a former senior executive at a generic pharmaceutical company based in New Jersey, conspired to fix prices, rig bids, and allocate customers for generic drugs. The conspiracy affected products including, but not limited to, clobetasol and nystatin triamcinolone cream. Kellum’s co-conspirators included a generic pharmaceutical company headquartered in New York and various individuals, including Ara Aprahamian, who was indicted in Philadelphia on Feb. 4, 2020. Kellum has agreed to cooperate with the Antitrust Division’s ongoing investigation into criminal antitrust violations in the generic drug industry.
“With today’s guilty plea, the Antitrust Division continues its prosecution of high-ranking executives who conspired to cheat America’s most vulnerable elderly consumers by raising prices for vital drugs,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Competition in our healthcare system is a critical focus for the Antitrust Division, and rooting out collusion by executives is a key priority in keeping our markets free.”
“Today’s guilty plea by the former pharmaceutical senior executive is yet another example of the dedication and determination exhibited by the legal and investigative teams,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “Along with our partners at the Department of Justice and the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General will continue to aggressively investigate those individuals responsible for unlawful behavior within the generic drug industry.”
“Kellum’s plea shows he lost sight of the basic principle that medicine is intended to heal sick people, not line an individual's pockets by colluding to rig bids and manipulate drug prices," said Timothy R. Slater, Assistant Director in Charge of the FBI Washington Field Office. "The FBI and our partners will continue to fight for the American public to have access to a competitive marketplace for pharmaceuticals. We will not stand by while large corporations and business executives in power try to skirt the rules at the expense of unsuspecting citizens.”
Kellum is the fourth executive to be charged in this investigation, and the third to plead guilty. To date, two companies have also been charged. The corporate charges were resolved by deferred prosecution agreement.
A violation of the charged offense carries a statutory maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is the result of an ongoing federal antitrust investigation being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington Field Office, the FBI’s Philadelphia Field Office, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic drug industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Border Patrol Agent Sentenced to Six Years in Prison for Drug and Bribery ChargesRead the Press Release
TUCSON, Ariz. - On February 13, 2020, Jose Antonio Yanez, 50, of Pirtleville, Ariz., was sentenced to 72 months in prison by United States District Judge James A. Soto. Yanez had previously pleaded guilty to Possession with Intent to Distribute Marijuana, Receiving a Bribe, and Importation of a Schedule IV Controlled Substance. Yanez was also ordered to pay $340,434 in restitution to United States Border Patrol, for salary he received while he was involved in the conspiracy.
From 2014 to 2016, while working as a United States Border Patrol Agent at the Douglas and Naco stations, Yanez used his position to assist drug traffickers to transport thousands of kilograms of marijuana. Among other acts, Yanez turned Border Patrol cameras away from an 18-person group of smugglers carrying marijuana in large backpacks, purposely left his area of responsibility so that vehicles containing more than 4,100 kilograms of narcotics could cross the border, and provided law enforcement sensitive materials and information to co-conspirators, all in exchange for money. Yanez admitted to accepting more than $16,000 in bribes during the conspiracy. Further, Yanez personally smuggled at least 160 alprazolam and tramadol pills into the United States from Mexico to distribute to another person.
“It is a unique affront to our system of justice when people like Yanez breach the trust placed in them by our communities,” said United States Attorney Michael Bailey, “and we have established a new Public Integrity section in our office to vigorously pursue matters like this.”
The investigation was handled by the Cochise Border Corruption Task Force, comprised of the FBI, Department of Homeland Security's Office of Inspector General, Customs and Border Protection's Office of Professional Responsibility, Border Patrol, DEA, and the Douglas Police Department. The prosecution was handled by Gordon E. Davenport III, Assistant U.S. Attorney, District of Arizona, Tucson.
Five Defendants Appeared in Federal Court This Week for Firearms and Drug OffensesRead the Press Release
ALEXANDRIA, SHREVEPORT, La. – United States Attorney David C. Joseph announced the resolution of several cases this week, all of which are separately noted.
SENTENCING – ALBERT MICKLUS III
Multi-Convicted Felon from Boyce Sentenced to Over Eight Years in Prison for Illegal Possession of a Firearm
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Albert Micklus III, 31, of Boyce, Louisiana, was sentenced on February 11, 2020, by U.S. District Judge Dee D. Drell to 100 months in federal prison and one year of supervised release, after pleading guilty on November 6, 2019, to possession of a firearm by a convicted felon.
During the execution of an arrest warrant on April 24, 2018, officers with the U.S. Marshal’s Service Task Force found Micklus hidden in a camper and in possession of a Smith & Wesson M&P 5.56mm AR-15 rifle that he admitted to stealing during a home invasion.
Prior to his arrest on April 24, 2018, Micklus’ criminal history included felony convictions for attempted entry of an inhabited dwelling and contributing to the delinquency of a minor (2009), simple burglary and criminal conspiracy (2012), and possession of a controlled dangerous substance (2017). At the time of his arrest, he had outstanding state arrest warrants for attempted first degree murder, aggravated kidnapping, home invasion, aggravated cruelty to animals, domestic abuse battery, and second degree battery.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshal’s Service, Louisiana State Police, and the Rapides Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
SENTENCING – DANIEL ELLSWORTH
Felon Sent Back to Prison for Illegal Possession of a Firearm
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Daniel Lee Ellsworth, 29, of Alexandria, was sentenced on February 11, 2020, by U.S. District Judge Dee D. Drell to 32 months in prison and one year of supervised release, after pleading guilty on October 21, 2019, to being a felon in possession of a firearm.
On September 11, 2018, parole officers went to Ellsworth’s residence to conduct a compliance check. Ellsworth was on state probation at the time for a felony conviction in Rapides Parish for attempted possession of a firearm by a felon. While there, officers found a loaded 9mm Smith & Wesson handgun in his bedroom. Ellsworth is a multiple-time convicted felon, and admitted that he knew his status as a convicted felon prohibited him from possessing firearms or ammunition. There is no parole in the federal system.
Daniel Ellsworth has prior felony convictions in Rapides Parish for simple burglary (2009), possession of marijuana (2015), attempted possession of a firearm by a felon (2015), and drug paraphernalia (2018). He also has a prior felony conviction in Calcasieu Parish for illegal use of a weapon (2013). It is a violation of federal law for a person previously convicted of a felony offense to possess firearms or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Louisiana Department of Public Safety and Corrections’ Division of Probation and Parole conducted the investigation. Supervisory Assistant U.S. Attorney Allison D. Bushnell and Assistant U.S. Attorney Michael T. Shannon prosecuted the case.
SENTENCING – RONALD LOUIS HALL JR.
Alexandria Felon Sentenced to 10 Years in Prison for Firearms and Drug Offenses
ALEXANDRIA – United States Attorney David C. Joseph announced that Ronald Louis Hall Jr., 29, of Alexandria, Louisiana, was sentenced today by U.S. District Judge Dee D. Drell, to 10 years in federal prison for possession of ammunition by a convicted felon and possession with intent to distribute Oxycodone. Judge Drell also sentenced Hall to three years of supervised release following his release from prison. Hall pled guilty to these charges on November 14, 2019.
On January 6, 2019, while traveling in Rapides Parish, a Louisiana State trooper initiated a stop of Hall’s vehicle for two traffic violations. As the officer approached the vehicle to make contact with Hall, he encountered the smell of burnt marijuana. Hall admitted to smoking marijuana earlier and consented to a search of his vehicle. During the search, officers found a 9mm extended magazine containing 16 rounds of ammunition in the glove compartment. Officers later discovered a hidden compartment in the vehicle that held five plastic cellophane bags containing 452 Oxycodone pills, a powerful opioid.
Hall has prior felony narcotics convictions in Rapides Parish for possession of marijuana second offense (2013) and third offense (2015), and possession with intent to distribute cocaine (2014). It is a violation of federal law for a person previously convicted of a felony offense to possess firearms or ammunition.
The FBI Central Louisiana Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
GUILTY PLEA – WILLIS ELMER LACOUR
Alexandria Man Admits to Distributing Methamphetamine
ALEXANDRIA, La. –United States Attorney David C. Joseph announced that Willis Elmer Lacour, 39, entered a guilty plea today before U.S. District Judge Dee D. Drell, for distribution of methamphetamine.
According to information presented to the court, Lacour was known to law enforcement as a multi-convicted drug felon who was distributing methamphetamine in and around Central Louisiana. On December 4, 2019, agents with the FBI Central Louisiana Safe Streets Task Force arrested Lacour for distribution of approximately 460 grams of methamphetamine. At the time of his arrest, officers found $1,851 in Lacour’s pocket and $5,640 in the glove compartment of the vehicle he was driving. Lacour claimed ownership of the cash found in the glove compartment and admitted to distributing the methamphetamine.
Lacour faces up to 10 years in prison, five years of supervised release, and a $10,000 fine at his sentencing on May 15, 2020.
The FBI Central Louisiana Safe Streets Task Force and Louisiana State Police conducted the investigation. Assistant U.S. Attorney John A. Crawford is prosecuting the case.
GUILTY PLEA – KENTRELL DEMARCIA TURNER
Armed Drug Trafficker Pleads Guilty in Federal Court
SHREVEPORT, La. – A Shreveport resident pleaded guilty in federal court to violating federal narcotics and firearms laws, United States Attorney David C. Joseph announced.
Kentrell Demarcia Turner, 28, pleaded guilty on February 12, 2020, before Chief U.S. District Judge S. Maurice Hicks Jr., to possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
During routine patrol on February 23, 2018, a Shreveport Police officer detected the smell of marijuana coming from a parked vehicle. As the officer approached the vehicle, Turner exited and stood near the open driver’s side door. Once out of the vehicle, officers could see a large plastic bag containing marijuana on the center console and a Ruger 9mm semi-automatic pistol on the driver’s side floorboard. The pistol was loaded with 13 rounds of ammunition. Officers also discovered $3,509 in Turner’s left front pocket. After Turner was transported to the Shreveport City Jail, he attempted to remove powder cocaine that he had hidden on his body. An inventory of the vehicle resulted in the seizure of cocaine rocks found on the floorboard behind the driver’s seat.
Turner has prior felony convictions from 2011 and 2012 in Caddo Parish for possession of a Schedule II controlled substance. It is a violation of federal law for a person previously convicted of a felony offense to possess firearms or ammunition.
Judge Hicks scheduled sentencing for June 25, 2020, at which time Turner faces up to 20 years in prison for the cocaine charge, and five years in prison for the firearm charge.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
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The firearms cases were brought as 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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
The firearms cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Four Defendants for Operating Knoxville-Area Pill MillsRead the Press Release
A federal jury returned a guilty verdict yesterday against four defendants for their roles in running “pill mills,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee.
A federal jury convicted Sylvia Hofstetter, 55, of Miami, Florida, and Courtney Newman, 44, Cynthia Clemons, 47, and Holli Womack, aka “Holli Carmichael,” 46, all of Knoxville, Tennessee. The jury returned guilty verdicts against Hofstetter for a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, a drug conspiracy, money laundering and maintaining drug-involved premises, and guilty verdicts against Newman, Clemons and Womack for maintaining drug-involved premises.
The verdict follows a three-month trial presided over by U.S. District Judge Thomas A. Varlan for the Eastern District of Tennessee. The United States presented testimony from 55 witnesses throughout the trial, including former patients, employees, medical providers, and expert medical witnesses.
Sentencing hearings are tentatively set for Newman in July 2020, Clemons and Womack in August 2020, and Hofstetter in September 2020.
The drug conspiracy involved the distribution of over 11 million tablets of oxycodone, oxymorphone and morphine that generated over $21 million of clinic revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, which, the evidence showed, were essentially pill mills. Before opening these pill mills in Tennessee, testimony established that Hofstetter worked at a Florida-based pill mill in Hollywood, Florida, which was raided by the Drug Enforcement Administration (DEA) in December 2010. Testimony revealed that law enforcement’s crackdown on hundreds of pill mills in South Florida during that time-period precipitated the move to East Tennessee, where a large percentage of those clinics’ opioid-addicted customers lived.
The charges resulted from an investigation by the Criminal Division’s Organized Crime and Gang Section (OCGS), the U.S. Attorney’s office for the Eastern District of Tennessee, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Criminal Division’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health and the DEA’s Knoxville Diversion Group.
Assistant U.S. Attorneys Tracy L. Stone, Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot of OCGS prosecuted the case.
This case was part of the department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Four Defendants for Operating Knoxville-Area "Pill Mills"Read the Press Release
Knoxville, Tenn. – A federal jury returned a guilty verdict against four defendants for their roles in running “pill mills,” announced Assistant Attorney General Brian A. Benczkowksi of the Justice Department’s Criminal Division and U. S. Attorney J. Douglas Overbey of the Eastern District of Tennessee.
After five days of deliberation, a federal jury returned a guilty verdict against Sylvia Hofstetter, 55, of Miami, Florida, and Courtney Newman, 44, Cynthia Clemons, 47, and Holli Womack, a.k.a. “Holli Carmichael,” 46, all of Knoxville, Tenn. The jury returned guilty verdicts against Hofstetter for a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, a drug conspiracy, money laundering, and maintaining drug-involved premises, and guilty verdicts against Newman, Clemons, and Womack for maintaining drug-involved premises.
The verdict follows a three-month trial presided over by United States District Judge Thomas A. Varlan in the United States District Court for the Eastern District of Tennessee at Knoxville. The United States presented testimony from 55 witnesses throughout the trial, including former patients, employees, medical providers, and expert medical witnesses.
Defendant Hofstetter faces a term of up to 20 years in prison and a $1,000,000 fine. The remaining defendants face up to 20 years in prison and fines up to $500,000. Sentencing hearings are tentatively set for Newman in July 2020, Clemons and Womack in August 2020, and Hofstetter in September 2020.
The drug conspiracy involved the distribution of over 11 million tablets of oxycodone, oxymorphone, and morphine that generated over $21 million of clinic revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, which, the evidence showed, were essentially pill mills. Before opening these pill mills in Tennessee, testimony established that Hofstetter worked at a Florida-based pill mill in Hollywood, Florida, which was raided by the Drug Enforcement Administration (DEA) in December 2010. Testimony revealed that law enforcement’s crackdown on hundreds of pill mills in South Florida during that time-period precipitated the move to East Tennessee, where a large percentage of those clinics’ opioid-addicted customers lived.
United States Attorney Overbey said, “This office appreciates the extremely hard work by the jury to reach this verdict. The verdict should demonstrate the dire consequences to individuals who participate in greedy schemes to make money and cause so many to suffer from the opioid crisis. To the men and women on the investigative and prosecution teams, we salute the sacrifices you made and the skills you demonstrated to achieve justice in this long and complex trial.”
“The devastation inflicted on families due to the illicit drug trade is immeasurable. The reprehensible actions of those responsible will not be tolerated. As evidenced by these convictions, the FBI and our law enforcement partners will never stop working to put those people who run pill mills behind bars,” said the FBI’s Special Agent in Charge, Joe Carrico.
This superseding indictment resulted from an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
Eastern District of Tennessee Assistant U.S. Attorney Tracy L. Stone, along with Deputy Chief Kelly Pearson and Trial Attorney Damare Theriot of the Organized Crime and Gang Section, with the U.S. Department of Justice, represented the United States.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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Federal Complaint Filed Against Killeen Woman for Bank RobberyRead the Press Release
Eboni Siamone McMurray, age 23 of Killeen, stands charged with allegedly robbing the First National Bank Texas branch in Killeen on Wednesday, announced U.S. Attorney John F. Bash, FBI San Antonio Division Special Agent in Charge Christopher Combs and Killeen Police Chief Charles F. Kimble.
A federal criminal complaint unsealed today in Waco charges McMurray with one count of bank robbery. The complaint alleges that on the afternoon of February 12, 2020, McMurray entered the bank located in the 4300 of East Central Texas Expressway. She approached a teller and demanded that the teller “fill the bag.” The complaint further states that McMurray then pointed a firearm directly at the teller, told the teller she had five seconds to comply, and began counting down from five. The teller filled the bag with money as instructed. McMurray exited the bank with approximately $2,500.
Based on video surveillance from the scene, investigators were able to identify and subsequently locate McMurray’s vehicle. FBI agents and Killeen Police officers, with assistance from the U.S. Marshals Service, arrested McMurray at her residence without incident yesterday.
McMurray faces up to 25 years in federal prison upon conviction. She remains in federal custody pending a detention hearing on Tuesday at 9:00am before U.S. Magistrate Judge Jeffrey Manske in Waco.
The FBI and Killeen Police Department are investigating this case. Assistant U.S. Attorney Greg Gloff is prosecuting the case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Duplin County Man Sentenced to Thirty Years for Decades-Long Drug Trafficking CareerRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that in Federal court, BRANDON DUDLEY, a 34-year-old resident of Duplin County, North Carolina, received a thirty (30) year sentence following his conviction before Chief United States District Judge Terrence W. Boyle. After a three-day trial, a jury found DUDLEY guilty of all counts reflecting his extensive drug trafficking activities throughout Eastern North Carolina. During trial, the prosecution presented evidence of multiple narcotics sales involving DUDLEY, as well as the testimony of individuals who assisted DUDLEY’s operation back to the 1990’s.
Despite serving prison time on various occasions in the North Carolina Department of Corrections, DUDLEY, and those with whom he worked, have continued to distribute large quantities of methamphetamine and other drugs since 2015. Upon final calculation, the Court held DUDLEY “conservatively responsible” for the following quantities of drugs:
- 20 KG of Crystal Methamphetamine;
- 41 KG of Marijuana;
- 31 KG of Cocaine;
- 15 KG of Crack Cocaine.
In addition to the evidence presented regarding drug trafficking, the Court received extensive testimony that tied DUDLEY to the use of firearms while running the Drug Trafficking Organization. DUDLEY has been linked to multiple, ongoing investigations that involve violence and criminal activity centered on the use, possession and trafficking of firearms.
Mr. Higdon commented: “Brandon Dudley’s sentence represents a just conclusion to a long, thorough investigation into a committed, prolific drug dealer. The Dudley case is part of the Take Back North Carolina Initiative, which targets the most dangerous criminals in our communities throughout Eastern North Carolina. With the focused, interconnected efforts of federal, state, and local law enforcement, the Dudley drug trafficking organization has been successfully identified, investigated, and is now fully dismantled. Given Brandon Dudley’s years of committed criminal activity and the countless lives affected throughout North Carolina by the drugs and accompanying violence dispensed by his organization, incapacitating Dudley will make all of Eastern North Carolina safer.”
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The DUDLEY prosecution was a part of the “Fall of the House of Usher” OCDETF Operation that has resulted in the prosecution of dozens of high level drug traffickers, gang and cartel-linked criminals, and the seizure of hundreds of kilograms of controlled substances throughout Eastern North Carolina and beyond.
The Duplin County Sheriff’s Office and the United States Drug Enforcement Administration investigated this matter. J. Frank Bradsher and J. Bradford Knott prosecuted the case on behalf of the United States.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
District Man is Sentenced to 26 1/2 Years in Prison for the Murder of His GirlfriendRead the Press Release
WASHINGTON – Ronald Randolph, 42, of Washington, D.C. was sentenced today by Judge Todd Edelman to 26 ½ years in prison for the murder of his girlfriend, Shameka Jones, U.S. Attorney Timothy J. Shea announced. Randolph previously pled guilty to one count of second degree murder while armed with a sentencing range of 20 to 28 years in prison.
The incident occurred on July 22, 2017, less than one month after Randolph’s release from prison for another violent crime, around 8:30 a.m. Randolph and Ms. Jones had been in a romantic relationship for years, however, in the days leading up to the murder, Ms. Jones had expressed a desire to end the relationship. That morning, angry about the possibility that the relationship might end, Randolph shot Ms. Jones in the face. He then waited twenty minutes before calling 911 and confessing to the crime.
During the sentencing hearing, numerous statements were read that had been prepared by family members and friends describing the significant role Ms. Jones played in their lives as a sister, daughter, friend and mother. In imposing his sentence, Judge Edelman indicated that he considered Randolph’s significant prior criminal history, to include multiple convictions for crimes of violence and a prior conviction for second degree murder, and found there were few if any mitigating factors to consider.
In announcing the sentence, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Lead Paralegal Specialist Sharon Newman, Paralegal Specialists Stephanie Gilbert and Stephanie Siegerist, Victim Witness Specialist Jennifer Allen, and Investigative Analyst Zachary McMenamin. Finally, U.S. Attorney Shea commended the work of former Assistant U.S. Attorney Christopher Bruckmann who investigated and indicted the case and Assistant U.S. Attorneys Laura Bach and Jack Korba who prosecuted the matter.
District Man Sentenced to 19 1/2 Years in Prison for Second-Degree Murder While Armed in Northeast WashingtonRead the Press Release
WASHINGTON – Darius Murphy, 25, of Washington, D.C., was sentenced today to a period of nineteen-and-a-half years of incarceration for second-degree murder while armed announced Timothy J. Shea, United States Attorney for the District of Columbia, and Peter Newsham, Chief of the Metropolitan Police Department.
The defendant pled guilty in the Superior Court of the District of Columbia on September 13, 2019. He was sentenced by the Honorable Craig Iscoe. Following his prison term, he will serve five years of supervised release.
On February 22, 2019, at approximately 7:01 a.m., defendant Murphy fatally stabbed James Wood. Specifically, Mr. Wood was having a conversation with two men in the parking lot of the Capital Laundromat on Benning Road in Northeast. As Mr. Wood engaged in conversation with these two individuals, the defendant walked up behind him, grabbed him by the neck, and stabbed him several times, killing him. After stabbing Mr. Wood, the defendant fled on foot.
In announcing the sentence, United States Attorney Shea and Chief of Police Newsham commended the work of those who investigated the case from the Metropolitan Police Department, including Homicide Branch Detective Thomas O’Donnell. They also acknowledged the efforts of those who worked on the case from the United States Attorney’s Office, including Assistant United States Attorney George A. Pace, Jr., Paralegal Specialist Kelly Blakeney, and Victim/Witness Advocate Marcey Rinker.
Delaware County Business Owner Sentenced to 4+ Years in Prison for Stealing Funds from Clients, Filing False Forms with the IRSRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Myles Hannigan, 48, of Newtown Square, PA was sentenced to 52 months’ incarceration, one year supervised release, and ordered to pay $3,270,566 in restitution by United States District Judge Chad F. Kenney for filing false tax information with the Internal Revenue Service on behalf of his clients. At the conclusion of today’s sentencing hearing, Mr. Hannigan was immediately taken into custody and sent to federal prison.
The defendant pleaded guilty in July 2019 to obstructing the due administration of the IRS and seventeen counts of preparing materially false income tax returns, in connection with owning and operating Payroll Professionals, Incorporated (“PPI”) located in Media, Pennsylvania. PPI is a third-party payroll processor, which assists its clients by issuing payroll checks and forwarding tax payments to federal, state, and local authorities. PPI’s clients were small- to medium-sized businesses, and the clients relied on Hannigan to prepare and file tax Form 941, among others, with the IRS. Form 941 details employee wages that were paid by a company, and payroll tax withheld and paid to the IRS based on those wages.
Beginning in January 2012 and continuing up to December 2016, Hannigan prepared and submitted Forms 941 that falsely reported information to the IRS. In particular, Hannigan reported depositing more money to pay tax debt than he had actually sent to the IRS, causing 35 of PPI’s client companies (who are considered victims in this case) to collectively underpay the IRS $3,270,566.89 for those tax years. These victims/companies gave Hannigan access to all necessary funds to pay the full tax debt, but Hannigan failed to do so. Hannigan hid his behavior from these victims/companies by presenting bogus documents that purported to be confirmation of payments he had made to the IRS on their behalf, and by re-directing IRS correspondence to his business address.
“This defendant – an accountant whose business it was to handle payroll taxes – committed fraud and stole from clients and the United States government,” said U.S. Attorney McSwain. “He also stole from the pockets of all taxpayers who do the right thing every year by paying their taxes. As we enter tax season this year, let this sentence serve as a warning to anyone who might be considering trying to get away with cheating the IRS: don’t do it – because it will not end well.”
“As the third-party payroll processor, Mr. Hannigan’s clients trusted him to prepare accurate employment tax returns and remit their payroll taxes to the IRS. Instead, he prepared fraudulent employment tax returns, lied to his clients and failed to remit their payroll taxes,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Today’s sentencing holds Mr. Hannigan accountable for his crimes and shows how serious IRS Criminal Investigation is about pursuing individuals who intentionally cheat not only their clients but the entire taxpaying public.”
The case was investigated by the IRS and the Treasury Inspector General for Tax Administration, and is being prosecuted by Assistant United States Attorney Jason Bologna.
Cuyahoga Falls man indicted for attempting to use explosives at Cuyahoga Falls High School and making threats to a Kansas elementary schoolRead the Press Release
Allen Martin Kenna, 18, of Cuyahoga Falls, Ohio, was charged in a two-count indictment for Attempted Use of an Explosive Device and Interstate Communication of Threats.
As alleged in the indictment, Kenna is charged with attempting to use an explosive device to damage or destroy buildings and real property associated with Cuyahoga Falls High School. Kenna is also charged with making threatening communications to a Kansas elementary school. Specifically, Kenna is alleged to have notified the Fort Rily Sheriff’s Office that he was holding a hostage inside of the school and that he would injure any person attempting to enter the school in response to this threat.
“The indictment alleges that the defendant attempted to construct an explosive device that was to be used in an attack on a local high school,” U.S. Attorney Justin Herdman stated. “The defendant is further alleged to have engaged in making interstate threats that were directed at another school in Kansas. Law enforcement takes seriously all concerns about potentially violent individuals, but where we have specific, credible threats of violence against the public, especially in our schools, we will act swiftly and with appropriate federal charges.”
“Thanks to the awareness of private citizens and the hard work of our law enforcement partners, what could have been a horrific and tragic day was stopped,” said FBI Special Agent in Charge Eric B. Smith. “Law enforcement has no higher priority than protecting others. We will continue to ensure our schools remain a safe place where young people go to learn and thrive. The FBI and our law enforcement partners urge parents, relatives, and friends to report suspicious and troubling behavior to authorities immediately.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the Federal Bureau of Investigation’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Duncan T. Brown.
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Cookeville Hospital Settles False Claims Act AllegationsRead the Press Release
NASHVILLE, Tenn. – February 14, 2020 – Cookeville Regional Medical Center Authority, has agreed to pay $4.1 million to settle allegations that it violated the False Claims Act (“FCA”), announced Don Cochran, United States Attorney for the Middle District of Tennessee. The alleged conduct involved payments to physicians in violation of the Anti-Kickback Statute and Stark Law.
“Federal statutes exist to protect the well-being of patients and to prevent improper influence on patient care by providers,” said U.S. Attorney Don Cochran. “The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively enforce the laws designed to protect the patient and the integrity of federal healthcare programs.”
The settlement resolves allegations by the United States and State of Tennessee that from January 2012 through December 2017, Cookeville Regional Medical Center (“CRMC”), a hospital in Cookeville, Tennessee, submitted false claims for payment to the Medicare program and to TennCare as a result of violations of the Federal Anti-Kickback Statute and the Stark Law. These violations related to financial arrangements between CRMC and physicians associated with its wholly owned subsidiary physician practice, CRMC MSO-Sub 1, Inc. d/b/a Tennessee Heart.
Under the terms of the agreement, the United States will receive $3,647,155.00 and the State of Tennessee will receive $452,845.00.
“The Stark Law prohibits hospitals and physicians from entering into improper financial relationships that can disrupt the physician decision-making process,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
“We are fortunate to have this strong relationship with our federal law enforcement partners, and continue to be diligent in pursuing false claim actions that have the potential to affect quality of our health care, in addition to costing consumers and taxpayers,” said TBI Director David Rausch.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against CRMC by a former employee who brought claims under the qui tam, or whistleblower, provisions of the FCA, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $779,000 as his share of the settlement.
This matter was investigated by the Department of Health and Human Services, Office of Inspector General; the Tennessee Attorney General’s Office; the Tennessee Bureau of Investigation; and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This case is docketed as United States ex rel. Seabury v. Cookeville Regional Medical Center Authority, d/b/a Cookeville Regional Medical Center, d/b/a Cookeville Regional Medical Group, Inc., f/k/a CRMC MSO, Inc., d/b/a CRMC MSO Sub-1, Inc., d/b/a Tennessee Heart, Civ. Action No. 2:15-cv-00065 (M.D. Tenn.).
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Construction Company Owner Charged with Fraudulently Obtaining More Than $2.75 Million in Chicago Housing Authority ContractsRead the Press Release
CHICAGO — The owner of a construction company has been indicted for allegedly fraudulently obtaining more than $2.75 million in Chicago Housing Authority contracts designed to benefit minority-owned businesses.
LESTER COLEMAN owned Coleman Development Corp., a Chicago-based construction company and certified minority-owned business. From 2010 to 2018, Coleman falsely represented to the CHA that his company would perform construction work sufficient to satisfy the agency’s minority-owned business requirements, which mandated that a certain percentage of work on CHA properties be performed by minority or women-owned enterprises, according to an indictment returned Thursday in U.S. District Court in Chicago. In reality, Coleman subcontracted nearly all of the work to a company that was not certified as a minority-owned business, the indictment states. Coleman, through his company, fraudulently obtained more than $2.75 million in payments from the CHA contracts, including for construction or rehab work on properties in the Chicago neighborhoods of West Ridge, North Park, Albany Park, Archer Heights, and Oakland, the indictment states.
The charges also allege that Coleman falsely represented and certified to the CHA that the employees performing the work were paid the prevailing wages required by federal labor laws, when, in fact, they were not paid the prevailing wages.
The indictment charges Coleman, 62, of Chicago, with three counts of wire fraud. An arraignment date in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Elissa Rhee-Lee, Inspector General of the CHA; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorney Stephen Heinze.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Complaints of fraud at the CHA may be reported to the CHA’s Office of Inspector General by clicking here.
Cincinnati police officer charged with lying to federal agents, submitting false tax returnsRead the Press Release
CINCINNATI – A Cincinnati police officer was arrested today and charged with making a false statement to federal agents and filing false tax returns.
Quianna Campbell, 39, of Cincinnati, appeared in federal court on the charges at 3pm today, at which point the charges against her were unsealed.
According to court documents, the Cincinnati Police Department and IRS Criminal Investigation began investigating Campbell for various criminal offenses related to financial benefits she received as a result of her employment with the department.
Campbell has been employed with the Cincinnati Police Department for 11 years.
As part of an ongoing investigation into alleged money laundering and other crimes associated with area nightclubs, investigators discovered text message conversation between Campbell and a nightclub owner.
Campbell allegedly responded to a text from the nightclub owner asking if an individual was an undercover officer. According to the affidavit filed in support of the criminal complaint, Campbell confirmed via text message that the person was an undercover officer and discussed with the club owner the possible reasons that the police department might investigate the nightclub.
When federal agents questioned Campbell about the text conversation, she allegedly lied to the agents. Campbell told the agents she would never confirm if an individual was a police officer because if they were working in an undercover capacity it would put them in danger.
Campbell also allegedly failed to report on her federal tax returns cash income that she earned working off-duty details.
According to police records, Campbell earned more than $81,000 total working off-duty details in 2015, 2016 and 2017. She did not report an accurate income when filing her taxes.
Making a false statement to a federal agent in punishable by up to five years in prison. Willfully filing a false tax return carries a potential maximum penalty of up to three years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Cincinnati Police Chief Eliot K. Isaac announced the charges. Assistant United States Attorney Kenneth L. Parker is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Chicago Woman Found Guilty for Role in $7 Million Scheme to Defraud MedicareRead the Press Release
A federal jury found a Chicago woman guilty today for her role in a scheme to defraud Medicare of approximately $7 million between 2011 and 2017.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the United States Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Division Office made the announcement.
After a four-day trial, Angelita Newton, 42, was found guilty of one count of conspiracy to commit health care fraud and wire fraud. Sentencing has been scheduled for Oct. 13, 2020 before U.S. District Judge Virginia Kendall of the Northern District of Illinois, who presided over the trial.
According to evidence presented at trial, from approximately 2011 to 2017, Newton worked at Care Specialists, a home health company based in Chicago, Illinois, and owned by Ferdinand Echavia, 46, and Ma Luisa Echavia, 44, both of Chicago. Newton was the Echavias’ employee and personal assistant. In that role, Newton conspired with the Echavias and others to submit claims to Medicare for unnecessary home health services for unqualified patients, or for visits that did not happen as billed, the evidence showed. Newton created and completed visit notes and other documents purporting to reflect nursing services purportedly rendered by Ferdinand Echavia with the knowledge that he was not actually providing the services. Newton was aware that Ferdinand Echavia was making cash payments to patients, which Newton knew to be illegal, the evidence showed.
The evidence at trial showed that between 2011 and 2017, Medicare paid Care Specialists approximately $7 million for home health care services.
Three other defendants have been charged in connection with the fraud at Care Specialists. Ferdinand Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 28, 2020, and is awaiting sentencing. Ma Luisa Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 29, 2020, and is awaiting sentencing. A former nurse at Care Specialists, Reginald Onate, 31, of Aurora, Illinois, pleaded guilty to one count of conspiracy to commit health care fraud, and is awaiting sentencing.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Leslie S. Garthwaite and Patrick Mott of the Criminal Division’s Fraud Section are prosecuting the case. Former Trial Attorney Jessica Collins of the Fraud Section previously handled the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chicago Man Charged in Criminal Complaint with Robbery Affecting Interstate Commerce of Hammond Boost Mobile StoreRead the Press Release
HAMMOND- Daniel Smith, 26, of Chicago, Illinois, was charged in a criminal complaint with robbery affecting interstate commerce of a Hammond Boost Mobile store, announced U.S. Attorney Kirsch.
The criminal complaint alleges that on January 24, 2020, Daniel Smith entered the Boost Mobile store located at 2741 169th Street, Hammond, Indiana, held employees at gunpoint, and ordered them to fill up a duffel bag with cellular phones, after which he left the store with the bag full of phones.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team and Hammond Police Department with assistance from the Merrillville and Hazel Crest, Illinois Police Departments. This case is being prosecuted by Assistant United States Attorney Caitlin M. Padula.
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Canadian Man Sentenced to 15 Months for Conspiracy to Commit Bank FraudRead the Press Release
CONCORD –Tharushan Nirmalachandran, 30, of Ile-Bizard, Quebec, was sentenced to 15 months in federal prison for participating in a conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today. Nirmalachandran faces likely removal to Canada after the completion of his prison sentence.
According to court documents and statements made in court, in April 2019, Nirmalachandran, Syed Hoque, and Ajitharan Raveendran, conspired with others to withdraw money from other persons’ bank accounts by using cloned debit cards at ATMs. A “cloned” debit card is a gift card or other type of card that has been re-encoded to contain other persons’ debit card information. Blank credit and debit or gift cards can be encoded with stolen credit and debit card information using an “MSR” or “Magnetic Stripe Reader” machine. An MSR machine can read and write the information stored in the magnetic stripe on the back of credit and debit cards.
On Friday, April 26, 2019, a witness reported to the Hudson Police Department that a man later identified as Hoque drove his car through an ATM in Hudson, New Hampshire, several times to make withdrawals. The Hudson Police responded and found Hoque in his car at the ATM. The officer saw that Hoque was holding a cell phone that was displaying several sets of numbers on the screen and saw a large amount of cash on the front passenger seat of his car and several ATM or credit cards on the center console.
A search of Hoque’s phone revealed text messages in an application called “WhatsApp” from the weekend of April 24 through 26, 2019. One group message chain from April 26, 2019, showed members of the conspiracy coordinating their activities as they withdrew money from ATMs with the cloned debit cards.
The trio was operating out of a hotel room in Methuen, Massachusetts. Hotel surveillance video showed that, early in the morning on April 27, 2019, Nirmalachandran and Raveendran carried large duffle bags out of their hotel room. Investigators later found duffle bags during a search of Nirmalachandran’s car that contained (i) a portable MSR machine; (ii) 103 Visa, American Express, and MasterCard gift cards, 96 of which contained cloned debit card information; (iii) over $51,000 United States currency; and (iv) a Hewlett Packard laptop computer. A later search of the computer revealed text files that contained over 170 debit card numbers.
In total, from April 25, 2019, through April 27, 2019, members of the conspiracy successfully withdrew at least $43,980.00 and attempted to withdraw an additional $69,900.00 from other people’s bank accounts using cloned debit cards.
Nirmalachandran previously pleaded guilty on November 4, 2019. In addition to his prison sentence, Nirmalachandran was ordered to pay $$43,980. The defendants in the case also have been ordered to forfeit over $61,000.
Hoque pleaded guilty December 13, 2019 and is scheduled to be sentenced on April 1, 2020.
Raveendran pleaded guilty on November 14, 2019 and will be sentenced on February 28, 2020.
“Those who commit bank fraud cause serious damage by stealing money from their victim’s bank accounts, driving up business costs, and undermining confidence in the banking system,” said U.S. Attorney Murray. “We will not hesitate to seek federal prison sentences for those who attempt to steal hard-earned money from innocent victims. I am grateful to the law enforcement officers whose excellent work led to this successful prosecution.”
“The U.S. Secret Service appreciates the coordination between local, federal and international partners. This cooperation is crucial when investigating trans-national criminal organizations that operate under the assumption they will not be detected in another country,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office.
This matter was investigated by the United States Secret Service, with assistance from the Hudson and Methuen Police Departments. The case is being prosecuted by Assistant U.S. Attorney Matthew Hunter.
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Baltimore Man Sentenced to Nine Years in Federal Prison for His Participation in an Armed Robbery of a RestaurantRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Joseph Coates, age 29, of Baltimore, Maryland, today to nine years in federal prison, followed by five years of supervised release, for an armed commercial robbery in which a firearm was brandished.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
As detailed in guilty plea, on February 21, 2018, Coates and co-conspirator Jason Walker robbed a restaurant in the 2200 block of Wilkins Avenue in Baltimore. Coates admitted that during the robbery, Walker pointed a handgun at one of the victims, while Coates took all the money from the cash register and tip jar. In addition, Coates and Walker took the victims’ personal cell phones before fleeing the restaurant.
After receiving a 911 call to report the robbery, a Baltimore Police officer was canvassing the area and saw two men in an alley who matched the description provided by the victims. The men were standing by a wall counting cash. Officers detained the men and brought one of the victims to the location. That person identified Coates as one of the men that had committed the robbery. Officers arrested and searched Coates and Walker, recovering $272 in cash, a plastic bag full of change, blue bandanas, a black mask, two cellular telephones that belonged to two of the victims of the robbery, and a receipt from the restaurant. Officers also recovered a fully loaded revolver from the area where Coates and Walker were counting money. Walker admitted that it was the gun he brandished during the robbery of the restaurant.
Jason Walker, age 31, of Baltimore, Maryland, was previously sentenced to 121 months in federal prison, for his role in the robbery.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker, who is prosecuting the case.
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Animal Health International Inc. Pleads Guilty to Introduction of Misbranded Drugs into Interstate CommerceRead the Press Release
Abingdon, VIRGINIA – Animal Health International Inc., a Colorado corporation that obtains prescription drugs for animals from manufacturers for further distribution to veterinarians, farms, feedlots, and other facilities, pleaded guilty today, through its corporate counsel, in U.S. District Court to introducing a misbranded drug into interstate commerce. Also, Patterson Companies, Inc. (Patterson) Animal Health International’s corporate parent, entered into a non-prosecution agreement in which it committed to enhance its compliance program and fully comply with the law. United States Attorney Thomas T. Cullen and Special Agent in Charge Mark S. McCormack of the FDA’s Office of Criminal Investigations Metro Washington Field Office, made the announcement today.
Pursuant to the agreements entered into by Animal Health International and Patterson, Animal Health International admitted to introducing and causing the introduction and delivery into interstate commerce of veterinary prescription drugs that were misbranded and agreed to pay $1 million to the Virginia Department of Health Professionals, a $5 million fine, and a forfeiture money judgement of $46,802,203. In past 18 months, Patterson has fully cooperated in the investigation and implemented changes to International’s and its compliance programs to prevent further violations of federal and state law.
“Today’s conviction demonstrates that our office will not tolerate when entities or individuals illegally bypass the important safeguards that exist to protect our nation’s food sources,” First Assistant United States Attorney Daniel P. Bubar said today. “We will continue to work closely with our partner agencies to make sure that veterinary drug distributors uphold their important obligations.”
“The FDA recognizes the importance of controlling the prescription drug supply for animals. The careless or uncontrolled distribution of prescription animal drugs poses a danger not only to the medicated animals but to the U.S. public health by increasing the risk that humans will become resistant to antibiotics that we unknowingly consume through our food supply.,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who distribute prescription animal drugs unlawfully.”
The Food and Drug Administration’s restrictions on veterinary prescription drugs are not primarily to protect animals from the potential harms of prescription drugs, but are to protect the human food supply from unsafe drug residues in the edible tissues of animals sold for slaughter. Common causes of illegal residues include: (1) exceeding the drug’s approved dose; (2) using a shorter withdrawal period than what is stated on the drug’s label (if a higher than approved dose is given, the labeled withdrawal period may not be enough to allow the drug in the edible tissues to deplete to levels that are at or below the tolerance); (3) using a drug in an extra-label manner (for indications and dosages outside the approved labeling) without a veterinarian’s involvement; (4) giving a drug not approved for that species; and (5) using an unapproved route of administration. Drug residues in the nation's drug supply are concerning because: (1) they may contribute to antibiotic resistance in the human population, rendering human drugs less effective to treat human disease and contributing to the mutations of “superbugs”; and (2) they may cause allergic reactions in individuals with certain drug allergies.
According to court documents, from 2012 through 2018, Animal Health International caused misbranded veterinary prescription drug shipments to be made throughout the United States by distributing veterinary drugs from its wholesale locations directly to end users and by distributing veterinary drugs to unlicensed individuals.
Two such unlicensed individuals, Marlin Webb and Billy K. Groce, were not properly licensed to receive, transport, store, distribute, or dispense veterinary prescription drugs. Webb was the store manager of a cooperative in Hillsville, Virginia. The cooperative was not a licensed wholesaler, pharmacy, or veterinary clinic. Groce operated an unlicensed veterinary prescription distribution business. Webb and Groce each obtained veterinary prescription drugs from Animal Health International in interstate commerce without valid prescriptions, and on many occasions, with no prescriptions at all. Webb and Groce previously pled guilty to criminal charges for their conduct in United States District Court in Abingdon.
While, as stated in the charge to which Animal Health International pleaded guilty, Animal Health International obtained not less than $46,802,203 from its illegal shipments, its profits from such shipments were a small percentage of the amount received.
United States District Judge James P. Jones scheduled sentencing for April 28, 2020 at 2:30 p.m.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations with the assistance of the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Aliquippa Man Sentenced for Conspiring to Distribute DrugsRead the Press Release
PITTSBURGH – Darren Martin was sentenced to 27 months in federal prison for conspiring to distribute cocaine and fentanyl, United States Attorney Scott W. Brady announced today.
Martin, age 31 of Aliquippa, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also sentenced Martin to serve three years of supervised release upon his release from prison.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Alcester Man Charged with Wire Fraud and Mail FraudRead the Press Release
United States Attorney Ron Parsons announced that an Alcerster, South Dakota, man has been indicted by a federal grand jury for 12 Counts of Wire Fraud and 8 Counts of Mail Fraud.
Christopher Day, age 31, was indicted on February 4, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 12, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $2,000 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between 2015 and 2019, Day, who worked for Pedersen Machine located in Beresford, South Dakota, knowingly and unlawfully devised a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations, and promises.
The Indictment also alleges that between 2018 and 2019, Day knowingly caused to be sent and delivered by the U.S. Postal Service invoices for transactions involving Day’s shell business, which were sent to Day from his employer.
Day would order parts for himself, which he would resell online. Day would make it appear as though those parts were ordered on behalf of his employer’s customers. He would then cancel the orders, but still keep the parts.
The charges are merely accusation and Day is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Division of Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Day was released on bond pending trial. A trial date has not been set.
Albany Felon Charged with Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Saul McDuffie, age 32, of Albany, was indicted yesterday on a charge of unlawfully possessing a firearm as a felon. The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Chief Eric Hawkins of the Albany Police Department.
The indictment alleges that McDuffie, a felon, possessed a Taurus handgun in Albany on October 28, 2019. The charge carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
McDuffie was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial before Chief United States District Judge Glenn T. Suddaby.
This case is being investigated by the Albany Police Department and HSI, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel L. Williams.
Acushnet Man Pleads Guilty to Conspiring to Distribute Fentanyl and Illegal Firearm PossessionRead the Press Release
BOSTON – An Acushnet man pleaded guilty yesterday in federal court in Boston to conspiracy to distribute fentanyl and illegal firearm possession.
Clifford Gomes, 54, pleaded guilty to one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for June 16, 2020. Gomes was indicted by a federal grand jury on May 15, 2019.
Between January 2018 and April 2019 Gomes conspired with Manuel Pina-Agee, and others, to distribute and possess with intent to distribute fentanyl.
On Nov. 26, 2019, Pina-Agee pleaded guilty to various drug trafficking charges and illegal possession of firearms. Pina-Agee is scheduled to be sentenced on March 27, 2020.
The charge of conspiracy to distribute fentanyl provides for a sentence of up to 40 years in prison, four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the New Bedford, Wareham and Seekonk Police Departments. Assistant U.S. Attorneys Theodore B. Heinrich and Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
64 White Supremacists Sentenced to a Combined 820 Years in Federal PrisonRead the Press Release
Sixty-four individuals with ties to various white supremacist gangs have been convicted and sentenced to a combined 820 years in federal prison following an investigation led by the Texas Department of Public Safety, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
This marks the second round of sentencings in what is believed to be the nation’s largest prosecution of white supremacist gang affiliates. In the first round, announced in August 2017, 89 defendants were convicted and sentenced to a combined 1,070 years in federal prison.
The 64th and final defendant in this round, 51-year-old Garry Cody Jones, was sentenced Thursday by U.S. District Judge Sidney A. Fitzwater to more than 11 years’ imprisonment on a charge of possession with intent to distribute methamphetamine.
All together, this round’s defendants – members or affiliates of white supremacists gangs including Aryan Circle, Aryan Brotherhood, the Peckerwoods, Soldiers of Aryan Culture, and the Dirty White Boys – were sentenced for trafficking more than 1,600 kilos of meth, 59 firearms, and various other drugs, including cocaine and heroin, between 2015 and 2018, according to court records.
Several of the defendants, including Ralph Adams, aka “Evil,” and Jerry Lunsford, aka “Looney,” kidnapped, threatened, and assaulted individuals they believed had stolen their drug proceeds. One defendant, Justin Mark Nelson, aka “Nazi,” even admitted to using a hatchet to amputate a victim’s finger in retribution for a purported drug debt. Another defendant, Joshua Lane, who sports a large tattoo of Adolf Hitler on his head, attempted to run over officers during his arrest.
“Not only do white supremacist gangs endorse repugnant ideologies, they also facilitate a violent drug and gun trade, putting our citizens in grave danger,” said U.S. Attorney Erin Nealy Cox. “We were alarmed – but not necessarily surprised – at the quantities of drugs and firearms recovered during this investigation. The U.S. Attorney’s Office is committed to working with our law enforcement partners to dismantle these organizations, disrupt their criminal activities, and put their members behind bars.”
“Thanks to the hard work of our investigators and the diligence of the U.S. Attorney’s Office, 64 criminals are now off our streets and out of our communities,” said Texas DPS Regional Director Jeoff Williams. “Effective law partnerships are vital to operations like this and are instrumental in the making the state of Texas a safer place to live.”
The vast majority of defendants charged in this round, with charges announced in May 2018 following a massive takedown, had violent criminal histories. Combined, they had 587 prior convictions; certain defendants had as many as 28 prior convictions.
This investigation was led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID) Gang Unit and the Dallas Police Department. The U.S. Marshal Service North Texas Fugitive Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, and the Garland Police Department assisted in the investigation.
The Texas Anti-Gang Center, or TAG, coordinated the law enforcement operation. The TAG serves as the unified headquarters for roughly 100 of the region’s most knowledgeable and experienced federal, state and local anti-gang investigators, analysts and prosecutors.
Assistant U.S. Attorney P.J. Meitl was in charge of these prosecutions.
13 Defendants Charged with Submitting Millions of Dollars in False Transportation Claims to MedicaidRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of the New York Field Office of the Department of Homeland Security Investigations (“HSI”), Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), and Dennis Rosen, New York State Medicaid Inspector General (“OMIG”), announced the unsealing of a Complaint charging thirteen defendants with participating in a scheme to steal millions of dollars from New York State’s Medicaid program through fraudulent claims related to transportation services.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants exploited and abused Medicaid, billing millions of dollars for phantom medical transportation services. Medicaid is intended to provide financial assistance to those in need. These defendants allegedly treated the Medicaid program that pays for medical transport as an opportunity to steal from Medicaid, which is indirectly stealing from American taxpayers. Now they face prosecution for their alleged crimes.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “It is alleged that these individuals schemed to defraud the Medicaid program out of millions of dollars, in turn robbing all those who rely on it for their vital healthcare needs. More than a dozen were involved in this plan to charge for services not rendered, and HSI working with its law enforcement partners arrested those who sought to make a profit at the expense of those in need and will continue to do so.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Millions of people in New York depend on Medicaid for vital services, and taxpayers across the country pay for that care. We will continue close cooperation with our State and Federal law enforcement partners to preserve this essential funding.”
NYS Medicaid Inspector General Dennis Rosen said: “Today’s arrests send an unmistakable message to those who seek personal gain by preying upon vulnerable New Yorkers and exploiting the Medicaid program. My office will continue to work closely with our federal partners to protect Medicaid recipients, save taxpayer dollars, and hold wrongdoers fully accountable.”
As alleged in the criminal Complaint unsealed today:
From in or about August 2017 to February 2020, KJ Transportation C Services Inc. (“KJ”) was paid more than $20 million for providing transportation services for Medicaid enrollees in the New York City area.
JORGELINA ABREU GIL, 32, of Yonkers, New York, is the owner of KJ. Her husband, JULIO ALVARADO, 59, of Yonkers, is a manager at the company. Beginning in August 2017, KJ began submitting claims to Medicaid for purported medical transportation services for eligible people in the New York area. From August 2017 to February 2020, KJ submitted more than 100,000 claims related to hundreds of thousands of trips. However, a large percentage of those claims were fraudulent. In some instances, the Medicaid recipient was deceased or out of the country when KJ claimed it was transporting that person to medical appointments. In other instances, the Medicaid recipient had never heard of KJ and had never taken any rides with the company. In yet other instances, the Medicaid recipient had received unlawful “kickbacks” from defendants in exchange for either giving KJ his/her Medicaid information, or for fraudulently scheduling trips he/she did not take.
In hundreds of instances, defendants called Medicaid’s transportation management company for the New York City area and scheduled trips on behalf of Medicaid enrollees. On these calls, the defendants tried to schedule reoccurring trips several times per week that would go on for months, allowing them to bill dozens of trips to Medicaid without having to schedule each trip individually. In other instances, defendants scheduled trips online. ABREU GIL attested to nearly all of the trips, fraudulently certifying that the trips actually took place when, in fact, most did not.
HECTOR SALAZAR HERRERA, 27, of the Bronx, New York, ZORAIDA GONZALEZ, 44, of Yonkers, New York, YESENIA RODRIGUEZ, 37, of Yonkers, JOSE RIVERA, 26, of the Bronx, FABIAN MORGAN, 39, of the Bronx, VICTORIA PALMA BREA, 32 of the Bronx, CRISTOPHER SANTOS FELIX, 28, of the Bronx, JOHN MANUEL MEJIA, 41, of the Bronx, JOSE JIMENZ HIDALGO, 42, of the Bronx, FRANCISCO SALAZAR, 68, of the Bronx, and NELSON DIAZ, a/k/a “Abdul Alamin,” 56, of the Bronx, acted as “drivers” or “recruiters” of Medicaid enrollees. As detailed in the Complaint, the defendants variously paid Medicaid enrollees to schedule fraudulent trips, paid unlawful kickbacks to Medicaid enrollees, and fraudulently scheduled trips that never took place. In exchange for their work, the “drivers” or “recruiters” were paid up to hundreds of thousands of dollars.
* * *
ABREU GIL, ALVARADO, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, MEJIA, JIMENEZ HIDALGO, SALAZAR, and DIAZ were arrested this morning and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. SANTOS FELIX was already in federal custody on unrelated charges and will be presented at a later date.
ABREU GIL, ALVARADO, SALAZAR HERRERA, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, SANTOS FELIX, MEJIA, JIMENZ HIDALGO, SALAZAR, and DIAZ are each charged with one count of submitting false claims, in violation of 18 U.S.C. § 287; one count of theft of government funds, in violation of 18 U.S.C. § 641; one count of aggravated identity theft, in violation 18 U.S.C. § 1028A; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of health care fraud, in violation of 18 U.S.C. § 1347; one count of conspiracy to commit wire fraud and health care fraud, in violation of 18 U.S.C. § 1349; and one count of violating the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b. In addition, ABREU GIL and ALVARADO are each charged with one count of money laundering, in violation of 18 U.S.C. § 1957.
The crime of submitting false claims carries a maximum sentence of five years in prison. The crimes of theft of government funds, health care fraud, money laundering, and violating the Anti-Kickback Statute each carry a maximum sentence of 10 years in prison. The crime of wire fraud carries a maximum sentence of 20 years in prison. The crime of aggravated identity theft carries a mandatory two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
On February 14, 2020, law enforcement officers also executed seizure warrants in an effort to recover millions of dollars in fraud proceeds obtained by the defendants.
Mr. Berman praised the outstanding work of HSI, HHS-OIG, and OMIG. He also thanked the City of Yonkers Police Department, the New York City Police Department, the New York Attorney General’s Medicaid Fraud Control Unit, and United States Customs and Border Protection for their assistance in the case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Kedar S. Bhatia is in charge of the prosecution.
As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
13 February 2020
Woman who schemed to hide millions from Bankruptcy Court sentenced to 3+ years in prisonRead the Press Release
Seattle – A former Bellevue, Washington, resident who relocated to Miami, was sentenced today in U.S. District Court in Seattle to 38 months in prison, three years of supervised release, and $2,359,914 in restitution for bankruptcy fraud. MARINA BONDARENKO, 38, operated a ‘work-at- home’ email scheme that ultimately crashed – but not before she and her partner raided the cash to purchase homes, expensive cars, and a yacht. The two set up a series of trusts to try to hide the diverted assets from the bankruptcy trustee after the sham company declared bankruptcy. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said he was concerned about respect for the law. “She submitted false documents in two different judicial proceedings,” Chief Judge Martinez said. “She committed perjury – she took the witness stand and lied.”
According to records filed in the case, between July 2013 and March 2014, BONDARENKO and her partner, Volodimyr Pigida, siphoned off more than $3 million from a company they had established that essentially operated as a Ponzi scheme. The pair used the money to purchase four properties, a yacht, and numerous cars. As the Ponzi scheme unraveled, the company filed for bankruptcy protection. BONDARENKO and Pigida never revealed to the bankruptcy court that they had looted the company coffers and transferred assets purchased with that money to ten trusts they had established. In all, the pair attempted to conceal $3,334,750 in assets from the bankruptcy court and creditors.
BONDARENKO and her now-husband Pigida were indicted for conspiracy, mail, wire, and bankruptcy fraud in November 2018. In September 2019, BONDARENKO pleaded guilty to bankruptcy fraud. Pigida is scheduled for trial on the indictment in September 2020.
The company the two formed, Trend Sound Promoter AMG Corp., was supposed to conduct advertising and music promotion over the internet. The couple sold Ad-promoting packages whereby those who bought a package were to be paid for email marketing. The couple made claims to those purchasing the packages that they could make big money for sending emails on Trend Sound’s behalf. In reality, the only money being generated was from those purchasing the packages, and it was used to pay earlier purchasers as in a typical Ponzi scheme. As purchasers got wise and the money started to run out, BONDARENKO and Pigida accelerated their looting of the company, eventually transferring $3.3 million out of the company for their personal benefit.
The two even filed suit in King County Superior Court in an attempt to stop an unhappy customer from warning others about the company’s sham offering. In her plea agreement, BONDARENKO admitted to providing perjured testimony in that proceeding.
The case is being investigated by the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Marie Dalton.
Wichita Bank Robber Did Not Get FarRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today in federal court to robbing a bank, U.S. Attorney Stephen McAllister said.
Timothy B. Riggans, 57, Wichita, Kan., pleaded guilty to committing a robbery July 30, 2018, at Emprise Bank, 257 N. Broadway in Wichita. Riggans approached a teller and demanded money. A security guard apprehended him outside the bank with the stolen money.
Sentencing is set for May 11. He could face a penalty of up to 20 years in federal prison and a fine up to $250,000.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Waterbury Gang Member Admits Role in Shootings that Killed and Wounded Innocent BystandersRead the Press Release
U.S. Attorney John H. Durham, Waterbury State’s Attorney Maureen Platt, ATF Boston Field Division Special Agent in Charge Kelly D. Brady, FBI New Haven Division Special Agent in Charge Brian C. Turner, and Waterbury Police Chief Fernando C. Spagnolo, today announced that JERMAINE GILBERT, 21, of Waterbury, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to racketeering, firearm possession and drug trafficking offenses stemming from his participation in a violent Waterbury street gang.
According to court documents and statements made in court, this matter stems from a long-term investigation into drug trafficking and numerous acts of violence being committed by members of “960,” a street gang operating in Waterbury’s north end. During the investigation, ATF, FBI and Waterbury Police investigators have analyzed dozens of shooting incidents between 960 members and members of rival gangs. Some of the shootings resulted in innocent bystanders being killed or seriously wounded.
In pleading guilty, Gilbert, a member of 960, admitted that he and other members and associates of 960 engaged in narcotics distribution and acts of violence, including murder and assaults. Gilbert specifically admitted that, on October 6, 2018, he and other 960 members intended to shoot a rival gang member who they believed had been disrespectful to 960, but instead wounded an innocent bystander. On October 11, 2018, Gilbert and his associates conspired to shoot another rival gang member, but instead killed an innocent bystander and paralyzed a second innocent bystander. On November 18, 2018, Gilbert and other 960 members shot and wounded the rival gang member who was their intended target on October 6, 2018. During this shooting, another innocent bystander was wounded.
Gilbert has been detained since his arrest on May 17, 2019. At the time of his arrest, he possessed a .22 caliber Beretta pistol, a 9mm Taurus pistol, multiple rounds of ammunition, and heroin that he intended to distribute.
Gilbert pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, which carries a maximum term of imprisonment of life, one count of possession with intent to distribute heroin, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive prison term of at least five years.
“Through a reinvigorated Project Safe Neighborhoods program in Waterbury, the ATF, FBI and Waterbury Police have identified several reckless gang members who wreaked havoc in the city and killed or maimed not only each other, but, more important, multiple innocent bystanders,” said U.S. Attorney Durham. “I thank our law enforcement partners, specifically Chief Spagnolo, for their committed efforts, and the Waterbury State’s Attorney for agreeing to bring the force of both the state and federal justice systems to help put an end to this mindless violence and remove these bad actors from the community for a long time. Clearly, this investigation is ongoing.”
“The Waterbury State’s Attorney’s Office would like to express their gratitude to the U.S. Attorney’s Office and the federal law enforcement agencies involved for their hard work and commitment in helping to end the violence brought about by gang activity in this area,” said Waterbury State’s Attorney Platt. “We would also like to commend the professionalism and dedication of the Waterbury Police Department in this multi-agency investigation and prosecution.”
“ATF will continue working with our local, state and federal law enforcement counterparts to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade,” said ATF Special Agent in Charge Brady. “This is another example of ATF’s commitment to rid our communities of dangerous criminals, drugs and illegal firearms.”
“The Waterbury Police Department and all of the law enforcement partners have done a phenomenal job in rooting out those members of a violent street gang responsible for the senseless shootings of innocent residents of the community,” said FBI Special Agent in Charge Turner. “We at the FBI are committed to assisting Waterbury Police in every way possible to destroy gang-related crimes in and round the city.”
“The Waterbury Police Department is proud of its partnerships with the ATF and FBI and appreciative of the strong support from the U.S. Attorney and Waterbury State’s Attorney and the members of their respective offices,” said Waterbury Police Chief Spagnolo. “These committed partnerships are the backbone in making our community a safer place and keeping it that way through targeting violent crime problems in our City, along with education and community outreach.”
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson, Patrick F. Caruso and Natasha M. Freismuth, and Assistant State’s Attorneys Cynthia S. Serafini and Don E. Therkildsen, who have been cross designated as Special Assistant U.S. Attorneys in this matter.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Vance County Man Sentenced to More Than Six Years Imprisonment on Drug and Gun ChargesRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge James C. Dever, III, sentenced PRESTON OBRYAN MILES, 35, of Kittrell to 78 months’ imprisonment, followed by 3 years of supervised release. MILES was named in a two-count Indictment on July 10, 2019, charging him with possession with intent to distribute heroin and cocaine and possession of firearms in furtherance of a drug trafficking crime. On November 1, 2019, he pled guilty to the Indictment.
According to the investigation, on Saturday, July 21, 2018, a Franklinton Police Department officer was on patrol near NC 56 in Franklinton, North Carolina, when he saw a black Toyota Camry with heavily tinted windows. As he began following the Camry, he could smell marijuana, and he noticed that the smell diminished when he switched lanes away from the car. The officer ran the tag and also found that the registered owner had an expired license.
The officer initiated a traffic stop and made contact with the driver, who was identified as MILES. The smell of marijuana was strong, and the officer spotted several partially smoked marijuana cigarettes inside the car. Backup arrived and officers searched the car. They noticed that the carpet liner in the trunk was not attached on the edges. In the space between the carpet liner and the frame of the car, officers found a plastic bag containing a cardboard box, which itself contained two bricks of heroin—approximately 100 single-dose bags. The box also contained two loose bindles of 10 bags each, a plastic baggie of approximately 3 grams of raw heroin, and tools of the drug trade, including a wooden stamp with a Mercedes symbol, a bag of small rubber bands, and scotch tape. Further back between the carpet liner and side of the car, officers found a black FN 5.7x28mm pistol.
Officers later reviewed communications from jail, in which Miles, in discussing his car, directed a woman to get items out of “the head” and stated that that “I got a brick in the head.” On July 26, 2018, law enforcement obtained a search warrant to re-search the car. They found a digital scale hidden in a hole in the bottom of the passenger seat headrest, and behind the scale, they found a brick of heroin and a plastic bag of cocaine. Using a camera to search deeper into the area between the carper liner and the passenger side of the car, officers located a second handgun, a Smith & Wesson revolver.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Franklinton Police Department, State Bureau of Investigation, and Department of Homeland Security conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
VELVA, ND Woman and MINOT, ND Man Arrested for Multiple Counts of Producing, Receiving and Distributing Child PornographyRead the Press Release
Bismarck – United States Attorney Drew H. Wrigley announced that two co-defendants have been indicted and detained on federal child exploitation charges. On February 11, 2020 Katie Heidinger of Velva, ND made her initial court appearance on Six Counts of Producing Sexually Explicit Images of Minors and One count of Distribution of Sexually Explicit Images of Minors. Today in federal court, Magistrate Judge Hochhalter ordered that Heidinger be detained without bond, pending trial. Co-defendant Derrick Walker of Minot, ND is charged by the grand jury with the same six counts of production and is also charged in separate count of Receipt of Images Depicting the Sexual Exploitation of Minors. On February 10, 2020, Walker was ordered to be detained, pending trial on the matter. An Indictment is an accusation and notice of charges, and the defendants are presumed innocent until proven guilty.
"The Federal grand jury has issued indictments alleging numerous counts of child sexual exploitation against Katie Heidinger of Velva, ND and Derrick Walker of Minot, ND," said U.S. Attorney Drew Wrigley "and we are preparing to move toward trial and justice for the multiple child victims in this case."
The federal grand jury indictment alleges that Katie Heidinger possessed numerous videos and images depicting the sexual exploitation of minor children "John Doe One", "John Doe Two", "John Doe Three", "John Doe Four", "Jane Doe One", and "Jane Doe Two". Federal and State investigators allege that Katie Heidinger was involved in a romantic relationship with Derrick Walker and that Heidinger produced and distributed the videos and images, using the internet, at Walker’s request. Heidinger was initially arrested and charged in McHenry County, ND, and remains charged there with multiple counts of Gross Sexual Imposition. Walker was arrested and initially charged in Ward County and currently has no state charges pending.
This case was investigated by the McHenry County Sheriff’s Office, Ward County Sheriff’s Office, North Dakota Bureau of Criminal Investigation, and the Department of Homeland Security, Minot Office.
Assistant United Sates Attorney Gary Delorme is prosecuting the case.
Utah Tax Return Preparers Indicted for Tax CrimesRead the Press Release
A federal grand jury in Salt Lake City, Utah, returned an indictment today charging Sergio Sosa, and his adult children, Alissa and David Sosa, with conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney John W. Huber for the District of Utah. Sergio Sosa was also charged with one count of tax evasion, and he and his children were also each charged with one count of corruptly endeavoring to obstruct the administration of the internal revenue laws.
According to the indictment, Sosa owned and operated Sergio Central Latino (SCL), a tax return preparation business in Orem, Utah, where both Alissa and David worked. From 2003 through 2017, Sosa allegedly did not timely file his personal tax returns and after multiple audits, the Internal Revenue Service (IRS) determined that he owed more than $750,000 in unpaid taxes. When the IRS began collection efforts, Sosa and his children allegedly agreed to obstruct IRS collection of the outstanding taxes by hiding Sosa’s personal assets, residential properties, and by titling SCL in the children’s names.
The indictment also alleges that when the IRS suspended SCL’s ability to electronically file client tax returns due to Sosa’s unpaid taxes, David Sosa changed SCL’s business name and obtained electronic filing authorization in a third party’s name. It is further alleged that Alissa Sosa falsely represented to the IRS that she owned a residence that was, in fact, her father’s, and that she withdrew funds from an account that she knew had been levied by the IRS. As of 2019, Sosa allegedly owes more than $1.1 million in taxes, penalties, and interest.
If convicted, the Sosas each face a statutory maximum sentence of five years in prison for the conspiracy charge and three years in prison for corruptly endeavoring to obstruct the administration of the internal revenue laws. Sergio Sosa faces an additional five years in prison for tax evasion. The Sosas also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Ruth Hackford-Peer, and Trial Attorney Erin S. Mellen of the Tax Division, who are prosecuting the case.
Two headed to prison for selling machine guns destined for MexicoRead the Press Release
McALLEN, Texas — Two South Texas men have been ordered to federal prison following their convictions of transferring machine guns, announced U.S. Attorney Ryan K. Patrick.
Martin Guerra, 44, Palmview, and Saul De La Garza, 46, Sullivan City, pleaded guilty Nov 25, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced Guerra to 50 months in federal prison while De La Garza, a previously convicted felon, received a total 78-month term of imprisonment. Both men will then serve three years of supervised release following completion of their prison terms. In handing down the sentence, Judge Alvarez stressed the significant nature of the crime both men committed and noted the demand for firearms in Mexico.
Both men had attempted to coordinate the sale of three machine guns - two Glock auto-switches and an AR-style rifle - to undercover authorities. The men believed the weapons would ultimately be illicitly transported to Mexico. Through the course of the investigation, Guerra bragged that he would be able to provide as many weapons as desired. De La Garza claimed he would be able to transport firearms from Houston to the Rio Grande Valley and coordinated with Guerra to make the sale of the machine guns.
Guerra has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future, while Garza was permitted to remain on bond and voluntarily surrender at a later date.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Mitchell Prosecuted the case.
Two Members of Bronx Gang Charged with Racketeering, Firearms, and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging two members of the Woodycrime gang (“Woodycrime”) with various racketeering, firearms, and narcotics offenses, including assault with a deadly weapon and attempted murder in aid of racketeering for committing a June 7, 2018, shooting in Nelson Playground in the Bronx, during which two individuals, including a 13-year-old child, were struck by gunfire.
The defendants, MARVIN GAMONEDA, a/k/a “June,” and LUILLY FERNANDEZ, a/k/a “Luigi,” were taken into custody yesterday evening. They will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants carried out a shooting in a playground that injured two individuals, including a child. Thanks to the extraordinary work of the FBI and the NYPD, the defendants now face federal charges for their crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, these men fired off weapons at a playground, and a child was hit, all because they wanted to protect their turf. It’s not their turf, it’s not their land, they don’t own it, and everything they’re allegedly doing is illegal and potentially deadly. I want to commend the outstanding work of the New York FBI/NYPD Metro Safe Streets Task Force for the investigation that led to the arrest of these two men, and doing all they can to get alleged criminals who show no respect for anyone’s life out of the communities they’re terrorizing.”
NYPD Police Commissioner Dermot Shea said: “The NYPD, in close cooperation with our federal partners, is making New Yorkers safer by focusing significant resources on the relatively small percentage of criminals responsible for much of our city’s crime and disorder. I commend the NYPD officers, federal investigators, and prosecutors whose hard work resulted in these arrests and charges.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
Woodycrime was a criminal enterprise involved in committing numerous acts of violence, including attempted murders and assaults, as well as drug dealing in the Bronx. Members and associates of Woodycrime engaged in violence to retaliate against rival gangs, to preserve and expand the gang’s territory, and to protect the gang’s narcotics business. Members and associates of Woodycrime enriched themselves by selling drugs, such as crack cocaine, marijuana, oxycodone, and MDMA or “ecstasy.”
The Indictment charges GAMONEDA and FERNANDEZ in Count One with participating in a racketeering conspiracy. Counts Two through Four charge the defendants with conspiracy to commit murder, assault with a deadly weapon and attempted murder in aid of racketeering, and a related firearms offense in connection with the Nelson Playground shooting. Counts Five and Six charge the defendants with narcotics conspiracy and a related firearms offense. Count Seven charges GAMONEDA with being a felon in possession of ammunition.
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Charts containing the names, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and the FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Karin Portlock and Andrew Chan are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
MARVIN GAMONEDA (33)
LUILLY FERNANDEZ (26)
20 years in prison
2
Conspiracy to commit murder in aid of racketeering
18 U.S.C. § 1959
MARVIN GAMONEDA
LUILLY FERNANDEZ
10 years in prison
3
Assault with a deadly weapon and attempted murder in aid of racketeering
18 U.S.C. § 1959
MARVIN GAMONEDA
LUILLY FERNANDEZ
20 years in prison
4
Using and carrying firearms during and in relation to, and possessing firearms in furtherance of, a crime of violence, which firearms were discharged
18 U.S.C. § 924(c)
MARVIN GAMONEDA
LUILLY FERNANDEZ
Life in prison
Mandatory minimum of 10 years in prison
5
Narcotics trafficking conspiracy
21 U.S.C. § 846
MARVIN GAMONEDA
LUILLY FERNANDEZ
5 years in prison
6
Using and carrying firearms during and in relation to, and possessing firearms in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c)
MARVIN GAMONEDA
LUILLY FERNANDEZ
Life in prison
Mandatory minimum of 5 years in prison
7
Possessing ammunition after being convicted of a felony
18 U.S.C. § 922(g)
MARVIN GAMONEDA
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Two MS-13 Members Each Sentenced to 27 Years in Federal Prison for Participating in a Violent Racketeering Conspiracy, Including MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced two MS-13 gang members, Jose Alberto Sibrian Garcia, a/k/a Chango, age 28, and Carlos Hernandez Diaz, a/k/a Positivo, age 29, both of Silver Spring, Maryland, to 27 years each in federal prison, followed by five years of supervised release, on a federal racketeering charge related to their participation in a violent racketeering conspiracy, specifically MS-13, including murders. Hernandez Diaz was sentenced today and Sibrian Garcia was sentenced yesterday.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“MS-13 members are committing horrifying acts of violence in Maryland. We must not allow these criminals to ravage our communities, spreading fear in their wake,” said U.S. Attorney Robert K. Hur. “Federal, state, and local law enforcement will use all the tools at our disposal to arrest and prosecute gang members who prey on our neighbors. We will not rest until we dismantle this organization to make Maryland safer.”
“Today’s sentence takes out a small part of the plague that has spread throughout our communities. And while it means these defendants will be off the streets for decades, our work is not done,” said Jennifer Boone, Special Agent in Charge of the Baltimore Field Office of the FBI. “Together, working with our civic and community partners, the law enforcement community will be relentless in our pursuit of these gang members until our streets are safe from the scourge of MS-13.”
“MS-13 perpetuates senseless violence in our communities,” said HSI Baltimore Special Agent in Charge John Eisert. “Through coordination with our local and federal partners, domestically and abroad, we will continue in our mission to disable and dismantle MS-13.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other Central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. From 2016 and 2017, respectively, Sibrian Garcia and Hernandez Diaz were members and associates of the Fulton Locotes Salvatrucha clique of MS-13.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to their plea agreements, Sibrian Garcia and Hernandez Diaz conspired with other MS-13 members and associates to engage in racketeering activity including murders, conspiracies to commit murder, attempted murders, extortion, robbery, and drug trafficking, in order to further the interests of the gang.
Attempted Murder in Wheaton Specifically, in July 2016, another MS-13 gang member identified Victim 9 as a suspected rival gang member and directed Sibrian Garcia and other MS-13 members to arrange to lure Victim 9 to a secluded area in Wheaton Park in order to murder him, however, Victim 9 refused to go to the secluded area. After that, another MS-13 member found Victim 9 on the street and shot him. Victim 9 survived.
Murder in Wheaton Sibrian Garcia also admitted that in March 2017, he and other MS-13 gang members brought Victim 13 from Annapolis to Wheaton Regional Park in Wheaton, Maryland, where other MS-13 gang members had dug a grave and gathered weapons. When Victim 13 arrived, Sibrian Garcia and other MS-13 gang members attacked him with a machete and knives, killing him. Victim 13’s body was then dismembered and buried in the grave. In September 2017, investigators recovered Victim 13’s body from the grave in Wheaton. As detailed in the plea agreement, the medical examiner found that the cause of death was homicide. The body had suffered numerous blunt and sharp force traumas, the victim’s head had been severed, and his heart had been removed.
Murder in Frederick As detailed in Hernandez Diaz’s plea agreement, in April 2017, MS-13 gang members found Victim 14 in Silver Spring, Maryland, and called Hernandez Diaz and others to confirm that Victim 14 was a rival gang member. After receiving confirmation that Victim 14 was a rival gang member, they arranged with other gang members to identify a place in Frederick, Maryland where the victim could be killed and contacted other gang members to arrange to transport Victim 14 to Frederick. Victim 14 was transported by MS-13 members to Frederick City Watershed off Gambrill Park Road in Frederick, where they had dug a grave and gathered weapons. When Victim 14 arrived, some gang members hit him with a tree branch and then Hernandez Diaz and other gang members attacked him with a machete and knives until he was dead. Victim 14’s body was then dismembered and buried in the grave. Victim 14’s remains were found in June 2017.
Assaults in Wheaton According to his plea agreement, on June 14, 2017, Sibrian Garcia and other MS-13 gang members were at Wheaton Regional Park in Wheaton, Maryland when they saw Victim 15 and Victim 16, who they suspected were rival gang members. Sibrian Garcia and other gang members found Victims 15 and 16 in a bathroom and forced them out at knife-point. Sibrian Garcia and the other gang members hit Victims 15 and 16 with branches, fists, and feet and talked about killing them with the knife. When bystanders approached, Sibrian Garcia and the other gang members ran away. The victims’ cell phones were stolen. Both victims were transported to the hospital for their injuries.
The defendants admitted that the murders, attempted murder and assault of these victims was intended to maintain and increase the status of MS-13 and allow members to maintain or increase their status within the gang.
Drug Distribution Finally, as stated in their plea agreements, members of the Fulton clique, including Sibrian Garcia and Hernandez Diaz, also conspired to distribute marijuana. As a part of that conspiracy, gang members would obtain bulk quantities of marijuana and then break it up for distribution. At least a portion of the proceeds from the drug sales would go to the gang to further its objectives. It was reasonably foreseeable to Sibrian Garcia and Hernandez Diaz that the conspiracy would distribute at least five kilograms of marijuana.
A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019. A total of 13 defendants have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Three Members of an Eastern Shore Drug Trafficking Organization Sentenced to Five, Eight, and Eleven Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Three members of an Eastern Shore drug trafficking organization have been sentenced to federal prison on drug conspiracy charges. U.S. District Judge Richard D. Bennett sentenced the three co-defendants to terms of imprisonment ranging from just over five years to just over 11 years.
Today, James Eley, age 34, of Millsboro, Delaware, was sentenced to 63 months in federal prison, followed by four years of supervised release, for a drug distribution conspiracy involving heroin and fentanyl. On February 10, 2020, co-defendant James Martel Frazier, age 34, of Cambridge, was sentenced to 135 months—just over 11 years—in federal prison, followed by five years of supervised release, on the conspiracy charge and a related firearms charge. On January 15, 2020, co-defendant Jason Brittingham, age 37, of Federalsburg was sentenced to eight years in federal prison, followed by four years of supervised release, for his role in the organization.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; the members of the Dorchester County Narcotics Task Force, including: Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Dorchester County Sheriff James W. Phillips, Jr.; Chief Mark Lewis of the Cambridge Police Department; Chief Bruce Jones of the Hurlock Police Department; Caroline County Sheriff Randy Bounds, Chief Rodney R. Cox of the Denton Police Department, and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. We are committed to working with our federal, state, and local law enforcement partners to arrest and prosecute those who bring these deadly drugs to our communities. Drug dealers take note, just like these defendants you can face years in federal prison, where there is no parole—ever.”
“We continue to fight against the devastating impact that opioids have on our community,” said John Eisert, special agent in charge, HSI Baltimore. “This investigation’s success is a direct result of the strong partnership between HSI Baltimore and our local, state and federal law enforcement partners.”
According to their plea agreements, the defendants were all part of narcotics conspiracy that was being investigated by the Dorchester County Narcotics Task Force and Homeland Security Investigations beginning in 2018. The conspirators were responsible for trafficking significant amounts of fentanyl, heroin, and other drugs in the Delmarva area.
During the investigation, Frazier was identified as personally distributing significant quantities of drugs, as well as working with his co-defendants and other to facilitate the distribution of drugs on behalf of the conspiracy. For his part, Brittingham helped store and distribute drugs on behalf of the organization, maintaining a “stash house” in Federalsburg, Maryland. According to his plea agreement, Brittingham delivered heroin, fentanyl, cocaine, and crack cocaine from the stash house to other locations and to customers.
Eley was arrested in conjunction with a traffic stop conducted by the Delaware State Police on December 13, 2018. A subsequent search of Eley’s vehicle revealed 10 cardboard boxes stamped with a red apple logo. Inside each box were bundles of branded waxed-paper folds, each containing a mixture of fentanyl and heroin. In total, the boxes contained 7,800 paper folds stamped and branded for distribution. The total weight of the fentanyl/heroin mixture in the folds was approximately 130 grams.
On February 23, 2019, law enforcement executed search warrants at locations associated with Frazier and Brittingham in Maryland and Delaware. In total, law enforcement recovered over 250 grams of a mixture of fentanyl and heroin, much of it packaged in individual waxed folds branded with words and/or images; over 250 grams of crack cocaine; over 400 grams of methamphetamine; and over a kilogram of cocaine. In addition, law enforcement recovered four firearms from residences associated with Frazier, including a .357-caliber pistol and a .40-caliber pistol at a residence where Frazier kept drugs, and over $40,000 in cash. Frazier admitted that those firearms were used in furtherance of the conspiracy’s drug trafficking.
United States Attorney Robert K. Hur praised HSI, the Maryland State Police, the Dorchester County Sheriff’s Office, the Cambridge Police Department, the Hurlock Police Department, the Caroline County Sheriff’s Office, the Denton Police Department, and the Delaware State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Christopher J. Romano, who prosecuted the case.
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