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19 December 2019
Two Plead Guilty to Charges Related to Safe Streets Task Force Investigation into Drug Trafficking in Braddock areaRead the Press Release
PITTSBURGH, PA – Two more residents of Western Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Reginald Brown, 29, formerly of Glassport, PA, pleaded guilty to one count related to drug trafficking, before United States District Judge Arthur J. Schwab.
Gregory Luptak, 51, of North Huntingdon, PA, pleaded guilty to one count related to drug trafficking also before Judge Schwab.
In connection with the guilty pleas, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock area. Reginald Brown, Gregory Luptak, and other individuals, were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh Region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
As to Reginald Brown, the Court was informed that intercepted communications confirmed that Brown was conspiring with others to possess with intent to distribute and distribute controlled substances, namely cocaine base in the form commonly known as crack. Mr. Brown admitted, in conjunction with his guilty plea, that he is a member of "SCO." The court was further advised that on June 12, 2019, law enforcement executed a search warrant at his residence and located the following items from the kitchen cabinets indicative of drug-trafficking, including: several cell phones, a Ruger 9mm pistol with loaded magazine and chambered round, a digital scale, suspected crack cocaine, sandwich baggies and baking soda, as well as $5,490.00. The court accepted Mr. Brown’s guilty plea to conspiracy to distribute 28 grams or more of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
As to Gregory Luptak, the Court was informed that intercepted communications confirmed that Luptak distributed large quantities of heroin. Mr. Luptak admitted, in conjunction with his guilty plea, that he was observed purchasing heroin at a stash house location on Seddon Avenue in Braddock, which he then distributed. The court accepted Luptak’s guilty plea to conspiracy to distribute 47 grams of heroin.
Judge Schwab scheduled sentencing for May 14, 2020, at 10:00 AM for Brown and May 18, 2020, at 10:00 AM for Luptak. For Brown, the law provides for a total sentence of not less than 5 years and not more than 40 years in prison, with a maximum fine of $5,000,000. For Luptak, the law provides for a total sentence of not more than 20 years in prison and a maximum fine of $1,000,000 at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. Williams was previously ordered detained by the court and will remain incarcerated pending sentencing. Luptak was released on bond pursuant to the court’s prior order and will remain out on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two North Mississippi Men Sentenced for Production of Child PornographyRead the Press Release
OXFORD – In two separate cases, an Alcorn County man and a Prentiss County man were each sentenced to approximately 20 years in federal prison for production of child pornography.
Donald H. Hobbs, 39, of Alcorn County pled guilty to one count of production of child pornography on Aug. 21, 2019. Hobbs was sentenced to 240 months in federal prison followed by 15 years of supervised release by District Judge Debra M. Brown in United States District Court for the Northern District of Mississippi.
Jordan Bridges, 28, of Prentiss County pled guilty on July 24, 2019 to one count of production of child pornography. Bridges was sentenced to 235 months in federal prison and a lifetime of supervised release by Chief Judge Sharion Aycock in United States District Court for the Northern District of Mississippi.
On Sept. 20, 2018, the Alcorn County Sheriff's Department received a Cybertip report of possible online activity involving a 14-year-old being enticed to produce sexually explicit images. During an initial investigation by the Alcorn County Sheriff's Department, it was determined that Hobbs had been enticing a minor for the purpose of producing child pornography. Upon determining that there was evidence of online criminal activity, a request was made that the FBI Jackson’s Child Exploitation and Human Trafficking Task Force assist with the investigation.
On Nov. 3, 2018, the Prentiss County Sheriff's Department received a report of possible child molestation and child pornography. During the initial investigation it was determined that Bridges had been sexually assaulting and photographing a minor for the purpose of producing sexually explicit images of a child. The Prentiss County Sheriff's Department has an officer assigned full time to the FBI Jackson’s Child Exploitation and Human Trafficking Task Force, and he was contacted to assist with the investigation.
These investigations were worked jointly by the Alcorn County Sheriff’s Department, Prentiss County Sheriff’s Department and the FBI Jackson’s Child Exploitation and Human Trafficking Task Force, which is made up of special agents from the FBI and task force officers from the Mississippi Attorney General’s Office, Prentiss County Sheriff’s Department, Hinds County Sheriff’s Department and Southaven Police Department. The cases were prosecuted by AUSA Paul Roberts.
Two Men Indicted for Trafficking Heroin and Fentanyl in San Joaquin CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Frank Jonathan Guzman, 27, and Jose Cruz Ivan Aispuro, 34, both of Stockton, charging them with distributing heroin and fentanyl, possessing heroin and fentanyl for distribution, and conspiracy to do the same, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2018 and November 2019, Guzman met with an undercover agent four times. During three of the meetings, he sold the agent heroin, and during the fourth meeting, Guzman sold the agent approximately 500 pills containing fentanyl. Surveillance units saw Guzman meeting with Aispuro before and/or after each transaction. In all, law enforcement bought over a pound of heroin and 500 fentanyl pills from Guzman. When agents searched Guzman’s and Aispuro’s homes on Dec. 11, they found over 9.7 pounds of heroin and approximately 10,000 fentanyl pills in Guzman’s home, and another 10.9 pounds of heroin in Aispuro’s home.
This case is the product of an investigation by the U.S. Drug Enforcement Administration.
If convicted of the most significant charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Eagle Butte Men Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that two Eagle Butte, South Dakota, men convicted of Possession with Intent to Distribute a Controlled Substance were sentenced on December 16, 2019, by U.S. District Judge Roberto A. Lange.
Terry Dillabaugh, age 70, was sentenced to 44 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Frederick Dillabaugh, age 57, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Terry and Frederick Dillabaugh were indicted by a federal grand jury on May 15, 2018. They each pled guilty on September 24, 2019.
The convictions stemmed from an incident that occurred on February 13, 2018, where law enforcement received a call on the whereabouts of Terry who had an outstanding tribal warrant. The Cheyenne River Sioux Tribal Law Enforcement Services responded and found Terry and Frederick in possession of 66.83 grams of methamphetamine, which they tried to conceal from law enforcement.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Both defendants were immediately turned over to the custody of the U.S. Marshals Service.
Two Anchorage Men Charged for their Roles in the December 2019 Armed Robbery of Wells Fargo BankRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two Anchorage men have been charged for their roles in the December 2019 armed robbery of a Wells Fargo Bank, N.A., branch located at 5740 Debarr Road in Anchorage.
Totoe Opeti Sakaria, Jr., 22, of Anchorage, was named in the indictment charging him with bank robbery, possession of a firearm in furtherance of a crime of violence, and for being a felon in possession of a firearm. His co-defendant, Brandon David McDonald, 23, of Anchorage, has been charged with accessory after the fact to bank robbery.
According to documents filed in the case, on Dec. 4, 2019, two masked men entered the bank and ordered the security guard and bank manager to get on the ground. One of the men approached a teller and demanded money, obtaining $2,624. The other man held a shotgun and demanded that everyone get, and stay, on the ground. Sakaria and McDonald were identified as suspects through still photos from surveillance footage that were released to the public. Two days later, on Dec. 6, 2019, FBI special agents recovered the shotgun from the crawlspace of a residence associated with McDonald.
If the public has any further information regarding this investigation, please contact Anchorage FBI at (907) 276-4441.
If convicted, Sakaria faces a maximum sentence of up to 25 years in federal prison, for the most serious charges alleged. McDonald faces a maximum penalty of up to 12.5 years in federal prison for the charge alleged. Under the Federal Sentencing Guidelines, any sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Allison O’Leary.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Troy Man Arraigned on Wire Fraud and Embezzlement ChargesRead the Press Release
ALBANY, NEW YORK – John R. Paeglow III, age 63, of Troy, New York, was arraigned today on 10 counts of wire fraud, and one count of embezzling funds from an employee benefit plan.
The announcement was made by United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).
Paeglow was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released on conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.
According to the indictment, Paeglow fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company. Paeglow obtained funding based on his false promises that he expected payment for the sales of books that, in fact, had not been sold or shipped.
Paeglow is also charged with embezzling employee contributions to his company’s health plan.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Paeglow carry a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being jointly investigated by the U.S. DOL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Trial Jury Finds New Orleans Man Guilty of Being a Felon in Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that on December 17, 2019, a federal jury returned a guilty verdict against DAMIEN JUSTIN, age 42, relating to being a prohibited person in possession of two (2) firearms.
According to the evidence presented at trial, on January 10, 2019, the Violent Crime Task Force for the Federal Bureau of Investigation executed a search warrant at 11416 North Easterlyn Circle, New Orleans, Louisiana. Inside this residence, members of the Task Force located a loaded Glock Model 27, .40 caliber semi-automatic pistol and a loaded Smith & Wesson Model Lady Smith, .38 caliber revolver in a nightstand next to JUSTIN’s bed. JUSTIN later admitted that he used the Glock and the Smith & Wesson revolver in the nightstand for his protection.
At the conclusion of a two-day trial, the jury found JUSTIN guilty of the sole count of the Superseding Indictment. JUSTIN faces up to a maximum of ten (10) years imprisonment. Sentencing in this matter is scheduled for April 7, 2020.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Strasser praised the work of the FBI New Orleans Violent Crime Task Force which led this investigation.
Assistant United States Attorneys Duane A. Evans and Andre Jones are in charge of the prosecution.
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Three People from Rapid City Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men and a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance were sentenced by U.S. District Judge Karen E. Schreier.
Joshua Kudlock, age 32, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Kudlock was sentenced on December 16, 2019.
David Brandon Pauly, age 31, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Pauly was sentenced on October 9, 2019.
Serena Renea Rodriguez, age 33, was sentenced to 78 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Rodriguez was sentenced on October 21, 2019.
Kudlock, Pauly, and Rodriguez were indicted by a federal grand jury on May 8, 2019. Kudlock pled guilty on September 23, 2019, Pauly pled guilty on July 16, 2019, and Rodriguez pled guilty on July 23, 2019.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately February 5, 2019, when Kudlock, along Pauly and Rodriguez came to an understanding to distribute 500 grams or more of a mixture or substance containing methamphetamine in the District of South Dakota.
At the time they joined in the agreement to distribute methamphetamine, they knew the purpose of the agreement or understanding.
On January 3, 2019, a vehicle they were all riding in for the purpose of making a drug run was stopped in Sioux Falls, South Dakota, and searched by law enforcement. Inside the vehicle, officers located approximately five pounds of methamphetamine.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Kudlock, Pauly, and Rodriguez were immediately turned over to the custody of the U.S. Marshals Service.
Three Men Extradited for Overseeing Call Centers that Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Three Peruvian men were extradited today to the United States, where they stand accused of operating a large fraud and extortion scheme, the Department of Justice and U.S. Postal Inspection Service announced.
Johnny Enso Hidalgo Marchan, 40, of Lima, Peru; Francesco Flabio Guerra Perez, 24, of Lima, Peru; and Rodolfo Hermoza Vega, 45, of Cajamarca, Peru, will face federal charges in Miami, Florida. The three men were arrested on July 28, 2016, by Peruvian authorities based on a U.S. indictment. All three have remained incarcerated in Peru since that time.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who target and threaten U.S. consumers by phone will not escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges here in the United States.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said Miami Division Inspector in Charge, Antonio J. Gomez. “With the continued cooperation of foreign governments these criminals will be aggressively pursued and brought to justice.”
Hidalgo, Guerra, and Hermoza allegedly managed and operated Peruvian call centers called Everglades, which were based in Lima and Cajamarca, Peru, and which worked in partnership with Angeluz Florida Corporation in Miami. According to the indictment, Hidalgo, Guerra, and Hermoza, and their employees in Peru used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims — many of whom were elderly — had never ordered these products and nothing had been delivered.
The indictment alleges that the defendants and their call center employees claimed that the consumers could resolve the supposed debts and fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
A 37-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida in June 2015 and was unsealed upon the defendants’ extradition to the United States. Hidalgo, Guerra, and Hermoza were charged with conspiracy, mail fraud, and wire fraud. Hidalgo and Guerra also face attempted extortion charges.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Everglades owner-operators, Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to serve 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to serve 210 months in prison.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Temple Man Sentenced to Federal Prison for Sex Trafficking Two MinorsRead the Press Release
In Waco today, a federal judge sentenced 26-year-old Riheem Rexdual Robinson (aka “Phat”) to 260 months in federal prison for sex trafficking two minors, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Interim Temple Police Chief Jim Tobin.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Robinson pay a $2,000 fine and be placed on supervised release for a period of ten years after completing his prison term.
On August 6, 2019, Robinson pleaded guilty to two counts of sex trafficking of children. By pleading guilty, Robinson admitted that in April 2012, he recruited, enticed, harbored and transported a minor and caused that minor to engage in a commercial sex act for which Robinson profited financially. Robinson also admitted to committing the same acts with a second minor in October 2016.
“Our children are our nation’s most precious resource,” said FBI San Antonio Division Special Agent in Charge Christopher Combs. “Those who would recruit and exploit them for the purpose of underage prostitution will have to answer for their despicable crimes, and that’s the strong message that was sent in today’s sentencing.”
The FBI and the Temple Police Department investigated this case. Assistant U.S. Attorneys Mary Kucera and Greg Gloff prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Stockton Man Sentenced to over 7 Years in Prison for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Marquez Jeter, 42, of Stockton, was sentenced today to seven years and eight months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on March 13, Jeter sold a Glock pistol to a confidential informant in exchange for $1,200. On April 10, 2019, Jeter offered the confidential informant access to a new supply of firearms. The next day, Jeter sold him 15 guns for $16,500. Jeter is a previously convicted felon and cannot lawfully possess firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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.
Stamford Man Sentenced to 9 Years in Federal Prison for Surgical Glove Investment SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS J. CONNERTON, 67, of Stamford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded more than 70 individuals, including several women he met on a dating website, of more than $2 million.
According to the evidence presented during his trial, Connerton was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford. Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets. Safety Tech had not obtained any patents from the U.S. Patent and Trademark Office, and Connerton did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).
Beginning in approximately June 2009, Connerton induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market. Connerton offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”
Several of the victim-investors were women who were drawn into the scheme after Connerton met them on a popular dating website.
Connerton made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”
Even though Connerton represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase two diamond engagement rings from Tiffany & Co. Connerton also used funds to repay loans to an earlier investor.
Through this scheme, Connerton defrauded more than 70 victim-investors of more than $2.2 million.
The investigation also revealed that Connerton engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities. Connerton negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.
The investigation further revealed that Connerton willfully failed to pay $293,033 in federal income taxes between 2003 and 2015.
On September 17, 2018, a jury found Connerton guilty of 12 counts of wire fraud, one count of mail fraud, 16 counts of securities fraud, four counts of money laundering and one count of tax evasion.
The government is seeking full restitution for the victim-investors and forfeiture of the two engagement rings that Connerton purchased with proceeds of the fraud scheme. Connerton also owes more than $500,000 in back taxes, interest and penalties. Restitution will be determined after additional court proceedings.
Connerton has been detained since his arrest on March 9, 2017.
This matter was investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division.
U.S. Attorney Durham also acknowledged the important assistance of the Securities and Exchange Commission.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Lauren C. Clark.
Springfield Woman Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Springfield, South Dakota, woman convicted of Theft of Government Funds was sentenced on December 16, 2019, by U.S. District Judge Karen E. Schreier.
Shelly Linn Jones-Hegge, age 44, was sentenced to 5 years of probation, restitution in the amount of $27,484.43 to the Social Security Administration, $21,210.18 to South Dakota Medicaid, and $6,060.00 to South Dakota SNAP, for a total of $54,754.61, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones-Hegge was indicted by a federal grand jury on December 4, 2018. She pled guilty on September 26, 2019.
The conviction stemmed from incidents between December 3, 2013, and July 1, 2017, when Jones-Hegge willfully and knowingly embezzled, stole and purloined money from departments or agencies of the United States, namely, Title XVI program benefits payments made to her stepdaughter, which are administered by the U.S. Social Security Administration.
In approximately December 2013, Jones-Hegge applied for Title XVI supplemental security income program benefits payments (SSI) for her stepdaughter. In the application, she stated that she lived with three minor children: her own two children and her stepdaughter. Jones-Hegge did not disclose that her husband—the biological father of her stepdaughter—was living in the same residence with them. Jones-Hegge was well-aware that her husband lived with them and was earning money from his employment, and that his earnings would factor into whether her stepdaughter was eligible to receive SSI benefits.
In March 2014, her stepdaughter was awarded SSI, and Jones-Hegge was appointed to be her representative payee. She began receiving benefits payments on behalf of her stepdaughter. In multiple reviews with the Social Security Administration and the South Dakota Department of Social Services, she repeatedly concealed that her husband was living in the same residence as her and her stepdaughter in order to continue receiving benefits to which she would not have otherwise been entitled. The value of the benefits received by the Defendant exceeded $1,000.
This case was investigated by the Social Security Administration, Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Spearfish Man Sentenced on Conspiracy ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jacob Papka, age 25, was sentenced on December 17, 2019, to 5 years in federal prison, followed by 4 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Papka obtaining heroin and distributing it to others between February 2017 and February 2019 near Spearfish.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Spearfish Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Papka was immediately turned over to the custody of the U.S. Marshals Service.
South Windsor Couple Charged with Defrauding Immigrant Clients, USCISRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven has returned an indictment yesterday charging BABAR KHAN, 41, and KHATIJA KHAN, 38, both of South Windsor, with offenses related to scheme through which individuals seeking immigration services were defrauded.
The Khans were arrested today. They appeared before U.S. Magistrate Judge Robert A. Richardson and were released on $50,000 bonds.
As alleged in the indictment, Babar and Khatija Khan, who are married, operated JLLAS CORP. and EIMAAN LLC, which were created to provide services to clients involved in proceedings with U.S. Citizenship and Immigration Services (“USCIS”). Between approximately May 2015 and January 2018, the Khans recruited clients who sought some form of immigration status, relief or benefit. Many of these clients are aliens residing in the U.S. without legal status and had limited education, a limited ability to understand English, and little to no knowledge of the documents that the Khans were filing with USCIS on their behalf.
The indictment alleges that Khatija Khan represented herself as an attorney with a background in immigration matters, even though she was not an attorney. The Khans prepared petitions and applications for their clients that contained information that they knew to be false. They also fabricated false documents to support their clients’ applications with USCIS without their clients’ knowledge. They then mailed, or caused to be mailed, these fraudulent applications and documents to USCIS, where they were received and made part of the official Alien file of each respective client.
It is alleged that many of the Khans’ clients received no relief from USCIS despite paying the Khans significant amounts of money.
The indictment charges Babar Kahn with one count of conspiracy to commit mail fraud, two counts of mail fraud and one count of filing a false tax return. Khatija Khan is charged with one count of conspiracy to commit mail fraud and one count of mail fraud. The conspiracy and fraud charges carry a maximum term of imprisonment of 20 years, and the tax charge carries a maximum term of imprisonment of three years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and the Internal Revenue Service – Criminal Investigation Division, with assistance from U.S. Citizenship and Immigration Services. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Individuals who believe they have been victimized by this scheme contact Ines Cenatiempo, Victim-Witness Coordinator of the U.S. Attorney’s Office, at [email protected] or by phone at 203-821-3757.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Cletus Gerald Williams, III, a/k/a C.J. Williams, age 23, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Williams was convicted of Sexual Abuse of a Minor in April 2017. As a result of this conviction, he is required to register as a sex offender. It is alleged that between September 23, 2019, and October 27, 2019, Williams, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Williams is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Williams was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Man Charged with Theft of Government Funds, False Statement, and Concealment of Information from SSI ProgramRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Theft of Government Funds, False Statement, and Concealment of Information from SSI Program.
Robert Anthony Brannon, age 29, was indicted on December 3, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 2015 and February 2019, Brannon, willfully and knowingly embezzled, stole, and purloined money from Title XVI program benefits payments made to himself and his wife. Title XVI is administered by the Social Security Administration.
The Indictment also alleges that on or about November 1, 2018, Brannon knowingly made false statements and representations in a Social Security Administration non-medical review - that is he reported he was not working and earning wages.
Finally, between October 2015 and February 2019, Brannon falsely reported that he was not working and continued to intentionally conceal and fail to disclose his wages, in order to continue to receive and spend SSI benefits payments made by the Social Security Administration to him and his wife.
The charges are merely accusations and Brannon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Social Security Administration, Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Brannon was released on bond pending trial. A trial date has not been set.
Shreveport Man Indicted for Homicide of U.S. Postal Service Employee and Federal Firearms OffensesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a federal grand jury in Shreveport returned a three-count indictment on December 18, 2019, charging Michael Jarred Gentry, 32, of Shreveport, with second degree murder, felon in possession of a firearm, and discharging a firearm during and in relation to a crime of violence, resulting in death. Local authorities arrested Gentry on June 22, 2019, in connection with the death of Antonio Williams, a U.S. Postal Service Letter Carrier. Gentry has been in custody since his arrest.
According to the indictment, Gentry shot and killed Antonio Williams on the morning of June 22, 2019, while Mr. Williams was working his mail delivery route on Dudley Drive in Shreveport. The indictment further charges that Gentry was a felon at the time he possessed the Romarm/Cugir WASR-10 and ammunition used in furtherance of the second degree murder charge. Gentry is a convicted felon and under federal law, it is illegal for him to possess a firearm or ammunition.
Michael Gentry is scheduled to be arraigned on January 9, 2020, before U.S. Magistrate Judge Mark L. Hornsby. If convicted, Michael Jarred Gentry faces up to life in prison for the second degree murder charge, 10 years in prison for being a felon in possession of a firearm, and 10 years in prison for discharging a firearm in furtherance of a crime of violence.
The U.S. Postal Inspection Service, Shreveport Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. U.S. Attorney David C. Joseph and Assistant U.S. Attorney Brandon B. Brown are prosecuting the case. The Caddo Parish District Attorney’s Office also has pending homicide charges against Gentry and is working collaboratively with the U.S. Attorney’s Office in the prosecution of this matter.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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Shelbyville Man Sentenced to 72 Months for Distributing Child PornographyRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Kentucky, man, Elder Rene Carrillo-Cruz, 28, was sentenced to 72 months in federal prison on Thursday, by United States District Judge Gregory F. Van Tatenhove, for distributing child pornography.
Carrillo-Cruz previously admitted that in March 2018, he knowingly distributed at least one video containing child pornography over the Internet. The investigation was the result of a Cyber Tipline report from the National Center for Missing and Exploited Children (NCMEC). As a result of the Cyber Tip, the Kentucky State Police conducted an investigation, which led them to obtain a search warrant that revealed evidence of the distribution of child pornography by Carrillo-Cruz.
Under federal law, Carrillo-Cruz must serve a minimum of 85 percent of his prison sentence. He will be under the supervision of the United States Probation Office for 20 years after being released.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI); and Rick Sanders, KSP Commissioner, jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant United States Attorney David Marye.
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San Leandro Man Charged with Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Jose Victor Rodriguez, 36, of San Leandro, charging him with possession with intent to distribute at least 50 grams of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 25, Rodriguez led Manteca police officers on a high‑speed car chase during which he reached speeds of 110 miles per hour and covered 11.5 miles in 7 minutes. He then ran from his vehicle and was seen carrying a black bag that was later recovered and found to contain approximately 84 grams of methamphetamine in multiple separate packages.
This case is the product of an investigation by the FBI, Manteca Police Department, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 40 years in prison and a mandatory minimum of five years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Saint Louis Man Indicted for 2019 Attempted Armed Carjacking that Resulted in Victim's DeathRead the Press Release
St. Louis, MO – A federal indictment was returned today against Jalen Exavier Simms, 24, of Saint Louis, for his role in the June 3, 2019 death of victim Jabari Clark. The indictment specifically charges Simms with one count of the attempted carjacking of victim Clark’s 2012 Dodge Ram truck and one count of discharging a firearm in furtherance of that carjacking that resulted in victim Clark’s death.
If convicted, the both charges carry a maximum penalty of life imprisonment or the imposition of death. As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
“Gun violence and carjackings remain top priorities of this office. We continue to work with our federal, state, and local law enforcement partners to prevent these senseless acts of violence but, when they occur, we are committed to holding each and every perpetrator accountable to the fullest extent of the law,” said United States Attorney Jeff Jensen following the indictment’s return.
This case is being investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Romanian Nationals Plead Guilty in Federal Court to Illegal Possession of Device Making Equipment and Possession of Fifteen or More Counterfeit or Unauthorized Access DevicesRead the Press Release
United States Attorney Brandon J. Fremin announced that Cristian Constantin, age 20, and Mihaela Stancu, age 25, both of Romania, pled guilty before U.S. Chief Judge Shelly D. Dick. Constantin pled guilty to illegal possession of device making equipment and possession of fifteen or more counterfeit or unauthorized access devices. M. Stancu pled guilty to possession of fifteen or more counterfeit or unauthorized access devices. Earlier, on October 30, 2019, Petre Stancu and Antonio Serdaru pled guilty to possession of fifteen or more counterfeit access devices. As a result of their guilty pleas, these defendants face significant terms of imprisonment, fines, and a period of supervised release
On March 9, 2019, a bank fraud investigator with Capital One Bank began following the progress of a group of Romanians driving about Shreveport, Louisiana, using fraudulent credit cards to withdraw sums of cash from various Capital One Bank ATMs. The investigator then followed their progress from Shreveport to Baton Rouge, Louisiana, where the group continued to use those fraudulent cards to withdraw cash at Bank One locations in Baton Rouge.
Upon receiving this information from the investigator, Secret Service immediately passed it on to state and local law enforcement agencies, urging those agencies to rush personnel to those ATM locations to find and apprehend those suspects.
The investigator supplied information surrounding the vehicle makes, license plate numbers, and photographs of individuals in this group. Those photographs included one of a white Honda Accord, a black Mercedes, and a GMC Terrain. The investigator shared video stills depicting P. Stancu, Serdaru, and Constantin making fraudulent withdrawals at various Capitol One Bank ATM locations, as well as M. Stancu, marking those cards used by her brother, P. Stancu, to make those fraudulent withdrawals.
Secret Service received information of fraudulent activity occurring at the Bank One ATM at or near 6581 Siegen Lane/Industriplex. A deputy rushed to that location and found Constantin and a pregnant juvenile in a GMC Terrain. Law enforcement agents found over one hundred counterfeit credit cards, an encoder device, false identification documents for Constantin, and approximately $5,200.
Constantin later confessed that he used the credit cards to make fraudulent withdrawals from various Bank One ATM locations.
On March 11, 2019, Livingston Parish Sheriff’s Office deputies found and stopped the black Mercedes, driven by P. Stancu, and occupied by his sister, M. Stancu, Serdaru, and a juvenile in Walker, Louisiana. During this encounter, the juvenile female falsely claimed to be pregnant and requested deputies to allow her to go to the restroom. After deputies told the juvenile female to wait for an ambulance, she tried to hide a boost bag she was carrying beneath the Mercedes.
Deputies seized the bag and found it contained approximately $3,860 and 191 counterfeit cards. These cards contained re-encoded account numbers of customers who did their banking with Capital One and Regions Bank. During their search of the Mercedes, authorities found $931, four gift cards with re-encoded account numbers (counterfeit cards), and a cellular phone.
P. Stancu, M. Stancu and Serdaru admitted to authorities that they used those counterfeit cards to make fraudulent withdrawals from various ATM machines. Additionally, P. Stancu and Serdaru led authorities to the Honda Accord they left in a parking lot of the Home Depot in Denham Springs, Louisiana.
U.S. Attorney Fremin stated, “Access device fraud is a serious crime that can put citizens in great financial distress. This office will always take these crimes seriously and work with all of our partners to bring offenders to justice. I want to commend our prosecutor, the Secret Service, the Livingston Parish Sheriff’s Office, the East Baton Rouge Sheriff’s Office, and the investigators from Capital One Bank, whose quick action resulted in the arrest and conviction of these fraudsters.”
Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge, praised the quick response of local law enforcement. McLeese said, “Our partners in state and local law enforcement are critical to suppressing fraudulent financial activities. Through the Secret Service led Southwest Louisiana Financial Crimes Task Force, there are robust protocols and procedures in place to identify and capture individuals who choose to defraud the public.”
Livingston Parish Sheriff Jason Ard stated, “This case shows that agencies working together and sharing information can lead to great success. This type of crime heavily impacts these victims - not only taking their money, but targeting their way of living. When we can work together to take down a group of cowards attacking our hard-working citizens, it is a success in law enforcement.”
This matter is being investigated by the United States Secret Service, with critical assistance from the Livingston Parish Sheriff’s Office and East Baton Rouge Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.
Rapid City Man Sentenced on Conspiracy ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert Cook, age 37, was sentenced to 4 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cook joined a methamphetamine distribution conspiracy with other individuals no later than January 2017. During the course of the conspiracy, Cook received methamphetamine directly from different individuals and distributed the methamphetamine in Rapid City. Over the course of the conspiracy, at least 500 grams of methamphetamine was distributed in the Rapid City area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Cook was immediately turned over to the custody of the U.S. Marshals Service.
Porcupine Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, woman convicted of Larceny was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lorraine Yellow Boy, age 45, was sentenced on December 16, 2019, to 6 months in federal prison, followed by 1 year of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $30,661 in restitution.
The conviction stems from Yellow Boy, while employed as an Evidence Technician with the Oglala Sioux Tribe Department of Public Safety, taking $30,661 from evidence bags and using it for her personal benefit between October 2018 and March 2019.
The investigation was conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Yellow Boy was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Man Charged with Illegally Possessing Synthetic CannabinoidRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Dec. 17, named Kris Johnson, age 28, as the sole defendant.
According to the indictment, on August 12, 2018, Kris Johnson possessed with the intent to distribute a quantity of 5-F ADB, a synthetic cannabinoid, a Schedule I controlled substance
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierre Man Indicted on Gun ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Nathen Doherty, a/k/a Nathan Doherty, age 22, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 11, 2018, Doherty, knowing he was an unlawful user of and addicted to a controlled substance as defined in 21 U.S.C. § 802, knowingly possessed a Remington Arms Company Incorporated, model 870 Express Super Magnum, 12 gauge, pump-action shotgun, which had been shipped and transported in interstate commerce and foreign commerce.
The charge is merely an accusation and Doherty is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Doherty was released on bond pending trial. A trial date has not been set.
Philip Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Philip, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Steven Frost, age 38, was sentenced to 5 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Frost, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Mossberg, model 500A, 12 gauge pump shotgun, a Smith & Wesson, model Bodyguard, .380 caliber semi-automatic pistol, and a Taurus, model PT738, .380 caliber semi-automatic pistol, which were all found in Frost’s vehicle during a traffic stop near Black Hawk on January 5, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Dakota Highway Patrol. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Frost was immediately turned over to the custody of the U.S. Marshals Service.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
BOSTON – A federal grand jury in Springfield returned an indictment today charging a Springfield golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
Kevin M. Kennedy, 41 of East Longmeadow, was indicted on three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, and four counts of filing a false tax return, and one count of conspiracy to defraud the United States. Kent S. Pecoy, 62, and Jason Pecoy, 39, both of Wilbraham, were also charged with conspiracy to defraud the United States.
According to the indictment, Kennedy owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect greens fees and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
The wire fraud and money laundering charges provide for a sentence of up to 20 years in prison, five years of supervised release, and a fine of $250,000. The theft and monetary transactions charges provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. The tax fraud charges provide for a sentence of up to three years in prison, three years of supervised release, and a fine of $100,000. The conspiracy charges provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
A federal grand jury in Springfield, Massachusetts, returned an indictment today charging a local golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
According to the indictment, Kevin M. Kennedy, a Massachusetts resident, owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect golfer fees, known as “greens fees,” and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, Massachusetts, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
If convicted, Kennedy faces a maximum of up to 20 years in prison for each count of wire fraud and money laundering, ten years in prison for each count of theft concerning a program receiving federal funds and for engaging in monetary transactions in property derived from specific unlawful activities, five years in prison for conspiracy, and three years in prison for each count of filing a false tax return. Kennedy also faces a term of supervised release, restitution and monetary penalties.
If convicted, the Pecoys each face up to five years in prison for the conspiracy count, a term of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Steve Breslow from the District of Massachusetts and Trial Attorney Christopher O’Donnell of the Department of Justice’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Detroit-Area Health Care Clinics Sentenced to Prison for a Diversion Scheme Involving 500,000 Pills of Oxycodone and Other DrugsRead the Press Release
The owner of a Detroit-area pain clinic and physical therapy clinic was sentenced to 11 years in prison today for her role in a diversion scheme involving more than 500,000 pills of oxycodone and other drugs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Shirley Douglas, 70, of West Bloomfield, Michigan, was sentenced by U.S. District Judge David Lawson of the Eastern District of Michigan. In September, Douglas pleaded guilty to one count of conspiracy to distribute controlled substances.
As part of her guilty plea, Douglas admitted that, as the owner and operator of a pain clinic and a physical therapy clinic located in Southfield, Michigan, she conspired with others to distribute medically unnecessary controlled substances, including oxycodone, oxymorphone, alprazolam, hydrocodone and promethazine hydrochloride, through the selling of appointments with physicians at their pain clinics.
The total drug amount attributable to Douglas is in excess of 500,000 pills of oxycodone.
Douglas’s co-defendant, Malik Fuqua, pleaded guilty on Nov. 13, 2019, and is scheduled to be sentenced on Feb. 26, 2020.
The DEA and HHS-OIG investigated the case. Assistant Chief Malisa Dubal and Trial Attorney Patrick Suter of the Criminal Division’s Fraud Section are prosecuting the case. The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Tom Tynan of the Criminal Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 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.
Owner of Scrap Metal Business Admits Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – The owner of a scrap metal business in Morris County, New Jersey, today admitted that he underreported his income on his personal tax returns, avoiding paying more than $175,000 in taxes, U.S. Attorney Craig Carpenito announced.
Anthony Curto Jr., 51, of Succasunna, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of making and subscribing a false tax return.
According to documents filed in the case and statements made in court:
Curto owned and operated Total Metal Transport, a business headquartered in Succasunna that purchased and transported scrap metal and other materials. Curto admitted that for tax years 2012 and 2013, he underreported and failed to report the gross receipts from Total Metal Transport, which he operated on a cash-only basis, on his personal tax return, avoiding more than $175,000 in taxes.
The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited special agents of the 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 Bernard J. Cooney of the Health Care & Government Fraud Unit.
Orlando Man Sentenced to More Than 13 Years in Federal Prison for Armed Carjacking of Pizza Delivery DriverRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has sentenced Sheldrick D. Singleton Jr. (20, Orlando) to 13 years and 4 months in federal prison for committing an armed carjacking, and for possessing a firearm during and in relation to a crime of violence. Singleton had pleaded guilty on August 26, 2019.
According to court records, on March 21, 2019, Singleton and two other suspects held a pizza delivery driver at gunpoint as the driver attempted to deliver a pizza in the Pine Hills area of Orlando. While holding the victim at gunpoint, Singleton and the other two suspects demanded the keys to the victim’s vehicle and drove away, leaving the victim behind. Approximately 20 minutes later, deputies located the vehicle in Winter Garden and attempted to stop the vehicle. The suspects refused to stop and fled, at speeds of more than 100 miles per hour. One of the pursuing deputies performed a tactical maneuver that successfully immobilized the vehicle. Singleton and the other two suspects were then removed from the vehicle and arrested.
One of the suspects, Anthony Sean Williams Jr., was indicted by a federal grand jury for the same offenses as Singleton and is currently pending trial. The third suspect is a minor and the matter is being handled in state court.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Winter Garden Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Omaha Man Found Guilty of Child Enticement ChargeRead the Press Release
United States Attorney Joe Kelly announced that Luis A. Tobar, age 44, of Omaha, Nebraska, was found guilty on December 18, 2019, following a two-day trial in federal court in Omaha for Attempted Coercion and Enticement of a Minor. The Honorable Robert F. Rossiter, Jr. scheduled Tobar’s sentencing for March 13, 2020 at 9:30 a.m. Tobar is facing a mandatory minimum of 10 years’ imprisonment and up to life imprisonment for this conviction.
On April 12, 2019, the FBI Child Exploitation and Human Trafficking Task Force (CEHTTF) was conducting an operation in Douglas County, Nebraska. As part of the operation, an undercover officer with the CEHTTF posted an advertisement on an escort website known to be used for the purposes of prostitution. Tobar responded to the advertisement and engaged in communications with an undercover officer who he believed to be a 15-year-old female. Believing that he was communicating with a 15-year-old female, Tobar requested that she send him nude pictures, agreed to pay her for sex, and traveled to an agreed upon location to meet her. Tobar was arrested by members of the CEHTTF and at the time of his arrest was found to be in possession of the cellular phone he used to communicate with the undercover officer, a large monetary sum, and alcohol.
This case was investigated by the FBI Child Exploitation and Human Trafficking Task Force. Douglas County Sheriff’s Office, Lincoln Police Department, Omaha Police Department, LaVista Police Department, Nebraska State Patrol, Council Bluffs Police Department, and the Sarpy Douglas County Law Enforcement Academy participated in the April 12, 2019 operation.
Ohio man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Thomas Savage, of Wintersville, Ohio, has admitted to a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Savage, age 37, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Savage admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Savage faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio man admits to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Mustafa Ali Vaughn, of Canal Winchester, Ohio, has admitted to drug distribution, U.S. Attorney Bill Powell announced.
Vaughn, also known as “Moose” and “Fargo,” age 38, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Vaughn admitted to selling cocaine near Luau Manor in Ohio County in May 2019.
Vaughn faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
O.C. Immigration Lawyer Sentenced to 18 Months in Federal Prison for Long-Running Visa Fraud Scheme and Tax OffensesRead the Press Release
SANTA ANA, California – A Laguna Beach lawyer was sentenced today to 18 months in federal prison for submitting dozens of fraudulent visa petitions to U.S. immigration authorities and for failing to report her illicit funds to the IRS.
Mihae Park, 54, was sentenced by United States District Judge Josephine L. Staton, who scheduled a March 6 hearing on the amount of restitution to be paid.
Park pleaded guilty on May 16 to a two-count information charging her with visa fraud and filing a false tax return.
Between 2000 and 2017, Park submitted to U.S. Citizenship and Immigration Services (CIS) more than 200 immigrant and non-immigrant work visa petitions that had false information. The petitions sought visas for foreign nationals based on false claims that they were going to work in highly skilled or executive positions at various businesses, when, in reality, they would not be employed by those companies, or they worked in low-level positions for which a visa would not be available. Among other false information contained in the visa petitions, Park claimed that she was employed by the petitioners under the alias Michelle Park, stated the businesses had employees who were actually deceased or retired people, listed the same people as employees at multiple petitioners, used bogus Social Security numbers for employees of petitioners, and submitted fake tax returns for work visa petitioners.
The charging information cited two particular examples of Park’s visa fraud that occurred in 2013, when she submitted two fictitious petitions on behalf of an Orange County educational company. The petitions were submitted for two people she claimed would work there, respectively, as a Chinese language teacher and as a music instructor. In reality, the company did not know or hire the two work visa beneficiaries, and the company did not offer classes in Chinese language or music.
“The crux of [Park’s] fraud was that she submitted petitions on behalf of entities without their knowledge, for the benefit of individuals who were not their employees, and disclosed none of that to CIS,” prosecutors wrote in the government’s sentencing papers.
Park also admitted filing false tax returns for the years 2009 through 2014 by failing to report receipts totaling $763,418 for this time period. As a result of her underreporting of her business income, Park admitted in her plea agreement that she owes the IRS $266,988 in unpaid federal income tax over this six-year period.
The government seized $292,482 that Park received for the filing of fraudulent visa petitions, and also seized a 2012 Ferrari California and a 2015 Volkswagen GTI that Park purchased with the visa fraud proceeds.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorneys Lawrence E. Kole of the Santa Ana Branch Office and Brent A. Whittlesey of the Asset Forfeiture Section.
North Carolina Man Sentenced to 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Newton, North Carolina, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 12, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gregory Skrehot, age 59, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
From February 2017 through February 25, 2018, Skrehot conspired and agreed with others to receive methamphetamine directly from suppliers in Colorado. Skrehot would transport the methamphetamine to Rapid City, where he would then distribute it to numerous individuals. Over the course of the conspiracy, at least 500 grams of methamphetamine was distributed in the Rapid City area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Skrehot was immediately turned over to the custody of the U.S. Marshals Service.
North Carolina Man Residing in Deschutes National Forest Sentenced for Failing to Register as a Sex OffenderRead the Press Release
EUGENE, Ore.—A North Carolina man illegally residing in the Deschutes National Forest was sentenced to federal prison today after months of failing to register as a sex offender.
Russell Joseph Szkolnyj, 51, of Wake County, North Carolina was sentenced to 18 months in federal prison and five years’ supervised release.
According to court documents, in 2006, Szkolnyj was convicted of indecent liberties with a six-year-old child and ordered to register as a sex offender. He was later convicted in 2009 and 2012 for failing to register in North Carolina. By May 2018, Szkolnyj had once again failed to register prompting the Wake County, North Carolina Sheriff’s Office to seek and obtain a warrant for his arrest.
Sometime thereafter, Szkolnyj relocated to Oregon and, in July 2018, was advised by John Day, Oregon police officers of his need to register. Ten days later, Szkonyj, who still had failed to register, was contacted by Bend, Oregon police officers investigating the theft of a paddleboard in a public park. Szkolnyj gave the officers a false name and was ultimately convicted for the theft and sentenced to probation.
On November 2018, Szkolnyj was found to be residing in the Deschutes National Forest. U.S. Forest Service law enforcement officers advised Szkonyj that he could not reside on public land and must immediately vacate the forest. The officers discovered that Szkonyj was still not registered as a sex offender and referred the matter to the U.S. Marshals Service and U.S. Attorney’s Office for prosecution.
The U.S. Marshals Service investigation determined that by January 2019, Szkolnyj was staying in Hood River, Oregon and likely heading toward Portland. The Marshals worked closely with several local law enforcement agencies along the Interstate 84 corridor and in the Portland Metropolitan area to locate and track Szkolnyj. Szkolnyj was arrested by Hillsboro, Oregon police officers on February 23, 2019. At the time of his arrest, Szkolnyj had been in at least five Oregon counties over an 8-month period while failing to register as a sex offender.
On September 5, 2019, Szkolnyj pleaded guilty to one count of failing to register as a sex offender.
This case was investigated by the U.S. Forest Service and the U.S. Marshals Service with assistance from the Hillsboro and Hood River Police Departments. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Nine Defendants Indicted for Trafficking Heroin and Methamphetamine in San Joaquin CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment today against nine defendants, charging them with various drug and firearms offenses, U.S. Attorney McGregor W. Scott announced.
The defendants are:
Jose Encarnacion Mayo Rodriguez, 32, of Lathrop;
Sylvia Zambrano, 56, of Lathrop;
Yesenia Lopez, 38, of Lathrop;
Maria Luisa Escamilla-Lopez, 39, of Stockton;
Juan Chavarria, 19, of Stockton;
Juan Ramon Lopez, 39, of Stockton;
Nereyda Alvarez, 32, of Stockton;
Phillip Allen Bailey, 48, of Stockton; and
Charles James Billingsley Jr., 51, of Stockton.
According to court records, Mayo led a drug trafficking organization in San Joaquin County that included several family members and associates. Mayo and his co-defendants met with an undercover agent five times between March and Oct. 2019 and sold undercover law enforcement officers heroin and methamphetamine. Law enforcement seized 28 pounds of methamphetamine and 2 pounds of heroin from co-defendant Yesenia Lopez during a traffic stop. On Dec. 5, agents executed search warrants at eight locations, which resulted in the seizure of over 44 pounds of methamphetamine, 10 pounds of heroin, 2 pounds of cocaine, 10 firearms, and $128,000 in cash.
This case is the product of an investigation by the U.S. Drug Enforcement Administration with assistance from the California Highway Patrol.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug-trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted of the most significant charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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.
Newark Man Sentenced to 10 Years in Prison for Firearms Offense Related to Shooting of 5-Year-Old GirlRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for being convicted of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Jamar Battle, 31, was previously convicted after a three-day trial before U.S. District Judge William J. Martini on one count of being a felon in possession of a firearm and ammunition. The jury deliberated two hours before delivering the guilty verdict. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On the evening of July 4, 2018, Battle was involved in an argument with his girlfriend and was waiting for her outside of her home. After she arrived near her home, Battle fired six shots at the car she had been riding in as it pulled away. He did not hit his intended target, but did hit a 5-year old girl who had been walking with her father after watching a neighborhood fireworks display. The child survived the shooting but suffered a major injury that required immediate medical attention.
Prior to this shooting, Battle had been convicted of six felonies. In 2015, Battle was sentenced to New Jersey State Prison on two firearms offenses and had just been released from prison in May 2018.
In addition to the prison term, Judge Martini sentenced Battle to three years of supervised release.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 2nd, with the investigation leading to today’s sentencing.
The government was represented by Senior Trial Counsel Robert Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
New Haven Man Sentenced to PrisonRead the Press Release
FORT WAYNE – Adonnis Carswell, age 34, of New Haven, Indiana was sentenced before U.S. District Court Judge Holly A. Brady following his conviction after a 4-day jury trial in September 2019, announced U.S. Attorney Kirsch.
Carswell was sentenced to 421 months in prison followed by 3 years of supervised release.
”Today Mr. Carswell received a justified 35 year sentence,” said U.S. Attorney Kirsch. “A sentence like this should send a strong message of deterrence to others who wish to be part of similar activities. My Office and our law enforcement partners will continue to investigate, prosecute and seek lengthy prison sentences for these type of crimes.”
According to evidence presented at trial, in June 2017, a search warrant was executed on a residence in New Haven, Indiana where Carswell lived. During the search agents found numerous firearms (to include a Smith and Wesson pistol, a Scorpion Pistol and a rifle which contained a 100 round drum magazine and 124 rounds of ammunition), over 60 grams of heroin, along with other indicia of drug distribution (packaging, scales, and over $25,000 in cash). A jury found Carswell guilty of maintaining a place for purposes of distributing a controlled substance (cocaine, heroin and marijuana), possessing with intent to distribute less than 100 grams of heroin, possessing a firearm in furtherance of the drug trafficking crime, and being a convicted felon in possession of a firearm as charged in Counts 1-4 of the Indictment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Indiana State Police with the assistance of the New Haven Police Department as well as the Drug Enforcement Administration and Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorneys Anthony Geller and Sarah Nokes.
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New Castle Defendant Now Facing Additional Drug ChargeRead the Press Release
PITTSBURGH, PA - A federal grand jury returned a Superseding Indictment today against a resident of New Castle, Pennsylvania, on charges of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment, returned on Dec. 17, named Zaamar Stevenson, aka Scrap, age 43, as the sole defendant.
According to the Superseding Indictment, on or about November 9, 2015, the defendant conspired to distribute and to possess with intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance, and a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance. In addition, the Superseding Indictment charges the defendant with possessing with intent to distribute both of those drugs on that date.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Butler County District Attorney's Drug Task Force and the Federal Bureau of Investigation conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mt. Vernon Woman Pleads Guilty in Federal Court to Health Care FraudRead the Press Release
United States Attorney Ron Parsons announced that Nancy Tingle, age 53, of Mt. Vernon, South Dakota, appeared before U.S. District Judge Karen E. Schreier on December 16, 2019, and pled guilty to an Information that charged her with Health Care Fraud.
According to court documents, between on or about 2012 and continuing until the fall of 2018, Nancy Tingle knowingly and willfully executed and attempted to execute a scheme and artifice to defraud a health care benefit program to obtain, by means of false and fraudulent pretenses, representations, and promises, property owned by and under the custody and control of a health care benefit program in connection with the delivery of and payment for health care benefits, items, and services. Specifically, Tingle worked as the business office manager at Firesteel Healthcare Community in Mitchell, South Dakota. At times relevant to this case, Tingle defrauded Firesteel Healthcare Community of funds and monies, and in doing so, Tingle manipulated Medicaid funds intended for Firesteel Healthcare Community. Tingle knew that she was not authorized to receive the funds and monies of Firesteel Healthcare Community and that she used the fraudulently obtained funds on personal items and personal expenditures. The loss amount attributable to Tingle’s fraudulent conduct exceeded $450,000. She also failed to pay taxes on the taxable income that she obtained through fraud, resulting in over $100,000 of back taxes.
The investigation was conducted by the U.S. Department of Health and Human Services – Office of the Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Jeremy Jehangiri.
A presentence investigation was ordered and a sentencing date of March 9, 2020, has been set. The defendant was released on bond pending sentencing.
Monongalia County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Derrick Morris, of Morgantown, West Virginia, was sentenced today to 60 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Morris, age 32, pled guilty to one count of “Use of a Firearm During and in Relation to a Drug Offense” in September 2019. Morris, who is prohibited from having a firearm because of a previous conviction, is admitted to having a .45 caliber semi-automatic pistol during a drug offense in Monongalia County in November 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Miramar Man Sentenced to Five Years for Participating in $1.5 Million Apple Pay Fraud ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Laurent Pierre-Louis (31, Miramar) to five years in federal prison for conspiracy to commit wire fraud and aggravated identity theft. Pierre-Louis had pleaded guilty on April 10, 2019.
According to court documents, Pierre-Louis and others fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay app on their iPhones. Then, using their iPhones, Pierre-Louis and his co-conspirators made purchases using their victims’ credit card accounts, without having to present actual credit cards to retailers. Pierre-Louis, alone, was linked to over 1,800 fraudulent credit card transactions. Collectively, the conspirators made more than $1.5 million in fraudulent purchases.
Pierre-Louis’s co-defendants were previously sentenced as follows - Johnny Max Wesley (24, Miami) to 48 months in federal prison; Daniel Butler (30, North Miami) to 54 months’ imprisonment; and Rachel Bishop (27, Miami) to 12 months’ probation, to be served while on home detention.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Minnesota Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Saint Cloud, Minnesota, man has been indicted by a federal grand jury for Production of Child Pornography, Transfer of Obscene Material to a Minor, Travel with Intent to Engage in Illicit Sexual Conduct with a Minor, and Attempted Enticement of a Minor Using the Internet.
Nathan Paul Grondahl, age 24, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, life of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 19, 2019, Grondahl knowingly persuaded a minor to engage in sexually explicit conduct for the purpose of producing visual depictions, knowing such depictions would be transported in interstate or foreign commerce, or mailed, and would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by a computer. Grondahl also used a cellular telephone to transfer and attempt to transfer obscene materials to a minor, who had not attained the age of 16.
The Indictment also alleges that on November 22, 2019, Grondahl knowingly traveled to engage in sexual conduct with the same minor. Grondahl again used his cellular telephone to attempt to knowingly persuade that minor to engage in sexual activity.
The charges are merely accusation and Grondahl is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Grondahl was released on bond pending trial. A trial date has not been set.
Mid-Wilshire Cancer Doctor and His Medical Office Agree to Pay over $3 Million to Settle Claims They Defrauded Medicare and Medi-CalRead the Press Release
LOS ANGELES – The Department of Justice announced today that Nassir Medical Corp. and its owner, Dr. Youram Nassir, have agreed to pay the United States and California $3,356,565 to settle False Claims Act allegations that they defrauded public health care programs by billing for oncology drugs and services that were not actually provided to patients.
Nassir Medical Corp., which does business as Cancer Care Institute, is a hematology and oncology practice based in in the Mid-Wilshire area of the City of Los Angeles. This medical office specializes in treating cancer patients and such treatment often requires physicians to prescribe, dispense, infuse, and administer a variety of oncology drugs. Medicare and Medi-Cal reimburse physicians both for the cost of drugs themselves and for the cost of infusing and administering those drugs to patients.
Between January 2010 and December 2013, Nassir Medical Corp. and Nassir allegedly violated the False Claims Act by submitting bogus claims to Medicare and Medi-Cal, according to this case’s settlement agreement. The defendants allegedly billed public health programs for drugs that were not actually purchased, dispensed, or administered, and for infusion services that were not actually provided. The defendants have agreed to pay $2,377,675.51 to the United States and $978,907.49 to California.
Nassir Medical Corp. and Nassir also have entered into an integrity agreement with the United States Department of Health and Human Services, Office of Inspector General.
This settlement resolves allegations originally brought in a lawsuit filed in 2016 by Kenneth Bryan, a retired health care consultant and administrator, under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. Mr. Bryan will receive more than $475,000 from the federal government as his share of the settlement amount.
Assistant United States Attorney Ross M. Cuff of the Civil Fraud Section represented the United States in this matter, which was investigated by agents from the United States Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States, et al., ex rel. Bryan v. Nassir Medical Corp., et al., 16-cv-2289-JAK (C.D. Cal.). The claims resolved by the settlement are allegations only. There has been no determination of liability.
Member of Syndicato de Nuevo Mexico prison gang faces federal charges of racketeering and firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Jody Rufino Martinez, 40, of Truchas, New Mexico appeared in federal court in Albuquerque yesterday for arraignment on a superseding indictment charging him with racketeering and being a felon in possession of a firearm.
A grand jury returned the superseding indictment charging these offenses on Dec. 11, 2019. A grand jury previously indicted Martinez on Oct. 16, 2019, for the firearm offense only. According to the superseding indictment, Martinez was a member of the Syndicato de Nuevo Mexico gang from 1998 through June 7, 2019. SNM is a powerful and violent prison gang formed soon after a deadly riot at the Penitentiary of New Mexico in 1980. SNM has allegedly controlled drug distribution and other illegal activities within the New Mexico prison system and engaged in street-level narcotics trafficking.
The superseding indictment accuses Martinez of racketeering conspiracy for conducting affairs of the SNM gang as a criminal enterprise through a pattern of criminal activity. This activity allegedly included beating a corrections officer on Oct. 31, 1999, and shooting a rival and intimidating a witness on Oct. 24, 2018.
Martinez is currently in custody awaiting trial on the superseding indictment. He faces up to 20 years in prison for racketeering and up to 10 years in prison for being a felon in possession of a firearm. An indictment is only an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The FBI investigated this case with the New Mexico Corrections Department and the New Mexico State Police. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case.
Matthews, N.C. Man Sentenced to 10 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – Gino Aristoteles Costa, 43, of Matthews, N.C. was sentenced late yesterday to 121 months in prison for transportation of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also ordered Costa to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in November 2017, Costa was using a peer-to-peer network to access and transport multiple files containing child pornography. HSI agents were able to successfully download multiple files of child pornography from Costa during this time period. During a subsequent search of Costa’s residence, law enforcement seized Costa’s computer. Costa admitted he downloaded child pornography videos for several months, some depicting the sexual abuse of children as young as toddlers.
Costa pleaded guilty on July 8, 2019, to transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked HSI for conducting the investigation. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s 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.
Man from Albuquerque sentenced to more than 14 years in prison for robbery and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Anthony Romero, 38, of Albuquerque, New Mexico, was sentenced in federal court in Albuquerque on Dec.16 to more than 14 years (171 months) in prison for interference with interstate commerce by robbery and using, carrying, and discharging a firearm during and in relation to a crime of violence.
Romero pleaded guilty to these offenses on Sept. 3. In his plea agreement, he admitted robbing a pizza restaurant in Albuquerque on May 9, 2017. Romero went to a drive-through window and threatened an employee with a firearm. He fired two shots from a .45 caliber revolver and then entered the restaurant through the window where he forced the employee to empty three cash registers. Romero fled the scene with the money in a leather bag. In Romero’s plea agreement, he also admitted to committing other robberies the same day.
The FBI investigated the case with the Albuquerque Police Department. Special Assistant U.S. Attorney Timothy Trembley prosecuted the case as part of the U.S. Attorney’s Office’s “SAUSA Partnership” with the Bernalillo County District Attorney’s Office, a joint initiative designed to reduce violent crime in Albuquerque.