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Friday 24 January 2025
Repeat Offender Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A registered sex offender has pleaded guilty in federal court in Worcester to child pornography charges.
Corey Bouchard, 34, of Douglas, pleaded guilty to a one-count Information charging him with accessing with intent to view child pornography. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for May 7, 2025 in Worcester. Bouchard was charged by complaint in April 2024.
During a November 2023 search of Bouchard’s home, a cache file was found on Bouchard’s cell phone, which contained approximately 72 videos depicting child pornography. The file names of approximately 56 of those videos matched the file names from media files shared by others to Kik messenger group chats that Bouchard was in. Bouchard admitted to accessing child pornography with the intent to view it.
Bouchard has a prior state conviction for possession of child pornography and is a registered sex offender. The charge of access with intent to view child pornography provides for a sentence of a minimum of 10 years in prison and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000, an assessment of $5,000, pursuant to 18 U.S.C. § 3014, and assessment of up to $17,000, a mandatory special assessment of $100, restation, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Uxbridge and Douglas Police Departments. Assistant U.S. Attorney Kaitlin J. Brown of the Worcester Branch Office is prosecuting 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Porcupine Man Found Guilty of Shooting Deaths of Girlfriend and Unborn BabyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted McKenzie Big Crow, age 20, of Porcupine, South Dakota, of Involuntary Manslaughter, the Unborn Victims of Violence Act, and Possession of an Unregistered Firearm following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on January 23, 2025.
The convictions relating to the shooting deaths each carry a maximum penalty of eight years’ imprisonment and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The firearm conviction carries a maximum penalty of 10 years’ imprisonment and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
A federal grand jury indicted Big Crow in June of 2024 for Second Degree Murder, Unborn Victims of Violence Act, Discharge of a Firearm During the Commission of a Crime of Violence, and Possession of an Unregistered Firearm.
On August 20, 2023, near Porcupine, Big Crow was illegally in possession of a Savage Arms Model 62, semiautomatic rifle. The barrel had been sawed off, and the defendant taped components of an Airsoft rifle to the gun to make it appear like an AK-47. Big Crow claimed he put the rifle in a backpack and that the gun discharged when he bumped the bag against a door. The gunshot struck 19-year-old Ashton Provost in the chest, killing her and her unborn child within minutes. The gun was later found hidden under Big Crow’s bed. On the day of the shooting, Big Crow had drugs in his system including marijuana, cocaine, MDMA, and methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Heather Knox prosecuted the case.
A presentence investigation was ordered, and a sentencing date has been set for April 25, 2025. The defendant was remanded to the custody of the U.S. Marshals Service.
Philadelphia Woman Who Sexually Abused a One-Year-Old Girl, Manufactured and Distributed Child Pornography, Sentenced to 40 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyleeya Williams, 22, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Gerald J. Pappert to 40 years in prison and lifetime supervised release for sexually abusing and exploiting a child in her care and multiple child pornography offenses.
In May of 2023, Williams was charged by indictment with the manufacture and attempted manufacture of child pornography, two counts of distribution of child pornography, and possession of child pornography. She pleaded guilty to all four charges in June of last year.
As part of her guilty plea, Williams admitted that she sexually abused a one-year-old girl in her care, and that she had planned the abuse with another child sex offender with whom she was communicating online. The defendant photographed her molestation of this child and distributed those images of her abuse – which included the child’s face – via the internet. Williams also admitted that she had trafficked thousands of images and videos showing the sexual abuse of dozens of other children, sharing that material with groups of child sex offenders online.
“Tyleeya Williams was entrusted with the care and protection of this little girl, but instead sexually abused and exploited her,” said U.S. Attorney Romero. “The defendant further victimized this child by documenting the abuse and sharing the horrific images with other sex offenders. While Williams’ 40-year sentence can’t reverse the immeasurable harm she’s done, it prevents her from harming anyone else’s child and is a measure of justice for all the innocents whose images she collected and shared. My office and the FBI will never stop working to hold accountable criminals ready and willing to hurt our children.”
“The crimes Tyleeya Williams committed are among the most egregious the FBI investigates,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Even in the face of such horrific crimes, our office remains unwavering in our pursuit of justice against those who abuse and exploit our most vulnerable.”
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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 projectsafechildhood.gov.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Philadelphia Man Sentenced to Three Years in Prison for House Burglary on the Choctaw Indian ReservationRead the Press Release
Jackson, MS – A Philadelphia man was sentenced to three years in federal prison for burglarizing a home in the Tucker community of the Mississippi Band of Choctaw Indians Reservation.
According to court documents, Sherente Tubby, 23, burglarized the home of a tribal member in December of 2021. Tubby was indicted by a federal grand jury in March of 2022, and pled guilty in September of 2024. He was sentenced on January 14, 2025.
Acting U.S. Attorney Patrick Lemon and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.
This case was brought as part of Project Safe Neighborhood (PSN), a nationwide initiative that was launched in 2001 and works to reduce violent crime and gun violence. It’s a collaboration between federal, state, local, tribal, and territorial law enforcement, prosecutors, and community leaders. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. For more information about Project Safe Neighborhood, please visit www.psn.gov.
Pfizer agrees to pay nearly $60 million to resolve false claims allegations relating to improper physician payments by subsidiaryRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Pharmaceutical company Pfizer Inc. (Pfizer), on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), has agreed to pay $59,746,277 to resolve allegations that, prior to Pfizer’s acquisition of the company, Biohaven knowingly caused the submission of false claims to Medicare and other federal health care programs by paying kickbacks to health care providers to induce prescriptions of Biohaven’s drug Nurtec ODT.
“Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”
“Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence physician prescribing,” said Brett A. Shumate the Acting Assistant Attorney General from the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent pharmaceutical manufacturers from undermining the objectivity of treatment decisions by health care providers.”
The anti kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.
The settlement announced today resolves allegations that from March 1, 2020 through September 30, 2022, Biohaven paid improper remuneration, including in the form of speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute. The United States alleged that Biohaven selected certain health care providers to be part of the Nurtec speaker bureau and provided them paid speaking opportunities with the intent that the speaker honoraria and meals would induce them to prescribe Nurtec ODT. The government further alleged that certain prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and that certain Biohaven speaker programs were attended by individuals with no educational need to attend, such as the speakers’ spouses, family members, or friends, or colleagues from the speakers’ own medical practice. The United States contends that this conduct persisted until October 2022, when Pfizer acquired Biohaven and terminated the Nurtec speaker programs.
“Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with law enforcement partners to ensure that providers and corporations are held accountable if they attempt to bypass laws meant to protect the integrity of federal health care programs.”
“Investigating schemes that undermine the integrity of TRICARE, the health care system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue corporations that attempt to corrupt the TRICARE system.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Patrica Frattasio, a former sales representative at Biohaven. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd., No. 6:21-CV-06539 (W.D.N.Y.). Approximately $50.2 million of the settlement constitutes the federal portion of the recovery and approximately $9.5 million constitutes a recovery for State Medicaid programs. Ms. Frattasio will receive approximately $8.4 million as her share of the federal recovery in this case.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch Fraud Section, and the U.S. Attorney’s Office for the Western District of New York.
Trial Attorney Jessica Sarkis of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York handled the matter.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Pfizer Agrees to Pay Nearly 60M to Resolve False Claims Allegations Relating to Improper Physician Payments by SubsidiaryRead the Press Release
Note: View the settlement here.
Pharmaceutical company Pfizer Inc. (Pfizer), on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), has agreed to pay $59,746,277 to resolve allegations that, prior to Pfizer’s acquisition of the company, Biohaven knowingly caused the submission of false claims to Medicare and other federal health care programs by paying kickbacks to health care providers to induce prescriptions of Biohaven’s drug Nurtec ODT.
“Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence physician prescribing,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent pharmaceutical manufacturers from undermining the objectivity of treatment decisions by health care providers.”
The anti‑kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.
The settlement announced today resolves allegations that from March 1, 2020, through Sept. 30, 2022, Biohaven paid improper remuneration, including in the form of speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute. The United States alleged that Biohaven selected certain health care providers to be part of the Nurtec speaker bureau and provided them paid speaking opportunities with the intent that the speaker honoraria and meals would induce them to prescribe Nurtec ODT. The government further alleged that certain prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and that certain Biohaven speaker programs were attended by individuals with no educational need to attend, such as the speakers’ spouses, family members, or friends, or colleagues from the speakers’ own medical practice. The United States contends that this conduct persisted until October 2022, when Pfizer acquired Biohaven and terminated the Nurtec speaker programs.
“Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”
“Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with law enforcement partners to ensure that providers and corporations are held accountable if they attempt to bypass laws meant to protect the integrity of federal health care programs.”
“Investigating schemes that undermine the integrity of TRICARE, the health care system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue corporations that attempt to corrupt the TRICARE system.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Patrica Frattasio, a former sales representative at Biohaven. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd., No. 6:21-CV-06539 (W.D.N.Y.). Approximately $50.2 million of the settlement constitutes the federal portion of the recovery and approximately $9.5 million constitutes a recovery for State Medicaid programs. Ms. Frattasio will receive approximately $8.4 million as her share of the federal recovery in this case.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch Fraud Section, and the U.S. Attorney’s Office for the Western District of New York.
Trial Attorney Jessica Sarkis of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York handled the matter.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pasco Man Sentenced to over 11 Years for Possessing and Distributing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Anthony Joseph Fresco (68, New Port Richey) to 11 years and 3 months in federal prison for distributing and possessing child sexual abuse material (CSAM). The court also ordered Fresco to forfeit electronic devices used in the commission of the offense, pay $33,000 in restitution to the victims, and register as a sex offender. Fresco entered a guilty plea on October 18, 2024.
According to court documents, in January 2023, Fresco communicated with an undercover FBI agent over the internet. During their conversation, Fresco discussed his sexual desire for minors and distributed two images and one video of CSAM to the undercover agent. After a search of Fresco’s electronic devices, law enforcement discovered that Fresco had distributed images and videos of CSAM in various online groups, as well as possessed hundreds of images and videos of CSAM, including images and videos depicting the sexual abuse of infants and toddlers.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Men Sentenced for Pharmacy Burglaries and Possession of FirearmsRead the Press Release
United States Attorney Susan Lehr announced that Latjor Gony and Jal Thong, both age 29, of Omaha, Nebraska, were sentenced on January 23, 2025, in federal court in Lincoln, Nebraska for burglarizing pharmacies and Gony was also sentenced for possessing firearms by a prohibited person. United Sates District Judge Susan M. Bazis sentenced both Gony and Thong to 100 months’ imprisonment. Gony was also ordered to pay $42,489.01 in restitution to the victims and Thong was ordered to pay $46,929.53 in restitution. There is no parole in the federal system. After Gony’s release from prison, he will begin a 6-year term of supervised release. After Thong’s release from prison, he will begin a 3-year term of supervised release.
Between October 23, 2021, and December 22, 2021, pharmacies in central Nebraska towns were burglarized. Pharmacies in Ravenna, Holdrege, Minden, Alma, and Loup City were victimized. During each burglary, one to three individuals, dressed head to toe in hoodies, sweatpants, gloves, and masks, broke through the front door, entered the pharmacy, stole narcotics, then left within a few minutes. Evidence gathered by law enforcement agencies showed that Gony and Thong were the burglars.
Several different controlled substances were taken during the burglaries, to include hydrocodone, oxycontin, oxycodone HCL, oxycodone acetaminophen, Adderall, hydromorphone, and promethazine syrup. A distribution quantity of narcotics was stolen during the course of these burglaries.
Gony’s and Thongs phone records were examined by law enforcement. The records showed that Gony and Thong communicated with one another as well as with customers about the sale and distribution of controlled substances taken from the pharmacies. Data from the burglars’ iCloud, cell phone, and social media accounts included photos and videos of controlled substances taken from the pharmacies. Investigators found cell tower data showing that Gony’s and Thong’s phones were located in some of the towns at, or around the time that burglaries took place. Investigators also found images of Gony possessing firearms. From these images, investigators identified at least two different firearms, one of which came from a shooting range, and another was retrieved by Omaha Police officers several months later during a traffic stop. Investigators also found images of the burglars consuming controlled substances stolen in the burglaries.
Gony, who was on parole at the time of these crimes, had felony convictions from Nebraska preventing him from possessing firearms. His sentence in this case was enhanced because he had a prior conviction for drug distribution in Nebraska.
“When someone steals from a pharmacy, they’re hurting people who are often already in pain and in need of medicine. This is unconscionable,” Drug Enforcement Administration Omaha Division Special Agent in Charge Steven T. Bell said. “The DEA and our state, local and federal law enforcement partners will work tirelessly to bring down the individuals responsible for causing fear and destruction in our Nebraska communities as noted in today’s sentencing.”
This case was investigated by the Drug Enforcement Administration Omaha Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Omaha Police Department, the Nebraska State Patrol, the Lancaster County Sheriff’s Office, The Kearney Police Department, the Buffalo County Sheriff’s Office, the Harlan County Sheriff’s Office, the Ravenna Police Department, the Holdrege Police Department, and the Sherman County Sheriff’s Office
Oahu Man Sentenced to over 16 Years in Federal Prison for Drug Trafficking and Illegal Gambling ChargesRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Maliu Tauheluhelu, 40, of Honolulu, was sentenced yesterday in federal court by U.S. District Judge Jill A. Otake to 200 months of imprisonment followed by 5 years of supervised release, for conspiring to distribute methamphetamine and cocaine, and conspiring to operate illegal gambling businesses. Tauheluhelu pleaded guilty to two counts of an Indictment on February 15, 2024.
Tauheluhelu admitted to conspiring with his co-defendants, Maafu Pani, Touanga Niu, and Desmond Morris, to possessing with intent to distribute methamphetamine and cocaine between 2020 and 2022. Tauheluhelu obtained multi-pound shipments of methamphetamine and cocaine on Oahu and arranged for its distribution throughout Hawaii, including to Maui.
Tauheluhelu admitted that during this same time period, he, Pani, and Niu also conspired to operate illegal gambling businesses on Oahu and Maui. Tauheluhelu operated multiple illegal gambling businesses on Oahu, including one at 980 Queen Street, and a “VIP room” operating out of Tauheluhelu’s Staxx Sports Bar & Grill location in Waianae.
Pani, Niu, and Morris each pled guilty to federal felonies and were sentenced earlier in 2024 for their roles in the conspiracy. Pani was sentenced to 192 months of imprisonment, Niu was sentenced to 30 months of imprisonment, and Morris was sentenced to 72 months of imprisonment.
“This sentence demonstrates that those who traffic dangerous drugs and operate illegal game rooms will face serious consequences,” stated Acting U.S. Attorney Sorenson. “We are committed to holding criminal enterprises accountable and protecting our community from the destruction caused by drugs like methamphetamine. Illegal game rooms, like those run by Tauheluhelu, are magnets for violence and criminal activity. This outcome is the result of exceptional coordination and effort by our federal, state, and local law enforcement partners.”
“Yesterday’s sentencing reflects years of collaboration among multiple law enforcement agencies to dismantle a dangerous criminal organization,” said FBI Honolulu Special Agent in Charge David Porter. “The FBI—in coordination with our partners across all levels of government—will continue to use every available resource to protect our communities and bring these criminal enterprises to justice.”
“Our collective efforts send a clear and decisive message: criminal enterprises that exploit and endanger our communities should think twice, as there is zero tolerance for such actions,” said Maui Chief of Police John Pelletier. “We are deeply grateful to our federal partners—FBI Honolulu and the DEA—and to the dedicated MPD officers and personnel who worked tirelessly to bring this operation to a successful conclusion. This achievement was made possible by the unwavering commitment, shared resources, and intelligence of all the involved agencies, reaffirming our dedication to keeping our communities safe for residents and visitors.”
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation and Task Force Officers from the Maui Police Department, with assistance from the Maui Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Drug Enforcement Administration.
Assistant U.S. Attorney Margaret Nammar prosecuted the case.
Midlevel leader of drug distribution ring sentenced to 12 years in prison for distribution of fentanyl and methamphetamineRead the Press Release
Tacoma – A 46-year-old Spanaway, Washington man was sentenced today in U.S. District Court in Tacoma to 12 years in prison for his leadership role in a drug distribution ring selling fentanyl and methamphetamine in the Puget Sound region, announced U.S. Attorney Tessa M. Gorman. Sean Michael Moinette has been in custody since March 2023, in connection with the arrest of over two dozen conspirators, including some with ties to an Aryan prison gangs. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “the impact [of drug trafficking] on our community is almost immeasurable.”
“This defendant was deeply involved in distributing drugs, arranging couriers, and seeking various sources of supply. But when confronted with the information that his fentanyl was too strong and causing overdoses, he did not skip a beat and continued to scheme about moving his poison in our community,” said U.S. Attorney Gorman.
According to records filed in the case, Moinette was identified as a mid-level manager of a drug distribution cell tied to the Aryan Family and Omerta prison gangs. A wiretap investigation in summer of 2022 revealed that Moinette was buying large quantities of methamphetamine, fentanyl powder, and fentanyl-laced pills multiple times per week. Moinette continued to distribute large quantities of fentanyl powder even after discussions with his supplier that their customers were “dropping like flies.”
In other wiretap calls, he discussed using women as “live shipping containers” to transport fentanyl out of state. In sentencing Moinette, Judge Estudillo said, “Talking about using mules and transportation of drugs through airplanes up to Alaska . . . It’s hard to believe that’s just talk.”
When a drug redistributor was stopped and her car impounded, Moinette was heard on the wire scheming to break into the police impound yard to try to get the drugs out of the vehicle. The break-in did not occur.
Law enforcement arrested members of the drug distribution conspiracy on March 22, 2023, in a coordinated takedown involving ten swat teams and more than 350 law enforcement officers. On that day alone officers seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Those seizures are in addition to the estimated 223 pounds of methamphetamine, 830,000 fentanyl pills, multiple-pound quantities of fentanyl powder, cocaine, heroin, and marijuana, $338,000 of suspected drug proceeds, and 48 firearms law enforcement seized from members of the conspiracy during the two-year investigation.
Asking for a 13-year prison sentence, prosecutors wrote to the court that Moinette “continued to distribute fentanyl despite knowing that his fentanyl was having deadly consequences, and he forced his mules to transport this deadly substance using suppositories through the omni-present threat of violence that led one of his couriers to immediately respond “I know” when he threatened to stab her.”
Moinette is the eighth member of the drug conspiracy to be sentenced. Some defendants have received prison sentences of as much at 13 years in prison. Less culpable defendants have been sentenced to 14-50 months in prison. Drug ringleader Jesse James Bailey pleaded guilty last November and is scheduled for sentencing on February 28, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Max Shiner, Zach Dillon, and Jehiel Baer.
Miami-Dade County Woman Pleads Guilty to Providing Contraband to A Coleman PrisonerRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Janai Chanel Stephens (38, Opa Locka) entered guilty pleas to an indictment charging her with making a materially false statement or representation to a federal agency and providing contraband to a federal prisoner. Stephens faces up to five years in federal prison. A sentencing date has not yet been scheduled. A federal grand jury indicted Stephens on May 28, 2024.
According to court records, on March 10, 2024, Stephens entered the Coleman Federal Correctional Complex in Sumter County with a bag containing tobacco cigarettes that she intended to give to a federal inmate. Federal inmates are prohibited from possessing tobacco in prisons, as it threatens the order, discipline, and security of the prison. When entering the facility, Stephens falsely claimed to a corrections officer that she did not have any tobacco products in her possession. Stephens was then permitted to meet with a federal inmate in a visitation room. During that meeting, surveillance footage showed Stephens throwing the bag with the cigarettes that she had smuggled into the prison to the inmate.
This case is being prosecuted as part of a United States Department of Justice (DOJ) task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons (BOP). The task force was led by the BOP and the DOJ - Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida.
This case was investigated by the BOP and the DEA. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.
Mexican Citizen Sentenced to 10 Months in PrisonRead the Press Release
HAMMOND – Oscar Valdivia-Salas, age 35, a citizen of Mexico and resident of Merrillville, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to a felony charge of Illegal Reentry, announced Acting United States Attorney Tina L. Nommay.
Valdivia-Salas was sentenced to 10 months in prison, 1 year of supervised release and ordered to pay a $100 special assessment.
According to documents in the case, Valdivia-Salas has a previous felony conviction for Illegal Reentry out of the Western District of Missouri and was removed from the United States in 2018.
This case was investigated by Homeland Security Investigations with assistance from U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Emily Morgan.
Maryland Man Convicted of Wire Fraud in Hampshire CountyRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal jury has convicted a Maryland man of four wire fraud charges.
Duane Dixon, Jr., age 35, of Towson, Maryland, was found guilty of conspiracy to commit wire fraud and three counts of wire fraud. The jury heard testimony that as part of a fraud conspiracy an individual impersonating a landowner contacted a realtor in Winchester, Virginia. The imposter claimed to have authority to sell a parcel of real estate located in Hampshire County, West Virginia. Although having no legal rights to the property, the imposter listed the property for sale through the realtor.
As part of the fraud scheme, deposit information for a bank account belonging to, and controlled by Dixon, a co-conspirator of the imposter, was emailed to a real estate closing agent in an attempt to acquire control of the proceeds from the sham transaction. The imposter continued to make contact via email in his attempt to have funds wired to Dixon’s bank account. When subsequently contacted by an undercover employee of the FBI, Dixon repeatedly lied about his relationship with the sender of the attempted wire transaction and his knowledge regarding the transactions. Dixon’s fraudulent statements were made with the intent to complete the sham transaction. The jury determined that the email communications made in furtherance of the scheme constituted separate acts of wire fraud and returned guilty verdicts on three counts of wire fraud count and one count of conspiracy to commit wire fraud.
Dixon faces up to 20 years in federal prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Jarod Douglas and Dan Salem prosecuted the case on behalf of the government.
The Federal Bureau of Investigation investigated the case.
U.S. District Judge Gina M. Groh presided.
Maryland Man Convicted in $20M Insurance Fraud SchemeRead the Press Release
A federal jury convicted a Maryland man yesterday for conspiracy to commit insurance fraud, money laundering, filing false tax returns and identity theft.
According to court documents and evidence presented at trial, James Wilson, of Owings Mills, conspired with others to defraud insurance companies by obtaining over 30 life insurance policies for applicants by mispresenting their health, wealth and existing life insurance coverage. The total death benefits from these policies exceeded $20 million.
Wilson also conspired to defraud individual investors to obtain funds that he then used to pay premiums on fraudulently-obtained life insurance policies. To conceal the fraud, Wilson transferred the fraud through multiple bank accounts, including accounts in the name of trusts. Wilson filed false individual income tax returns for 2018 and 2019, which concealed approximately $5.7 million and $2 million respectively of fraud proceeds.
Wilson is scheduled to be sentenced on May 1. He faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud and money laundering; and a maximum penalty of three years in prison for each count of filing a false tax return. Wilson also faces a maximum penalty of two years in prison for each count of aggravated identity theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Kareem A. Carter of IRS Criminal Investigation (IRS-CI)’s Washington, D.C. Field Office made the announcement.
IRS-CI investigated the case, with assistance from the Maryland Insurance Administration and Maryland Attorney General.
Trial Attorneys Shawn Noud and Richard Kelley of the Tax Division and Assistant U.S. Attorneys Matthew Phelps and Philip Motsay for the District of Maryland are prosecuting the case.
Maryland Man Convicted of Money Laundering Offenses Related to Computer IntrusionsRead the Press Release
NEWARK, N.J. – A Maryland man was convicted yesterday for money laundering offenses related to funds that were obtained through unlawful computer intrusions that targeted a victim’s 401(k) retirement plan, Acting U.S. Attorney Vikas Khanna announced.
Oladapo Sunday Ogunbiyi, 43, of Bowie, Maryland, was convicted of conspiracy to commit money laundering, two counts of money laundering, and two counts of engaging in monetary transactions in property derived from specified unlawful activity. The jury returned the verdict following a three-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court:
Ogunbiyi conspired with others to launder funds obtained through an unlawful computer fraud scheme in which they obtained unauthorized access to a 401k account belonging to the victim. The co-conspirators then added a bank account belonging to another individual to the victim’s 401k account without the victim’s knowledge or authorization. This account was designated as the account to receive withdrawals from the victim’s 401k account. Thereafter, $246,390 was transferred to the bank account belonging to the account that had been added without the victim’s knowledge or consent.
Ogunbiyi’s co-conspirator directed that the fraud proceeds be converted into cashier’s checks, which were provided to Ogunbiyi. Ogunbiyi then deposited the cashier’s checks into business bank accounts under his control and withdrew the funds in a series of ATM and counter withdrawals designed to conceal the source of the money, which he used for personal expenditures.
The counts of money laundering and money laundering conspiracy carry a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The counts of engaging in monetary transactions in property derived from specified unlawful activity carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater. Sentencing is scheduled for July 7, 2025.
Acting U.S. Attorney Khanna credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Lauren Kober of the Organized Crime/Gangs Unit and Peter A. Laserna of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.
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Defense counsel: Jason A. Seidman, Esq., Freehold, New Jersey
Man Sentenced to over 17 Years in Prison for Shooting at Louisville MayorRead the Press Release
Louisville, KY — A Louisville man was sentenced today to 17 years and 6 months in federal prison for firing shots at current Louisville Mayor Craig Greenberg during Greenberg’s 2022 mayoral campaign.
Acting Assistant Attorney General Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to court documents, on February 14, 2022, Quintez Brown, 24, walked into Greenberg’s campaign office and fired multiple shots at Greenberg while he was meeting with four staffers. The staffers were able to close and barricade the door, and Brown was apprehended several blocks from the shooting, carrying the firearm he used in a backpack. As part of his guilty plea, Brown admitted that he acted because Greenberg was running for mayor.
In July 2024, Brown pleaded guilty to interfering with a federally protected activity and using and discharging a firearm in relation with a crime of violence. Brown’s term of imprisonment will be followed by five years of supervised release.
There is no parole in the federal system.
The FBI, ATF, and Louisville Metro Police Department investigated the case.
Assistant U.S. Attorney Amanda Gregory for the Western District of Kentucky and Trial Attorney Alexander Gottfried of the Criminal Division’s Public Integrity Section prosecuted the case. Trial Attorney Barry Disney of the Criminal Division’s Mental Health Litigation Unit and Trial Attorney Jolee Porter of the Criminal Division’s Computer Crime and Intellectual Property Section provided substantial assistance to the prosecution.
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Man Pleads Guilty to Conspiring to Smuggle Pesticides into the United StatesRead the Press Release
SAN DIEGO – Ruben Montes of Calexico, California, pleaded guilty in federal court today to conspiring to smuggle and distribute more than $3 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.
In pleading guilty, the defendant acknowledged that since at least November 2020, he coordinated the smuggling of pesticides and veterinary drugs from Mexico into the United States. Montes also admitted to smuggling the chemicals and drugs into the United States from Mexico himself and distributing them within the United States. The primary pesticides involved were Taktic and Bovitraz, which are not registered with the U.S. Environmental Protection Agency for use in the United States. The smuggled veterinary drugs included Tylocet, Terramicina, Tetragent Ares and Catarrol, which are not approved by the U.S. Food and Drug Administration for use in the United States.
Montes admitted that he and others hid the pesticides and veterinary drugs in storage units in Calexico and retrieved them for distribution throughout the United States.
According to experts at the U.S. Environmental Protection Agency, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees, if it is released into hives, and humans when it ultimately ends up in honey, honeycomb, and beeswax. Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz has been documented in multiple animal species, and include central nervous system depression, decrease in pulse rate, and hypothermia.
“These substances not only threaten the health and safety of our communities but also undermine the integrity of U.S. regulatory safeguards designed to protect consumers and the environment,” said U.S. Attorney Tara McGrath. “Our office is committed to holding accountable those who prioritize profit over public safety."
“The defendant's conduct put consumer's health and the honeybee industry at risk,” said Benjamin Carr, Special Agent in Charge of the EPA’s criminal enforcement program in California. “The pesticides he distributed were smuggled into the United States from Mexico. The illegal use of amitraz puts adulterated honey in the marketplace and contributes to pest resistance threatening honeybee colonies vital for our food production. The defendant in this case made millions of dollars in ill-gotten gains through the illegal sale of this unregistered pesticide.”
“Today's guilty plea is the result of a long-term Homeland Security Investigations (HSI) investigation, worked in coordination with the Environmental Protection Agency (EPA), into an organization that conspired to smuggle Mexican pesticides into the U.S.,” said Shawn Gibson, Special Agent in Charge of HSI in San Diego. “We will continue to work with our law enforcement partners to investigate and bring to justice criminals who introduce substances that threaten the safety of our communities.”
“The FDA regulates animal drugs as part of its mission to protect the public health, which includes ensuring that prescription animal drugs are lawfully obtained, distributed, and dispensed pursuant to a valid prescription from a licensed veterinarian,” said Special Agent in Charge Charles Grinstead, FDA Office of Criminal Investigations, Kansas City Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”
The defendant is scheduled to be sentenced by U.S. District Judge John A. Houston on April 2, 2025, at 10:00 a.m.
This case is being prosecuted by Assistant U.S. Attorney Elizabet Brown from the U.S. Attorney’s Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte from the Environmental Crimes Section, Environment and Natural Resources Division of the U.S. Department of Justice.
DEFENDANT Case Number 23CR2377
Ruben Montes Age: 60 Calexico, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C. Section 371
Maximum Penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Environmental Protection Agency, Criminal Investigations Division
U.S. Food and Drug Administration, Office of Criminal Investigations
California Department of Toxic Substances Control
Madison Man Sentenced to 37 Months in Prison for Conspiracy to Defraud the United StatesRead the Press Release
Jackson, MS – A Madison man was sentenced to 37 months in federal prison for conspiracy to defraud the United States.
According to court documents and statements made in court, Reginald Fullwood, Jr., 59, of Madison, participated in a scheme to pay kickbacks to a marketer in exchange for completed doctors’ orders so that he could cause his durable medical equipment company, Jackson Medical Supply, to bill Medicare and Medicare Advantage plans for orthotic braces that were medically unnecessary and/or ineligible for reimbursement. When Medicare initiated an investigation of Jackson Medical Supply, the defendant opened another entity in the name of a nominee owner and again paid kickbacks to a marketer in exchange for doctors’ orders so that the new entity could continue to bill Medicare and Medicare Advantage plans for orthotic braces. Overall, Fullwood caused these entities to bill Medicare and Medicare Advantage approximately $12,441,625.30 and the entities were reimbursed approximately $6,448,092.61 for durable medical equipment that was medically unnecessary and/or ineligible for reimbursement.
Fullwood pleaded guilty to conspiracy to defraud the United States on August 28, 2024.
Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi, Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation, and Special Agent in Charge Kelly Blackmon of the Department of Health and Human Services Office of Inspector General made the announcement.
The U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation are investigating the case.
The case was prosecuted by Trial Attorney Sara Porter of the Gulf Coast Strike Force and Assistant United States Attorney Kimberly T. Purdie.
Louisiana man to spend nearly two decades in prison for sex trafficking runaway childRead the Press Release
HOUSTON – A 39-year-old resident of Shreveport, Louisiana, has been sentenced for transportation of a child to engage in criminal sexual activity and being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
Isiah Lee Campbell Jr. pleaded guilty July 26, 2024.
Senior U.S. District Judge Sim Lake has now ordered Campbell to serve 235 months in federal prison to be immediately followed by 10 years of supervised release.
During a three-week span in 2019 over the course of several different trips, Campbell drove the then 16-year-old victim from Louisiana to Houston to engage in commercial sex with adult men. Campbell also posted the victim on a website advertising prostitution.
Law enforcement stopped Campbell in Harris County driving a reported stolen vehicle during the early morning hours of June 6, 2019. They found a handgun under Campbell’s seat. The victim was a passenger in the car whom authorities identified as a runaway child from Lousiana.
She described how Campbell threatened to kill her so that she would continue to engage in commercial sex at his direction. Campbell took all the money that the victim earned and also sexually assaulted her several times.
Campbell will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and Precinct 4 Harris County Constable’s Office conducted the investigation with the assistance of the Harris County District Attorney’s Office. Assistant U.S. Attorney Stephanie Bauman prosecuted the case.
Lincoln County Man Convicted of Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Waynesburg, Ky., man Steven Fellmy, was convicted on Thursday, by a federal jury sitting in Lexington, for possession with intent to distribute 50 grams or more of methamphetamine.
According to the evidence at trial, on August 8, 2023, a Simpsonville Police Department Detective relayed an anonymous tip to the Mercer County Sheriff’s Office, which concerned the transport of a large quantity of methamphetamine from Anderson County into Mercer County. As a result, Fellmy was traffic stopped in Mercer County, by a Mercer County Sheriff’s Deputy. At the scene, a Harrodsburg Police Department K9 positively alerted to the presence of narcotics in the vehicle. Law enforcement then searched the vehicle, which led to the recovery of 193.5 grams of 95% pure methamphetamine. On his person, Fellmy also had 9.439 grams of methamphetamine and 22.529 grams of heroin.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; Chief Scott Elder, Harrodsburg Police Department; Chief Thomas Brummer, Simpsonville Police Department; and Sheriff Ernie Kelty, Mercer County Sheriff’s Office, jointly announced the jury’s verdict.
The investigation was conducted by DEA, Harrodsburg Police Department, Simpsonville Police Department, and Mercer County Sheriff’s Office. Assistant U.S. Attorney Brittany Baker is representing the United States in the case.
Fellmy is scheduled to appear for sentencing on April 17, 2025. He faces up to life imprisonment and a mandatory minimum sentence of 15 years imprisonment because he has a prior felony conviction for a crime of violence. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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Law Enforcement Cooperation Between United States and Mexico Leads to Mexican Takedown of Significant Fentanyl TraffickerRead the Press Release
TUCSON, Ariz. – The United States Attorney’s Office for the District of Arizona announced today that extensive bilateral cooperation between the United States and Mexico resulted in Mexico’s Attorney General’s Office, Fiscalía General de la República (FGR), conducting a significant enforcement operation last week in Nogales, Sonora to dismantle a prolific transnational drug trafficking organization operating along the U.S.-Mexico border. The operation resulted in the arrest of two individuals in Mexico including the leader of the organization, Heriberto Jacobo Perez, and another member of the organization, Jesus Bernardo Rodriguez. Mexican authorities also seized four vehicles, two buildings, two firearms currency, a large number of fentanyl pills, and other controlled substances.
Six U.S.-based coordinators and operators with alleged ties to the same drug trafficking organization have been indicted. Rafael Alonso Arriaga, Fernando Garcia-Ibarra, Socorro Rascon, Emmanuel Sotelo-Salazar, Jostan Nathanae Vega-Ochoa, and Rosa Elena Peralta-Marrufo, were indicted by a federal grand jury on drug trafficking charges on July 24, 2024. Sotelo-Salazar was also indicted for the possession and distribution of a foreign pill press to fabricate fake pills. Garcia-Ibarra and Vega-Ochoa remain fugitives. Another member of the organization, Eva Angelina De La Torre, was arrested on November 19, 2024, after she was caught attempting to smuggle fentanyl pills into the United States at the Mariposa Port of Entry in Nogales, Arizona.
“Dismantling transnational crime requires cross-border cooperation,” said United States Attorney Gary Restaino. “This is simply tremendous work by career civil servants with the Department of Justice in coordinating efforts with Mexican prosecutors to take down this criminal organization on both sides of the border.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Drug Enforcement Administration (DEA) - Nogales led the investigation in the United States, working in concert with Homeland Security Investigations – Nogales, the United States Marshals Service, and U.S. Customs and Border Protection. Support by DEA-Mexico City, and FGR’s Agencia de Investigación Criminal was critical in providing coordination between United States and Mexican law enforcement agencies. Through funding support from the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training provided valuable assistance. The United States Attorney’s Office, District of Arizona, Tucson, is prosecuting the seven individuals named above.
CASE NUMBER: CR-24-04681-TUC-JGZ
RELEASE NUMBER: 2025-110_Heriberto Jacobo Perez, et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Kidnapper of Alexandria, VA, Couple Sentenced to 108 Months in Federal PrisonRead the Press Release
WASHINGTON – Robbie Terrell Clark, 27, of Washington D.C., was sentenced today in U.S. District Court to 108 months in federal prison for his role in the September 2022 kidnapping and robbery of a pair of victims in Alexandria, Virginia.
The sentence was announced by U.S. Attorney Edward R. Martin, Jr., for the District of Columbia and FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division.
Clark pleaded guilty on May 21, 2024, before U.S. District Court Judge Amy Berman Jackson, to one count of conspiracy to commit kidnapping. In addition to the 108-month prison-term, Judge Berman Jackson ordered Clark to serve four years of supervised release.
According to court documents, Clark and his co-conspirators stalked their intended victims before kidnapping and robbing them at gunpoint inside their Alexandria, Virginia apartment building. On September 2, 2022, the co-conspirators planted a GPS tracking device on one of the victim’s Mercedes, which they used to monitor the victims’ locations.
On September 3, 2022, the victims attended a family gathering in Maryland. Seizing the opportunity to catch their victims unaware, Clark and his co-conspirators traveled from Washington, D.C. to Virginia in a stolen white Kia and to the victim’s home, where they laid in wait, armed with guns and carrying zip ties. Clark and his co-conspirators were wearing dark clothing, masks, and latex gloves.
When the victims returned home later that night, Clark and his co-conspirators ambushed them in their parking garage at gunpoint, stealing two Audemars Piguet watches worth $120,000, another $63,500 worth of jewelry, other clothing, and the keys to a victim’s Mercedes.
After robbing them, and pistol-whipping them with their guns, Clark and the co-conspirators led the victim couple to one of the victim’s apartments. Inside, the co-conspirators continued to hold the victims at gunpoint and ransacked the residence, demanding money. The co-conspirators were unable to locate any money before a security alarm was triggered and the co-conspirators fled, leaving behind several plastic zip ties.
Clark and his co-conspirators fled the apartment building shortly before 2 a.m. on September 4, 2022, in the stolen white Kia and the victims’ Mercedes and returned to the District. Law enforcement found the stolen Mercedes hours later in Maryland with the GPS tracking device still attached. Following a lengthy investigation, Clark was identified as a participant and arrested on August 16, 2023, in Washington, D.C. He has been held since.
At the time of the incident, Clark had a felony conviction in Maryland for possessing a handgun in a vehicle.
Clark’s co-conspirator, Tyree McCombs, pleaded guilty on August 14, 2024, to conspiracy to interfere with interstate commerce by robbery in connection with this offense as well as to a separate kidnapping committed two months later. McCombs is awaiting sentencing.
This case was investigated by FBI Washington Field Office's Violent Crimes Task Force. The Fairfax County Police Department assisted with the investigation. The matter is being prosecuted by Assistant U.S. Attorneys Meredith Mayer-Dempsey and Charles R. Jones for the District of Columbia.
22cr377
Kapolei Woman Indicted for Scheme to Defraud Unemployment Insurance and Pandemic Unemployment Assistance ProgramsRead the Press Release
HONOLULU, Hawaii – Acting United States Attorney Kenneth M. Sorenson announced that on January 23, 2025, a federal grand jury returned a twelve-count indictment against Phoebe Trinh, also known as Phuong Trinh Ngoc Vo, 31, of Kapolei, Hawaii, charging Trinh with nine counts of wire fraud and three counts of aggravated identity theft in connection with fraudulent claims for unemployment insurance and pandemic unemployment assistance.
The charges in the indictment pertain to both the unemployment insurance and Pandemic Unemployment Assistance (PUA) programs. In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act created the PUA program to provide emergency unemployment payments to certain workers whose livelihoods were impacted by the COVID-19 pandemic, but who were ineligible for traditional state unemployment insurance benefits.
The indictment alleges that Trinh submitted a false claim for unemployment insurance benefits to the Hawaii Department of Industrial and Labor Relations (DLIR) using its website, and that she repeatedly falsely certified under penalty of law that she was unemployed and not receiving income, despite knowing that her certifications were false, in order to receive benefit payments that she was not entitled to receive.
The indictment further alleges that Trinh also submitted a claim to the Hawaii DLIR for PUA benefits on behalf of another individual, using that individual’s personal identifiable information, including name and social security number, without that individual’s knowledge and consent, in order to obtain additional benefit payments to which she was not entitled. Trinh then allegedly repeatedly certified to Hawaii DLIR that the individual remained eligible for PUA benefit payments in order to receive the payments, without the individual’s knowledge and consent. The indictment alleges that Trinh directed Hawaii DLIR to transmit the benefit payments that were intended for the individual to her own bank account.
According to the indictment, Trinh fraudulently obtained at least approximately $36,265 in unemployment insurance and PUA unemployment benefits to which she was not entitled.
Each of the wire fraud counts carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Each of the aggravated identity theft counts carries a sentence of two years in prison. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
This case is being investigated by the U.S. Department of Labor Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
KC Man Pleads Guilty to Conspiracy to Traffic Machine GunsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man has been sentenced in federal court for his role in a conspiracy to distribute fentanyl.
Alonso Alfredo Nunez, also known as “Bullet,” 20, was sentenced by U.S. District Judge Greg Kays on Thursday, Jan. 23, to 15 years in federal prison without parole.
On April 10, 2024, Nunez pleaded guilty to participating in a conspiracy to distribute fentanyl. Nunez admitted that he and co-defendant Jaloany Garcia-Medina, also known as “J. Lo,” 22, of Kansas City, Kan., working together, sold fentanyl on multiple occasions to a confidential informant working for the Jackson County Drug Task Force.
Nunez and Garcia-Medina sold approximately 1,000 fentanyl pills to a confidential informant on each of six separate occasions during the six months of the conspiracy from July 25 to Dec. 18, 2022. A different FBI confidential source reported that Nunez was supplied 200 to 500 fentanyl-laced pills weekly from July 2022 through December 2022.
Garcia-Medina has pleaded guilty to her role in the drug-trafficking conspiracy and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Jackson County Drug Task Force and the FBI.
KC Man Pleads Guilty to Conspiracy to Traffic Machine GunsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has pleaded guilty in federal court to his role in a conspiracy to traffic machine guns.
Sheron Lamont Manning, 21, pleaded guilty before U.S. Chief District Judge Beth Phillips on Thursday, Jan. 23, to conspiracy to traffic firearms and to illegally trafficking a firearm that had been converted into a machine gun.
By pleading guilty today, Manning admitted that he participated in a conspiracy that illegally distributed at least 22 firearms to other persons from May 24, 2022, to April 20, 2023. Manning also admitted that he sold a Glock .45-caliber pistol that had been converted into a machine gun to a confidential informant of the Bureau of Alcohol, Tobacco, Firearms and Explosives for $1,200 on Nov. 18, 2022. During the transaction, Manning stated he could get the informant more fully automatic firearms.
Manning also admitted to additional criminal conduct, including four instances in which he illegally sold firearms to a confidential informant who was a felon and prohibited from possessing a firearm. Those sales included an AR-15 style, multi-caliber pistol with an obliterated serial number that had been altered into a machine gun, two Glock .40-caliber pistols that had been altered into machine guns, and an AR-15 style, multi-caliber pistol.
Under federal statutes, Manning is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
James C. Thompson Sentenced to Twenty Years for Transportation of A Minor in Interstate Commerce with the Intent to Engage in Sexual ActivityRead the Press Release
CHATTANOOGA, Tenn. – On January 24, 2025, James C. Thompson, 72, formerly of Lookout Mountain, Tennessee, was sentenced to 240 months by the Honorable Travis R. McDonough, District Court Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga, Tennessee. Thompson was also ordered to pay a $250,000 fine and to serve three years on supervised release. In addition, Thompson will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
As part of the plea agreement filed with the court, Thompson agreed to plead guilty to an information charging him with four counts of transportation of a minor in interstate commerce with the intent to engage in sexual activity in violation of 18 U.S.C. § 2423(a).
According to court filed documents, in 2000, Thompson traveled on separate occasions with three different boys and sexually molested them. Thompson was 48 years old at the time and the young boys were less than 18 years old. Thompson drove them from the community where they lived, Lookout Mountain, Tennessee, to different out-of-state locations. When Thompson’s conduct was discovered, an agent with the Federal Bureau of Investigation confronted Thompson and he confessed.
U.S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico, made the announcement.
The criminal indictment was the result of an investigation by the Jackson County Alabama Sheriff’s Office and the FBI. This investigation was led by FBI Special Agent Samuel Moore.
Assistant United States Attorney James T. Brooks and Special Assistant United States Attorney Charlie Minor represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 21 was:
Jared Cordell Stewart, 53, of Crow Agency, on charges of abusive sexual contact of a minor and sexual abuse of a minor. If convicted of the most serious crime, Stewart faces a maximum of life in prison, a $250,000 fine and at least five years of supervised release. Stewart was detained pending further proceedings. The FBI investigated the case. PACER case reference. 25-10.
Shawn Leon Anderson, 54, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and fentanyl and possession with intent to distribute meth and fentanyl. If convicted of the most serious crime, Anderson faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release. Anderson was detained pending further proceedings. The Drug Enforcement Administration and Montana Division of Criminal Investigation conducted the investigation. PACER case reference. 24-38.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 21 was:
Stephen Joe Boardner, 61, of Columbia Falls, on charges of conspiracy to distribute meth and distribution of meth. If convicted of the most serious crime, Boardner faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Boardner was detained pending further proceedings. The Northwest Drug Task Force conducted the investigation. PACER case reference. 22-36.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband Pleads Guilty to Gunning Down Wife in D.C. Parking LotRead the Press Release
WASHINGTON – Wyatt Swan, 48, of Washington, D.C., pleaded guilty today to second-degree murder while armed for the 2024 murder of Teresa Francisco, 52, in Northeast Washington, announced U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
The Honorable Jason Park of the D.C. Superior Court scheduled sentencing for March 21, 2025.
According to the government’s evidence, at approximately 1:00 p.m., on October 1, 2024, the defendant shot and killed his wife, Teresa Francisco, in and around their apartment complex in the 900 block of Eastern Avenue, Northeast. The defendant first shot his wife with a pistol in their shared apartment. When she ran for her life and hid in a nearby work van, the defendant pursued her and fired numerous shots into the van killing her. The defendant then fled the scene evading police.
The defendant was arrested on October 2, 2024, with the assistance of the Prince George's County Police Department. The defendant has remained in custody since his arrest.
In announcing the plea, U.S. Attorney Edward Martin Jr. and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department and expressed appreciation for the assistance provided by the Prince George's County Police Department. This case was investigated and prosecuted by Assistant U.S. Attorney Gregory Evans.
Hudson County Man Charged with Defrauding Elderly Victim Out of More Than $880,000Read the Press Release
NEWARK, NJ. – A New Jersey man was arrested today and charged with engaging in a scheme to defraud an elderly victim investor out of out of more than $880,000, after entrusting him to invest her money on her behalf, Acting U.S. Attorney Vikas Khanna announced today.
Antonio Petrosino, a/k/a Anthony Petrosino, 59, of Union City, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in the case and statements made in court:
Between March 2018 and March 2024, Petrosino fraudulently induced the victim investor to transfer approximately $916,000 to Petrosino based on his misrepresentations that he would invest those funds in brokerage accounts and other investment products for the benefit of the victim investor. To perpetuate his fraud, Petrosino provided the victim investor with falsified investment statements that purported to show that she had hundreds of thousands of dollars deposited in various investment accounts in her name. Petrosino also provided the victim investor with payments in the approximate range of $4000-$8000 that he claimed was the interest that the victim investor had earned on her investments.
In reality, Petrosino failed to invest the victim investor’s funds for her benefit as promised. Instead, he misappropriated the money to pay for his personal expenses, including gambling, credit card payments, and rent on his luxury apartment unit. Petrosino also caused the transfer of the victim investor’s funds without her knowledge or consent, including transfers directly from the victim investor’s bank account to Petrosino’s landlord. Additionally, Petrosino told the victim investor he would assist her with preparing her tax returns and told her to send him approximately $40,000 that he claimed she owed in taxes, which he misappropriated for his personal benefit. In total, Petrosino stole more than approximately $888,000 from the victim investor.
The wire fraud charge carries a maximum penalty of 20 years in prison. The money laundering charge carries a maximum penalty of 10 years in prison. Both counts carry a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Vikas Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; special agents of the Board of Governors of the Federal Reserve System - Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; and the Wyckoff Police Department, under the direction of Chief David V. Murphy, with the investigation leading to today’s arrest, and thanked the Union City Police Department, under the direction of Chief Anthony Facchini, for its assistance with the arrest.
The government is represented by Assistant U.S. Attorney Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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antonio_petrosino.complaint.pdfHonduran National Extradited to the United States for Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed today charging Honduran national Abner Estrada Cruz, 25, with conspiracy to distribute at least 400 grams fentanyl and seven counts of distributing fentanyl, Acting U.S. Attorney Michele Beckwith announced.
Estrada Cruz was extradited from Honduras to the United States to face the charges against him.
The indictment stems from a two-year DEA-led multi-agency investigation into a Honduran fentanyl drug trafficking ring operating out of Honduras, San Francisco, California, and Portland, Oregon. During the course of the investigation, DEA seized more than 16 pounds of fentanyl powder trafficked into the Eastern District of California from Estrada Cruz’s co-conspirators. Those co-conspirators – Yahir Alexander Arteaga Cruz, Carlos Samir Colindrez-Erazo, and Aronis Jose Hernandez Aguilar – have been charged in the same conspiracy by separate indictment in the Eastern District of California in Sacramento (2:24-cr-0246-DAD). Several additional members of the Drug Trafficking Organization were indicted in the District of Oregon in Portland.
Estrada Cruz acted as the operations manager of the organization, taking orders, arranging deliveries, and helping to run the organization from San Francisco, Portland, and Honduras. He was arrested in Honduras and surrendered to the United States following extradition proceedings.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from the California Department of Justice Bureau of Investigation Fentanyl Task Force, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Honduras to secure the arrest and extradition of Estrada Cruz.
If convicted of the conspiracy to distribute and possess with intent to distribute fentanyl, Estrada Cruz faces a maximum statutory penalty of life in prison and a $10 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The specific mission of the OCDETF Sacramento Strike Force is to identify, investigate, and prosecute the most significant criminal organizations operating in the Eastern District of California. OCDETF Sacramento Strike Force is composed of agents and officers from DEA, FBI, HSI, IRS-CI, USMS, ATF, USPIS, BLM, USFS, the Sacramento Sheriff’s Office, the California National Guard, the California Department of Corrections and Rehabilitation, the California Department of Justice, and the Central Valley California HIDTA.
Grand Jury for the District of NebraskaRead the Press Release
United States Attorney Susan Lehr announced the federal Grand Jury for the District of Nebraska has returned six (6) unsealed Indictments charging eight (6) defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
Brett A. Richardson, age 55, of Lincoln, Nebraska, is charged in a ten-count Indictment with failure to pay over to the Internal Revenue Service payroll taxes throughout calendar years 2018 to 2021. The maximum possible penalty if convicted is up to 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment on all counts.
Walter James Hulit, age 37, of Walthill, Nebraska, is charged with failure to register as a sex offender from at least on or about October 2024, and continuing to on or about November 18, 2024. The maximum possible penalty if convicted is up to 10 years’ imprisonment, a $250,000 fine, not less than 5 years and up to life term of supervised release, and a $100 special assessment.
Jal Chuar, age 29, of Omaha, Nebraska is charged with bank robbery on or about December 4, 2024. The maximum possible penalty if convicted is up to 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
Joshua M. Meyer, age 44, of Omaha, Nebraska, is charged in a two-count Indictment. Count 1 charges Meyer with distribution of child pornography with a prior conviction beginning on or about June 27, 2023, and continuing until on or about July 17, 2023. The maximum possible penalty if convicted is not less than 15 years’ and up to 40 years’ imprisonment, a $250,000 fine, not less than 5 years and up to life term of supervised release, and a $100 special assessment. Count 2 charges Meyer with distribution of child pornography with a prior conviction beginning on or about June 1, 2024, and continuing until on or about August 7, 2024. The maximum possible penalty if convicted is not less than 15 years’ and up to 40 years’ imprisonment, a $250,000 fine, not less than 5 years and up to life term of supervised release, and a $100 special assessment.
Doob Tut, age 31, of Omaha, Nebraska, is charged in a five-count Indictment. Count 1 charges Tut with conspiracy to distribute 10 grams or more of fentanyl beginning on or about October 18, 2023, and continuing to on or about October 16, 2024. The maximum possible penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than 4 years and up to life term of supervised release, and a $100 special assessment. Count 2 charges Tut with distribution of 10 grams or more of fentanyl on or about November 21, 2023. The maximum possible penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than 4 years and up to life term of supervised release, and a $100 special assessment. Counts 3 charges Tut with distribution of 10 grams or more of fentanyl on or about June 26, 2024. The maximum possible penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than 4 years and up to life term of supervised release, and a $100 special assessment. Count 4 charges Tut with being a felon in possession of a firearm on or about November 1, 2023. The maximum possible penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than 4 years and up to life term of supervised release, and a $100 special assessment. Count 5 charges Tut with being a felon in possession of a firearm on or about November 2, 2023. The maximum possible penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than 4 years and up to life term of supervised release, and a $100 special assessment.
Rodolfo Urieta-Barba, age 33, of Bellevue, Nebraska, is charged in a two-count Indictment. Count 1 charges Urieta-Barba with conspiracy to distribute and possession with the intent to distribute 50 grams or more of methamphetamine beginning on or about November 13, 2024, and continuing to on or about November 21, 2024. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than 5 years and up to life term of supervised release, and a $100 special assessment. Count 2 charges Urieta-Barba with possession with the intent to distribute 50 grams or more of methamphetamine on or about November 21, 2024. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than 5 years and up to life term of supervised release, and a $100 special assessment.
Contact Supervisory Assistant U.S. Attorney Lecia E. Wright at 402-661-3700 for further information.
Goshen Man Found Guilty After 3-Day Jury TrialRead the Press Release
SOUTH BEND – Late yesterday, Orlando Rodriguez-Roman, 42 years old, of Goshen, Indiana, was convicted of three felony counts after a three-day jury trial before United States District Court Judge Damon R. Leichty, announced Acting United States Attorney Tina L. Nommay.
Rodriguez-Roman was found guilty of attempted possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute 500 grams or more of cocaine, and unlawful possession of ammunition by a convicted felon.
Sentencing is scheduled for April 29, 2025.
This case was investigated by the United States Postal Inspection Service including the USPS Forensic Laboratory Services, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Elkhart County Intelligence and Covert Enforcement Unit and the Elkhart County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorneys Lydia T. Lucius and Katelan McKenzie Doyle.
Glen Burnie Man Sentenced to Federal Prison in Connection with Multi-State Dogfighting ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Mario Damon Flythe, 50, of Glen Burnie, Maryland, to six months in federal prison and six months of home detention – followed by three years of supervised release; a $10,000 fine, and an additional $2,800 in a forfeiture money judgment, for his involvement in a multi-state dogfighting conspiracy.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Sean Ryan, Federal Bureau of Investigation, Washington Field Office- Criminal and Cyber Division; Special Agent in Charge Charmeka Parker, U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General; Defense Criminal Investigative Service – Mid-Atlantic Field Office; Clinton Fuchs, U.S. Marshal for Maryland; and Amal E. Awad, Anne Arundel County Police Chief.
Flythe is affiliated with the same dogfighting enterprise as co-defendant Frederick Douglass Moorfield, Jr. The defendant also operated a kennel under the name “Razor Sharp Kennels,” and used his home to keep, train, and breed dogs for dogfighting for several years.
A review of Flythe’s cellphone records uncovered numerous message exchanges connected to dogfighting — primarily over the instant-messaging applications WhatsApp and Telegram — with members of a group known as the “DMV Board.” In addition to arranging dog fights and wagers, Flythe and the DMV Board discussed the breeding and training of fighting dogs, procuring supplies for the maintenance and feeding of fighting dogs, and law enforcement criminally prosecuting dogfighters. Additionally, Flythe and others discussed indictments of other members of the DMV Board and speculated about the identity of a potential “snitch.”
Flythe’s instant messages also revealed several exchanges arranging or “hooking” dogfights. During these conversations, Flythe identified the weight and sex of the dog he wanted to sponsor in a fight. Other dogfighters then proposed a fight against their own dog or matched Flythe with another contact who had a dog in the same weight class. The dogfighters then agreed on wagers and set a date for the fight, usually six to eight weeks after arranging the match. In addition to stating the winner’s fee for each fight, dogfighters agreed on forfeit or “fit” payments if a dogfighter backed out prior to the fight.
After hooking a fight, Flythe trained his dogs in a process known as a “keep.” Flythe’s typical keep schedule for a dog involved physical training — using treadmills, weighted collars, and other accessories — a diet plan, and steroids. Flythe obtained steroids and other veterinary drugs through various contacts in his dogfighting network instead of obtaining legitimate veterinary prescriptions.
When Flythe sponsored a dog, the fight only ended after a dog died or if the owner forfeited the match by the dog quitting the fight or the owner picking up the dog. Several times between 2019 and 2023, Flythe received monetary payments through CashApp in connection with dogfighting activities. Flythe also sent money to dogfighting contacts related to the dogfighting enterprise.
On September 6, 2023, during a search of Flythe’s home, investigators recovered a total of seven pit-bull type dogs from the premises. Authorities found four dogs chained to posts or poles in fenced-in cages in the property’s backyard, and three dogs in large metal cages in the basement. Flythe acknowledged that he bred and/or trained dogs for the purposes of sponsoring them for dogfights.
U.S. Attorney Barron commended the FBI; U.S. Department of Agriculture Office of Inspector General; Defense Criminal Investigative Service; U.S. Marshals Service; Anne Arundel County Police Department; Anne Arundel County Animal Control; and the U.S. Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Alexander Levin who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Fresno Man Pleads Guilty to Throwing Methamphetamine into Federal Prison YardRead the Press Release
FRESNO, Calif. — Garrett Scott Wheelen, 33, of Fresno, pleaded guilty today to possessing more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, on May 1, 2024, Wheelen arrived at the Federal Correctional Institution Mendota wearing a facemask, baseball cap, and hoodie to conceal his identity. In broad daylight, Wheelen ran to the prison fence and tossed four packages into the prison’s recreation yard. He was quickly apprehended after attempting to flee. The packages contained more than 3 pounds of methamphetamine. Wheelen was on supervised release from a prior federal felony charge at the time.
This case is the product of an investigation by the Federal Bureau of Investigation, the Mendota Police Department, and the Bureau of Prisons. Assistant U.S. Attorneys Cody S. Chapple and Dhruv M. Sharma are prosecuting the case.
Wheelen is scheduled to be sentenced on May 2, 2025, before U.S. District Judge Dena M. Coggins. Wheelen faces a statutory maximum of 20 years in prison, and a $1 million fine. The actual sentence, however, will 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.
Fort Bliss Soldier Sentenced to 8 Years in Federal Prison for Sexual Abuse of a MinorRead the Press Release
EL PASO, Texas – A former soldier stationed at Fort Bliss was sentenced in a federal court in El Paso to 100 months in prison for sexual abuse of a minor.
According to court documents, Carlos Humberto Richard Walsh, 23, of Washington, was involved in a romantic relationship with a minor under 16 years old from approximately Oct. 1, 2022 to approximately Jan. 24, 2023. Walsh, who was an Army specialist at the time, was subjected to barracks inspections, through which his command reported finding the minor victim in Walsh’s vehicle, along with several of the victim’s personal items in Walsh’s barracks room. The minor victim admitted to federal and local law enforcement that she had been living with Walsh in the Barracks and had engaged in sexual intercourse there on several occasions. Walsh was arrested May 25, 2023 and has remained in federal custody.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations, the Department of the Army Criminal Investigation Division, the Texas Department of Public Safety, and the El Paso Police Department investigated the case.
Assistant U.S. Attorney Sarah Valenzuela 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 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.justice.gov/psc.
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Former Government Contractor Convicted of Defrauding FEMA and Georgia-Based Litigation Funding CompanyRead the Press Release
ATLANTA - Following an eight-day trial, Tiffany Brown was found guilty by a jury of defrauding the Federal Emergency Management Agency (“FEMA”) in connection with a nearly $156 million contract she was awarded to provide self-heating meals to the residents of Puerto Rico in the aftermath of Hurricane Maria, and for fraudulently obtaining $700,000 in litigation advances from the Litigation Funding Group of Georgia (“LFG”) by falsely claiming that she had settled with a logistics company who failed to deliver the meals to FEMA.
“Brown resorted to extraordinary lengths to defraud FEMA during a critical period when individuals were in desperate need of food resources during the devastating aftermath of Hurricane Maria,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office, along with our law enforcement partners, will remain vigilant in pursuing and prosecuting individuals who exploit the devastation caused by natural disasters as an opportunity to commit fraud.”
“We will continue to investigate and support the prosecution of fraudsters who target vulnerable populations for their own gains,” said DHS Inspector General Joseph V. Cuffari, Ph.D.
“Brown greedily deceived the federal government during a natural disaster to enrich herself,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The FBI and our partners will aggressively pursue any person who seeks to defraud the government, especially during times of tragedy.”
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On September 20, 2017, Hurricane Maria made landfall as a Category 4 hurricane in Puerto Rico. In its wake, FEMA issued a solicitation for 40 million self-heating meals per week to deliver to the island. Meals requiring a microwave or an external heating source, such as for boiling water, were unacceptable. FEMA issued the meal solicitation because it had exhausted its existing supply of self-heating meals from its own warehouses, primary vendors, and federal agency partners in responding to Hurricanes Harvey and Irma— both Category 4 hurricanes that impacted broad swaths of Texas, Louisiana, and the U.S. Virgin Islands.
On September 28, 2017, Brown submitted a proposal to FEMA falsely representing that her Georgia-based company, Tribute Contracting LLC, could provide the necessary self-heating meals. In doing so, Brown misrepresented that Tribute: (a) could deliver 10 million meals per day utilizing 210 trucks; (b) would provide 300,000 meals prepositioned; and (c) had partnered with C.H. Robinson, a major shipping and logistics broker, to meet FEMA’s delivery requirements.
But Tribute was incapable of delivering 10 million meals, never prepositioned any meals, and did not have the claimed partnership. A FEMA contacting officer spoke with Brown after receiving Tribute’s proposal. The contracting officer knew that U.S.-based manufacturers could not produce the number of meals that Brown claimed in her proposal. In response, Brown falsely represented that she was procuring the self-heating meals from Action Meals, a Canadian manufacturer. Brown sent FEMA a doctored image of an Action Meals package with a fraudulent expiration date.
Based on her conversation with the contracting officer, Brown submitted a revised proposal falsely representing that she had firm confirmation from her “core suppliers for 30 million self-heating meals in 30 days” and that she could begin delivering one million meals a day beginning on October 7, 2017.
On October 3, 2017, FEMA awarded Tribute and Brown a $155,982,000 contract requiring the delivery of 30 million self-heating meals between October 7 and October 23, 2017. FEMA had to confirm that Tribute’s proposed meal was “technically acceptable” before approving the delivery. FEMA approved Brown’s proposal in part because it understood that Brown would deliver self-heating meals manufactured by Action Meals. Unbeknownst to FEMA, Brown had not secured a supplier when she was awarded the FEMA contract. After being awarded the contract, Brown repeatedly mispresented to FEMA the status of her suppliers and timing of deliveries.
On October 19, 2017, FEMA terminated its contract with Brown and Tribute. Before doing so, however, FEMA paid Brown $255,000 based on her submission of fraudulent invoices and bills of ladings claiming that she had successfully delivered 50,000 self-heating meals. Brown in fact had delivered 50,000 non-compliant, dehydrated meals. After FEMA terminated the contract, Brown continued making false representations to FEMA. For example, Brown submitted fraudulent invoices in December 2017 and June 2019 claiming to have purchased tens of thousands of dollars of heaters.
In March 2019, Brown falsely represented to LFG that she had a tentative $5 million settlement with a logistics company, Total Quality Logistics (“TQL”). Brown claimed that TQL was willing to settle with her because it failed to timely deliver meals to FEMA, which she claimed was the reason FEMA terminated her contract. In truth, TQL obtained a default judgment against Brown for unpaid deliveries.
To secure the fraudulent litigation financing, Brown provided LFG with a mix of actual and fabricated documents. For instance, she provided the real FEMA contract, but a fraudulent tentative settlement agreement, and fabricated emails between TQL’s general counsel and “Jerry Rosenstein,” Tribute’s purported in-house counsel. Brown further perpetrated the fraud by using her attorney to create the illusion that she was a successful government contractor who was negotiating directly with TQL. Brown later falsely claimed she settled with TQL for $6.5 million, which she evidenced by an agreement that TQL’s CEO supposedly signed. The scheme unraveled when TQL did not pay the $6.5 million, and Brown’s attorney received an email from a “James Wilson,” who was supposedly an in-house attorney at TQL. “James Wilson” wrote that he was willing to release the settlement funds in exchange for $500,000. Investigators later determined that Brown was responsible for creating the fake “Jerry Rosenstein” and “James Wilson” personas.
Tiffany Brown, 45, of Atlanta, Georgia is scheduled to be sentenced on April 22, 2025, at 10:00 a.m. by U.S. District Judge Thomas W. Thrash, Jr. Brown was found guilty by a federal jury on January 17, 2025, of 11 counts of major disaster fraud, 17 counts of wire fraud, one count of theft of government money, and three counts of money laundering.
This case is being investigated by the U.S. Department of Homeland Security, Office of Inspector General, and the Federal Bureau of Investigation, with valuable assistance from the Federal Emergency Management Agency’s Office of Chief Counsel.
Assistant U.S. Attorneys Alex R. Sistla and Jessica C. Morris are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CEO of Startup Software Company Sentenced to 30 Months in Federal Prison for Tax SchemeRead the Press Release
CONCORD – A Bedford man was sentenced yesterday in federal court for his scheme to willfully fail to pay more than $14 million in payroll taxes owed to the IRS and failing to file and pay his personal taxes, Acting U.S. Attorney Jay McCormack and Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division announce.
Andrew Park, 49, was sentenced by U.S. District Court Judge Landya McCafferty to 30 months in federal prison and three years of supervised release. She also ordered Park to pay $639,821.78 in restitution, the amount of tax and interest not repaid at the time of sentencing, to the United States. She also ordered Park pay a fine of $15,000. In July 2024, Park pleaded guilty to willful failure to pay over payroll taxes and willful failure to file a tax return.
Park was the co-founder and CEO of a startup technology company. Park was responsible for all financial matters related to the company, including for filing the company’s quarterly payroll tax returns and collecting and paying over Social Security, Medicare and income taxes withheld from the employees’ wages to the IRS, as well as the matching Social Security and Medicare taxes the company owed. Park was also responsible for collecting and paying over state and local taxes to those respective governments.
From the company’s founding in 2014 through the third quarter of 2021, Park withheld federal, state and local taxes from the wages of the company’s employees but did not pay them over to the IRS and state and local tax authorities as required by law. He also did not pay over the portion of the payroll taxes that the company owed. Park did so even though a payroll service company that he hired to process the employees’ payroll notified him hundreds of times that the taxes were due, and four employees of the company complained that the Social Security Administration reported no withholdings had been paid over by the company on their behalf.
From 2013 through 2020, Park also did not file individual tax returns as required by law, despite the fact that he paid himself a salary of approximately $250,000 each year.
In total, Park caused a tax loss to the IRS exceeding $14.7 million.
“For many years, the defendant took elaborate steps to defraud the IRS by not filing or paying his personal income taxes and by using his employees’ payroll taxes as free capital to grow his business. Then, when matters got out of hand, he falsely told his investors that his company was tax compliant to secure the funds to try to make the problem disappear,” said Acting United States Attorney Jay McCormack. “The substantial sentence imposed by the court reflects the seriousness of the defendant’s conduct and his disregard for our nation’s tax laws and sends a message to deter other would-be tax fraudsters who might seek to enrich themselves at the expense of honest taxpayers.”
“Yesterday’s sentencing of Andrew Park is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “When Andrew Park made the decision not to pay taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigations of employment tax fraud is a priority for Internal Revenue Service Criminal Investigation as our system of taxation depends on everybody paying their fair share.”
IRS-Criminal Investigation led the investigation. Assistant U.S. Attorney Matthew T. Hunter and Assistant Chief Eric Powers of the Tax Division are prosecuting the case.
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Former CEO of Startup Software Company Sentenced for Payroll Tax Fraud CrimesRead the Press Release
A New Hampshire man was sentenced yesterday to two-and-a-half years in prison for willfully failing to pay more than $14 million in payroll taxes and not filing personal tax returns.
According to court documents and statements made in court, Andrew Park, 49, of Bedford, was the co-founder and CEO of a startup technology company. Park was responsible for all financial matters related to the company, including for filing the company’s quarterly employment tax returns and collecting and paying over Social Security, Medicare and income taxes withheld from the employees’ wages to the IRS, as well as the matching Social Security and Medicare taxes the company owed.
From the company’s founding in 2014 through the third quarter of 2021, Park withheld federal taxes from the wages of the company’s employees but did not pay them over as required by law. He also did not pay over the portion of the employment taxes that the company owed. Park willfully failed to do so even though a payroll service company that he hired to process the employees’ payroll regularly notified him that the taxes were due, and in more than one instance was notified by an employee that the amount paid to Social Security listed on her W-2 did not match what was reported by the Social Security Administration.
From 2013 through 2020, Park also did not file individual tax returns as required by law, despite the fact that he paid himself a salary of approximately $250,000 each year.
In total, Park caused a tax loss to the IRS exceeding $14 million.
In addition to the term of imprisonment, U.S. District Chief Judge Landya B. McCafferty for the District of New Hampshire ordered Park to serve three years of supervised release and to pay $639,821.78 in restitution to the United States and a fine of $15,000.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney John J. McCormack for the District of New Hampshire made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief Eric Powers of the Tax Division and Assistant U.S. Attorney Matthew Hunter for the District of New Hampshire prosecuted the case.
Florida Resident Charged in Scheme to Submit Fraudulent Asylum ApplicationsRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Carlos Adolfo Haeckermann Cardenas on charges of aiding and abetting false statements on asylum applications.
According to an indictment filed Nov. 13, 2024, and unsealed Jan. 23, 2025, Haeckermann, 62, of Doral, Florida, held himself out to provide individuals with assistance in applying for immigration documents and benefits, including asylum. Between 2019 and 2021, Haeckermann submitted or assisted in the submission of more than 100 asylum applications to U.S. Citizenship and Immigration Services (USCIS) and charged his clients, including some who resided in the Northern District of California, thousands of dollars to help them apply for asylum.
The indictment further alleges that it was Haeckermann’s practice to draft his clients’ personal statements, which frequently included stories of political persecution that formed the basis for the asylum claims. In so doing, Haeckermann allegedly included false and embellished details that were intended to substantiate his clients’ asylum claims and increase the chances that his clients would be granted asylum.
It was Haeckermann’s practice to send completed applications back to his clients for them to sign and submit rather than to list himself as a third-party preparer and to submit the applications himself. At times, the indictment says, Haeckermann solicited his clients for additional payments in exchange for falsified documents that Haeckermann told his clients were necessary to support their asylum claims.
Haeckermann made his initial appearance in San Francisco on Jan. 22, 2025. He is next scheduled to appear in federal court on Mar. 26, 2025, before the Hon. Vince Chhabria, U.S. District Judge.
United States Attorney Ismail J. Ramsey and U.S. Department of State Diplomatic Security Service (DSS) Criminal Fraud Investigations Branch Chief Jeff Rusinek made the announcement.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years’ imprisonment on each count, as well as a maximum fine of $250,000 on each count. Any sentence following a conviction would be imposed by a court only upon consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Nicholas Parker is prosecuting the case. The prosecution is the result of an investigation by DSS and USCIS, with significant assistance from USCIS’s Fraud Detection and National Security Directorate.
Haeckermann Indictment
Florida Man Pleads Guilty to Tax Evasion and Wire FraudRead the Press Release
SYRACUSE, NEW YORK – Robert Rahrle, age 34, formerly of Florida and now residing in the Northern District of New York, pled guilty Wednesday to tax evasion and wire fraud. United States Attorney Carla B. Freedman, and Harry Chavis, Jr. Acting Special Agent in Charge of the New York Field Office, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
As part his guilty plea, Rahrle admitted that from 2017 through 2024, he ran a fraudulent online gift basket website called iCare Gifting Solutions LLC. iCare purported to cater to families of incarcerated individuals, promising to send care packages into prisons. iCare charged hundreds of customers approximately $50 per gift basket but never sent the gift packages.
In addition to defrauding iCare’s customers, Rahrle evaded his federal taxes. He self-prepared and filed tax returns for tax years 2017 and 2018 that falsely reported business losses and failed to report hundreds of thousands of dollars of gross receipts.
Sentencing is scheduled for June 11, 2025. Rahrle faces up to five years in federal prison on the tax evasion charge and up to 20 years in prison on the wire fraud charge, along with a post-imprisonment term of supervised release of up to three years. He also could be fined up to $250,000 or an alternative fine based on his gain or the victims’ losses, owes restitution to the IRS of approximately $175,000 and restitution to the victims of his fraud, and will be required to forfeit a money judgment of $2 million to the United States. A federal district court judge will determine Rahrle’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by IRS-CI, the United States Postal Inspection Service (USPIS), and the Criminal Investigation Division of the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Michael D. Gadarian.
Five Defendants Sentenced in Options Trading SchemeRead the Press Release
ATLANTA – Milan Patel has been sentenced to prison in connection with a years-long market manipulation scheme in which he and his co-conspirators conceived, drafted, and disseminated false rumors about publicly traded companies and then profitably traded on these rumors by purchasing and selling mainly short-term call options.
“The defendants used their financial acumen to manipulate the securities markets by releasing false information about publicly traded companies,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office is committed to working with our law enforcement partners to investigate and prosecute all forms of securities fraud.”
“These sentencings should serve as a reminder to anyone attempting to tilt the balance of financial markets in their direction using insider trading, investigating this illegal behavior is a top priority of the FBI and you will be held accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: Between approximately October 2017 and January 2020, Milan Patel, Bart Ross, Mark Melnick, Anthony Salandra, and Charles Parrino conspired to trade securities—primarily short-term call options—in large, publicly traded companies based on materially false rumors about those companies that they generated and disseminated. These materially false rumors were intended to increase the price of the securities (both the underlying stock and options).
Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.
Ross, Salandra, and Parrino, were formerly registered brokers with the Financial Industry Regulatory Authority (FINRA) and were responsible for drafting some of the fraudulent rumors. The conspirators would often refine a proposed rumor by exchanging drafts among themselves using the Trillian instant messaging application.
Melnick was a day trader and T3 Live Senior Trading Strategist who often provided technical evaluations on whether a particular false rumor would be successful. These rumors were carefully crafted to: (a) appear plausible enough to other market participants to move the price of the underlying security; and (b) move the price of the security in a particular direction—namely move the stock or option price up—so that Patel and the other conspirators could profitably trade on the rumors.
Patel was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn result in the false rumor being distributed over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.
Before Patel disseminated the rumor, the co-conspirators would acquire a position in the publicly traded company that was the subject of the rumor. The co-conspirators purchased short-term call options often mere seconds before Patel disseminated the rumor. The conspirators often purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. The conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would then sell off their positions shortly after the rumor was disseminated and the price of the option or underlying stock had increased.
In total, the defendants executed more than 500 trades and made $2,651,320 in profits as a result of their fraudulent scheme.
U.S. District Judge Leigh Martin May sentenced the defendants in the case as follows:
•Milan Patel, 49, of Cumming, Georgia, was sentenced on January 23, 2025, to 18 months in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Patel was convicted on August 20, 2024, after he pleaded guilty to conspiracy to commit securities fraud.
•Charles Parrino, 59, of West Palm Beach, Florida, was sentenced on January 17, 2025, to one year and one day in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Parrino was convicted on September 27, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.
•Mark Melnick, 44, of Marlboro, New Jersey, was sentenced on December 18, 2024, to three years’ probation with the first six months to be served on home confinement. He was also ordered to pay a $4,000 fine. Melnick was convicted on September 21, 2021, after he pleaded guilty to conspiracy to commit securities and wire fraud.
•Anthony Salandra, 60, of Delray Beach, Florida, was sentenced on December 5, 2024, to three years’ probation with the first six months to be served on home confinement. Salandra was convicted on April 11, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.
•Bart Ross, 60, of Atlanta, Georgia, was sentenced on September 7, 2022, to three years’ probation. Ross was convicted on December 18, 2020, after he pleaded guilty to conspiracy to commit securities and wire fraud.
This case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.
Assistant U.S. Attorney Alex R. Sistla prosecuted the case.
The SEC is investigating potential civil violations of the U.S. securities laws relating to above-described scheme. In connection with its investigation, the SEC filed separate civil enforcement actions against Patel, Parrino, Melnick, Salandra, and Ross in the U.S. District Court for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fifth Defendant in San Antonio Firearm Burglary Crew Sentenced to 10 Years in Federal PrisonRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced to 120 months in federal prison as the final defendant in a case involving a five-man burglary crew.
According to court documents, Victor Valenciana aka Vick, 30, and his four co-conspirators targeted and burglarized Ford pickup trucks in the parking lots of retail locations, malls and restaurants. Together they stole firearms, high-value items and occasionally the vehicles themselves. To evade law enforcement detection, the individuals would rent vehicles and use them to travel to the burglary locations. Additionally, they would steal license plates from similar-looking vehicles and install the stolen license plates on the rental vehicles. In all, the group stole and sold more than 100 firearms from vehicles in the San Antonio area between July 2021 until January 2022.
On Oct. 5, 2022, Valenciana, Alejandro Arias, 26, Richard Hernandez aka Panek, 26, Andrew Blue Riojas, 26, and Aureliano Villareal aka AJ, 28, all from San Antonio, were charged in a 17-count indictment, which included on count of conspiracy to receive and possess stolen firearms and multiple counts of felon in possession of a firearm and possession of a stolen firearm. Valenciana was arrested Nov. 17, 2022 and has remained in federal custody. He pleaded guilty Aug. 14, 2024, to the conspiracy charge and one count of felon in possession of a firearm.
“These five criminals will spend a combined 53 years in federal prison for their activity thanks to the investigative work and partnerships of our outstanding federal and local law enforcement agencies,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I continue to ask residents to ensure that, if you must leave a firearm in your vehicle, you do so safely and properly. Thieves continue to target specific vehicles and can successfully break in and escape in a matter of seconds.”
“This sentence serves as notice to would be offenders that ATF is committed to breaking the cycle of firearms trafficking no matter how it occurs,” said Special Agent in Charge Michael Weddel for the Bureau of Alcohol, Tobacco, Firearms and Explosives Houston Division. “The vast majority of firearms stolen from vehicles, end up being used as crime guns. We encourage gun owners to practice safe storage of firearms and to remember that your vehicle is not a safe. ATF will continue to leverage every resource that we have to see to it that each offender is held to account for their criminal behavior.”
“Criminal networks that steal firearms and high-value items not only jeopardize public safety, but also fuel illegal activity across our communities,” said Special Agent in Charge Craig Larrabee for the Homeland Security Investigations San Antonio Division. “These defendants were part of a poly-criminal organization that targeted vehicles to steal firearms, which were then sold and trafficked, some recovered in Mexico, posing a serious threat to public safety. This sentencing underscores HSI’s commitment to dismantling these criminal networks and protecting the American public.”
“We sincerely thank our federal partners for their vital support in cracking down on vehicle burglars targeting firearms,” said Chief William McManus for the San Antonio Police Department. “Their collaboration is making our community safer.”
Valenciana and his co-conspirators received a combined 639 months in federal prison. Arias was sentenced to 150 months on Jan. 16; Hernandez was sentenced to 78 months in prison Dec. 19, 2024; Riojas was sentenced to 151 months Aug. 15, 2024; and Villareal was sentenced to 140 months July 16, 2024.
ATF, HSI and SAPD investigated the case.
Assistant U.S. Attorney Brian Nowinski prosecuted the case.
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Fentanyl Death in Indian Country Leads to Lawton Man's Conviction for Fentanyl Distribution and Drug ConspiracyRead the Press Release
OKLAHOMA CITY – A federal jury has convicted BREON MONTE BELLAMY, 36, of Lawton, Oklahoma, of distribution of fentanyl and drug conspiracy, announced U.S. Attorney Robert J. Troester.
On September 4, 2024, a federal grand jury returned a two-count Superseding Indictment against Bellamy, charging him with distribution of fentanyl resulting in death and drug conspiracy resulting in death. On January 16, 2025, after a four-day trial, a federal jury found Bellamy guilty on the lesser-included offenses of distribution of fentanyl and drug conspiracy. Evidence presented at trial indicated that on August 21, 2023, Bellamy sold fentanyl to Reecy Bench, 22, at a casino in Lawton, Oklahoma. Bench then gave a portion of the fentanyl to Joanie Wilson, 38, while still at the casino. The federal investigation suggested that some of this fentanyl was then distributed to another Stephens County resident who died of fentanyl and methamphetamine toxicity on August 23, 2023. Both Bench and Wilson have previously pleaded guilty to drug conspiracy and are awaiting sentencing.
At sentencing, Bellamy faces up to 60 years in federal prison and a fine of up to $2,000,000.
This case is in federal court, in part, because Bench is a member of the Choctaw Nation, and a portion of the crimes occurred within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Drug Enforcement Administration (DEA), the Stephens County Sheriff’s Office, and the Lawton Police Department, and demonstrates the importance of the DEA’s “One Pill Can Kill” campaign. More information about “One Pill Can Kill” can be found at https://www.dea.gov/onepill. Further information about the danger associated with fentanyl distribution and use can be found at https://www.youtube.com/watch?v=16O7TkhFH9k.
Special Assistant U.S. Attorney Kaleigh Blackwell and Assistant U.S. Attorney Elizabeth Joynes are prosecuting the case.
Reference is made to public filings for additional information.
Feeding our Future Defendant Sentenced to 17 Years in Prison for His Role in $250 Million Fraud SchemeRead the Press Release
MINNEAPOLIS – A Bloomington man has been sentenced to 210 months in prison followed by three years of supervised release for his role in a $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick. The defendant was also ordered to pay restitution in the amount of $47,920,514.
“The defendant committed a brazen fraud that shamelessly stole taxpayer money intended to feed children during a global pandemic. He lined his pockets, here and abroad, with millions,” said Acting U.S. Attorney Kirkpatrick. “As the Court found, he doubled down on his crimes by obstructing justice. This significant sentence should serve as a clear warning to anyone who would seek to exploit and defraud government programs. You will be held accountable.”
As proven at trial, Mukhtar Mohamed Shariff, 34, and his co-defendants devised and carried out a multi-million fraud scheme to defraud the Federal Child Nutrition Program. As the chief executive officer of Afrique Hospitality Group, Shariff obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. Their scheme was accomplished by exploiting changes in the nutrition program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Shariff and his co-defendants created and submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site and false invoices purporting to document the purchase of food to be served to children at the sites. The conspirators also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, and it allowed for off-site food distribution to children outside of educational programs.
Following a seven-week trial in U.S. District Court before Judge Nancy E. Brasel in June 2024, Shariff was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. In handing down the sentence today, Judge Brasel commented that Shariff’s conduct showed a “staggering lack of respect for the law,” and that taxpayers were “outraged by the brazenness of the crime.”
The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier prosecuted the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Federal Jury Convicts Former OSBI Investigator of Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Jordan Francis Toyne, 36, of Broken Arrow, Oklahoma, was found guilty by a federal jury of three counts of Sexual Abuse of a Minor in Indian Country.
The jury trial began with testimony on January 21, 2025, and concluded on January 23, 2025, with the guilty verdicts.
During the trial, the United States presented evidence that Toyne sexually assaulted a minor over a period of time beginning in the Summer of 2020 until 2023, when the victim reached 16 years of age. The United States also presented evidence that Toyne sexually abused another minor in 2021.
At the time of the assaults, Toyne served as an investigator with the Oklahoma State Bureau of Investigation’s Internet Crimes Against Children (ICAC) unit. Toyne resigned from his post prior to the completion of an internal investigation conducted by the OSBI. The victims were unrelated to Toyne’s official duties with the OSBI. However, the United States presented evidence Toyne used his specialized knowledge as a Child Crimes Investigator to groom the victims and evade detection of his crimes.
The guilty verdicts were the result of an investigation by the Federal Bureau of Investigation and the Owasso Police Department, together with cooperation and special assistance from OSBI.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the victim is a member of a federally recognized Indian tribe and the crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the trial and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. The defendant was remanded to the custody of the United States Marshals pending sentencing.
Assistant U.S. Attorneys Nicole Paladino and Emily Wittlinger represented the United States.
Eleven Members of Bronx “Washside” Gang Sentenced for Murder, Attempted Murder, Assault, Racketeering, and Firearms OffensesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced the sentencing of YAUREL CENTENO, a/k/a “Flex,” the last of 11 defendants to be sentenced in a case involving members of a street gang known as “WashSide” or “Wash” in the Bronx, New York. CENTENO was sentenced to 24 years in prison for crimes relating to his membership in WashSide, including the murder of 20-year-old Tyrone Almodovar on June 26, 2020, and the gunpoint robbery of a pawnshop on June 27, 2020. CENTENO also participated in a crime spree in 2020 comprised of dozens of other robberies and larcenies stretching across more than 10 states between Maine and Alabama. CENTENO previously pled guilty to conspiracy to commit racketeering and conspiracy to commit murder in aid of racketeering on February 2, 2024, before U.S. District Judge Jesse M. Furman, who imposed today’s sentence.
U.S. Attorney Danielle R. Sassoon said: “The WashSide gang terrorized neighborhoods in the Bronx and beyond by killing, shooting, slashing, and robbing people. Together with our law enforcement partners, we have now held WashSide’s members accountable not only for the murder of Tyrone Almodovar, a senseless killing, but for countless other crimes committed by the gang all across the country. We will not let violent gangs continue to endanger the welfare of New Yorkers.”
According to the Superseding Indictment and Informations, public court filings, and statements made in court:
From at least 2015 to 2022, the members of “WashSide” or “Wash,” a criminal enterprise based in the Bronx, New York, committed multiple acts of violence against members of rival street gangs and others. To make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of WashSide engaged in, among other things, armed robberies and carjackings, drug trafficking, wire fraud, and violence, including murder, attempted murder, and assaults with dangerous weapons. The members of WashSide also travelled outside New York City and New York State, robbing and stealing from stores across the Northeast, Mid-Atlantic, Midwest, and Southeast, principally during the height of the pandemic in 2020. For years, WashSide engaged in disputes with rival crews in the Bronx, which resulted in numerous acts of violence. Among their violent crimes were the following offenses.
On June 26, 2020, following a car chase, Boss Terrell, a/k/a “Sauce,” Centeno, Lydell Seymore, a/k/a “Bugout,” and Darrell Spencer, a/k/a “Rell,” shot and killed Tyrone Almodovar.
On June 27, 2020, CENTENO, Isaiah Thomas, a/k/a “Zay,” a/k/a “Chicago,” Jacob Baker, and Tyshawn Brogdon, a/k/a “Shawn,” participated in the gunpoint robbery of a pawnshop, in which multiple victims were struck with a firearm or had a firearm held up to their heads.
On July 29, 2020, TERRELL shot at rival gang members.
On August 18, 2020, CENTENO robbed an electronics store, cutting open the hand of an employee who attempted to resist him.
On June 13, 2021, Noel Carr, a/k/a “Noey,” participated in the assault of a rival gang member who was slashed with a knife.
On September 17, 2021, BROGDON and BAKER committed an armed carjacking at an auto shop, crashing the stolen car almost immediately as an employee was dragged alongside it.
On August 21, 2021, THOMAS, BAKER, and Antwan Mosley, a/k/a “Ant,” committed a drive-by shooting that targeted rival gang members but injured two innocent teenage bystanders.
On December 30, 2021, SEYMORE and Mamadou Diallo, a/k/a “Haji,” a/k/a “Aladje,” committed another armed carjacking, seizing a car at gunpoint from a driver whom they also stripped of much of his clothing in the middle of winter.
On August 19, 2022, BAKER and Rasheed Chapman, a/k/a “Ra,” committed another shooting that similarly resulted in an innocent bystander being struck in the chest.
* * *
A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Ms. Sassoon praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Courtney L. Heavey and Thomas John Wright are in charge of the prosecution.
DefendantAgeConvictionsSentenceBoss Terrell,
a/k/a “Sauce”
23Conspiracy to Commit Murder in Aid of Racketeering and Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering22 YearsYAUREL CENTENO,
a/k/a “Flex”
23Racketeering Conspiracy and Conspiracy to Commit Murder in Aid of Racketeering24 YearsLydell Seymore,
a/k/a “Bugout”
20Racketeering Conspiracy and Interstate Transportation of Stolen Goods20 YearsDarrell Spencer,
a/k/a “Rell”
26Racketeering Conspiracy16 YearsIsaiah Thomas,
a/k/a “Zay,”
a/k/a “Chicago”
25Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for a Crime of Violence16 YearsJacob Baker20Racketeering Conspiracy and Use of a Firearm for a Crime of Violence200 MonthsTyshawn Brogdon,
a/k/a “Shawn”
21Racketeering Conspiracy and Use of a Firearm for Carjacking and Robbery100 MonthsRasheed Chapman,
a/k/a “Ra”
20Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering and Use of a Firearm for a Crime of Violence150 MonthsMamadou Diallo,
a/k/a “Haji,”
a/k/a “Aladje”
24Racketeering Conspiracy7 YearsAntwan Mosley,
a/k/a “Ant”
22Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering and Use of a Firearm for a Crime of Violence10 YearsNoel Carr,
a/k/a “Noey,”
23Assault with a Dangerous Weapon in Aid of Racketeering and Aggravated Identity Theft70 MonthsDelaware Man Sentenced to 135 Months in Federal Prison for Second Conviction Involving Child Sexual Abuse MaterialRead the Press Release
WILMINGTON, Del. – Melvin Janvier, 37, of Newark, Delaware was sentenced on January 23, 2025, to 135 months in federal prison for possessing child sexual abuse material (“CSAM”), announced Shannon T. Hanson, Acting U.S. Attorney for the District of Delaware. Following his time in prison, he will spend 15 years on federal supervised release. U.S. District Court Judge Maryellen Noreika pronounced the sentence.
According to court documents, the FBI Violent Crimes Against Children Unit, with the assistance of State of Delaware Probation and Parole, arrested Janvier after an FBI Child Exploitation Task Force investigation indicated Janvier was in possession of and sending CSAM from Janvier’s cellphone through the Internet in July 2021.
Law enforcement later found over 2,000 files containing CSAM on Janvier’s phone. The files found on the device included images and videos of prepubescent minors, to include infants and toddlers, and materials portraying bondage and bestiality. Janvier had previously been convicted in 2016 in the State of Delaware for possession of and dealing in CSAM and served four years in prison.
Acting U.S. Attorney Hanson stated, “Our office is committed to protecting children and prosecuting those engaged in the sexual exploitation of minors through the possession and distribution of child sexual abuse material. I wish to thank the FBI and our Delaware law enforcement partners who tirelessly pursed this case.”
"There is nothing that can excuse Melvin Janvier’s sick behavior. Every one of the more than 2,000 images he possessed re-victimizes a child," said FBI Baltimore SAC William J. DelBagno. "FBI Baltimore’s Violent Crimes Against Children Task Force is committed to putting predators like Janvier behind bars where they can no longer hurt others."
The FBI Baltimore Field Office, with the assistance from the FBI Washington Field Office and the State of Delaware Probation and Parole, investigated this case. Assistant U.S. Attorneys Samuel S. Frey and Briana Knox prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-CR-78-MN.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorney’s Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, 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.justice.gov/psc.
Cushing Man Sentenced to Serve Five Years in Federal Prison after Firearm and Stolen Truck, Log Splitter, and Other Items are Found on PropertyRead the Press Release
OKLAHOMA CITY – JIM BOB STORY, 49, of Cushing, has been sentenced to serve 60 months in federal prison for illegal possession of a firearm after a previous felony conviction and receiving and concealing stolen property, announced U.S. Attorney Robert J. Troester.
On April 3, 2024, a federal Grand Jury returned a two-count Indictment against Story, charging him with being a felon in possession of a firearm and receiving and concealing stolen property. According to public record, on February 21, 2024, officers with the Sac and Fox Nation Tribal Police Department received information that a stolen vehicle was being kept on Story’s property. After executing a search warrant, authorities recovered a rifle and ammunition, as well as other items previously reported as being stolen out of Cushing including a welder and a log splitter.
Public record further reflects that Story has a lengthy criminal history that includes felony convictions for second-degree burglary in case number CF-2003-82 and possession of a controlled dangerous substance in case number CF-2002-204, both in Payne County District Court, and conspiracy to distribute methamphetamine in Lincoln County District Court case number CF-2004-195.
This case is in federal court because Story is a member of the Sac and Fox Nation and these crimes took place on land held in trust for the Sac and Fox Nation.
At the sentencing hearing on January 15, 2024, U.S. District Judge Jodi W. Dishman sentenced Story to serve 60 months in federal prison, followed by three years of supervised release. In announcing her sentence, Judge Dishman noted Story’s extensive criminal history and the need to deter Story from future crimes.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sac and Fox Nation Tribal Police Department, and the Cushing Police Department. Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
Reference is made to public filings for additional information.
Corporation and Former Chief Executive Officer Plead Guilty to Health Care Fraud and Tax ConspiracyRead the Press Release
The Justice Department announced today that KBWB Operations LLC, which did business as Atrium Health and Senior Living (KBWB-Atrium), and former Chief Executive Officer and Managing Member Kevin Breslin of KBWB-Atrium, both pleaded guilty to one count of health care fraud and one count of tax conspiracy related to the operation of numerous skilled nursing facilities.
“Americans rely on skilled nursing facilities to care for themselves, family members and other loved ones, and the operators of these institutions must live up to their obligations and the law,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with its law enforcement partners to help ensure the safety and dignity of our must vulnerable citizens.”
Breslin, 58, of Hoboken, New Jersey, pleaded guilty in the U.S. District Court for the Western District of Wisconsin on Dec. 17, 2024. KBWB-Atrium pleaded guilty in the same court on Jan. 21. Breslin is one of six owners of KBWB-Atrium. KBWB-Atrium’s corporate headquarters was located in Little Falls, New Jersey, and its Midwest corporate office was located in Appleton, Wisconsin. KBWB-Atrium operated and owned nursing facilities in New Jersey, Wisconsin, and Michigan.
On Feb. 1, 2023, a Wisconsin grand jury returned a 12-count indictment against defendants Breslin and KBWB-Atrium (collectively the defendants) charging health care fraud and tax conspiracy, among other charges. According to court documents, from approximately Jan. 1, 2015, to in or about September 2018, KBWB-Atrium operated and owned 23 skilled nursing facilities in Wisconsin, and Breslin was responsible for overseeing all of KBWB-Atrium’s operations. The primary source of income for the KBWB-Atrium Wisconsin skilled nursing facilities was federal Medicare and Medicaid funds from the Centers for Medicare and Medicaid Services (CMS).
According to court documents, the defendants’ alleged health care fraud scheme involved unlawfully diverting CMS funds intended for the operation, management, maintenance, and care of the residents of the KBWB-Atrium Wisconsin skilled nursing facilities for other purposes and personal expenses. The defendants allegedly prioritized distributions and guaranteed payments to KBWB-Atrium’s owners regardless of KBWB-Atrium’s financial situation. The defendants’ alleged actions resulted in failing to meet the required federal regulations governing skilled nursing facilities, including not operating the KBWB-Atrium Wisconsin skilled nursing facilities in a manner that would enhance residents’ quality of life. According to court documents, the defendants also knew that vendors were not being paid for extended periods of time or some were not paid at all for their services. Additionally, defendants allegedly failed to pay third-party administrators monies deducted from KBWB-Atrium employees’ paychecks for insurance premiums and 401(k) plan contributions.
As a part of the tax conspiracy alleged in court documents, Breslin, acting on behalf of KBWB-Atrium, directed that income taxes and employment taxes withheld from KBWB-Atrium Wisconsin employees’ paychecks not be paid over to the IRS. This caused employees to prepare tax returns listing those withholdings as having been paid to the IRS, which was false.
The defendants are scheduled to be sentenced on May 7 before U.S. District Judge William M. Conleyfor the Western District of Wisconsin. Breslin faces a maximum penalty of up to 10 years in prison for the health care fraud count and five years in prison for the conspiracy to commit an offense against the United States count, along with a period of supervised release. Both defendants face restitution and other monetary penalties. A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
“Healthcare fraud affects every American,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “My office was proud to partner with the Justice Department’s Civil Division to help prosecute these individuals who harmed seniors and exploited our health care benefits programs for personal gain.”
“This guilty plea demonstrates our unwavering commitment to holding individuals accountable who exploit vulnerable populations and defraud the healthcare system for personal gain,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Breslin’s actions not only eroded public trust but endangered the well-being of patients who rely on our health care system. The FBI will continue to work tirelessly with our partners to investigate and bring to justice those who abuse positions of trust.”
“The guilty pleas of Kevin Breslin and KBWB Operations LLC serve as a reminder that healthcare fraud is not only a direct violation of patient care, but also an attack on the financial systems that underpin public and private trust,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (IRS-CI) Chicago Field Office. “IRS-CI and its law enforcement partners remain dedicated to investigating and prosecuting individuals and businesses who seek to exploit public and private institutions for personal gain.”
“HHS-OIG is dedicated to protecting Medicare and Medicaid funds and ensuring that health care providers uphold their responsibility to serve vulnerable populations with integrity,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The actions of those involved in this scheme erode the trust placed in our nation’s health care system, and we will continue working with our law enforcement partners to hold accountable those who misuse public funds for personal gain.”
“Employers placing profit over upholding their legal fiduciary responsibilities when managing health benefit plans will not be tolerated,” said Regional Director Ruben R. Chapa of the Employee Benefits Security Administration in Chicago. “The Employee Benefits Security Administration remains committed to ensuring that those who knowingly break the law are held fully accountable.”
The IRS-CI Chicago Field Office; HHS-OIG – Office of Investigations, Milwaukee Field Office; U.S. Department of Labor, Employee Benefits Security Administration, New York and Chicago Regional Offices; FBI Milwaukee Field Office; and the State of Wisconsin Department of Justice, Division of Criminal Investigation, Medicaid Fraud Control and Elder Abuse Unit investigated the case.
Trial Attorneys with the Civil Division’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Wisconsin.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Wisconsin, visit its website at www.justice.gov/usao-wdwi.
Convicted Felon Sentenced to over 5 Years in Prison for Gun CrimeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon has been sentenced for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton Peeples.
United States District Court Judge Annemarie Carney Axon sentenced Curtoine Lamar Jackson, 35, of Bessemer, to 64 months in prison. Jackson previously pleaded guilty to being a felon in possession of a firearm. On December 30, 2023, Jackson possessed a Taurus 9mm pistol. Jackson is prohibited from having a firearm because of multiple previous felony convictions.
Jackson was convicted on March 15, 2012, in the Circuit Court of the Bessemer Division of Jefferson County, Alabama, of the offenses of Robbery, First Degree; Burglary, First Degree; and Robbery, First Degree. He was convicted in the same court on or about December 4, 2017, of the Unlawful Possession of a Controlled Substance.
FBI and Bessemer Police Department investigated the case. Assistant U.S. Attorney W. Lee Gilmer prosecuted the case.