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3 February 2025
New York Man Arrested in Dallas Airport on Healthcare Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ROBERT LAKE (“LAKE”), age 62, a resident of East Rockaway, New York, was arrested in the Dallas Fort Worth International Airport, after disembarking from an international flight, after being previously indicted for federal healthcare fraud.
LAKE had been indicted on October 18, 2025 for one count of conspiracy to commit healthcare fraud, in violation of 18 U.S.C. §§ 1347 and 1349, and three counts of healthcare fraud, in violation of 18 U.S.C. § 1347. According to the indictment, LAKE was a licensed prosthetist and orthotist who operated his own durable medical equipment (“DME”) supply companies, TRISETO and ORTHO WORKS. From 2017 to around July 2019, LAKE purchased doctors’ orders for medically unnecessary orthotic braces and submitted claims to Medicare. After Medicare revoked TRISETO’s enrollment in the program in July 2019, LAKE shifted to selling doctors’ orders through his marketing company, CRANIAL SCIENTIFIC, in exchange for kickbacks. The doctors’ orders were medically unnecessary and, at times, manipulated at LAKE’s direction.
LAKE is charged with conspiring with others, including Houma resident, Patrick Haydel. Haydel had previously pled guilty to his role in this same fraudulent scheme. Haydel and LAKE later learned that several physicians complained that they never signed the orders sold by LAKE, and further that Medicare beneficiaries and their caregivers, complained they neither requested nor needed the DME they received. After the government executed a search warrant on Haydel’s business, LAKE transferred over $2 million to a Philippine account. In total, LAKE and Haydel submitted more than $17 million in fraudulent DME claims to Medicare, for which Medicare reimbursed them more than $8 million.
As to each count, LAKE faces up to ten years in prison, followed by up to three years of supervised release after release from prison, a fine of up to $250,000, or twice the gross gain to LAKE or the gross loss to any victims, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Health and Human Services Office of Inspector General. Trial Attorney Kelly Walters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nicholas Moses, Healthcare Fraud Coordinator for the Eastern District of Louisiana, are prosecuting the case.
New Orleans Man Sentenced for Federal Drug and Weapons OffensesRead the Press Release
NEW ORLEANS, LOUISIANA –KENDRICK WILLIAMS (“WILLIAMS”), age 20, was sentenced on January 27, 2025 by U.S. District Judge Jay C. Zainey to 90 months in prison followed by five years of supervised release, along with a $300 mandatory special assessment fee, after previously pleading guilty to possession with intent to distribute tapentadol and possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, WILLIAMS advertised the sale of tapentadol and marijuana on social media. Law enforcement officers executed two search warrants at WILLIAMS’s residence and recovered over 800 tapentadol pills, one pound of marijuana, two Glock handguns, a Glock Model 23, .40 caliber semi-automatic pistol and a Glock Model 19x, 9mm caliber semi-automatic pistol, with extended magazines, and over $9,000 in cash.
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.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Pleads Guilty to Federal Firearm ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on January 28, 2025, CURTIS SQUIRE (“SQUIRE”), age 27, pled guilty to being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8). SQUIRE faces up to fifteen years of imprisonment, up to a $250,000 fine, at least 3 years of supervised release, and a mandatory special assessment fee of $100.
On February 25, 2024, members of the New Orleans Police Department (NOPD) were executed an arrest warrant for SQUIRE. On February 25,2024, officers located and surrounded SQUIRE’s New Orleans residence. After SQUIRE exited the residence, NOPD officers searched the house and recovered a Glock Model 23C, .40 caliber pistol, containing a large capacity magazine, and 20 live .40 caliber rounds.
Prior to his possession of this firearm, SQUIRE had been convicted of crimes punishable by a term of imprisonment in excess of one year.
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.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Indicted for Distribution of FentanylRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on January 30, 2025, RICKEY SMITH (“SMITH”), age 46, was indicted for distribution of forty grams or more of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
According to court records, on or about December 17, 2024, SMITH intended to distribute forty grams or more of fentanyl within the Eastern District of Louisiana.
If convicted, SMITH faces a minimum term of imprisonment of five years up to a maximum term of forty years, a fine of up to $5,000,000.00, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department. It is being prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
New Carrollton Man Sentenced to 20 Years in Federal Prison for Kidnapping Minors, Producing Child Sexual Abuse MaterialRead the Press Release
Greenbelt, Maryland – On January 31, 2025, U.S. District Judge Deborah L. Boardman sentenced Julian Everett, 41, of New Carrollton, Maryland, to 20 years in federal prison and 20 years of supervised release, for kidnapping minors and producing child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Prince George’s County State’s Attorney Aisha N. Braveboy; and Chief Malik Aziz, Prince George’s County Police Department.
According to the guilty plea, in 2005, 2015 and 2016, Everett acknowledged sexually abusing and capturing sexual abuse material of several victims at his New Carrollton home – four were minors.
On July 11, 2005, Everett drove Victim 2 — who was16 at the time — from the Commonwealth of Virginia to his New Carrollton residence. While at his residence, Everett provided Victim 2 with a beverage, before engaging in sexual intercourse without her consent. Everett also took nude photographs of the victim without her consent.
Additionally, on August 23, 2015, Everett drove another victim — who was 18 at the time — from a Washington, D.C. night club to a gas station. While there, Everett created and provided Victim 3 with a beverage before driving her to his New Carrollton residence. Everett then engaged in sexual acts with Victim 3 without her consent.
Then on August 21, 2016, Everett drove Victim 1 — who was then 17 at the time — from her Washington, D.C. residence to a Northwest D.C. barbershop where he worked. While at the barbershop, Everett created and provided Victim 1 with a beverage. Victim 1 drank it and eventually lost consciousness before waking up at Everett’s home while he was performing a sexual act on her. Additionally, Everett recorded the sexual encounter and took naked pictures of the victim without her consent.
Authorities arrested Everett in Prince George’s County on March 21, 2019. Federal law enforcement obtained a search warrant for Everett’s electronic devices, revealing images of child sexual abuse material, including a video of Everett engaging in sexual intercourse with an unidentified fifth female victim. During the video, Victim 5 can be heard mumbling and is physically unresponsive with her eyes closed.
On March 26, 2019, a fourth victim reported a sexual-assault incident to the Prince George’s County Police Department’s Criminal Investigation Division. Between March and April 2015, Everett transported Victim 4 — who was16 at the time — from her Washington D.C. residence to his New Carrollton home. After arriving at his house, Everett mixed a drink for Victim 4 who drank it and became lightheaded. Everett then engaged in multiple sexual acts with Victim 4 without her consent, which he also digitally recorded. He also took nude photos of her.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI, Office of State’s Attorney for Prince George’s County, Maryland, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Timothy Hagan and Thomas Sullivan who prosecuted the federal case.
For more information about 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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Naples Man Sentenced to 9 Years in Federal Prison for Trafficking Fentanyl and MethamphetamineRead the Press Release
Fort Myers, Florida – United States District Judge Sheri Polster Chappell has sentenced Jadyn Howard Loman (22, Naples) to 9 years in federal prison for possession with the intent to distribute methamphetamine and fentanyl and possessing firearms in furtherance of a drug trafficking crime. Loman entered a guilty plea on October 30, 2024.
According to court documents, deputies from the Collier County Sheriff’s Office attempted to conduct a traffic stop on Loman after he failed to stop at a stop sign at the intersection of 20th Place Southwest and 41st Street Southwest in Naples. A subsequent chase ensued with Loman driving in excess of 100 miles per hour - eventually crashing his vehicle. Loman then fled the crash scene on foot before being apprehended. Inside his vehicle, deputies located 2 handguns, ammunition, and various baggies containing fentanyl, cocaine, and methamphetamine.
This case was investigated by the Collier County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Patrick L. Darcey.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Monaca Resident Pleads Guilty to Charges of Sexual Exploitation of Minors and Obstructing JusticeRead the Press Release
PITTSBURGH, Pa. - A resident of Monaca, Pennsylvania, pleaded guilty in federal court to charges related to the sexual exploitation of minors and obstructing justice, Acting United States Attorney Troy Rivetti announced today.
Nicholas Sittig, 28, pleaded guilty on January 30, 2025, to two counts before United States District Judge William S. Stickman IV.
In connection with the guilty plea, the Court was advised that, from in and around August 2023 until in and around April 2024, Sittig employed, used, persuaded, induced, enticed, and coerced a minor, who resided in California, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. In and around December 2023, when Sittig became aware that federal law enforcement officers were investigating him, Sittig induced the minor to aid him in destroying records and documents related to his sexual offenses against the minor—namely, his contact information within the minor’s cellular telephone and Snapchat messages between himself and the minor—with the intent to impede, obstruct, and influence the investigation. The Court was further advised that agents with Homeland Security Investigations had identified a second minor, residing in the Eastern District of Pennsylvania, whom Sittig similarly exploited online from December 2023 through March 2024.
Judge Stickman scheduled sentencing for June 5, 2025. The law provides for a total sentence of not less than 15 years and up to 50 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the defendant remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations-Pittsburgh, the U.S. Postal Inspection Service (San Francisco and Pittsburgh), the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Monaca Police Department conducted the investigation that led to the prosecution of Sittig.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Mexican National Arrested for Illegal Reentry into the United StatesRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the filing of a criminal complaint charging Antonio Candia-Bautista (45, Mexico) with illegal reentry into the United States by a previously deported alien. If convicted, Candia-Bautista faces a maximum penalty of two years in federal prison.
According to the complaint, Candia-Bautista was deported from the United States on October 4, 2016. At some time thereafter, he unlawfully reentered the United States. He was recently arrested during a state investigation into an automobile accident in Sumter County on January 28, 2025. A records check confirmed that Candia-Bautista was a citizen of Mexico with no lawful permission to be present in the United States.
A 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 United States Border Patrol. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.
Methamphetamine Trafficker Is Sentenced to More Than 12 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Jesus Manual Hernandez, 33, of Charlotte, was sentenced today to 151 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.
According to court documents and court proceedings, from March 2021 to September 2022, Hernandez and his co-defendant, Wilber Guadalupe Baldenebro Medina, engaged in conspiracy to distribute methamphetamine in the greater Charlotte area. Court documents show that during the investigation into Hernandez’s drug distribution activities, law enforcement utilized confidential human sources to purchase more than 2.2 kilograms of methamphetamine. In addition to distributing methamphetamine in Charlotte, court records indicate that Hernandez organized the distribution of 190 grams of fentanyl pills and 198 grams of powder fentanyl in Montgomery, Alabama.
On November 30, 2023, Hernandez pleaded guilty to methamphetamine trafficking conspiracy and distribution of methamphetamine. He remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
On September 27, 2023, Medina was sentenced to 15 years in prison after pleading guilty to conspiracy to traffic methamphetamine and distribution of methamphetamine.
In making today’s announcement, U.S. Attorney King commended the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of this Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Memphis Man Sentenced for Stealing 166 Firearms and for Possession of a “Switch”Read the Press Release
Memphis, TN – Kaderion Stokes, 19, was recently sentenced to federal prison for theft of firearms and possession of a machinegun. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentence today.
According to the information presented in court, on September 9, 2023, approximately 166 firearms were stolen from a Federal Firearms Licensee (FFL) business in Atoka, Tennessee. An Atoka Police officer was patrolling the area when he observed a GMC Sierra pick-up truck in the parking lot of the business. As the officer approached the truck, the truck fled at a high rate of speed. Officers discovered that the truck was stolen and had rammed the front of the business crashing into the interior of the store. Several items were taken from the store, including firearms. Stokes was later developed as a suspect. In October 2023, Stokes was arrested by local law enforcement in Memphis on unrelated charges while in possession of two of the stolen firearms from the FFL business.
After a federal grand jury returned an indictment against Stokes, a federal arrest warrant was issued and the United States Marshals Service arrested Stokes at an apartment in Memphis. Stokes was found in possession of a firearm with a machinegun conversion device or a “switch.” Subsequently, the grand jury returned a superseding indictment charging Stokes for possessing the “switch” as well as charges associated with the theft of firearms.
On October 31, 2024, Stokes pled guilty in federal court and on January 29, 2025, Senior United States District Court Judge Jon P. McCalla sentenced Stokes to 87 months of federal imprisonment to be followed by three years of supervised release. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Atoka Police Department. The United States Marshals Service and the Memphis Police Department assisted.
Acting U.S. Attorney Reagan Fondren thanked Assistant United States Attorneys Marques Young and Eileen Kuo, along with Special Assistant United States Attorney Raven Icaza, who prosecuted this case on behalf of the government, as well as the law enforcement partners who investigated it.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Member of Puyallup Tribe sentenced to 13 years in prison for shooting death of his friendRead the Press Release
Tacoma – A member of the Puyallup Tribe was sentenced today in U.S. District Court in Tacoma to 13 years in prison for the fatal shooting of someone he considered a friend, announced U.S. Attorney Tessa M. Gorman. Dennis Jacobsen, 32, was arrested shortly after the shooting on October 21, 2021. Jacobsen was originally charged with unlawful possession of a firearm because of convictions for robbery and unlawful firearms possession in Pierce County Superior Court. In June 2024, Jacobsen pleaded guilty to voluntary manslaughter and using a firearm during a crime of violence.
At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “This is a tragic story of illicit drug use and a firearm. The lives of the loved ones of the victim will carry this loss for years.”
According to records filed in the case, both Jacobsen and the victim had been drinking and using drugs the morning of the shooting. The two were seen together outside the victim’s home within the confines of the Puyallup reservation. The two men walked behind the home and witnesses heard three gunshots. The victim was shot once in the arm and twice in the head, at least once at close range. Witnesses then saw Jacobsen run from behind the house, get in a vehicle and drive away.
When police went to Jacobsen’s residence, they found the handgun with one bullet still in the chamber. The ammunition matched the type of ammunition used in the shooting.
In asking for the 15-year sentence, Assistant U.S. Attorney Todd Greenberg wrote to the court, “The impact of (the victim’s) killing has been felt deeply in the community. His girlfriend was pregnant with his son at the time of the killing. She can now only show her son the photographs of his father. (The victim’s) parents are now without a son and the greater Puyallup community has lost another tribal member to a violent tragedy.”
Jacobsen will be on five years of supervised release following his prison sentence.
The case was investigated by the Puyallup Tribal Police and the FBI.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Member of Drug Trafficking Organization that Distributed Controlled Substances Shaped to Resemble Candy Pleads GuiltyRead the Press Release
BOSTON – A Lynn man pleaded guilty today in federal court in Boston for his role in a large-scale drug trafficking organization (DTO) on the North Shore of Massachusetts. In November 2023, millions of doses of fentanyl and methamphetamine laced pills and powder with street value estimated to be over $7 million, were seized from a stash location and clandestine laboratory used by organization.
Deiby Felix, 41, of Lynn, pleaded guilty to one count of possession with intent to manufacture and distribute 400 grams or more of fentanyl, 500 grams or more of methamphetamine, and other controlled substances; and one count of possession of a firearm in furtherance of a drug trafficking crime. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 29, 2025. Felix was arrested and charged along with Emilio Garcia and Sebastien Bejin in November 2023.
In July 2023, an investigation into an overdose death in Salem led investigators to a DTO led by Felix, Bejin and, allegedly, Garcia. On Nov. 1, 2023, searches were conducted at four locations in Lynn that were identified as locations frequented by Bejin and, allegedly, Garcia. The searches resulted in what is believed to be, one of the largest single-location seizures of fentanyl and methamphetamine in Massachusetts and the region. The seizure included nine kilograms (20 pounds) of pink heart shaped fentanyl-laced pills pressed to look like candy. Additional narcotics and five firearms were also seized. During the course of the investigation over 75 kilograms (198 pounds) of fentanyl and methamphetamine was seized, along with multiple additional kilograms of cocaine and dozens of kilograms of cutting agents, including xylazine, that is used to adulterate controlled substances.
In total, an estimated eight million individual doses of fentanyl and methamphetamine laced pills and powder was seized. The street value is believed to be upwards of $8 million.
A search of Felix’s residence resulted in the seizure of more than three kilograms (6.6 pounds) of pressed pills containing methamphetamine and fentanyl and a firearm. A subsequent search of the residence also revealed a clandestine drug laboratory that had been built into a small room in the basement. Multiple industrial pill presses, mixing equipment and other manufacturing paraphernalia and equipment were also recovered.
Bejin pleaded guilty on Jan. 15, 2025 and is scheduled to be sentenced on May 1, 2025. Garcia is scheduled to plead guilty on Feb. 7, 2025.
The charge of possession with intent to manufacture and distribute 400 grams or more of fentanyl, 500 grams or more of methamphetamine and other controlled substances provides for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release, a fine of up to $10,000,000 and forfeiture. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, to be served consecutively to the underlying drug trafficking crime, up to five years of supervised release, a fine of up to $250,000, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Lynn, Lynnfield and Salem Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Marion County Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jack Lee Oliver, age 56, of Rivesville, West Virginia, was sentenced today to 36 months in federal prison for defrauding the Internal Revenue Service of $708,538.
Oliver was found guilty by a jury in October 2024 of 26 counts involving the preparation and filing of false tax returns.
Oliver is the owner of an insurance sales and tax return preparation business, Insurance Depot, in Fairmont, West Virginia.Oliver prepared tax returns for clients claiming business losses for non-existent businesses and prepared returns for clients who did have businesses, but falsely inflated expenses to cause a business loss, without the knowledge of the clients. In both instances, his actions caused the clients to receive tax refunds to which they were not entitled. Oliver, claimed the foster son of one of his clients on his tax returns, resulting in thousands of dollars in refundable credits to which he was not entitled.
Oliver will serve one year of supervised release following his prison sentence. He was also ordered to cooperate with the IRS to pay back taxes.
Assistant U.S. Attorneys Jarod Douglas and Eleanor Hurney prosecuted the case on behalf of the government.
The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI).
Chief U.S. District Judge Thomas S. Kleeh presided.
Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud SchemesRead the Press Release
A California man pleaded guilty today to health care fraud, aggravated identity theft, and money laundering in connection with a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.
According to court documents, Petros Fichidzhyan, 43, of Granada Hills, engaged in a scheme with others to operate a series of sham hospice companies. Fichidzhyan, along with co-schemers, impersonated the identities of foreign nationals to use as the purported owners of the hospices — including using the identities to open bank accounts and sign property leases — and submitted false and fraudulent claims to Medicare for hospice services that were not medically necessary and not provided. In submitting the false claims, Fichidzhyan and his co-schemers also misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. As a result of the scheme, Medicare paid the sham hospices nearly $16 million. Fichidzhyan personally received nearly $7 million of the proceeds from the fraud scheme, including more than $5.3 million in transfers to his personal and business bank accounts, which were laundered through a dozen shell and third-party bank accounts. Fichidzhyan additionally admitted to wrongfully obtaining more than $1 million for his home health care agency through the fraudulent use of a doctor’s name and identifying information in certifying Medicare beneficiaries for home health care, which he attempted to cover up by paying the doctor $11,000.
Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering. He is scheduled to be sentenced on April 14 and faces a mandatory penalty of two years in prison on the aggravated identity theft charge, a maximum penalty of 10 years in prison on the health care fraud charge, and a maximum penalty of 20 years in prison on the money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Today’s guilty plea is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Diane N. Vu of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Malden Woman Sentenced to Prison for Fraudulently Obtaining over $100,000 in COVID-Relief FundsRead the Press Release
BOSTON – A Malden woman was sentenced today for fraudulently obtaining over $100,000 from the Pandemic Unemployment Assistance (PUA) program made available under the Coronavirus Aid, Relief and Economic Security Act.
Teshawnda Knight, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to 18 months in prison, to be followed by three years of supervised release. Knight was also ordered to pay $105,250 in restitution and forfeiture. In July 2024, Knight pleaded guilty to one count of wire fraud. Knight was arrested in February 2024 along with over 40 Heath Street Gang member/associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges and financial frauds, including COVID-related fraud.
Starting in April 2020 and continuing through August 2021, Knight submitted three PUA applications and related weekly certifications that contained false information and fraudulent documents – two in Massachusetts and one in Indiana – and received a total of $105,250 in fraudulently obtained PUA benefits.
United States Attorney Leah B. Foley; Boston Police Commissioner Michael Cox; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General made the announcement today. Assistant U.S. Attorney Sarah Hoefle of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
Lakeland Man Sentenced to 12 Years in Prison for Trafficking Fentanyl and MethamphetamineRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Jermaine Jerome Campbell (35, Lakeland) to 12 years in federal prison for possessing with the intent to distribute fentanyl and methamphetamine. Campbell pleaded guilty on June 25, 2024.
According to court documents, on September 15, 2023, Campbell distributed fentanyl pills to another individual from his mother’s residence. Upon searching Campbell’s home on September 21, 2023, law enforcement recovered bulk quantities of methamphetamine hidden inside of a tool bag.
This case was investigated by the Federal Bureau of Investigation and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney David Pardo.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Lake County Man Indicted for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jared Menendez (25, Fruitland Park) with attempted enticement of a minor to engage in sexual activity and attempted transfer of obscene material to a minor. If convicted of the attempted enticement offense, Menendez faces a minimum sentence of 10 years, up to life, in federal prison. The attempted transfer of obscene material offense carries a maximum sentence of 10 years’ imprisonment. Menendez is currently detained pending the resolution of the case.
According to the indictment, between November 14 and December 20, 2024, Menendez attempted to persuade, induce, entice, and coerce an individual whom he believed had not yet attained 18 years of age to engage in sexual activity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations and the Marion County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Lackawanna County Woman Sentenced to 27 Years’ Imprisonment for Production of Child PornographyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Julia K. Munley, sentenced Mykayliah Hevener, age 26, of Carbondale, Pennsylvania, on January 30, 2025, to 27 years in prison for her production of child pornography.
According to Acting United States Attorney John C. Gurganus, for an approximate nine-month period in 2023, Hevener engaged in sexual contact with a toddler and used the toddler to create images and videos of child pornography which were either viewed live or sent over the internet to a co-conspirator, Benjamin Egli, of Iowa. Mr. Egli is being prosecuted by the United States Attorney’s Office for the Northern District of Iowa. He has entered a guilty plea and awaits sentencing in that matter.
The case was investigated by the Federal Bureau of Investigation (F.B.I.) and the Tipton, Iowa Police Department. Assistant U.S. Attorney Luisa Honora Berti prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.usdoj.gov/psc.
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Justice Department Announces Formation of Task Force to Combat Anti-SemitismRead the Press Release
Pursuant to President Trump’s Executive Order on Additional Measures to Combat Anti-Semitism, the Justice Department announced today the formation of a multi-agency Task Force to Combat Anti-Semitism. The Task Force’s first priority will be to root out anti-Semitic harassment in schools and on college campuses.
In addition to the Department of Justice, the Task Force will include representatives from the U.S. Department of Education, U.S. Department of Health and Human Services, and other agencies as it develops. The Task Force will be coordinated through the Department’s Civil Rights Division.
“Anti-Semitism in any environment is repugnant to this Nation’s ideals,” said Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell, who will be heading the Task Force. “The Department takes seriously our responsibility to eradicate this hatred wherever it is found. The Task Force to Combat Anti-Semitism is the first step in giving life to President Trump’s renewed commitment to ending anti-Semitism in our schools.”
If you have been discriminated against, you can file a complaint with the Civil Rights Division, at Contact the Civil Rights Division | Department of Justice (https://civilrights.justice.gov). President Trump’s Executive Order can be found here: Additional Measures to Combat Anti-Semitism – The White House.
Ivanhoe Man Sentenced to 72 Months on Drug, Gun ChargesRead the Press Release
ABINGDON, Va. - A previously convicted felon who illegally possessed a firearm and possessed distribution quantities of methamphetamine was sentenced last week to 72 months in federal prison.
Troy Alexander Stamper III, 34, of Ivanhoe, Virginia, pled guilty in October 2024 to one count of possessing with the intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm by a previously convicted felon.
According to court documents, on June 23, 2023 the Grayson County Sheriff’s Office responded to a residence in Fries, Virginia to locate a wanted subject. Upon arriving at the residence, a witness reported that the wanted subject, and Stamper, fled upon seeing sheriff’s deputies arriving. In addition, the witness further reported that Stamper was in possession of a pistol.
The wanted subject was found hiding underneath the residence and stated that Stamper had stashed a duffel bag and a pistol underneath the porch of the residence. Deputies located the duffel bag, which contained a loaded, semiautomatic 9 mm pistol, 87 grams of methamphetamine, .873 grams of fentanyl, and 4 oxycodone tablets.
Stamper was apprehended a short time later and admitted that the pistol and bag containing the drugs belonged to him.
Acting United States Attorney Zachary T. Lee and Anthony Spotswood, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Grayson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case.
Acting U.S. Attorney Zachary T. Lee is prosecuting the case.
Illegal Alien Indicted on Voter Fraud and Gun ChargesRead the Press Release
MIAMI – Carlos Jose Abreu, 45, an illegal alien living in Broward County, Florida, appeared in federal court today to face charges of impersonating a United States citizen when registering to vote and when voting in a federal election. Abreu is also charged with unlawfully possessing a firearm.
Abreu was previously indicted for passport application fraud and aggravated identity theft (case no: 24-cr-60155). On January 8, 2025, Abreu pled guilty to the passport fraud allegations.
According to allegations in the charging documents and statements made during court proceedings: Abreu is a national of the Dominican Republic who entered the United States illegally about 20 years ago and has lived in the country unlawfully since then. In 2007, the state of New Jersey issued an arrest warrant for Abreu on charges of kidnapping, sexual assault, endangering a child, and criminal restraint. Abreu moved to Florida, assumed the identity of a real person (a United States citizen) and used it to obtain a Florida driver license and apply for a passport. Abreu has been living in the United States under the assumed identity of the American citizen victim for about 18 years.
According to the recently returned indictment (case no. 25-cr-60015), Abreu also used the assumed identity of the American citizen victim to register to vote in September 2020, and to vote in the November 2022 federal midterm elections. It is also alleged that Abreu illegally possessed a firearm. It is a federal crime for an illegal alien to possess a firearm in the United States. If convicted on the voter fraud and gun charges, Abreu faces up to 15 years in federal prison. He also is subject to deportation.
U.S. Attorney Hayden O’Byrne for the Southern District of Florida and Acting Special Agent in Charge Michael Conklin of the U.S. Department of State’s Diplomatic Security Service (DSS) Miami Field Office made the announcement.
The DSS Miami Field Office investigated the case. Assistant United States Attorney Brianna Coakley is prosecuting it.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Honduran National Sentenced to Time Served for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JUAN JOSE ARRIAGA-MORENO, a/k/a “Jaime Garcia Matamoros”, (“ARRIAGA-MORENO”), age 59, was sentenced on January 30, 2025, for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans. ARRIAGA-MORENO was sentenced to time served, 6 months imprisonment, and will be removed from the country by the United States Immigration and Customs Enforcement. He has been in custody since August 29, 2024.
According to court documents, on November 9, 2018, ARRIAGA-MORENO was removed from the country after being encountered by immigration and Customs Enforcement and determined to have no legal right to be in the United States. On August 29, 2024, ARRIAGA-MORENO was again encountered by Immigration and Customs Enforcement officials in Terrytown, La. without legal authorization.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Honduran National Indicted for Illegal Reentry into the United StatesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Alex Rafael Gonzalez-Morales (35, Honduras) with illegal reentry by a deported alien. If convicted, Gonzalez-Morales faces a maximum penalty of 10 years in federal prison. His trial is set for March 3, 2025.
According to the indictment, Gonzalez-Morales was previously convicted of of unlawful reentry of a removed alien and was subsequently removed from the United States in November 2019. Following his removal, Gonzalez-Morales did not receive the consent of the Attorney General or the Secretary of Homeland Security to reapply for admission to the United States. On or about January 14, 2025, Gonzalez-Morales was found to be voluntarily in the United States.
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 is being investigated by Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Miami – Jacksonville sub-office It is being prosecuted by Assistant United States Attorney Rachel Lasry.
High School Coach Arrested for Alleged Attempt to Entice a Minor OnlineRead the Press Release
DEL RIO, Texas – A high school teacher and coach in Sabinal was arrested Friday on criminal charges related to his alleged attempt to entice a minor.
According to court documents, Kenneth Wayne Mulkey, 43, allegedly asked an undercover detective for their age, sex and location in a Snapchat interaction on Oct. 11, 2024. After the undercover officer replied by identifying as a 14-year-old boy, Mulkey allegedly identified himself as a 40-year-old football and track coach. He also sent a photo of himself before requesting sexually explicit photos of the minor—which the minor declined—and subsequently discussing topics that were sexual in nature. The affidavit alleges that the following day, Mulkey sent a sexually graphic photo of himself to the user he believed to be a teenage boy. An investigation revealed that when Mulkey had requested the sexually explicit photo of the minor on Oct. 11, his geolocation was within 40 meters of Sabinal High School.
HSI arrested Mulkey Jan. 31, 2025. He made is initial appearance in federal court Feb. 3 and is charged with attempted enticement of a minor. If convicted, he faces 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
Homeland Security Investigations is investigating the case.
Assistant U.S. Attorneys Nallely Duarte and Ekua Assabill are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Henryetta Resident Pleads Guilty to Burglary and AssaultRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cody Lynn Lusk, age 34, of Henryetta, Oklahoma, entered a guilty plea to one count of Burglary in the First Degree in Indian Country, and one count of Assault of a Spouse, Intimate Partner, or Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country.
The Indictment alleged that on March 22, 2024, Lusk broke into the dwelling house of an individual and entered, intending to commit a crime within. The Indictment further alleged that Lusk then strangled and suffocated a dating partner.
The crimes occurred in Muskogee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Cherokee Nation Marshal Service, and the Muskogee Police Department.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lusk will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorneys Caila M. Cleary and Morgan Muzljakovich represented the United States.
Hartford Substance Abuse Counselor Sentenced to 27 Months in Prison for Health Care Fraud SchemesRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that on January 31, 2025, THELMA “WENDY” EPPS, 60, of Hartford, was sentenced by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for health care fraud.
According to court documents and statements made in court, Epps was a Licensed Alcohol and Drug Abuse Counselor (LADC) with an office located at 330 Main Street in Hartford. In April 2013, she enrolled as a participating provider in the Connecticut Medicaid program along with an entity affiliated with Epps called Miracles to Destiny LLC. In July 2018, the Medicaid program suspended Epps from participating as a provider in the program based on a finding of a credible allegation of fraud. Medicaid told Epps that any attempt to circumvent her suspension by submitting claims for services performed by Epps or Miracles to Destiny LLC through other agencies or other billing numbers would result in termination of her provider agreement.
In 2019, Epps entered into an agreement with Dennis Tomczak, a Connecticut LADC who was a participating provider in Medicaid. Epps and Tomczak agreed that Tomczak would bill Medicaid using his Medicaid provider number for psychotherapy counseling services purportedly provided by Epps. These claims falsely represented that Tomczak had personally provided the services. In return for Tomczak billing the services, Epps agreed to pay Tomczak 25 percent of the amount Medicaid paid Tomczak. Between approximately April 2019 and November 2022, Medicaid paid Tomczak $330,547.71 for fraudulent claims for services purportedly provided by Epps that were billed under Tomczak’s provider number.
At some point during their scheme, Tomczak expressed concerns to Epps about the number and frequency of services that Epps told Tomczak she was providing. At about this time, Epps entered into a similar agreement with Shawn Tyson, a LADC in Connecticut, whereby Tyson would use his Medicaid provider number to submit claims to Medicaid for services Epps purportedly provided to Medicaid clients.
In November 2019, Epps assisted Tyson with the process of enrolling Tyson as a participating provider in Medicaid. Tyson’s provider application listed the location at which Tyson would provide services as 330 Main Street, Third Floor, in Hartford, the location of Epps’s and Miracles to Destiny LLC’s office. Once Tyson was enrolled as a Medicaid provider, Tyson provided Epps with his login information to the online portal for submitting claims to Medicaid, which Epps then used to submit claims. For a brief period before Tyson was enrolled as a Medicaid provider, unbeknownst to Tomczak, Epps submitted claims through Tomczak’s provider number for services purportedly provided by Tyson, by representing to Tomczak that she had performed these services. Medicaid paid Tomczak a total of $7,879.40 for these services.
During the scheme involving Epps and Tyson, Tyson would provide Epps the names of Medicaid patients and dates that Tyson purportedly provided psychotherapy counseling services to the patients, and Epps would then bill Medicaid for these services using Tyson’s provider number. Epps would also submit claims using Tyson’s provider number for services she purportedly provided to Medicaid patients. These claims falsely represented that Tyson had personally provided the services to the patients.
Epps and Tyson submitted and caused to be submitted claims for hundreds of thousands of dollars of psychotherapy services that neither Epps nor Tyson had actually provided to Medicaid clients. When Epps warned Tyson that he should not bill Medicaid for having provided psychotherapy to patients on holidays, such as July 4 and Thanksgiving, Tyson would typically change the dates of services and resubmit the list of services to Epps.
Medicaid paid Tyson $663,081.32 for claims that falsely represented that Tyson had personally provided services, or falsely represented that services had been provided when, in fact, they were not provided at all.
Judge Dooley ordered Epps to pay $1,001,058.43 in restitution to the Connecticut Medicaid program.
On November 8, 2024, Epps pleaded guilty to health care fraud. Epps, who is released on a $50,000 bond, is required to report to prion on March 3.
Tomczak and Tyson pleaded guilty to related charges and await sentencing.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation, with the assistance of the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Hamilton man sentenced to 15 years in prison for receiving bulk amounts of narcotics through the mail, illegally possessing firearms, smuggling drugs into Butler County JailRead the Press Release
CINCINNATI – Joshua M. Riley, 46, of Hamilton, Ohio, was sentenced in U.S. District Court to 180 months in prison for narcotics and firearms crimes.
According to court documents, Riley was having bulk amounts of narcotics mailed to his home on Symmes Avenue in Hamilton through the United States Postal Service. In November 2022, law enforcement intercepted a package in route to Riley’s residence that included fictitious sender and recipient names. The package contained more than two kilograms of methamphetamine.
When agents later executed a search warrant at Riley’s residence, they discovered approximately 1,000 fentanyl pills, 40 pounds of marijuana, cocaine, drug trafficking paraphernalia, high-end jewelry and $18,500 in cash. Riley also illegally possessed at least 15 firearms, firearm magazines, and ammunition. Four of those firearms were later found to have been previously reported as stolen, and a fifth had an obliterated/filed off serial number. The other firearms included an Akdal Arms, 12 gauge semi-automatic shotgun and a Hi-Point nine millimeter high-powered rifle.
In July 2024, Riley pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl, as well as cocaine and marijuana. He also admitted to illegally possessing a firearm as a previously convicted felon.
While detained during this case, Riley was repeatedly caught smuggling drugs – namely, dozens of suboxone strips and amphetamines – into the Butler County Jail.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; and Butler County Sheriff Richard K. Jones announced the sentence imposed by U.S. District Court Judge Jeffery P. Hopkins. Assistant United States Attorneys David P. Dornette and Timothy D. Oakley represented the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Gardner business owner sentenced to prison for failing to pay taxesRead the Press Release
KANSAS CITY, KAN. – A Kansas business owner was sentenced to 17 months in prison for failing to forward more than one million dollars in employment tax collections to the Internal Revenue Service (IRS).
According to court documents, Marvin Vail, 53, of Gardner pleaded guilty to one count of failure to account for and pay over employment taxes.
As the owner and operator of Marvin's Tow Service, Inc. in Gardner, Kansas, Vail failed to pay employment taxes for at least 23 calendar quarters between 2012-2017. Employers are required to withhold Federal Insurance Contribution Act (FICA) taxes and income taxes from the wages paid to their employees then forward the withheld amounts to the IRS. IRS-Criminal Investigation agents interviewed the office administrator for Marvin's Tow Service and were told Vail wouldn’t allow the office administrator to pay the owed federal taxes.
As part of his sentence, a federal judge ordered Vail to pay the IRS $1,512,283 in restitution.
The IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Scott Rask prosecuted the case.
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Fresno Man with Prior Fraud Conviction Pleads Guilty to Running a $4.2 Million Fraud Scheme Through His Technology StartupRead the Press Release
FRESNO, Calif. — Royce Newcomb, 62, of Fresno, pleaded guilty today to wire fraud and money laundering charges today for a long-running fraud scheme where he stole $4.2 million from investors, lenders, and the federal government, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, from 2017 through 2022, Newcomb owned Strategic Innovations, which was a technology startup company that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses. Newcomb developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list.
Newcomb made several false representations to his investors to deceive and cheat them out of their money. The false representations included that he had been awarded a grant by the National Science Foundation and that he would use the investors’ money to further develop and bring his products to market. That was not true. Instead, Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion. He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors’ authorization.
During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.
Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.
Newcomb is scheduled to be sentenced on May 5, 2025. Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Former martial arts and gymnastics instructor admits to receiving and possessing child sexual abuse materialRead the Press Release
GALVESTON, Texas – A 41-year-old Alvin man has entered a guilty plea to child pornography charges as trial was set to begin, announced U.S. Attorney Nicholas J. Ganjei.
Franklin Joseph Perkins previously worked at the Kuk Sool Won martial arts studio and Gulf Coast Gymnastics, both located in Alvin.
The investigation revealed a user with a Google account had uploaded files possibly depicting child sexual abuse material (CSAM) onto their servers. Law enforcement linked Perkins to that account and determined he had been using various Google accounts and his cell phone to receive and possess child pornography.
U.S. District Judge Jeffrey V. Brown accepted the plea and set sentencing for April 15. At that time, Perkins he faces a minimum of five and up to 20 years for receiving CSAM and up to 10 years for possessing it. He could also be ordered to pay up to a $250,000 fine as well as a $5,000 special assessment under the Justice for Trafficking Act, a maximum of a $35,000 special assessment under the Amy, Vicky and Andy Child Pornography Victim Assistance Act and mandatory restitution in an amount of no less than $3,000 per victim.
He will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation along with Pearland Police Department, Galveston County Sheriff’s Office and the Houston Metro Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Kimberly Leo, Carrie Wirsing and Colton Turner are prosecuting the case, which was brought as part of Project Safe Childhood - a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former SCDC Captain Pleads Guilty to $279,000 Bribery ConspiracyRead the Press Release
COLUMBIA, S.C. —Christine Mary Livingston, 47, of Gaston, has pleaded guilty to honest services wire fraud conspiracy for her role in a bribery scheme in a South Carolina prison.
According to evidence presented in court, the investigation revealed that Livingston was a 16-year veteran of the South Carolina Department of Corrections (SCDC) at the time of her resignation in November 2021. By virtue of her position as Captain at the Broad River Correctional Institute (BRCI) from 2016 through 2021, she managed security operations at BRCI and was responsible for enforcing contraband policy and law. SCDC policy and state law prohibited her from accepting bribes or anything of value to influence the exercise of her official responsibilities.
From July 2018 through November 2021, however, Livingston accepted bribes from a least 45 prisoners and three family members of prisoners in exchange for smuggling contraband into BRCI and in exchange for failing to enforce contraband law and policy. She operated at least 14 peer-to-peer payment accounts on platforms such as Cash App that were established in false names but were linked to her legitimate bank accounts. One of her Cash App accounts received at least $279,000 in bribes, of which more than $225,000 was transferred to her personal bank accounts. She then used the proceeds for personal enrichment including on shopping, ATM cash withdraws, and the purchase of cryptocurrency.
At least 173 cell phones were purchased by Livingston on her personal Amazon account during the conspiracy, along with 130 SIM cards and phone accessories, headphones, screen protectors, and phone chargers. At least eight witnesses would have cooperated against Livingston at trial, including family members of prisoners, and records obtained from Facebook and contraband phones recovered by SCDC confirmed the bribery scheme.
“Livingston used her position and rank for personal, criminal gain which endangered other staff members and those housed at Broad River Correctional Institute,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “We will continue to work with SCDC to prosecute those who commit crimes within prison walls.”
“This is one more example of how illegal cellphones ruin lives, including those of correctional officers who get involved in the contraband trade,” SCDC Director Bryan Stirling said. “We appreciate the FBI and U.S. Attorney’s office investigating and prosecuting this case and holding these criminals accountable for their actions.”
Jerell Reaves, a co-defendant and prisoner responsible for more than $42,000 in bribes to Livingston, was recently sentenced to 60 months imprisonment by United States District Judge Sherri A. Lydon, to be followed by three years of supervision by U.S. Probation.
Livingston faces up to 20 years in federal prison, with the Government agreeing to recommend up to eight years as a part of her plea agreement, to be followed by court ordered supervision, $250,000 in monetary penalties, and forfeiture of assets including up to the full value of the bribes. Livingston is scheduled to be sentenced by United States District Judge Sherri A. Lydon on June 30 at 10:00 a.m.
The case was investigated by the FBI Columbia Field Office and the SCDC Office of Inspector General. Assistant U.S. Attorneys Elliott B. Daniels and Michael Shedd are prosecuting the case.
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Former Member of Congress Pleads Guilty to Wire Fraud SchemesRead the Press Release
FRESNO, Calif. — Former member of the U.S. House of Representatives Terrance John “TJ” Cox, 61, of Fresno, pleaded guilty today to one count of wire fraud and one count of wire fraud affecting a financial institution, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Cox perpetrated fraud schemes targeting companies he was affiliated with. Cox created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations, pretenses and promises. From 2013 to 2018, across two different fraud schemes, Cox illicitly obtained client payments and company loans and investments that he solicited and then stole.
In addition, Cox fraudulently obtained a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park. Cox and his business partner’s nonprofit could not qualify for the construction loan without a financially viable party guaranteeing the loan. Cox falsely represented that one of his affiliated companies would guarantee the loan and submitted a fabricated board resolution that falsely stated that at a meeting on a given date, all company owners agreed to guarantee the Granite Park loan. No meeting took place, and the other owners did not agree to back the loan. The loan later went into default.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorneys Henry Z. Carbajal III and Jeffrey A. Spivak are prosecuting the case.
Cox is scheduled to be sentenced on June 2, 2025. Cox faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
cox_plea_agreement.pdfFormer Contractor Convicted of Sexual Assault of Co-Worker at Palo Alto VA HospitalRead the Press Release
SAN JOSE – A federal jury convicted a Palo Alto man for aggravated sexual abuse, sexual abuse by fear, and making false statements to a federal agent during an investigation. The jury reached its verdict late in the evening on Jan. 31, 2025, following a three-week trial before Senior U.S. District Judge Edward J. Davila.
Onofre Salas-Lozano, 42, worked as a night supervisor for the janitorial services contractor that cleaned the Palo Alto Veterans Affairs (VA) Hospital. According to court documents and evidence presented at trial, Salas-Lozano isolated and trapped the victim in a patient exam room at the hospital late at night on July 2, 2021, and forced her to engage in sexual activity. The victim suffered traumatic tissue injury during the assault, and DNA analysis confirmed the presence of Salas-Lozano’s sperm in the victim’s underwear. At the time of the incident, Salas-Lozano was the victim’s direct supervisor.
The jury also found that Salas-Lozano lied to a VA Office of Inspector General (OIG) special agent during a subsequent investigative interview when he denied having sexual intercourse with the victim on July 2, 2021, or at any other time. At trial, the defendant testified and claimed to have had consensual sex with the victim at some other time and denied making a false statement.
“Salas-Lozano used his position as a supervisor to sexually assault a fellow employee. Federal law enforcement will do all it can to secure justice for any victim of sexual assault,” said United States Attorney Ismail J. Ramsey. “This jury verdict ensures that the Salas-Lozano will now face severe consequences for his despicable acts.”
“The verdict sends a clear message that the VA OIG remains dedicated to holding those who commit an act of violence at a VA facility accountable,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG is grateful for the commitment of the U.S. Attorney’s Office to seek justice for the victim.”
Salas-Lozano is scheduled to appear in court today to set a date for sentencing. He faces a maximum penalty of life in prison on each count of aggravated sexual abuse and sexual abuse by fear, and a maximum penalty of eight years in prison on the count of materially false statement in a federal investigation.
Assistant U.S. Attorneys Marissa Harris and Christoffer Lee are prosecuting the case with the assistance of Sara Slattery, Susan Kreider, Sahib Kaur, Mimi Lam, and Fernanda Gonzalez. The prosecution is the result of an investigation by VA OIG, with significant assistance from the VA Police Service.
Folsom Man Pleads Guilty to Visa FraudRead the Press Release
SACRAMENTO, Calif. — Marcus Taslim, 70, of Folsom, pleaded guilty today to visa fraud, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Taslim brought Person 1 to the United States from Indonesia in December 2018 to provide caregiving services for his mother, but he obtained a nonimmigrant visa for Person 1 through lies and false statements. Taslim secured this visa by falsely representing to a consular officer that Person 1’s length of stay in the United States would only be one month, that she would be paid minimum and overtime wages under the laws of the State of California, that she would be paid bi-weekly and in full, and that he had paid Person 1’s one-month salary in advance.
Taslim knew these statements to the consular officer were not true. For example, although Taslim paid Person 1 what looked like one month of salary in advance, as soon as the consular officer received proof of that payment, Taslim ordered Person 1 to withdraw that money and give it back to Taslim, which she did. Then, once in the United States, Person 1 worked for Taslim for about six months. She typically worked seven days a week, beginning work as early as 5 or 6 a.m. and ending at about 8 or 9 p.m. Taslim paid Person 1 far less than minimum wage, did not pay her bi-weekly and in full, and also confiscated her passport so she could not run away. Person 1 was only able to leave in June 2019, following intercession from the Folsom Police Department.
This case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service’s San Francisco Field Office. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
Taslim is scheduled to be sentenced on May 12, 2025, by U.S. District Judge William B. Shubb. Taslim faces a maximum term of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Jury Convicts Former Bureau of Prisons Correctional Officer in Bribery, Drug SchemeRead the Press Release
FLORENCE, S.C. — Angela Crosland, 51, of Elgin, has been convicted of bribery, money laundering, distribution of methamphetamine and suboxone, and filing false income tax returns. A federal jury returned the guilty verdict following two days of trial.
Evidence presented to the jury showed that Crosland worked as a correctional officer at Federal Correctional Institution Williamsburg in Salters. While employed as a correctional officer, Crosland smuggled contraband into FCI Williamsburg in exchange for money. The contraband included suboxone, methamphetamine, K-2-soaked paper, marijuana, tobacco, food, and other items. Evidence presented to the jury included Crosland’s Cash App accounts records which reflected payments to her account totaling $56,791 from family and associates of inmates housed at FCI Williamsburg. These payments occurred over approximately a nine-month time period. In addition, Crosland failed to report this substantial income on her federal tax returns.
“Those who work in public service, especially in law enforcement and corrections, must be held to a higher standard," said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “Crosland’s actions damage trust in our prison systems while compromising the safety of Williamsburg FCI’s staff and inmates.”
“Crosland smuggled drugs and other contraband into the federal prison in exchange for tens of thousands of dollars in bribes,” said Eric Fehlman, Special Agent in Charge of the Department of Justice Office of the Inspector General Southeast Region. “Her corrupt actions jeopardized the safety and security of the entire facility.”
“The IRS is committed to working alongside our law enforcement partners to provide financial expertise while investigating individuals who engage in corruption, money laundering, and tax fraud,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, Internal Revenue Service Criminal Investigation.
United States District Judge Joseph Dawson, III, presided over the trial and will sentence Crosland after receiving and reviewing a pre-sentence report from the U.S. Probation office.
This case was investigated by the Office of Inspector General for the Department of Justice and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Bill Watkins and Winston Marosek are prosecuting the case.
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Federal Inmate Pleads Guilty to Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Jessie Wooden (36, Miami) has pleaded guilty to possession with the intent to distribute 50 grams or more of methamphetamine. Wooden faces a minimum of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court records, on March 10, 2024, Wooden was an inmate at the Coleman Federal Correctional Complex (FCC Coleman) in Sumter County. During a visitation session, surveillance footage captured Wooden being thrown a bag containing contraband that had been smuggled into the prison. Correctional officers confiscated the bag, which contained 78 grams of methamphetamine. When interviewed by law enforcement, Wooden admitted to having visitors bring contraband into the prison for him. He also confirmed that he was going to distribute the methamphetamine inside FCC Coleman.
This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons. The task force was led by the Federal Bureau of Prisons and the Department of Justice Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.
Dominican National Charged with False Statement to Federally Licensed Firearms DealerRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Eugenio Gonzalez-Paredes (53, Dominican Republic) with making a false statement to a federally licensed firearms dealer. If convicted, Gonzalez-Paredes faces a maximum penalty of 5 years in federal prison.
According to the indictment, Gonzalez-Paredes made a false statement on a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473 stating that he had not previously been convicted of a crime punishable by more than a year in prison. At the time Gonzalez-Paredes made the statement, he had previously been convicted twice in the United States District Court in the District of Puerto Rico for illegal reentry by a previously deported alien.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Megan Testerman.
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.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Allen Lation Baird, 48, of Detroit, Michigan, pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.
According to court documents and statements made in court, on May 3, 2023, law enforcement officers arrested Baid on an arrest warrant issued in Michigan. Officers searched Baird while taking him into custody and found approximately 56 grams of a substance containing fentanyl and 14 grams of methamphetamine. Baird told officers he was taking the controlled substances to someone else.
Baird is scheduled to be sentenced on June 5, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-183.
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Des Moines Man Sentenced to 204 Months in Federal Prison for Drug ChargesRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 17 years in federal prison for possession with intent to distribute a controlled substance containing fentanyl.
According to public court documents and evidence presented at trial, in the fall of 2023, Sharmarke Omar Mohamed, 37, was identified as a source of supply of counterfeit fentanyl pills in the Des Moines metro. Police conducted several controlled buys of hundreds of fentanyl pills from him. In early 2024, law enforcement surveilled Mohamed as he traveled to Arizona and quickly returned to Iowa. Law enforcement conducted a traffic stop of Mohamed’s vehicle and found him in possession of approximately 30,000 counterfeit fentanyl pills.
On September 30, 2024, following a one-day bench trial, a federal judge found Mohamed guilty. At his sentencing, a federal judge found Mohamed obstructed justice by committing perjury at his trial by lying under oath.
After completing his term of imprisonment, Mohamed will be required to serve a 6-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department-Narcotics Division.
Fentanyl has become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. In 2023, accidental overdose was the number one cause of death in 37 states for residents under 40 years old. https://stateline.org/2023/09/05/death-rates-for-people-under-40-have-skyrocketed-blame-fentanyl/. In Iowa, opioid-related deaths reached a record high 258 in 2021, up 64% compared with 2019, and decreased 8% in 2022. https://hhs.iowa.gov/media/11935/download.
Delaware County Man Convicted at Trial of Defrauding Pandemic Relief Programs of $8.4 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Francis J. Battista, 39, of Aston, Pennsylvania, was convicted at trial on all charges against him — 12 counts of wire fraud, three counts of aggravated identity theft, and seven counts of money laundering — for defrauding federal COVID-19 assistance programs of $8.4 million. United States District Court Judge Paul S. Diamond remanded the defendant into custody following the verdict on Friday afternoon.
Battista was charged by indictment with these offenses in June of 2022.
As proven at trial, between March 2020 and June 2021, the defendant fraudulently applied for 19 loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, seeking over $10 million in proceeds. PPP and EIDL were federal government programs intended to provide emergency financial assistance to small businesses and their workers, who were suffering the economic effects of the COVID-19 pandemic.
Battista applied for one fraudulent PPP loan using his own name, and submitted fake and fabricated documents in support of the application. For the rest of his applications, he used other people’s names and personal identifying information on applications and the bogus support documents submitted in support of those applications. In one instance, Battista falsely renewed the Pennsylvania photo ID card of a deceased family friend, had it mailed to his house, and then used it to apply for a PPP loan.
Nine of Battista’s 19 loan applications were funded, with the defendant receiving $8.4 million in PPP payments. Battista used the proceeds of the loans to attempt to purchase waterfront property in Florida, buy a Range Rover, engage in risky stock trading that resulted in millions of dollars of losses, and pay for his children’s private school, among other unauthorized expenses.
The government has located and seized $6.3 million of those funds through forfeiture proceedings.
Battista will be sentenced on a date to be determined and faces a maximum possible sentence of 316 years in prison.
“Frank Battista tried to cash in on a public health crisis, diverting federal money meant to support businesses and workers hobbled by the pandemic,” said U.S. Attorney Romero. “He didn’t care that he was defrauding the government and all of us taxpayers — he just wanted to live larger on somebody else’s dime. As his case shows, my office and our partners are committing to prosecuting these shameless COVID crooks and holding them fully accountable.”
"Mr. Battista took advantage of our nation's generosity in a time of need by fraudulently applying for and obtaining COVID-19 program funds," said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. "IRS-CI, along with our law enforcement partners, will continue to aggressively investigate those who scheme to exploit federal relief programs for their personal gain."
"The Secret Service is proud to work alongside our federal partners to bring these defendants to justice," said Glenn M. Dennis, Special Agent in Charge of the U.S. Secret Service. "Criminals exploiting the Paycheck Protection Program and Economic Injury Disaster Loan Program steal valuable funds from the American taxpayer and from businesses who rightfully needed these programs to continue operation during the pandemic. The Secret Service is committed to continuing our work with federal, state, and local law enforcement to track down and prosecute those who abused the PPP and EDIL Programs."
The case was investigated by the U.S. Treasury Inspector General for Tax Administration, U.S. Small Business Administration Office of Inspector General, Internal Revenue Service Criminal Investigation, and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Eric D. Gill.
Convicted Felon Sentenced to 7 Years for Possession of FirearmRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Sherron Gary (41, Tampa) to seven years in federal prison for possessing a firearm and ammunition as a convicted felon. Gary pleaded guilty in October 2024.
According to court documents, on April 9, 2023, officers with the Tampa Police Department (TPD) attempted a traffic stop on a vehicle driven by Gary after observing the vehicle had a broken taillight. Gary failed to pull over and instead fled from the officers at a high rate of speed. A police helicopter followed Gary. After Gary’s vehicle was boxed in by law enforcement, Gary fled from the officers on foot, which the helicopter was also able to capture.
As Gary fled, the helicopter crew observed Gary discard an item as he was running that resembled a firearm. TPD officers apprehended Gary. After the arrest, the helicopter crew directed officers back to the location where they had observed Gary discard the firearm. Officers located a 9mm Walther Creed semiautomatic pistol at the location.
At the time, Gary had four prior felony convictions, including aggravated battery and armed burglary of a dwelling, trafficking of cocaine, delivery of cocaine, and delivery of cocaine within 1,000 feet of church. As a convicted felon, Gary is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
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.
Columbus man admits attempted transfer of obscene material to minor in undercover investigationRead the Press Release
BILLINGS — A Columbus man accused of attempting to send obscene material to a minor during an undercover investigation admitted to a charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Jacob Curtis Wyckoff, 25, pleaded guilty to an information charging him with attempted transfer of obscene material to a minor. Wyckoff faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Wyckoff was released pending further proceedings.
In court documents, the government alleged that in January 2023, law enforcement in the Billings area set up an undercover operation relating to those with a sexual interest in children. The undercover persona was that of a 14-year-old female. The undercover posed on a social media site and on Jan. 26, 2023, Wyckoff reached out on KIK, using the profile name of “Jake Smith.” The undercover made Wyckoff aware in communications that she was “almost 15.” In communications between the two from January 2023 to July 14, 2023, discussions became increasingly sexual in nature. On multiple occasions, Wyckoff expressed a desire to meet the “child” for a sexual encounter. On July 6, 2023, Wyckoff sent the undercover a picture of his allegedly erect penis in his jeans and made sexually suggestive comments.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Yellowstone County Sheriff’s Office, Laurel Police Department, and Montana Division of Criminal Investigations conducted the investigation.
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 Justice.gov/PSC.
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Clinton County Felon Sentenced to 65 Months for Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Richard Brundige, age 46, of Ellenburg Depot, New York, was sentenced today to 65 months in prison, to be followed by 3 years of supervised release, for unlawfully possessing a rifle as a previously convicted felon.
United States Attorney Carla B. Freedman, United States Marshal David McNulty, and New York State Police Superintendent Steven G. James made the announcement,
As part of his prior guilty plea, Brundige admitted that on December 12, 2022, he possessed a Marlin Model 336W lever action rifle and 17 rounds of ammunition. Brundige has four felony convictions in New York that prevented him from lawfully possessing the rifle. Brundige committed this offense while a fugitive from justice following a conviction in 2019.
The United States Marshal Service and New York State Police investigated this case, and Assistant U.S. Attorney Carling Dunham prosecuted this case.
Cassville Man Sentenced to More Than 8 Years in Prison for Attempted Enticement of A Minor to Engage in Prostitution and Sexual ActivityRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Mansberger, age 59, of Cassville, Pennsylvania, was sentenced on January 14, 2025, by U.S. District Court Chief Judge Matthew W. Brann to 102 months of imprisonment and 10 years of supervised release on the charge of attempted enticement of a minor.
According to Acting United States Attorney John C. Gurganus, on November 10, 2023, law enforcement conducted an undercover operation during which they advertised an online ad on a known website that publicized sexual services of minors. Mansberger responded to the ad through multiple messages indicating he wanted to engage in sexual activity with a 13-year-old minor.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, Patton Township Police Department, the Centre County District Attorney’s Office, Williamsport Police, and the Lycoming County District Attorney’s Office. Assistant U.S. Attorney Alisan V. Martin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.usdoj.gov/psc.
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Canadian National Charged with Stealing Approximately $65 Million in Cryptocurrency from Two DeFi ProtocolsRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Andean Medjedovic with wire fraud, computer hacking and attempted extortion for stealing approximately $65 million in cryptocurrency from the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, which are sophisticated financial platforms residing on cryptocurrency blockchains. Medjedovic is also charged with laundering the proceeds of the theft. He is currently at large.
John J. Durham, United States Attorney for the Eastern District of New York; Antoinette Bacon, Supervisory Official of the Justice Department’s Criminal Division; Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the indictment.
“As alleged, the defendant executed a highly sophisticated scheme to exploit two decentralized finance protocols and steal tens of millions of dollars’ worth of cryptocurrency from investors,” stated United States Attorney Durham. “My Office remains at the forefront in prosecuting cutting-edge cases involving new and emerging technologies, demonstrating our commitment to protecting all financial markets, including the digital assets markets. Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.”
Mr. Durham expressed his appreciation to the United States Securities and Exchange Commission’s Crypto Assets and Cyber Unit for their valuable assistance during the investigation.
“This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” stated IRS-CI New York Special Agent in Charge Chavis. “It’s alleged that Medjedovic executed a hack that stole nearly $65 million in crypto between two schemes, leaving liquidity pool investors in the red. In investigating this case, IRS-CI New York’s Cyber group worked closely with its federal partners while leveraging resources from IRS-CI’s Cyber Attaché at Europol and the J5 Cyber Group. Even with the complexities of DeFi, we tracked down who is responsible for this large-scale theft, and he is now a wanted man.”
“Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They're stealing money that isn't theirs, and they're breaking the laws of this country. We allege Andean Medjedovic violated several of those laws, and he, along with all the other cyber criminals who believe they're untouchable, will face justice,” stated FBI Assistant Director in Charge Dennehy.
“These charges are a result of HSI New York’s determination to disrupt Andean Medjedovic’s alleged sophisticated far-reaching transnational cybercrime and seek justice for the millions of dollars syphoned from financial platforms,” stated HSI New York Special Agent in Charge Walker. “Our global reach, experience and extensive knowledge of the cyber domain allow us to rapidly develop investigations into bad actors who seek to exploit the cryptocurrency market. Our federal partnerships across the globe made this investigation a success to include support from the HSI attaché offices in the Netherlands.”
KyberSwap and Indexed Finance were developers of automated market-making services called “liquidity pools” that allowed users to swap cryptocurrency tokens with each other. The liquidity pools were managed by computer code called “smart contracts” and relied on investor contributions of cryptocurrency. As alleged, Medjedovic used manipulative trading to exploit vulnerabilities in the KyberSwap and Indexed Finance smart contracts. These manipulative trades enabled Medjedovic to drain approximately $65 million in cryptocurrency that belonged to investors from the KyberSwap and Indexed Finance liquidity pools.
The KyberSwap Exploit
As alleged in the indictment, in 2023, Medjedovic planned and executed a scheme to exploit vulnerabilities in the KyberSwap protocol. KyberSwap was a DeFi protocol and developer of liquidity pools on several public blockchains, including the Ethereum and Arbitrum networks. Liquidity pools use user-contributed cryptocurrency to facilitate trading and market-making in cryptocurrencies. The KyberSwap liquidity pools were managed by computer code or “smart contracts” called automated market makers or “AMMs,” which set prices in the KyberSwap liquidity pools.
In November 2023, Medjedovic exploited vulnerabilities in the KyberSwap computer code to drain the KyberSwap liquidity pools. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrency to create artificial prices in the KyberSwap liquidity pools. Medjedovic then calculated precise combinations of trades that would cause the KyberSwap AMM to “glitch,” in his words, allowing him to steal tens of millions of dollars in cryptocurrency from the liquidity pools. In total, Medjedovic stole approximately $48.8 million in investors’ cryptocurrency from 77 KyberSwap liquidity pools on six public blockchains.
Following the exploit, Medjedovic attempted to extort the developers of the KyberSwap protocol, as well as KyberSwap’s investors and the members of the de-centralized autonomous organization or “DAO” that governed the KyberSwap protocol. Medjedovic demanded control of the KyberSwap protocol and the KyberSwap DAO in exchange for which he would return approximately 50% of the cryptocurrency that he had stolen.
Medjedovic also attempted to launder the proceeds of his theft, including through “bridge” protocols used to transfer cryptocurrency from one blockchain to another, and through a cryptocurrency “mixer” used to conceal the source of digital assets. After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency.
The Indexed Finance Exploit
As alleged in the indictment, Medjedovic committed a similar exploit of the Indexed Finance DeFi protocol. Indexed Finance liquidity pools are referred to as “index pools,” and function similarly to a mutual fund or exchange-traded fund in traditional finance. Instead of holding a basket of traditional equities, the index pools held an index of digital tokens contributed by users.
In October 2021, Medjedovic used manipulative trading to exploit two Indexed Finance liquidity pools on the Ethereum network. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrencies to distort a process called “re-indexing,” which was used by the Indexed Finance smart contracts to add a new token to the liquidity pools. Medjedovic used the borrowed cryptocurrency to engage in manipulative trading to cause the Indexed Finance smart contracts to set artificial prices during the re-indexing process. He then stole approximately $16.5 million in investor cryptocurrency from the liquidity pools.
Beginning after the Indexed Finance exploit, in or around 2022, Medjedovic conspired with another person to launder the proceeds of his illegal conduct through cryptocurrency exchange accounts that were opened using false information, and by using a cryptocurrency mixer. Among other things, Medjedovic maintained a step-by-step playbook for moving large amounts of cryptocurrency through the mixer, which he titled a “moneyMovementSystem.” In other documents, Medjedovic discussed circumventing “know your customer” or “KYC” procedures and using cryptocurrency exchange accounts opened with false KYC information for “hacks and cashing out.”
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections, with the Justice Department Criminal Division’s National Cryptocurrency Enforcement Team (NCET). Assistant U.S. Attorneys Nick M. Axelrod and Andrew D. Reich of the Eastern District of New York and NCET Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case with assistance from Paralegal Specialists Liam McNett and Madison Bates. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.
Valuable assistance was provided by the Justice Department’s Office of International Affairs. The Office thanks the Netherlands’ Public Prosecution Service and the Dutch National Police’s Cybercrime Unit in The Hague and United States Customs and Border Protection, New York Field Office.
The Defendant:
ANDEAN MEDJEDOVIC
Age: 22
CanadaE.D.N.Y. Docket No. 24-CR-529 (NGG)
24-cr-529_andean_medjedvovic_indictmenrt.pdfCanadian Man Charged in $65M Cryptocurrency Hacking SchemesRead the Press Release
Note: View the indictment here.
A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.
According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.
Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.
Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.
IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation.
Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Group Indicted for Interstate Transportation of Stolen Property ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – DEATHONY BLOCKER, age 38, JAMES BLOCKER, age 37, JOVAN COLLINS, age 34 (“COLLINS”), LORENZO TAYLOR, age 39 (“TAYLOR”), NEMIRAH DAVIDSON, age 38 (“DAVIDSON”), and PATRICK GARLAND, age 39 (“GARLAND”), residents of California, were charged on January 30, 2025 in a two-count indictment for conspiracy to commit interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 371, and interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 2314, announced U.S. Attorney Duane A. Evans.
According to the indictment, DEANTHONY BLOCKER, JAMES BLOCKER, COLLINS, TAYLOR, DAVIDSON, and GARLAND conspired to transport thousands of cartons of cigarettes interstate, that were stolen from warehousing facilities in Georgia, North Carolina, and Louisiana. The group cut through fences surrounding the facilities, using bolt cutters and crowbars to access the cigarette cartons.
If convicted of Count 1, the defendants face up to 5 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory $100 special assessment fee. As to Count 2, the defendants face up to 10 years of imprisonment, up to 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish Sherriff’s Office, the Knightdale Police Department, the Atlanta Police Department, the Rockmart Police Department, the Texas Department of Public Safety, and the Fort Stockton Police Department in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Bradford County Man Sentenced to 132 Months in Prison for Distribution of MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert M. Lutz, age 42, of Bradford County, Pennsylvania, was sentenced on January 31, 2025, to 132 months’ imprisonment by United States District Court Chief Judge Matthew W. Brann for distribution of a controlled substance, specifically, 50 grams and more of crystal methamphetamine.
According to Acting United States Attorney John C. Gurganus, beginning sometime in September of 2019 and continuing through February of 2020, Lutz, along with two indicted co-conspirators, engaged in a drug distribution conspiracy that involved the importation and distribution of methamphetamine in Bradford, Columbia, and Lackawanna counties. On at least two occasions, the Federal Bureau of Investigation conducted controlled purchases of crystal methamphetamine from Lutz in exchange for approximately $4,000 dollars. Laboratory testing of that methamphetamine revealed that it was between 93 and 96 percent pure.
The case was investigated by the Federal Bureau of Investigation and Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case.
The maximum penalty under federal law for this offense is a term of life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Boston Man Pleads Guilty to Illegal Possession of a Loaded Semi-Automatic PistolRead the Press Release
BOSTON – A Boston man pleaded guilty today to being a felon in possession of a loaded 9mm semi-automatic pistol.
Tyrone Goforth, 44, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 8, 2025. Goforth was indicted by a federal grand jury in October 2020.
On July 31, 2020, officers responded to a call for a person with a gun at a bookstore in Roxbury, Mass. Goforth was inside the bookstore and fit the description of a man wearing a black shirt and olive pants. Goforth was found to be in possession of a Sig Sauer P938 9mm semi-automatic pistol loaded with five rounds of 9mm ammunition. Due to a 2000 conviction in Suffolk Superior Court, Goforth is prohibited from possessing firearms.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Leah B. Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney John T. Dawley of the Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Bookkeeper Sentenced to Prison for Stealing More Than $1.6 Million from Two Small BusinessesRead the Press Release
CHARLOTTE, N.C. – Marc Weiss, 50, of Charlotte, was sentenced today to 40 months in prison followed by three years of supervised release for embezzling approximately $1.6 million from two small businesses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Weiss was ordered to pay restitution in the amount of $1,644,235.77.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, from 2016 to 2022, Weiss engaged in a scheme to defraud two Mooresville, N.C. small businesses that employed him as a bookkeeper. Over the course of the scheme, Weiss, who was a trusted employee, abused his position and access to the companies’ financial accounts to make more than 100 fraudulent transfers totaling $1.6 million from the companies’ accounts into bank accounts under Weiss’s control. Court documents show that Weiss began to embezzle from the second company while he was already stealing from the first one. To disguise the fraud, Weiss created fake entries in the victim companies’ books and records, categorizing the fraudulent transfers as payments to existing vendors for software development, and advertising and marketing expenses.
According to court records, Weiss used the embezzled funds, in part, to pay for his personal lifestyle, including rent payments for a luxury apartment uptown; payments for high-end vehicles, including an Audi and a Mercedes-Benz; purchases at luxury retail stores, including Luis Vuitton, Gucci, Neiman Marcus, and Tiffany, among others; and luxury vacations, including multiple stays in The Ritz Carlton hotel.
In October 2023, Weiss pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.