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6 February 2020
Georgia Man Pleads Guilty to Carrying 3.4 Kilos of Cocaine on Bus Traveling Through KCRead the Press Release
KANSAS CITY, Mo. – A Georgia man pleaded guilty in federal court today to possessing more than 3.4 kilograms of cocaine that he was transporting through Kansas City on a bus.
Hason R. Davis, 21, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of possessing cocaine with the intent to distribute.
By pleading guilty today, Davis admitted that he was carrying three bundles of cocaine, which weighed a total of 3,447 grams, in a backpack. Kansas City police officers approached Davis at a local bus station on Sept. 3, 2018, after he disembarked from a bus for a layover. Davis gave his consent for the officers to search his carry-on bag, but when asked to search his backpack, he did not respond. Instead, Davis said he need to smoke a cigarette and walked away from the officers, then dropped the backpack and started running. After a short pursuit, he was taken into custody.
Under federal statutes, Davis is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department.
Former Woonsocket Man Sentenced in FBI Safe Streets Task Force Investigation and ArrestRead the Press Release
PROVIDENCE – A former Woonsocket man arrested by members of the FBI Safe Streets Task Force during an investigation into the trafficking of drugs on the streets of Woonsocket was sentenced today to 77 months in federal prison.
James Ruth, 31, was arrested by members of the Safe Streets Task Force on July 2, 2019, following an investigation into his drug trafficking activities, including several electronically monitored sales of crack cocaine.
According to information presented to the court, four of the transactions took place between March 19 and April 30, 2019, during which time Ruth sold between 3.2 grams and 27.42 grams of crack cocaine in exchange for between $170 and $1,200.
Ruth pleaded guilty on October 22, 2019, to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, conspiracy to distribute and possess with intent to distribute cocaine base, and four counts of distribution of cocaine base.
Today, U.S. District Court Judge William E. Smith sentenced Ruth to 77 months imprisonment to be followed by 4 years’ supervised release, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case was prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
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Former Philadelphia Resident Pleads Guilty to Three Drug CountsRead the Press Release
PITTSBURGH, PA - A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to charges of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Mark Carter, 33, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in June 2016, Pennsylvania State Police arranged for a confidential informant to buy crack and heroin from Mark Carter. Carter arranged for Brandon Morris to meet the CI. In exchange for $2,000 in pre-recorded funds, Morris gave the CI three bricks of heroin and one-half of an ounce of crack. On June 27, 2016, the CI purchased heroin and crack from Carter using $2,150 in pre-recorded funds.
On June 28, 2016, troopers executed a search warrant on Morris’ residence located on E. Brady St. in Butler, PA. In the bedroom where Carter was found, troopers recovered a plastic bag containing 39.57g of raw heroin, a plastic bag containing 119.36g of crack cocaine, individual packets of heroin, $7,612.00, including $4,150 pre-recorded funds, and various items of drug paraphernalia.
On July 21, 2016, the CI arranged to buy drugs from Carter. Carter asked the CI to pick up Janell Hunter from the Greyhound Bus Station and to get her a hotel room in Butler. Carter arrived from Philadelphia a short time later. A search warrant on the hotel room revealed a bag containing 80.58g of crack cocaine, 38.83g heroin, and drug paraphernalia.
Judge Bissoon scheduled sentencing for June 23, 2020. The law provides for a maximum sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Carter remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the prosecution of Carter.
Former Kentucky Deputy Jailer Sentenced for Repeatedly Tasing Suicidal Inmate to Punish Him for CursingRead the Press Release
James Eakes, a former deputy jailer with the Fulton County Detention Center in Hickman, Kentucky, was sentenced today to 48 months in prison and one year of supervised release for willfully depriving a Kentucky citizen of his constitutional rights under color of law.
On April 29, 2019, a federal jury convicted Eakes, 54, of willfully depriving an inmate of the right to be free from cruel and unusual punishment by assaulting him with a dangerous weapon. According to evidence and testimony, Eakes repeatedly tased inmate L.B. after L.B. cursed at him.
“The Department of Justice is committed to protecting victims from cruel and unusual punishment,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “As demonstrated by this sentencing the Civil Rights Division will relentlessly pursue justice on behalf of those whose rights were abused.”
“Each of us in law enforcement take an oath to uphold the rights of all; we don’t get to pick and choose,” said U.S. Attorney Russell Coleman for the Western District of Kentucky. “Victims will be protected, and those found to be violating the law will be prosecuted regardless of their position or what office they hold.”
“The FBI will not tolerate correctional officers who violate a person’s civil rights,” said FBI Louisville Special Agent in Charge James Robert Brown Jr. “Former deputy jailer, Eakes, took an oath to protect the inmates under his control. Not only did he abuse his position of authority, but he also betrayed the public’s trust. As civil rights and color of law violations are a top priority of the FBI, we will continue to aggressively pursue law enforcement officials who abuse their power.”
The jury heard evidence that Eakes was first called to L.B.’s cell because L.B. told guards he was suicidal. As required by the jail’s procedures, Eakes and two other female deputy jailers then removed all of L.B.’s possessions from his cell and made L.B. strip naked. Eakes left the cell and closed the door, which automatically locked, leaving L.B. in his cell with only an anti-suicide garment.
The evidence and testimony showed that, after he was locked in his cell, L.B. cursed at Eakes from behind the cell door. Eakes then ordered that the door be unlocked, removed his Taser from his holster, opened the door, and immediately shot L.B. with his Taser. Eakes then entered L.B.’s cell, and, while activating the Taser, repeatedly yelled at L.B. not to curse at him again. Despite the fact that L.B. took no aggressive action towards Eakes and remained slumped against the cell wall, Eakes tased L.B. two additional times.
The FBI Louisville Field Office, Hopkinsville Resident Agency conducted the investigation. Assistant U.S. Attorney Madison Sewell of the Western District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division prosecuted the case.
Former Chief Executive Officer of Mozaic Group Ltd. Sentenced for Bank FraudRead the Press Release
St. Louis, MO –Mary Ann Gibson, 63, of St. Louis, Missouri, was sentenced to 22 months in prison for her role in embezzling from her former employer. Gibson appeared this morning in front of United States District Judge Henry E. Autrey.
According to court documents, Gibson obtained a line of credit for Mozaic Group Ltd. from Enterprise Bank and Trust and subsequently drew down on that line of credit to run the business. From approximately January 2016 through August 2017, Gibson falsely and fraudulently inflated the cash flow of the company she reported to the bank in order to maintain and increase the line of credit from Enterprise Bank and Trust. Mozaic and Gibson thereafter defaulted on the loan because Mozaic did not, in fact, have the cash flow Gibson reported to the bank. Gibson’s fraud resulted in a loss of approximately $2.5 million to the bank.
"Fraud schemes like this victimize more than just the financial institutions, which have a finite amount of money to lend," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "In this case, the embezzled $2.5 million could have been used by other honest businesses that grow our economy."
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Lindsay McClure-Hartman handled the case for the U.S. Attorney’s Office.
Former Baltimore Police Detective Sentenced to 18 Months in Federal Prison for Lying to a Federal Grand JuryRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Detective Carmine Vignola, age 35, of Thurmont, Maryland, to 18 months in federal prison, followed by two years of supervised release, for making false statements to the grand jury, in connection with the planting of evidence at a crime scene.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Prosecuting criminals who work in police agencies is essential both to protect our communities and to support the many honorable officers whose reputations they unfairly tarnish,” said U.S. Attorney Robert K. Hur.
“The public deserves law enforcement officers committed to serve and protect with honesty and integrity,” said Special Agent in Charge Jennifer C. Boone. “This individual and his conspirators violated their sworn duties to uphold the law, abusing their positions of trust. Together with our law enforcement partners, FBI Baltimore will continue to investigate and hold accountable those who violate the laws they have sworn to uphold.”
Carmine Vignola joined the Baltimore Police Department (BPD) as an officer on September 4, 2007, and was promoted to Detective on March 20, 2014. In March 2014, Vignola served on a Special Enforcement Section (SES) unit assigned to BPD’s Western District. Officer 2 was Vignola’s partner and Sergeant Keith Gladstone was the officer-in-charge.
According his plea agreement, on the evening of March 26, 2014, Vignola, who was on duty, was having dinner with Gladstone when Gladstone received a call on his cell phone from W.J., who had just run over an arrestee, D.S., in the front yard of a home in Northeast Baltimore. Gladstone asked Vignola if he had a BB gun. Vignola advised that he did not and Gladstone asked Vignola to call his partner to ask him if he had a BB gun. Vignola then called Officer 2, who was not working that day, and learned that Officer 2 had a BB gun at his home. Gladstone and Vignola drove to Officer 2’s home and retrieved the BB gun. Vignola and Gladstone then drove to the site of D.S.’s arrest on Anntana Avenue and Belair Road in Northeast Baltimore City. Vignola understood that Gladstone had retrieved the BB gun so that Gladstone could plant it at the scene of D.S.’s arrest in an attempt to justify W.J. running D.S. over. Once there, Gladstone exited the vehicle and headed toward the scene. Vignola exited the vehicle but remained near it. Gladstone subsequently returned to the car, without the BB gun, and he and Vignola left the scene.
D.S. was subsequently charged in Maryland state court with possession, use, and discharge of a gas or pellet gun, for the BB gun that Gladstone planted at the scene of D.S.’s arrest, and a number of drug offenses. D.S. was detained on those charges until at least April 2, 2014. On January 16, 2015, the charges were disposed of by nolle prosequi, which is a form of dismissal.
As detailed in his plea agreement, on March 1, 2017, W.J. and six other officers who had been members of the BPD’s Gun Trace Task Force (“GTTF”) were arrested on federal racketeering charges. Thereafter, it became public that multiple GTTF defendants were cooperating and providing information to the United States in an ongoing investigation.
In January 2018, Vignola and Gladstone arranged to meet in person. In order to avoid detection, they arranged the meeting using their wives’ cell phones. Gladstone arranged for the meeting to take place in a swimming pool, to ensure that Vignola was not wearing a recording device. Once Gladstone and Vignola were in the swimming pool, Vignola asked Gladstone words to the effect of, “do you have anything to worry about now, you know, since [W.J.] was arrested, do you have any concerns?” Gladstone responded that the only thing he was worried about was the incident on “Bel Air Road,” which was a reference to the arrest of D.S. Gladstone told Vignola that if he was brought in for questioning by federal law enforcement or prosecutors who had investigated the GTTF, that Vignola should lie about being at the scene and about obtaining the BB gun from Officer 2. Specifically, Gladstone said to tell investigators that he and Gladstone were there for “scene assessment” and that Gladstone had taken the gun from his, Gladstone’s, trunk. Vignola knew that neither of those statements were true because they had not provided any scene assessment and Gladstone and Vignola had obtained the BB gun from Officer 2.
On February 13, 2019, Vignola testified before a federal grand jury in Baltimore that was investigating allegations that the BB gun recovered at the scene of D.S.’s arrest had been planted there by law enforcement. Vignola falsely testified that at Gladstone’s request he called his partner to see if he had a BB gun, but his partner did not, and that after that Gladstone went into the trunk of his vehicle.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked the Baltimore Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted the case.
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Federal Jury Convicts Chicago Man of Illegally Structuring Nearly $350,000Read the Press Release
CHICAGO — A Chicago man has been found guilty of illegally structuring nearly $350,000 in cash deposits in an effort to evade federal reporting requirements.
In 2015 and 2016, ANTUANE KING made at least 37 deposits of less than $10,000 each at seven financial institutions, including the Chicago Firefighters Credit Union. The deposits were structured in an effort to evade federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000. After making all of the structured cash deposits, King later combined all of the money to purchase three residences in Markham, Lynwood, and Homewood.
A federal jury in Chicago on Wednesday convicted King, 49, on two counts of structuring a currency transaction. Each count is punishable by up to five years in federal prison. U.S. District Judge Jorge L. Alonso set sentencing for June 12, 2020.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Christopher V. Parente and Esther Mignanelli.
Essex County Man Sentenced to Prison for Health Care Fraud, Paying KickbacksRead the Press Release
ALBANY, NEW YORK – Arshad Nazir, age 55, of Ticonderoga, New York, was sentenced yesterday to 1 year and 1 day in prison, to be followed by 3 years of supervised release, for conspiring to defraud Medicaid, and conspiring to pay bribes and kickbacks to Medicaid beneficiaries who used his medical transportation service.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- New York State Police Superintendent Keith M. Corlett; and
- New York State Inspector General Letizia Tagliafierro.
Senior United States District Judge Thomas J. McAvoy also ordered Nazir to pay $450,000 in restitution, $50,000 of which Nazir paid immediately following his sentencing.
The sentencing was the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.
Nazir operated Capital Medallion, Inc. d/b/a Avalanche Taxi Service (“Avalanche Taxi”), a Medicaid-funded transportation company based in Ticonderoga. The New York State Department of Health (“DOH”) paid Nazir’s company at least $2.45 million for Medicaid-funded transportation between 2014 and 2018.
As part of his plea on February 12, 2019, Nazir admitted that he committed a variety of frauds against Medicaid and DOH, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Avalanche Taxi; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.
Nazir also admitted that he agreed to pay kickbacks and bribes to Medicaid beneficiaries in order to get these beneficiaries to schedule and keep scheduling medical transportation appointments with Avalanche Taxi. Kickbacks included cash, cigarettes and tobacco, and free goods at Nazir’s convenience store in Ticonderoga.
This case was investigated by the FBI, the New York State Police’s Special Investigations Unit, and the Office of the New York State Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.
Escapee from County Courthouse Sentenced to 51 Months for Being A Felon in Possession of A FirearmRead the Press Release
SAN JOSE – John Penn Bivins, Jr. was sentenced to 51 months in prison for being a felon in possession of a firearm, announced United States Attorney David L. Anderson and United States Marshal Donald M. O’Keefe. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Bivins, 49, formerly of East Palo Alto, Calif., pleaded guilty to the charge on November 6, 2019. According to his plea agreement, Bivins admitted that, on November 26, 2017, he possessed a Smith & Wesson 9mm pistol loaded with 15 rounds of ammunition. Bivins admitted he possessed the weapon and ammunition at the Fairmont Inn in San Leandro, Calif., where law enforcement officers from the U.S. Marshals Service led task force encountered him. Bivins also acknowledged that the pistol he possessed had been stolen and that when law enforcement officers apprehended him, he had escaped confinement for robbery charges in Santa Clara County 20 days earlier. Bivins agreed that he thus possessed the pistol in connection with another felony offense.
On November 6, 2019, the government filed a superseding information, charging Bivins with being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). After waiving his right to prosecution by indictment, Bivins consented to prosecution by information and then pleaded guilty to the charge.
The defendant is currently in state custody, and his sentence will run concurrently with any anticipated state court sentence arising out of the escape charge. In addition to the prison term, Judge Koh sentenced Bivins to a three-year period of supervised release.
Assistant U.S. Attorney Chinhayi Coleman Cadet is prosecuting the case with the assistance of Jessica Leung. The prosecution is the result of an investigation by the United States Marshals Service, Santa Clara County Sheriff’s Office, California Highway Patrol, Vallejo Police Department, and in cooperation with the Santa Clara County District Attorney’s Office.
Eastern Panhandle man admits to heroin chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Karl Justin Dunn, III, of Kearneysville, West Virginia, has admitted to distributing heroin, U.S. Attorney Bill Powell announced.
Dunn, age 32, pled guilty to one count of “Distribution of Heroin.” Dunn admitted to selling heroin in July 2018 in Berkeley County.
Dunn faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This charge is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
District Election Officer and Primary Day Hotline Established by United States Attorney’s OfficeRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced the establishment of a Primary Day hotline that will be monitored throughout Primary Day on February 11, 2020, from 7 am to 8 pm. The hotline number is 603-230-2503. Inquiries and complaints may also be submitted through the United States Attorney’s Office web site at www.usdoj.gov/usao/nh by clicking on the “e-mail us” link.
Assistant United States Attorney Seth R. Aframe of the New Hampshire United States Attorney’s Office will oversee complaints of election fraud and abuse of voting rights in consultation with Justice Department Headquarters in Washington, D.C. In order to respond to these complaints and address any abuse of voting rights, AUSA Aframe will be on duty while the polls are open.
United States Attorney Murray said, “Under our Constitution, the right to vote is fundamental. Protecting the individual right to vote and assuring the legitimacy of the election process are critical Department of Justice priorities. Information about discrimination, intimidation or election fraud should be reported immediately to my office, the FBI, or the DOJ Civil Rights Division."
Complaints about ballot access problems or discrimination may also be made directly to the Civil Rights Division’s Voting Section in Washington, D.C. at 1-800-253-3931.
A Federal Election Fraud Fact Sheet that explains federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.usdoj.gov/usao/nh.
Delaware Facility Supervisor Pleads Guilty in Maryland to Federal Charges of Tax Evasion and Interstate Transportation of Stolen GoodsRead the Press Release
Baltimore, Maryland – Joseph Kukta, age 43, of Laurel, Delaware, pleaded guilty today to federal charges of interstate transportation of stolen goods and tax evasion, in connection with his theft and resale of merchandise being shipped through a commercial mail service.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge John Eisert of U.S. Homeland Security Investigations (HSI) Baltimore.
According to his plea agreement, from 2007 through July 30, 2019, Kukta worked as a Senior Manager at the FedEx facility located in Seaford, Delaware. The facility handled all the FedEx Ground and FedEx Home Delivery packages passing through the Delmarva Peninsula. As the most senior employee at the facility, Kukta oversaw all operational aspects of the facility and supervised over 100 employees and contractors, earning an annual salary of more than $92,000.
Kukta admitted that beginning in 2009 and continuing until June 2019, he stole packages shipped via FedEx and resold the items to Person A, currently living in Colorado, at approximately 50% of the item’s retail price. Kukta then transported the stolen items, using his vehicles and trailers, to Person B who resided in Maryland. Person B is Person A’s father. From 2012 through 2019 Person A made 275 payments to Kukta totaling more than $1.8 million for merchandise worth approximately $3.6 million that was stolen from FedEx.
As detailed in his plea agreement, Kukta stole packages that contained bulk retail goods and merchandise shipped by suppliers including Sony Electronics, Panasonic, Apple and others, intended for delivery to a Walmart Distribution Center in Smyrna, Delaware. Beginning in 2012, Kukta’s theft of packages became frequent and consistent, occurring on a weekly basis in certain months. Kukta identified packages he would steal by accessing FedEx computer systems and reviewing packages that had been loaded onto a FedEx trailer awaiting delivery to the Walmart Distribution Center. Kukta selected specific packages which he believed, based on the shippers of the packages, contained high-end electronics or other merchandise of value that could be easily resold. In 2018, Kukta began to also steal packages from FedEx trailers that were loaded for delivery to a Nike Store in Rehoboth Beach, Delaware.
Kukta went to the FedEx facility on Sundays, holidays, or other times when employees were not at the facility, and removed the packages he previously identified from the FedEx trailers. Kukta attempted to avoid detection by turning off the lights at the facility and blocking certain surveillance cameras with cardboard boxes and other objects. Kukta loaded the stolen packages into his GMC Yukon or into vehicles operated by FedEx contractors and parked at the facility, then drove the vehicles to his rented storage unit in Seaford, where he unloaded and stored the items.
On June 5, 2019, Kukta learned that law enforcement had subpoenaed surveillance footage from the FedEx facility in Seaford. Approximately two weeks later, Kukta went to the storage unit and retrieved the remaining stolen items. Kukta sold that merchandise at an auction house in Lincoln, Delaware.
Kukta also admitted that he evaded paying income taxes on the proceeds of the scheme by failing to report that income on his annual joint federal income tax returns, causing a tax loss to the United States totaling $660,439. To conceal the income, Kukta provided false information to two banks when they questioned why he was receiving money from Company A (which was controlled by Person A). As to each bank, Kukta falsely told bank representatives that he had been selling items from his father’s estate, which he knew was false. Kukta also provided false information to the IRS during a correspondence audit, claiming that the items he had sold on eBay during 2014 were from his father’s estate, not the sale of stolen goods.
Kukta faces a maximum sentence of 10 years in federal prison for interstate transportation of stolen goods; and a maximum of five years in federal prison for tax evasion. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Catherine C. Blake has scheduled sentencing for June 18, 2020 at 9:15 a.m.
United States Attorney Robert K. Hur commended IRS-CI and HSI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case.
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Dark Web Child Pornography Facilitator Pleads Guilty to Federal Charge of Conspiracy to Advertise Child PornographyRead the Press Release
Greenbelt, Maryland – Eric Eoin Marques, age 33, of Dublin, Ireland, pleaded guilty today to conspiracy to advertise child pornography on the dark web. Marques, a dual national citizen of the United States and Ireland, was extradited by Irish authorities and arrived in the United States on March 23, 2019, to face federal criminal charges filed in Maryland on August 8, 2013.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division.
“Child pornography is created by documenting the sexual abuse of children,” said U.S. Attorney Robert K. Hur. “This is an egregious case where one individual facilitated the abuse of more than a million new child victims and attempted to keep the abuse hidden on the dark web. We must do everything we can to bring individuals like Marques to justice in order to keep our children safe.”
“The defendant’s anonymous web service hosted dozens of insidious criminal communities dedicated to the sexual exploitation of children and spread millions of images of that abuse,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “His guilty plea is proof of the Department’s fierce commitment to rooting out those who hide behind anonymous networks to commit serious child exploitation offenses.”
“Today’s guilty plea validates the FBI’s unwavering commitment to stop those who sexually exploit innocent children,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI and its international law enforcement partners will remain steadfast in their pursuit of justice for the world’s most vulnerable victims harmed at the ruthless hands of others.”
According his plea agreement, between July 24, 2008 and July 29, 2013, Marques conspired to advertise child pornography by operating a free, anonymous web hosting service (AHS) located on the “dark web”, an area of the Internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The investigation revealed that the AHS contained over 8.5 million images of child exploitation material and over 1.97 million of these images and/or videos involved victims that were not known by law enforcement. As of July 12, 2013, one child exploitation website hosted on the hosting service reported nearly 1.4 million files were uploaded and accessible by individuals who visited that hidden service.
During 2012 and 2013, FBI special agents and employees using computers in Maryland downloaded more than one million files from that website. As part of the investigation, those files were reviewed and nearly all of the files depict children who are engaging in sexually explicit conduct with adults or other children, posed nude and/or in such a manner as to expose their genitals, in various state of undress, or depict child erotica. A substantial majority of the images downloaded by the FBI depict prepubescent minor children who are fully or partially nude or engaged in sexually explicit conduct.
Marques admits that this offense also involved the distribution of child pornography, which involved minors who were less than twelve years old, to include infants and toddlers, and sadistic or masochistic material or depictions of violence. Marques further admits that he willfully obstructed or impeded the administration of justice with respect to the investigation into this offense.
Marques and the government have agreed that, if the Court accepts the plea agreement, Marques will be sentenced to between 15 and 21 years in federal prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for May 11, 2020 at 2:30 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI’s Violent Crime Section, Child Exploitation Operational Unit and Violent Crimes Against Children International Task Force with significant assistance from the Legal Attaché London Office, Irish law enforcement authorities, An Garda Síochána and EUROPOL. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys Thomas M. Sullivan and Kristi N. O’Malley, and Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of the Justice Department’s Criminal Division’s Child Exploitation and Obscenity Section, who are prosecuting the federal case.
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Dark Web Child Pornography Facilitator Pleads Guilty to Conspiracy to Advertise Child PornographyRead the Press Release
A dual national citizen of the United States and Ireland pleaded guilty in federal court in Maryland to conspiracy to advertise child pornography.
Eric Eoin Marques, 33, of Dublin, Ireland, pleaded guilty before U.S. District Judge Theodore D. Chuang to conspiracy to advertise child pornography. In his plea agreement, Marques admitted that between July 24, 2008, and July 29, 2013, he conspired to advertise child pornography by operating an anonymous web hosting service (AHS).
Marques was extradited to the United States by Irish authorities on March 23, 2019. He was indicted in a four-count indictment alleging that he conspired to, and did advertise and distribute child pornography, between July 24, 2008 and July 29, 2013, by operating the AHS. Sentencing is scheduled for May 11.
“The defendant’s anonymous web service hosted dozens of insidious criminal communities dedicated to the sexual exploitation of children and spread millions of images of that abuse,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “His guilty plea is proof of the department’s fierce commitment to rooting out those who hide behind anonymous networks to commit serious child exploitation offenses.”
“Child pornography is created by documenting the sexual abuse of children,” said U.S. Attorney Robert K. Hur of the District of Maryland. “This is an egregious case where one individual facilitated the abuse of more than a million new child victims and attempted to keep the abuse hidden on the dark web. We must do everything we can to bring individuals like Marques to justice in order to keep our children safe.”
“Today’s guilty plea validates the FBI’s unwavering commitment to stop those who sexually exploit innocent children,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI and its international law enforcement partners will remain steadfast in their pursuit of justice for the world’s most vulnerable victims harmed at the ruthless hands of others.”
According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the “dark web,” an area of the Internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors, violent sexual abuse and bestiality. The investigation revealed that the hosting service contained over 8.5 million images of child exploitation material and over 1.97 million of these images and/or videos involved victims that were not known by law enforcement. As of July 12, 2013, one child exploitation website hosted on the hosting service reported nearly 1.4 million files were uploaded and accessible by individuals who visited that hidden service.
During 2012 and 2013, FBI special agents and employees using computers in Maryland downloaded more than one million files from that website. As part of the investigation, those files were reviewed and nearly all of the files depict children who are engaging in sexually explicit conduct with adults or other children, posed nude and/or in such a manner as to expose their genitals, in various state of undress, or depict child erotica. A substantial majority of the images downloaded by the FBI depict prepubescent minor children who are fully or partially nude or engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána and EUROPOL. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
CEOS Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso and Assistant U.S. Attorneys Kristi N. O’Malley and Thomas M. Sullivan of the District of Maryland are prosecuting the case.
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.
Conway Man Pleads Guilty to Illegal Firearm in Road Rage IncidentRead the Press Release
SPRINGFIELD, Mo. – A Conway, Missouri, man who threatened another driver in a road rage incident pleaded guilty in federal court today to illegally possessing a firearm.
William J.W. Duval, 29, pleaded guilty before U.S. District Judge M. Douglas Harpool to being a felon in possession of a firearm. Duval remains in federal custody pending a sentencing hearing, which has not yet been scheduled.
By pleading guilty today, Duval admitted he was in possession of a Smith & Wesson 9mm semi-automatic pistol on June 19, 2019. Duval was involved in a disturbance with another driver on that date in the area of Glenstone Avenue and Kearney Street. The other driver told police officers that a white Cadillac driven by Duval had drifted into his lane of traffic and that he honked at the vehicle. Duval then flipped him off and showed him a firearm, at which time the other driver called 911.
Officers stopped Duval and searched his vehicle. They found the loaded pistol between the driver’s seat and center console and arrested Duval.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Duval has prior felony convictions for stealing a motor vehicle, theft, burglary, forgery, possession of a controlled substance, and stealing.
Under federal statutes, Duval is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Anthony M. Brown, who is a cross-designated prosecutor from the Missouri Attorney General’s office as part of the Safer Streets Initiative to combat violent crime. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Convicted North Philadelphia Drug Kingpin Sentenced to 30 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Edward Stinson, 30, of Philadelphia, PA was sentenced to 360 months’ imprisonment and five years’ supervised release by United States District Court Judge Paul S. Diamond for leading the Stinson Drug Trafficking Group, which sold crack cocaine in and around the Norman Blumberg Apartment Complex in North Philadelphia from about 2010 through 2015.
In January 2019, the defendant was found guilty at trial of conspiracy to distribute 280 grams or more of cocaine base (“crack”) near a public housing facility, and several related drug charges, including unlawful use of a communication facility in furtherance of a drug felony. Stinson was the leader of the group, and he was assisted in the daily operations of the drug gang by multiple individuals, including his co-defendant at trial, Debra Baylor. They obtained bulk quantities of cocaine from suppliers and arranged for it to be cooked into crack cocaine inside various apartments in Blumberg. The crack cocaine was then distributed on the streets of North Philadelphia, often accompanied by violence that terrorized the neighborhood.
“For at least half a decade, Stinson and the members of his gang controlled the illicit drug market in this neighborhood,” said U.S. Attorney McSwain. “His drug trafficking organization operated 24 hours a day, 7 days a week, tearing at the fabric of the neighborhood at the expense of the families, seniors, and other neighbors living there. Today, justice prevailed and Stinson got what he deserved.”
The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorneys Josh A. Davison and Joseph T. Labrum, III.
Colorado Man Sentenced to Life in Federal Prison for Murder-For-Hire and Enticing 13-Year-Old for SexRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Danny James McLaughlin (59, Littleton, CO) to life in federal prison for using interstate commerce facilities in the commission of murder-for-hire and for enticing a minor to engage in sexual activity. The court also ordered McLaughlin to pay a $300,000 fine.
McLaughlin had pleaded guilty on October 31, 2019.
According to court documents, between April 26 and May 17, 2019, McLaughlin communicated online with someone whom he believed was the father of a 13-year-old girl. Unbeknownst to McLaughlin, the “father” was an undercover federal agent. McLaughlin suggested that the undercover agent take a father-daughter trip to Colorado, where McLaughlin lived, so he could kidnap and rape the child. McLaughlin detailed his intentions to hold the teenager captive, subject her to physical and sexual torture, and then kill her.
McLaughlin indicated that he would be willing to kidnap and hold the daughter if the undercover agent would return the favor by killing McLaughlin’s wife. McLaughlin informed the agent of a weekly meeting that his wife attended, along with the time and location. He also suggested a place where the agent could dump his wife’s body, and where he could purchase chloroform to commit the murder.
On May 17, 2019, McLaughlin met with the undercover agent at a hotel in Colorado. He reaffirmed his intention to kidnap and sexually abuse the notional 13-year-old daughter and gave the agent $100 as a deposit toward the $2,600 sum he had agreed to pay for the murder-for-hire.
“The sentencing of McLaughlin is a clear message to criminals there is no safe haven from law enforcement,” said HSI Orlando Assistant Special in Charge David J. Pezzutti. “Without the hard work and strong partnerships between HSI Orlando, HSI Denver and the Brevard County Sheriff’s Office, this criminal would have murdered his wife and sexually exploited a child.”
This case was investigated by Homeland Security Investigations, the Brevard County Sheriff’s Office, and the Arapahoe County (Colorado) Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang and Ilianys Rivera Miranda.
Cincinnati man charged with sexually exploiting toddlerRead the Press Release
CINCINNATI – A federal grand jury has charged a 78-year-old Cincinnati man with sexually exploiting a toddler.
Thomas Winkelbach was charged with two counts of sexually exploiting children and one count of possessing child pornography.
According to the indictment, in or about 2014 to 2015, Winkelbach coerced a victim who was 1 to 2 years old at the time to engage in sexually explicit conduct and created pictures of the abuse. Winkelbach allegedly created five pornographic photographs of the child.
When investigators searched Winkelbach’s computer, they also allegedly found other images of child pornography including images of children younger than 12.
Sexually exploiting a child is a federal crime punishable by 15 to 30 years in prison. Possessing child pornography carries a potential maximum sentence of 20 years in prison Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Winkelbach remains in custody pending trial.
The Hamilton County Sheriff’s Office and Cincinnati Police Department’s Regional Electronics Computer Investigations (RECI) Task Force investigated this case.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Jim Neil; and Cincinnati Police Chief Eliot K. Isaac announced the charges returned yesterday. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Cincinnati Man Convicted of Fentanyl and Heroin TraffickingRead the Press Release
COVINGTON, Ky. - A Cincinnati man was convicted yesterday, by a federal jury in Covington, for participating in an extensive conspiracy to distribute kilogram quantities of heroin and fentanyl.
After two hours of deliberation, following a three-day trial, the jury convicted 37-year old Quintin Tyler Brian Davis of conspiracy to distribute 400 grams or more of fentanyl and one kilogram or more of heroin. They also found him guilty of possessing fentanyl and heroin with the intent to distribute it.
According to testimony at trial, Davis conspired with Ronnie Teets and Donald Hoffman to distribute multiple kilograms of fentanyl and heroin received through delivery services, cut the substances with lactose, and distributed them in the Greater Cincinnati area. Agents seized more than $100,000 in currency, a loaded handgun, and several quantities of heroin and fentanyl from locations in Cincinnati and Florence, Kentucky, in August of 2018.
Davis, Teets, and Hoffman were indicted in December 2018. Davis’ co-defendants previously pleaded guilty to conspiracy charges. Hoffman pleaded guilty in December 2018, and Teets pleaded guilty in April 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Keith Martin, Special Agent in Charge, DEA Detroit Field Division; Director Christopher Conners, Northern Kentucky Drug Strike Force; and Chief Eliot Isaac, Cincinnati Police Department, jointly announced the conviction.
The investigation was conducted by the DEA, the Northern Kentucky Drug Strike Force, and Cincinnati Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Davis will appear for sentencing on May 21, 2020. He faces up to a maximum of life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Charleston Man Sentenced to 10 Years in Federal Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for armed drug trafficking crimes, announced United States Attorney Mike Stuart. Kevin Huffman, 36, was sentenced to 10 years in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
“10 years in federal prison,” said United States Attorney Mike Stuart. “We are tough, tough, tough on crime. Through increased and aggressive efforts to prosecute drug dealers like Huffman, we are making great progress towards safer streets, safer families and a safer West Virginia.”
Huffman previously admitted that he agreed to meet and sell methamphetamine to an individual now known to be a confidential police informant in Dunbar, West Virginia on November 30, 2017. Police approached a vehicle driven by Huffman to the meeting point. Huffman was found sitting on top of a Ruger, model SR, .40 caliber pistol. Following a search of the vehicle driven by Huffman, officers recovered a distribution quantity of methamphetamine and the firearm, as well as cash and Xanax, Diazepam and Clonazepam pills. At the plea hearing, Huffman admitted that he possessed the firearm to further his drug trafficking activities.
The Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department’s Special Enforcement Unit conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
Follow us on Twitter: SDWVNews and USAttyStuart
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CRA/LA Agrees to Pay $3.1 Million to Resolve Alleged Misuse of Federal Funds for Inaccessible HousingRead the Press Release
CRA/LA agreed to pay $3.1 million to resolve allegations that its predecessor violated the False Claims Act by knowingly failing to comply with federal accessibility laws when it financed and assisted in the development of affordable housing in the City of Los Angeles supported by federal funds, the Department of Justice announced.
CRA/LA is the successor of the Community Redevelopment Agency of the City of Los Angeles, a local redevelopment agency that financed and assisted in the development of multifamily affordable housing using local tax monies and federal community development grants. In June 2011, the State of California dissolved all redevelopment agencies. CRA/LA is winding down the affairs of its predecessor.
“Today’s settlement demonstrates our continuing vigilance to ensure that developers receiving federal grant money for affordable housing satisfy their legal obligations to make such housing accessible to people with disabilities,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Grant recipients who knowingly discriminate against people with disabilities using taxpayer money will face serious consequences.”
“Despite millions of dollars of federal taxpayer money sent to Los Angeles to create affordable housing over many years, the CRA opted to lie about its failure to ensure that these projects were accessible to everyone,” said U.S. Attorney Nick Hanna for the Central District of California. “This settlement resolves only a small portion of this case, and we are prepared to litigate additional allegations that the City of Los Angeles covered up its failure to comply with federal laws enacted to protect the civil rights of all citizens.”
“The basic tenant of fair housing translates into the premise of equal access for all, this is to include those citizens that face physical and functional challenges,” said Inspector General Rae Oliver Davis of the U.S. Department of Housing and Urban Development. “This settlement reaffirms this office’s steadfast resolve to ensure those who receive federal housing funds abide by this fundamental principle.”
“This case demonstrates HUD’s commitment to holding recipients of federal funds accountable for their failure to comply with HUD’s accessibility requirements,” said General Counsel Paul Compton of the U.S. Department of Housing and Urban Development. “We will continue to collaborate with our partners at the Department of Justice to ensure that HUD participants provide accessible housing to individuals with disabilities.”
Recipients of federal housing development funds must comply with federal accessibility laws, including Section 504 of the Rehabilitation Act, the Americans with Disabilities Act, and the Fair Housing Act. These laws prohibit discrimination against people with disabilities in activities receiving federal financial assistance. For example, they require five percent of all units in certain federally-assisted multifamily housing be accessible for people with mobility impairments and an additional two percent be accessible for people with visual and auditory impairments. Recipients of federal funds must likewise implement accessible programs related to housing, including maintaining a publicly-available list of accessible units with a description of their accessibility features, adopting policies and procedures to ensure that people who need the accessibility features of particular units occupy them, and designating at least one individual to coordinate accessibility efforts.
The settlement resolves claims against CRA/LA in a lawsuit alleging that the CRA/LA’s predecessor, along with the City of Los Angeles, received money from the U.S. Department of Housing & Urban Development based on false claims they were complying with federal accessibility laws. As to the CRA/LA’s predecessor, the United States’ lawsuit alleged at least nine multifamily housing properties fell significantly short of federal accessibility laws since 2005. Examples of alleged defects included:
- slopes and ramps too steep for people in wheelchairs;
- tall thresholds restricting wheelchair access;
- kitchen cabinets, shelves, and surfaces outside the accessible reach range of people in wheelchairs;
- sinks, grab bars, and mailboxes mounted outside the accessible reach range of people in wheelchairs;
- uninsulated pipes below sinks and lavatories;
- a lack of accessible parking spaces; and
- insufficient visual alarms and tactile signs for people with hearing and visual impairments.
The United States’ claims against the City of Los Angeles have not been resolved and are still pending in the litigation.
The agreement announced today partially resolves a lawsuit filed in U.S. District Court in Los Angeles by Mei Ling, a Los Angeles resident who uses a wheelchair, and the Fair Housing Council of San Fernando Valley, a nonprofit civil rights advocacy group. The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States when they believe that a party has submitted false claims for government funds, and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done in this case.
These matters were investigated and litigated by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Central District of California. HUD’s Office of Inspector General and Office of General Counsel also participated in the investigation.
The claims asserted against the CRA/LA and the City of Los Angeles are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Ling, et al. v. City of Los Angeles, et al., No. CV11-00974-PSG (C.D. Cal.).
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.
Bridgeport Man Pleads Guilty to Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LYNWOOD COGDELL, 32, of Bridgeport, pleaded guilty today in New Haven federal court to two counts of possession of a firearm in furtherance of a drug trafficking offense.
According to court documents and statements made in court, on March 15, 2016, Cogdell was sentenced in federal court to 36 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a convicted felon. He was released from federal prison in June 2018.
On August 10, 2018, while on supervised release, Cogdell was arrested by Stamford Police after he was found in possession of a loaded .40 caliber semi-automatic pistol, and 150 folds of heroin that he intended to distribute.
On April 15, 2019, Cogdell was arrested by Connecticut State Police in Bridgeport after he was found in possession of a loaded .40 caliber semi-automatic pistol, and 58 folds of heroin/fentanyl that he intended to distribute.
Cogdell is scheduled to be sentenced by U.S. District Judge Janet C. Hall in New Haven on May 5, 2020, at which time he faces mandatory term of imprisonment of 10 years and a maximum term of life imprisonment.
Cogdell also faces additional penalties if he is found to have violated the conditions of his supervised release.
This matter has been investigated by U.S. Marshals Service, Stamford Police Department, Bridgeport Police Department, and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.
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 neighborhoods safer for everyone.
Birmingham Woman Convicted for Conspiracy to Commit Mail and Wire Fraud and Intimidating a WitnessRead the Press Release
Birmingham, Ala. – Following a three-day bench trial, a Birmingham woman was convicted on charges of conspiracy to commit mail and wire fraud and intimidating a witness, announced U.S. Attorney Jay E. Town and IRS Criminal Investigation Special Agent in Charge Andrew M. Thornton, Jr.
After three days of testimony, U.S. District Court Judge R. David Proctor convicted Quincetta Yvonne Cargill, 48, of one count of conspiracy to commit mail and wire fraud and one count of witness tampering. Cargill represented herself and also took the stand to testify.
“This case was about greed at the expense of too many,” Town said. “The finding of guilt for this individual should forewarn anyone that would commit fraud on the taxpayers by filing false tax returns will be prosecuted to the fullest extent. Thanks to the hard work of the prosecutors and agents the defendant has been brought to justice.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law," Thornton said. "IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
Evidence at trial, including witness testimony, bank records, and IRS tax returns, proved that Cargill obtained the names, dates of birth, and social security numbers of individuals, told them she was submitting their information for a federal grant program, and instead caused fraudulent tax returns to be filed with their information. Cargill then directed others to open bank accounts, and used her own bank accounts, to receive tax refund checks from those fraudulently filed returns. In total, Cargill and her co-conspirators obtained more that $1 million from refunds from fraudulent tax returns. Evidence at trial also proved that Cargill attempted to intimidate a witness in her case by sending information about the witness and their potential testimony to members of a motorcycle club, in order to influence or prevent that witness from testifying at trial.
The maximum penalty for conspiracy to commit mail and wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for witness tampering is 20 years in prison and a $250,000 fine.
IRS-CID investigated the case, which Assistant U.S. Attorney Allison Garnett and Blake Milner are prosecuting.
Berea Man Indicted for Child Pornography CrimesRead the Press Release
LEXINGTON, Ky.- Larry Dale Foley, 48, of Berea, Kentucky, was indicted on Thursday in federal court for receipt, distribution, and possession of child pornography.
The indictment alleges that, on December 17, 2018, Foley received images of child pornography. Foley is also charged with distributing child pornography on December 30, 2018. The indictment alleges that on January 6, 2020, Foley possessed images of child pornography. The indictment seeks forfeiture of Foley’s interest in several cellphones, tablets, laptop computers and flash drives.
The investigation preceding the indictment was conducted by the Department, Federal Bureau of Investigation (FBI), and the Berea Police Department. If anyone has additional information related to the case, they are encouraged to contact the FBI at (859) 254-4038.
Foley’s next appearance before the United States District Court in Lexington is TBD. If convicted, Foley faces a maximum prison sentence of 20 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Beaumont Couple Guilty of Falsifying Tax ReturnsRead the Press Release
BEAUMONT, Texas –A Beaumont, Texas business owner and his wife have been convicted of federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were convicted on Feb. 5, 2020 by a jury following a three-day trial before U.S. District Judge Marcia A. Crone. The Brocatos were found guilty of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014.
According to information presented in court, the Brocatos owned a lawn service company, Superior Lawn Service, which was operated for tax purposes as an S corporation. The Brocatos were the sole shareholders of the company with Judith Brocato as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity. The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014. To facilitate the scheme, the Brocatos underreported income received by checks from numerous customers of the company after having the checks cashed rather than depositing the checks into the company accounts. They then purposefully failed to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.
“The obligation of all of us to pay our taxes is important, and no one should forget that there are criminal penalties for failing to pay your taxes as required,” said United States Attorney Joseph D. Brown. “And it is again tax season, so this verdict is a timely reminder.”
Under federal statutes, the Brocatos each face up to 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls and John B. Ross
Altoona Man Pleads Guilty in $1 Million Fraud Scheme and Failed to Pay TaxesRead the Press Release
PITTSBURGH, PA - A resident of Blair County, Pennsylvania, pleaded guilty in federal court in Pittsburgh on charges of tax evasion and wire fraud, United States Attorney Scott W. Brady announced today.
Patrick S. LaMarsh, age 40, of Altoona, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, between 2011 and 2013, LaMarsh defrauded TracFone and Walmart by selling fraudulently obtained Straight Talk airtime cards on Amazon.com. According to the information provided to the court, LaMarsh fraudulently re-encoded Straight Talk prepaid wireless cards and sold them for a discount, netting in excess of one million dollars in sales. LaMarsh used the proceeds to buy precious metals and a recreational vehicle. In addition, LaMarsh deposited proceeds into nominee bank accounts to conceal income.
Judge Bissoon scheduled the sentencing for June 24, 2020 at 10:00 a.m. The law provides for a total sentence of five years’ imprisonment for each count of conviction for tax evasions, and 20 years imprisonment for each count of conviction for wire fraud, a fine of $4,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations and United States Secret Service conducted the investigation leading to the indictment in this case.
5 February 2020
Youngstown man sentenced to 12 years for intending to distribute pressed fentanyl pills disguised as Oxycodone and violating the terms of federal supervisionRead the Press Release
Benjamin Ross, 28, of Youngstown, Ohio, was sentenced for his role in a scheme to distribute fentanyl pills, which were pressed, colored and stamped to look like 30 milligram oxycodone hydrochloride pills. Judge John R. Adams sentenced Ross to 144 months of incarceration, to be followed by ten years of supervised release.
According to the indictment and other court records, on May 15, 2019, Ross knowingly and intentionally possessed with the intent to distribute 117.70 grams of fentanyl.
Between March 19, 2019 and May 15, 2019, Ross was in contact with an individual via the WhatsApp mobile messaging platform. These communications revealed that Ross sought to purchase fentanyl pills disguised as oxycodone. During one such communication, Ross complained that the blue color of the pills he had just received did not match the standard oxycodone color and could possibly alert his customers to the fact that the pills were not legitimate oxycodone pills. Ross provided an address to the individual so that the individual could mail the shipment via the U.S. Postal Service. Just prior to May 15, 2019, the individual provided Ross with the tracking number so that Ross would know when to pick up the shipment. The shipment was delivered to the address Ross provided on May 15, 2019. Immediately after Ross picked up the shipment, the Ohio State Highway Patrol conducted a traffic stop. During that traffic stop, a police canine alerted to the odor of narcotics inside the car. Troopers found a bag of round, light-blue pills, which were marked “M” and “30” as if they were 30 milligram oxycodone pills. A laboratory test confirmed the 117.7 grams of pills actually contained fentanyl. At the time of his arrest, Ross was under supervision after serving 57 months for a prior federal firearms conviction. Ross was released from custody and began supervision on March 22, 2019.
Judge Adams found this drug trafficking conviction was a violation of the terms of Ross’ supervised release. Ross was sentenced to 120 months for trafficking fentanyl followed by a consecutive sentence of 24 months for violating his supervised release.
This case was prosecuted by Assistant U.S. Attorneys Patrick Burke and Danielle Angeli Asher following an investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, The Ohio State Highway Patrol and U.S. Immigration and Customs Enforcement.
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Woman That Overstayed Her Visa Pleads Guilty to ID Theft, Fraud ChargesRead the Press Release
PROVIDENCE – A Dominican national that remained in the United States without permission after her six-month visa expired in June 2003, today admitted that while remaining in the country illegally, she used the stolen identity and Social Security number of a woman living in Puerto Rico to obtain a Rhode Island driver’s license and government financed health care, unemployment, disability, and food stamp benefits.
Sonia Jordain, 54, pled guilty as charged in an indictment returned in U.S. District Court in Providence in June 2019, to false representation of citizenship, false representation of a Social Security number, aggravated identity theft, theft of public money, and two counts of wire fraud.
Jordain admitted to the court that in February 2014, she used the stolen identity and stolen Social Security number when applying for Supplemental Nutrition Assistance Program (SNAP) benefits. On the application, Jordain falsely stated that neither she, nor anyone in her household, was not a United States citizen.
Jordain admitted that in February 2014, she also used the stolen identity and Social Security number to obtain government-paid health care benefits; in May 2016 to obtain a Rhode Island driver’s license; in December 2016 to obtain SNAP benefits; in March 2017 to receive temporary disability insurance (TDI) from the Rhode Island Department of Labor and Training; and in October 2017 to obtain unemployment insurance benefits from the Rhode Island Department of Labor and Training.
According to the government’s evidence, Jordain fraudulently received $40,070 in health care benefits, $5,928 in unemployment insurance benefits, $2,285 in TDI benefits, and $3,800 in SNAP benefits.
She is scheduled to be sentenced on May 7, 2020.
Jordain’s guilty plea before U.S. District Court Judge William E. Smith is announced by United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General Phillip Coyne, Special Agent in Charge of the New York Region of the Department of Labor Office of Labor Racketeering and Fraud Investigations Michael C. Mikulka, and Bethanne M. Dinkins, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Windsor Locks Man Sentenced to 5 Years in Federal Prison for Child Pornography OffenseRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that BRIAN GREGAN, 33, of Windsor Locks, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by five years of supervised release, for soliciting and receiving child pornography.
According to court documents and statements made in court, in June 2017, Gregan and a 13-year-old boy communicated through the Kik messaging application. After the boy informed Gregan that he was 14 years old, they engaged in sexually explicit communications. Gregan sent several sexually explicit pictures of himself to the boy, and he solicited sexually explicit images from the boy. In response to these solicitations, the boy sent sexually explicit pictures and a video of himself to Gregan.
The investigation also revealed that, in 2016, Gregan met a 15-year-old girl online. He requested sexually explicit photographs and videos from the girl. Analysis of Gregan’s Apple iPad revealed a sexually explicit video of the girl made when the girl was under the age of 18.
Gregan was arrested on related state charges on April 6, 2018. On October 7, 2019, he pleaded guilty in federal court to one count of receipt of child pornography.
Gregan, who is released on a $50,000 bond with internet and location monitoring conditions, is required to report to prison on April 7, 2020.
This matter was investigated by the Federal Bureau of Investigation and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
United States Joins Suit Against New Albany Orthopaedic Clinic Alleging False Claims for Medical ServicesRead the Press Release
Oxford, MS - The United States has intervened in a whistleblower suit filed in the U.S. District Court for the Northern District of Mississippi against Mitias Orthopaedics, PLLC. Mitias provides orthopedic care in New Albany, MS.
The suit alleges that Mitias knowingly submitted false claims for FDA-approved name-brand knee injectable devices, and received payment at those rates, but actually purchased and utilized a much cheaper product from a compound pharmacy to increase profit margin.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by a pharmaceutical sales representative. Under the acts, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties and costs.
“Our office is committed to protect taxpayer dollars from waste, fraud, and abuse and ensure the integrity of our federal healthcare programs like Medicare, Medicaid, TRICARE and Railroad Medicare,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “CMS/Medicare is ready, willing, and able to pay for high-quality products. Any attempt to manipulate the reimbursement system drives up costs for everyone,” Lamar added.
The lawsuit is being handled by the Civil Division within the U.S. Attorney’s Office for the Northern District of Mississippi. Investigative support is being provided by the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Centers for Medicare and Medicaid Services, and the Food and Drug Administration.
The case is captioned United States ex rel. Gray v. Mitias Orthopaedics, PLLC (3:15-cv-127). The claims alleged in the lawsuit are allegations only, and there has been no determination of liability. The United States will file its own formal complaint as allowed by law.
U.S Attorney Russell Coleman Opens Bowling Green Office with Full-Time Federal Prosecutors for First Time EverRead the Press Release
BOWLING GREEN, Ky. – For the first time in the history of Kentucky there will be a full-time staffed federal prosecutors’ office in Bowling Green, Kentucky, announced United States Attorney Russell Coleman.
“You shouldn’t expect less of your government the further you live from Louisville or the Golden Triangle,” said U.S. Attorney Russell Coleman. “Having a full-time office in Bowling Green will allow us to better collaborate with our many outstanding law enforcement partners throughout SouthCentral Kentucky in the fight to protect Warren and surrounding counties from predators seeking our kids, online thieves targeting our older family members, and historically high levels of drug cartel-produced poison from Mexico.”
Opening the full-time staffed office was a lengthy administrative process, requiring approval from the U.S. Department of Justice in Washington, DC, and ultimately Congress. Historically the unstaffed courthouse office has been used by federal prosecutors making the two hour commute from the U.S. Attorney’s Office in Louisville. Having full-time Assistant U.S. Attorneys in Bowling Green that live in the community will foster deeper working relationships with local law enforcement and state prosecutors that will lead to better outcomes for the citizens of the Southcentral Kentucky region in mitigating the threat of increased drug trafficking in ever more dangerous substances, online elder fraud, and child exploitation.
“The opening of a United States Attorney's Office will both expedite federal cases and foster a closer working relationship with state, local and federal law-enforcement,” said Tommy Loving, Director of Bowling Green-Warren Co. Drug Task Force. “I have personally asked many times over the last 20 years for a full-time United States Attorney's Office to be opened in Bowling Green. I thank United States Attorney Russell Coleman for listening to our needs and opening this office. Without his strong support of law-enforcement this would have never happened and it will be a great asset to the entire region.”
“As the Warren County Attorney, I am thrilled to have the opportunity to partner with the United States Attorney’s Office to provide a collaborative effort between County Government and the Federal Government,” said Warren Co. Attorney Amy Milliken. “This partnership, while unique, will prove to be beneficial to all Warren County citizens. Working together builds strong partnerships and those partnerships equate to friendships. I am excited to work with USA Russell Coleman to make this office, position and partnership a success!”
"FBI Louisville welcomes the United States Attorney’s Office (WDKY) full-time to Bowling Green,” said Special Agent In-Charge Robert Brown Jr. “This is a monumental win for Kentucky. Having dedicated federal prosecutors working side by side with our Special Agents in Bowling Green, as well as with other federal and state partners, will only bolster all of our commitments to protecting the citizens of the Western District of Kentucky.”
The announcement was made during a ribbon-cutting ceremony held at the United States District Courthouse in Bowling Green, which will initially accommodate full-time Assistant United States Attorney (AUSA) Madison Sewell who will be joined by Special Assistant United States Attorney (SAUSA) Mark Yurchisin, and yet another full-time AUSA later this year once hired by U.S. Attorney Coleman.
Yurchisin, who was born and raised in Warren County, was sworn-in as the first-ever Bowling Green-based Special Assistant U.S. Attorney on Wednesday during the ribbon-cutting ceremony. He currently serves as an Assistant County Attorney for Warren County Attorney Amy Milliken. Prior to joining the county attorney’s office, Yurchisin served as an Assistant Commonwealth’s Attorney for the 38th Judicial District in Morgantown, Kentucky. As a SAUSA, Yurchisin will serve as a critical link between the U.S. Attorney’s Office and local prosecutors to better protect the people of Southcentral Kentucky from drug trafficking, fraud, and violent crime.
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Two members of Navajo Nation face federal murder chargesRead the Press Release
ALBUQUERQUE, N.M. – Timothy Chischilly, 48, and Stacy Yellowhorse, 48, of Mexican Springs, New Mexico, appeared in federal court in Albuquerque on Feb. 4 for detention hearings on a criminal complaint charging them with murder. A federal magistrate judge ordered them to remain in custody pending trial.
According to the criminal complaint, Chischilly and Yellowhorse allegedly committed the murder within the boundaries of the Navajo Nation, in McKinley County, in late January 2020. The victim was allegedly beaten to death with a sledgehammer. Chischilly and Yellowhorse are members of the Navajo Nation.
The FBI arrested Chischilly and Yellowhorse on February 2. They face up to life in prison if convicted of the charged offense. A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty.
The Gallup office of the FBI investigated this case with assistance from the Navajo Nation Police Department, the Gallup Police Department, and the New Mexico Office of the Medical Investigator. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Two Owners of Telemedicine Companies Charged for Roles in $56 Million Conspiracy to Defraud Medicare and Receive Illegal Kickbacks in Exchange for Orders of Orthotic BracesRead the Press Release
The owners of two telemedicine companies were charged in an indictment unsealed yesterday for allegedly orchestrating a nationwide scheme to receive kickbacks and bribes in exchange for the ordering of medically unnecessary orthotic braces (braces) for beneficiaries of Medicare.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Rachael Honig of the District of New Jersey, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director Terry Wade of the FBI’s Criminal Investigative Division made the announcement.
Reinaldo Wilson, 51, and Jean Wilson, 49, husband and wife of Richmond Hill, Georgia, the owners of purported telemedicine companies Advantage Choice Care LLC (ACC) and Tele Medcare LLC (Tele Medcare), were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, one count of conspiracy to commit health care fraud and wire fraud, three counts of receiving health care kickbacks, and one count of conspiracy to commit money laundering. Reinaldo Wilson and Jean Wilson were arrested this morning and appeared this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina. Reinaldo Wilson is being held pending a bail hearing set for Feb. 11. Jean Wilson was released and will appear for a bail hearing on Feb. 11.
The indictment alleges that Reinaldo Wilson and Jean Wilson owned and operated purported telemedicine companies ACC and Tele Medcare, which had locations in Bayonne, New Jersey, Boca Raton, Florida, and Richmond Hill, Georgia. The indictment further alleges that Reinaldo Wilson and Jean Wilson agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, pharmacies, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary braces for beneficiaries of Medicare from approximately March 2017 through April 2019. In order to obtain the orders that were transmitted in exchange for kickbacks and bribes, Reinaldo Wilson and Jean Wilson, through ACC and Tele Medcare, recruited and hired health care providers to order braces for Medicare beneficiaries, the indictment alleges. Reinaldo Wilson and Jean Wilson allegedly paid illegal kickbacks and bribes to health care providers to order braces for Medicare beneficiaries that were medically unnecessary, ineligible for Medicare reimbursement and/or not provided as represented.
The indictment further alleges that Reinaldo Wilson, Jean Wilson and others transferred the brace orders to co-conspirator brace suppliers to support in excess of $56 million in false and fraudulent claims to Medicare that were submitted by brace suppliers and that Medicare paid these brace suppliers in excess of $28 million for these claims.
With regard to the money laundering charge, that indictment alleges that between approximately March 2017 and April 2019, Reinaldo Wilson and Jean Wilson agreed to engage in monetary transactions of criminally derived property in amounts greater than $10,000.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by HHS-OIG and the FBI. Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Advantage Choice Care LLC and Tele Medcare LLC – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
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.
Two Mexican citizens admit roles in transporting aliens from Canada into MontanaRead the Press Release
GREAT FALLS – Two Mexico citizens who were arrested in Glacier County by Border Patrol agents investigating suspected alien smuggling from Canada pleaded guilty on Tuesday to illegally transporting aliens, U.S. Attorney Kurt Alme said.
Alberto Guillen-Gordillo, 23, and Samuel Velasco-Tovar, 28, each pleaded guilty to transportation of illegal aliens. Each defendant faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for May 5. Guillen-Gordillo and Velasco-Tovar remain detained.
The prosecution said in court records that on Nov. 17 at about 11:15 p.m., Border Patrol agents conducted traffic stops of two vehicles south of the United States-Canada border in Glacier County. In the first vehicle, which was a Chevrolet Suburban, the agent found the driver and nine passengers. All of the passengers admitted to being in the United States illegally. During the stop of the second vehicle, a Chevrolet Tahoe, all of the occupants ran into a nearby field. Agents found eight individuals within one to two minutes. Each of the individuals admitted to being in the United States illegally.
In all, law enforcement transported 19 suspects to the Sweetgrass Border Patrol Station for processing. Four of the transported illegal aliens told agents they had paid from $4,000 to $4,750 to be smuggled into the United States and identified Velasco-Tovar as the foot guide who helped them cross into the United States.
Shortly after the arrests, a Border Patrol agent and Glacier County Sheriff’s deputy went to a Cut Bank hotel where the subjects had been staying to determine if any remaining occupant in one of the hotel rooms was in violation of trafficking laws. Guillen-Gordillo answered the door, identified himself and was taken into custody. Guillen-Gordillo admitted to being in the United States illegally. He rented the Chevrolet Suburban and Chevrolet Tahoe from a Utah car rental company. A co-defendant identified Guillen-Gordillo as the driver of a third vehicle but that he stayed at the hotel because he was not feeling well.
A third co-defendant, Josue Bermudez-Lopez, of Mexico, pleaded guilty in December to illegally transporting aliens and is awaiting sentencing, while a fourth co-defendant has pleaded not guilty.
Assistant U.S. Attorneys Paulette Stewart, Jeff Starnes and Ethan Plaut are prosecuting the case, which was investigated by the U.S. Border Patrol and the Glacier County Sheriff’s Office.
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Two Arrested in Connection with Cryptocurrency Investment FundRead the Press Release
PHOENIX, Ariz. – John Michael Caruso, 28, of Scottsdale, Arizona, and Zachary Salter, 27, of Paradise Valley, Arizona, were both arrested on January 30, 2020, and charged by criminal complaint with conspiracy to commit wire fraud and money laundering.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
If you believe you may have invested money with Caruso or Salter—or their alleged cryptocurrency investment fund, Zima Digital Assets—please contact Special Agent Lamerson or Special Agent Roper at the U.S. Secret Service, Phoenix Field Office, via telephone at (602) 640-5580.
Trenton Man Sentenced to 86 Months in Prison for Possession and Sale of Firearm and Distribution of HeroinRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 86 months in prison for possessing a firearm and ammunition as a convicted felon and for distributing quantities of heroin, U.S. Attorney Craig Carpenito announced.
Kendall Rossi, 41, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Four of an indictment charging him with unlawful possession of a firearm and ammunition as a convicted felon and distribution and possession with intent to distribute controlled substances. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On three occasions between August 2017 and September 2017, Rossi, who previously had been convicted of numerous felonies, and whom law enforcement officials had identified as an unlawful firearms supplier in and around Trenton, sold quantities of heroin and ANPP (a fentanyl analogue) to a confidential law enforcement source. Rossi boasted about his ability to obtain numerous firearms that he could sell. In October 2017, in a controlled transaction supervised by federal law enforcement, Rossi sold the confidential source a .380 caliber semi-automatic firearm and 47 rounds of .380 caliber ammunition. Rossi sold the firearm to the source under the belief that the source would use the firearm in connection with a robbery.
In addition to the prison term, Judge Wolfson sentenced Rossi to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
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Defense Counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Tampa Woman Sentenced to Four Years in Federal Prison for Immigration Fraud Scheme Stretching from Tampa to ChicagoRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Erika Paola Intriago (45, Tampa) to four years in federal prison for wire fraud in connection with a fraud scheme involving her posing as an immigration attorney to more than 50 victims in Chicago and Tampa. The court also ordered Intriago to forfeit $53,663, the proceeds of her offense.
Intriago had pleaded guilty on October 31, 2019.
According to court documents, Intriago portrayed herself as an immigration attorney and personal representative offering immigration-related services. She advertised her services on social media, targeting immigrants and immigrant families from Spanish-speaking countries. In fact, Intriago was not a licensed attorney in any state.
At least 55 victims retained and paid Intriago to represent them in immigration-related matters before U.S. Citizenship and Immigration Services (USCIS) and other agencies. To prove that she was acting on the victims’ behalf, Intriago sent fraudulent letters, emails, receipts, documents, and communications to her victims, fraudulently representing that these records were legitimate communications sent from agencies of the United States, including the Department of Homeland Security and USCIS. In actuality, Intriago had either never filed the necessary immigration paperwork, had abandoned the immigration process, or the applications had already been denied without Intriago informing the victims. Intriago also threatened and intimidated victims who complained about her conduct by telling them that she would report their immigration status to U.S. immigration authorities, which Intriago claimed would result in the victims being deported.
“Immigration fraud is a serious threat to our national security,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran. “Her illegal scheme tried to undermine the integrity of our nation’s legal immigration system, while preying on victims who were vulnerable and trying to navigate a path to citizenship.”
“Justice was served today with this sentencing,” said USCIS Tampa District Director Michael Borgen. “The defendant defrauded immigrants in an elaborate unlawful scheme, and USCIS’ Fraud Detection and National Security division is proud to have partnered with HSI and the U.S. Attorney’s Office to continue protecting our immigration system.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the United States Citizenship and Immigration Service. It was prosecuted by Assistant United States Attorney Frank Murray.
Statement from United States Attorney Jay E. Town on the Death of Kimberly Police Department Officer Nick O’RearRead the Press Release
BIRMINGHAM, Ala. – “Kimberly PD Officer Nick O’Rear’s end of watch has come to soon. Our thoughts and prayers are with his family, friends and fellow officers. This tragedy is yet another heartbreaking reminder of the dangers all law enforcement face while we enjoy the safety they provide us. We must ask ourselves how we can all join together to bridge the respect deficit for law enforcement that is directly and indirectly leading to violence against our brave men and women of the badge. Enough is enough.”
St. Thomas Man Who Mailed Drugs in Candy Wrappers to New York Pleads Guilty to Conspiracy to Distribute CocaineRead the Press Release
St. Thomas, USVI – Kemo Riley, of St. Thomas, pled guilty yesterday to one count of conspiracy to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced. The Honorable Curtis V. Gomez, Chief Judge, District Court of the Virgin Islands, accepted the guilty plea.
In his plea agreement, Riley admitted to mailing a package to an individual in New York containing more than 250 grams of cocaine concealed in candy bar wrappers on May 28, 2019. Riley faces up to twenty years’ imprisonment, a three-year term of supervised release, and a fine of up to $1,000,000. Judge Gomez scheduled defendant Riley’s sentencing for June 4, 2020, at 9 a.m.
The case was investigated by the U.S. Postal Service and the Department of Homeland Security, and is being prosecuted by Assistant United States Attorneys Jennifer Blecher and Nathan Brooks.
St. Louis County Dentist Sentenced to 18 Months After Issuing Illegal Prescriptions for Opioid Narcotic Drug and Medicare FraudRead the Press Release
St. Louis, MO – Bradley A. Seyer, D.D.S., 53, of Florissant, Missouri, was sentenced today to 18 months of imprisonment and a $50,000 fine. Previously, on June 26, 2019, Dr. Seyer pleaded guilty to two felony charges of making false statements to Medicare and illegally issuing prescriptions for narcotic opioid drugs, including Hydrocodone, without a legitimate medical purpose.
According to the plea agreement, Dr. Seyer provided a prescription for Hydrocodone to a woman identified by her initials E.A. Dr. Seyer had a personal relationship with E.A. that lasted over ten years. Dr. Seyer gave E.A. money and jewelry, and took her on vacation trips. During their relationship, defendant prescribed E.A. with over 14,000 units of various anti-anxiety and opioid narcotic pain relief drugs. Dr. Seyer prepared and kept some dental treatment records for E.A., but they were incomplete. Dr. Seyer’s records failed to contain all of the prescriptions that he issued for E.A. Further, the records did not document office visits and examinations by Dr. Seyer of E.A. before he issued some of the prescriptions to her.
In his plea agreement, Dr. Seyer admitted that he and E.A. together consumed some "street" and prescription drugs for recreational purposes. E.A. often requested prescription drugs by text, leading Dr. Seyer to call in the prescriptions at her request. E.A. was depressed and had suicidal ideation, and had a history of mental illness. On several occasions during the Summer of 2018, Dr. Seyer and E.A. discussed her desire to commit suicide. Ultimately, E.A. died at her home during July, 2018 of a fentanyl overdose, although Dr. Seyer did not prescribe fentanyl to E.A.
Further, in the plea agreement, Dr. Seyer admitted that he prescribed Tramadol® to E.A.’s father, identified by his initials in the plea agreement as G.A. G.A. has Medicare coverage. Dr. Seyer had no records showing any dental treatment for G.A. However, Dr. Seyer issued five prescriptions to E.A. using G.A.'s name, and Medicare paid for these five prescriptions, including a Tramadol® prescription dated December 2, 2015.
Shortly after Dr. Seyer pled guilty in this case, effective August 28, 2019, the Missouri Legislature restricted the ability of dentists to write prescriptions for long-acting, extended release, or high dosage opioids. Mo. Rev. Stat. § 332.361(4)-(5).
“The DEA will utilize all the enforcement tools we have against medical professionals who knowingly and willfully prescribe opioid prescriptions improperly,” said Special Agent in Charge William Callahan of the Drug Enforcement Administration St. Louis Division. “I commend the Missouri Legislature for recognizing this opioid prescribing challenge by regulating the ability of dentists to write prescriptions for certain kinds of opioids.”
Curt Mueller, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Our office will continue to vigorously pursue healthcare providers who submit improper claims for reimbursement to publicly funded healthcare programs and, more specifically abuse their position by irresponsibly prescribing narcotics that endanger the well-being of their patients.”
“The Missouri Attorney General’s Medicaid Fraud Control Unit works tirelessly every day to ensure that Missouri citizens are protected from Medicaid fraud and fraudulent actors are held accountable. I appreciate the opportunity to work with our federal and local partners on this case,” said Attorney General Eric Schmitt.
This case was investigated by the Department of Public Safety for the City of Des Peres, Missouri and the U.S. Drug Enforcement Administration, with assistance from the Bureau of Narcotic and Dangerous Drugs of the Missouri Department of Health and Human Services, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
St. Croix Man Arrested on Federal Charges for Allegedly Mailing over a Pound of Cocaine from St. Croix to South CarolinaRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Damian Anthony Lang of St. Croix was arrested February 4, 2020 for the charge of Conspiracy to Possess with Intent to Distribute Cocaine.
According to court documents, Lang is accused of mailing two parcels from the U.S. Virgin Islands to Spartanburg, South Carolina on December 7, 2019. The parcels were intercepted and contained approximately 462 grams of a white powdery substance which field-tested positive for cocaine.
Lang was arraigned on February 4, 2020 in federal court on St. Croix and detention, preliminary and removal hearings are scheduled for February 5, 2020 at 9:00 a.m. According to court documents, Lang is currently on release pending trial in an unrelated federal case, No. 2015-13, for the charge of Felon in Possession of Ammunition.
The South Carolina case is investigated by Homeland Security Investigations, U.S. Customs and Border Patrol, United States Postal Inspection Service, and the Spartanburg County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorneys Melissa P. Ortiz and Alphonso Andrews in the U.S. Virgin Islands.
United States Attorney Gretchen C.F. Shappert reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Spokane Developer and Preservationist Sentenced to One Year of Home Confinement and Ordered to Pay a $60,000 Fine Plus Restitution and Forfeiture for His Role in Insurance Fraud and Money Laundering SchemeRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today that Richard Ronald Wells, age 71, of Spokane, Washington and Coeur d’Alene, Idaho, was sentenced after having pleaded guilty on April 30, 2019, to six counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of money laundering, and one count of conspiracy to commit money laundering.
Chief United States District Judge Thomas O. Rice sentenced Wells to a 1-year term of home confinement, to be followed by a 3-year term of court supervision, and ordered him to pay a $60,000 fine. Chief Judge Rice also ordered Wells to pay restitution in the amount of $179,876 and forfeiture of $179,876. Wells forfeited this amount and paid it in full to the court registry prior to sentencing.
According to information disclosed during court proceedings, Wells admitted to participating in one staged accident in Liberty Lake, Washington, involving his $59,557 Ram pickup truck being intentionally driven into co-defendant Chris Frangella’s Ford F-150 pickup truck trailering another individual’s 36-foot Baja cigar boat. In an effort to pursue a fraudulent insurance claim, Wells lied to police and the insurance company by claiming he was the driver of the “at fault” vehicle and that it was an accident, when neither were true. The insurance proceeds fraudulently generated from the phony accident totaled $338,266. The scheme enabled Wells to eliminate approximately $80,000 in personal debt (a $20,000 loan borrowed from another individual and $59,557 he owed a credit union on his Ram truck).
Wells’ fraudulent claim also enabled co-conspirator, Sandra Talento, to collect an insurance payout for fictitious personal injuries claimed to occur in the same incident. Talento pleaded guilty on June 6, 2019, to twenty-five felonies in connection with her role in this and other staged accidents. Talento was sentenced on November 7, 2019, to a 5-year and 10-month term of imprisonment, a 3-year term of court supervision, and was ordered to pay restitution in the amount of $2,100,000 and forfeiture of $2,100,000.
According to information disclosed during court proceedings, Wells also laundered proceeds from another staged accident involving other individuals. These proceeds were derived from a September 21, 2016, staged automobile accident in Rescue, California, involving defendants Misael Reyes-Tajimaroa (using the fake identity “Andrew Arceo”), Brittany Jo Harris, Alexander Arceo and others that generated fraudulent insurance settlement payouts totaling approximately $312,838. On February 21, 2017, and February 28, 2017, an insurance company issued a $90,000 check and a $62,500 check as a result of this accident. Wells, and Reyes-Tajimaroa (using the identity “Andrew Arceo”), were listed as co-payees on each check. Both checks were deposited into Wells’ bank account. On March 20, 2017, Wells issued a $20,000 check payable to another individual, and a $15,000 check payable to a bank. A day later, Wells withdrew $100,319.56 via cashier’s check from his bank account which was used to pay off another individual’s mortgage on a property located in Spokane, Washington.
United States Attorney Hyslop, said “Ron Wells’ fraudulent conduct needlessly caused health care providers, emergency personnel and police officers to expend precious resources that otherwise could have been used to assist true victims. He lied to police and an insurance company in furtherance of an insurance fraud scheme and then he laundered criminal proceeds to disguise their illegal origin. Wells committed serious crimes here. In spite of the fact that he was once a respected community leader and developer in our region, he sacrificed that when he cheated, lied and laundered money. The sentence imposed reflects the role Wells played in the scheme and the fact that he benefitted from his fraud at the expense of the insurance system. This case should send a strong message that we will investigate and prosecute those who may seek to line their pockets through fraud and who launder their ill-gotten gains.”
Federal Bureau of Investigation Special Agent in Charge Raymond P. Duda, said "Here is an individual who let greed get in the way of doing the right thing. Now Mr. Wells is learning the real-life consequences of the decisions he made."
“Today Ronald Wells was held accountable for his participation in the staged accident conspiracy that generated more than $5.5 million dollars of fraudulent insurance proceeds and endangered the public. While our heroic first responders were treating conspirators like Wells at the accident scenes they could not respond to legitimate emergency calls,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation is proud to work alongside the FBI and the U.S. Attorney’s Office to bring this conspiracy to justice.”
This investigation was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Marshals Service, and the United States Attorney’s Office for the Eastern District of Washington, with assistance from the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Son and Mother Arrested in Connection with Branded Restaurant Fraud SchemeRead the Press Release
PHOENIX, Ariz. – Frank Capri, 52, of Scottsdale, Arizona, and his mother Debbie Corvo, 68, of Cave Creek, Arizona, appeared before U.S. Magistrate Judge Michelle H. Burns following their arrest earlier today. On January 28, 2020, a federal grand jury returned a 16-count indictment charging Capri, Corvo, and another individual with wire fraud and conspiracy to commit money laundering in connection with the operation of various branded restaurant locations in Arizona and across the United States. The trial is currently scheduled for April 7, 2020, before United States District Judge John J. Tuchi.
An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. Individuals are presumed innocent until proven guilty beyond a reasonable doubt.
Seven Rockford Residents Arrested on Federal Drug or Firearm ChargesRead the Press Release
ROCKFORD — Seven Rockford residents have been arrested by law enforcement officers on federal drug-trafficking and firearm charges.
DEREK D. JACOBS, also known as “Showtime” and “G,” 27, and RICO L. TURNER, 27, were arrested on charges of conspiracy to distribute fentanyl and heroin in Rockford from July through August 2019. The indictment returned last week also charged Jacobs with one count of distribution of heroin and two counts of distribution of fentanyl, and charged Turner with three counts of distribution of fentanyl.
Additional arrests in related cases included:
MICHAEL A. ALEXANDER, also known as “Big Mike,” 43, who was charged with four counts of distribution of cocaine base or “crack,” and one count of distribution of crack cocaine, fentanyl, and heroin.
RASHOD C. DAVIS, also known as “Rock,” 24, who was charged with one count of distribution of heroin and one count of distribution of a mixture containing fentanyl and heroin.
MARCUS I. RAYMOND, 24, TERRAIL HUNTER, 48, and CHARLES DAVIS, 26, were each charged in separate cases with illegally possessing a firearm as a convicted felon.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Rockford Police Chief. The FBI, Winnebago County Sheriff’s Office, and Illinois State Police assisted in the investigation. The government is represented by Assistant U.S. Attorney Vincenza Tomlinson.
Jacobs, Turner, Alexander, Rashod Davis, and Hunter appeared before U.S. Magistrate Judge Lisa A. Jensen in federal court in Rockford. Alexander pleaded not guilty and stipulated to detention. Jacobs, Turner, and Hunter each pleaded not guilty and remain in custody pending detention hearings. The hearings for Jacobs and Turner are scheduled for Feb. 6, 2020, and the detention hearing for Hunter is scheduled for Feb. 5, 2020. Rashod Davis was placed on home incarceration with location monitoring.
The public is reminded that charges contain only accusations and are not evidence of guilt. Each defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy count against Jacobs and Turner carries a five-year mandatory minimum prison sentence and a maximum sentence of 40 years. Each count against Jacobs, Turner, Alexander, and Rashod Davis for distribution of heroin, a mixture containing heroin and fentanyl, and crack cocaine carry a maximum sentence of 20 years. The charge of illegal possession of a firearm by a convicted felon against Raymond, Hunter, and Charles Davis carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Federal charges were also announced last week against three Rockford-area residents for alleged drug trafficking.
Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district.
Sacaton Man Sentenced to 14 Years for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX, Ariz. – On February 3, 2020, Earl Edward Lara, 60, of Sacaton, Arizona, an enrolled member of the Gila River Indian Community, was sentenced by U.S. District Judge Michael T. Liburdi to 168 months in prison, to be followed by lifetime supervised release. He will also be required to register as a sexual offender. The defendant pleaded guilty on October 8, 2019, to Abusive Sexual Contact with a Minor.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
Queens Man Pleads Guilty to Kidnapping That Resulted in the Murder of 24-Year-Old New Rochelle WomanRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAVIER ENRIQUE DA SILVA ROJAS (the “defendant” or “DA SILVA”) pled guilty in White Plains federal court to kidnapping Valerie Reyes (the “Victim”) in New Rochelle, New York, and unlawfully transporting her to Connecticut, where her body was found approximately a week later. DA SILVA, who was arrested in Flushing, Queens, in February 2019, pled guilty today before U.S. District Judge Vincent L. Briccetti.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today in court, Javier Da Silva committed a horrid kidnapping that resulted in the tragic death of Valerie Reyes, a young woman with her entire adult life ahead of her. Thanks to the excellent work of the FBI and our local law enforcement partners, Da Silva is now facing serious consequences.”
According to the criminal Information filed today, as well as other public documents, and statements made during today’s court proceeding:
DA SILVA and the Victim were previously in a romantic relationship, which ended in approximately April 2018. In the late evening of January 28, 2019, DA SILVA rented a car from a garage in Flushing, New York, and drove to the Victim’s residence in New Rochelle, New York, arriving in the early morning hours of January 29, 2019. Before he entered the Victim’s home, DA SILVA switched his phone to “airplane mode.” DA SILVA then kidnapped the Victim – covering her mouth with several layers of packing tape and binding her feet and hands with packing tape and twine and putting her in a suitcase – before disposing of her body in Connecticut. Over the ensuing days, DA SILVA used the Victim’s debit card on various occasions to withdraw approximately $5,350 in cash from her bank account. DA SILVA also sold an iPad belonging to the Victim in the days following her death.
On January 30, 2019, Valerie Reyes was reported missing to the New Rochelle Police Department. A few days later, on February 5, 2019, her body was recovered in a red suitcase alongside a public road in the Town of Greenwich, Connecticut. The Connecticut Medical Examiner’s Office later concluded that the Victim died of homicidal asphyxiation.
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DA SILVA, 25, pled guilty to one count of kidnapping. The charge carries a maximum term of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. DA SILVA is scheduled to be sentenced by Judge Briccetti on May 21, 2020, at 11:00 a.m.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation’s (“FBI”) Westchester County Safe Streets Task Force, the FBI New Haven Division, the New Rochelle Police Department, the Greenwich Police Department, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, and the Westchester County Real Time Crime Center.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Mathew Andrews, and Andrew Dember are in charge of the prosecution.
Queens Man Indicted on Sexual Exploitation and Child Pornography ChargesRead the Press Release
A 12-count indictment was filed this afternoon in federal court in Brooklyn charging Orlando Lopez with travelling across a state line with intent to commit aggravated sexual abuse of a child, sexual exploitation of a child and possession of child pornography.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Melinda Katz, Queens County District Attorney, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, for years Lopez horribly victimized numerous young children, some of whom we are still endeavoring to identify,” stated United States Attorney Donoghue. “In addition to his unthinkable abuse of these young children – many of them infants – Lopez compounded his atrocities by producing thousands of photos and videos of his crime and we pledge to prosecute him to the fullest extent.” Mr. Donoghue expressed his grateful appreciation to the Queens County District Attorney’s Office for their assistance with the case.
“The conduct alleged here is horrendous. Mr. Lopez allegedly used friendships with his victims' parents as a means to access children he wouldn't generally have contact with, which leads us to believe there are more victims out there. Readers should be stunned into action by an investigation like this,” stated FBI Assistant Director-in-Charge Sweeney. “We are asking anyone who has had any contact with Mr. Lopez at any point to call 1-800-CALL-FBI. Please take a moment to make this call. The ages and numbers of victims are another warning that we must do more as a society to protect our children.”
“The defendant charged in this Federal indictment is alleged to have violated numerous children for years – and additionally recorded and took still photos of these alleged vile acts,” stated Queens District Attorney Katz. “When I was a member of the Assembly, I authored legislation to hold pedophiles accountable for sexually abusing children. Child predators will be held accountable and prosecuted as we work with our law enforcement partners to end the abuse of innocent children.”
“This defendant is accused of preying on the most vulnerable members of our communities – our children. Together with the Unites States Attorney’s office, the FBI and Queens District Attorney’s office, our NYPD investigators worked relentlessly to bring justice for victims of sexual abuse and exploitation,” stated NYPD Commissioner Shea.
According to the indictment and other court filings, for over a decade, Lopez repeatedly sexually abused more than a dozen children, many of whom lived near his Queens residence. Between approximately May 2010 and June 2018, Lopez produced thousands of explicit photos and videos of one female child who was two years-old when the abuse began. Law enforcement also recovered thousands of other photos and videos from Lopez’s residence depicting him engaging in sexual activity with children. In July 2018, Lopez transported one seven-year-old girl across state lines with the intent to sexually abuse her. In order to gain access to his victims, Lopez attempted to befriend their parents.
The government’s investigation is ongoing. Anyone with information about sexual exploitation by Lopez is asked to contact the FBI at 1-800-CALL-FBI.
If convicted, Lopez faces a mandatory minimum sentence of 30 years and up to life in prison for the transportation charge, and a minimum of 15 years and up to 30 years in prison on each of the child exploitation charges.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorney Tanya Hajjar.
The Defendant:
ORLANDO LOPEZ
Age: 64
Jamaica, QueensE.D.N.Y. Criminal Docket No. 20-52 (EK)
Providence Man Charged with Trafficking Meth, Crack CocaineRead the Press Release
PROVIDENCE – A Providence man currently serving a term of state probation, having completed a sentence of eight years with 30 months to serve at the ACI for drug trafficking, today was ordered detained in federal custody following an investigation and his arrest by members of the FBI Safe Streets Gang Task Force into his alleged trafficking of crystal methamphetamine (meth) and crack cocaine.
Casimiro Pereira, 27, was arrested on Friday as Safe Streets Task Force members executed a federal court-authorized search of his Providence residence, where they allegedly seized, among other items, crystal meth.
It is alleged that on at least five occasions between July 25, 2019, and January 28, 2020, while under law enforcement surveillance, Pereira delivered varying amounts of crystal meth and crack cocaine in exchange for cash.
It is alleged that on July 25 and on August 15, 2019, Pereira sold 20 grams of crystal meth for $360, and that between October 1, 2019, and January 28, 2020, he allegedly delivered between 1.45 and 7 grams of crack cocaine for between $100 and $300.
Each alleged transaction was monitored by members of the FBI Safe Streets Gang Task Force. The drugs were quickly seized by members of law enforcement.
It is alleged that during Friday’s pre-dawn search of Pereira’s residence, agents and officers seized over 140 grams of crystal meth, 8 grams of crack cocaine, and various items used in the preparation, packaging, and distribution of crystal meth and crack cocaine.
Pereira, charged by way of a criminal complaint with distribution of 5 grams or more of crystal methamphetamine and distribution of cocaine base, made his initial appearance in U.S. District Court in Providence today before U.S. District Court Magistrate Judge Patricia A. Sullivan.
Pereira’s arrest and initial appearance are announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Christine D. Lowell and Sandra R. Hebert.
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Pennsylvania man sentenced for role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Armand Taylor, of Penn Hills, Pennsylvania, was sentenced today to 18 months incarceration for his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Taylor, also known as “Scrap,” age 26, pled guilty to one count of “Distribution of Heroin” in October 2019. Taylor admitted to selling heroin in June 2017 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
Senior U.S. District Judge Irene M. Keeley presided.Pen Yan Man Pleads Guilty to Falsifying Inspection Reports for Space PartsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that James Smalley, 42, of Penn Yan, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to falsifying inspection reports for space parts. The charge carries a maximum penalty of 15 years in prison and a $500,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant was a Quality Assurance Engineer at PMI Industries, LLC, a Rochester aerospace precision machining service, specializing in high-tolerance machining for flight critical aerospace parts used to build space flight vehicles by SpaceX and other Department of Defense aerospace contractors. Smalley began his employment at PMI on March 6, 2017, working on contracts for SpaceX, which developed the Falcon launch vehicle family and the Dragon spacecraft family. Falcon and Dragon both currently deliver payloads into Earth orbit for NASA, the Air Force, other United States government agencies and private industry. SQA Services, Inc. (SQA) is a subcontractor to SpaceX, and provides multiple quality assurance functions within the aerospace and defense manufacturing industries.
In January 2018, an internal audit by SQA Services, Inc. (SQA), at the direction of SpaceX, revealed multiple falsified source inspection reports and non-destructive testing (NDT) certifications from PMI Industries, LLC, for Falcon 9 and Falcon Heavy flight critical parts. SpaceX notified PMI of the anomalies. Source inspections and NDT are key tools used in the aerospace industry to ensure manufactured parts comply with quality and safety standards.Specifically, the signed source inspection report had a forged signature of the SQA inspector. SpaceX and SQA officials believed the signature of the inspector was photocopied and cut and pasted onto the source inspection report with a computer.
On February 16, 2018, the NASA Launch Services Program alerted the NASA Office of Inspector General (OIG), and Kennedy Space Center (KSC) Resident Agency, regarding the falsified source inspection reports and false NDT certifications created by PMI. Some of the false source inspection reports and false NDT certifications were related to space launch vehicle components that, at the time of discovery, were to be used for the upcoming Transiting Exoplanet Survey Satellite (TESS) mission, which launched from a SpaceX Falcon 9 rocket on April 18, 2018.
The investigation has identified that Smalley, while an employee of PMI, falsified at least 38 source inspection reports for space vehicle parts procured by SpaceX for the construction of the Falcon 9 and Falcon Heavy series of space vehicles. The investigation has also identified at least 76 individual piece parts that were rejected during source inspection or were never inspected by SQA, then subsequently shipped to SpaceX.
A records request from SpaceX identified seven NASA space flight missions, two United States Air Force space flight missions, and one National Oceanic and Atmospheric Administration (NOAA) space flight mission that were affected by parts purchased by SpaceX from PMI.
Subsequently, SpaceX terminated its business relationship with PMI averaged approximately $200,000 per month from the business with SpaceX, as a disqualified supplier. PMI subsequently closed its operation.
“With space representing our nation’s next frontier, my office will remain vigilant to ensure that American ingenuity does not fall victim to indolence,” noted U.S. Attorney Kennedy. “Failure to comply with quality control measures undermines the integrity of essential equipment and technology.”
The plea is the result of an investigation by the NASA Office of Inspector General, under the direction of Special Agent-in-Charge John Corbett, Central Field Office; the Air Force Office of Special Investigations, under the direction of Special Agent-in-Charge Wendell W. Palmer, Office of Procurement Fraud; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for May 13, 2020, at 2:00 p.m. before Judge Wolford.
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