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6 January 2020
Hardy County man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Larry Allen Lyons, of Moorefield, West Virginia, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Lyons, age 55, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Lyons admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral, Grant, and Randolph Counties.Lyons faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department 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.
U.S. Magistrate Judge Robert W. Trumble presided.
Greenbrier County Man Pleads Guilty to Gun CrimeRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man pled guilty to a gun crime, announced United States Attorney Mike Stuart. Jonathan Felts, 30, of Smoot, pled guilty to being a felon in possession of a firearm.
Felts admitted that on August 16, 2018, he was a passenger in a motor vehicle driving on Route 20 in Summers County, West Virginia. The vehicle was stopped because the registration plates were not visible. The deputy sheriff could smell burnt marijuana emanating from the vehicle. The deputy had each occupant exit the vehicle. In Felts’ backpack, deputies located a Springfield Armory XDS, .40 caliber six round magazine, numerous empty baggies used in the distribution of controlled substances, a blue digital scale, and approximately three grams of a white crystal substance.
Upon further search of the vehicle, deputies located a Glock, model 27, .40 caliber pistol under the passenger seat and a Springfield Armory XDS, .40 caliber pistol stuffed underneath the cushion of the back seat.
The Springfield Armory XDS, .40 caliber six round magazine that was located in a lock box contained in Felts’ red back pack fit the Springfield Armory XDS, .40 caliber pistol.
Felts was convicted on September 4, 2014, in the Circuit Court of Greenbrier County of Delivery of a Controlled Substance - Oxymorphone. He was convicted on December 22, 2015, in the Circuit Court of Greenbrier County of Burglary.
Felts faces up to ten years in prison when sentenced on April 20, 2020.
The Summers County Sheriff’s Department, the Summers County Prosecutor’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
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.
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Georgia man and five Mexican nationals plead guilty to methamphetamine trafficking conspiracyRead the Press Release
ATLANTA – The last of six defendants who operated a clandestine methamphetamine laboratory in north Fulton County has pleaded guilty to conspiracy to possess methamphetamine with intent to distribute, concluding a months-long investigation that led to the seizure of more than a quarter-ton of methamphetamine from several residences in the Atlanta suburbs.
“Mexican cartels push methamphetamine and other drugs in our district without any regard for the lives that they ruin along the way,” said U.S. Attorney Byung J. “BJay” Pak. “In close coordination with our federal, state, and local partners, we are committed to stopping the flow of drugs across the border, and their distribution in our community. The discovery and dismantling of a methamphetamine lab of this magnitude is a great win in that battle.”
Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated, “Drug Trafficking knows no boundaries and is driven by greed and power. These guilty pleas should serve as a reminder to drug traffickers that DEA and its law enforcement partners will expend the necessary resources to dismantle, disrupt and destroy those who distribute poison throughout our communities. Many thanks to the collaboration of law enforcement agencies and the U.S. Attorney’s Office who made this investigation a success.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: a Mexico-based drug-trafficking and money-laundering organization led locally by Fredrico Pacheco-Romero and Carlos Martinez utilized homes in Milton and Ellenwood, Georgia to convert large quantities of liquid methamphetamine into crystal methamphetamine. Agents learned in early February 2019 that a shipment of liquid methamphetamine was destined for the Atlanta area.
On February 9, 2019, DEA agents obtained warrants to search a half-dozen properties utilized by the organization and the defendants. Those searches revealed an active methamphetamine conversion laboratory, approximately 400 pounds of liquid methamphetamine, approximately 125 pounds of crystalized or partially crystalized methamphetamine, hundreds of thousands of dollars in cash, and multiple cell phones, drug ledgers, and firearms.
Each of the six defendants pleaded guilty to participating in a drug-trafficking conspiracy. The defendants will appear before U.S. District Judge Leigh Martin May for sentencing as follows:
- Sentencing for Victor Manuel Sanchez, 21, of Mexico is scheduled for January 27, 2020, at 2:00 p.m.
- Sentencing for Jorge Mendoza-Perez, 50, of Mexico is scheduled for February 3, 2020, at 2:00 p.m.
- Sentencing for Fredrico Pacheco-Romero, 27, of Mexico is scheduled for February 24, 2020, at 10:00 a.m.
- Sentencing for Carlos Martinez, 24, of Morrow, Georgia is scheduled for February 25, 2020, at 10:00 a.m.
- Sentencing for Eduardo Lopez, 26, of Mexico is scheduled for March 2, 2020, at 10:00 a.m.
- Sentencing for Santana Cardenas, 41, of Mexico is scheduled for March 25, 2020, at 9:30 a.m.
This case is being investigated by the Drug Enforcement Administration, with assistance from the Gwinnett County District Attorney’s Office, the Cartersville Police Department, the Forsyth County Sheriff’s Office, and SWAT teams from the Clayton County Sheriff’s Office, the Henry County Police Department, and the DeKalb County Police Department.
Assistant U.S. Attorneys Theodore S. Hertzberg and Tyler A. Mann are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- Sentencing for Victor Manuel Sanchez, 21, of Mexico is scheduled for January 27, 2020, at 2:00 p.m.
Georgia Woman Sentenced to almost 20 Years in Prison for Aiding Armed Robberies during Violent RampageRead the Press Release
Jackson, Miss.– Sharae Threadgill, 21, of Georgia, was sentenced today by U.S. District Judge Daniel P. Jordan III to 238 months in federal prison, followed by five years of supervised release, for aiding and abetting two business robberies and the use of firearms to facilitate the robberies, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation. Threadgill was also ordered to pay a $1500 fine.
On March 25, 2019, Threadgill aided another person in robberies of a Jimmy John’s restaurant in Meridian and of a McDonald’s in Brandon. Threadgill drove the vehicle used during both robberies and provided a firearm used in both robberies. She was subsequently arrested by Warren County Sheriff deputies in Vicksburg.
On April 16, 2019, Threadgill was charged federally with aiding and abetting two business robberies and the use of firearms to facilitate the robberies. She pleaded guilty before Judge Jordan on October 4, 2019.
The Federal Bureau of Investigation and the Warren County Sheriff’s Office investigated the case. It was prosecuted by Assistant United States Attorney Lynn Murray.
Former RI Attorney Pleads Guilty to Fraud, Pension Theft ChargesRead the Press Release
PROVIDENCE, RI – A former Providence attorney pleaded guilty in federal court to charges that he fraudulently collected more than a quarter of a million dollars in pension funds in the name of a former client for nearly twelve years after the man’s death.
Oleg Nikolyszyn, 65, admitted that from December 2003 through September 2015, he collected monthly pension payments totaling $234,586 in the name of a former City of Providence employee and a member of the Laborers’ International Union of North America (LIUNA).
According to information presented to the Court, in May 2000, the former City of Providence employee hired Nikolyszyn as his attorney and executed a power of attorney that authorized Nikolyszyn to take certain acts on his behalf. Those actions included receiving pension benefits owed him and signing and depositing checks payable to him.
Appearing on Friday before U.S. District Court Judge William E. Smith, Nikolyszyn admitted that he continued to receive monthly pension payments in his client’s name for nearly twelve years following the client’s death on November 12, 2003. Nikolyszyn admitted to depositing the funds into a bank account in the name of both himself and his former client, and then converting the funds to his and his family’s personal use by transferring them into bank accounts he shared with his family.
Nikolyszyn admitting to collecting $173,597 in payments from the City of Providence Employee’s Retirement System and $60,989 from the LIUNA Pension Fund in the name of his former client.
Nikolyszyn’s guilty plea to two counts of mail fraud and one count of theft from an employee benefit pension fund is announced by United States Attorney Aaron L. Weisman; Michael C. Mikulka, Special Agent in Charge of the New York Region for the U.S. Department of Labor, Office of Investigations - Labor Racketeering and Fraud; Carol S. Hamilton, Acting Regional Director for the U.S. Department of Labor, Employee Benefits Security Administration; Superintendent of the Rhode Island State Police Colonel James M. Manni; and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Nikolyszyn is scheduled to be sentenced on April 24, 2020.
Mail fraud is punishable by statutory penalties of up to twenty years imprisonment; a fine of $250,000 or not more than twice the gross gain or twice the gross loss resulting from the offense; and a term of supervised release of three years. Theft from an employee benefit pension fund is punishable by up to five years imprisonment; a fine of $250,000 or not more than twice the gross gain or twice the gross loss resulting from the offense; and a term of supervised release of three years.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney Aaron L. Weisman acknowledges and thanks the Rhode Island Supreme Court Office of Disciplinary Counsel and the Rhode Island Department of the Attorney General for their assistance in the investigation of this matter.
Oleg Nikolyszyn was suspended from the practice of law in Rhode Island by the Rhode Island Supreme Court on December 1, 2016, following an investigation by the Office of Disciplinary Counsel.
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Former Palmdale Physician Sentenced to 2 Years in Federal Prison for Defrauding Medicare and Illegally Prescribing Opioid DrugsRead the Press Release
LOS ANGELES – A former doctor was sentenced today to 24 months in federal prison for engaging in a multi-faceted Medicare fraud scheme, and also for illegal prescribing thousands of opioid painkillers and muscle relaxants.
Kain Kumar, 56, of Encino, was sentenced by United States District Judge Philip S. Gutierrez. Kumar was also ordered to pay financial penalties totaling more than $1 million, consisting of $509,365 in restitution, $494,900 in asset forfeiture, and a $72,000 fine.
Kumar pleaded guilty in April 2019 to one count of health care fraud and one count of distribution of hydrocodone. He practiced internal medicine, maintained medical offices in Palmdale, Rosamond, and Ridgecrest and surrendered his medical license last year.
From February 2011 until May 2016, Kumar defrauded the Medicare health care benefit program by prescribing unnecessary home health services in exchange for the payment of illegal kickbacks to him from a La Verne-based home health agency called Star Home Health Resources, Inc. According to the indictment in this case, Medicare paid $4,398,599 to Star based on the illegal kickback-tainted referrals from Kumar.
In furtherance of this scheme, Kumar caused false and fraudulent claims for reimbursement to be submitted to Medicare for Medicare beneficiaries that he did not personally examine or for patients he only briefly examined. Kumar also prescribed drugs that were not medically necessary and which were paid for by the Medicare Part D program.
Additionally, Kumar admitted in his plea agreement that between February 2013 and January 2016, Kumar – without a legitimate medical purpose – prescribed 23,826 pills of the opioid drug hydrocodone (commonly sold under the brand name Vicodin or Norco) and 38,459 pills of the muscle-relaxer carisoprodol (sold under the brand name Soma). Kumar directed his office staff – who were not medical professionals – to issue prescriptions for these drugs to patients even though Kumar had not examined the patients. Kumar directed his office staff to sign his name on prescriptions for opioid drugs and also provided his staff with pre-signed prescriptions. In one instance, although Kumar examined a patient only once on the patient’s very first visit, and thereafter he caused prescriptions to be issued to the patient for hydrocodone and carisoprodol on a monthly basis for approximately a year and a half even though Kumar did not actually see the patient for any subsequent physician examination.
Kumar is the fifth and final defendant sentenced in this case. Elaine C. Lat, 50, of Fontana, was Star’s chief operating officer and the case’s lead defendant. She is serving a 30-month prison sentence in this matter after pleading guilty in May 2017 to one count of conspiracy and four counts of paying illegal kickbacks. Three other defendants, including Lat’s parents, each pleaded guilty to criminal charges and were sentenced in this matter.
This case was investigated by the FBI, the U.S. Department of Health and Human Services, Office of Inspector General, and the Drug Enforcement Administration.
This matter was prosecuted by Assistant United States Attorneys Alexander F. Porter of the Major Frauds Section, Jonathan S. Galatzan of the Asset Forfeiture Section, and Trial Attorney Claire Yan of the Fraud Section in the Criminal Division of the U.S. Department of Justice.
Former Member of U.S. Navy Sentenced to 18 Months in Prison for Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A former member of the U.S. Navy was sentenced today to 18 months in prison for her role in an interstate gun trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Tesora Amanda Cortes Trejorojas, 24, of Norfolk, Virginia, previously pleaded guilty to an indictment charging her with one count of conspiring with others to transport and receive in New Jersey firearms purchased and obtained outside the state. U.S. District Judge Kevin McNulty imposed the sentence today in Newark federal court
According to documents filed in this case and statements made in court:
In November 2017, Trejorojas engaged in text messages with Azia Sinclair in which Trejorojas agreed to purchase firearms for Sinclair and Sinclair’s boyfriend, Shyheim Tyson, a/k/a “Shy,” who were both residents of New Jersey.
On Nov. 11, 2017, Sinclair and Tyson drove from New Jersey to Trejorojas’ residence in Norfolk. All three went to a gun store in Norfolk, where Trejorojas purchased five semiautomatic handguns, as well as 200 rounds of ammunition, with cash provided by Sinclair and Tyson. The next day, Sinclair and Tyson drove back to New Jersey with the five handguns and ammunition.
Approximately five hours after Sinclair and Tyson arrived back in New Jersey, an individual was arrested in Orange, New Jersey, after police officers responded to the sound of gunshots. During the arrest, police officers recovered one of the five handguns that Sinclair and Tyson had transported from Virginia to New Jersey.
In March 2018, law enforcement executed a search warrant on Sinclair’s residence in Newark, and found another of the guns that Sinclair and Tyson had transported from Virginia to New Jersey in November 2017.
Tyson and Sinclair both pleaded guilty to conspiracy to transport and receive in New Jersey firearms purchased and obtained outside the State of New Jersey. Tyson was sentenced on Jan. 7, 2019, to 37 months in prison. Sinclair was sentenced on Dec. 11, 2019, to 19 months in prison.
Judge McNulty also sentenced Trejorojas to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, and Special Agent in Charge Thomas L. Chittum III, Washington Field Division, with the investigation leading to today’s sentencing. He also thanked the N.J. State Police; the Newark Department of Public Safety; and Naval Criminal Investigative Service (NCIS) in Norfolk for their assistance.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
Defense counsel: Trejorojas: Jonathan F. Marshall Esq., Red Bank, New Jersey
Sinclair: Linda Foster Esq., Assistant Federal Public Defender, Newark
Tyson: Vincent J. LaPaglia Esq., Hoboken, New JerseyFormer Los Angeles-Area Physician Sentenced to Two Years in Federal Prison for Defrauding Medicare and Illegally Prescribing Opioid DrugsRead the Press Release
A former Los Angeles-area physician was sentenced today to 24 months in prison and three years of supervised release for engaging in a multi-faceted Medicare fraud scheme and for illegally prescribing thousands of opioid painkillers and muscle relaxers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office and Special Agent in Charge William D. Bodner of DEA’s Los Angeles Field Division made the announcement.
Kain Kumar, 56, of Palmdale, California, was sentenced by U.S. District Judge Philip Gutierrez of the Central District of California, who also ordered Kumar to pay $509,365 in restitution, $494,900 in asset forfeiture, and a $72,000 fine. Kumar pleaded guilty on April 4, 2019, to one count of health care fraud and one count of distribution of hydrocodone.
As part of his guilty plea, Kumar admitted that from February 2011 until May 2016, he defrauded the Medicare health care benefit program by prescribing unnecessary home health services in exchange for the payment of illegal kickbacks to him from a La Verne, California-based home health agency called Star Home Health Resources Inc. Kumar further admitted that in furtherance of this scheme, he submitted false and fraudulent claims for reimbursement to Medicare for Medicare beneficiaries that he did not personally examine or for patients he only briefly examined. Kumar also admittedly prescribed drugs that were not medically necessary and which were paid for by the Medicare Part D program.
Kumar admitted that between February 2013 and January 2016, he prescribed 23,826 pills of the opioid drug hydrocodone (commonly sold under the brand names Vicodin or Norco) and 38,459 pills of the muscle-relaxer carisoprodol (sold under the brand name Soma) without a legitimate medical purpose. Kumar directed his office staff – who were not medical professionals – to issue prescriptions for these drugs to patients even though Kumar had not examined the patients, he admitted. Kumar instructed his office staff to issue prescriptions for opioid drugs by instructing his staff to sign Kumar’s name on prescriptions and by providing his staff with pre-signed prescriptions. In one instance, Kumar examined a patient only on the very first visit and thereafter on a monthly basis, for approximately a year-and-a-half, he caused prescriptions to be issued to the patient for hydrocodone and carisoprodol, even though Kumar did not actually see the patient for a subsequent physician examination.
Kumar was charged along with Errol Lat, 75, Thelma Lat, 74, Elaine Lat, 49, all of Rancho Cucamonga, California, and Corinne Chavez, 36, of Rosamond, California, in a second superseding indictment returned on July 2017. All co-defendants have pleaded guilty and have been sentenced.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Claire Yan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander F. Porter of the Central District of California prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former HUD employee sentenced to 66 months in prison for fraud and identity theftRead the Press Release
HONOLULU, Hawaii –Chun Mei Tong, 43, of Honolulu, was sentenced today in federal court by Chief United States District Judge J. Michael Seabright to 66 months of imprisonment, approximately $207,000 in a forfeiture money judgment, $207,000 in restitution, and 3 years of supervised release for wire fraud and aggravated identity theft. She was convicted of five counts of wire fraud and three counts of aggravated identity theft after a jury trial on August 26 - September 5, 2019.
As a former employee of the U.S. Department of Housing and Urban Development (“HUD”), Tong was prohibited from participating in the Housing Choice Voucher Program (also known as the “Section 8 Program”), and from engaging in the business of real estate. The evidence presented at trial demonstrated that from 2014 to 2019, Tong used an alias to act as property manager and landlord for five properties she rented to Section 8 voucher holders. Tong covered up her ownership of two of the properties and forged the signatures of the owners of three of the properties to ensure that all of the HUD funds paid to the landlord went directly to her company’s bank account. She received more than $207,000 from HUD as part of her scheme.
In sentencing Tong, Judge Seabright stated that he was “troubled” by the “ease with which Ms. Tong lies,” particularly when she took the witness stand at trial and her “brazen conduct and brazen lies” “throughout the entire process.” The court explained that Tong “went to great lengths to hide her involvement” in the HUD scheme by forging documents and using aliases, among other efforts.
Kenji M. Price, United States Attorney, said, “My office will continue to combat fraud in federally funded programs from defendants like Tong, who use their position as government employees to defraud the government and vulnerable victims in our communities, and, in doing so, illicitly line their pockets with taxpayer funds. Tong, and defendants like her, think they will find prosperity by taking advantage of their positions. Tong, and the like, are mistaken. What they will find is our office holding them accountable for their greed.”
“One of the primary goals of the Department of Housing and Urban Development, Office of Inspector General is to reduce fraud and abuse in HUD’s rental assistance programs. This responsibility is magnified when a HUD employee uses her position to perpetrate such fraud. The public should have confidence that its servants oversee federal programs with the utmost integrity; the significance of this sentencing reflects the importance of ensuring that pubic trust,” stated Acting Special Agent in Charge Michael Gibson.
The case was investigated by HUD’s Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Rebecca A. Perlmutter and Morgan Early.
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud in Relation to $287 Million SchemeRead the Press Release
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud In Relation to $287 Million Scheme
A former consultant who also served as the Chief Operating Officer of 1 Global Capital, LLC has been charged in connection with a $287 million securities fraud scheme that impacted more than 3,400 investors in 42 different states, in relation to a commercial payday loan business that operated from early 2014 through July 2018.
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office made the announcement.
Steven Allen Schwartz, 76, of Delray Beach, Florida, was charged today by information with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 20-CR-60003. The defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money iMCAs. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions. In many cases, according to court documents, the commissions were not fully disclosed to investors.
Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials. Schwartz also served as the designated trustee for a purported family trust and an art trust for which Individual #1, the de facto owner of 1 Global, served as the grantor. On or about June 5, 2014, 100% of the issued and outstanding shares of 1 Global were transferred under the umbrella of Individual #1’s purported family trust, and designated as the trust property.
In order to attract investments, Individual #1, Schwartz, Attorney #1, co-conspirator Alan G. Heide, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. In reality, according to allegations the information, the 1 Global business lost money, and ultimately used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1. 1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to allegations in the information, co-conspirators at 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly statements mailed to investors that falsely showed profitable investments. The statements gave the false impression that the finances had been independently verified by an outside audit firm. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising new investor funds before its eventual collapse in July 2018.
According to allegations in the information, Schwartz was also aware that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law. Despite having received this advice in or around June and July 2016, Schwartz, Individual #1, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described. Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from co-conspirator Jan Douglas Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities.
1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, according to documents from related cases, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
A criminal information is a charging instrument containing allegations. All defendants are presumed innocent unless proven guilty in a court of law.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Schwartz. In related cases, the SEC previously filed civil fraud actions, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); and SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.).
Two co-conspirators have pled guilty to charges arising from their roles in the 1 Global fraud, in related criminal cases pending in the Southern District of Florida: United States v. Alan G. Heide, 19-60231-CR-RKA, and United States v. Jan Douglas Atlas, 19-60258-CR-RKA.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and the IRS-CI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.
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.
Former Connecticut Resident Sentenced to Prison for Tax Evasion SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THERESA FOREMAN, 58, of St. Cloud, Florida, formerly of Madison, Connecticut, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for a wide-ranging tax evasion scheme.
According to court documents and statements made in court, Foreman operated Equinox Home Care, LLC, a home healthcare staffing agency based in Stratford, Connecticut. Beginning as early as 2012, Foreman took money out of the company by depositing or cashing, and causing to be deposited or cashed, checks written to individuals who did not actually work for Equinox Home Care. Between May 2012 and December 2013, approximately $413,000 in payroll checks to these “ghost employees” were deposited into accounts controlled by Foreman’s brother. During the same period, approximately $465,000 was withdrawn from the accounts in cash, cash back from deposits, or checks payable to Foreman. Foreman also had employees cash company checks and return the funds to her, and she cashed or caused to be cashed mileage reimbursement checks made out to other individuals and used the funds for her own benefit.
The investigation also revealed that between August 2014 and November 2015, Foreman made or caused to be made 101 cash deposits totaling $580,580 to a bank account in a family member’s name.
Foreman failed to report the amounts that she received through this scheme on her federal tax returns for 2012, 2013, and 2014. Foreman also owed tax for the 2010 and 2011 tax years and, on a statement submitted to the IRS in March 2013, provided false information about her income and assets. On the statement, Foreman falsely indicated that she had no monthly income. She also failed to declare ownership of a property in Saint Cloud, Florida, which she had purchased jointly with her brother in March 2012; failed to declare a bank account held in the name of her adult son, but which she controlled and used; and failed to declare recent purchases of a 2012 Chevrolet Corvette and a 2013 Cadillac Escalade.
Foreman’s conduct for the 2010 through 2014 tax years resulted in a loss of $641,941.46 to the Internal Revenue Service. Judge Bolden ordered Foreman to pay all back taxes, plus penalties and interest.
On March 4, 2019, Foreman pleaded guilty to one count of tax evasion.
Foreman, who is released on a $10,000 bond, is required to report to prison on February 28, 2020.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Peter S. Jongbloed and Jennifer R. Laraia.
Former Attica High School Assistant Track Coach Sentenced to 24 Years' in Federal PrisonRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Jeremy Kelley, 41, of Attica, Indiana, was sentenced in federal court, by U.S. District Judge Sarah Evans Barker, to 24 years’ in federal prison, after having previously pleaded guilty to charges of production and possession of child pornography.
"Kelley is a child predator who deliberately sought out a high school coaching position intentionally placing himself near children," said Minkler. "The U.S. Attorney’s Office is committed to prosecuting individuals, like Kelley, who choose to sexually exploit children and who knowingly abuse positions of public trust."
The investigation began on January 16, 2018, when the Montgomery Sheriff’s Department opened a National Center for Missing & Exploited Children (NCMEC) CyberTip. Included in the tip were 18 images depicting pre-pubescent females exposing their genitals, engaged in sex acts, and erotic poses. These images were contained in a Dropbox account created by Jeremy Kelley. In compliance with a search warrant executed by law enforcement, Dropbox provided detectives with a mass storage device, which contained over 16,563 image and video files of mostly child pornography.
On June 29, 2018, following the execution of a search warrant at Kelley’s residence, Kelley consented to a search of his iPhone SE. Kelley admitted to receiving and possessing child pornography on his iPhone SE. The iPhone contained 451 videos and 27,000 images of mostly child pornography, including prepubescent minors engaged in sexually explicit conduct. Additionally, agents discovered the e-mail address associated with Kelley’s Dropbox account and his Dropbox application.
Also during the search, law enforcement discovered files depicting a minor victim (Minor Victim 1) engaged in sexually explicit conduct. Kelley surreptitiously produced child pornography of Minor Victim 1 between in or about June 8, 2018, and June 18, 2018. Minor Victim 1 was in Kelley’s care, custody, and control at the time of the recordings. Kelley admitted that he produced child pornography of Minor Victim 1 because he had a sexual interest in Minor Victim 1, and that he collected, and distributed child pornography collection because he had a sexual interest in children.
Kelley was arrested on July 1, 2018 by way of complaint and was indicted by a federal grand jury on August 21, 2018. Jeremy Kelley worked as an Assistant Track Coach at Attica High School at the time of his arrest.
This case was investigated by the Federal Bureau of Investigation and the Montgomery Sheriff’s Department.
"This sentence should send a strong message to those who would perpetrate such heinous crimes against children – the FBI and our law enforcement partners will continue to work diligently to identify, investigate and prosecute those who engage in these illegal activities," said Special Agent in Charge Grant Mendenhall, FBI Indianapolis.
"The Montgomery County Sheriff’s Office appreciates the relationships we have with the FBI, NCMEC, the U.S. Attorney’s Office, and all of our other law enforcement partners," said Sheriff Ryan Needham. "We continually strive to make Montgomery County, and the state of Indiana, a better and safer place for our citizens, and making an arrest like this makes all of us safer."
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Kelley will serve 20 years’ supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Federal Court in Savannah, Georgia, Enters Permanent Injunction Against Tax Return PreparerRead the Press Release
The U.S. District Court for the Southern District of Georgia has enjoined Andrea Nadel and her business, EZ Accounting & Tax Service LLC (EZ Accounting), along with Estelle Nadel, from preparing federal tax returns for others.
According to the United States’ complaint, Andrea Nadel, EZ Accounting, and Estelle Nadel prepared federal income tax returns that reported false Schedule A and Schedule C deductions in order to manipulate their customers’ claims for the Earned Income Tax Credit and reduce their taxable income. The complaint alleges that the defendants prepared returns that falsely claimed deductions for gifts to charity, unreimbursed employee expenses, tax preparation fees, and taxes paid, and that their practice of claiming these false deductions has resulted in significant lost tax revenues. As set out in the complaint, earlier this year, Andrea Nadel was indicted and pleaded guilty to aiding and assisting the preparation of a false tax return in violation of 26 U.S.C. § 7206(2).
Andrea Nadel, EZ Accounting, and Estelle Nadel agreed to entry of the permanent injunctions without admitting any factual allegations in the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
FBI solves string of bank robberies from 2016Read the Press Release
ROME, Ga. - Garrett Storm Hickey has been sentenced for a string of unarmed bank robberies in north Georgia and Alabama, which had gone unsolved for three years.
“Diligence by the FBI and our law enforcement partners helped solve these cold case bank robberies,” said U.S. Attorney Byung J. “BJay” Pak. “This is also an example of the exemplary cooperation by law enforcement across multiple districts to give closure to the victims and employees of the banks involved while bringing this robber to justice.”
“If not for the determination of the FBI and our state and local partners, Hickey would be close to being released from federal prison on a single bank robbery conviction,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But because of that collaborative effort, three bank robbery cases in Georgia and Alabama that were virtually closed, were re-opened and connected to Hickey. Our partnerships are integral to our mission of protecting the citizens of this country.”
According to U.S. Attorney Pak, the charges and other information presented in court: On July 6, 2015, Garrett Storm Hickey robbed a bank in Murfreesboro, Tennessee, using a threatening note that demanded money. Using a very similar note and always asking for $1,400, he then robbed three more banks.
On April 19, 2016, he robbed a bank in Ringgold, Georgia, and shortly after, on May 4, 2016, he robbed a bank in Priceville, Alabama. Hickey’s last known robbery was on July 20, 2016, at a bank in Athens, Alabama.
In 2017, Hickey was sentenced to just over three years in federal prison after a fingerprint linked him to the Murfreesboro robbery. Later, while still serving his initial sentence, a fingerprint identification by the Georgia Bureau of Investigation lab connected him with the Ringgold robbery. In addition, other evidence, including photos from the bank cameras, linked him to the two Alabama robberies.
In 2019, Hickey was indicted in the Northern District of Georgia, and with the cooperation of the U.S. Attorney’s Office for the Northern District of Alabama, and local district attorneys in the three local venues, he was prosecuted for the one Georgia robbery and two Alabama robberies here and pleaded guilty October 2019.
Garrett Storm Hickey, 29, of Centre, Alabama, was sentenced by U.S. District Judge Mark H. Cohen to five years, four months in prison, with credit for time served, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $4,200. Hickey was convicted on these charges on October 15, 2019, after he pleaded guilty.
This case was investigated by the FBI’s Atlanta-Dalton office, Birmingham-Huntsville office, and Memphis-Murfreesboro office, the Georgia Bureau of Investigation - Region 1, the Catoosa County Sheriff’s Office and the Ringgold Police Department, both in Georgia, as well as the Limestone County Sheriff’s Office, the Athens Police Department, and the Priceville Police Department, all in Alabama.
Assistant U.S. Attorney Katherine M. Hoffer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Deli Operators Plead Guilty to Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Hicham Khallad, and Karim Euchi, both 47 and of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to food stamp fraud. The charge carries a maximum penalty of five years in prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the Supplemental Nutrition Assistance Program (SNAP) uses federal tax dollars to help low-income individuals purchase food. Eligible individuals are provided with a debit card containing their SNAP benefits, from which they can make food purchases at authorized food stores. A business that accepts SNAP benefits must be authorized to do so and can only accept SNAP benefits in connection with the sale of eligible food products. It is unlawful for any store to accept SNAP benefits for non-food items, such as cigarettes, beer, or for cash.
Between May 2018 and February 2019, Khallad and Euchi operated the Joseph Market at 900 Joseph Avenue in Rochester, which was owned by Khallad’s wife. During that time, the defendants knowingly and unlawfully accepted SNAP benefits from customers in exchange for non-food items, such as cigarettes. Khallad and Euchi also purchased food stamp benefits for less than their full value for cash, resulting in a profit for the defendants.
The actions of the defendants caused the United States Government to deposit approximately $154,000 into the Joseph Market’s bank accounts for food that was never purchased.
The plea is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Monroe County Department of Social Services, under the direction of Commissioner Corinda Crossdale.
Sentencing is scheduled for April 10, 2020, before Judge Geraci.
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Cuban Man Sentenced to Four Years in Federal Prison for Possession of Counterfeit Access DevicesRead the Press Release
Gulfport, Miss. – Duniesky Vizcay De La Cruz a/k/a Vizcay Delacruz Duniesky, 35, a citizen of Cuba, was sentenced Friday by U.S. District Judge Sul Ozerden to serve 48 months in federal prison, followed by three years of supervised release, for knowingly possessing 15 or more counterfeit or unauthorized access devices, announced U.S. Attorney Mike Hurst and Shawn Wolfe, Resident Agent in Charge of the United States Secret Service in Mississippi. The Court also ordered De La Cruz to pay $97,174.49 in restitution to a victim.
On December 6, 2017, the South Mississippi Metro Enforcement Task Force conducted a traffic stop on Interstate I-10 in Jackson County. De La Cruz, a passenger in the car, was found to be in possession of approximately 528 “Vanilla MasterCard” pre-paid gift cards in his luggage. The investigation revealed that the 528 gift cards had been purchased with victims’ money at wholesale club stores in Georgia and Florida a few days prior to this traffic stop in Mississippi.
De La Cruz was charged on March 5, 2019 in a federal criminal indictment. He pled guilty before Judge Ozerden on August 21, 2019.
The case was investigated by the United States Secret Service with assistance from the South Mississippi Metro Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Andrea Jones.
Criminal Chief Assistant U.S. Attorney Beth C. Boswell Receives 2019 DOJ Criminal Division Assistant Attorney General’s Award for Distinguished ServiceRead the Press Release
Memphis, TN – On December 9, 2019, Criminal Chief Assistant U.S. Attorney Beth C. Boswell was selected as a recipient of a 2019 Criminal Division Assistant Attorney General’s Award for Distinguished Service, and received the award at the Criminal Division’s Annual Awards Ceremony in the Great Hall of the Robert F. Kennedy Main Justice Building in Washington, D.C. Ms. Boswell was selected for the AAG Award for Distinguished Service to recognize her superior performance in the case of United States v. Byron Montrail Purdy, et al. (Gangster Disciples Prosecution), a large RICO conspiracy case known as "Operation .38 Special", which was originally indicted in May, 2016, charging a total of 16 members of the Gangster Disciples criminal enterprise with racketeering and other crimes. Ms. Boswell was the lead AUSA in this significant gang prosecution, and led a team of trial attorneys who were also recognized with an AAG Award, including Sam Stringfellow, Assistant U.S. Attorney in the Northern District of Mississippi, and Trial Attorneys Francesca Liquori and Shauna Hale of the Criminal Division’s Organized Crime and Gang Section.
The prosecution team was recognized for their outstanding work in the investigation and prosecution of members and associates of the Chicago-based violent street gang, the Gangster Disciples. The Gangster Disciples is a criminal organization with a national presence. Since its inception in the 1980s, the organization has expanded its reach into at least 35 states. In the last several decades, it has made a name for itself as being one of the four most violent gangs in Chicago. Similarly, the Gangster Disciples are active in Tennessee, where it is considered one of the state’s most prominent and violent gangs. The gang is well known for the distribution of narcotics, trafficking in firearms, and violent crimes including murder, attempted murder, assault, and witness intimidation.
The prosecution team in this case, working with an FBI-led multi-agency gang unit that included agents and officers from the ATF, the Memphis Police Department, the Shelby County Sheriff’s Office, and the Tennessee Bureau of Investigation, investigated a plethora of violent crimes committed by leaders and members of the Gangster Disciples. In doing so, they were able to bring together a comprehensive racketeering indictment that documented over 20 years of criminal conduct in Memphis, Jackson, and multiple smaller communities throughout Tennessee, Arkansas, and Georgia that was committed to further the unlawful ends of this enterprise, including shootings, robberies, and the widespread trafficking of cocaine and marijuana. In all, the prosecution team secured the indictment of 16 of the most violent leaders and members of the Gangster Disciples operating in West Tennessee. Through long hours of hard work in trial preparation, multiple evidentiary hearings, and continued investigation, the trial team ultimately secured the conviction by plea to racketeering charges for all 16 defendants, which resulted in sentences as high as 30 and 35 years for the most serious offenders. This prosecution significantly damaged the national Gangster Disciples organization, eliminating some of its most powerful leaders, removing the gang from its key territory, and dismantling an important part of its organization. The prosecution team’s success in dismantling this important network of the gang in West Tennessee was exemplary.
Assistant U.S. Attorneys Jerry Kitchen and Annie Christoff, as well as Legal Assistants Laura Miller and LaTonya Weeks also assisted Ms. Boswell and contributed to the overall success of this case in a significant way.
U.S. Attorney D. Michael Dunavant said, "The importance of this RICO case cannot be overstated, and Ms. Boswell’s leadership in this massive disruption and dismantlement of the Gangster Disciples organization, including several governors, enforcers, and ranking members of the gang, was outstanding and deserves recognition at the highest levels of the Department of Justice. I am proud of the work and dedication of all of our employees in the Western District of Tennessee, and this award is further evidence of our collective commitment to the important mission and priorities of DOJ."
Pictured from left to right are: Deputy Assistant Attorney General David Rybicki; Shauna S. Hale, Trial Attorney, Organized Crime and Gang Section; Francesca Liquori, Assistant U.S. Attorney, District of New Jersey; Beth C. Boswell, Criminal Chief Assistant U.S. Attorney, Western District of Tennessee; Sam Stringfellow, Assistant U.S. Attorney, Northern District of Mississippi; and Brian Benczkowski, Assistant Attorney General for the Criminal Division.
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Computer Programmer Sentenced in Cyberattack Threat CaseRead the Press Release
WICHITA, KAN. – A Wichita computer programmer was sentenced today to three years federal probation and a $2,000 fine for threatening cyberattacks against two web sites that posted criticism of Wichita lawyer Brad Pistotnik, U.S. Attorney Stephen McAllister said.
David Dorsett, 37, Wichita, Kan., pleaded guilty to two counts of making extortionate threats via the internet. In his plea, Dorsett admitted he contacted Pistotnik in September 2014 offering reputation management services. Pistotnik met with Dorsett and showed him postings on the internet that Pistotnik wanted removed, including a Kansas Supreme Court disciplinary opinion for Pistotnik and a negative consumer review. Email communications between Dorsett and Pistotnik showed Postnik saying, “Any luck removing that bad website I showed you?” and “tell me how we get rid of it.”
Dorsett sent a barrage of emails to two web sites, leagle.com and RipoffReport.com demanding they remove information critical of Pistotnik. The emails read in part, “If you don’t remove it we will begin targeting your advertisers and explain that this will stop happening to them once they pull their ads…” Dorsett billed Pistotnik for sending the threats and Pistotnik paid him by check the same day.
Co-defendant Pistotnik was sentenced in October 2019 to pay a $375,000 fine and $55,200 in restitution.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Charleston Drug Trafficker Sentenced to Fifteen Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Robert Thomas, also known as “Zombie,” was sentenced to 15 years in prison for possession with intent to distribute methamphetamine. He was also ordered to serve a term of five years on supervised release.
“Thomas had a significant amount of meth and an arsenal of firearms,” said United States Attorney Mike Stuart. “And now he’ll be serving many years – 15 years – in federal prison. I am forever appreciative of the work our law enforcement partners do to remove dangerous drug dealers like Thomas from our streets. As a result of their work, we can sleep more soundly at night.”
“Drug dealers with guns are violent criminals who pose an increased threat to the safety of our communities,” stated ATF Acting Special Agent in Charge Tommy Estevan of the Louisville Field Division. “Our ongoing partnerships with local, state, and federal law enforcement not only are a wise use of resources, but are getting measurable results for the citizens of West Virginia.”
Thomas previously admitted that on January 17, 2017, law enforcement officers executed a search warrant at his residence on Joseph Street in Charleston. Detectives located 989 grams of methamphetamine and the following firearms: Masterpiece Arms, 9mm caliber pistol; Kimber, model micro carry, .380 caliber pistol; Russian, model SKS, 7.62 caliber rifle; and, Springfield Armory, model SOCOM 16, .308 caliber rifle. Thomas admitted to possessing the firearms to protect himself and the drugs. He further admitted to possessing the methamphetamine with the intention of distributing it.
The Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
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.
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Champaign Man Sentenced to 13 Years in Prison for Trafficking Millions of Counterfeit Xanax Pills on Darknet, Money LaunderingRead the Press Release
URBANA, Ill. – U.S. District Judge Michael M. Mihm today sentenced a Champaign, Ill., man, Stephan Caamano, to 13 years in federal prison for trafficking at least 4.3 million counterfeit Xanax pills throughout the country and laundering the proceeds. Caamano has been ordered to pay more than $2.1 million he gained in profits through this scheme. Caamano was ordered to serve a term of three years supervised release upon completion of his prison sentence.
On April 29, 2019, Caamano, 24, pleaded guilty to using darknet markets and cryptocurrency to traffic pills containing alprazolam, marked as ‘Xanax,’ from March 2017 through May 2018. Caamano purchased controlled substances from abroad to make the counterfeit pills in his unsanitary garage. The pills were manufactured to make them identical in appearance to prescription Xanax, so that unsuspecting individuals could easily have believed they were, in fact true Xanax. Caamano then shipped the pills nationwide in quantities ranging from 1,000 pills per package up to one million.
“This defendant made millions of dollars while putting thousands of people at risk from counterfeit medication that was manufactured in his garage,” said U.S. Attorney John Milhiser. “In addition, this scheme infringed on the ‘Xanax’ trademark to undercut legal marketing of the drug. Thanks to the diligent work of law enforcement, this dangerous scheme ended and this defendant is behind bars.”
According to court documents, Caamano took significant steps to avoid detection by law enforcement including creation of a limited liability company to hide his purchase of the house he used as a base of operations. In addition, Caamano used the darknet and cryptocurrency and built significant security measures into his home computer.
Caamano has remained in the custody of the U.S. Marshals Service since his arrest in May 2018, when he was charged in a criminal complaint. According to the affidavit filed in support of the criminal complaint, the investigation began when Customs and Border Protection agents contacted DEA agents after seizing items, including pill press machines, machine parts and alprazolam that were destined for delivery to Caamano at various addresses in California and in the Champaign, Ill., area.
The investigation was conducted by the Drug Enforcement Administration, Springfield Resident Office; U.S. Customs and Border Protection, Homeland Security Investigations; the U.S. Postal Inspection Service; Champaign Police Department Street Crimes Unit and the Champaign County Sheriff’s Office. Assistant U.S. Attorney Rachel E. Ritzer prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois.
Cass County Resident Sentenced to Prison for Oxycodone and Health Care Fraud OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on January 3, 2020, Rebecca Canfield, age 46, was sentenced to 30 months in prison by United States District Court Chief Judge John A. Jarvey for conspiracy to distribute oxycodone and health care fraud. Canfield will serve 48 months of supervised release following her release from prison.
In August of 2015, the Drug Enforcement Agency (DEA) received information regarding the illegal distribution of prescription drugs in and around Cass County, Iowa. An investigation revealed Mary Mayo and Rebecca Canfield obtained prescriptions for oxycodone from medical professionals through false representations of injury or illness and related pain management. Canfield used her Medicare/Medicaid benefits to obtain oxycodone from local pharmacies. Once the prescription drugs were obtained, Canfield provided the oxycodone to co-defendant Mary Mayo for resale. During the course of the investigation it was determined Canfield also received Social Security benefits to which she was not entitled. As part of her sentence, Canfield was ordered to pay restitution to Medicare/Medicaid, and the Social Security Administration.
Previously sentenced were: Mary Mayo, sentenced to 24 months imprisonment followed by 48 months of supervised release; Tony Martin May, sentenced to 12 months of imprisonment followed by 36 months of supervised release; Jessica Lynn Gross, sentenced to time served and 60 months of supervised release; and Alex Lee Pleis, sentenced to time served and 36 months of supervised release.
This case was investigated by the DEA; Department of Health and Human Services-Office of the Inspector General; Iowa Department of Inspections and Appeals, Medicaid Fraud Control Unit; Social Security Administration-Office of the Inspector General; Cass County Sheriff’s Office; Iowa Division of Narcotics Enforcement and Southwest Iowa Narcotics Task Force. This matter was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bristol Man Pleads Guilty to Methamphetamine and Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that a Bristol, Virginia man pleaded guilty last week in U.S. District Court in Abingdon to charges related to the distribution of methamphetamine and firearms.
David Benjamin Shaffer, 43, pleaded guilty to one count of possession with the intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense.
According to evidence presented at last week’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, on September 18, 2019, agents with the Drug Enforcement Administration, Washington County Sheriff’s Office, and the Abingdon Police Department conducted a traffic stop of a vehicle being operated by Shaffer and executed a search warrant. Officers located approximately seventy grams of methamphetamine in the vehicle and a loaded .40 caliber handgun in Shaffer’s waistband. Following his arrest, Shaffer admitted to his involvement in the distribution of methamphetamine when he was interviewed by agents with the Drug Enforcement Administration.
Shaffer will be sentenced on March 24, 2020. He faces a ten-year mandatory minimum term of imprisonment and a potential sentence of up to life in prison and/or $8,250,000 in fines.
The investigation of the case was conducted the Abingdon Police Department, Washington County Sheriff’s Office, and the Drug Enforcement Administration. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Bowie Man Pleads Guilty to Federal Charges for False Use of a PassportRead the Press Release
Greenbelt, Maryland – Arinze Michael Ozor, age 36, of Bowie, Maryland, a dual citizen of the United States and Nigeria, pleaded guilty on January 3, 2020, to federal charges of forgery or false use of a passport, in connection with his use of false passports to open “drop accounts” for a money laundering conspiracy.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).
According to his plea agreement, Ozor, a dual citizen of Nigeria and the United States, used at least two fraudulent passports as part of a money laundering conspiracy to open eight “drop accounts” to receive the proceeds from fraud schemes, including business e-mail compromise schemes and romance fraud schemes. The funds deposited to the accounts were largely disseminated to other entities as part of the conspiracy by Ozor and others.
Specifically, Ozor admitted that he used a Ghanaian passport in the name of Kelvin Green to open accounts at five banks between December 2017 and January 2018. Although the passport contained purported identifiers for Green, it contained Ozor’s photograph. When one of the banks froze the account due to suspicion of fraudulent activity, Ozor met with a banker to discuss regaining access to the account and presented the same Ghanaian passport in support of his request.
Ozor further admitted that from March 23, 2018 through May 1, 2018, he used a purported Beninese passport in the name of Jacob Hessou to open accounts at three additional banks. As with the Ghanaian passport, the Beninese passport contained purported identifiers for Hessou, but contained Ozor’s photograph.
The investigation found that Ozor does not have a validly issued passport from Ghana or Benin. In addition, the Kelvin Green Ghanaian passport number and the Jacob Hessou Beninese passport number were actually issued to other individuals by the respective governments and not to Green or Hessou.
More than $976,000 was involved in the money laundering conspiracy from the eight accounts opened by Ozor using the fraudulent passports.
Ozor faces a maximum sentence of 10 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George J. Hazel has scheduled sentencing for May 7, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI and the DSS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
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Baltimore County Man Sentenced to 23 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Kevin Daniel Mongold, Jr., age 22, of Halethorpe, Maryland, to 23 years in federal prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Bredar also ordered that, upon his release from prison, Mongold must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, on October 18, 2018, Dropbox made a report to the National Center for Missing and Exploited Children (NCMEC) that a user, later identified as Mongold, uploaded numerous images of an unknown prepubescent child who was being sexually exploited in the photos. Investigators worked to identify and locate the unknown child. After finding the child, law enforcement executed a search at Mongold’s residence and seized his iPhone and laptop computer. A forensic analysis of Mongold’s electronic devices revealed that Mongold had repeatedly sexually abused the five-year-old child for nearly a year, between September 2017 and September 2018, in order to produce visual depictions documenting the abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation, and thanked the Baltimore County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorney Christine Duey, who prosecuted the federal case.
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Attempt to Cover up Firearms Offense Leads to Incarceration for Man and Woman from Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that two individuals, Aaron C. Smith (Age: 27), formerly of Keshena, Wisconsin and Keanna R. King (Age: 26), of Keshena, Wisconsin received sentences after convictions related to a firearms offense on the Menominee Indian Reservation:
The sentences, imposed on December 30, 2019, and January 3, 2020, by United States District Judge William C. Griesbach, were the result of guilty pleas entered by the defendants on September 26, 2019. Smith pleaded guilty to Felon in Possession of a Firearm in violation of Title 18, United States Code, Section 922(g) and Tampering with a Witness in violation of Title 18, United States Code, Section 1512(b)(1). King pleaded guilty to Perjury before a Grand Jury in violation of Title 18, United States Code, Section 1623(a). Judge Griesbach sentenced the defendants as follows:
Defendant
Months of Confinement
Months of Supervised Release
Aaron C. Smith
Total of 48 months
36 months
Keanna R. King
8 months
36 months
The investigation revealed that on April 21, 2019, Smith possessed a small-caliber semiautomatic handgun while at a bar on the Menominee Indian Reservation. Officers with the Menominee Tribal Police Department entered the bar in order to arrest Smith, who had a warrant for his arrest through Wisconsin Department of Corrections. Smith passed the handgun to King, who concealed it in her vehicle. Officers later interviewed King, and she admitted she received the handgun from Smith. King then allowed officers to take it from her vehicle.
After his arrest, Smith called King from a jail phone numerous times in an effort to get her to change her story. King provided false testimony before a Federal Grand Jury in Milwaukee on May 29, 2019 when she denied Smith handed her the gun.
In sentencing the defendants, Judge Griesbach noted the seriousness of the crimes the defendants committed. Judge Griesbach also remarked upon the need to deter those would might consider similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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Public Information Officer Kenneth Gales 414-297-1700
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Armed Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lazaro Aguilar, 20, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci. Jr. to possession with intent to distribute heroin and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $1,000,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that Aguilar was arrested on February 16, 2018, after officers from the Rochester Police Department, who were patrolling the area of Murray Street and Lyell Avenue, saw the defendant driving a vehicle with excessively tinted windows in violation the New York State Vehicle and Traffic Law. After officers pulled the vehicle over, they identified Aguilar as the driver but he did not have a valid driver’s license. After ordering the defendant to exit the vehicle, officers searched Aguilar and found 32 small bags containing a mixture of heroin and fentanyl in his pocket. Officers also recovered a loaded pistol from the defendant’s pocket. Aguilar stated that he had the handgun for his protection, and that he had been shot at earlier.
Aguilar was again arrested on September 30, 2019, with 23 additional bags of fentanyl, and over $5,000 in United States currency.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Office.
Sentencing is scheduled for April 10, 2020, at 10:00 a.m. before Judge Geraci.
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Armed Drug Dealer Sentenced to Nearly 22 Years in Federal Prison After Federal Jury TrialRead the Press Release
Florence, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Gregory Bernard Gibson, 44, of Florence, was sentenced to nearly 22 years in federal prison after being convicted of being a felon in possession of a firearm and ammunition and possession with intent to distribute controlled substances following a 2-day jury trial. The case arose from a traffic stop conducted by deputies with the Florence County Sheriff’s Office’s (FCSO) Proactive Community Enforcement (PACE) Team.
Evidence presented at trial showed that on July 27, 2018, the PACE Team was patrolling a high-crime area on the east side of Florence when Gibson’s vehicle pulled out in front of a deputy’s unmarked vehicle, failing to yield the right-of-way. The deputy initiated a traffic stop on Gibson’s car based on the traffic violation. When he approached the car, the deputy immediately smelled the odor of marijuana, and Gibson stated that he had a small, personal-use quantity of the substance in his vehicle.
Based on the odor of marijuana, deputies searched the car. Once inside, they found what amounted to a mobile drug distribution center. There was a loaded, .45 caliber Glock semi-automatic pistol in the center console. Federal law prohibits Gibson from possessing a firearm based on several prior federal and state convictions for drugs and other offenses. Directly behind the center console and in front of a child car seat, deputies found a backpack containing distribution quantities of powder cocaine, crack cocaine, and marijuana; a bottle of a “cutting agent” drug dealers mix with drugs before they are sold to increase the amount the user thinks he is buying; multiple plastic baggies used to package drugs for sale; and a digital scale containing cocaine and marijuana residue.
Hidden inside a void underneath the cup holder area, deputies found a large piece of crack cocaine and 300 tablets of methamphetamine. After assimilating the large quantity of drugs and firearm evidence, the PACE team partnered with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to bring the case to federal court for prosecution.
United States District Judge Mary G. Lewis of Columbia sentenced Gibson to 262 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
“Across South Carolina, the U.S. Attorney’s Office is partnering with local law enforcement agencies to focus on the career criminals, like Mr. Gibson, who pose the greatest threat to our safety,” said Acting U.S. Attorney Crick. “We are grateful to Sheriff Barnes, the Florence County Sheriff’s Office PACE Team, and ATF for their continued efforts to reduce violent crime in our community.”
“This agency has a long and proud history of cooperation with our state and federal law enforcement partners to protect our communities from the scourge of illegal narcotics,” Sheriff Billy Barnes stated. “We deeply appreciate the splendid efforts of the ATF and the U.S. Attorney’s Office to help us remove dangerous criminals from our streets.”
The PACE team is a specially trained group of deputies that operates under the umbrella of the Special Operations division of the FCSO. PACE team deputies are tasked with patrolling high-crime areas of Florence County and engaging with individuals who present a higher-than-normal risk to the community, such as drug dealers and violent criminals. PACE team members also work alongside federal partners to bring cases to federal court when they involve career criminals or especially significant crimes. Through dedicating resources to specialized groups such as the PACE Team, the FCSO is able to be an effective partner with federal agencies.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorneys Lauren Hummel and Everett McMillian of the Florence office prosecuted the case.
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Arizona Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – An Apache Junction, Arizona man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Clint Gentile, 39, was sentenced to 90 months in prison for possession with intent to distribute methamphetamine and heroin.
“The work of the West Virginia State Police and other law enforcement agencies that patrol our highways is critical to our drug enforcement efforts,” said United States Attorney Mike Stuart. “These law enforcement officers are often the first to identify and apprehend drug dealers like Gentile and seize the poisons they intend to peddle.”
Gentile previously admitted that he was traveling on I-64 in Cabell County when the vehicle he was in was pulled over by the West Virginia State Police. Troopers searched the vehicle and found 552 grams of methamphetamine and 11 grams of black tar heroin. Gentile admitted that he intended to sell the drugs.
The West Virginia State Police Task Force West conducted the investigation. They were assisted by the Potomac Highlands Drug & Violent Crimes Task Force in the Northern District of West Virginia. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
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3 January 2020
Worcester Food Market Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – Makola Market, a retail food store in Worcester, has entered into a consent decree with the government to resolve allegations that it continually violated the Federal Meat Inspection Act (FMIA) by selling and offering for sale non-federally inspected meat products.
Under the consent decree, Makola Market and its owner and manager, Comfort Russell, face significant penalties if violations of the FMIA continue. The consent decree also permanently enjoins Makola Market and Ms. Russell from further violating the FMIA and provides investigators with broad access for inspection of the premises and business records in the future.
“Consumers should be able to trust that the food they buy is produced and sold under safe and sanitary conditions,” said United States Attorney Andrew E. Lelling. “This consent decree establishes procedures to prevent this business and its owner from further jeopardizing the health of consumers.”
“Our inspection personnel are on the job daily, verifying that establishments are providing consumers with safe, wholesome, and properly labeled meat products,” said Carmen Rottenberg, FSIS Administrator. “The consent decree agreed to by Makola Market provides our investigators with broad access to the premises and business records so that we can be confident in the safety of their meat products.”
The government filed its complaint after investigators with the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture (USDA) repeatedly issued written warnings to Makola Market and Ms. Russell to stop purchasing, offering for sale, and selling misbranded meat food products that were not inspected by the USDA. In addition, FSIS investigators cited Makola Market for failing to maintain the required business records of the purchase and sale of these meat food products. During the latest USDA inspection, investigators observed Makola Market offering for sale federally uninspected uncooked beef heads to retail customers and failed to maintain the necessary business records documenting the origin of these beef heads.
The government filed the proposed consent decree, which is subject to judicial approval.
U.S. Attorney Lelling and FSIS Administrator Rottenberg made the announcement today. Assistant U.S. Attorney Anita Johnson of Lelling’s Civil Division handled the case.
U.S. Attorney awards winning high school for drug-free PSA contestRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell has named Wheeling Central Catholic High School as the winner of the drug-free public service announcement contest launched at the beginning of the school year.
The contest encouraged high school students from across the Northern District of West Virginia to spread the message of the dangers of drugs by holding a public service announcement contest.
“I was very honored to judge the videos we received. If we are to win the opioid battle, education and prevention at the high school level is incredibly important. The students who worked so hard on their submissions and are to be commended. Their messages were inspiring. The dedication of these students demonstrated a real understanding of the issues, and I know the PSA will help in the ongoing education and prevention efforts,” said Powell.
The contest, which was open to all high schools in the 32 counties in the Northern District of West Virginia, gave students the chance to write, act, and produce in their own television PSA, promoting a drug-free high school. Eight high schools participated.
All videos were watched and judged by a panel of law enforcement partners. The judges were U.S. Attorney Bill Powell; Catherine Polichicchio with the FBI in Pittsburgh; and Stephanie Collins with ATF in Louisville, Kentucky. The winner was announced at the Cancer Research Classic basketball tournament January 3, 2020 at WesBanco Arena in Wheeling. The winner received an award from the U.S. Attorney’s Office, and the PSA will be shared with media outlets across the district for airing. All videos submitted to the contest were showcased at the tournament.
Students were encouraged to join the Drug Free Club of America at their school to gain free admission to the event.
Two Philadelphia Men Charged in Series of Robberies of Pharmaceutical Delivery TrucksRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Darryl Goodman, 55, and Nieem Cann, 26, both of Philadelphia, PA, were arrested and charged by Indictment for a series of violent robberies across the Delaware Valley over a four month period early last year. The ten-count Indictment charges Goodman and Cann with various offenses including conspiracy, Hobbs Act robbery, brandishing a firearm, carjacking, and possession of fentanyl with intent to deliver.
Between February and May 2019, the defendants are alleged to have perpetrated a string of violent robberies and attempted robberies of delivery workers and drivers for a pharmaceutical supplies company, TXX Services. The defendants’ alleged attacks on TXX drivers spanned a large geographic area that includes the City of Philadelphia, Montgomery County, Delaware County and into New Jersey. For each robbery, the defendants—working with other co-conspirators—would travel to TXX Services’ warehouse in Cherry Hill, NJ in the early morning hours and then follow a delivery van along its route. Goodman and Cann would then assault the driver in the course of a delivery, carjack the delivery van and abduct the victim, and drive the van to another location in order to raid its supplies and resell them on the street. In one of the incidents alleged in the Indictment, the robbery of a TXX delivery worker at Mercy Fitzgerald Hospital in March 2019, the defendants managed to steal over $140,000 worth of controlled substances and hospital supplies, including numerous vials of fentanyl citrate, a highly addictive opioid pain medicine.
“The allegations here are appalling, as the defendants ruthlessly stalked their victims before violently assaulting them,” said U.S. Attorney McSwain. “The TXX employees were simply doing their jobs, delivering much-needed medicine and supplies to healthcare centers, and of course should not have had to worry about having a gun pointed at them. It takes a special kind of depravity to steal medicine and hospital supplies in this manner. We will continue to work relentlessly to hold dangerous criminals accountable and get them off of the streets.”
“Not only did these defendants allegedly commit a string of brazen, violent carjack robberies, they did so in order to steal and sell controlled pharmaceuticals, including fentanyl, on the street,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Know that the Philadelphia Violent Crimes Task Force is working each and every day to stop dangerous criminals who have decided to make their money preying on the public.”
If convicted, both defendants face a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and is being prosecuted by Assistant United States Attorney Sara Solow.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Members of the Brooklyn-Based “Insane Crip Gangsters” Charged with Sex TraffickingRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging brothers Gladimir Thomas and Ronald Thomas, members of the Brooklyn-based “Insane Crip Gangsters,” a subset of the Crips street gang, with sex trafficking, sex trafficking conspiracy and promoting prostitution. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, over a period of years the defendants forced a woman to prostitute herself, while they enriched themselves at her expense,” stated United States Attorney Donoghue. “This Office will continue to work with the FBI and our local law enforcement partners to put an end to the criminal acts of those who seek to profit from sexual slavery.”
As alleged in the indictment and court filings, from 2014 through 2018, the defendants used violence and threats of violence to force their victim into prostitution. As part of their coercion, they plied her with drugs and deprived her of food and sleep, and demonstrated their control over their victim by tattooing their names on her body. The defendants then brazenly promoted their criminal acts on the internet and social media.
If convicted of sex trafficking, both defendants face a mandatory minimum term of 15 years’ imprisonment, and a maximum of life in prison.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Phil Selden is in charge of the prosecution.
The Defendants:
GLADIMIR THOMAS (also known as “Sleep,” “Sleep Boss” and “Daddy”)
Age: 31
Brooklyn, New YorkRONALD THOMAS (also known as “Roco,” “Roco Da Boss” and “Daddy”)
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-0001 (RRM)
Sparta Sex Offender Sentenced to 19 Years for Meth Trafficking, Counterfeiting, Failing to RegisterRead the Press Release
SPRINGFIELD, Mo. – A Sparta, Missouri, man was sentenced in federal court today for drug trafficking, counterfeiting, and failing to register as a sex offender.
William W. Chamlee, 53, was sentenced by U.S. District Judge Roseann Ketchmark to 19 years and seven months in federal prison without parole. The court ordered the federal sentence to be served consecutively to any sentence Chamlee receives in separate state cases in Arkansas.
On July 1, 2019, Chamlee pleaded guilty to possessing methamphetamine with the intent to distribute, counterfeiting, and failing to register as a sex offender.
Chamlee, who had arrest warrants and was being sought by Arkansas authorities, was located inside a camper at his residence in Sparta and arrested on Nov. 4, 2016. Law enforcement officers searched the camper and found a Jennings .22-caliber semi-automatic pistol, ammunition, approximately 17 grams of pure methamphetamine, numerous counterfeit bills of various denominations totaling $2,190, and the computer and printer used by Chamlee to create the counterfeit money.
Chamlee admitted that he bought an ounce of methamphetamine each week from a source he met on Craigslist, and had been doing so for two months. Chamlee said he purchased at least eight to 10 ounces of methamphetamine from his source and he was paying $700 to $800 per ounce.
Chamlee was convicted in Arkansas of video voyeurism against a 10-year-old victim, and therefore required to register as a sex offender for the remainder of his lifetime. Chamlee admitted he knew that he was required to register as a sex offender when he moved to Missouri, but didn’t register because of the Arkansas arrest warrants.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Patrick Carney. It was investigated by the U.S. Marshal Service, the Drug Enforcement Administration, the Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Christian County, Mo., Sheriff’s Department.
Senior Manager of Global Internet Company Pleads Guilty to Wire FraudRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced today that HICHAM KABBAJ, a former senior manager in Manhattan for a global internet company (“Company-1”), pled guilty before Untied States Magistrate Judge Stewart D. Aaron to one count of wire fraud. KABBAJ will be sentenced by United States District Judge Richard M. Berman, to whom the case is assigned.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Hicham Kabbaj defrauded the company for which he worked by arranging for payment of fraudulent invoices to a shell company he created. Kabbaj now awaits sentencing for his $6 million deception.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “Today, Mr. Kabbaj pled guilty to a serious felony because he chose to misuse his position of trust as a corporate executive to steal company funds for his own personal gain. As a result of the dedicated work of IRS-CI special agents, along with our partners at the U.S. Attorney’s Office, Mr. Kabbaj will face the consequences of his crime when he is sentenced by a federal judge.”
According to allegations in the Information and other documents filed in federal court, as well as statements made in public court proceedings:
From at least August 2015 until at least May 2019, KABBAJ engaged in a scheme to defraud his employer into paying a vendor named Interactive Systems, a KABBAJ-controlled shell company, for various information technology (“IT”) products and services. As part of the scheme, KABBAJ caused Interactive Systems to send invoices to Company-1 claiming that Interactive Systems performed services and purchased firewalls and servers for Company-1. In reality, Interactive Systems did none of that work, and KABBAJ quickly transferred the money that Company-1 paid to Interactive Systems to his own personal bank accounts. In total, KABBAJ defrauded Company-1 of more than $6 million as a result of the scheme.
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KABBAJ, 48, of Floral Park, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. KABBAJ has agreed to forfeit his homes in Palm Beach Gardens, Florida, and Hewitt, New Jersey, as property traceable to the offense, among other assets, and he has agreed pay restitution in the amount of $6,051,453.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
Mr. Berman praised the investigative work of the IRS-CI and Special Agents of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Ni Qian and Andrew A. Rohrbach are in charge of the prosecution.
Omaha Gang Member Sentenced for Possession of Firearm During a Drug Trafficking OffenseRead the Press Release
United States Attorney Joe Kelly announced that on January 3, 2020, Jal Chuar, 24, of Omaha, was sentenced to two months’ imprisonment for distributing marijuana and 60 months’ imprisonment consecutive for possessing a firearm during a drug trafficking offense by United States District Judge Robert F. Rossiter, Jr. There is no parole in the federal system. He will also serve five years of supervised release following his release from prison.
On November 27, 2018, a confidential informant made a controlled buy of 83 grams of marijuana and a Taurus 9mm handgun during a single transaction with Chuar, a known Trip Set gang member. The handgun was not registered to Chuar and the transaction was captured with audio-visual devices.
This case was part of a Project Safe Neighborhood initiative and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department as part of a larger operation to make controlled purchases of firearms, specifically targeting members of the Trip Set and African Pride gangs.
New Haven Oxycodone Dealer is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MILTON VEREEN, also known as “M.D.,” 40, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, for distributing oxycodone.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in and around New Haven. Vereen was an oxycodone distributor who sometimes redistributed oxycodone supplied to him by Butler and, at other times, supplied Butler with oxycodone.
Butler, Vereen and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging 19 individuals with various offenses.
On April 25, 2019, Vereen pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, oxycodone. Vereen, who is released on a $50,000 bond, is required to report to prison on March 17, 2020.
Butler pleaded guilty on August 9, 2019, and awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Morgantown man admits to firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christian Stevens, of Morgantown, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Stevens, age 27, pled guilty to one count of “Aiding and Abetting a False Statement During Purchase of Firearms.” Stevens admitted to conspiring with another to illegally purchase two pistols from a firearms dealer in December 2016 in Monongalia County.Stevens faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Magistrate Judge Michael John Aloi presided.
Missoula man sentenced for illegal firearm possessionRead the Press Release
MISSOULA—a Missoula man who admitted to illegally possessing two firearms was sentenced today to 22 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Scott Michael Todd, 39, pleaded guilty in September to prohibited person in possession of a firearm.
U.S. District Judge Donald M. Molloy presided.
In court document filed in the case, the prosecution said that in December 2018, Montana Probation and Parole officers conducted a check and search of Todd’s residence. The officers found two firearms, a Winchester Model 94 rifle with loaded with four rounds and a Heritage .22-caliber long rifle revolver. Todd was convicted in 2014 of felony robbery in Montana and was prohibited from possessing firearms.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and Montana Probation and Parole.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Middlesex County Man Admits Conspiring to Defraud United States Through Filing of False Tax ClaimsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted his role in a conspiracy to defraud the United States by filing false tax claims for gambling winnings, U.S. Attorney Craig Carpenito announced.
Michael Watsey, 43, of South River, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to defraud the United States with respect to claims.
According to documents filed in this case and statements made in court:
Watsey admitted that he was involved in a conspiracy with his family members and others to file 16 fraudulent U.S. Income Tax Returns for years 2014 through 2016. He and his conspirators created false W2-G forms to report gambling winnings, showing significant winnings and federal tax withheld by casinos in Atlantic City. The 16 false tax returns falsely claimed $3.9 million in federal tax refunds. The IRS paid out $1.3 million in refunds.
Watsey admitted to creating the false forms on his home computer, preparing false documents to send the IRS after tax refunds were questioned, pretending to be a casino host by phone with an IRS representative and devising a way to have false W2-G forms filed with the IRS.
The charge to which Watsey pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for April 7, 2020.
U.S. Attorney Carpentio credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Member of Southeastern Connecticut Drug Ring Sentenced to 71 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROYSHAWN ALLGOOD, also known as “Boy Roy,” 30, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 71 months of imprisonment, followed by five years of supervised release, for his role in a southeastern Connecticut drug trafficking ring.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and crack cocaine, and firearms. Allgood received narcotics from another member of the conspiracy and then distributed the drugs to users and other street-level distributors.
Allgood and 10 co-conspirators were arrested on February 21, 2019. On March 5, 2019, a grand jury in Hartford returned an indictment charging Allgood and 23 other individuals with various offenses. On June 4, 2019, Allgood pleaded guilty to one count of conspiracy to distribute cocaine, 100 grams or more of heroin, and 28 grams or more of cocaine base (“crack”).
Allgood, who was released on bond, was remanded to custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Maysville Man Sentenced to 199 Months for Carjacking and Brandishing a Firearm in Furtherance of a Crime of ViolenceRead the Press Release
COVINGTON, Ky. – A Maysville, Kentucky, man, Charles Wesley Bruener III, 33, who previously admitted to carjacking and threatening two individuals with a firearm in the course of the offense was sentenced Friday to 199 months in prison by U.S. District Court Judge David Bunning.
Bruener previously admitted that, on March 2, 2018, he fled from police in Falmouth, Kentucky, in a Ford Taurus. According to his plea agreement, officers pursued Bruener, and he eventually crashed the vehicle, breaking the hip of his girlfriend, Tiffany Thompson, who was a passenger in the Taurus. Bruener admitted that following the crash, he approached a nearby home, entered without permission, and waved a firearm at the home’s two occupants in order to steal their GMC truck and continue his flight from police. According to his plea agreement, Bruener admitted that when one of the victims in the home initially refused to comply, Bruener struck her, causing minor injuries. Bruener then pointed the gun to threaten a second occupant of the home and obtained the keys to the truck. Bruener and Thompson fled in the stolen truck and crashed it during a second police pursuit, further injuring Thompson’s broken hip. After Bruener and Thompson were arrested, officers recovered two stolen firearms and methamphetamine from the crime scenes.
Bruner pleaded guilty in September 2019. According to documents filed in the case, Bruener has previously been convicted of felony offenses, including receiving stolen property and robbery.
Under federal law, Bruener must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 5 years after his release from prison. The court ordered that the federal sentence run consecutively to the 17 year Kentucky prison term that Bruener is presently serving for other state charges.
Thompson pleaded guilty in October of 2018 to being a convicted felon in possession of a firearm. According to court documents, Thompson has prior convictions for felony drug trafficking and drug possession. She was sentenced in February 2019 to 78 months in prison and 3 years of supervised release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Tommy Estevan, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Pendleton County Sheriff Craig Peoples, jointly announced the sentence.
The investigation was conducted by Pendleton County Sheriff’s Office and ATF. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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 PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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/ag/about-project-guardian.
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Lincoln Woman Sentenced on Drug and Gun ChargesRead the Press Release
United States Attorney Joe Kelly announced that on January 3, 2020, Anna J. Chernyy, 24, of Lincoln, was sentenced by Chief United States District Judge John M. Gerrard to a total of 15 years in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug crime. Chernyy was sentenced to 10 years on the drug charge and a consecutive five years on the gun charge. There is no parole in the federal system. Following the prison terms, she will serve five years on supervised release.
Chernyy was held responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of a mixture or substance containing methamphetamine and at least 10 grams of heroin between January 30, 2019, and April 2, 2019, in the Lincoln area. Between January 30, 2019, and March 25, 2019, an undercover officer made 12 purchases of methamphetamine and/or heroin from Chernyy in Lincoln. During one of those purchases, on March 13, 2019, the officer saw Chernyy in possession of a Taurus 9mm handgun. During that time, Chernyy provided the officer with information leading to the identification of her source as her co-defendant, Jeremiah Burkhart. On March 31, 2019, Chernyy told the officer her source had gone to Colorado to bring back more drugs.
On April 2, 2019, officers stopped Burkhart in Grand Island on his way back to Lincoln from Colorado. During a search of his car, officers found methamphetamine and a Taurus 9mm handgun, believed to be the same handgun seen earlier in Chernyy’s residence. A search warrant was executed at Chernyy’s residence. During that search, a safe was found containing additional methamphetamine and heroin.
The total amount of methamphetamine purchased by the undercover officer and found during the searches of Burkhart’s car and Chernyy’s residence was more than 1.5 kilograms, and the total amount of heroin purchased or found during the search of Chernyy’s residence was more than10 grams.
Burkhart received 18 years in prison in December of 2019 after pleading guilty to the conspiracy charge.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Kansas Man Sentenced to 11 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Baxter Springs, Kansas, man whose previous sentence was commuted by then-President Barack Obama was sentenced in federal court today for committing another drug-trafficking violation soon after his release from prison.
Carroll J. Flowers, 69, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years and three months in federal prison without parole.
In an earlier unrelated case, Flowers was sentenced on June 19, 2002, to 20 years in federal prison following his conviction in the District of Kansas for conspiring to distribute 3.2 kilograms of pure methamphetamine. President Obama commuted Flowers’ sentence and he was released on May 19, 2017, to a term of supervised release. Approximately six months later, while still on supervised release, Flowers committed this offense.
Flowers pleaded guilty on May 28, 2019, to participating in a conspiracy to distribute methamphetamine from Dec. 6 to Dec. 13, 2017. When Flowers was arrested, he was carrying 83.1 grams of pure methamphetamine and $2,731.
Flowers was arrested with co-defendant Melissa A. Lowry, 44, of Joplin, Missouri. Lowry pleaded guilty to the same charge on Sept. 30, 2019, and awaits sentencing. She admitted to selling methamphetamine to a confidential law enforcement informant. When officers searched her residence at the time of her arrest with Flowers, they found a black-zipped pouch inside a compartment of a bedroom dresser that contained approximately 14 grams of methamphetamine, a digital scale, and unused baggies.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the FBI and the Ozarks Drug Enforcement Team.
Kalispell woman sentenced in opioid distribution caseRead the Press Release
MISSOULA—A Kalispell woman who admitted selling oxycodone pills to an undercover agent was sentenced today to 37 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Judith Johanna Cossette, 67, pleaded guilty in September to possession and attempted possession of oxycodone with intent to distribute.
U.S. District Judge Donald M. Molloy presided.
The prosecution said in court documents filed in the case that Cossette met with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives in March 2019 and sold the agent several pills, including 19 oxycodone tablets. Cossette told the agent she would be receiving 112 oxycodone tablets the following week and agreed to provide the agent with a steady supply of oxycodone for six months. The agent told Cossette he wanted the tablets to make some money.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the ATF.
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Inmate at USP Sentenced for Conspiring to Distribute Suboxone, Possess Suboxone, and Making False StatementsRead the Press Release
Abingdon, VIRGINIA – Victor Lebron, an inmate at USP Lee in Jonesville, Virginia, was sentenced yesterday to 180 months in prison for conspiring to illegally possess and distribute buprenorphine, also known as Suboxone, while incarcerated and lying to investigators about it, United States Attorney Thomas T. Cullen announced today.
Following a jury trial in December 2018, Victor Lebron, 43, was convicted of conspiracy to defraud the United States, conspiracy to distribute Suboxone, distributing Suboxone, and making false statements. Christy Santiago, who was also convicted following the December 2018 trial, was previously sentenced to 18 months in prison.
According to evidence presented at the trial, Santiago, who was Lebron’s girlfriend at the time, transferred several balloons full of Suboxone to Lebron during a visit to USP Lee. Lebron swallowed the balloons, which were later defecated by the defendant while he was held in a dry cell for suspicion of possession of narcotics. When questioned, Lebron denied getting the drugs from Santiago. Evidence presented at trial showed a series of discussions between the two leading up to Santiago’s visit regarding the transfer of drugs.
The investigation of the case was conducted by the Federal Bureau of Investigation and the United States Bureau of Prisons. Assistant United States Attorneys Randy Ramseyer and Kate Rumsey prosecuted the case for the United States.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 30 was:
Joshua John Welliver, 32, of Billings, on charges of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Welliver faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Welliver was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-153.
Appearing on Jan. 3 was:
James Russell Gokey Jr., 38, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Gokey faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gokey was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-158.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Government Contractor Sentenced to 18 Months for Fraudulently Claiming to Perform Services as a Minority Business EnterpriseRead the Press Release
WASHINGTON – Keith Forney, 61, of Washington, D.C., was sentenced on Friday to 18 months in prison for fraudulently claiming to perform services as a Minority Business Enterprise on a copier contract with the State of Maryland.
The announcement was made by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office.
On August 13, 2019, Forney pled guilty to mail fraud, money laundering, and tax fraud. The Honorable Rosemary M. Collyer sentenced Forney to 18 months of incarceration on the mail and money laundering charge to run concurrently to one another in addition to six months of incarceration for the tax fraud. She also entered a $400,000 forfeiture money judgment and ordered Forney to pay $92,000 in restitution to the IRS. Forney was also placed on three years of supervised release.
According to the statement of offense, Forney was the sole owner of Forney Enterprises, Inc. (FEI). FEI was primarily engaged in the construction business as a general contractor. Its principal office was located in the District of Columbia.
Forney participated in a scheme with John Vassos and the President of Sharp Business Systems (SBS) to obtain a contract with the Maryland Administrative Office of the Courts (Maryland AOC) for copier maintenance and repair services throughout the state’s court system. In 2009, the Maryland AOC solicited bids for the contract. The contract required that at least 20% of the work be performed by a Minority Business Enterprise (MBE). SBS bid on the contract and identified FEI as the MBE. Forney, on behalf of FEI, signed a subcontracting agreement with the President of SBS. The Maryland AOC awarded the contract to SBS, and renewed the contract in 2010 and 2011.
As detailed in the statement of offense, FEI performed no work and provided no services during the three years that the contract was in effect. Forney falsely stated in a letter to the MBE compliance manager that FEI was providing “logistic support” to SBS. Forney signed monthly work force rosters to the Maryland AOC falsely claiming that an FEI employee was working as a “Logistics/IT Support Technician” on the contract. The FEI employee was in fact a Quality Control Manager for FEI’s construction projects.
FEI submitted monthly $12,500 invoices to SBS for FEI’s purported work as an MBE. Sharp Electronics, the parent company of SBS, then issued checks to FEI. In total, FEI received $400,000 for its purported work as the MBE. Forney committed money laundering by providing the entire $400,000 to Vassos, who was an SBS consultant. Vassos pled guilty in June 2017 to one count of conspiracy to commit mail fraud, one count of tax fraud, and one count of conspiracy to commit wire fraud. He is awaiting sentencing.
In the statement of offense for the tax fraud case, Forney acknowledged that he knowingly under-reported his income from FEI on his personal federal income tax returns for the 2009 and 2010 calendar years. Forney did so by fraudulently treating certain expenses as deductible business expenses. Those expenses included: FEI payments to reimburse individuals whom Forney had directed to make contributions from their personal funds to candidates for D.C. political offices and to D.C. Council members’ Constituent Services Programs; an FEI $25,000 contribution to a mayoral campaign; an FEI payment to a law firm for its representation of a former foreign government official from a country where Forney owned investment property, in connection with the official’s trip to Washington, D.C.; FEI payments to Forney for “consulting” work; and FEI payments for his child’s college education.
In April 2019, Forney was convicted of eleven counts of campaign finance violations, three counts of fraud, two counts of perjury, and one count of corrupt election practices following a trial in the Superior Court of the District of Columbia. He was sentenced to six months in prison for the 11 illegal campaign violations and an additional 36 months, suspended, for fraud, perjury, and corrupt election practices.
In announcing the sentence, U.S. Attorney Liu praised the efforts of the FBI’s Washington Field Office and IRS. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including financial analyst, Bryan J. Snitselaar, paralegal specialists C. Rosalind Pressley and Amanda Rohde, former paralegals Toni Anne Donato, Kristy Penny, and Joshua Fein, and former U.S. Attorney’s Office investigator Juan Juarez. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Anthony Saler who prosecuted the case.
Former UVA Football Player Sentenced for $10 Million FraudRead the Press Release
RICHMOND, Va. – A former University of Virginia football player was sentenced today to 40 years in prison for a $10 million investment fraud scheme and a separate loan fraud scheme.
According to court documents, Merrill Robertson Jr., 39, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth Management, LLC, with co-conspirator Sherman Carl Vaughn. From 2008-2016, Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.
Among other things, Robertson led investors to believe he was an experienced investment advisor, that his company was qualified to serve as a custodian of retirement accounts, that investor money was deposited into individual tax-deferred retirement accounts, and that investor money was secured by tangible cash-producing assets owned by his company.
As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 60 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
By 2015, Robertson and his partner had spent most of the money they collected from investors. Robertson was then unable to raise new investor capital. So Robertson approached Cavalier investors and other friends and offered to help them get loans in exchange for a portion of the loan proceeds. Mr. Robertson and others then caused falsified loan applications to be submitted to various banks and credit unions on behalf of these individuals, which included false statements about the borrower’s personal financial status, the real purpose of the loan, and whether the loan was secured by collateral. In doing so, Robertson and others obtained nearly $250,000 through falsified loan applications to at least 5 financial institutions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Katherine Lee Martin, Stephen E Anthony, and Kenneth Simon prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-133.
Former Tomah and Kettle Moraine High School Principal Charged with Child Enticement and Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that David A. Hay (age: 39), a resident of Brooklyn, New York, was charged via a criminal complaint following his December 29, 2019, arrest by local authorities.
According to the complaint and supporting affidavit, starting in July of 2019, Hay, a former Wisconsin resident, began corresponding on a popular dating app with “Colton” whom he believed to be a 14 year-old boy living in Neenah, Wisconsin. Hay began engaging in sexually explicit conversations with “Colton” and making plans to meet up with the minor to engage in sexual activity.
“Colton” was, in fact, a City of Neenah Police Investigator operating undercover. The complaint alleges that Hay procured a “whirlpool suite” at a Neenah area hotel for the purpose of meeting up with the child for sexual activity. Following Hay’s arrest, a search of his smart phone revealed sexually explicit images of a former Tomah High School student. Hay was the principal at that school from 2011-2014. Prior to that he was an administrator at Kettle Moraine High School for several years.
Hay faces charges of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b), and possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B). He faces a mandatory minimum sentence of 10 years and up to a lifetime of imprisonment if convicted of the enticement charge, and up to 10 years imprisonment if convicted of the child pornography possession charge.
This case was investigated by the City of Neenah Police Department with the assistance of the Green Bay office of the Federal Bureau of Investigation and the Milwaukee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Prince George’s County Delegate Sentenced to Federal Prison for Wire FraudRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced former Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, to six months in federal prison, followed by two months of home detention with electronic monitoring, as part of three years of supervised release, on a federal wire fraud charge. Gaines converted more than $22,000 in campaign funds to her personal use. Judge Chuang also ordered Gaines to pay restitution and to forfeit $22,565.03, which is the loss resulting from her fraud.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Tawanna Gaines betrayed the public trust by using her position in the Maryland House of Delegates to enrich herself, at the expense of her constituents,” said U.S. Attorney Robert K. Hur. “Our elected officials are entrusted to make decisions in the best interests of the people they represent. We will pursue and prosecute those who break that trust and bring them to justice.”
“Public corruption at any level undermines the community’s faith in their elected officials thus enabling long-term damage to government institutions,” said FBI Baltimore Special Agent in Charge Jennifer Boone. “The FBI works diligently to detect fraud and corruption and hold those who violate the public’s trust accountable. Anyone who believes they have information about public corruption is asked to contact the FBI at 410-265-8080 or tips.fbi.gov.”
According to her plea agreement, Gaines was a Maryland State Delegate from December 2001 through October 17, 2019, representing District 22, which covered portions of Prince George’s County. Over her years in the House of Delegates, Gaines held many committee assignments, including vice-chair of the Appropriations Committee and Assistant Majority Leader. The “Friends of Tawanna P. Gaines” (FTPG) candidate committee was the name of the finance entity for the Gaines campaign for Maryland State Delegate from June 2002 to the present. FTPG was a regulated state election campaign committee with a designated bank account. Separately, Gaines held exclusive control over a PayPal account used to accept electronic donations to FTPG which was not disclosed in State campaign finance filings.
Gaines admitted that from at least January 2015 through April 2018, she defrauded the campaign and its contributors of more than $22,000. Specifically, Gaines solicited campaign contributions, falsely representing to contributors that the funds would be used to facilitate her reelection and maintain her leadership positions within the Maryland General Assembly. Gaines accepted donations from campaign contributors into the FTPG PayPal account, then without authorization and in violation of Maryland campaign finance laws, utilized campaign funds from the FTPG account for her personal use. Gaines admitted that she received campaign contributions and converted them to her own use without causing the contributions to be identified on reports made to the Maryland State Board of Elections.
As detailed in her plea agreement, Gaines used the campaign funds from the FTPG PayPal account to pay for personal expenses, such as fast food, hair styling, dental work, a cover for the pool at her personal residence, an Amazon Fire TV stick, Amazon Prime membership, and payments to Amazon.com. In addition, during the course of the scheme Gaines withdrew a total of approximately $1,952.75 in cash from ATM machines and electronically transferred at least $2,061.55 from the FTPG PayPal account directly to her personal checking account. The total loss as a result of Gaines’ fraud was at least $22,565.03. As part of her plea agreement, Gaines is required to forfeit and pay restitution in that amount.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
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