Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 February 2020
Federal Jury Convicts Roseboro Man of Carjacking and Firearm Charges After Multi-Victim Robbery SpreeRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that yesterday in federal court, DEMERY BERNARD MCLYMORE, a resident of Roseboro, North Carolina, was convicted in a two-day jury trial before United States District Judge James C. Dever, III. The jury found MCLYMORE guilty of each of four charged counts: Carjacking, Possession of a Firearm in Furtherance of the Carjacking, Possession of a Stolen Firearm, and Possession of a Firearm and Ammunition by a Felon.
The evidence at trial showed that beginning in the afternoon of Saturday, September 3, 2016, and running into the early morning hours of the next day, the defendant DEMERY MCLYMORE committed a series of armed robberies, involving a dozen total victims. At trial, three of the victims were able to identify MCLYMORE based on having previously met him. Those victims and several others were able to identify him in court.
The events presented at trial began at around 8:00 p.m. on that Saturday night, when MCLYMORE and another man, Ambrose Lassiter, approached a group of six boys who were in a car that had just parked at the Brantwood Court apartments in Roseboro. The boys, the oldest of which was 18, had gotten together to go to a party that evening. MCLYMORE pulled out a silver handgun and ordered them out of the car. Lassiter tried to intervene and push him away from the boys, but backed away when MCLYMORE threatened to kill everyone. MCLYMORE then proceeded to rob the boys, holding the firearm to neck of one boy, and against the torso of two more. He collected a few dollars, a cell phone, and also took one boy’s shoes. MCLYMORE then ordered the driver to drive him and Lassiter to Clinton, North Carolina. The boy did so as MCLYMORE sat in the passenger seat with the gun on his lap.
Not long after being dropped off in Clinton, MCLYMORE approached a woman who was walking down the street in an area of Clinton known as “the Block.” He showed her that he was carrying the silver handgun, and after walking with her for a few minutes, he pulled out the gun and walked her at gunpoint into an apartment where she had been headed. MCLYMORE proceeded to rob the resident of a wristwatch at gunpoint, but the woman was able to run out of the front door.
MCLYMORE next appeared about a mile away at the Spirit convenience store in Clinton. There, he encountered two young men in a truck in the parking lot, who were stopping by the store on their way out of town for a party. MCLYMORE asked for a ride to his girlfriend’s residence on the Block, and the men agreed. Once at the girlfriend’s residence, MCLYMORE claimed to have lost a pistol. As the men looked for the pistol, MCLYMORE pulled out a shotgun belonging to the driver that had been on a rack in the truck. He pointed the gun at both men and then forced the passenger, at gunpoint, to walk down the road with him.
A couple blocks down the road, MCLYMORE spotted two young boys, 13 and 16 years old, and approached them with the shotgun. He pointed the shotgun at the boys’ chin and chests, then forced the passenger of the truck to check the boys’ pockets for money. MCLYMORE then ordered the boys to strip to their underwear, before running back in the direction of his girlfriend’s house.
Clinton Police Department officers at this time were investigating the earlier residential robbery, and one officer spotted MCLYMORE walking with a shotgun behind a house. With a tip from a neighbor, law enforcement tracked MCLYMORE to the residence he had identified as his girlfriend’s house. They found him in a bedroom with a wristwatch, wadded up money, a shotgun shell, and over three dozen .380 caliber bullets in his pockets. Behind the house, officers found the stolen shotgun, loaded with three shotgun shells that matched the one found in MCLYMORE’s pocket.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Clinton Police Department, Sampson County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorneys Jake D. Pugh and Aakash Singh represented the government.
***
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Lincoln County Man of Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A federal jury sitting in Charleston has found a Lincoln County man guilty of illegally possessing a firearm, announced United States Attorney Mike Stuart.
The jury found that the defendant, James Owen Adkins, was a convicted felon who was prohibited from possessing a firearm. Adkins was previously convicted four times from 2012 through 2017 for subsequent offenses of driving on a license that was revoked for DUI, each conviction being a felony in West Virginia. On June 4, 2019, Adkins removed a Springfield XD 9mm pistol from a truck that drove away from St. Albans police officers during an attempted a traffic stop. Adkins took the pistol from the truck, climbed out and ran off through a residential neighborhood as police pursued him on foot with a K-9. Prior to being apprehended by police, Adkins discarded the firearm under a shrub next to a residence where young children resided. Police officers recovered the firearm at the scene. Adkins admitted in an interview with officers that he was a felon, that he ran from police with the firearm, and that he discarded it.
“Guilty by a jury of his peers. By enforcing our federal firearms laws, we keep guns out of the wrong hands,” said United States Attorney Mike Stuart. “By virtue of his four previous felony convictions, Adkins is prohibited from possessing firearms. The 2nd Amendment is a sacred right for all Americans and it is a right that I hold as paramount. But felons have forfeited that right. I commend the work of the St. Albans Police Department and the work of my entire team in bringing Adkins to justice.”
Adkins faces up to ten years in prison when sentenced on April 30, 2020.
The St. Albans Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the trial. Assistant United States Attorneys Kristin F. Scott and Steven I. Loew are in charge of the prosecution and tried the case before the federal jury.
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
###
Federal Inmate Pleads Guilty to Conspiring to Distribute Synthetic CannabinoidsRead the Press Release
PITTSBURGH – Quoc Boa Trinh pleaded guilty today to conspiring to distribute Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Trinh, age 40, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on July 7, 2020, at 10:00 a.m. Trinh was serving a prior federal prison sentence when he committed the crime to which he pled guilty.
The law provides for a maximum sentence of up to 30 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Evans City Man Pleads Guilty to Robbing NexTier Bank in ZelienopleRead the Press Release
PITTSBURGH, PA- A former resident of Evans City, Pennsylvania, pleaded guilty in federal court to a bank robbery charge, United States Attorney Scott W. Brady announced today.
Chad Vaughan, 33, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was informed that Vaughan robbed the NexTier Bank, located at 226 South Main Street, in Zelienople, on October 23, 2018, of $2,065.00. Vaughan was dressed in all black, including a ski mask and gloves, and demanded "big bills" from the bank tellers. After receiving money from the tellers, he placed the money into a shopping bag before and ran out of the bank. An eye witness observed Vaughan getting into a Ford sedan, which law enforcement later located and searched. During the search of the vehicle, law enforcement found the same black clothing, ski mask and gloves worn by Vaughan when he robbed the bank. Vaughan admitted, during the hearing, that before he robbed the bank, he used his cell phone to search the internet for "what is the jail time for a bank robbery" and "how easy is it to rob a bank." A few days after the bank robbery, Vaughan also admitted that he searched for and viewed an article on a local news website about the NexTier Bank robbery.
Judge Bissoon scheduled sentencing for July 7, 2020, at 2:15 PM. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, 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. Vaughan remains incarcerated pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Borough of Zelienople Police Department conducted the investigation leading to the Indictment in this case.
Elmer, New Jersey, Man Sentenced for Illegally Storing Hazardous Waste at Former Glassboro Drum Reconditioning CompanyRead the Press Release
CAMDEN, N.J. – The former President and owner of a Glassboro, New Jersey, drum reconditioning company was sentenced today to 30 days’ imprisonment for illegally storing hazardous waste, U.S Attorney Craig Carpenito, and Deputy Assistant Attorney General Jean E. Williams of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.
Thomas Toy, 75, of Elmer, New Jersey, previously pleaded guilty before Judge Renee M. Bumb to one count of storing hazardous waste at Superior Barrel and Drum Company, Inc.’s Glassboro, New Jersey, facility, in violation of the Resource Conservation and Recovery Act (RCRA). Judge Bumb imposed the sentence today in Camden federal court.
According to court documents filed in this case and statements made in court:
RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment and provided controls on the management and disposal of hazardous waste. RCRA prohibits the treatment, storage or disposal of any hazardous waste without a permit.
Superior received drums from various industrial customers, cleaned and processed those drums, and then resold them. As the President and owner of Superior, Toy’s responsibilities included making decisions about the storage and disposal of waste, including hazardous waste, at Superior’s facility. Superior did not have a permit to store hazardous waste at Superior’s facility.
Between on or about September 27, 2013, and on or about September 25, 2014, the United States Environmental Protection Agency (EPA) conducted a removal action of waste stored at Superior’s facility. In total, approximately 1,800 containers of waste were removed from Superior’s facility. Much of the waste was found to be hazardous. The direct cost to EPA of the removal action was over $4.2 million.
In addition to the prison term, Judge Bumb sentenced Toy to three years of supervised release, with a special condition of 30 days’ home confinement. She also ordered him to pay $4.2 million in restitution.
U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, under the direction of Special Agent in Charge Tyler C. Amon, with the investigation leading to today’s sentencing.
The Government is represented by Senior Environmental Counsel Kathleen P. O'Leary and Special Assistant United States Attorney Jason Garelick of the U.S. Attorney's Office Government Fraud Unit in Newark, and Trial Attorney Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
Eight Individuals Charged in Alleged Scheme to Get Money, Assets from 80-Year Old Widow in Washington, UtahRead the Press Release
SALT LAKE CITY – A federal grand jury returned a 10-count indictment Thursday afternoon charging eight individuals in connection with an alleged fraud scheme to obtain money and assets from an 80-year-old widow who lives in Washington, Utah. The indictment was unsealed Tuesday afternoon.
The indictment alleges the defendants, who have family relationships, conspired to obtain money and assets from the victim in exchange for false promises to perform work on her property. To further advance the scheme, one of the defendants engaged in romance fraud by enticing the victim to enter into a romantic relationship. He used the romantic relationship to manipulate the victim into giving him money and assets.
The indictment includes one count of wire fraud conspiracy, five counts of money laundering conspiracy – spending, two counts of destruction or concealment of records and tangible objects in a federal investigation, one count of concealment of a document or object, and one count of tampering with a witness or victim.
“We prioritize investigations and prosecutions where seniors are targeted for victimization,” U.S. Attorney John W. Huber said today. “We revere our elders, we do not defraud them.”
Individuals charged in the indictment are Frank Gene Powell, age 51, of Hurricane, Bubby Mern Shepherd, age 58, of Lodi, California, Gloria Jean Powell, age 74, of St. George, Faye Ann Renteria, age 42, of Hurricane, Terrence Quincy Powell, age 23, of St. George, Rocky James Powell Mott, age 40, of Hurricane, Martell Taz Powell, age 25, of Cedar City, and Angela Ruth McDuffie, age 53, of Lehi.
Seven of the eight defendants are in custody. Shepherd will have an initial appearance on the indictment in California Wednesday.
Frank Powell, Faye Ann Renteria, Gloria Powell, Rocky Mott, Taz Powell and Angela McDuffie will have an initial appearance on the indictment at 9 a.m. Thursday in St. George, Utah, before U.S. Magistrate Judge Paul Kohler. A summons was issued to Terrence Quincy Powell to appear at the hearing.
The indictment alleges that starting around March 2019 through October 2019, several of the defendants began soliciting payments from L.N. by offering to perform routine repairs and odd jobs on her property. L.N. created a list of requested repairs, such as painting the exterior of the house, resurfacing the driveway, doing yard work, hammering protruding nails on the roof, fixing a door handle on a car, removing grease spots on the driveway, and installing carpet on an outdoor deck.
According to the indictment, most of the jobs they promised to do were never completed or the quality of work was extremely poor and fell well below any expectation of professionally done work. The victim paid the defendants at least $273,849.20, both indirectly and directly, for this work.
Frank Powell engaged in the romance fraud scam with the victim and told L.N. that he intended to marry her while maintaining a domestic partnership with Renteria. According to the indictment, he is legally married to another woman not involved in the conspiracy.
The money laundering counts allege four defendants, Frank Powell, Gloria Powell, Renteria, and Taz Powell, used money derived from their alleged unlawful activity to buy cars, a Polaris Razor, and a trailer.
Frank Powell and Renteria are charged with two counts of destruction of records or tangible objects in a federal investigation – specifically cell phones – in an effort to impede the investigation of the case. They are also charged with tampering with a victim in an effort to avoid prosecution. Powell and Renteria, according to the indictment, contacted L.N. through written correspondence and phone calls in which they made misleading statements and attempted to persuade L.N. to withhold information from law enforcement and help them avoid prosecution. Frank Powell and Faye Renteria were arrested on a federal complaint in November charging them with tampering with a victim or witness.
The potential maximum penalty for each count of wire fraud conspiracy, destruction or concealment of records or tangible objects in a federal investigation, concealment of a document or object, and tampering with a witness is 20 years in federal prison. The money laundering counts are up to 10 years per count.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the U.S. Department of Justice and the U.S. Attorney’s Office in Utah. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year. Together with federal, state, local and tribal partners, the Department of Justice is committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
Assistant U.S. Attorneys in Utah are prosecuting the case. The FBI is investigating the case. Agents with Utah Adult Probation and Parole have made signification contributions to the investigation.
Delaware Man Sentenced to 12 Months' Incarceration for Defrauding Federally-Funded Job Placement Program in Wire Fraud CaseRead the Press Release
WILMINGTON, Del. David C. Weiss, United States Attorney for the District of Delaware, announced that William A. Brown (“Brown”) was sentenced by U.S. District Court Judge Leonard P. Stark to 12 months’ incarceration for wire fraud on January 29, 2020.
According to court documents and statements made in court, Brown, age 52, of Felton, Delaware, was previously a job placement counselor at Connections Community Support Programs, Inc. (“Connections”). During 2015 and 2016, Connections contracted with the Delaware Division of Vocational Rehabilitation (“DVR”) to help that organization provide employment counseling and job placement services to individuals recovering from drug and alcohol addiction. The federal Workforce Innovation and Opportunity Act provides funding for DVR and sets programmatic goals; DVR receives 80% of its funding through federal government programs.
As part of a multi-year fraud on DVR, Brown submitted falsified client paperwork and created bogus client paystubs so that DVR would pay Connections for completed client services. By submitting more than thirty false documents over a two-year period, Brown not only caused the payment of excess funds to Connections, he made Connections’ services appear more successful than they actually were and so improved his own job security.
In sentencing the defendant, Chief Judge Stark expressed that the defendant’s “actions contribute to undermining public support in these types of programs.”
U.S. Attorney Weiss stated, “The Division of Vocational Rehabilitation performs an important service for Delaware citizens, and its mission is undermined when a self-interested contractor like the defendant commits fraud. By falsifying client paperwork in a way that boosted his own performance numbers and triggered payments by DVR to Connections, the defendant put his own job security above the job prospects of the clients that Connections was contracted to assist. The defendant’s sentence of incarceration sends an important message that fraud on government programs will not be tolerated by the criminal justice system.”
“This defendant perpetrated a fraud against the government, against his employer, and against a public program that supports Delaware citizens, for his own personal gain. When programs funded by the government are victimized by fraud, the FBI will work relentlessly with our local, state and federal law enforcement partners to root out the individuals responsible. Such fraud victimizes not only public programs but also the taxpayers who fund these programs,” said Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Division.
“William Brown defrauded the Delaware Division of Vocational Rehabilitation by submitting false documentation for employment counseling and job placement services intended for clients in drug and alcohol recovery. We will continue to work with our law enforcement partners to protect the integrity of federally-funded job placement programs,” said Acting Special Agent-in-Charge Derek Pickle, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“This case is an example of our commitment to protecting Federal funds from fraud, waste, and abuse, and stop those who seek to enrich themselves at the expense of taxpayers," said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. "The Office of Inspector General and our partners will continue to work tirelessly to safeguard Federal education dollars.”
This case is the result of an investigation conducted by the FBI Baltimore Division’s Wilmington Office, U.S. Department of Education Office of Inspector General, and the U.S. Department of Labor Office of Inspector General, with help from the Delaware Department of Justice. The prosecution was handled by Assistant U.S. Attorney Whitney Cloud.
Couple from Honduras and El Salvador Indicted for Transporting Nine Illegal AliensRead the Press Release
LAKE CHARLES, La. – A federal grand jury has returned an indictment against Julio Francisco Lindo, 30, of Honduras, and Maria Yajaira Urias-Cordova, 26, of El Salvador, both illegally present in the United States, charging them with one count of conspiracy to transport illegal aliens and nine counts of illegal alien transportation, announced David C. Joseph, United States Attorney for the Western District of Louisiana.
According to the indictment, on January 14, 2020, Border Patrol agents conducted a traffic stop of a vehicle traveling east on Interstate 10 in Lake Charles. Julio Lindo, the driver of the vehicle, and Maria Urias-Cordova, a passenger in the vehicle, were transporting nine individuals that they knew to be illegally present in the United States: five from Guatemala, three from Mexico, and one from El Salvador. Agents located five of the nine individuals piled on top of each other in the rear cargo area of the Honda Pilot, and four individuals in the back passenger seat, one of whom was an unaccompanied minor, lying on the floor face up underneath another’s feet.
If convicted, Julio Francisco Lindo and Maria Yajaira Urias-Cordova both face up to 10 years in prison, three years of supervised release, and a $250,000 fine, for each count.
U.S. Border Patrol investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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.
# # #
Colombian National Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
BOSTON – A Colombian national pleaded guilty today in federal court in Boston to his role in a conspiracy to distribute cocaine.
Fredi Catano, a/k/a “Leonardo Favio Gonzalez-Patino,” 35, a Columbian national previously residing in Revere, pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine, and one count each of distribution of 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Chief Judge F. Dennis Saylor scheduled sentencing for June 5, 2020. Catano was indicted in May 2019.
Between November 2017 and May 2019, Catano and co-defendant Wilson Acevedo conspired to distribute 500 grams or more of cocaine. During that period, Catano supplied Acevedo with approximately one ounce of cocaine on multiple occasions, which Acevedo subsequently sold to a cooperating witness. On May 2, 2019, in a drug deal arranged by Acevedo, Catano sold 500 grams of cocaine to the same cooperating witness. Catano and Acevedo were arrested immediately thereafter. A search of Catano’s Revere residence resulted in the seizure of an additional half-kilogram of cocaine, drug distribution paraphernalia and approximately $13,000 in U.S. currency.
In December 2019, Acevedo pleaded guilty and is set to be sentenced on April 6, 2020.
The charges of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine, distribution of 500 grams or more of cocaine, and possession with intent to distribute 500 grams or more of cocaine each carries a sentence of up to 40 years in prison, a mandatory minimum of five years of supervised release and a fine of up to $5 million. Catano will be subject to deportation proceedings following his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Buffalo Photographer Pleads Guilty to Production of Child PornographyRead 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 Delshawn K. Trueheart, 43, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to production of child pornography. Production of child pornography carries a mandatory minimum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that on March 20, 2019, investigators reviewed an SD memory card seized from Trueheart’s residence during the execution of a federal search warrant. The SD card contained a video shot by the defendant which showed Victim 1 naked in the defendant’s East Delavan Avenue photography studio.
In 2019, Victim 1 reported to the Buffalo Police Department that Trueheart had a sexual relationship with her while she was between approximately 15 and 17 years of age.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Buffalo Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for June 8, 2020, at 3:00 p.m. before Judge Sinatra.
# # # #
Bucks County Man Known as the “Straw Hat Bandit” Sentenced to 71 Years in Prison for String of Armed Bank Robberies, Money LaunderingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Richard Boyle, a/k/a the “Straw Hat Bandit,” 60, of Doylestown, PA, was sentenced today to 852 months’ imprisonment, five years’ supervised release and ordered to pay $495,000 restitution by United States District Court Judge Gene E.K. Pratter for committing 11 bank robberies, using a firearm during the commission of 10 of those robberies, and laundering the stolen proceeds.
During a brazen string of 11 separate bank robberies across Bucks and Montgomery counties between 2012 and 2016, the defendant stole a total of $495,686. A serial bank robber, sometimes referred to as the “Straw Hat Bandit” due to his preferred disguise, Boyle stole that stunning total by using threats of violence, including forcing bank employees to open their vaults and cash-rich ATM machines at gunpoint. He made careful plans to avoid apprehension, utilizing disguises, gloves, and even spreading bleach on the floor of the banks to conceal his DNA. Immediately prior to some of the robberies, the defendant attempted to slow the police response time to the bank robbery alarms by calling police or security about false reports, including a bomb threat at a country club, a planned attack at a mall, and a man with a gun at Temple University. After the robberies, the defendant laundered the stolen money by routing the funds through his photography business, Sky Eye View, in an attempt to conceal the source of this income.
“The days of the ‘Straw Hat Bandit’ terrorizing the Philadelphia suburbs are over,” said U.S. Attorney McSwain. “He will no longer be stealing, playing games with the police, or putting innocent lives at risk. Instead, he will be spending the rest of his life in prison – something that he richly deserves.”
“Richard Boyle served time in prison for a prior string of bank robberies,” said Tara McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Once out, he not only picked up where he’d left off, he escalated his crimes – carefully plotting diversions and disguises, and arming himself with a gun. For terrorizing the employees of nearly a dozen banks and putting people’s lives at risk, he’s back behind bars, and this lengthy sentence ensures the so-called ‘Straw Hat Bandit’ won’t ride again anytime soon.”
The case was investigated by the Federal Bureau of Investigation and the Plymouth Township Police Department with assistance from the Pennsylvania State Police, the Montgomery County Department of Public Safety, the Horsham Police Department, the Lower Makefield Township Police Department, the Montgomery Township Police Department, the Middletown Police Department, the Philadelphia Police Department, the Newtown Township Police Department, the Upper Dublin Police Department, the Upper Providence Township Police Department, the Whitpain Township Police Department, the Pennsylvania Department of Corrections, and the Pennsylvania Board of Probation and Parole. The case was prosecuted by Assistant United States Attorneys Robert J. Livermore and Sean P. McDonnell.
Bapchule Man Sentenced to Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. Last week, Deshaun Lee Humeyumptewa, 25, of Bapchule, Arizona, was sentenced by U.S. District Court Judge Dominic W. Lanza to 18 months in prison. Humeyumptewa previously pleaded guilty to Assault Resulting in Substantial Bodily Injury to Intimate or Dating Partner. After release from imprisonment, Humeyumptewa will be on supervised release for three years.
Humeyumptewa physically assaulted the victim while at a residence on the Gila River Indian Community, where both were members. Judge Lanza increased Humeyumptewa’s sentence beyond the applicable guidelines range, stating that the conduct was “extraordinarily serious” and showed a “troubling pattern of behavior.” Judge Lanza further ordered that the 18-month sentence be served consecutive to Humeyumptewa’s 12-month sentence for violating his supervised release in an unrelated case.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
Bank robberies get local man significant federal prison timeRead the Press Release
GALVESTON, Texas - A 26-year-old Houston man is headed to federal prison following his convictions related to the 2019 robberies of a BBVA Compass Bank in Friendswood and Texas First Bank in Galveston, announced U.S. Attorney Ryan K. Patrick.
Tremaine Venters pleaded guilty Oct. 30, 2019, to two counts of aiding and abetting bank robbery and aiding and abetting brandishing of a firearm during and in relation to a crime of violence.
Today, U.S. District Judge Jeffrey Brown handed Venters a 57-month sentence for the robbery. He also received an additional 168 months for the firearms charge which must be served consecutively to the other sentence imposed for a total 225-month term of imprisonment. At the hearing, the court noted his prior felony offenses and criminal history as well as the necessity of keeping society safe from individuals committing offenses with guns.
On Jan. 3, 2019, Venters entered the BBVA Compass Bank in Friendswood along with Jordan Johnson. Both men approached the counter, placed guns in front of tellers and demanded money. The tellers complied and Venters and Johnson exited the bank.
Less than two weeks later, Venters and Johnson also robbed the Texas First Bank in Galveston with a firearm. Venters walked up to the teller counter and tossed bag on the counter. Simultaneously, Johnson placed a gun on the counter and demanded “hundreds and fifties” from a teller.
He then walked over to another teller station and said “I need hundreds.” That teller mistakenly believed he just wanted to make a withdrawal and reached for a withdrawal slip. At that time, Johnson said “no” and tapped his gun on the teller counter. She then opened her cash drawer, at which time Johnson told her to just give him the whole drawer. He put the money in a plastic grocery bag, and both men left.
Bank employees were able to get a vehicle description and a license plate number. Authorities then saw a car matching the description traveling across the causeway from Galveston.
They were soon arrested. Inside the vehicle, law enforcement found a firearm and cash belonging to First Texas Bank.
Jordan Johnson, 27, Houston, also pleaded guilty and is pending sentencing June 24.
Both men have been and will remain in custody.
The FBI Violent Crime Task Force and the Houston Police Department conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
Baltimore Man Sentenced to Five Years in Federal Prison for Possession of FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Devron Lasha Young, Jr., age 22, of Baltimore, Maryland, yesterday to five years in federal prison, followed by four years of supervised release, for possession with intent to distribute approximately 75 grams of fentanyl and acetyl fentanyl—enough to kill 37,500 people. Young was charged in federal court as part of a federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“As a result of the combined efforts of local, state, and federal law enforcement partners, Devron Young now faces five years in federal prison, where there are no suspended sentences and no parole, ever. Drug dealers should be aware that in Baltimore City we are teaming up to arrest and prosecute those who peddle the deadly poison of fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his guilty plea, on February 22, 2019, Young hailed an illegal taxi at the intersection of North Avenue and Pennsylvania Avenue in northwest Baltimore, the location of an open-air drug market. Young offered the driver $10 to drive him a few blocks away, wait while he went into a building, and drive him back to the corner of North and Pennsylvania. Shortly after Young entered the vehicle, a Baltimore police officer stopped the car for a traffic violation. The officer asked the driver and Young where they were going. Young answered that the driver was a friend from school and that she was giving him a ride home. Neither statement was true.
When the officer asked the driver for her license and registration, she stated that they were in her wallet, which was located in a bag behind the driver’s seat. With the officer’s permission, she retrieved the bag. The officer saw that, aside from the driver’s wallet and some personal items, the bag contained only children’s diapers. The driver then returned the bag to the rear driver-side floor.
The driver produced a learner’s permit, but Young was unable to provide any form of identification. Young provided his personal information to the officer, who then advised Young and the driver that he was going to tow the vehicle because it was unregistered and uninsured. The officer returned to his vehicle to run law enforcement database inquiries on the driver and Young.
While the officer was in his patrol car, he observed Young reaching toward the rear passenger floor. The officer walked back to the vehicle and asked the driver to step out. He asked if there was anything illegal in the vehicle, and the driver told him there was not, then consented without hesitation to a search of the vehicle.
While the driver stayed outside the vehicle, the officer radioed for backup, and returned to the car to speak with Young. The officer asked Young if he had anything illegal on his person, which Young denied. Young then agreed to the officer’s request to perform a protective pat-down outside the vehicle. However, when the officer opened the door, Young tried to run away. Before Young could escape, the officer grabbed Young and placed Young under arrest.
Once Young was in custody, the officer searched the vehicle. He discovered that the bag had been moved to the middle of the vehicle’s back row. The officer seized the bag and noticed that, on top of the diapers, there was now a brown plastic bag that had not been there before. The brown plastic bag contained 30 separate packs holding a total of 752 capsules. The Baltimore Police Department’s Laboratory Section subsequently analyzed the capsules and determined that each contained both fentanyl and acetyl fentanyl.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance. Mr. Hur thanked Assistant U.S. Attorney Jeffrey J. Izant, who prosecuted the case.
# # #
Assault on elderly woman sends Busby man to prisonRead the Press Release
BILLINGS—A Busby man who admitted assaulting an elderly woman in her 80s as she tried to break up a fight was sentenced today to five years and three months in prison, three years of supervised release and ordered to pay $26,599 restitution for Medicare, U.S. Attorney Kurt Alme said.
Calvin Lee Lamewoman, 38, pleaded guilty in September to assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided. Judge Watters ordered the sentence to run consecutively to another sentence.
The assault occurred on May 5, 2016 in Busby on the Northern Cheyenne Indian Reservation, the prosecution said in court records. The victim was in her 80s at the time and has since died, but her death was not from injuries suffered in the assault. The victim suffered bruises to her chest, broken ribs, a broken jaw and other fractures and bruises.
Lamewoman was fighting with another person at a Busby residence when the victim entered the living room to try to break up the argument. Lamewoman turned on the victim and repeatedly hit and kicked her, knocking her down.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
XXX
Alleged Members of Jersey City Gang Charged with Shooting Five PeopleRead the Press Release
NEWARK, N.J. – Two alleged members of a Jersey City gang have been charged with the June 30, 2018, shooting of five people, U.S. Attorney Craig Carpenito announced today.
Jalil Holmes, a/k/a “Broadday,” 20, of East Orange, New Jersey, and Jidon Rogers, 37, of Jersey City, New Jersey, made their initial appearances today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. They each are charged by complaint with five counts of assault with a dangerous weapon in aid of racketeering activity and five counts of discharging a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
Holmes and Rogers are allegedly both associated with a street gang known to operate in the area of the Marion Gardens Housing Complex in Jersey City. While paying homage to a fellow gang member who was murdered on June 30, 2013, Holmes, Rogers, and two other gang members traveled from the Marion Gardens Housing Complex to the area where their fellow gang member had been murdered five years prior, with the intention of shooting rival gang members. Upon arriving in that area, Holmes and the two other gang members exited the car that Rogers drove, brandished handguns, and fired multiple shots into a crowd of people. “Victim One” sustained one gunshot wound to his left thigh; “Victim Two” sustained one gunshot wound to his right calf; “Victim Three” sustained one gunshot wound to his right leg; “Victim Four” sustained two gunshot wounds to her upper right shoulder; and “Victim Five” sustained a gunshot wound to his left wrist.
Each count of assault with a dangerous weapon in aid of racketeering activity is punishable by up to 20 years in prison. Each count of discharging a firearm during a crime of violence carries a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any terms imposed on the other counts. Holmes also has separate pending charges for a January 9, 2019 shooting of rival gang members.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the Organized Crime and Gangs Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Holmes: Mark Berman, Esq., Hackensack, New Jersey
Rogers: Victor Afanador, Esq., Newark, New JerseyAlexandria Man Indicted for Extortion Scheme Involving ExplosivesRead the Press Release
ALEXANDRIA, La. – A federal grand jury has returned an indictment against Daniel Dewayne Aikens, 37, of Alexandria, charging him with one count of making a threat by telephone, announced David C. Joseph, United States Attorney for the Western District of Louisiana.
According to the indictment, on January 2, 2020, Aikens used a cell phone to contact an employee of PayDay Today and made a threatening demand for $10,000 in cash. He initially spoke to the employee about a set of lost keys. While the employee was in the parking lot looking for the keys, a device exploded in a trash can near the building. Aikens told the employee that he had caused the explosion and threatened another explosion if he was not given $10,000 in cash. Aikens was discharged from his position as a commissioned officer in the Louisiana National Guard shortly after his arrest in connection with this incident.
If convicted, Daniel Aikens faces up to 10 years in prison, three years of supervised release, and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, Rapides Parish Sheriff’s Office, Alexandria Police Department, U.S. Marshal’s Service, Louisiana State Police, and the Alexandria Fire Department investigated the case, with the assistance of the Alexandria Public Safety Commissioner and the City of Alexandria Mayor’s Office. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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.
# # #
Agawam Man Charged with Defrauding VA Hospitals by Failing to Inspect Medical Gas SystemsRead the Press Release
BOSTON – A vendor for several Veterans Affairs medical facilities was charged yesterday in connection with a scheme to profit by billing for, but failing to perform, critical medical gas inspections at VA facilities.
Chester Wojcik, 49, of Agawam, Mass., was charged with one count of wire fraud.
It is alleged that from May 29, 2014, through March 5, 2015, Wojcik, as the owner of Alliance Medical Gas Corporation, engaged in a scheme to defraud the VA by creating false invoices and reports for medical gas inspections that never took place. Medical gas supply systems deliver piped gases, including compressed air, oxygen, nitrous oxide, nitrogen, and carbon dioxide, to operating rooms, recovery rooms and patient rooms. Medical gas supply systems must be inspected and maintained regularly to ensure the safety of patients and medical professionals. Wojcik allegedly failed to perform, and then lied about, scheduled inspections of medical gas systems at VA facilities in Sioux Falls, SD, Tuskegee AL, and Montgomery, AL. Wojcik was allegedly paid $8,981 by the VA for services that his company did not perform.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Stachowiak, Acting Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
4 February 2020
Yuma, Arizona Man Pleads Guilty to Fentanyl DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Marco Ali Orduno, age 28, of Yuma, Arizona, entered a guilty plea to Possession With Intent To Distribute Fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that on or about July 10, 2018, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Conway represented the United States.
Wetzel County man charged with drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Gordon Lloyd Swartz, IV, of Jacksonburg, West Virginia, was indicted today on a drug charge, U.S. Attorney Bill Powell announced.
Swartz, age 44, was indicted on one count of “Possession with Intent to Distribute Methamphetamine.” Swartz is accused of having methamphetamine in October 2019 in Tyler County.
The government is also seeking the forfeiture of $36,573 in cash, two 9mm pistols and ammunition, one faux firearm suppressor, and three holsters.
Swartz 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.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The West Virginia Division of Natural resources-Law Enforcement Section investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Waterbury Man Sentenced to 30 Months in Federal Prison for Illegally Possessing HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAEKWON OVERSTREET, 24, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on January 29, 2019, while he was on state parole following a conviction for conspiracy to commit robbery in the first degree, Overstreet attended a Project Safe Neighborhoods (PSN) call-in meeting in Waterbury. PSN call-in meetings, which in Waterbury are run by the U.S. Attorney’s Office and the Waterbury Police Department, are held monthly for individuals who are recently released from prison. Speakers from a variety of social service providers and educational institutions offer assistance to the attendees in the form of jobs, mental health treatment, anger management and educational opportunities. Members of law enforcement also present a firm message that gun possession is unacceptable in light of its direct connection to gun violence, which exacts a heavy toll on the residents of Connecticut’s cities.
On February 19, 2019, as part of a special parole compliance check, law enforcement officials searched Overstreet and found that he had in his possession a loaded Springfield 9mm firearm. The gun was stolen in Waterbury in 2005.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Overstreet has been detained since his arrest on February 19, 2019. On September 30, 2019, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
This matter has been investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Virginia man sentenced for role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Lee Gray, II, of Marshall, Virginia, was sentenced today to 78 months incarceration for his involvement in a drug distribution conspiracy, U.S. Attorney Bill Powell announced.
Gray, age 29, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in September 2019. Gray admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosescuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part 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.
Chief U.S. District Judge Gina M. Groh presided.
Virginia man sentenced for role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Todd Jason Erwin, of White Post, Virginia, was sentenced today to 33 months incarceration for his involvement in a drug distribution conspiracy, U.S. Attorney Bill Powell announced.
Erwin, age 43, pled guilty to one count of “Conspiracy to Distribute Cocaine Base and Heroin” in September 2019. Erwin admitted to working with others to distribute cocaine base and heroin in October and November 2018 in Berkeley County.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted 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.
Chief U.S. District Judge Gina M. Groh presided.
Utica Men Found Guilty of Drug Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Abner Peralta, age 30, and Luis Colon age 35, both of Utica, New York, were found guilty yesterday of drug trafficking charges following a five-day jury trial in federal court in Utica, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Peralta and Colon were found guilty of conspiracy to possess with intent to distribute and the distribution of cocaine in the Utica area from October 2016 to October 2017. Additionally, Peralta was found guilty of possession with intent to distribute of 28 grams or more of cocaine base (crack cocaine). The evidence at trial showed that Peralta and Colon conspired with each other and others to distribute cocaine in the Utica area and that Peralta, the head of the conspiracy, had access to kilogram-quantities of cocaine. The evidence also showed that Peralta maintained a drug “stash house” in Utica where he kept drugs and drug packaging materials. A fingerprint analyst testified that he found Peralta’s fingerprints on some of the packaging material seized from the stash location. The cocaine base Peralta possessed with the intent to distribute was found during a search warrant of his stash location in October 2017. Law enforcement officers also searched Peralta’s house and found multiple items in the garage that tested positive for cocaine residue, including a digital scale.
At sentencing, Peralta and Colon each face a maximum term of 40 years in prison for their offenses of conviction, and Peralta additionally faces a mandatory minimum term of imprisonment of 5 years. They each face fines of up to $5 million and supervised release terms of between 4 years and life following their release from imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. A date for sentencing has not yet been set.
This case was investigated by the DEA with assistance from the New York State Police, Oneida County Sheriff’s Office, Rome Police Department, Utica Police Department, Cortland Police Department, Investigators from the Onondaga County District Attorney’s Office; U.S. Border Patrol; and Internal Revenue Service – Criminal Investigation (IRS-CI), and is being prosecuted by Assistant U.S. Attorneys Michael F. Perry and Thomas Sutcliffe.
US Attorneys Note Substantial Drop in Opioid Prescriptions Following Cooperation Between Law Enforcement & Medical CommunityRead the Press Release
MADISON, WIS. – Scott C. Blader and Matthew D. Krueger, United States Attorneys for the Western and Eastern Districts of Wisconsin, respectively, announced today that their offices have observed a substantial decrease in opioid prescribing among medical providers who received warning letters as part of last year’s opioid initiative.
Last February, the United States Attorneys’ Offices sent letters to more than 180 Wisconsin physicians, physician assistants, and nurse practitioners advising that a review of their prescribing practices showed that they were prescribing opioids at relatively high levels compared to evidence-based prescribing guidelines. The letters warned that these prescribing practices could be contributing to the flow of prescription opioids into illegal markets and could lead to civil and criminal enforcement actions. Thanks partly to this initiative and the consistent efforts by the Wisconsin medical community to stem over-prescribing, Wisconsin has seen substantial progress in the fight against opioid abuse.
Last year’s opioid initiative has also led to meaningful discussions and collaboration amongst members of the law enforcement and medical communities. In April, the United States Attorneys’ Offices coordinated a roundtable discussion in Madison, where representatives from federal and state law enforcement and the Wisconsin medical community discussed collaborative methods for stemming opioid overprescribing among the state’s prescribers. In October, the United States Attorneys’ Offices met with the medical community and other treatment, prevention, harm reduction, and enforcement partners to hold an opioid and methamphetamine summit with the theme of “Making Progress Through Collaboration.” More than 500 people attended the two-day conference, which featured updates on trends from the United States Drug Enforcement Administration as well as the Wisconsin Society of Addiction Medicine. The United States Attorneys have also sent representatives to speak at hospital meetings and medical society gatherings about the dangers of opioid diversion. Through these efforts, the United States Attorneys seek to establish a dialogue with the medical community about safe and legal prescribing practices, and how best to address the state’s opioid epidemic.
In addition to the letters and outreach, the United States Attorneys and their federal and state law enforcement partners have continued to pursue cases in the past year against medical providers who knowingly prescribe narcotics beyond medical necessity. Recently, in the Western District of Wisconsin, Thomas Strick, a Wausau physician, was sentenced to three months in federal prison and one year of supervised release for diverting prescription fentanyl for personal use. In Strick’s case, the government’s investigation revealed that between 2011 and 2018, he had prescribed fentanyl patches to at least six patients without medical need and instructed those patients to return the filled prescriptions to him for personal use. In total, Strick had written 193 fraudulent fentanyl prescriptions and acquired 3,156 patches as part of the scheme. After Strick’s guilty plea, United States Attorney Blader reaffirmed his office’s commitment to holding accountable “medical practitioners who violate their oaths.” According to Blader, “our goal is to work with law enforcement and medical partners to stop addictions before they start by stemming the diversion of prescription opioids to unlawful channels.”
Likewise, in the Eastern District of Wisconsin, Steven Kotsonis, a Menomonee Falls medical doctor, and his office manager, were convicted of unlawfully distributing Oxycodone. Both face up to twenty years in prison at sentencing. After Kotsonis and his office manager pled guilty on December 17, 2019, United States Attorney Krueger said, “this case underscores the Justice Department’s commitment to combatting the opioid crisis.” He emphasized that “far too many Wisconsinites have seen loved ones suffer from an opioid addiction or, worse, an overdose. Because the path to addiction often begins with prescription opioids, we are committed to investigating and prosecuting prescribers like Kotsonis who deal drugs behind the façade of medical practice.”
The active participation of Wisconsin medical systems, medical societies, and medical regulators has been essential to reducing opioid over-prescribing in Wisconsin. Many medical systems have undertaken internal reviews of employee prescribing practices, while medical societies have reinvigorated programs aimed at training providers about safe and lawful opioid prescribing. The Wisconsin medical community is also engaged in renewed information sharing efforts designed to identify and stem pill-seeking behavior before prescriptions are written.
Due to sustained efforts of all partners, total opioid prescriptions in Wisconsin have declined by 30 percent between 2016 and 2019, according to data from the Wisconsin Prescription Drug Monitoring Program. The letters sent by the United States Attorneys appear to have amplified this downward trend. Looking at Medicare prescription data, the total amount of opioids that letter recipients prescribed from July 2017 to June 2019, decreased by about 20 percent in the Western District and about 29 percent in the Eastern District compared the total amount opioids that recipients prescribed from July 2016 to June 2018, before the letters were sent.
In the coming year, the United States Attorneys’ Offices will continue to work with the Wisconsin medical community in support of their efforts to educate providers and monitor opioid prescribing. This will include redoubling efforts to ensure that providers have access to the best information available before prescribing opioids by ensuring that law enforcement is submitting timely and accurate overdose and arrest data to the Wisconsin Prescription Drug Monitoring Program. The United States Attorneys’ Offices will also continue to monitor opioid prescribing data and take further action, as necessary, against prescribers whose practices substantially exceed evidence-based prescribing guidelines.
U.S. Attorney's Office Reaches ADA Settlement with Circle Hotel in FairfieldRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Circle Hotel in Fairfield, to resolve allegations that the hotel was not in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Circle Hotel was not accessible for individuals with physical disabilities. The hotel is in the process of making the changes required by the settlement agreement, including designing and constructing accessible guest rooms, an accessible route to the new guest rooms, and a new accessible restroom in the hotel’s lobby area. The settlement agreement also requires the Circle Hotel to add accessible parking spaces, an accessible route from the new accessible parking spaces to the designated accessible entrance, and accessible seating in the hotel’s lobby, breakfast and patio areas. The hotel will continue to make improvements over the next two years.
Under federal law, private entities that own or operate places of “public accommodation,” including hotels and inns, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted the cooperation of the owners of the Circle Hotel throughout this investigation and applauded their willingness to improve accessibility at their hotel without the need for litigation.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
U.s. Attorneys Mark Opioid Warning Letter Anniversary: Substantial Drop in Opiate Prescriptions Follows Cooperation Between Law Enforcement and Medical CommunityRead the Press Release
Scott C. Blader and Matthew D. Krueger, United States Attorneys for the Western and Eastern Districts of Wisconsin, respectively, announced today that their offices have observed a substantial decrease in opioid prescribing among medical providers who received warning letters as part of last year’s opioid initiative.
Last February, the United States Attorneys’ Offices sent letters to more than 180 Wisconsin physicians, physician assistants, and nurse practitioners advising that a review of their prescribing practices showed that they were prescribing opioids at relatively high levels compared to evidence-based prescribing guidelines. The letters warned that these prescribing practices could be contributing to the flow of prescription opioids into illegal markets and could lead to civil and criminal enforcement actions.
Thanks partly to this initiative and the consistent efforts by the Wisconsin medical community to stem over-prescribing, Wisconsin has seen substantial progress in the fight against opioid abuse. Last year’s opioid initiative has also led to meaningful discussions and collaboration amongst members of the law enforcement and medical communities. In April, the United States Attorneys’ Offices coordinated a roundtable discussion in Madison, where representatives from federal and state law enforcement and the Wisconsin medical community discussed collaborative methods for stemming opioid overprescribing among the state’s prescribers.
In October, the United States Attorneys’ Offices met with the medical community and other treatment, prevention, harm reduction, and enforcement partners to hold an opioid and methamphetamine summit with the theme of “Making Progress Through Collaboration.” More than 500 people attended the two-day conference, which featured updates on trends from the United States Drug Enforcement Administration as well as the Wisconsin Society of Addiction Medicine.
The United States Attorneys have also sent representatives to speak at hospital meetings and medical society gatherings about the dangers of opioid diversion. Through these efforts, the United States Attorneys seek to establish a dialogue with the medical community about safe and legal prescribing practices, and how best to address the state’s opioid epidemic.
In addition to the letters and outreach, the United States Attorneys and their federal and state law enforcement partners have continued to pursue cases in the past year against medical providers who knowingly prescribe narcotics beyond medical necessity. Recently, in the Western District of Wisconsin, Thomas Strick, a Wausau physician, was sentenced to three months in federal prison and one year of supervised release for diverting prescription fentanyl for personal use.
In Strick’s case, the government’s investigation revealed that between 2011 and 2018, he had prescribed fentanyl patches to at least six patients without medical need and instructed those patients to return the filled prescriptions to him for personal use. In total, Strick had written 193 fraudulent fentanyl prescriptions and acquired 3,156 patches as part of the scheme.
After Strick’s guilty plea, United States Attorney Blader reaffirmed his office’s commitment to holding accountable “medical practitioners who violate their oaths.” According to Blader, “our goal is to work with law enforcement and medical partners to stop addictions before they start by stemming the diversion of prescription opioids to unlawful channels.”
Likewise, in the Eastern District of Wisconsin, Steven Kotsonis, a Menomonee Falls medical doctor, and his office manager, were convicted of unlawfully distributing Oxycodone. Both face up to twenty years in prison at sentencing.
After Kotsonis and his office manager pled guilty on December 17, 2019, United States Attorney Krueger said, “this case underscores the Justice Department’s commitment to combatting the opioid crisis.” He emphasized that “far too many Wisconsinites have seen loved ones suffer from an opioid addiction or, worse, an overdose. Because the path to addiction often begins with prescription opioids, we are committed to investigating and prosecuting prescribers like Kotsonis who deal drugs behind the façade of medical practice.”
The active participation of Wisconsin medical systems, medical societies, and medical regulators has been essential to reducing opioid over-prescribing in Wisconsin. Many medical systems have undertaken internal reviews of employee prescribing practices, while medical societies have reinvigorated programs aimed at training providers about safe and lawful opioid prescribing. The Wisconsin medical community is also engaged in renewed information sharing efforts designed to identify and stem pill-seeking behavior before prescriptions are written.
Due to sustained efforts of all partners, total opioid prescriptions in Wisconsin have declined by 30 percent between 2016 and 2019, according to data from the Wisconsin Prescription Drug Monitoring Program. The letters sent by the United States Attorneys appear to have amplified this downward trend. Looking at Medicare prescription data, the total amount of opioids that letter recipients prescribed from July 2017 to June 2019, decreased by about 20 percent in the Western District and about 29 percent in the Eastern District compared the total amount opioids that recipients prescribed from July 2016 to June 2018, before the letters were sent.
In the coming year, the United States Attorneys’ Offices will continue to work with the Wisconsin medical community in support of their efforts to educate providers and monitor opioid prescribing. This will include redoubling efforts to ensure that providers have access to the best information available before prescribing opioids by ensuring that law enforcement is submitting timely and accurate overdose and arrest data to the Wisconsin Prescription Drug Monitoring Program.
The United States Attorneys’ Offices will also continue to monitor opioid prescribing data and take further action, as necessary, against prescribers whose practices substantially exceed evidence-based prescribing guidelines.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
U. S. Settles False Claims Act Allegations Against Southeastern Retina AssociatesRead the Press Release
Knoxville, Tenn. – Southeastern Retina Associates ("SERA") has paid $1.5 million to resolve False Claims Act allegations in the United States District Court for the Eastern District of Tennessee.
As part of the settlement, SERA entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), requiring the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing and monitoring designed to address the conduct at issue in the case. Southeastern Retina Associates has over 250 employees in offices throughout eastern and middle Tennessee, northern Georgia, and southwestern Virginia.
The settlement resolves allegations that, from 2009 through 2016, the practice improperly used the Modifier 25 billing code to charge Medicare and Medicaid for exams that were not separately billable from other procedures performed on the same day. The settlement also resolves allegations that certain Medicare and Medicaid billings during the same period included charges for exams at higher levels than appropriate.
"It is important that medical providers present appropriate and reasonable charges for services that are paid for by the taxpayers. This office remains committed to ensuring that publicly funded healthcare systems are not charged more than what the billing rules prescribe," said U.S. Attorney J. Douglas Overbey.
"Healthcare fraud and abuse impacts every American. The critical resources that are removed from our health care system due to exploitation results in higher health care cost for everyone. The FBI will continue to work closely with federal, state, and local partners to investigate those who abuse federally funded healthcare programs," said Joseph E. Carrico, Special Agent in Charge of the Knoxville Division of the Federal Bureau of Investigation.
"We will continue to pursue doctors that use deceptive billing practices to make more money. These types of schemes cost federal health care programs millions of dollars and cheat taxpayers in the process," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
"The Department of Veterans Affairs Office of Inspector General is committed to working with our law enforcement partners to identify and investigate those who defraud or abuse VA’s healthcare system. This settlement shows that VA-OIG will continue to aggressively investigate anyone who overbills VA programs intended to care for our nation’s veterans," said Kim R. Lampkin’s, Special Agent in Charge of VA-OIG’s Mid-Atlantic Field Office.
"False claims that overbill the federal healthcare programs undermine the integrity of the Federal Employees Health Benefits program and increase the cost of medical care for us all. OPM-OIG thanks the U. S. Attorney’s Office and our law enforcement partners. Today’s settlement demonstrates joint commitment to investigating and prosecuting fraudulent billing practices that waste taxpayer dollars," said Thomas W. South, Deputy Assistant Inspector General, Office of the Inspector General (OPM-OIG).
This investigation was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee, U.S. Department of Health and Human Services Office of Inspector General, U.S. Office of Personnel Management, Knoxville Division of the FBI, and the Tennessee Attorney General’s Office. The investigation was prompted by a lawsuit filed in 2015 under the qui tam or "whistleblower" provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case will be $270,000.
Assistant United States Attorneys Jessica Sievert, Jeremy Dykes, and Rob McConkey, represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
###
Two South Florida Residents Sentenced to Prison Terms for Stolen Identity and Tax Refund Fraud SchemeRead the Press Release
Two defendants involved in a stolen identity and tax refund fraud scheme were sentenced to federal prison terms by U.S. District Judge Marcia G. Cooke. The scheme involved using stolen identities to file fraudulent income tax returns that falsely claimed refunds.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office made the announcement.
Maurice Marcellus, 37, of Miami, Florida, received a prison term of 60 months and three years of supervised release. Ludrick Joseph, 38, of North Miami Beach, Florida, received a prison term of 48 months and three years of supervised release. Both defendants are jointly responsible for paying $563,210 in restitution to the Internal Revenue Service.
A federal grand jury indicted Marcellus and Joseph on February 14, 2019. They pled guilty on November 13, 2019.
According to court documents, Joseph worked for Capital Financial Management, LLC, a tax preparation business incorporated in Miami-Dade County. Marcellus was the manager and sole registered agent of the company and ran the day-to-day operations of the business. Between 2012 and 2014, Joseph and Marcellus prepared and electronically filed federal tax returns for individuals who either did not authorize Joseph or Marcellus to possess their personal identifying information or did not authorize the defendants to file returns on their behalf. Some of the returns were electronically filed under an Electronic Filing ldentification Number (EFIN) assigned to a person later determined by agents to be a victim of identity theft.
Joseph and Marcellus stored thousands of victims’ personal identifying information in electronic and physical files at Capital Financial Management, LLC. One of the lists in Joseph’s folder contained the personal identifying information of people who Joseph knew were deceased. A spreadsheet located in both Joseph’s and Marcellus's computer files contained the names, addresses, phone numbers, and social security numbers of over two thousand students who attended the ATI College of Health in Miami, Florida. Marcellus obtained that spreadsheet while working for the ATI College of Health as an academic advisor. He provided a copy to Joseph in order to file fraudulent tax returns using the student victims’ information.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI. She also thanked the Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service (USSS), Miami Field Office, U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI), and U.S. Postal Inspection Service (USPIS), Miami Division. Assistant U.S. Attorney Shane Butland prosecuted this case. Assistant U.S. Attorney William Zloch is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Three Men Convicted of Gunpoint Robbery of East Mount Airy, Philadelphia Corner StoreRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Donnie Smith, 40, Abid Stevens, 39, and Maurice Quinn, 41, all of Philadelphia, PA were convicted at trial of Hobbs Act robbery and carrying and using a firearm during the commission of a federal crime. The charges stem from an armed robbery of a corner grocery store in East Mount Airy in Philadelphia.
In March 2019, defendant Quinn entered RD Grocery and complained to a store employee that the store’s ATM had given him fake money. He then attempted to take $100 from the register, as well as a firearm kept by the owner behind the counter. When he was unsuccessful in grabbing the money or the firearm, Quinn left and returned with defendants Smith and Stevens, both of whom were armed with black semi-automatic handguns. Smith brandished his firearm in the store employee’s face and took the store owner’s firearm from behind the counter. Quinn again attempted to take cash from the register but failed. He then demanded that the store employee open the register for him; the employee withdrew $100 in cash and the defendants left.
Philadelphia Police officers arrived as defendant Smith drove away in his car. After a brief pursuit, Smith abandoned his car and fled on foot. Officers recovered the stolen firearm and an article of clothing from Smith’s car. Using the recovered items and surveillance footage of the robbery, Philadelphia Police officers were able to identify the defendants.
“If you rob a store with a gun in Philadelphia, you can stand by for serious federal consequences,” said U.S. Attorney McSwain. “The store employee here was simply doing his job and putting in an honest day’s work – he should not have had to worry about someone putting a semi-automatic weapon in his face. My Office is focused on punishing and deterring this type of violent crime as we grapple with the public safety crisis in Philadelphia that is being abetted by the District Attorney’s reckless policies.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert Eckert and Special Assistant United States Attorney Ashley N. Martin.
Suspected Neo-Nazi Pleads Guilty to Gun CrimeRead the Press Release
A suspected neo-Nazi has pleaded guilty to a gun crime following an investigation by the FBI, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Aiden Bruce-Umbaugh, 23, pleaded guilty to possession of firearms and ammunition by a prohibited person in Lubbock in January.
Video unsealed by the Court yesterday evening shows the defendant, handcuffed and clad in an orange jumpsuit, telling agents, “I assume you’re here because of my swastika flag and my firearms.”
According to his plea papers, Mr. Bruce-Umbaugh – who was arrested in November in Post, Texas, dressed in tactical gear – admitted to possessing AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, and assorted ammunition while being an unlawful user of a controlled substance. (Federal law prohibits unlawful users of controlled substances to possess firearms.)
Mr. Bruce-Umbaugh admits he and Kaleb Cole were pulled over in a blue Ford Focus on Nov. 4. Inside the vehicle, law enforcement discovered the firearms, a small canister of marijuana, and a vial of THC oil.
Mr. Bruce-Umbaugh – who “avoided eye contact and limited conversation” with law enforcement and denied having anything illegal inside the vehicle during the traffic stop – later admitted that the firearms, marijuana, and THC belonged to him, telling investigators he smoked marijuana on a daily basis, according to plea papers.
“The Northern District of Texas is committed to keeping guns out of the hands of dangerous individuals,” said U.S. Attorney Nealy Cox. “As a drug user, this defendant should never have been allowed to possess firearms. We’re grateful to our law enforcement partners for helpings us keep this defendant, and his guns, off the streets.”
“The amount of weapons and ammunition seized from the defendant could have caused serious harm. Luckily, the FBI and our law enforcement partners successfully intervened before an act of violence could be committed,” said FBI Special Agent in Charge Matthew J. DeSarno. “The FBI will continue working with our partners to protect the communities we serve.”
In a detention hearing in November, prosecutors argued the government had reason to believe Mr. Bruce-Umbaugh is a member of AtomWaffen Division, a neo-Nazi hate group.
In jailhouse phone calls, Mr. Bruce-Umbaugh allegedly referenced his affiliation with “the group,” declared he was “a Nazi,” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.
Propaganda videos admitted into evidence and released by the Court Monday – which spew hateful rhetoric against Jews – depict members of the AtomWaffen Division at self-described “hate camps” practicing hand-to-hand combat and shooting firearms.
“Race war now!” they cry, before one displays a Nazi salute.
The defendant now faces a sentence of up to 10 years in federal prison. He is slated to be sentenced on Thursday, April 23.
The Federal Bureau of Investigation’s Lubbock Resident Agency, the Garza County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorneys Russell Lorfing and Stephen Rancourt are prosecuting the case.
The case was brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
St. Petersburg Cocaine Trafficker Sentenced to More Than 9 Years’ ImprisonmentRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Mario D. Heatly (39, St. Petersburg) to nine years and four months years in federal prison for possessing 500 grams or more of cocaine with the intent to distribute it.
Heatly had pleaded guilty on September 26, 2019.
According to court documents, law enforcement officers executed a search warrant at a storage unit that Heatly had been using and recovered almost a kilogram of cocaine, more than $16,000, a scale, and plastic bags. Subsequently, Heatly was arrested at a different storage unit. This unit also contained almost a kilogram of cocaine, scales, and plastic bags.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
This investigation is also the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Springfield Woman Sentenced to 15 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, woman was sentenced in federal court today for distributing methamphetamine and illegally possessing firearms.
Natalie K. Hampton, 35, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On June 24, 2019, Hampton pleaded guilty to participating in a conspiracy to distribute methamphetamine from Dec. 7, 2016, to June 19, 2018, and to possessing firearms in furtherance of a drug-trafficking crime.
When Hampton was arrested on several outstanding warrants in April 2019, she was wearing a wig and sitting on a handgun magazine. Officers searched the vehicle she was driving and found approximately 18 grams of methamphetamine, drug distribution materials, five cell phones, additional wigs, $50, and a safe containing two loaded semi-automatic pistols. Officers searched a hotel room associated with Hampton and found a handgun matching the magazine located in the vehicle, $3,706, and an ammunition box containing 84.7 grams of pure methamphetamine, cocaine, pills, mushrooms, suboxone strips, LSD, drug paraphernalia, and drug distribution materials.
On Dec. 7, 2016, Hampton was arrested in possession of a bag that contained 253.27 grams of methamphetamine, a distributive amount. She also possessed a stolen, loaded Ruger 9mm semi-automatic pistol and a Sig Sauer .380-caliber semi-automatic pistol. According to court documents, Hampton fled from the police prior to arrest, causing multiple collisions on Glenstone Avenue in Springfield. After crashing the vehicle she was driving, Hampton fled on foot before being apprehended.
On June 19, 2018, she was arrested in possession of seven bags that contained a total of 173.76 grams of methamphetamine, a distributive amount. On June 16, 2017, Hampton was arrested in possession of two bags that contained a total of 14.93 grams of methamphetamine, a distributive amount.
Hampton was on probation with the state of Missouri at the time she committed the instant federal offenses. She has continuously been on state probation for various misdemeanor and felony offenses for almost a decade; she has consistently received sentences of probation and community service hours in lieu of incarceration.
This case was prosecuted by Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Springfield, Mo., Police Department and the Drug Enforcement Administration.
Shaler Man Sentenced to More than 5 Years in Prison for Possessing Videos and Images of Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 63 months to be followed by 5 years of supervised release on his conviction of Possession of Material Depicting the Sexual Exploitation of Minors, United States Attorney Scott W. Brady announced today.
United States District Court Judge Cathy Bissoon imposed the sentence on Brian R. Reddinger, age 37, of Mt. Royal Boulevard, in Shaler Twp., PA.
According to information presented to the court, in the fall of 2016, Homeland Security Investigations (HSI) was conducting an online investigation into the internet sharing of child pornography. As part of the investigation, a special agent was able to connect to a device that was sharing material depicting the sexual exploitation of minors and download a suspected child porn file. The investigation led to Brian Reddinger. On November 1, 2016, agents executed a search warrant on Reddinger’s home. Reddinger admitted to searching, downloading, viewing and possessing child porn. He stated that his downloads are highly structured on his computer. He further stated that he downloaded files of individuals as young as 5 years of age. He stated that he searches for child porn once a week using child porn terms and that although he deletes a lot of files, he has "probably a gross number" of child porn. He asked the agents if they could delete or overlook the situation. Three of the items seized from Reddinger contained child porn. In total, there were 2,932 images and 60 videos of child porn on the devices.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the prosecution of Brian Reddinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Sedalia Man Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – A Sedalia, Missouri, man has been indicted by a federal grand jury for tax evasion.
Duane Dixon, 57, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Missouri, on Wednesday, Jan. 29. Dixon was arrested today when he self-surrendered to federal authorities.
The federal indictment charges Dixon with one count of tax evasion and one count of obstructing the administration of tax laws.
Dixon allegedly failed to file timely tax returns for the years 1996 through 2010, and did not make any voluntary payment toward his taxes for those years. Dixon is specifically charged in the indictment with evading taxes for the calendar years 2005 through 2010, for which the IRS assessed Dixon’s tax due and owing in the total amount of $639,333.
Dixon hired a return preparer to prepare tax returns for the 2005 to 2010 tax years, the indictment says, but provided the preparer with false and incomplete information. Knowing that these returns omitted significant income, Dixon submitted the returns to the IRS.
Dixon formed Dixon Builders, LLC, on Feb. 28, 2012. Dixon then opened bank accounts, bought and sold real estate, and purchased a boat and vehicles in the LLC’s name, according to the indictment. During the 2013 and 2014 tax years, for example, Dixon purchased nine pieces of real estate outright in the name of Dixon Builders LLC. Dixon allegedly concealed assets by transferring several properties from Dixon Builders, LLC, to his adult children.
Dixon allegedly told an IRS revenue officer, who was attempting to collect payments from him, that he had no personal or business bank accounts, that he had no business such as an LLC, that he was self-employed as a handyman and had no employees, and that he did not own any rental homes or have any rentals in a business or other person’s name. Dixon allegedly knew these statements were false at the time he made them.
According to the indictment, Dixon filed bankruptcies at times when the IRS was attempting to assess or collect his taxes, to forestall levies and seizures of his property. Dixon failed to provide information or make payments, however, resulting in dismissals of cases by the bankruptcy court.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Tom Larson. It was investigated by IRS-Criminal Investigation.
San Antonio Businessman Pleads Guilty to Money Laundering ConspiracyRead the Press Release
In San Antonio today, 41-year-old Karen Mgerian admitted to conspiring to launder millions of dollars of purported drug proceeds through a scheme that included the sale of luxury cars, announced U.S. Attorney John F. Bash, Internal Revenue Service—Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Steven S. Whipple, Houston Division.
Appearing before U.S. Magistrate Judge Elizabeth S. Chestney, Mgerian pleaded guilty to one count of conspiracy to commit money laundering. Mgerian, who has remained in federal custody since his arrest on January 31, 2019, faces up to 20 years in federal prison. Sentencing, before U.S. District Judge Xavier Rodriguez, has yet to be scheduled.
By pleading guilty, Mgerian admitted that beginning in 2017 he and a co-conspirator carried out a money laundering scheme for undercover agents using government directed funds. The defendants would, generally, provide the laundering services for a 10-20% fee of the total amount of proceeds to be laundered. Moreover, Mgerian sought to sell his luxury car dealership, MGM Auto, to agents, proposing that he would buy it back from the agents at a reduced price, i.e., less his money-laundering fee.
Mgerian has six indicted co-defendants. Jose Luis Magallon, Jr., age 29 of San Antonio, is charged with one count of conspiracy to commit money laundering and seven substantive counts of money laundering. Jose Antonio Rodriguez-Hernandez, age 39, and Luis Emilio Mireles-Morales, age 26, are both charged with one count of conspiracy to commit money laundering and two substantive counts of money laundering. Carlos Menendez-Stanziola, age 42, is charged with one count of conspiracy to commit money laundering and one substantive counts of money laundering.
Upon conviction of each charge, Mgerian’s co-defendants face up to 20 years in federal prison. Jury selection is scheduled for 9:30am on May 11, 2019, before Judge Rodriguez in San Antonio.
The IRS-CI, DEA and the Bexar County Sheriff’s Office are investigating this case. Assistant U.S. Attorneys Douglas Gardner, Gabriel Cohen and Daniel Castillo are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Magallon, Rodriguez-Hernandez, Mireles-Morales and Menendez-Stanziola are presumed innocent until proven guilty in a court of law.
Returned Fugitive Sentenced to 2½ Years in Federal Prison for Role in Medicare Fraud Scheme Featuring Bogus Physical Therapy ClaimsRead the Press Release
SANTA ANA, California – A former chiropractor who was on a federal “Most Wanted” list of fugitives was sentenced today to 30 months in federal prison for his role in a $15 million Medicare fraud scheme in which claims were submitted for physical therapy services that either were not reimbursable or were not provided.
David Y. Kim, 57, who previously lived in the Arlington Heights district of Los Angeles, was sentenced by United States District Judge David O. Carter. Judge Carter also ordered Kim to pay $690,519 in restitution to Medicare.
Kim pleaded guilty in September 2019 to one count of health care fraud and one count of receiving illegal kickbacks in exchange for Medicare referrals. In 2015, after meeting with federal law enforcement agents for an interview, Kim fled the United States for South Korea. The U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) later included Kim on its public list of Most Wanted Fugitives.
In February 2019, Kim was found to be residing in Vietnam and he was apprehended in Ho Chi Minh City pursuant to an Interpol Red Notice. FBI agents then brought Kim back to the United States, where he has remained in federal custody.
According to his plea agreement, between March 2012 and January 2014, Kim owned and operated New Hope Clinic, a Koreatown-based sole proprietorship where he caused fraudulent claims to be submitted to Medicare for physical therapy services that were not provided to patients. Kim received approximately 55 percent of the illegal Medicare proceeds. During the course of the scheme, Medicare paid $690,519 on the fraudulent claims from Kim’s clinic. Kim personally received illegal proceeds totaling $379,785.
Co-defendants Joseff Sales, 42, of Buena Park, Danniel Goyena, 42, also of Buena Park, the owners and operators of several companies involved in the scheme, paid New Hope for Kim’s referral of Medicare beneficiaries to their business. Sales, Goyena and Marlon Songco, 43, of Sylmar, hired licensed physical therapists to occasionally supervise Kim’s unlicensed staff, who performed services that were not reimbursable under Medicare guidelines.
While at New Hope, Medicare beneficiaries often received only a massage and acupuncture – services that Kim knew that Medicare did not cover – from individuals not licensed to provide physical therapy. Kim and his co-conspirators then caused fraudulent claims for physical therapy to be submitted to Medicare.
Sales, Goyena and Songco each pleaded guilty to federal criminal charges in this matter and were given prison sentences. Sales and Goyena were held jointly liable for $7,896,007 in restitution.
This matter was investigated by the FBI and the U.S. Department of Health and Human Services Office of Inspector General.
This case was prosecuted by Assistant United States Attorney Alexander F. Porter of the Major Frauds Section and Ali Moghaddas of the General Crimes Section.
Repeat Gun Offender Sentenced for Selling Guns IllegallyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kwesi Noble, 25, of Rochester, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 87 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that Noble illegally sold three firearms, two of which were loaded, to an individual in exchange for money in July 2019. The defendant was armed with a fourth gun, a loaded 9mm handgun, at the time of his arrest, which he threw over a fence as he fled from police.
Noble was previously convicted in March 2013 for Criminal Possession of a Weapon in the Second Degree, and as a result is legally prohibited from possessing firearms.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
# # # #
Rapid City Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Judge Jeffrey L. Viken, U.S. District Court.
Gary D. Bledsoe, age 36, was sentenced on January 31, 2020, to 46 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bledsoe was indicted by a federal grand jury in July 2018. The case related to Bledsoe, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a 9 mm semi-automatic pistol on July 2, 2018, at Rapid City. A Rapid City Police officer was dispatched to Bledsoe’s residence for a report of intentional damage to property. When the officer approached the residence, Bledsoe approached the officer with his right hand behind his back. Bledsoe ignored commands to show his hands and continued approaching the officer to within a distance of mere feet. Bledsoe swung his arm forward, brandishing the silver pistol and pointing it at the officer, who was able to successfully disarm Bledsoe and arrest him.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Heather Sazama.
Bledsoe was immediately turned over to the custody of the U.S. Marshals Service.
Providence Man Pleads Guilty in Bogus Check, Bank Fraud SchemeRead the Press Release
PROVIDENCE – A Providence man admitted on Monday to participating in a conspiracy to defraud area banks by depositing bogus checks and then, working with others, to quickly withdraw the funds before banks discovered that the checks were fraudulent.
Edmilson Rodrigues, 21, of Providence, admitted that he participated in a scheme to duplicate “real checks” provided to members of the conspiracy by insiders at local law firms, social services agencies, and local colleges.
According to information presented to the court, the bogus checks were deposited by Rodriques and others into actual bank accounts at bank branch offices in Rhode Island and Massachusetts. As part of the scheme, Rodriques and others quickly withdrew the funds, at times using stolen bank account and personal identifying information, before the bank determined that the deposited checks were bogus.
According to court documents, an investigation by Providence Police Detectives, the United States Secret Service, and the FBI determined that on at least eighteen occasions between May 2013 and February 2019, members of the conspiracy deposited bogus checks and withdrew funds, defrauding banks of well over $100,000. Rodrigues acknowledged that he joined the conspiracy in June 2017, depositing bogus checks and then either withdrawing the funds or having others do so at his direction.
Appearing on Monday before U.S. District Court Judge William E. Smith, Edmilson Rodrigues pleaded guilty to conspiracy to commit bank fraud and three counts of bank fraud, announced United States Attorney Aaron L. Weisman, Providence Police Chief Hugh T. Clements, Jr., Craig A. Marech, Resident Agent in Charge of the Providence Office of the United States Secret Service, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Rodrigues is scheduled to be sentenced on May 8, 2020.
The case is being prosecuted by Assistant United States Attorney William J. Ferland.
###
Prison Sentences for California-Based Drug Trafficking Ring That Shipped Methamphetamine to Northeastern WisconsinRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that five individuals received sentences after convictions for drug trafficking in the Fox Valley Region of Northeastern Wisconsin. The sentences, imposed by Senior United States District Judge William C. Griesbach, were the result of guilty pleas by the five individuals between August 30, 2019, and October 18, 2019:
Defendant
Charge of Conviction
Sentencing date
Months of Prison
Months of Supervised Release
Tou Lee Xiong, (Age: 45), formerly of Represa, CA
Conspiracy to Distribute Methamphetamine
11/25/2019
240
60
Blia Lor, (Age: 38) formerly of Appleton, WI
Conspiracy to Distribute Methamphetamine
11/26/2019
115
60
Meng Xiong, (Age: 43) formerly of Merced, CA
Possession with Intent to Deliver Methamphetamine
10/10/2019
120
60
Cher Yang, (Age: 31) formerly of Milwaukee, WI
Conspiracy to Distribute Methamphetamine
12/5/2019
60
120
Gwen Biersteker, (Age: 41) formerly of Seymour, WI
Conspiracy to Distribute Methamphetamine
3/3/2020
60
60
The investigation revealed that between October 2016 and November 2018, the defendants conspired amongst themselves and with others, and distributed a large quantity of methamphetamine in the Fox Valley region of Northeastern Wisconsin. The defendants and others arranged for shipments of methamphetamine to arrive by car couriers and postal shipments from northern California to Northeastern Wisconsin.
Tou Lee Xiong, who was a prisoner in the California prison system, used contraband phones to orchestrate shipments from sources in California. Blia Lor and Gwen Biersteker, along with others indicted and sentenced in previous cases, served as points of contact for local distribution in the Fox Valley and Green Bay areas. Yang provided funding for the endeavor, and transported methamphetamine from Milwaukee to the Appleton area. Xiong traveled from California in order to assume responsibility for local distribution networks and was caught by law enforcement with multiple pounds of methamphetamine and two handguns.
Evidence collected throughout the case suggests the amount of methamphetamine attributable to the group for the period it was active exceeded 100 pounds.
Senior Judge Griesbach pointed out the serious natures of the offenses, and noted the damage to the community caused by the defendants. The sale and distribution of a “poison” required stiff sentences as a deterrent to those who would consider engaging in this sort of activity. Senior Judge Griesbach also pointed out the defendants’ direct and indirect support of violent international drug cartels who perpetrated horrific violence against innocent citizens throughout the United States and elsewhere.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance from the United States Postal Inspection Service, Brown County Drug Task Force, Wisconsin Department of Justice – Division of Criminal Investigation, and Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Pleasant Hills Woman Charged with Theft of Social Security FundsRead the Press Release
PITTSBURGH, PA – A Pleasant Hills, Pennsylvania resident has been indicted by a federal grand jury in Pittsburgh on a charge relating to theft of Social Security funds, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Kristie Marraccini, age 40, as the sole defendant.
According to the Indictment, from in and around August 2016, to in and around December 2017, Marraccini knowingly received and converted Supplemental Security Income benefits to which she knew she was not entitled, in an amount exceeding $1,000.00.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Vashon Dewight Cotton, 29, as the sole defendant.
According to the Indictment, on or about November 6, 2019, Cotton, a convicted felon, was found to be in possession of a firearm. Federal law prohibits a convicted felon from possessing a firearm.
The law provides for a sentence of not more than 10 years in prison, a fine of $250,000.00 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. Indicate relevant bond/detention information if known
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Minor.
Charles Richards, Jr., age 49, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 60 years in a federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Richards sexually abusing a female less than 12 years old at Pine Ridge, between June 15, 2019, and July 2, 2019.
The charge is merely an accusation and Richards is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Richards was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 7, 2020.
Pain Clinic Owner Pleads Guilty to Tax Evasion and Money LaunderingRead the Press Release
Tampa, Florida – Tom Wynne has pleaded guilty to one count of conspiracy to commit tax evasion, one count of tax evasion, and seven counts of money laundering. He faces a maximum penalty of 5 years in federal prison for each of the tax-related counts and up to 10 years in federal prison for each money laundering count.
According to the plea agreement, Wynne owned and operated Pain and Wellness Clinic (“PWC”), a pain management clinic in Pinellas County. He hired medical doctors to prescribe for patients large quantities of Schedule II controlled substances, like oxycodone and hydromorphone, outside the usual course of professional practice. Wynne used the illegal proceeds generated from PWC to purchase real property in the Tampa Bay area.
For each tax year, beginning in 2014 and continuing through tax year 2017, Wynne underreported PWC’s gross receipts on his tax filings. He also conspired and agreed with PWC physicians to defraud the IRS by creating and preparing, among other false and fraudulent tax-related documents, false and fraudulent IRS Forms 1099 to pay the clinic’s two doctors.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.
Owner of DC-Area Tax Preparation Business Pleads Guilty to FraudRead the Press Release
A tax return preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, between 2013 and 2016, Renita Jenifer, 52, of District Heights, Maryland, operated RAJen Business Tax Service (RAJen), a return preparation business in D.C. During those years, Jenifer prepared false tax returns for clients that included fraudulent and inflated business expenses and itemized deductions, such as charitable contributions and unreimbursed employee expenses. By including these false items, Jenifer’s secured refunds for her clients from the Internal Revenue Service (IRS) to which they were not entitled.
In 2016, after IRS-Criminal Investigation executed a search warrant at RAJen’s office in D.C. and revoked Jenifer’s Electronic Filing Identification Number (EFIN), Jenifer formed DS Professional Tax Service LLC (DS Pro), a new tax preparation business in Maryland. As she had done at RAJen, Jenifer prepared false tax returns for clients of DS Pro. In 2018, Jenifer moved this new business to D.C. and continued to prepare false returns for clients. To conceal her fraud, Jenifer used the name of anothert individual to obtain an EFIN for DS Pro, and she listed that individual’s name on tax returns she prepared, instead of her own.
In 2013 and 2014, Jenifer also filed her false tax returns for herself, omitting income from her business. In 2017 and 2018, Jenifer did not file personal tax returns at all, despite earning income from DSPro. In total, Jenifer caused a tax loss to the United States of $373,090.
U.S. District Judge Kentaji Brown Jackson set sentencing for May 12, 2020. Jenifer faces a prison term of up to three years, as well as monetary penalties. As part of her plea agreement, Jenifer has agreed to pay $357,819 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman thanked agents of IRS- Criminal Investigation and the D.C. Office of Tax and Revenue, who investigated this case, and Trial Attorneys Melissa Siskind and William Guappone of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
On President Trump’s State of the Union AddressRead the Press Release
Attorney General William P. Barr has released the following statement:
In his State of the Union Address, President Trump underscored that the rule of law is central to American freedom and prosperity. This principle is what drives Department of Justice initiatives like Operation Relentless Pursuit and Project Guardian, which are helping to reduce violent crime across our country. We have aggressively fought the opioid epidemic and drug-overdose deaths declined last year for the first time in three decades. We have implemented the President’s landmark criminal-justice reform initiative, the First Step Act, through which thousands of Americans are being given a chance at redemption. We have continued to defend religious liberty for all Americans. We will continue to fight the unlawful practice of sanctuary jurisdictions, which put Americans at risk while aiding criminal aliens who are here illegally.
The men and women of law enforcement have no greater supporter than President Trump, and America is a safer place under his leadership.
Ocala Man Sentenced to Twenty Years for Conspiring to Distribute Cocaine, Heroin, and FentanylRead the Press Release
Ocala, Florida – U.S. Senior District Judge James D. Whittemore today sentenced Jeremy Jermaine Willis (37, Ocala) to 20 years in federal prison for conspiring to distribute cocaine, heroin, and fentanyl. The court also sentenced co-defendants Gary Eugene Hayes (38, Ocala) and Darren Michael Beatty (30, Ocala) to 15 years in federal prison each, for their involvement in the same conspiracy. All three men had pleaded guilty in 2019.
According to court documents, between January 2012 and May 2019, Willis, Hayes, and Beatty were members of a conspiracy that distributed hundreds of kilograms of cocaine and heroin through a network of stash houses in Marion County. Large quantities of the heroin were also laced with fentanyl.
This case was investigated by the Drug Enforcement Administration, the Ocala Police Department, the Unified Drug Enforcement Strike Team (UDEST), the Marion County Sheriff’s Office, and the Internal Revenue Service – Criminal Investigation Division. It was prosecuted by Assistant United States Attorney William S. Hamilton.
New Castle Man Facing Federal Gun and Drug ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Samuel A. Cheeks, 31, as the sole defendant.
According to the Superseding Indictment, on or about July 23, 2017, and September 27, 2017, Cheeks unlawfully possessed a firearm and ammunition after having previously been convicted of crimes punishable by imprisonment for a term exceeding one year. The Superseding Indictment also alleges that, on September 27, 2017, Cheeks unlawfully possessed a mixture and substance containing a detectable amount of cocaine.
The law provides for a maximum sentence of 10 years in prison, a fine of not more than $250,000, 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.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ellwood City Police Department, and the New Castle Police Department conducted the investigation leading to the Indictment in this case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime..
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
NDTX Round-Up February 4Read the Press Release
SENTENCING – DONNA WOODS
On January 30, Donna Woods was sentenced to 7 years and 3 months in federal custody and to paying $337,951.06 in restitution to the Federal Communications Commission for conspiracy to commit mail and wire fraud, and wire fraud. Woods had approved the granting of a federal telecommunications E-rate contract to a company called ADI Engineering which was owned by Woods’ coconspirator. Woods received $50,000 in exchange for her approval of ADI Engineering, a company known to have a shoddy record. She also falsely reported that ADI had correctly completed their job. This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office and the Federal Communications Commission Office of Inspector General and prosecuted by AUSA Russ Fusco and AUSA Nick Bunch. Click here to read more about this case.
GUILTY PLEA – ARTURO CALDERON
On January 28, Arturo Calderon, 26, pled guilty to making a false statement during the purchase of a firearm. Between February 2018 and February 2019, Calderon purchased numerous firearms from licensed vendors. During the purchase of these firearms, Calderon responded falsely to the question on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form that asks if the buyer is “the actual transferee/buyer of the firearms(s) listed on this form.” Calderon purchased at least 16 firearms that he then gave to an individual who covered the cost of the firearms, and then additionally compensated Calderon. Calderon faces up to 10 years in federal custody for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is prosecuted by AUSA Brian McKay.
SENTENCING – RAFAEL RUBI
On January 29, Rafael Rubi, 24, was sentenced to 17 years in federal custody for possession with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Rubi and his coconspirator were stopped for a traffic violation, and officers observed a firearm in plain view. Rubi is a convicted felon and prohibited from possessing a firearm. In the preceding week, Rubi had been involved in multiple drive-by shootings with the intention of extorting payment for damages in a car accident. A search warrant was executed at Rubi’s residence and officers recovered heroin, methamphetamine, cocaine, alprazolam, marijuana, a drug ledger, and two pistols. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA Rebekah Ricketts. Please click here to read more about this case.
SENTENCING – CIERA WASHINGTON
On January 27, Ciera Washington, 23, was sentenced to 5 years in federal custody for robbery. Washington waited in a vehicle as an escape driver, while her coconspirators stole 68 packs of cigarettes and $343 from a Valero gas station after striking the store clerk on the head with a firearm. The coconspirators were pursued by the police, and Washington led them on a high-speed chase, until she hit a curb. The coconspirators fled and escaped, however, Washington was apprehended as she was several months pregnant. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mesquite Police Department, and the Dallas Police Department and is prosecuted by AUSA Cara Pierce.
SENTENCING – JESSE BELL
On January 30, Jesse Bell, 26, was sentenced to 17 years in federal custody for felon in possession of a firearm, interference with commerce by robbery, and brandishing a firearm during a crime of violence. He and his coconspirator robbed a Valero gas station at gun point and struck the store clerk on the head with the pistol. He and his coconspirators then led police on a high-speed chase that eventually ended in Bell’s capture. It was revealed during trial that Bell had also sold firearms to an undercover agent, despite being a convicted felon. This is a Project Guardian case that was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Mesquite Police Department. The case was prosecuted by AUSA Cara Pierce. Click here to read more about this case.
GUILTY PLEA – ELLIS JAY JOHNSON
On January 30, Ellis Jay Johnson, 42, pled guilty to possession with the intent to distribute methamphetamine. A cooperating individual working with the Hunt County Sheriff’s Department went to Johnson’s home and purchased methamphetamine. The individual was wearing a recording device, and the officers used that recording to obtain a warrant. When the warrant was executed, officers found three firearms and methamphetamine. He faces up to 20 years in federal custody for his crimes. This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and the Hunt County Sheriff’s Office and is prosecuted by AUSA Suzanna Etessam.
SENTENCING – JUAN CARLOS FARIAS-LOYA
On January 29, Juan Carlos Farias-Loya, 34, was sentenced to 8 years in federal custody for conspiracy to possess with the intent to distribute methamphetamine. Through a confidential source, the Drug Enforcement Administration learned that Farias-Loya met the individual at both a Marshalls and a residence to sell methamphetamine. Later, Farias-Loya and his coconspirators used a money remitter business to wire proceeds to Mexico. Federal agents executed a search warrant at the residence and found a methamphetamine recrystallization laboratory, 6 kilograms of methamphetamine, receipts for money sent to Mexico, and $180,000 in proceeds. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Suzanna Etessam.