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Friday 17 January 2025
Two Charged with Defrauding Connecticut’s Medicaid ProgramRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Chief State’s Attorney Patrick J. Griffin today announced that RAMON APELLANIZ, also known as “Kristopher Rockefeller” and “Kris,” 39, of Middletown, and SUHAIL APONTE, 38, of Wethersfield, were arrested yesterday on federal criminal complaints charging each with health care fraud offenses stemming from an alleged scheme that defrauded Connecticut’s Medicaid program.
Apellaniz and Aponte appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford. Aponte was released on a $100,000 bond and Apellaniz was detained pending a hearing that is scheduled for January 23.
The Connecticut Medical Assistance Program (CTMAP) is a Connecticut Department of Social Services-administered program that provides medical assistance to low income persons. CTMAP’s benefit packages, referred to as “HUSKY” or “Connecticut Medicaid,” are jointly funded by the State of Connecticut and the federal government.
As alleged in court documents and statements made in court, Apellaniz previously operated The Gemini Project, LLC (“Gemini”), a Newington-based business that offered counseling to patients with mental, behavioral, and emotional disorders. According to the State of Connecticut’s public license database, Apellaniz is not a licensed provider. In 2020, Apellaniz was charged by the state with larceny, health care fraud, and identity theft offenses related to his providing services to numerous Medicaid beneficiaries as a non-licensed provider, and Gemini billing Medicaid for those services, or for services that were not rendered at all. Medicaid paid Gemini and Apellaniz $909,268 for the false claims. Apellaniz pleaded nolo contendere and, on April 17, 2024, was sentenced in Hartford Superior Court to eight years in prison, execution suspended after 15 months, and five years of parole. He was released from Department of Correction custody on November 19, 2024.
It is further alleged that in June 2021, Minds Cornerstone LLC, dba Minds Cornerstone Behavior Therapy Services (“Minds Cornerstone”), an Autism Specialist Group, was registered with the State of Connecticut. Aponte, who is not a licensed provider, was listed as its manager and registered agent. Beginning in approximately November 2021, Apellaniz, Aponte, and Minds Cornerstone defrauded the Connecticut Medicaid Program by submitting fraudulent claims for applied behavior analysis (“ABA”) services to children diagnosed with Autism Spectrum Disorder (“ASD”). Although Apellaniz does not appear on any of Minds Cornerstone’s Medicaid enrollment forms, has no ownership interest in the company, and has no signatory authority to any of its bank accounts, Apellaniz conspired with Aponte and ran the company under a pseudonym, including while he was incarcerated in state custody.
The complaint specifically alleges that Apellaniz and Aponte billed Medicaid for services purportedly rendered to patients when company payroll records indicate employees were not compensated for the associated services; direct supervision services purportedly provided by a Board Certified Behavior Analyst (“BCBA”) of a behavioral technician, when the corresponding procedure code for behavioral technician services was not billed; services purportedly rendered to patients who were actually in an inpatient hospital; and services purportedly rendered when parents of patients and former employees of Minds Cornerstone confirmed those services did not occur.
It is alleged that between November 2021 and December 2024, Apellaniz and Aponte submitted or caused to be submitted to Medicaid fraudulent claims that exceeded $1.8 million in losses to the Connecticut Department of Social Services. The ongoing investigation indicates that Apellaniz used some of the funds Minds Cornerstone received to pay a portion of the restitution he owes as a result of his state prosecution.
From approximately May 2022 until November 2024, Aponte was also employed by the State of Connecticut in the Office of Policy and Management.
Apellaniz and Aponte are charged with conspiracy to commit health care fraud, and health care fraud. Each offense carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, with the assistance of the Connecticut Department of Social Services. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Three High-Ranking MS-13 Gang Members Plead Guilty to Racketeering Charges in Connection with Nine MurdersRead the Press Release
Earlier today and on January 16, 2025, in federal court in Central Islip, three members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, pleaded guilty to multiple crimes, including nine murders committed on Long Island and elsewhere between 2016 and 2017. David Sosa-Guevara, also known as “Risky,” the New York regional leader of the Hollywood Locos Salvatruchas (Hollywood) clique of MS-13, and Victor Lopez-Morales, also known as “Persa,” a high-ranking member of the Hollywood clique, pleaded guilty on January 16, 2025. Kevin Torres, also known as “Inquieto” and “Quieto,” the New York regional leader of the Sailors Locos Salvatruchas Westside (Sailors) clique of MS-13, pleaded guilty on January 17, 2025.
Collectively, the three defendants pleaded guilty to racketeering charges in connection with their respective roles in nine MS-13 driven murders: (1) the April 26, 2016 murder of Samuel Martinez-Sandoval in Freeport; (2) the April 29, 2016 murder of Oscar Acosta in Brentwood; (3) the May 21, 2016 murder of Kerin Pineda in Freeport; (4) the September 4, 2016 murder of Josue Amaya-Leonor in Roosevelt; (5) the September 5, 2016 murder of Marcus Bohannon in Central Islip; (6) the October 10, 2016 murder of Javier Castillo in Freeport; (7) the October 14, 2016 murder of Carlos Ventura-Zelaya in Roosevelt; (8) the July 21, 2017 murder of Angel Soler in Roosevelt; and (9) the August 29, 2017 murder of David Rivera in Maryland, as well as narcotics trafficking. Additionally, Sosa-Guevara and Lopez-Morales pleaded guilty to participating in an August 2017 conspiracy to kidnap an individual identified in the superseding indictment as “John Doe #3.”
The three guilty plea proceedings were held before United States Magistrate Judge Lee G. Dunst. When sentenced by United States District Judge Joan M. Azrack, pursuant to the terms of their plea agreements, Sosa-Guevara and Torres each face up to 65 years in prison, and a minimum sentence of 40 years in prison. Victor Lopez-Morales faces up to 60 years in prison and minimum sentence of 40 years.
Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) and Anne T. Donnelly, Nassau County District Attorney, announced the guilty pleas.
“The defendants have admitted to their participation in numerous murders savagely committed with machetes and guns, all on behalf of the MS-13 and to increase their status in that depraved criminal organization,” stated Acting United States Attorney Pokorny. “As a result of the guilty pleas, the defendants will be severely punished by serving decades in prison and provide some measure of relief and closure to the families of the many victims.”FBI Assistant Director in Charge Dennehy stated: “MS-13 callously used murder in an attempt to exert control over territory for their ruthless gang operations. As demonstrated by the guilty pleas of these three, high-ranking MS-13 members for their roles in nine murders, this type of extreme and senseless violence will not go unpunished. The FBI’s Long Island Gang Task Force, along with our law enforcement partners, will continue to bring to justice members of MS-13 or any other violent gang using violence and murder to terrorize our communities.”
"These defendants used their rank in the gang to help orchestrate multiple brutal murders and other crimes,” stated SCPD Acting Commissioner Waring. “We in law enforcement will never stop working to fight the pervasive violence sowed throughout these gangs.”
“The charges brought forth is a clear example of the results when Law Enforcement Personnel from Federal and Local Agencies combine their efforts and resources,” stated NCPD Commissioner Ryder. “Their relentless and continued investigations resulted with the charging of these criminals who were responsible for committing these murders. This combined investigation demonstrates the diligence of the well trained and determined investigators. The Nassau County Police Department remains committed in working with our law enforcement partners halting any gang activity on our streets and keeping our residents safe. I would like to thank all of the assisting agencies and their investigators on a job well done.”
“These defendants carried out vicious and senseless violence to instill fear and assert their dominance. Today’s guilty pleas bring us one step closer to ridding this dangerous gang activity from Nassau County communities,” stated Nassau County District Attorney Donnelly. “Together with our partners, we remain committed to protecting Long Island from this criminal organization’s brutality and ensuring individuals involved in these devastating acts are held accountable for their crimes.”
According to court filings and statements made during the guilty plea proceedings, Torres was the New York regional leader of the Sailors clique, Sosa-Guevara was the New York regional leader of the Hollywood clique, and Lopez-Morales was a high-ranking member of the Hollywood clique. The defendants admitted to committing the crimes set forth below in order to maintain and increase their membership and status within the gang, and to further the mission of the MS-13.April 26, 2016 Murder of Samuel Martinez-Sandoval
The defendants pleaded guilty to the murder of 20-year-old Martinez-Sandoval, which was carried out in April 2016, by the defendants and other members from the Sailors, Hollywood and Normandie Locos Salvatruchas cliques, who planned a joint operation to lure and kill Martinez-Sandoval because they believed that he was a member of the rival Sureños gang.
On April 26, 2016, MS-13 members convinced Martinez-Sandoval to drive with them to a secluded, wooded area near Freeport Lake in Roosevelt, under the guise of smoking marijuana. Separately, more than a half dozen MS-13 members, including the defendants, armed with machetes and other weapons, had gathered at a designated location along Freeport Lake where it was agreed that the other gang members would bring the victim. When Martinez-Sandoval arrived, Sosa-Guevara, Torres, Lopez-Morales and the other MS-13 members surrounded and attacked the victim, each taking turns hacking him with a machete and other weapons. After the victim was killed, the MS-13 members dug a shallow grave and buried the victim. However, because the initial hole was not deep enough to conceal Martinez-Sandoval’s body, a group of MS-13 members went back the following day, reburied the victim and covered his body with cement and dirt. Martinez-Sandoval’s body was not found until September 2024.
April 29, 2016 Murder of Oscar Acosta
Torres pleaded guilty to the murder of 19-year-old Acosta. In early 2016, Torres, as leader, ordered a “greenlight” authorizing other gang members to murder Acosta because the gang suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13. Torres assigned roles as to which members would take the lead in planning and carrying out the murder.
On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana. They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members who arrived in two cars. The MS-13 members loaded Acosta into the trunk of one of the cars and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital. The MS-13 members then removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete. The murder was supervised by the local leaders of the Sailors clique who reported back to Torres once completed. After killing Acosta, the MS-13 members buried his body in a shallow grave.
Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim. His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.
May 21, 2016 Murder of Kerin Pineda
The defendants also pleaded guilty to the murder of 20-year-old Pineda, who, like Acosta, was killed because of his suspected membership in the 18th Street gang. Torres, again, ordered the “greenlight” for Pineda, marking him for death. In response, MS-13 members from the Sailors and Hollywood cliques, including Sosa-Guevara and Lopez-Morales, devised a plan to kill Pineda.
On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border. Torres, Lopez-Morales, and Sosa-Guevara acted as lookouts for police and coordinated the attack, staying in contact with the MS-13 members in the woods while they waited for Pineda. When Pineda arrived, he was surrounded and violently attacked by the group of MS-13 members, each of whom took turns hacking and slashing him with the machetes. Pineda’s body was then buried in a hole that had been dug in the ground the day before, in anticipation of the murder. Before leaving the scene, the MS-13 members contacted the lookouts – Torres, Lopez-Morales, and Sosa-Guevara – who advised them that they could safely come out of the woods and drove them away from the scene.
September 4, 2016 Murder of Josue Amaya-Leonor
Sosa-Guevara and Lopez-Morales pleaded guilty for their roles in the murder of 19 year-old Amaya-Leonor on September 4, 2016. Like the other victims, Amaya-Leonor was lured to a secluded wooded area and killed because of his perceived association with the 18th Street gang. On the evening of the murder, MS-13 members convinced Amaya-Leonor to venture deep into the Roosevelt Preserve, in Roosevelt, to smoke marijuana. Sosa-Guevara was in communication with the gang members by cell phone and was directing them on where to bring the victim. Once there, Amaya-Leonor was surrounded by the MS-13 members who were armed with machetes; he was struck repeatedly, and killed. Thereafter, Lopez-Morales, who was in the immediate area of the murder looking out for police, arrived on the scene and supervised the other MS-13 members as they dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018 – over a year and a half after the murder had occurred.
September 5, 2016 Murder of Marcus Bohannon
Torres pleaded guilty to authorizing the murder of 27-year-old Marcus Bohannon. On September 4, 2016, members of the Sailors clique met at the house of local clique leaders Alexi Saenz and Jairo Saenz, in Central Islip, where Torres directed the gang members to go out hunting for rival gang members to kill. The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until one of the cars spotted Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5. Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting. Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.
October 10, 2016 Murder of Javier Castillo
Torres also pleaded guilty to the murder of 15-year-old Javier Castillo. In October 2016, the MS-13 targeted Castillo because he was believed to be a member of the 18th Street gang. On October 10, 2016, members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana. Torres authorized the members of the clique operating in Brentwood to bring Castillo to his territory in Freeport to be killed. The MS-13 members took Castillo to an isolated marsh area along the water in Cow Meadow Park, in Freeport, where they attacked and killed him, taking turns hacking him with a machete. Torres also served as the lookout for police in the area during the murder. Thereafter, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017.
October 14, 2016 Murder of Carlos Ventura-Zelaya
Sosa-Guevara and Lopez-Morales pleaded guilty to the murder of 24-year-old Ventura-Zelaya, who had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang. On the day of the murder, Ventura-Zelaya was observed at a deli in Roosevelt by a member of the Hollywood clique. Sosa-Guevara mobilized other members of the clique to kill Ventura-Zelaya and conducted surveillance of the victim until the other gang members arrived. The gang members tasked with carrying out the murder first drove to pick up a gun from Lopez-Morales. After obtaining the weapon, the group drove in the direction of the deli to look for and kill the victim. Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, two MS-13 members got out of the car, approached him and one
of them fired multiple times, striking and killing the victim. They then ran back to the car and drove away from the scene.
July 21, 2017 Murder of Angel Soler
Sosa-Guevara and Lopez-Morales also pleaded guilty to the murder of 15-year-old Soler. The MS-13 suspected Soler was an 18th Street gang member, and Sosa-Guevara ordered his murder. Lopez-Morales and other MS-13 members carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana. The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave. The following day, MS-13 members went back to lay cement over Soler’s body, in order to better conceal it. Soler’s remains were recovered in October 2017.
August 2017 Conspiracy to Kidnap John Doe #3
Lopez-Morales and Sosa-Guevara also admitted that, just weeks after the Soler murder, they and other MS-13 members planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara assigned Lopez-Morales and two other MS-13 members to carry out the kidnapping and attack. Lopez-Morales was instructed that, once they had John Doe #3, to wait for further guidance from MS-13 leadership as to whether to kill or brutally assault him. On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, pursuant to court-ordered wiretaps of certain MS-13 members’ cell phones, and Lopez-Morales was taken into custody.
August 29, 2017 Murder of David Rivera
Sosa-Guevara also admitted to his participation in the murder of 16-year-old Rivera in Maryland. To avoid law enforcement in New York, Sosa-Guevara and another Hollywood member from Long Island relocated to Maryland where they connected with the local Hollywood clique. After arriving, Sosa-Guevara learned of a plan to kill a rival gang member and directed the other Long Island member of his clique to participate. On August 29, 2017, Sosa-Guevara drove the other gang member to a park outside of Edgewater, Maryland, for him to participate in the Rivera murder. The victim was brought to that location by other MS-13 members, attacked with machetes and killed. After the murder, Sosa-Guevara drove the member of his clique away from the scene. Rivera’s body was not found until June 7, 2024.
Narcotics Trafficking Conspiracies
Finally, Torres pleaded guilty to conspiring with the members of the Sailors clique to distribute cocaine and marijuana, and Sosa-Guevara and Lopez-Morales pleaded guilty to conspiring with members of the Hollywood clique to distribute marijuana. These charges stemmed from the MS-13 cliques’ street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.
* * * *
These guilty pleas are the latest achievements in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
This prosecution 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.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office and Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.
The Defendants:
VICTOR LOPEZ-MORALES (also known as “Persa”)
Age: 36
Roosevelt, New YorkDAVID SOSA-GUEVARA (also known as “Risky”)
Age: 33
Roosevelt, New YorkKEVIN TORRES (also known as “Quieto” and “Inquieto”)
Age: 29
Freeport, New YorkE.D.N.Y. Docket No. 20-CR-251 (S-1)(JMA)
Tara M. Lyons named Acting U.S. Attorney for Southern District of GeorgiaRead the Press Release
As of January 18, 2025, and by virtue of the Vacancies Reform Act, First Assistant U.S. Attorney Tara M. Lyons is officially Acting U.S. Attorney for the Southern District of Georgia.
Tampa Man Convicted of Sex Trafficking Two Minors and Production of Child Sex Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Dontae Dajuan Burton (40, Tampa) guilty of two counts of sex trafficking of a minor and one count of production of child sex abuse material. Burton faces a minimum sentence of 15 years, up to life, in federal prison. A sentencing date has not yet been set. Burton was indicted on November 12, 2024.
According to the evidence presented at trial, Burton arranged commercial sexual activity for two minors, ages 16 and 17, by creating and posting ads for them on adult escort websites. Burton handled all communications with clients, scheduled dates, determined the amount of money to be paid for the sex acts, and transported the victims to and from the dates. Burton managed the money and kept approximately half of what the clients had paid for the sex acts. Burton also recorded and edited a video of one of the victims performing a sex act on him.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
This case was investigated by Homeland Security Investigations and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Courtney Derry.
South Carolina Man Pleads Guilty to Federal Charges in Connection with the Murder of New Mexico State Police OfficerRead the Press Release
ALBUQUERQUE – Jaremy Smith pleaded guilty today to multiple federal charges in a plea agreement that will result in a federal sentence of life without the possibility of parole.
According to court documents, it is alleged that on March 13, 2024, Smith forcibly abducted a woman from her home in South Carolina, transported her in a stolen vehicle, and fatally shot her with a handgun that he had stolen from her roommate prior to the crime. After committing the murder, Smith fled across state lines to evade prosecution, traveling through Georgia, Alabama, Mississippi, Louisiana, and Texas before entering New Mexico.
On March 15, 2024, in Quay County, New Mexico, Smith fatally shot New Mexico State Police Officer Justin Hare after Officer Hare stopped to assist him with a flat tire. Smith then stole Officer Hare’s police cruiser with the wounded officer inside, driving for several minutes before abandoning the vehicle and the critically injured Officer Hare on a remote road. Officer Hare succumbed to his injuries at a hospital later that morning.
Law enforcement immediately launched a coordinated effort across multiple jurisdictions to locate Smith, and his name and photograph were widely disseminated by media news outlets. Smith was apprehended in Albuquerque on March 17, 2024, by deputies from the Bernalillo County Sheriff’s Office after a gas station employee recognized Smith and contacted law enforcement.
“A life sentence for a life taken does not make our community whole. But the best way to honor Justin Hare’s life is to take care of each other,” said U.S. Attorney Alexander Uballez. “Today, I commit myself to the people of New Mexico. In the memory of a brave State Police officer whose final act was to help another. In honor of the hundreds of law enforcement officers who worked around the clock to protect this community and do justice for their fallen brother. And in the footsteps of the gas station clerks, everyday citizens, who bravely did the right thing in the face of clear and present danger. It is time for us all to join these strangers who did the right thing for people they never met.”
“All too often, first responders are called upon to sacrifice their lives to protect their communities. Smith’s actions have had a devastating, life-long impact on the victim’s families,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “The FBI will continue to work with our partner agencies to use all available resources to make sure that violent and dangerous criminals are pursued to the fullest extent of the law.”
"Officer Hare’s sacrifice exemplifies the unwavering courage of law enforcement.,” said NM DPS Secretary Jason R. Bowie. “This plea underscores our commitment to justice through relentless collaboration across state lines."
"Officer Justin Hare and Ms. Machado-Fore were tragically killed by Jaremy Smith. While nothing can undo this heartbreaking loss, today offers a measure of justice for their friends and family," said Troy Weisler, Chief of the New Mexico State Police. "Thanks to the efforts of our law enforcement partners and the support of the community, Jaremy Smith will never again take a breath as a free man, and that is as it should be."
Smith pled guilty to five counts, including carjacking resulting in death, using and carrying a firearm during a crime of violence, kidnapping resulting in death, being a prohibited person in possession of a firearm, and possession of a stolen firearm.
Smith will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, Smith faces a mandatory life sentence without the possibility of parole. As part of the plea agreement, Smith agreed that the appropriate sentence was lifetime incarceration without the possibility of parole.
The Department of Justice has previously determined that it will not seek the death penalty for Smith for the incidents that occurred in New Mexico.
U.S. Attorney Alexander M.M. Uballez for the District of New Mexico and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office and New Mexico State Police investigated this case with assistance from the Tenth Judicial District Attorney’s Office and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Jack Burkhead are prosecuting the case.
Smith Plea (1).pdf# # #
South Bay-Based Nursing Facilities Chain and Owner Agree to Pay $18 Million to Resolve COVID-Related False Claims Act AllegationsRead the Press Release
LOS ANGELES – Torrance-based skilled nursing facilities chain Unified Care Services LLC, its affiliates, and its owner, Emmanual David, have agreed to pay $18 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly providing false information in support of Paycheck Protection Program (PPP) loan applications and loan forgiveness applications submitted by Unified Care and its affiliates, the Justice Department announced today.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic.
Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business was determined by assessing the employees, revenues, or net worth of the applicant along with all corporate affiliates that shared common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their size and number of employees.
The settlement resolves allegations that Unified Care and its affiliates falsely certified they were small business with fewer than 500 employees when they submitted their PPP loan and loan forgiveness applications in 2020. These applications allegedly failed to disclose that the entities applying were part of a larger chain of facilities that all shared common ownership and control that rendered Unified Care and its affiliates ineligible for PPP loans.
“COVID-relief programs were designed to help people and businesses during the worst public health crisis this nation had seen in one century,” said United States Attorney Martin Estrada. “My office will continue to pursue those who knowingly cheat taxpayers by violating PPP and other pandemic-related programs.”
The Unified Care affiliates covered by the settlement include Unified Care Services LLC; Casa Montana LLC; Geri-Care Inc.; Geri Care V LLC; Pacific Palms Healthcare LLC; Foothill Care Center Inc.; Mount Megiddo LLC; Canyon Properties III LLC; Cloverleaf Enterprises Inc.; Foothill Care Center LLC; Foothill Care Center II LLC; David Kleis III LLC; David Kleis II LLC; Miramonte Enterprises LLC; and Washington Enterprises III LLC.
“PPP loans were intended to assist eligible small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”
“This resolution demonstrates the department’s commitment to ensuring that those who improperly obtain federally guaranteed PPP loans are held accountable and funds repaid to the American taxpayer” said Director of COVID-19 Fraud Enforcement Mandy Riedel of the Justice Department.
“The SBA Office of Inspector General is committed to ensuring the integrity of CARES Act programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General, Western Region. “Through partnerships with federal agencies, we continue to identify fraud schemes and protect relief funds from misuse.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Ashwani Chawla v. Unified Care Services et al., CV 21-5935-GW (CDCA). The whistleblower will receive $2,070,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel (SBA-OGC) and the SBA Office of Inspector General (SBA-OIG).
Assistant United States Attorney Jack D. Ross of the Civil Fraud Section and Senior Trial Counsel Benjamin C. Wei of the Justice Department’s Civil Division handled the matter, with assistance from Mary Cvengros of SBA-OGC and Christopher H. Stephens of SBA-OIG.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal 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 actors committing civil and criminal fraud 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 www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Sioux City Man Sentenced to 16 Years in Federal Prison for Illegal Possession of a Gun and Violation of Federal Supervised ReleaseRead the Press Release
A man on supervised release was sentenced January 16, 2025, to 16 years in federal prison.
Bob Schonrock, age 54, from Sioux City, received the prison term after pleading guilty to one count of possession of a firearm by a felon and drug user, and one count of possession with intent to distribute methamphetamine.
Schonrock has an extensive criminal history including, aggravated battery, grand theft, possession of controlled substance, eluding and possession of a controlled substance (marijuana) in state court, and possession of a firearm by a felon and drug user and possession of a stolen firearm in the United States District Court for the Northern District of Iowa.
Evidence in the case revealed that in November of 2023, Sioux City Police officers conducted a traffic stop on the vehicle Schonrock was operating for an equipment violation. Drug paraphernalia was observed in plain view on the front passenger seat. During a search, a scale with methamphetamine residue was located on Schonrock, and a handgun was found in a tool bag in the back seat of the vehicle. A magnetic container was also located underneath the vehicle adjacent the driver’s door which contained approximately 10.74 grams of methamphetamine.
Officers also located a garage Schonrock was known to use. and upon a search found methamphetamine residue on a countertop adjacent to packaging materials and a plastic bag containing methamphetamine with an approximate gross weight of 483 grams.
Schonrock was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 180 months’ imprisonment, consecutive to 12 months imprisonment for the supervised release violation. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rockwood is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-04081 and 19-04058.
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Shreveport Man and Two Women Sentenced to Federal Prison for Their Involvement in Conspiracy to Distribute Fentanyl Resulting in Death CaseRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that three individuals from Shreveport have been sentenced for their involvement in a drug trafficking conspiracy which resulted in the death of a Shreveport man. United States District Judge Elizabeth E. Foote sentenced the three defendants today.
Martin William Thompson, 53, was sentenced to 240 months (20 years) in prison, followed by 5 years of supervised release.
Rachel Ann Hassell, 47, was sentenced to 121 months (10 years, 1 month) in prison, followed by 5 years of supervised release.
Courtney Renee Cox, 41, was sentenced to 121 months (10 years, 1 month) in prison, followed by 5 years of supervised release.
In addition, Thompson and Cox were ordered to pay $13,234.73 in restitution to the deceased victim's family.
Thompson, Hassell, and Cox were charged in an indictment in April 2022 with conspiracy to distribute fentanyl resulting in death and serious bodily injury, possession with intent to distribute heroin, using or maintaining drug premises and possession of firearms in furtherance of drug trafficking.
In 2021, agents with the U.S. Drug Enforcement Administration (“DEA”) and Caddo Parish Sheriff's Office received information about the distribution of fentanyl and other illegal drugs in the Shreveport area and began an investigation. At the direction of DEA agents, on July 24, 2021, a Louisiana State Police trooper stopped a vehicle being driven by two individuals on Jewella Avenue in Shreveport. During a subsequent search of their car, agents found 1.5 kilograms of methamphetamine, 1.1 kilograms of fentanyl in a brick form, and 639.9 grams of fentanyl pills (over 5,000 pills). Agents learned that these two individuals had mad multiple previous trips to El Paso to purchase narcotics dating back to January 2021. Through their investigation, agents learned that the fentanyl pills were destined for Martin Thompson and that he had purchased the fentanyl.
On May 29, 2021, officers responded to a single car crash in Greenwood, Louisiana, and discovered that the driver was unconscious and not breathing but was otherwise uninjured. Inside the vehicle was the driver’s minor son who was also unharmed. The driver passed away that day and the medical examiner determined his death was caused by a fentanyl overdose. Further investigation by DEA agents proved that the driver had obtained fentanyl from Courtney Cox, who had gotten it from her local supplier, Thompson. Cox later confessed to supplying the deceased victim with the fentanyl she obtained from Thompson. She also admitted that Thompson had warned her that the fentanyl pills were very strong and to only snort a half pill. Cox explained that she passed the warning to her customers, including the deceased victim.
Through further investigation into this drug trafficking conspiracy, Rachel Hassell was arrested in Shreveport in September 2021 for possession with intent to deliver a controlled substance, later determined to be heroin. Following her arrest, DEA agents searched Thompson’s business and discovered more heroin. In total, the lab determined that Hassell possessed 50.864 grams of heroin. Agents obtained a search warrant for Hassell’s cell phone and learned that Thompson was receiving large shipments of fentanyl through another co-conspirator and Hassell began distributing the fentanyl along with Thompson. Numerous text messages were found between Hassell and Thompson concerning the delivery of fentanyl. The text messages showed that the two were working together to distribute the fentanyl, as well as heroin, methamphetamine, and marijuana, and were storing the drugs at his place of business on Williamson Way in Shreveport. Hassell admitted to agents that she and Thompson discussed that the fentanyl pills were very strong, and he should tell his customers to consume only a half pill at a time.
Thompson and Cox each pleaded guilty to the charge of conspiracy to distribute fentanyl resulting in death and serious bodily injury. Hassell pleaded guilty to a Bill of Information charging her with conspiracy to distribute fentanyl, possession with intent to distribute heroin, and using or maintaining drug premises for the purpose of distributing and using fentanyl, heroin, methamphetamine and marijuana.
“This is the first distribution of fentanyl resulting in death conviction obtained in the Western District of Louisiana,” said U.S. Attorney Brandon B. Brown. “Fentanyl is a very dangerous drug and just a few grains of the substance can have deadly consequences which is unfortunately what happened in this case. We will continue to vigorously prosecute those who possess this drug, and any other illegal controlled substances, and will work closely with all of our law enforcement partners to disrupt these traffickers, stopping them in their tracks.”
The case was investigated by the U.S. Drug Enforcement Administration, Caddo Parish Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police, and Shreveport Police Department and prosecuted by Assistant United States Attorney Robert F. Moody.
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Sex Offender Admits Child Exploitation Offenses, Threatening MinorsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GREGORY BUTTS, 54, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a child exploitation offense.
According to court documents and statements made in court, in April 2016, Butts was convicted in Connecticut state court of illegal sexual contact with a child.
In November 2020, family and friends of two missing juveniles in Colorado posted information about the missing juveniles on social media pages and included a phone number asking the public to call with information. Butts, with his own phone number blocked, called the number and spoke to a female friend of the missing juveniles, who recorded the conversation. Butts stated that he was with the missing juveniles and had had sexual contact with them. He threatened to harm the missing juveniles if the conversation were recorded or if law enforcement were contacted, and threatened the female friend who answered the phone. He then said that he would return the missing juveniles if the female friend would have sexual intercourse with him. Shortly after the juveniles had been reported missing, they returned home. They were not harmed and had not been kidnapped.
Investigators determined that the call emanated from a lightly-populated area in Sprague, Connecticut, and that Butts was a registered sex offender living in the area who was on probation following a state conviction for illegal sexual contact with a minor. After a Connecticut probation officer identified Butts’ voice on the recording, probation officers searched Butts’ residence and another residence where he also had been staying and seized a computer, storage devices, multiple cell phones and other items.
Forensic analysis of the seized items revealed more than 10,000 images and videos of child pornography, and downloaded conversations Butts had with minors on Snapchat and other social media applications. In the chats, Butts engaged in sexually explicit conversations, made numerous threats and demanded, and sometimes received, sexually explicit photos.
Butts pleaded guilty to possession of a child pornography, which, based on his criminal history, carries a mandatory minimum term of imprisonment of 10 years and maximum term of imprisonment of 20 years.
Butts has been detained since March 4, 2022.
This investigation has been conducted by the Federal Bureau of Investigation in New Haven, Connecticut and Loveland, Colorado, with the assistance of the Connecticut Office of Adult Probation, Connecticut State Police, and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Daniel E. Cummings.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of New London for its close cooperation in investigating and prosecuting this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
San Antonio Man Sentenced in Child Porn CaseRead the Press Release
San Antonio, Texas – A San Antonio man was sentenced yesterday to 15 years in Federal prison, lifetime supervised release, to pay $94,000 to 14 victims, forfeit all devices and online accounts used to obtain or possess child exploitation material and pay a $100 special assessment to the Victim of Crimes Fund for obtaining and storing child sexual abuse materials.
According to court documents, Ignacio Sanchez Mendoza, III, 42, was discovered using the dark-web to obtain child sexual abuse material and Department of Homeland Security investigators executed a search warrant at his home in San Antonio and found devices containing child sexual abuse materials. Mendoza was previously convicted of possessing child pornography in Bexar County in 2004 making his federal mandatory minimum sentence 15 years.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. He said: “Child sexual abuse material is not only harmful to the victims and dangerous to our society, but is often extremely addicting for some people. People like the defendant who have a sexual interest in children often refuse to stop exploiting these children despite prior incarceration and treatment. That is why the US Attorney’s Office for the Western District of Texas prioritizes these crimes and those that prey on the most vulnerable in our society.
The Department of Homeland Security Investigations in both Boston and San Antonio investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
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Sacramento Man Sentenced to 15 Years in Prison for Armed Bank RobberiesRead the Press Release
RENO – A Sacramento, Calif., resident was sentenced yesterday by United States District Judge Miranda M. Du to 15 years in prison to be followed by five years of supervised release for committing two armed robberies of financial institutions.
Devon Jones, 32, pleaded guilty to one-count each of interference with commerce by robbery, bank robbery, and discharging a firearm during and in relation to a crime of violence.
According to court documents and admissions made by Jones, on January 24, 2022, he robbed a money lending business in Reno. During the robbery, he pointed a semi-automatic 9mm pistol at an employee and demanded money. Jones then fired a round and fled the scene with cash. Later, on January 27, 2022, Jones robbed a bank in Carson City. After he entered the bank, he started yelling and fired a shot. Then, he approached a teller and demanded money. Jones fired another shot after noticing alarm lights flashing. He ordered all the employees to the ground and fired another shot before leaving the bank with the stolen cash.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the FBI. Assistant United States Attorney Megan Rachow prosecuted the case.
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Registered Sex Offender Indicted for Transporting and Possessing Child Sexual Abuse Material and AI Generated Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Oxley (52, Polk City) with transportation and possession of child sex abuse material and possession of obscene visual depictions of minors engaging in sexually explicit conduct. If convicted, Oxley faces a maximum penalty of 40 years in federal prison for transporting child sex abuse material and up to 20 years in federal prison for the possession and AI offenses. The indictment also notifies Oxley that the United States intends to forfeit a cellphone, which was used in the commission of the offense.
According to court documents, on December 22, 2024, Oxley entered the Tampa seaport on board a cruise ship. The ship had traveled to two destinations in Mexico before returning to Tampa. Between December 17 and 22, 2024, Oxley transported child sex abuse material. Agents from U.S. Customs and Border Protection conducted a search of Oxley’s cellphone, which he had traveled with, and observed images and videos of child exploitation. Beginning on an unknown date and continuing to December 22, 2024, Oxley possessed images and videos of minors engaged in sexually explicit conduct, including minors under 12 years of age. He also possessed AI generated images that appeared to depict minors engaged in sexually explicit conduct. Oxley is a registered sex offender, have previously been convicted in 2012 of three counts of possessing images showing the sexual performance by a child, in violation of Florida state laws.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was 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.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
Putnam Valley Husband and Wife Sentenced to Prison for Operating Prostitution Businesses at Multiple Massage Parlors in New YorkRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that HONG RU LIN, a/k/a “Bruce,” and KENA ZHAO, a/k/a “Angela,” were each sentenced by U.S. District Judge Kenneth M. Karas to prison for violating the Travel Act by operating prostitution businesses at multiple massage parlors in Putnam, Westchester, New York, and Queens County. ZHAO was sentenced on January 10, 2025, to 12 months and one day in prison, and LIN was sentenced today to 12 month and one day in prison. LIN and ZHAO also forfeited over $1.3 million representing proceeds derived from their prostitution scheme.
Acting U.S. Attorney Edward Y. Kim said: "Hong Ru Lin and Kena Zhao operated an extensive prostitution business, using massage parlors as cover for their illegal activities. Today’s sentences hold them accountable for their actions. This Office will continue to investigate those who sponsor illegal prostitution, even if their criminal activities take place behind the closed doors of supposedly legitimate businesses.”
According to the charging documents, public court filings, and statements made in court:
Between at least September 2020 and September 2023, LIN and ZHAO operated a prostitution business out of multiple massage parlors that they owned in Putnam, Westchester, New York and Queens County. LIN and ZHAO managed a roster of women who worked at the massage parlors and performed sexual acts for the customers of LIN and ZHAO. LIN and ZHAO communicated by cellphone and private chatroom to manage and operate their prostitution business. Among other things, LIN and ZHAO used cellphones to communicate with potential customers, assign particular employees to customers, monitor the income of their prostitution business, and set performance goals for the women who worked in the massage parlors. In addition, on at least one occasion, ZHAO personally participated in a massage during which a sexual act was offered to a customer.
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In addition to the prison terms, LIN, 51, and ZHAO, 46, of Putnam Valley, New York, were both sentenced to two years of supervised release and agreed to forfeit the massage parlors’ bank accounts, various assets and cash proceeds derived from the massage parlors, and a $1.3 million money judgment.
Mr. Kim praised the outstanding work of the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force and the Putnam County Sheriff’s Office. Mr. Kim also thanked the Town of Carmel Police Department, the Westchester County Police Department, and the Yonkers Police Department for their assistance in this matter.
The case is being prosecuted by the Office’s Civil Rights Unit in the Criminal Division and the White Plains Division. Assistant U.S. Attorneys Ryan W. Allison, Jamie Bagliebter, and Margaret N. Vasu are in charge of the prosecution.
Prolific fraudster pleads guilty to multiple scams that resulted in over $600,000 in lossesRead the Press Release
ALEXANDRIA, Va. – A Washington man pled guilty today to conspiracy to commit wire fraud and aggravated identity theft.
According to court documents, from at least January 2021 through April 2022, Marco Raquan Honesty, 28, engaged with co-conspirators in a number of fraud schemes including defrauding COVID relief programs, “smishing” scams, forged money orders, creating fake IDs and vehicle titles, a bank account takeover scheme, and selling stolen financial information online.
From at least April through October of 2021, Honesty conspired to defraud the Paycheck Protection Program (PPP), which provided loans that were supposed to help eligible businesses cover specific permissible business expenses, such as making payroll payments. Honesty and his co-conspirators submitted fraudulent PPP loan applications for non-existent sole proprietorships. Honesty obtained kickback payments or fees from some of the PPP loans that he helped obtain, sometimes receiving payment of $10,000 per fraudulent PPP loan.
Honesty and his co-conspirators submitted at least 16 first draw and nine second draw PPP loan applications, all of which were funded by the Small Business Association (SBA). Honesty and his co-conspirators also created false tax returns, including 2019 1040 Schedule C IRS Forms, to support the fraudulent PPP loan applications. A total of 15 individuals were involved in the fraudulent scheme, which resulted in a total loss of $509,069.00 to the SBA. Honesty procured PPP loans through this scheme for himself, his father, his two sisters, his grandmother, his cousin, the mother of his children, and various other friends and associates.
Honesty engaged in a “smishing” scheme, short for “SMS phishing,” where he used a website that was spoofed to resemble a legitimate bank website. Honesty would send victims text messages crafted to appear to be from a bank, and typically included a link to the website in the message. Typically, the fraudulent text message alerted the victim of an unauthorized transfer of the victims’ funds. Victims would click the link in the text message and enter their username and password into the fraudulent website, allowing Honesty to obtain the victims’ usernames and passwords.
Honesty used one smishing victim’s information to complete a purchase with the Texas Department of Motor Vehicles for temporary permits in support of a scheme to defraud car dealerships by providing fraudulent identification documents, cashier’s checks, and insurance documents for ostensible car purchases. From January through June of 2021, Honesty created fraudulent IDs to sell to other individuals, who in turn supplied these fraudulent documents to dealerships and attempted to purchase vehicles.
From December 2021 to January 2022, Honesty engaged in a scheme in which he purchased large quantities of Western Union money orders, typically for one dollar each, then scratched the true amount off the money order and used computers, software programs, and printers to manipulate the money orders to reflect larger amounts, typically $500, $900, or $1,000. After the money orders were altered, Honesty deposited them into ATMs at various banks. In some instances, Honesty coordinated with co-conspirators to deposit the money orders and withdraw the proceeds quickly before the banks could determine that the money orders had been altered and reverse the deposits. Honesty conspired to deposit at least $79,700 of fraudulent money orders.
Honesty operated a Telegram channel called “Heavenly Logs” with the username @Criptonic831, on which he advertised stolen credit cards, stolen checks, stolen bank log-in information, and other fraud-related contraband for sale to his followers. Honesty also orchestrated an account takeover scheme in which he gained access to victim accounts and, without the knowledge or permission of the account owner, transferred money to himself and his co-conspirators via payment platforms such as Zelle and intrabank transfers.
On Sept. 7, 2023, law enforcement searched Honesty’s residence. Among other things, agents seized 24 cellphones, three laptops, blank Social Security card templates, a 16-pound box of blank IRS 1099 forms, Virginia temporary vehicle tags, multiple SIM cards for cellphones, a credit card embossing machine, blank cards with microchips, a credit card reader, a debit card in the name of an unrelated person, and a check stolen from an unrelated person.
The known attempted loss for all of Honesty’s fraud schemes combined is $850,204.64. The actual known loss amount of the schemes is $621,958.50.
Honesty is scheduled to be sentenced on May 23 and faces a up to 20 years in prison for wire fraud and a mandatory term of two years in prison for aggravated identity theft to be served consecutively with any other term of imprisonment imposed. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Kathleen Robeson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-3.
Pittsburgh Resident Sentenced to Three Years in Prison for Failure to Register as Sex OffenderRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 36 months of imprisonment on his conviction of violating federal sex offender registration laws, United States Attorney Eric G. Olshan announced today.
United States District Judge W. Scott Hardy imposed the sentence on Terry Bonner, 30, on January 16, 2025.
According to information presented to the Court, Bonner previously pleaded guilty and was convicted of First Degree Criminal Sexual Abuse while living in the State of Alabama, resulting in a requirement for Bonner to register under the Sex Offender Registration and Notification Act (SORNA). As part of his guilty plea in that case, Bonner was notified that he was required to register as a sex offender in the jurisdiction in which he resides.
Bonner moved to Pennsylvania and lived in the City of Pittsburgh between December 2022 and April 2023. During that period, Bonner failed to take any steps to update his registration with local law enforcement officials as required for a sex offender under SORNA. Court records in Alabama showed that Bonner also had been convicted multiple times for failing to register in that state.
Prior to imposing sentence, Judge Hardy stated that Bonner’s conduct was particularly serious because of his lengthy criminal history, history of violence, and repeated willful disregard for his registration requirements. Judge Hardy stated that SORNA requirements exist to keep communities safe from violent sex offenders with histories like Bonner’s, and that he hoped that a sentence of 36 months in federal prison would finally impress upon Bonner, and all sex offenders subject to SORNA, that they must take their obligation to register seriously or face severe consequences.
Assistant United States Attorney Benjamin C. Dobkin prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the United States Marshals Service and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Bonner.
Pittsburgh Felon Sentenced to More Than 11 Years in Prison for Fentanyl, Cocaine, and Firearms ViolationsRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 135 months in prison, to be followed by five years of supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Willie Blair Jr., 43, on January 14, 2025.
According to information presented to the Court, in early October 2022, Blair possessed with intent to distribute more than one kilogram of a mixture and substance containing fentanyl, in addition to attempting to possess with intent to distribute more than two kilograms of a mixture and substance containing cocaine. He also possessed a firearm and ammunition as a convicted felon. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
After being led to Blair’s residence through a suspicious United States Postal Service parcel containing approximately two kilograms of cocaine that was addressed to the residence, law enforcement executed a search warrant upon the home and Blair’s vehicle, recovering a total of approximately 1,262.8 grams of fentanyl as well as a kilogram press and packaging and cutting material consistent with drug trafficking. In the main bedroom, law enforcement also found a loaded Glock pistol and various ammunition. Blair admitted that the fentanyl, drug trafficking tools, and pistol and ammunition all belonged to him and to being a multi-kilogram distributor of fentanyl and heroin, as well as to attempting to possess with intent to distribute the cocaine seized from the USPS parcel. Blair had several previous felony convictions for controlled substances, including a federal conviction for conspiracy to possess with intent to distribute and distribution of heroin.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service, Drug Enforcement Administration High Intensity Drug Trafficking Areas Task Force, Pennsylvania Office of Attorney General, and Pennsylvania State Police for the investigation that led to the successful prosecution of Blair.
Pine Ridge Man Sentenced to Federal Prison for 10 Years for Conspiracy to Distribute Fentanyl in Indian CountryRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance.
Benny Benson, age 22, was sentenced on January 3, 2025, to ten years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Benson was indicted by a federal grand jury in November 2023, and pleaded guilty on October 16, 2024.
Benson’s conviction stemmed from his involvement in a large-scale fentanyl and cocaine distribution operation on the Pine Ridge Reservation. During the conspiracy Benson distributed over 900 grams of fentanyl and approximately 210 grams of cocaine on the Pine Ridge Reservation. He was a supervisor of the conspiracy and possessed a firearm during his involvement.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Benson was immediately remanded to the custody of the U.S. Marshals Service following his sentencing.
Pharmacist guilty in $110 million dollar kickback conspiracyRead the Press Release
McALLEN, Texas – A 55-year-old McAllen man has pleaded guilty to conspiring to pay kickbacks in exchange for prescription referrals, announced U.S. Attorney Alamdar S. Hamdani.
John Ageudo Rodriguez, a licensed pharmacist, owned and operated a pharmacy in Pharr called Pharr Family Pharmacy.
Rodriguez admitted he paid kickbacks in excess of $24 million to various marketers. The marketers had relationships with physicians and clinics and could cause prescriptions for expensive compound drugs to be referred to Rodriguez’s pharmacy.
During the time of the conspiracy, from 2014 to 2016, Rodriguez’s pharmacy billed more than $110 million to various federal health care benefit programs for compound drugs.
Rodriguez’s guilty plea follows guilty pleas of numerous other marketers involved in the prescription drug kickback scheme.
Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for March 25. At that time, Rodriguez faces up to five in federal prison as well as a possible $250,000 maximum fine.
Rodriguez was permitted to remain on bond pending that hearing.
The U.S. Postal Service – Office of Inspector General (OIG), Department of Labor – OIG, FBI, Department of Defense – Defense Criminal Investigative Service, Department of Veteran Affairs – OIG, Department of Health and Human Services - OIG and Texas Health and Human Services - OIG conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Perris Man Sentenced to 12 Years in Prison for Possessing Kilograms of Methamphetamine and Illegally Possessing Firearms and AmmoRead the Press Release
LOS ANGELES – A Riverside County man was sentenced today to 144 months in federal prison for possessing while intending to distribute kilogram quantities of methamphetamine and for illegally possessing firearms and ammunition.
Alvaro Hector Martinez, 33, of Perris, was sentenced by United States District Judge Fernando L. Aenlle-Rocha.
Martinez pleaded guilty in June 2023 to one count of possession with intent to distribute methamphetamine and one count of being a felon in possession of firearms and ammunition.
In February 2021, Martinez – acting at the direction of a Sinaloan drug trafficker – sold approximately 872 grams of methamphetamine to a buyer. The following month, law enforcement conducted a traffic stop on Martinez. In his car, Martinez possessed 35 packages containing approximately 15.4 kilograms (34 pounds) of pure methamphetamine, which he intended to distribute.
Following the traffic stop, law enforcement executed a search warrant at a residence where DEA agents had observed Martinez departing with the drugs. There, they found five containers of methamphetamine weighing approximately 8.5 kilograms (18.7 pounds), three firearms, and 38 rounds of ammunition. Martinez admitted in his plea agreement to knowingly possessing the firearms and ammunition.
Martinez is not legally permitted to possess firearms or ammunition because of his criminal history, which includes felony convictions in Los Angeles Superior Court in 2014 for grand theft and possession of a firearm by a felon.
The Drug Enforcement Administration investigated this matter.
Assistant United States Attorney Amanda B. Elbogen of the Terrorism and Export Crimes Section prosecuted this case.
Orlando Man Arrested for Transportation of Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Matthew A. Inman (39, Orlando) with transportation of child sex abuse material. If convicted, Inman faces a minimum penalty of 5 years, up to 20 years, in federal prison.
According to the complaint, between August and October of 2024, Inman received and saved several videos of child sexual abuse material (CSAM) to his phone. These videos depicted adults sexually assaulting young children. In October 2024, Inman traveled to Las Vegas and began talking online with an undercover law enforcement officer posing as the father of a 9-year-old boy. During this conversation, Inman expressed interest in meeting and sexually assaulting the purported child. He also sent CSAM videos to the undercover officer.
The FBI obtained a search warrant for Inman’s electronic devices and residence. During the execution of the search warrant, Inman attempted to delete the evidence from his phone and hide in the attic of his house.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney Richard Varadan.
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.
On Last Day, United States Attorney Markenzy Lapointe Reflects on the District’s AccomplishmentsRead the Press Release
Today is my last day as United States Attorney for the Southern District of Florida. Since announcing my resignation, I have continued reflecting on my experiences over the past two years – ones made extraordinary by the attorneys, support professionals, and law enforcement partners who serve the Southern District of Florida. I am proud of the office’s many accomplishments and take this opportunity to share some of those.
National Security and Hate Crimes
The office protected our nation and local communities from security threats, both foreign and domestic. For example, we have secured convictions against six individuals (five of whom received life sentences) in an ongoing prosecution charging defendants for their roles in planning and carrying out the assassination of a sitting head of state: then-Haitian president Jovenel Moïse. In addition, we charged a defendant with attempting to assassinate a major presidential candidate (now United States President-elect Donald J. Trump) in the weeks leading up to the 2024 election.
The office obtained a conviction and significant prison sentence for Victor Manuel Rocha, a former United States diplomat and National Security Council member who betrayed his oath to our country by operating as a covert agent of the Cuban government; successfully prosecuted a South Florida man for attempting to bomb the New York Stock Exchange; and secured decades-long prison sentences for two former Colombian soldiers turned armed revolutionaries who attempted to kill United States military personnel with a car bomb outside a base at the Colombia-Venezuela border.
We combatted hate crimes too, using both enforcement and outreach. For example, the office successfully prosecuted the woman who made anti-Semitic phone threats to the former Executive Director of Pittsburgh’s Tree of Life Synagogue, as well as the man who assaulted a Muslim United States Postal Service employee while she delivered mail wearing her hijab.
The office collaborated with local law enforcement, religious, and other leaders to teach our communities to identify, prevent, and report hate crimes. We used town hall events, print and social media, a public service announcement, and other channels to communicate our message.
Violent Crimes, Narcotics Trafficking, and Firearms Crimes
As strong as the office’s commitment to battling national security and hate crimes, was its commitment to battling violence, gun crimes, and narcotics trafficking. The office put behind bars the South Florida kidnappers who dumped their victims (two of whom died) on the side of a road after torturing them. We did the same with another kidnapper who held a rideshare driver at gunpoint during a forced cross-country trip. In a case that involved murder contracts, arson, poisoning, and other violence, the office charged several men with furthering a Miami real estate mogul’s terror campaign against the wife he wanted dead.
We combatted gun crimes by aggressively prosecuting international firearms smugglers, unlicensed dealers, and felons who illegally possessed these weapons. From January to May 2024 alone, we indicted 13 defendants on federal gun offenses and seized over 140 firearms.
Stopping domestic and transnational narcotics traffickers from flooding our communities with their poison was a top priority. For example, we sent seven Sinaloa Cartel members and associates to prison for fentanyl, methamphetamine and cocaine trafficking. The office is also part of a team prosecuting Ismael “El Mayo” Zambada Garcia, one of the cartel’s leaders. When a former British Virgin Islands Premier worked with others to traffic cocaine into our country and launder money, we successfully prosecuted him: a jury found him guilty and a judge sentenced him to 11 years in prison.
On deadly fentanyl, we attacked every link of the supply chain. The office charged Chinese chemical manufacturing companies and Chinese nationals with trafficking fentanyl precursor chemicals into the United States. We secured convictions and decades-long prison sentences for fentanyl distributors and dealers whose product killed people, including a baby.
Our asset forfeiture and civil division lawyers battled the drug trade from a financial angle. We secured millions in forfeiture judgments against international drug trafficking organizations (including a vast one headquartered in the Dominican Republic), whose members laundered dirty money through real estate purchases, sophisticated bank transactions, and other means. We also achieved a $475 million settlement in a False Claims Act civil lawsuit claiming that a drug manufacturer had falsely marketed its opioid product as abuse-resistant, knowing that it was, in fact, highly addictive and easy to abuse.
Financial Frauds, Cyber, and Corruption Crimes
We prosecuted hackers, doctors, business executives, local law enforcement personnel, foreign officials, and others on crimes ranging from cyber, identity theft, and insider trading to the full panoply of frauds: health care, securities, Ponzi schemes, mortgage, tax, cryptocurrency-related, and more.
In a cybercrimes case with worldwide impact, the office was part of the prosecution team that disrupted Blackcat, the sophisticated ransomware group whose remote kidnappings of sprawling computer networks, including ones supporting critical American infrastructure, caused tens of millions of dollars in losses to victims around the world. As a result of our work, victims were able to proceed with their data and network operations.
In a fraud case that sounded patient-safety alarm bells at nursing schools, licensing boards, and medical facilities across the country, the office successfully prosecuted dozens of fraudsters involved in a scheme to sell fake school diplomas and transcripts to aspiring nurses.
On health care fraud matters, the work of our civil division was impressive. For example, the office successfully litigated a False Claims Act civil lawsuit alleging that a Florida man and his laboratories conspired to fraudulently bill Medicare for cancer genomic tests that were medically unnecessary and procured through illegal kickback payments. The owner of the laboratories agreed to pay over $27 million to settle the case.
The office also held accountable criminals who defrauded Covid-19 pandemic relief programs, stealing money intended for small business owners and others who economically struggled during the pandemic. In the last two years alone, criminal prosecutors have charged many defendants, including dozens of officers and staff employed with local law enforcement and corrections departments: Broward Sheriff’s Office, Miami-Dade Police Department, City of Miami Police Department, Florida Department of Corrections, and Miami-Dade Corrections and Rehabilitation Department. Civil division litigators have recovered over $9.6 million, and asset forfeiture division litigators have secured multi-million-dollar forfeiture orders, in pandemic-related fraud cases.
Corrupt government officials who abused their power faced justice in this district. In one matter, we secured a conviction against a City of Miami police officer who illegally stopped vehicles to steal kilograms of cocaine and drug cash. In another, the office successfully prosecuted a former comptroller general of Ecuador (whose job it was to protect public funds and root out corruption in that country) for soliciting and taking over $10 million in bribes and laundering it through Miami real estate purchases and bank transactions. Following a three-week jury trial, guilty verdict, and asset forfeiture trial in that case, Carlos Ramon Polit Faggioni was sentenced to a decade in prison and ordered to forfeit $16.5 million. We also secured a conviction against his son, a former Miami banker, for his part in the scheme.
The office expanded enforcement efforts for certain non-violent crimes by launching a Whistleblower Non-Prosecution Pilot Program with twin goals: helping to identify high-level offenders within significant governmental and private organizations and encouraging organizations to develop robust compliance programs.
Human Trafficking and Child Exploitation Matters
The office aggressively combatted human trafficking and child exploitation, using enforcement and outreach. We secured a 30-year prison sentence against a cruise ship employee who used hidden cameras planted in staterooms to secretly record children; a 15-year prison sentence for a Miami attorney and former prosecutor who solicited minors online; long prison terms (14 and 30 years) for cross country sex-traffickers; and a conviction against a man who forced women and girls into commercial sex acts through beatings, near-drownings, food deprivation, and other violence and intimidation.
Through a public service announcement, visits to schools and community centers, and other engagement, we warned parents and children about the dangers of online sex crimes and offered tips to identify and prevent them. Interacting with the community has been one of the most meaningful parts of this job.
Moving Forward
Beginning January 18, 2025, First Assistant United States Attorney Michael S. Davis, who has served the office for over 30 years, will be Acting United States Attorney. Having witnessed the passion, dedication, and commitment that the members of the office bring to their jobs – including the 45 lawyers we hired despite budget challenges – I know that I leave the district in strong and capable hands.
-Markenzy Lapointe
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Omaha Man Sentenced for Conspiracy to Distribute Fentanyl AnalogueRead the Press Release
United States Attorney Susan Lehr announced that Keith Fox, age 51, of Omaha, Nebraska, was sentenced January 16, 2025, in federal court in Omaha for conspiracy to distribute and possess with intent to distribute 10 grams or more of fentanyl analogue. United States District Judge Brian C. Buescher sentenced Fox to 60 months’ imprisonment. There is no parole in the federal system. After Fox is released from prison, he will begin a 5-year term of supervised release.
In September 2023 a confidential informant (CI) working with the DEA Overdose Task Force purchased 7.5 grams of fentanyl analogue from Fox. Fox was known as “Shorty” on the streets and was selling powder fentanyl, which is even more potent than the M30 pills. In December 2023 the CI purchased another eight grams of powder fentanyl analogue from Fox. Both buys took place in Omaha, Nebraska.
This case was investigated by the Drug Enforcement Administration’s Overdose Drug Task Force, which is comprised of law enforcement from the Drug Enforcement Administration, Omaha Police Department, Nebraska State Patrol, and Douglas County Sheriff’s Office.
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Oakland Money Services Business Owner Sentenced to One Year in Prison for Conspiracy to Commit Money LaunderingRead the Press Release
OAKLAND – Jose Luis Garcia, the co-owner of Envios Express, a money transmitting business in Oakland, was sentenced this week to 12 months in federal prison. The Honorable Haywood S. Gilliam, Jr., United States District Judge, handed down the sentence on Jan. 15, 2025.
Garcia, 57, of Oakland, was indicted in July 2023 and pleaded guilty in September 2024 to one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h).
According to court documents and Garcia’s plea agreement, Garcia and his wife, who was also charged in this case, owned a money transmitting business on International Boulevard in Oakland that operated under several names, including Envios Express. The business was a local agent of and contracted with national wire service companies to provide wire transfer services to the public. As a local agent, Garcia had access to wire services that facilitated the transfer of funds from Oakland to other parts of the United States, Mexico, Honduras, and other foreign countries.
Garcia completed annual Anti-Money Laundering training through these wire service companies. As the designated anti-money laundering compliance officer for Envios Express, he agreed to monitor the store’s outgoing wires for structuring activity intended to evade reporting requirements. Garcia admitted using fake sender names and IDs to process multiple structured wires to conceal the fact that a single sender was wiring amounts greater than $3,000, which he knew would have triggered mandatory federal reporting requirements. He accepted large amounts of cash, sometimes as much as $9,000 or more, from unidentified customers, who asked that the cash be wired to well-known drug trafficking areas of Mexico or to persons in Honduras, without recording the true identity of the sender. Garcia misused the names and IDs of legitimate customers to send large amounts of cash for unidentified customers in order to evade reporting requirements. He also kept roughly 15,000 digital images of California driver’s licenses and Honduran, Mexican, and other national identity cards on cell phones, which he used to meet the wire companies’ ID requirements.
In August 2022, Garcia agreed to a request by a confidential source to wire $9,200 in cash to recipients in Mexico without providing an ID or using the sender’s real name as federal law requires. Garcia structured the $9,200 in cash in four wires, using fake names for the sender on the receipts, and charged an under-the-table fee of $50 for each of the wires.
In addition to the prison term, Judge Gilliam ordered the defendant to serve three years of supervised release.
United States Attorney Ismail J. Ramsey, IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Oakland Field Office Linda Nguyen, and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Bob P. Beris made the announcement.
This prosecution 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.
Assistant United States Attorneys Daniel Pastor and Nicholas Parker are prosecuting the case with assistance from Amanda Martinez and Andy Ding. The prosecution is the result of an investigation by IRS-CI and DEA.
New York Man Who Tried to Withdraw Money from Massachusetts Bank Accounts Using Fake Passports Pleads GuiltyRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to using counterfeit United States passport cards in the name of three Massachusetts residents in order to withdraw money from their bank accounts.
Jean Andre Bontiffe, 41, pleaded guilty to three counts of bank fraud, one count of forgery or false use of a Passport and one count of aggravated identity theft. Chief U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for May 6, 2025. Bontiffe was previously charged by criminal complaint in October 2023.
On Aug. 9, 2022, Bontiffe was arrested in New York for attempting to pass through TSA screening at LaGuardia Airport using a counterfeit California driver’s license in the same name as one of the Massachusetts victims. A subsequent investigation revealed that, between July 20 and July 22, 2022, Bontiffe traveled to Massachusetts from New York, and made nine attempts to withdraw money from bank accounts that belonged to three victims from Massachusetts – stealing a total of $13,800. On July 20, 2022, Bontiffe entered a TD Bank branch in North Andover, Mass. and presented a United States passport and a Discover credit card, both in the name of a Massachusetts resident who had an account at the bank, as proof of identity and attempted to withdraw $4,500 from that account. Due to unmatched signatures, the bank denied the transaction and confiscated the passport and credit card prior to Bontiffe fleeing the scene.
The charge of making or using a forged passport provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed. 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 Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Paul Creazzo, Chief of the Mamaroneck (New York) Police Department made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.New Orleans Man Given Maximum Sentence for Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MAURICE FLORANT (“FLORANT”), age 34, formerly a resident of New Orleans, was sentenced today by U.S. District Judge Carl J. Barbier to 180 months imprisonment after previously pleading guilty to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1). The sentence, 180 months, is the maximum statutory sentence allowed. Judge Barbier also ordered that FLORANT be placed on supervised release for three (3) years following his release from imprisonment and pay a mandatory $100 special assessment fee.
Court documents reveal that on September 5, 2022, FLORANT, a convicted felon, and another unknown individual, were seen on a home video camera shooting at two individuals with two pistols while driving in New Orleans in a stolen vehicle. Four days later, FLORANT was seen in a different stolen vehicle by Jefferson Parish Sheriff’s Office (JPSO) deputies but fled when they attempted to stop him. A high-speed chase ensued that ended when FLORANT crashed into an exterior air conditioning unit of an apartment complex. FLORANT ran from deputies but was eventually arrested. A Palmetto State Armory Model PA-15, .556 caliber pistol, and a CZ Scorpion Model EVO 3 S1, nine-millimeter pistol were recovered from the stolen car FLORANT was driving. Ballistic testing revealed that the shell casings found at the scene of the shooting matched the shell casings from the pistols found in the stolen car FLORANT was driving. The Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted JPSO and the New Orleans Police Department in the investigation.
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.
United States Attorney Evans praised work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Narcotics Unit handled the prosecution.
New Mexico Man Pleads Guilty to Federal Criminal Charge for Setting a Fire at San Bernardino County Church and Preschool Last YearRead the Press Release
LOS ANGELES – A New Mexico man pleaded guilty today to setting on fire a San Bernardino County church and preschool last year while children and school employees were inside.
Jonathan A. Barajas Nava, 37, of Albuquerque, New Mexico, pleaded guilty to a single-count superseding information charging him with damage to religious property.
"This defendant's violent actions against a religious property put lives - including those of children - in danger," said United States Attorney Martin Estrada. "I commend our federal and local partners for working together to arrest and prosecute this individual, whose criminal acts could have caused a much larger tragedy."
According to his plea agreement, on April 24, 2024, Nava set fire to the Retreat Church and Yucaipa Christian Preschool in Yucaipa. Before setting the church on fire, Nava traveled to a nearby gasoline station and purchased a gasoline can and filled it with gasoline. He then traveled to the church with the can and poured the liquid on the church’s front door. Then, he used an open-flame device to set the area on fire.
The resulting fire damaged the church’s interior carpet, the doorframe seal, and an outdoor mat. Staff and children inside evacuated the building.
Nava then traveled to a nearby strip mall and set fire to the exterior wall, which resulted in no damage.
Nava admitted in his plea agreement that he set fire to the church because of its religious character.
Nava was arrested on April 24 and was charged in state court prior to a federal criminal case being brought against him.
United States District Judge John F. Walter scheduled a March 31 sentencing hearing, at which time Nava will face a statutory maximum sentence of 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Department of Forestry and Fire Protection; and the San Bernardino County Sheriff’s Department investigated this matter.
Assistant United States Attorneys Austin D. Young and Peter Dahlquist of the Riverside Branch Office are prosecuting this case.
New Jersey Company Admits Clean Water Act Violations, Causing Fish Kill in CheshireRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, announced that NATIONAL WATER MAIN CLEANING COMPANY (“NWMCC”) waived its right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a felony violation of the Clean Water Act (“CWA”) for knowingly discharging a pollutant into Cuff Brook while refurbishing a large culvert pipe in Cheshire, Connecticut, in July 2019. The unauthorized discharge of uncured geopolymer mortar killed more than 150 fish and contaminated Cuff Brook.
NWMCC is based in New Jersey and owned by Carylon Corporation based in Chicago, Illinois. Under the terms of its plea agreement, if accepted by the court, NWMCC will be under federal probation for three years, and must pay a $500,000 federal penalty and $500,000 to fund aquatic ecosystem enhancement projects in the South Central Coastal Watershed, as administered by the Connecticut Department of Energy and Environmental Protection (“CT DEEP”).
According to court documents and statements made in court, NWMCC had submitted the lowest bid and entered into a contract with the Town of Cheshire (“Cheshire”) to repair a decaying 11-foot culvert pipe underneath Marion Road. Cheshire’s project specifications required that the work be done under dry conditions along with environmental controls to prevent uncured geopolymer mortar from leaking into Cuff Brook.
With a Cheshire Department of Public Works (“DPW”) representative present each day, NWMCC began work on July 15, 2019. However, from July 16 to July 18, 2019, NWMCC sprayed geopolymer mortar onto the culvert pipe without the mandated environmental controls. On July 17, 2019, NWMCC crews continued to work despite heavy rain, which led to uncured geopolymer mortar seeping into Cuff Brook. On July 18, 2019, a Cheshire resident with property abutting Cuff Brook observed dead fish and discolored water with an oily sheen in the brook, and smelled a chemical odor similar to lighter fluid. CT DEEP responded and determined that NWMCC was responsible for the pollutant release, thereby killing more than 150 fish and contaminating the waterway. CT DEEP estimated that Cuff Brook would not return to its prior state for three to five years.
The government’s investigation revealed that NWMCC was aware that its environmental controls were deficient, but did not remediate these deficiencies during the project. Although the company attempted to blame the pollutant release and fish kill on a single employee, the investigation showed that he had been inadequately trained, directed to complete the job in an unrealistic timeframe, and was never informed that the uncured geopolymer mortar was hazardous to the environment.
The investigation also revealed that NWMCC lacked a meaningful and comprehensive environmental training program for its employees, particularly with respect to the CWA, even though NWMCC’s core business is repairing and rehabilitating infrastructure that interfaces with public waterways. In addition, NWMCC’s bonus policy incentivized site supervisors and executives to push their work crews to perform projects quickly and maximize the number of jobs completed. At the time of Cheshire project, NWMCC was operating under a Code of Conduct as part of a 2014 settlement with the Massachusetts Attorney General’s Office to resolve civil allegations involving environmental pollution.
“Any business operating in Connecticut that ignores environmental laws does so at its own peril,” said U.S. Attorney Avery. “By prioritizing its bottom line over environmental compliance, NWMCC allowed a hazardous substance to escape into Cuff Brook, causing a fish kill and contaminating a public body of water. This prosecution under the Clean Water Act is a reminder that a profit-driven approach to environmental protection will not go unpunished in Connecticut. We thank the EPA for its invaluable work in protecting the environmental integrity of Connecticut’s waterways.”
“In pleading guilty today, NWMCC accepted responsibility for its illegal discharge of a hazardous chemical into Cuff Brook, and for its failure to adequately manage this public works project,” said Special Agent in Charge Amon. “Environmental compliance and corporate accountability for illegal pollution are key components in our continuing work with the Connecticut Department of Energy and Environmental Protection and the Connecticut Office of the Attorney General to enforce vigorously the laws that protect our air, water, and land.”
Judge Dooley scheduled sentencing for February 27.
This matter was investigated by the U.S. Environmental Protection Agency – Criminal Investigation Division with the assistance of the Connecticut Department of Energy and Environmental Protection and the Connecticut Office of the Attorney General. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
New Bedford Man Sentenced to Prison for Stealing over $450,000 in Veterans Disability BenefitsRead the Press Release
BOSTON – A New Bedford man was sentenced today for stealing over $450,000 in disability benefits issued by the United States Veterans Benefits Administration (VBA) intended for a 20-year veteran of the United States Marine Corps who was suffering from Amyotrophic Lateral Sclerosis (ALS).
Joseph Smith, 71, was sentenced by U.S. District Court Judge Julia E. Kobick to 23 months in prison, to be followed by two years of supervised release. Smith was also ordered to pay $459,550,86 in restitution. In September 2024, Smith pleaded guilty to one count of theft of government benefits and one count of conspiracy to steal government benefits. Smith was charged in June 2024.
Shortly after the victim’s ALS diagnosis in August 2015, the VBA approved the victim’s application for disability benefits and awarded him approximately $8,318 in monthly payments. The VBA began issuing payments in September 2015 via monthly checks mailed to the victim’s former residence in New Bedford, where he had resided with Smith’s relative.
Between approximately 2015 and 2020, while the victim was hospitalized for ALS, Smith and others received monthly VBA disability checks intended for the victim and deposited those checks into bank accounts they controlled. Smith first deposited the disability checks into a bank account in his own name and then began depositing the checks into a bank account that he and others fraudulently opened in the name of victim. Shortly after depositing the disability checks, Smith withdrew the funds in cash and used the money for personal expenses.
In total, between in or around 2015 and 2020, Smith and others stole more than $450,000 in VBA disability benefits intended for the victim.
“Every American owes a debt of gratitude to the men and women who have worn the uniform. Stealing from them is simply immoral and Mr. Smith will now pay a heavy price for his egregious betrayal of a veteran who sacrificed for all of us to keep our country free and safe,” said United States Attorney Joshua S. Levy. “Stealing from a Marine Corps veteran who bravely served for 20 years as he battled a devastating illness is about as low as it gets.”
“Military veterans deserve our highest reverence and respect,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Joseph Smith egregiously stole a disabled veteran’s benefits to enrich himself. Smith was sentenced today for his appalling crime. The U.S. Postal Inspection Service is committed to protecting the integrity of the mail stream and all customers who use it.”
“This sentence sends a clear message that individuals who steal VA benefits from disabled veterans will be held accountable,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “VA’s programs and services are established to justly compensate deserving veterans and the VA OIG is committed to investigating those who would exploit or defraud these programs.”
“Mr. Smith admitted to stealing federal disability benefits, which he gained access to by misusing someone else’s identity, including their Social Security number. This sentence holds him accountable for his role in this deplorable conspiracy to defraud the government,” stated Amy Connelly, Special Agent in Charge, Social Security Administration Office of the Inspector General, Boston-New York Field Division. “I commend the investigators from the U.S. Postal Inspection Service and the Veterans Affairs Office of the Inspector General and prosecutors from the U.S. Attorney’s Office for their diligent efforts in working this case.”
U.S. Attorney Levy, USPIS INC Larco-Ward, VA-OIG SAC Algieri and SSA-OIG SAC Connelly made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit prosecuted the case.
Nashville Man Sentenced to 25 Years in Federal Prison for Multiple Robberies and CarjackingsRead the Press Release
NASHVILLE – Jesse Jose Rucker, 35, of Nashville, Tennessee, was sentenced yesterday to 25 years in federal prison, followed by 4 years of supervised release, on charges related to a series of carjackings and robberies he committed in Middle Tennessee in November 2021 while he was on probation for a state court felony offense, announced Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire. Rucker previously pled guilty to four counts of commercial robbery, four carjacking counts, three counts of brandishing a firearm during a crime of violence, and one count of unlawful possession of a firearm by a convicted felon.
“This prosecution again demonstrates our unwavering commitment to hold violent offenders accountable for the havoc they wreak in our community” said Acting United States Attorney Robert E. McGuire. “This sentence ensures that Jesse Rucker will not have the chance hurt any other citizen for over two decades. Those who would do similar violence should know that we will do what it takes to ensure that they face similar punishment.”
“This investigation focused on armed robberies, multiple carjackings, and terrifying acts of violence within the communities that we serve,” said ATF Special Agent in Charge Marcus Watson. “The ATF and our valued law enforcement partners will continue to collaborate and work collectively to take violent criminals off our streets in an effort to maintain public safety.”
“Accountability is essential for violent criminals who prey on innocent victims,” said Metropolitan Nashville Police Chief John Drake. “In this case, our partnership with federal law enforcement to hold Rucker accountable means that he will be 60 when he is released from prison. I deeply appreciate the U.S. Attorney’s Office for working closely with us to keep Nashville safe.”
According to court documents, on November 10, 2021, Rucker entered the Hightail Convenience Store on Eaton’s Creek Road in Joelton, Tennessee, and requested the clerk turn on a gas pump for him. When she said she could not, he opened his jacket and showed her a gun. He told her, “My homie was just shot, and I have to do what I have to do.” He left the store and pumped gas then returned to the store and demanded the money from the register. He received approximately $180 from the clerk, then fled the store.
On November 11, 2021, at 8:01 a.m., Rucker carjacked a victim at the Woodspring Suites, located at 515 Metroplex Drive in Nashville. Rucker pulled into a parking space next to the victim, pointed a gun at the victim, and stated, “I want your car.” A few hours later, Rucker carjacked two more victims outside their home. He pointed a gun at the victims and told them he needed their vehicle. He then fled in their car in the direction of Nolensville Pike where, a few minutes later, he was captured on video getting out of the car before robbing the Harding Pharmacy at 4120 Nolensville Pike in Nashville. Rucker entered the pharmacy and approached the counter where he asked the victim for two boxes of syringes while waiving a black and silver pistol.
Less than an hour later, at approximately 1:37 p.m., Rucker pulled up in the second stolen car next to yet another victim who was sitting in their car eating lunch at 1201 Antioch Pike. He pointed a gun at the victim and asked if he could have the victim’s car and phone. The victim refused to turn over the phone, despite Rucker asking multiple times. Finally, Rucker drove off in the victim’s car. A few minutes later, Rucker parked the latest stolen car outside the Metro PCS store at 3503 Nolensville Pike. He walked into the store and yelled to the employees, “You’re about to get robbed.” The employees did not believe him at first, but he then pulled out his black and silver gun, cocked it, and pointed it at an employee. He then demanded all the store’s iPhones. Surveillance from a nearby store captured Rucker entering the store, then walking by with his arms full of the stolen items from Metro PCS. Within minutes of leaving Metro PCS, Rucker entered the Dubai Jewelry store at 3971 Nolensville Pike with a gun in his hand where he smashed the glass of a jewelry counter with his gun. He reached into the jewelry counter and grabbed four 24 carat gold rings valued at $1,450 before leaving the store. After fleeing the store, Rucker crashed the stolen car into another car and attempted to carjack that car, but it had been disabled by the crash. Rucker then ran through the street and fired at least one shot.
Rucker then carjacked yet another car at gunpoint at 2219 Murfreesboro Pike. This car was occupied by a couple and their two young children. Metro Nashville Police officers located the vehicle and initiated a pursuit on I-40 East into Wilson County where the pursuit lasted more than six minutes with multiple law enforcement vehicles dodging in and out of interstate traffic at speeds up to 126 miles per hour. Rucker crashed the stolen car into a Wilson County Sheriff’s Office deputy’s car and then ran away still carrying his gun in his hand. Wilson County deputies chased Rucker on foot for a short time down the interstate into oncoming traffic before catching and arresting him.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rachel M. Stephens prosecuted the case.
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Muskogee Resident Sentenced for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stephen Patrick Looper, age 69, of Muskogee, Oklahoma, was sentenced to ten months in prison, to be followed by five years of supervised release, for failing to register as a sex offender.
The charge arose from an investigation by the United States Marshals Service Violent Crime Fugitive Task Force, the Muskogee Police Department, and the Muskogee County Sheriff’s Office.
On August 13, 2024, Looper pleaded guilty to one count of Failure to Register as Sex Offender.
On September 6, 2002, Looper was convicted of Sexual Performance of a Child by the State of Texas. Looper was advised of the requirement to register as a sex offender and to inform law enforcement of any change in residency. According to investigators, from January 2024 until July 10, 2024, Looper failed to register as a sex offender despite moving into and living at a residence in Muskogee County, within the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Looper will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorneys Caila M. Cleary and Sarah McAmis represented the United States.
Multiple defendants indicted on federal firearms chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include charges alleging felons illegally possessed firearms, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“Removing guns from the hands of those who are prohibited from possessing them is a vital part of this office’s effort to fight violent crime,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Our law enforcement partners continue their valiant efforts to identify individuals who illegally possess weapons in our communities.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted in January include:
- Natravien Reshawn Landry, 25, of Abbeville, Louisiana, charged with Premeditated Murder and Use of a Firearm During a Crime of Violence for the Dec. 14, 2024, fatal shooting of U.S. Army Sgt. Andre S. Stewart Jr. at Fort Eisenhower in a case under investigation by the Department of the Army Criminal Investigation Division. Also,
- Fitz Kenney Williams, 33, of Augusta, charged with Illegal Receipt of a Firearm by a Person Under Indictment;
- Ruben Alejandro Reyna-Mendoza, 47, of Ridgeland, South Carolina, charged with Possession of a Firearm by a Convicted Felon; and,
- Jarvis Jerrell Giles, 36, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Lial Stephens, 28, of Pooler, Ga., was sentenced to 64 months in prison and ordered to pay $11,400 in restitution after pleading guilty to two counts of Interference with Commerce by Robbery. Stephens pointed a pistol at a Garden City, Ga., convenience store clerk during robberies in September and November 2023.
- Jeremy Studdard, 43, of Dublin, Ga., was sentenced to 80 months in prison and fined $1,500 after pleading guilty to Possession of Firearms by a Convicted Felon, and Possession of Methamphetamine with Intent to Distribute. Studdard, initially facing a federal gun charge, was out on bond for related state charges when Dublin police officers found him in possession of drugs and guns during two separate traffic stops.
- Ray Charles Canady III, 51, of Augusta, awaits sentencing after pleading guilty to Interference with Commerce by Robbery, Possession of a Firearm in Furtherance of a Crime of Violence. Richmond County investigators arrested Canady after he brandished a firearm at an Augusta convenience store in February 2024 and threatened an employee before running from the store with cash and lottery tickets.
- Phillip Moore, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers conducting foot patrol in a Savannah neighborhood found Moore in possession of a semiautomatic pistol while arresting him for trespassing.
- Kenneth Moultrie Jr., 24, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a semiautomatic pistol in Moultrie’s possession during an April 2024 traffic stop.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Mother and Son Convicted of CARES Act FraudRead the Press Release
Oxford, MS – Zipora Hudson and Montreal Hudson, both of Olive Branch, Mississippi, were convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering following a federal jury trial that concluded on January 15, 2025. Deandre Jones, also of Olive Branch, Mississippi, previously pled guilty in the case.
The Paycheck Protection Program (“PPP”) was a COVID-19 pandemic relief program administered by the Small Business Administration (“SBA”) to provide funding for small businesses affected by the economic downturn associated with the Coronavirus Pandemic. According to court documents, Zipora Hudson, her son, Montreal Hudson, and Deandre Jones utilized Zippy Bee, LLC tax preparation business in Charleston, MS, to create and file hundreds of PPP loan applications on behalf of borrowers that were not eligible to receive the loans. The defendants created fraudulent Schedule C tax documents to claim gross income amounts that far exceeded the real income for a particular business or claimed gross income amounts for businesses that never existed. The documents were created in order to receive PPP loans in amounts ranging from $19,000 to $20,833 per loan. For their efforts, the defendants required the borrowers to pay them a kickback out of the proceeds of each loan. The defendants used the illegally obtained money to purchase luxury vehicles and real estate, among other things.
“Zipora Hudson, Montreal Hudson, and Deandre Jones stole millions of dollars from American taxpayers while taking advantage of programs designed to help keep businesses afloat during a national crisis,” said U.S. Attorney Clay Joyner. “Our office will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and will use all available tools to recover the stolen monies.”
“The defendants fraudulently took money from the government that was supposed to assist businesses with keeping their personnel employed during the COVID-19 pandemic,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are continually pursuing and investigating individuals who took advantage of a program that was created to provide relief to small businesses so they could pay their employees and other expenses.”
Sentencing for Zipora Hudson and Montreal Hudson is set for April 24, 2025, and both defendants face a maximum penalty of 30 years for the wire fraud conspiracy and 20 years for the money laundering conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The scheme in the instant case was initially uncovered during the course of a civil investigation. Assistant U.S. Attorney Scott Leary and Assistant U.S. Attorney Sam Wright prosecuted the case on behalf of United States Attorney’s Office for the Northern District of Mississippi. The case was investigated by the Internal Revenue Service Criminal Investigation Division along with investigators from the United States Attorney’s Office.
Mexican National Extradited to the United States for Involvement in an International Human Smuggling OperationRead the Press Release
Extensive coordination and cooperation efforts between U.S. and Mexican law enforcement authorities resulted in the extradition of a human smuggler who allegedly participated in an international human smuggling conspiracy.
Monica Hernandez-Palma, also known as Moni, 32, a Mexican national, was arrested in Mexico pursuant to a U.S. request for her extradition and surrendered by Mexico to U.S. authorities yesterday to face charges previously filed in the Western District of Texas. Hernandez-Palma made her initial appearance today in the Western District of Texas, where an indictment against her was unsealed.
According to the indictment, beginning in November 2020 and continuing through September 2023, Hernandez-Palma conspired with others to bring and attempt to bring migrants to the United States illegally for commercial advantage and private financial gain.
Hernandez-Palma is charged with one count of conspiracy to bring a migrant to the United States at a place other than a designated port of entry and three counts of bringing a migrant to the United States without authorization and for purpose of commercial advantage and private financial gain. If convicted, she faces a maximum sentence of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; U.S. Attorney Jaime Esparza for the Western District of Texas; and Special Agent in Charge Craig S. Larrabee of Homeland Security Investigations (HSI) San Antonio made the announcement.
The Office of the Assistant Special Agent in Charge HSI Del Rio investigated this case, with assistance from the U.S. Border Patrol Del Rio Sector, HSI Human Smuggling Unit in Washington, D.C., and Customs and Border Protection’s National Targeting Center.
Trial Attorney Jenna Reed of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Holly Pavlinski for the Western District of Texas are prosecuting the case.
The Justice Department’s Office of International Affairs (OIA) provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The Justice Department thanks its Mexican law enforcement partners, who were instrumental in arresting and extraditing Hernandez-Palma.
The investigation and prosecution of Hernandez-Palma is being coordinated through the Justice Department Criminal Division’s Joint Task Force Alpha (JTFA). JTFA was created in June 2021 by Attorney General Merrick B. Garland, in partnership with Secretary of Homeland Security Alejandro N. Mayorkas, to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, Department of Homeland Security, and other U.S. law enforcement agencies, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations that have the most impact on the United States; and coordinated significant human smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. In June, the initiative was expanded to Colombia and Panama to combat human smuggling in the Darién. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona, and Southern District of California. Dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA, led by HRSP and supported by the Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; OIA; and Violent Crime and Racketeering Section.
This investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or raise grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Methamphetamine Trafficker on Federal Supervised Release Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Russell Javon Linney, 34, of Statesville, N.C. was sentenced today to 135 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in January 2023, the ATF initiated an investigation into Linney’s drug trafficking activities. During the investigation, court documents show that undercover ATF agents purchased methamphetamine from Linney multiple times. During one of the drug buys, Linney sold nearly a pound of methamphetamine to an undercover ATF agent in South Carolina. At the time, Linney was on federal supervised release for a firearms conviction in the Western District of North Carolina.
On August 8, 2024, Linney pleaded guilty to distribution of methamphetamine. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the ATF for the investigation of the case.
Special Assistant U.S. Attorney (SAUSA) William Wiseman prosecuted the cases. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United
Mercer Island, Washington man sentenced to home incarceration for sexual assault of teen on aircraft flying to Seattle from AtlantaRead the Press Release
Seattle – A 72-year-old Mercer Island, Washington man was sentenced today in U.S. District Court in Seattle to 10 years of supervised release during which two years must be served as home incarceration for Attempted Sexual Abuse of a Minor in Special Aircraft Jurisdiction and Abusive Sexual Contact in Special Aircraft Jurisdiction, announced U.S. Attorney Tessa M. Gorman. Munir Walji was convicted following a four-day jury trial in September 2024. At the sentencing hearing U.S. District Judge Tana Lin said Walji’s conduct “called for a term of incarceration.” However, Judge Lin noted Walji’s extremely poor health. “But for your medical conditions I would impose a prison sentence. But I am deeply concerned that a prison sentence would be a death sentence.”
“This defendant unbuckled the seat belt of the teen sleeping next to him in the confines of an aircraft, and reached inside her pants, attempting to reach her genitals,” said U.S. Attorney Gorman. “This is shocking conduct that traumatized the victim and impacted her family. We will continue to prosecute these cases demonstrating our commitment to holding these perpetrators accountable.”
According to records in the case and testimony at trial, on November 10, 2021, Walji was seated in the aisle seat next to the 15-year-old victim on a Delta Airlines flight from Atlanta to Seattle. The victim’s mother was in the window seat.
As the flight neared arrival in Seattle the victim felt a hand on her leg, waking her. She moved away from Walji and tried to go back to sleep. But the touching became more aggressive with Walji rubbing her thigh, and then unbuckling her seatbelt and reaching inside the waistband of her pants and underwear. The victim said something causing Walji to stop.
The flight attendants responded to the row when the mother pushed the call button. They moved the mother and victim to a different row. Law enforcement was notified, and Walji was arrested upon arrival in Seattle.
In asking for the 30-month sentence recommended by federal pretrial officers, prosecutors wrote to the court, “Despite Walji’s history of family support, opportunity, and career success, he chose to engage in behavior worthy of society’s condemnation. He chose to take advantage of a sleeping 15-year-old girl on a plane who did not know how to respond to this adult male’s nonconsensual sexual advances.”
Walji’s attorneys cited his “severe persistent health problems” including blood cancer and reduced lung function that requires him to take 20 medications per day. Being in a congregate setting would be life threatening, according to Walji’s attorneys.
Prosecutor Laura Harmon countered that at this juncture it was unknown whether BOP could meet Walji’s medical needs. BOP has facilities with high level medical care for cancer patients.
Judge Lin concluded that even though prison was warranted, she was not willing to take the risk that the Bureau of Prisons could not meet his medical needs. Judge Lin also imposed a $5,000 fine and ordered Walji to register as a sex offender.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorney Brian Wynne and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation and sex crimes in federal court.
Maryland Man Convicted of Drug Trafficking and Multiple Firearms ChargesRead the Press Release
Greenbelt, Maryland – After a four-day trial, a federal jury returned a guilty verdict, convicting Thomas Emmanuel Williams, 52, of Laurel, Maryland, on 12 federal charges related to drug and firearms trafficking.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the conviction with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to the evidence at trial, in January and February 2023, the defendant illegally sold 10 firearms, three machineguns, ammunition, and hundreds of oxycodone, codeine, and fentanyl pills to an undercover law-enforcement source. Williams sold several privately made firearms that didn’t have serial numbers, and so-called “Glock switches,” designed to convert semi-automatic Glock-style pistols into fully automatic firearms.
The Defendant arranged to sell the drugs and guns to the source on four different dates through FaceTime and phone calls. Williams met with the undercover source in shopping-center parking lots in Laurel and Hyattsville, Maryland, to sell guns, ammunition, and drugs in exchange for thousands of dollars in cash.
The firearms sold included a Hi Point 45 ACP Pistol and 9mm Rifle, Taurus 85 Ultra Lite .38 Special Revolver, two AR-style 5.56mm pistols, a Glock 21 .45 Auto Pistol, and a Glock 43 9mm Pistol, along with three “Glock switches” which are classified as machineguns under federal law.
Williams faces a minimum sentence of 30 years in federal prison. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang scheduled sentencing for April 17, 2025.
U.S. Attorney Barron commended the ATF for their work in the investigation and ATF special agents Christopher Szakolczai and Katherine Rottman who conducted the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Darren S. Gardner and Dawn Williams who are prosecuting 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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Marion Man Sentenced to Federal Prison for Possessing Firearms as a Felon on Multiple OccasionsRead the Press Release
A man who unlawfully possessed firearms was sentenced today to more than two years in federal prison.
Yasir Jinnah, age 33, from Marion, Iowa, received the prison term after an August 13, 2024, guilty plea to one count of possession of a firearm by a prohibited person.
In a plea agreement, Jinnah admitted that on February 13, 2023, March 31, 2023, and April 26, 2024, he knowingly possessed firearms as a felon and as an unlawful user of marijuana. In May 2012, Jinnah was convicted in Illinois state court of unlawful sale of a firearm, a felony. As a felon, Jinnah is prohibited from possessing a firearm.
During 2023 and 2024, Jinnah posted photos and videos to social media of himself possessing firearms, shooting firearms, possessing marijuana, and smoking marijuana.
On February 13, 2023, Jinnah’s car was stopped for a traffic violation on Interstate 80 by a trooper with the Iowa State Patrol. After a drug dog alerted on the car, the trooper searched the car and found a loaded Glock 9mm pistol in the center console and three loaded 30-round 9mm magazines in a backpack on the rear seat.
On March 31, 2023, during the execution of a search warrant at Jinnah’s residence in Cedar Rapids, Iowa, officers found in bedroom nightstands two loaded Glock 9mm caliber pistols and four additional fully loaded 9mm magazines. Officers also found in the bedroom seven additional Glock 9mm magazines along with 137 rounds of 9mm ammunition. In the kitchen, officers found a loaded Beretta .40 caliber pistol and three additional loaded .40 caliber magazines.
On April 26, 2024, during the execution of a search warrant at Jinnah’s residence in Marion, Iowa, officers found in a bedroom a loaded Glock 9mm caliber pistol and an additional magazine containing 15 rounds of 9mm ammunition, and a loaded Smith & Wesson 9mm caliber pistol and an additional magazine containing 10 rounds of 9mm ammunition. Officers also found a bag with five additional magazines containing 109 rounds of 9mm ammunition. In a hallway closet, officers found a Maverick Arms 12-gauge shotgun along with 10 rounds of 12-gauge ammunition.
Jinnah was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Jinnah was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jinnah is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Cedar Rapids Police Department, the Marion Police Department, the Iowa State Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-30.
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Manufacturing Company to Pay over $4.1 Million to Resolve Allegations It Received Paycheck Protection Program Loan in Violation of Employee Size RulesRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten announced today that Horn USA, Inc., a precision tool manufacturing company, has agreed to pay $4,153,111.12 to resolve allegations that it violated the False Claims Act by falsely obtaining a second-draw Paycheck Protection Program (PPP) loan for which it was ineligible.
“The Paycheck Protection Program provided important relief that was limited to entities that met the eligibility criteria,” said U.S. Attorney Mark Totten. “My office remains committed to working with the Small Business Administration to investigate fraud on its programs and protect taxpayer dollars.”
When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020 it enacted a program to provide emergency financial assistance to individuals and businesses suffering economic and public health effects caused by the COVID-19 pandemic. In 2021, the American Rescue Plan Act (ARPA) continued the CARES Act’s loan program administered by the Small Business Administration (SBA) and created a second-draw PPP loan that allowed eligible businesses that had previously received a PPP loan to apply for a second loan. As one condition to second-draw loan eligibility, the applicant company and its affiliates must have had no more than 300 employees collectively.
In January of 2021, Horn USA, Inc. applied for and received a $2,000,000 second-draw PPP loan, which SBA subsequently forgave. The United States alleges that Horn USA, Inc. was ineligible for this loan because the company and its affiliates had over 300 employees and thus exceeded the size standard.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Horn USA, Inc. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement or judgment. Here, the United States elected to take over the case, investigated it, and negotiated the settlement. The qui tam case is captioned U.S. ex rel. GNGH2 Inc. v. Horn USA, Inc., No. 1:24-cv-196 (W.D. Mich.).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and the SBA. Assistant United States Attorney Whitney M. Schnurr investigated this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Manitowoc Sex Offender Sentenced to 25 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 17, 2025, Robert D. Nytes (age: 49) of Manitowoc, Wisconsin, was sentenced to 300 months in federal prison by Senior United States District Judge William C. Griesbach for receipt of child pornography.
According to court records, Nytes is a lifetime registrant on the Wisconsin Sexual Offender Registry based on a 1995 Second Degree Sexual Assault of a Child conviction in Sheboygan County. In August of 2023, law enforcement was informed that Nytes repeatedly sexually assaulted a minor and used the child to create pornography which he then uploaded to the cloud for receipt on his various electronic devices. Nytes was then charged with and pled guilty to a federal charge of receipt of child pornography.
At the sentencing hearing, Judge Griesbach said his crime was horrendous. The judge also noted the profound effects that Nytes had imposed upon his victim. The judge also pointed to Nytes’ history of abusing children. Ultimately, the judge determined that a sentence of 300 months in federal prison was a fair and just sentence reflective of the severity of the crime. Upon the completion of his federal prison sentence, the defendant will spend the remainder of his life on supervised release. He will also continue to be required to register as a sex offender under state and federal law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Man Who Sexually Assaulted Teen Girl Sentenced to 20 Years for KidnappingRead the Press Release
A 46-year-old man who raped a 14-year-old on video while his friend filmed the assault was sentenced Wednesday to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Lukumond Adebola Olatunji, 46, and his coconspirator, Vincent Jerome Thompson, 42, were indicted in January 2022. Mr. Thompson pleaded guilty in June 2024 to production of child pornography and aiding and abetting; two months later, Mr. Olatunji pleaded guilty to kidnapping a minor.
Mr. Olatunji was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 240 months in federal prison, and ordered to register as a sex offender. Mr. Thompson received the same sentence in October.
According to plea papers, the men admit that on Oct. 23, 2021, they approached a 14-year-old girl and offered her a ride home. They then drove to an alleyway where Mr. Olatunji sexually assaulted her in the backseat of the car. Mr. Thompson recorded the assault on his cell phone, providing commentary as the assault progressed.
On the video, the child can be heard saying, “I don’t want to do it no more,” and “can we go?”
The pair then took the child to a nearby motel, where both men continued to sexually assault her. After approximately five hours inside the motel room, the child ran out of the room carrying her backpack and shoes. Police responded and searched the motel room, where they found condom wrappers and drug paraphernalia.
In interviews with law enforcement, both men admitted to engaging in sexual intercourse with the child. Mr. Olatunji admitted that the child repeatedly told them that she did not want to have sex anymore.
Homeland Security Investigation’s Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Michelle A. Winters, Jenna Rudoff (fmr.), and Joe Magliolo (fmr.) are prosecuting the case.
Man Sentenced for Transporting Child Sexual Abuse MaterialsRead the Press Release
San Antonio, Texas – A Floresville man was sentenced yesterday to 200 months in prison for transporting child sexual abuse material to others.
According to court documents, Jeremy Michael Prieto, 34 years old, transported child sexual abuse material to others, including to an undercover FBI account. Prieto has been trafficking in child sexual exploitation material since at least 2016 and demonstrated a sexual interest in children for most of his life. Prieto had thousands of files on multiple devices. Prieto was ordered to serve lifetime on supervised release, and pay $100,000 in restitution to 20 victims of his offense. He was also ordered to forfeit the devices and accounts used to traffic the child sexual abuse material.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
Los Angeles-Area Man Pleads Guilty to Fraudulently Seeking Millions of Dollars in COVID-Related Tax Credits for Nonexistent BusinessRead the Press Release
LOS ANGELES – A Los Angeles-area man pleaded guilty today a federal felony charge and admitted to seeking more than $65 million from the IRS by falsely claiming on tax returns that his nonexistent farming business was entitled to COVID-19-related tax credits.
Kevin J. Gregory, 57, pleaded guilty to one count of making false claims to the IRS. Gregory has been in federal custody since May 2023.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that a small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit.”
To qualify, the business had to have been in operation in 2020 and to have experienced at least a partial suspension of its operations because of a government order related to COVID-19 (for example, an order limiting commerce, group meetings or travel) or a significant decline in profits. The credit was an amount equal to a set percentage of the wages that the business paid to its employees during the relevant time period, subject to a maximum amount.
Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount.
According to his plea agreement, from November 2020 to April 2022, Gregory made false claims to the IRS for the payment of nearly $65.4 million in tax refunds for a purported Beverly Hills-based farming-and-transportation company named Elijah USA Farm Holdings.
The IRS issued a portion of the refunds Gregory claimed, and Gregory used that portion – more than $2.7 million – for personal expenses.
Specifically, in January 2022, Gregory made a false claim to the IRS for the payment of a tax refund in the amount of $23,877,620, which he submitted as part of Elijah Farm’s quarterly federal tax return. Gregory claimed Elijah Farm employed 33 people, paid nearly $1.6 million in quarterly wages, had deposited nearly $18 million in federal taxes, and was entitled to nearly $6.5 million in COVID-relief tax credits.
In fact, Gregory knew that Elijah Farm employed nobody and paid wages to no one and had not made federal tax deposits to the IRS in the amounts stated on his tax return.
United States District Judge Josephine L. Staton scheduled a May 16 sentencing hearing, at which time Gregory will face a statutory maximum sentence of five years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section is prosecuting this case.
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. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Little Rock Woman Sentenced to 15 Years in Federal Prison After Transporting Stolen Human RemainsRead the Press Release
LITTLE ROCK—Candace Chapman Scott, 37, of Little Rock, will serve a total of 15 years in federal prison for transporting stolen human body parts—including fetuses—out of Arkansas and conspiracy to commit mail fraud. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Thursday, January 16, 2025, by United States District Judge Brian S. Miller.
The investigation revealed that Scott, while an employee at a mortuary services provider between October 2021 through approximately July 15, 2022, stole human body parts and fetal remains. Scott would then sell the body parts and fetal remains to a purchaser in Pennsylvania.
The investigation revealed that Scott met the Pennsylvania purchaser through a Facebook group that openly discussed the sale of body parts. Ultimately, Scott sent the purchaser 24 boxes containing stolen human remains that she acquired at the mortuary provider, including two fetuses. Scott acknowledged in communications with the purchaser that ashes from other cremated bodies would be returned to the parents of the deceased fetuses, instead of ashes from their child.
The remains included a skull, multiple brains, an arm, an ear, multiple lungs, multiple hearts, multiple breasts, a belly button, testicles, and other parts. During a search warrant executed at Scott’s Little Rock home, investigators found numerous stolen body parts that she admitted she transported in trash bags from her work. Scott received a total of $10,625 from the purchaser in Pennsylvania for the human remains.
“Imagine learning that the cremated remains of your child given to you after their death were not actually those of your child, because instead the FBI recovered the body of that child in another state. That is the shocking truth that happened in this case for the family of “Baby Lux,” stated Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Baby Lux was named ‘Lux Siloam,’ which means ‘light sent,’ and now his light has illuminated an evil and dark underworld of criminals who engage in the trafficking of stolen human bodies and body parts. And with help from the powerful testimony of Baby Lux’s mother and grandmother at yesterday’s sentencing hearing, the criminal responsible for the theft and trafficking of the bodies and body parts of many Arkansas victims, including Baby Lux, has been held accountable. Let today’s sentence stand as a warning to anyone else committing these crimes that our office will spare no effort to find you, arrest you, and seek the harshest penalty under the law.”
“This was a truly incomprehensible and detestable crime,” said Federal Bureau of Investigation Little Rock Special Agent in Charge Alicia D. Corder. “This sentencing does not reverse the immeasurable damage that has been caused to the victimized families, however, the FBI and our partners will continuously work to ensure justice is served for all.”
Judge Miller sentenced Scott to 10 years in federal prison for interstate transportation of stolen property and 15 years in prison for conspiracy to commit mail fraud. Scott will serve both sentences concurrently for a total of 15 years. Judge Miller also sentenced Scott to a total of three years’ supervised release, a fine of $10,625, and restitution in the amount of $1,800. There is no parole in the federal system.
Scott was indicted on April 5, 2023, and pled guilty to conspiracy to commit mail fraud and interstate transportation of stolen property on April 25, 2024.
The case was investigated by the FBI and the Arkansas State Police, with assistance from the United States Postal Inspection Service, the Pulaski County Coroner’s Office, and the East Pennsboro Township Police Department (Pennsylvania). This case was prosecuted by Assistant United States Attorneys Amanda Jegley and Michael Gordon.
# # #
Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Lead Defendants of Prolific Human Smuggling and Money Laundering Network Sentenced in Joint Task Force Alpha InvestigationRead the Press Release
A Texas woman and man were sentenced to 121 months and 135 months in prison and ordered to pay money judgments of $942,537.00 and $438,119.00, respectively, this week for their roles as the leaders of a human smuggling organization (HSO) that conspired to illegally transport, harbor, and conceal from law enforcement hundreds of undocumented individuals in the United States and launder the proceeds of their illicit human smuggling.
“The two defendants sentenced in this case were leaders of a human smuggling operation that endangered vulnerable migrants for profit,” said Attorney General Merrick B. Garland. “Since I directed the formation of Joint Task Force Alpha (JTFA) in 2021, the Justice Department has combatted the threats posed by dangerous human smuggling networks where they originate and operate. Since then, the Justice Department has made over 345 domestic and international arrests and secured 290 convictions.”
“As these sentencings make clear, human smugglers will ruthlessly and dangerously exploit vulnerable people for profit — intending migrants should not believe their false promises of safety and opportunity,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The Department of Homeland Security (DHS) will continue to work with our federal, state, and international partners to help track down these criminals, disrupt their illegal operations, and bring them to justice — the integrity of our lawful, orderly immigration system demands it.”
“The defendants exploited vulnerable migrants by leading a scheme to unlawfully transport them across the U.S. border, using dangerous methods that risked the migrants’ lives in order to evade detection,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Because of illegal operations like this one, more than three years ago we launched JTFA to combat the most prolific and harmful human smuggling organizations. The sentences and forfeitures announced today underscore the Criminal Division’s commitment to working with its JTFA partners to disrupt and dismantle smuggling networks that callously endanger human life for profit.”
“Confining individuals, including minors, in coffin-like spaces with no room to move or breathe, reveals this organization’s complete disregard for human life,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Those who profit from such human suffering will face justice, and their ill-gotten gains will be stripped away to ensure that crime does not pay.”
According to court documents, Erminia Serrano Piedra, also known as Irma and Boss Lady, 33, and Oscar Angel Monroy Alcibar, also known as Pelon, 41, were leaders of an illegal HSO that unlawfully transported, harbored, and concealed from law enforcement the detection of hundreds of undocumented individuals in the United States. These individuals were citizens of Mexico, Guatemala, Colombia, and elsewhere and they or their families paid members of the HSO to help them travel illegally to and within the United States. Serrano Piedra’s role included directing the operations of the HSO, recruiting members, ordering payments to be made related to the organization’s operation, and instructing members of the HSO to be lookouts for law enforcement. Monroy Alcibar coordinated the smuggling of undocumented individuals and movement of financial proceeds for the HSO.
The HSO used drivers to pick up undocumented individuals near the U.S.-Mexico border and transport them further into the interior of the United States, often harboring them at “stash houses” along the way in locations such as Laredo and Austin, Texas. Drivers for the HSO used various dangerous methods to transport undocumented individuals, including hiding them in suitcases placed in pickup trucks, cramming them in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers, and wooden crates strapped to flatbed trailers. The methods used by the HSO to transport undocumented individuals placed their lives in danger, as they were frequently held in contained spaces with little ventilation, which became overheated and made it difficult to breathe, and they were driven at high speeds with no vehicle restraints in the back of trucks and tankers. Members of this HSO commonly referred to the undocumented individuals as “boxes,” “packages,” or “pieces.” Typically, the fee paid to the organization was approximately $8,000, with $3,000 paid up front to smugglers in Mexico and the remainder paid once the undocumented individuals entered the United States.
Further, Serrano Piedra and Monroy Alcibar have admitted in court documents that they conspired to engage in financial transactions designed to conceal the nature, location, source, ownership, and control of ill-gotten proceeds of illicit human smuggling and the unlawful harboring and transportation of undocumented individuals. The leaders of the organization recruited and utilized straw persons to accept human smuggling proceeds in the straw persons’ bank accounts and then transferred these proceeds to the leaders under the pretense of work payments. The defendants also established businesses and opened business accounts in order to transfer the human smuggling proceeds. In addition, the defendants recruited individuals in the construction industry who accepted human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts. Serrano Piedra and Monroy Alcibar, both leaders of the HSO, have admitted in court documents that they made significant money from their involvement in human smuggling. Moreover, Serrano Piedra admitted she was going to continue doing this for her lifetime and was not planning to retire.
In addition to the terms in prison, the court entered orders of criminal forfeiture of two properties belonging to one or both of these defendants, which were purchased with the illicit proceeds of human smuggling, recently estimated to have the value of approximately $2,275,000 and $515,000.
Serrano Piedra and Monroy Alcibar were originally charged by indictment in August 2022 and then by superseding indictment in August 2023. Serrano Piedra pleaded guilty on Jan. 4, 2024, to conspiracy to transport and move illegal aliens, transporting aliens for commercial and private financial gain and placing the lives of aliens in jeopardy while doing so, and conspiracy to launder money. Monroy Alcibar pleaded guilty on Jan. 9, 2024, to the same charges.
Including Serrano Piedra and Monroy Alcibar, 14 co-conspirators have been sentenced for their various roles in the HSO, including some for laundering illicit proceeds. The sentences ranged up to 135 months in prison, with money judgments totaling over $2.3 million and forfeiture of interests in real property, including residences located in Bastrop and Elgin, Texas. One other co-conspirator still awaits sentencing.
DHS Office of Inspector General, Homeland Security Investigations (HSI) Laredo, and Customs and Border Protection (CBP)’s U.S. Border Patrol Laredo Sector led U.S. investigative efforts on the case. HSI offices in Austin, San Antonio, Waco, and Corpus Christi, Texas; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; West Palm Beach, Florida; and HSI’s Human Smuggling Unit in Washington, D.C.; along with CBP’s National Targeting Center; U.S. Marshals Service; U.S. Immigration and Customs Enforcement Enforcement and Removal Operations — Austin; the Treasury Executive Office for Asset Forfeiture; Police Departments in Laredo, Killeen, Elgin, and Round Rock, Texas, as well as Wiggins, Missouri and Bogalusa, Louisiana; the Webb County Constable’s Office; Webb County District Attorney’s Office; Sheriff’s Offices in Webb, Bastrop, and Caldwell County, Texas, Harrison County, George County, and Stone County, Mississippi, and Mobile County, Alabama; Jefferson Parish and Washington Parish, Louisiana; Mississippi Bureau of Narcotics, and Louisiana State Police provided substantial assistance with the investigation.
Trial Attorneys Christian Levesque and Angela Buckner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney and JTFA Deputy Director Daria Andryushchenko of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), MLARS Financial Investigator Kelly O’Mara, and JTFA member Assistant U.S. Attorney Jennifer Day for the Southern District of Texas are prosecuting the case, with substantial assistance from the Electronic Surveillance Unit of the Criminal Division’s Office of Enforcement Operations.
This and related convictions of co-conspirators are the result of the coordinated efforts of JTFA. Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP, and supported by MLARS, the Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in more than 345 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 290 U.S. convictions; more than 240 defendants sentenced, including significant jail sentences imposed; and forfeitures of substantial assets.
Last Member of Deadly Trio Sentenced to 14 Years for Second Degree Murder in 2020 Shooting in Southeast DCRead the Press Release
WASHINGTON – Niko Hall, 33, of Washington, DC, was sentenced today to 14 years in prison for second degree murder while armed for shooting and killing a man on Martin Luther King Jr. Avenue, announced Acting U.S. Attorney Bridget Fitzpatrick and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Hall pleaded guilty on November 11, 2024, before Superior Court Judge Rainey Brandt who, in addition to the prison time, ordered five years of supervised release.
Hall is the final defendant to be sentenced for the crime. Co-defendants Kyrie Wells and Darquise Montgomery also pleaded guilty, on January 3, 2023, and July 6, 2023, respectively, to second degree murder while armed. Wells was sentenced to 14 years in prison; Montgomery was sentenced to 12 years of in prison.
According to the government’s evidence, on Saturday, September 26, 2020, the three defendants murdered Anthony Lee, 25, by shooting him in the back as Mr. Lee walked away from them, apparently unaware of the danger he was in. At around 11:22 p.m., as Mr. Lee and a companion walked south on Martin Luther King, Jr. Avenue, Hall came out of the Mellon Market with his handgun drawn and joined the two other men. The three of them lined up across the sidewalk, after one of them cleared potential witnesses out of the way. The gunmen then opened fire on Mr. Lee and his companion from behind. There had been no interaction between the victims and their assailants before the shooting and the victims were unarmed. Hall was the first to begin shooting and the last to stop. He opened fire on a busy street, with multiple witnesses present, in front of busy Saturday commercial traffic.
After Mr. Lee was shot, he fell to the ground one of the co-defendants, apparently acting in concert with the defendant and armed with an assault rifle, opened fire on Mr. Lee’s companion, firing at least 13 times.
The defendant was arrested almost exactly a month later, on October 20, 2020, and has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Fitzpatrick and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists LaShone Samuels and Stephanie Siegerist and Victim/Witness Advocates Latrice Washington-Williams and Jenn Allen. Finally, they commended the work of Assistant U.S. Attorneys Jessica Keefer and Thomas Faulkner who prosecuted the case, and U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach, who investigated and prosecuted the case.
Kyle Man Indicted for Assault and Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Kyle, South Dakota, man for Assault Resulting in Serious Bodily Injury, Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner, Sexual Abuse, and Aggravated Sexual Abuse.
Vinnie Sonny Makes Good, age 36, was indicted in December 2024. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on January 8, 2025, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life imprisonment and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Makes Good assaulting his intimate dating partner on three sperate occasions between March 23 and October 12, 2023. These assaults resulted in the victim sustaining serious bodily injury. On February 4, 2024, Makes Good sexually assaulted a different female who was incapable of declining participation in or engaging in sexual intercourse.
The charges are merely accusations and Makes Good is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Makes Good was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 18, 2025.
Klamath Falls Man Sentenced to Life in Federal Prison for Kidnapping and Sexually Assaulting Two Women and Holding One in a CellRead the Press Release
MEDFORD, Ore.— Negasi Zuberi, 31, of Klamath Falls, Oregon, was sentenced to life in federal prison today for kidnapping and sexually assaulting two women, and holding one in a cell he constructed in his garage.
“There is no place in civil society for this type of terrifying violence,” said Natalie Wight, U.S. Attorney for the District of Oregon. “I sincerely hope Zuberi’s life sentence will bring some measure of comfort to his victims. Their courage and perseverance are an inspiration to us all.”
According to court documents, on July 15, 2023, while in Seattle, Zuberi posed as a police officer and used a taser and handcuffs to detain his victim in the backseat of his vehicle. Zuberi then transported the victim approximately 450 miles to his home in Klamath Falls, stopping along the way to sexually assault her.
At his residence, the victim was moved from his vehicle into a cell he had constructed in his garage. The woman repeatedly banged on the cell door until it broke open and she escaped. The victim retrieved a handgun from Zuberi's vehicle, fled his garage, and flagged down a passing motorist who called 911.
On July 16, 2023, Reno Police Department officers and Nevada State Patrol officers located Zuberi in a parking lot in Reno, Nevada. After a short standoff, Zuberi surrendered to law enforcement and was taken into custody.
While investigating Zuberi's crimes, federal agents discovered that approximately six weeks prior to the kidnapping in Seattle, on May 6, 2023, Zuberi kidnapped and sexually assaulted another victim. While being held by Zuberi, his first victim observed stacked cinder blocks in his garage that he later used to construct the cell where he detained his second victim.
On August 2, 2023, a federal grand jury in Medford returned an indictment charging Zuberi with kidnapping and transporting a victim with intent to engage in criminal sexual activity. Later, on February 15, 2024, a second kidnapping charge and charges for illegally possessing firearms and ammunition.
On October 18, 2024, a federal jury found Zuberi guilty of all charges.
This case was investigated by the FBI Portland and Reno, Nevada Field Offices, Klamath Falls Police Department, and Oregon State Police with assistance from the U.S. Attorney's Office for the District of Nevada; Klamath County District Attorney's Office; Reno, Nevada Police Department; Washoe County, Nevada District Attorney's Office; Nevada State Police; and Klamath Falls Sheriff’s Office. It was prosecuted by Jeffrey S. Sweet, Nathan J. Lichvarcik, and Marco A. Boccato, Assistant U.S. Attorneys for the District of Oregon, with assistance from Appellate Chief Suzanne Miles, also of the District of Oregon.
Kansas man pleads guilty to child pornography possessionRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty to possession of child sexual abuse materials which was found on multiple electronic devices.
According to court documents, Alexander James Rosell, 34, of Wichita pleaded guilty to one count of possession of child pornography.
Rosell's activity was discovered through an international investigation into a particular dark web website, as well as reports made against IP addresses connected to a residence to which he had access. During a search warrant at the home, investigators found Rosell had child pornography images on a cell phone and multiple laptops.
Rosell was remanded to the custody of the U.S. Marshals Service and is scheduled to be sentenced on April 4, 2025. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation (FBI), the Wichita Police Department, and the Kansas Internet Crimes Against Children Task Force are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
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 https://www.justice.gov/psc.###
Justice Department files nationwide lawsuit alleging Walgreens knowingly filled millions of prescriptions that lacked a legitimate medical purposeRead the Press Release
ALEXANDRIA, Va. – In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.
“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
“Today’s announcement demonstrates that we are doubling down on our commitment to both combat the opioid crisis and enforce corporate accountability,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “We will continue to work with colleagues across the nation to confront these issues and deter pharmacies from failing to honor their obligation to ensure that these powerful drugs are provided only to those with a true medical need.”
The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.
The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.
The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”
“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said DEA Principal Deputy Administrator George Papadopoulos. “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.”
“Millions of Americans enrolled in Medicare, Medicaid, and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”
Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).
The United States’ intervention in this matter underscores the government’s commitment to 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 HHS, at 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia, Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, and Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York.
The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
• Middle District of Florida, justice.gov/usao-mdfl;
• Northern District of Illinois, justice.gov/usao-ndil;
• District of Maryland, justice.gov/usao-md;
• Eastern District of New York, justice.gov/usao-edny; and
• Eastern District of Virginia, justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:
• DEA at dea.gov;
• FBI at fbi.gov;
• HHS at hhs.gov;
• DHA at health.mil/About-MHS/OASDHA/Defense-Health-Agency;
• OPM at opm.gov; and
• DOL at dol.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
A complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Justice Department Sues to Shut Down Florida Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit yesterday in federal court in Fort Lauderdale, Florida. The suit seeks to bar a Broward County, Florida, tax return preparer and his business from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint alleges that Suni Ramchandani and his business SR Chandra Inc., doing business as AHS Income Tax Service, prepare federal tax returns for customers on which the preparers claim fraudulent deductions and credits to purposely underreport the tax their customers owe and claim refunds their clients are not entitled to receive. Specifically, the complaint alleges that Ramchandani and AHS prepare returns with false or inflated deductions, business expenses and business losses, as well as false claims for residential energy credits, fuel tax credits and other credits. The complaint also alleges that Ramchandani and AHS file returns that include a Form 8888 (Allocation of Refund), diverting customers’ additional refund amounts to bank accounts associated with Ramchandani without their customers’ knowledge or consent.
The government further alleges that Ramchandani and AHS prepare thousands of tax returns each year, and that when the IRS examined dozens of returns for 2022 and 2023, between 78-82% of the examined returns had errors and fabrications. According to the complaint, the repeated understatement of tax has harmed the United States by causing a revenue loss of approximately $11 million over the past two years. In addition to seeking an injunction against Ramchandani and AHS, the government has requested an order of disgorgement to prevent them from profiting from their violation of the internal revenue laws.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ramchandani Complaint.pdf