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23 January 2025
Erie Man Sentenced to over Six Years in Prison for Methamphetamine TraffickingRead the Press Release
JOHNSTOWN, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 76 months in prison, to be followed by five years of supervised release, on his conviction of conspiracy to distribute and possession with intent to distribute methamphetamine, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Walter Scott McMahon, 58, on January 22, 2025.
According to information presented to the Court, from in and around July 2019 to June 2020, in the Western District of Pennsylvania, McMahon conspired with others to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine. McMahon was intercepted on a federal wiretap obtaining quantities of the methamphetamine that he distributed to others.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Drug Enforcement Administration and Pennsylvania State Police for the investigation leading to the successful prosecution of McMahon. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Dyersburg Man Sentenced in Federal and State CourtsRead the Press Release
Jackson, TN – A Dyersburg man was recently sentenced to prison in both federal and state courts for sexual abuse. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, and Danny H. Goodman, Jr., District Attorney General for the Twenty-Ninth Judicial District, jointly announced the sentence today.
According to the information presented in court, Robert Galler, 52, traveled to Iowa in 2020 and returned to Tennessee with a victim, identified as Minor A in the indictment. In 2022, the Tennessee Department of Children’s Services received a referral of sexual abuse at Galler’s residence in Dyersburg. Upon arrival, DCS workers encountered three minor females who each alleged sexual and physical abuse by Galler. The victims underwent forensic interviews with the Carl Perkins Center for the Prevention of Child Abuse detailing the abuse, which had occurred continually over four years.
On September 11, 2024, Galler pled guilty in federal court to transporting a minor with the intent to engage in illicit sexual conduct. On January 8, 2025, Senior United States District Judge J. Daniel Breen sentenced Galler to 300 months in federal prison followed by 5 years of supervised release and lifetime placement on the sex offender registry. There is no parole in the federal system.
Following federal sentencing, Galler returned to state custody. On January 21, 2025, he entered guilty pleas to one count of rape of a child and one count of rape. Dyer County Circuit Court Judge Mark Hayes sentenced Galler to 25 years’ imprisonment, placement on the sex offender registry, and lifetime supervision. Pursuant to state law, Galler must serve 100% of the sentence. The sentences between both courts were ordered to run concurrently.
District Attorney General Danny H. Goodman, Jr., who assigned Andrew Hays as a Special Assistant United States Attorney, stated, “I would first like to thank Assistant District Attorney, Andrew Hays, for the time he dedicated to this case. The goal of the Office of the District Attorney General is to seek justice on behalf of the State of Tennessee and victims of crime. This case is a perfect example of how the partnership with our office and the United States Department of Justice allowed us to accomplish that goal. This office will always prosecute crimes involving children with as much zeal as possible.”
The case was investigated by the Federal Bureau of Investigation, the Tennessee Department of Children’s Services, and the Dyersburg Police Department.
Acting United States Attorney Reagan Fondren thanked Special Assistant U.S. Attorney Andrew Hays for the Western District of Tennessee, who prosecuted the case, as well as the law enforcement partners who investigated it.
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Dominican Man Sentenced to 13 Years in Prison for Cocaine and Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican man was sentenced in federal court in Boston for his role in a large-scale fentanyl and cocaine distribution operation that trafficked narcotics throughout southeastern Massachusetts, Rhode Island and Connecticut.
Luis Alfonso Mejia-Diaz, aka “El Bello,” 56, was sentenced by U.S. District Court Judge William G. Young to 13 years in prison and five years of supervised release. On April 5, 2023, Mejia-Diaz pleaded guilty to conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine.
Mejia-Diaz was charged in October 2020 along with 14 others. The investigation, which began in March 2017, identified Mejia-Diaz as a large-scale fentanyl and cocaine distributor who operated under his alias, El Bello, and served as a supply source for others in the conspiracy. During the investigation, 991 grams of fentanyl intended for Mejia-Diaz were seized. At the time of his arrest in October 2020, over a kilogram of fentanyl and a loaded firearm from a hidden compartment inside an air compressor in Mejia-Diaz’s residence were also seized in addition to a kilogram press from on top of the air compressor.
Mejia-Diaz is the 13th defendant to be sentenced in the case.
United States Attorney Leah B. Foley; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Fall River Police Chief Kelly Furtado; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; New Bedford Police Chief Paul Oliveira; Westport Police Chief Christopher A. Dunn; and Providence Police Chief Oscar L. Perez, Jr. made the announcement today. Assistant U.S. Attorneys Ann Taylor and Katherine Ferguson of the Narcotics and Money Laundering Unit prosecuted the case.The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Dillon meth, fentanyl trafficker sentenced to more than 11 years in prisonRead the Press Release
MISSOULA — A Dillon man who admitted to trafficking large quantities of methamphetamine and fentanyl he obtained in Washington for distribution in southwest Montana was sentenced today to 11 years and three months in federal prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Jason Louie Tong, 50, pleaded guilty in September 2024 to possession with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in March 2023, the Montana Division of Criminal Investigation learned that Tong was distributing drugs in southwest Montana. Law enforcement recovered drugs from Tong’s vehicle twice in 2023, and during a third stop in 2023, officers arrested him and recovered drugs from his vehicle. Tong took at least four trips to Washington in 2023 to procure meth and fentanyl, with each trip yielding between five and 10 pounds of meth and 10,000 to 50,000 fentanyl pills.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Drug Enforcement Administration, Montana Division of Criminal Investigation, Montana Highway Patrol, Beaverhead County Sheriff’s Office, Butte Silver Bow Law Enforcement and Idaho State Police conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Defense Contractor Executive Pleads Guilty to Bribery Scheme Involving $100 Million in Government ContractsRead the Press Release
SAN DIEGO – Russell Thurston, a former executive vice president at Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, pleaded guilty in federal court today, admitting that he participated in a bribery scheme with other Cambridge employees and former Naval Information Warfare Center employee James Soriano.
According to Thurston’s plea agreement, Cambridge – acting through Thurston and multiple other Cambridge employees – gave various things of value to Soriano, including expensive meals at restaurants in San Diego; a ticket to the 2018 Major League Baseball All Star Game held at Nationals Park in Washington, D.C.; and a job at Cambridge for Soriano’s friend, Liberty Gutierrez. According to Gutierrez’s plea agreement, Gutierrez did minimal work at Cambridge and gave Soriano $2,000 a month from her Cambridge salary.
In return, Soriano, acting in his position as a contracting officer’s representative at Naval Information Warfare Center, influenced the procurement process to ensure that Cambridge was awarded two large task orders. Soriano further ensured that Cambridge was able to capture a steady stream of government funds by influencing a series of projects on those task orders to be approved. According to Cambridge’s plea agreement, as a result of the conspiracy, the government obligated more than $32 million on one of the task orders and over $100 million on the other.
Soriano also allowed Cambridge employees to draft various procurement documents for him, even when Cambridge was competing for contracts against other bidders. Thurston and Soriano also worked together to remove document properties so that other government employees would not know of Cambridge’s involvement in drafting the documents.
According to Thurston’s plea agreement, Thurston received periodic pay bonuses from Cambridge – which totaled between $150,000 and $250,000 – based on the profits Cambridge received from the bribery conspiracy.
Thurston is scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on April 11, 2025.
“The integrity of our nation’s procurement system relies upon the honest dealing of government contractors,” said First Assistant U.S. Attorney Andrew Haden. “This guilty plea shows a commitment to that principle by holding accountable a defendant who repeatedly bribed a government employee to benefit himself at the expense of others.”
“This investigation clearly established Mr. Thurston’s guilt and his plea is a positive step toward accountability for his role in the crime,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate and deter public corruption within the Department of Defense.”
“Mr. Thurston’s actions directly undermined the Department of Defense contracting process that ensures our warfighters get the best gear for their missions while ensuring our taxpayer dollars are responsibly allocated,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Our men and women in uniform volunteer to put their lives on the line in defense of the United States and they deserve better than to be put at unnecessary risk. IRS Criminal Investigation is committed to partnering with fellow law enforcement agencies to protect our servicemembers from this sort of corruption.”
“Using a position of public trust as a means to inequitably grant access to federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge, Weston King. “Our Office will remain relentless in the pursuit of those who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office, and our law enforcement partners for their dedication and commitment to seeing justice served.”
Cambridge was separately charged and pleaded guilty to conspiracy to commit bribery in 24-cr-00759-TWR. Cambridge was ordered to forfeit the $1,672,102.23 in profits it obtained from the bribery conspiracy and pay a $2.25 million fine.
Soriano was charged as a co-defendant and pleaded guilty to conspiracy to commit bribery and fraud and false statement in filing a tax return in 24-cr-0341-TWR. Soriano was also separately charged and pleaded guilty to conspiracy to commit bribery in 23-cr-2282-TWR. Soriano is next scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on May 9, 2025.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Swan, Katherine E.A. McGrath, and Carling E. Donovan.
DEFENDANT Case Number 24-cr-0341-TWR-2
Russell Thurston Age: 52 Mt. Pleasant, SC
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; maximum $250,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
Council Bluffs Man Sentenced to 22 Years in Federal Prison for Drug ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced on January 16, 2025 to 22 years (264 months) in federal prison for conspiracy to distribute methamphetamine.
According to public court documents, Ricardo De Jesus Guzman-Corona, 39, a Mexican national, facilitated the importation and distribution of mass amounts of methamphetamine to the Omaha/Council Bluffs metropolitan area over a three-year period while living in Mexico. Guzman-Corona conspired to distribute methamphetamine with individuals linked to the Sinaloa cartel. Guzman-Corona was responsible for the distribution of more than 4.5 kilograms of methamphetamine in the Omaha and Council Bluffs areas.
After completing his term of imprisonment, Guzman-Corona will be required to serve a five-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 Drug Enforcement Administration, Southwest Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department, and Omaha Police Department.
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.
Council Bluffs Man Sentenced to 210 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced on January 21, 2025 to 210 months in federal prison for receiving child pornography.
According to public court documents, the National Center for Missing and Exploited Children received CyberTips that an account, later determined to be associated with Todd David Matheson, 63, had files containing child sexual abuse material. Law enforcement seized electronic devices during a search of Matheson’s Council Bluffs residence and an Omaha residence. A forensic examination of the seized electronic devices showed that Matheson used the devices to receive and distribute images and videos containing child sexual abuse material.
After completing his term of imprisonment, Matheson will be required to serve a five-year term of supervised release. There is no parole in the federal system. Restitution to the victims will be determined at a later date. Matheson will be required to register as a sex offender.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Federal Bureau of Investigation-Child Exploitation Task Force, Council Bluffs Police Department and Omaha Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Convicted Sex Offender Sentenced to 10 Years in Prison for Amassing Another Cache of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph Gallo, 80, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Juan R. Sanchez to 10 years in prison, five years of supervised release, $12,750 in restitution, and $10,000 in additional special assessments, for possessing thousands of images and videos of child pornography.
In March of last year, the defendant was charged by information with possession of child pornography as a second-time child sex offender. He pleaded guilty in July, admitting that, over a period of more than three years, he had amassed a collection of more than 18,000 images depicting the sexual abuse and exploitation of children.
At the time Gallo committed these crimes, he was already a registered sex offender under Megan’s Law, attending court-ordered sex offender treatment, and serving a sentence of supervised county probation, following his 2015 prosecution in Bucks County for similar offenses.
“Gallo learned nothing from his first conviction and again started seeking out those abhorrent images,” said U.S. Attorney Romero. “Consumers of child pornography like him perpetuate the exploitation and trauma of innocent victims, which my office, HSI, and our partners simply won’t abide. We’ll continue to hold accountable collectors of child sexual abuse material, because protecting kids everywhere is paramount.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations and the Bucks County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Connecticut Man Sentenced to Four Years in Prison for Aiding and Abetting Bank RobberyRead the Press Release
BOSTON – A Connecticut man was sentenced yesterday in federal court in Boston for his role in a Martha’s Vineyard bank robbery.
Romane Andre Clayton, 22, of New Haven, Conn., was sentenced by U.S. District Court Judge William G. Young to four years in prison, to be followed by three years of supervised release. In September 2024, Clayton pleaded guilty to one count of aiding and abetting bank robbery. In March 2023, Clayton was indicted by a federal grand jury and a superseding indictment was filed in April 2023.
Clayton met Omar Johnson, Tevin Porter and Miquel Jones in Martha’s Vineyard on Nov. 16, 2022 to plan a bank robbery. Jones identified the bank they would be robbing and provided the others with dark-colored clothing and plastic masks that resembled an elderly man with exaggerated facial features. On the morning of Nov. 17, 2022, the group drove to the area of the Rockland Trust Bank in Tisbury. Porter, Jones and Johnson hid in bushes near the rear of the bank, and Clayton drove their car to the Manuel Correllus State Forest. Clayton then rode a bicycle back to the bank, where he stood outside to serve as a lookout during the robbery. Clayton had a walkie talkie to communicate with the others inside the bank.
As bank employees arrived to open the bank for the day, Porter, Jones and Johnson forced their way through the rear door of the Rockland Trust Bank in Tisbury. The men were armed with two semi-automatic handguns and wearing the clothes and masks that Jones had provided. Once inside the bank, one of the individuals held a gun to the head of one of the bank employees, forced the employee to open the bank’s vault and took approximately $39,100. The bank employees were bound with duct tape and plastic zip ties while their belongings were searched and the robbers demanded access to one of their vehicles.
Jones, Porter and Johnson then left the bank in an employee’s car, picked up Clayton outside the bank and drove to the Manuel Correllus State Forest where they abandoned the employee’s car in a parking lot. They then fled in the vehicle that Clayton had left for purposes of their escape.
Later that morning, Porter and Clayton left Martha’s Vineyard together on a ferry. Meanwhile, Johnson and Jones drove to a local farm associated with Jones’s landscaping job to dispose of the equipment that had been used during the bank robbery. At the farm, they buried the two firearms used in the robbery in a hole in the ground and burned the remainder of the robbery equipment, including the plastic masks.
After the evidence was disposed of, Jones returned home to his residence where he hid the approximately $39,100 that had been stolen from the bank, in his bedroom under a bureau. Johnson left Martha’s Vineyard, reconvened with Porter and Clayton in Woods Hole and then drove them to the area of Johnson’s home in New Hampshire.
In December 2024 Jones was sentenced to 10 years in federal prison to be followed by three years of supervised release. Johnson and Porter have pleaded guilty and are awaiting sentencing.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by Cape & Islands District Attorney’s Office; Massachusetts State Police; the Tisbury, West Tisbury, Edgartown, Chilmark, Oak Bluffs, Aquinnah, Canterbury (N.H.) and New Haven (Conn.) Police Departments; United States Postal Inspection Service; Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and United States Customs and Border Protection. Assistant U.S. Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.
Columbus man arrested on dog fighting, firearms, drug distribution chargesRead the Press Release
COLUMBUS, Ohio -- A Columbus man was arrested in conjunction with the unsealing of a grand jury indictment charging him with illegally possessing dogs for fighting purposes, possessing methamphetamine with intent to distribute and illegally possessing a firearm subsequent to a felony conviction.
Joel Brown, 37, was arrested yesterday and appeared in federal court in Columbus.
According to the 13-count indictment, Brown was keeping 11 pit bull-type dogs for fighting purposes in Franklin County. The dogs were rescued by Columbus Humane, which worked in conjunction with the Columbus Division of Police. Authorities also recovered tools and supplies commonly used in the training and keeping of dogs for fighting.
The defendant also allegedly possessed a shotgun and various types of ammunition, as well as at least 50 grams of methamphetamine.
The indictment was returned in December and unsealed following Brown’s arrest.
If convicted, Brown faces a maximum penalty of up to 40 years in prison on the drug charge and a maximum of 15 years in prison on the firearms charge. He also faces a maximum penalty of five years in prison per count on each of the 11 animal fighting charges. Under federal law, it is illegal to possess, train, transport, deliver, receive, buy or sell animals intended for use in an animal fighting venture.
Assistant United States Attorneys Nicole Pakiz and Kevin W. Kelley and Senior Trial Attorney Adam Cullman of the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section are representing the United States in this case. The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Humane are investigating the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Columbus Men Sentenced to Prison for Possessing Machine-Gun Conversion DevicesRead the Press Release
Oxford, Mississippi – Two Columbus men will each serve time in prison for possessing a firearm with a machine gun conversion device.
According to court documents, Da’Quavious Robertson, 21, and Demontrell Lowe, 26, previously pled guilty in federal court to possession of a machine gun. Robertson and Lowe had each been found in possession of a Glock 9mm with a machine gun conversion device attached at a convenience store in Columbus in April 2023. Under Federal law, a firearm with a machine gun conversion device, commonly called a “Glock switch,” which is designed to convert a semi-automatic firearm to fully automatic, is considered a machine gun.
Robertson was sentenced today by U.S. District Judge Michael P. Mills to 37 months incarceration followed by three years of supervised release. Robertson was remanded to the custody of the U.S. Marshal following sentencing.
Lowe was previously sentenced in Greenville, Mississippi, on July 17, 2024, by Chief U.S. District Judge Debra M. Brown to 30 months incarceration followed by three years of supervised release.
Following the sentencing, U.S. Attorney Clay Joyner noted the importance of this prosecution and sentence in ongoing efforts to fight violent crime. “The illegal possession and use of machinegun conversion devices like the ones possessed in this case pose an ongoing safety concern,” said Joyner. “Glock switches increase the danger posed by semi-automatic weapons as they quickly and easily convert those firearms into much more lethal machine-guns. This office will continue to work alongside our local, state and federal law enforcement partners to see that those who unlawfully possess and use these devices are held accountable.”
“The illegal possession of handgun conversion devices is a significant threat to our communities,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “The sentence imposed today sends a message to anyone who possesses a switch to convert a semi-automatic firearm into a machine gun will not be tolerated. We will continue to focus our efforts on prohibited individuals who unlawfully possess these devices, remove another violent criminal from our streets, and keep our neighborhoods safe as the top priority for ATF.”
This case was investigated by the S.T.I.N.G. unit of the Lowndes County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Mississippi Bureau of Narcotics, with assistance from the Federal Bureau of Investigation. The case was prosecuted by AUSA Robert Mims.
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.
Columbia Man Sentenced to 15 Years for Fentanyl TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Columbia, Mo., man was sentenced in federal court today for possessing fentanyl that he intended to distribute in Springfield, Mo.
Michael E. Hunt, Jr., 43, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole.
Hunt was found guilty at trial on July 16, 2024, of one count of possessing fentanyl with the intent to distribute.
Law enforcement officers learned that Hunt was planning to transport fentanyl from Columbia to Springfield. Hunt was driving a black Jeep Renegade southbound on Highway 5 on June 12, 2022, when a Laclede County, Mo., sheriff’s deputy conducted a traffic stop for a moving violation. A police service dog alerted to the presence of drugs in the Jeep, at which time Hunt locked the vehicle and refused to give officers the keys.
After the Jeep was unlocked by a local tow company, officers searched the vehicle and found a black gym bag on the front passenger seat that contained approximately 300 grams of fentanyl, which is consistent with distribution and not merely personal use.
This case was prosecuted by Assistant U.S. Attorneys Cameron A. Beaver and Anthony M. Brown. It was investigated by the Drug Enforcement Administration, the Laclede County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Colorado Springs Man Sentenced to 13 Years for Being A Felon in Possession of a FirearmRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Lemich Riddle, 27, Colorado Springs, was sentenced to 156 months in federal prison after being found guilty of being a felon in possession of a firearm.
According to the facts established at trial, on November 1, 2022, officers in Colorado Springs located Riddle, who had an outstanding warrant for his arrest. Colorado Springs Police Department SWAT team officers took him into custody as he was driving back to his apartment. In his car, officers found six firearms. Riddle has a prior felony conviction that prohibits him from possessing firearms.
“We will always prosecute dangerous felons who possess weapons,” said United States Attorney Matt Kirsch. “This sentence reflects the seriousness of this defendant’s continued violation of the law.
"CSPD strives for excellence in every investigation, and those around the illegal possession of firearms are no different,” said Colorado Springs Police Chief Adrian Vasquez. “This case highlights how the quality work of our investigators can be amplified by our partnership with federal authorities, resulting in significant sentencing that holds individuals accountable in meaningful ways that also make our community safer.”
United States District Court Judge Regina M. Rodriguez presided over the sentencing. The Bureau of Alcohol, Tobacco, and Firearms, and the Colorado Springs Police Department handled the investigation. The Violent Crime and Immigration Section of the United States Attorney’s Office handled the prosecution.
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.
Case Number: 23-cr-00051-RMR
Charlotte Man Is Sentenced to 14 Years in Prison for Two Armed CarjackingsRead the Press Release
CHARLOTTE, N.C. – A Charlotte man involved in two separate carjackings was sentenced to prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Kaionta Dabney, 28, of Charlotte, was sentenced to 84 months in prison for each carjacking offense, for a combined sentence of 14 years in prison. U.S. District Judge Michael F. Urbanski also ordered Dabney to serve two years under court supervision after he is released from prison.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on January 11, 2023, Dabney and his co-conspirator, Marcus Mayfield, were driving together when they began to follow a Dodge Hellcat vehicle, driven by R.P., who was the owner of the vehicle. When R.P. parked and exited his vehicle, Dabney and Mayfield approached the victim. Mayfield brandished a firearm and held R.P. at gunpoint, while Dabney took the victim’s key fob for the vehicle. Dabney and Mayfield then got into the vehicle and drove away. The victim reported that in addition to stealing the vehicle, Dabney and Mayfield took $2,000 in cash and a .40 caliber Glock 23 handgun which was in the vehicle.
Eleven days later, on January 22, 2023, court documents show that Dabney and another co-conspirator, Bobby Gene Valentine, followed a Chevrolet Camaro driven by G.P. After G.P. parked and exited his vehicle, Dabney approached G.P., pointed a firearm at him and demanded his car. The victim did not speak English and did not know what Dabney was saying. G.P. then tried to run away, and Dabney shot him multiple times using the firearm stolen from the previous carjacking. Dabney then got in the victim’s vehicle and sped away. The shooting inflicted serious bodily injury to the victim who required emergency surgery.
On June 12, 2024, Dabney pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence for the first carjacking, and carjacking resulting in serious bodily injury for the second incident. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
Valentine pleaded guilty to carjacking resulting in serious bodily injury and possession of a firearm by a felon and was sentenced today to 11 years in prison followed by two years of supervised release.
Mayfield has pleaded guilty to carjacking and is awaiting sentencing.
In making today’s announcement, U.S. Attorney King credited the ATF and CMPD for the investigation of the case.
Assistant U.S. Attorney Timothy Sielaff of the U.S. Attorney’s Office in Charlotte handled the prosecution.
Canadian Dark Web Vendor Sentenced for Importing Millions of Counterfeit Xanax Pills into the United StatesRead the Press Release
ATLANTA - Arden McCann has been sentenced to 30 years in federal prison for his role in operating an international narcotics distribution ring over the dark web where millions of counterfeit Xanax pills were imported and sold to customers in the United States.
“Counterfeit pill production and distribution continues to pose a grave threat to public safety, especially when trafficked anonymously using dark web marketplaces,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Due to the diligent investigative efforts of our state, federal, and foreign law enforcement partners, McCann’s illegal drug operation has been dismantled.”
“Arden McCann’s actions put profits before public health and safety,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives are held accountable.”
“This country is in the midst of a catastrophic overdose epidemic where the threat from synthetic opioids disguised as fake prescription medication is extremely high. The FBI will do whatever is necessary to hold criminals who sell counterfeit drugs accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing is a testament to the great law enforcement collaboration by agencies here in Georgia, as well as nationally and internationally.”
“McCann’s sentencing sends a clear message that drug trafficking and the devastation it brings to our communities will not be tolerated. We remain committed to holding those accountable who distribute this poison and threaten public safety,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “Our office will continue working alongside our law enforcement partners to disrupt these dangerous networks and protect the well-being of our citizens.”
“This drug trafficking investigation required significant coordination from multiple federal, state and local law enforcement agencies along with our international partners to identify and interrupt the distribution of these dangerous drugs,” said Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to pursue anyone who illegally utilize the mail system.”
“The issue of fentanyl and illicit opioids remains a top concern for the Royal Canadian Mounted Police (RCMP), and we remain committed to collaborating with our international law enforcement partners to actively pursue the criminal networks that are fueling this public health epidemic,” said Superintendent Marie Eve Lavallée, Assistant Criminal Operations Officer, Organized Crime Program, RCMP Federal Policing – Eastern Region
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: In October 2015, McCann was arrested by the Laval (Quebec, Canada) Police after he was identified as selling drugs on the dark web using the moniker “DRXanax.” As part of that investigation, Canadian authorities seized approximately two million counterfeit Xanax pills, five pill presses, alprazolam powder, 3,000 MDMA pills, over $200,000 in cash, 15 firearms, ballistic vests, and drug ledgers. The drug ledgers revealed McCann and others purchased alprazolam from China, pressed the alprazolam into counterfeit Xanax pills, then sold the pills to customers throughout the United States.
Despite his arrest, McCann continued to operate on the dark web to sell narcotics, including fentanyl analogues. A subsequent investigation by U.S. law enforcement revealed that from at least November 2015 to February 2020, McCann operated numerous vendor pages on over ten marketplaces on the dark web. The investigation also revealed that McCann, who used various monikers, was one of the largest drug vendors on the dark web between 2015 and 2020, distributing drugs to 49 states and generating more than $10 million dollars of revenue.
McCann was arrested by Canadian authorities on February 26, 2020, on the charges from the Northern District of Georgia, and was extradited to the United States on June 9, 2022.
Arden McCann, 37, of Quebec, Canada, was sentenced by U.S. District Judge J.P. Boulee to 30 years in prison followed by 10 years of supervised release. He was also fined $1 million dollars. McCann was convicted of drug importation and money laundering conspiracies on September 23, 2023, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Food and Drug Administration, Homeland Security Investigations, the United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation, with invaluable assistance provided by the Royal Canadian Mounted Police.
Assistant U.S. Attorney C. Brock Brockington and former Assistant U.S. Attorneys Tal Chaiken and Nick Hartigan prosecuted the case. Trial Attorneys from the Office of International Affairs also provided assistance in this 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.
C.R. Bard, Inc. and Affiliates Pay $17 Million to Resolve Allegations of Healthcare KickbacksRead the Press Release
ATLANTA – C.R. Bard, Inc. (“Bard”) and its affiliates, Liberator Medical Supply, Inc., Liberator Holdings and Rochester Medical Corporation (collectively the “Liberator Defendants”), have agreed to pay $17 million to resolve allegations that they violated the False Claims Act and various state false claims act statutes by providing free samples and discounts to encourage urology practice groups to use Bard’s prescription form for prescribing intermittent catheters for their patients.
“The use of inducements to influence a physician’s medical decisions undermines the important physician-patient relationship and interferes with the goal of doing what is best for the patient,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office will coordinate with our federal and state partners to hold accountable those companies who violate federal law for financial gain.”
“Patients should be able to trust the recommendations they receive from their physician are what’s best for their health, not what’s financially beneficial to another provider,” said Georgia Attorney General Chris Carr. “We’re committed to putting a stop to any type of fraud or abuse within our healthcare system while protecting taxpayer dollars no matter the amount.”
“Kickback schemes undermine the trust patients place in our health care system,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our office will continue to collaborate with our law enforcement partners to safeguard federal health care programs.”
“Illegal kickbacks in any form pervert our health care system, which is designed to ensure that health care providers make decisions based solely on what is best for the patient,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This settlement is part of the FBI and our partners’ on-going effort to eliminate the payment of illegal kickbacks to health care providers.”
“This settlement sends a strong message to healthcare practitioners who blatantly disregard patient-centered care for their own personal enrichment and potentially harm TRICARE, the military healthcare system relied on by our servicemembers, retired military members, and their families,” said Special Agent in Charge Jason Sargenski, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, alongside our law enforcement partners, will continue to aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put our personnel at risk.”
The Government alleges that, between 2016 and February 2020, the Liberator Defendants provided discounts, excessive free samples, and cost savings for in-office supplies to urology practice groups to persuade those practice groups to use Bard’s own “Link” prescription form to prescribe intermittent catheters to their patients. The provision of remuneration – anything of value – to induce a physician to prescribe certain devices over others is prohibited by the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b.
Bard began marketing intermittent catheters in 2013, after it acquired Rochester Medical, Inc., a developer and supplier of urological products. Intermittent catheters are single-use catheters provided to persons suffering from urinary retention to drain the bladder several times a day. They are typically prescribed by the patient’s physician. The patient then takes the prescription to a medical equipment supplier (“DME supplier”) to purchase the intermittent catheters.
The Government alleges that soon after the acquisition of Rochester, Bard sales representatives began leveraging discounts on and free samples of in-office urological products to convince urology practice groups to make Bard’s “Link” prescription form – which listed the various Bard intermittent catheters – the standard catheter prescription form for its group. The patients would then take the Link prescription to a DME supplier to purchase the catheters.
Two years later, Bard announced its acquisition of Liberator Medical and Liberator Holdings to create its own medical equipment subsidiary for the sale of intermittent catheters directly to Medicare and Medicaid beneficiaries. The Government alleges that after this acquisition, Bard used the Link prescription form to encourage urology practices to prescribe intermittent catheters through Liberator Medical rather than other DME suppliers.
The settlement resolves allegations filed by Dirk Etheridge, a former employee of 180 Medical, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States, ex rel. Dirk Etheridge, et al. v. Liberator Medical Holdings, Inc., et al., No 1:17-cv-05187-LMM (N.D. Ga.). Mr. Etheridge will receive a share of the settlement.
The U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.
The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, former Assistant U.S. Attorney Akash Desai, and Georgia State Assistant Attorney General Sara Vann.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Broward County Man Sentenced to Prison for Filing Thousands of Fraudulent COVID-19 Testing Reimbursement Claims, and Ordered to Forfeit over $5.6 Million and PropertiesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Willie F. Murray, Jr. (55, West Park) to five years and one month in federal prison for wire fraud and aggravated identity theft. The Court also ordered Murray to forfeit $5,671,611.74 in U.S. currency, $1,578,925.56 from a bank account, and six real properties located in Punta Gorda, Fort Lauderdale, Belle Glade, Hollywood, and South Bay, Florida, which are traceable to proceeds of the offense. Murray entered a guilty plea on September 20, 2024.
According to court documents, Murray was the registered agent and manager of Lab Tess, LLC (Lab Tess), a Florida company that purportedly provided its customers COVID-19 testing services. In fact, Lab Tess provided no such services. Murray used Lab Tess to submit fraudulent claims for reimbursement to the Health Resources and Services Administration for COVID-19 testing services supposedly provided to uninsured individuals. To complete the illegal scheme, Murray used personal identifying information of individuals incarcerated by the Florida Department of Corrections, individuals falsely reported as having been tested at homeless shelters and electrical substations, and deceased individuals. Murray submitted more than126,000 fraudulent claims and received reimbursement in the approximate amount of $5,671,611, which he used, in part, to purchase real properties in South Florida.
This case was investigated by the U.S. Secret Service and the U.S. Department of Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Suzanne Nebesky.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by contacting the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Brookline Man Charged with Production of Child PornographyRead the Press Release
BOSTON – A Brookline, Mass. man was arrested today and charged with production of child pornography.
Scott Cunha, 24, is charged with recruiting a 15-year-old child to produce and send him to him child pornography. Cunha was arrested at his home in Brookline and will make an initial appearance in federal court in Boston at 12 p.m. today.
According to the complaint, beginning in at least 2022, Cunha communicated over Snapchat with multiple minor children between 10 and 16 years old from across the country. He allegedly recruited the children to take nude images and videos of themselves and send to him over Snapchat, often in exchange for the promise or actual transfer of money. It is alleged that Cunha victimized children in Connecticut, Massachusetts, Indiana, Michigan and Missouri by enticing them to send child pornography and offering to pay them money in exchange for meeting up with him in person and engaging in sex acts with him. According to the charging document, Cunha did, in fact, meet up with at least one minor victim.
Members of the public who believe they may be a victim of this individual or alleged crime should contact call (617) 748-3274.
The charge of production of child pornography carries with it a minimum mandatory sentence of 15 years in prison, with a maximum sentence of life in prison, at least five years of supervised release and a fine of up to $250,000. 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 and Jodi Cohen Special Agent in Charge of Federal Bureau of Investigations made the announcement today. Assistant U.S. Attorneys Torey B. Cummings and Elizabeth Riley of the Human Trafficking & Civil Rights Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore Man Faces Federal Indictment for Sexual Exploitation of a Minor and Producing Child Sexual Abuse MaterialRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment, charging Jose Adan Lopez-Guevara, 37, of Baltimore, with five counts of sexual exploitation of a minor and possession of child sexual abuse material.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI); Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Chief Robert McCullough, Baltimore County Police Department; and Prince George’s County State’s Attorney Aisha Braveboy.
According to the indictment, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct so that a visual depiction could be produced and transmitted. Law enforcement allegedly found Lopez-Guevara in possession of child sex abuse material on December 12, 2024.
If convicted, Lopez-Guevara faces a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor. Additionally, he’s looking at a maximum of 20 years in federal prison for possession of child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt, so an individual charged by indictment is presumed innocent unless they are proven guilty at a later criminal proceeding.
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 n, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, MSP, the Baltimore County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit https://www.justice.gov/usao-md/community-outreach.
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Anesthesiology service provider pays almost $1M to settle False Claims Act liabilityRead the Press Release
HOUSTON – Northwest Anesthesiology and Pain Services (NWAP) has agreed to pay $999,999 to resolve potential violations related to the submission of claims for reimbursement to Medicare for services rendered by its independently contracted pain management practices, announced acting U.S. Attorney Jennifer B. Lowery.
NWAP is an anesthesiology service provider in Houston and surrounding areas.
The allegations include violations of the False Claims Act (FCA) and the physician self-referral law (aka Stark Law).
In 2019, NWAP’s former president Donald Carmichael hired Stacey Green and her company Remedy Physician Solutions as an independent contractor to manage NWAP’s pain management practices. NWAP gave Green authority over the practices’ compensation and discretionary productivity bonus payments.
Following an internal investigation, NWAP claims Green instructed NWAP’s billing company to calculate bonus payments based on lab referrals minus costs, fees and expenses rather than calculating bonuses properly based on the practices’ productivity as provided for in their agreements. NWAP suspected this was done to increase total collections, which formed the basis of Green’s management fee.
From Jan. 1, 2019, through Dec. 31, 2021, NWAP reported it paid approximately $1.8 million in bonus payments as a result of the contractor’s misconduct.
The government alleges such actions created improper financial relationships between NWAP and its independently contracted pain management practices as NWAP was paying bonuses to these practices from its lab revenue as allegedly thinly veiled kickbacks for referrals.
“The Stark Law safeguards the integrity of the Medicare program by ensuring patients receive care based on their physician’s independent medical judgment and not any personal financial interests,” said Lowery. “Our office remains committed to protecting the program and reinforcing the public trust in our federal healthcare system, and we will continue to hold those accountable for violating these safeguards.”
“Prohibited referrals and financial incentives in health care jeopardize patient safety and drive unnecessary medical services. Additionally, submitting false claims to Medicare for services resulting from unlawful referrals undermines the integrity of federal health care programs and diminishes public trust,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “DHHS-OIG remains resolute in holding accountable those who engage in fraud and disregard the patient-first values central to the medical profession.”
This settlement stems from NWAP’s self-disclosure to the U.S. Attorney’s Office (USAO) and DHHS-OIG. NWAP received credit for its self-disclosure and cooperation with the investigation.
The USAO conducted the investigation with assistance from DHHS-OIG. Assistant U.S. Attorney (AUSA) Michelle Luong handled the matter along with former AUSA Andrew Bobb.
Amtrak Employee Admits Participating in $11 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – An Amtrak employee admitted participating in a health care fraud scheme to defraud Amtrak, Acting U.S. Attorney Vikas Khanna announced.
Rodolfo Rivera, 41, of Clayton, Delaware, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud. The Indictment also charges nine other co-conspirators in connection with the scheme: Kevin Frink, 53, of Willingboro, New Jersey; Quinton Johnson, 53, of Irvington, New Jersey; David McBrien, 36, of Levittown, Pennsylvania; Gregory Richardson, 35, of Roosevelt, New York; Michael Toal, 35, of Hazlet, New Jersey; Damany Walker, 41, of Irvington, New Jersey; Timothy Bogen, 59, of Hamden, Connecticut; Dion Jacob, 50, of Brooklyn, New York; and David Lonergan, 64, of Rockaway Park, New York.
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Rivera and his co-conspirators—who were also Amtrak employees—engaged in a scheme to obtain cash kickbacks from health care providers in return for their agreement to allow their health insurance plan to be billed for services that were never provided and were not medically necessary. As a result of the fraudulent claims submitted on behalf of Rivera, his dependent, and other Amtrak employees that he recruited into the scheme, the Amtrak health care plan paid over $2 million in reimbursements. In total, as a result of the conspiracy, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme.
Rivera received thousands of dollars in cash kickbacks from health care providers in return for his participation in the scheme, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Rivera’s sentencing is scheduled for June 26, 2025.
Acting U.S. Attorney Khanna credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Samuel Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Katherine M. Romano of the Health Care Fraud Unit, and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit, in Newark.
The charge and allegations contained in the Indictment against Frink, Johnson, McBrien, Richardson, Toal, Walker, Bogen, Jacob, and Lonergan, are merely accusations, and they are each presumed innocent unless and until proven guilty.
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Defense counsel: Dennis S. Cleary, Esq.
rivera.indictment.pdfAmmon Man Sentenced to 12 Years in Federal Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
POCATELLO – Chase Phillip Hornaday, 41, of Ammon, was sentenced to 144 months in federal prison for distributing child sexual abuse material, U.S. Attorney Josh Hurwit announced today.
According to court records, officers with the Idaho Internet Crimes Against Children (ICAC) Task Force began investigating Hornaday in November 2023, after receiving reports that he had possessed and distributed child sexual abuse material. After executing a search warrant on an online file sharing account belonging to Hornaday, ICAC officers uncovered more than 60 images and videos of child sexual abuse material in the account and found evidence that Hornaday had exchanged child sexual abuse material with other individuals online. On January 10, 2024, officers executed a search warrant at Hornaday’s home and recovered his cell phone, which contained an additional 300 images of child sexual abuse material.
Senior U.S. District Judge B. Lynn Winmill also ordered Hornaday be placed on supervised release for five years following his prison sentence and ordered that he pay $27,000 in restitution. Hornaday will also be required to register as a sex offender. Hornaday pleaded guilty to the charge on October 23, 2024.
“Another Idaho community is safer because of the teamwork between federal law enforcement, the ICAC Task Force, and local sheriff’s offices and police departments,” said U.S. Attorney Hurwit. “We will continue to spare no effort to find and prosecute those who possess or distribute child sexual abuse material.”
“The sentence reflects the serious nature of child exploitation and sends a clear message that those who prey on the most vulnerable members of our society will be held accountable,” said acting Special Agent in Charge Matthew Murphy, who oversees HSI operations in the Pacific Northwest. “The investigation and prosecution of these crimes remain a top priority for our agency, and we are committed to working with our law enforcement partners to ensure that offenders are held accountable to the fullest extent of the law.”
“This sentence represents the hard work of ICAC’s investigators,” said Attorney General Raúl Labrador. “I’m grateful for the continued commitment of every participating agency to keep our kids safe from abuse and exploitation, and for the courts that recognize the seriousness of these crimes.”
U.S. Attorney Hurwit commended Homeland Security Investigations in Idaho Falls, the Bonneville County Sheriff’s Office, the Idaho Falls Police Department, and the Idaho ICAC Task Force for the investigation. Assistant U.S. Attorney Justin Paskett prosecuted this 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Alpha Influence Ringleader Admits to Defrauding Investors of over $20MRead the Press Release
SALT LAKE CITY, Utah – A Utah businessman pleaded guilty today to securities fraud and money laundering after admitting he lied to investors and fraudulently sold investment contracts, which are securities, through his company Alpha Influence, LLC for “Alpha Automated Stores.”
Jeremiah Joseph Evans “The Bull,” 29, of Utah County, was charged by felony information on January 21, 2025.
According to court documents and admissions made at the change of plea hearing, from July 2019 to July 2022, Evans fraudulently sold investments in e-commerce stores through Alpha Influence, LLC., a registered Utah corporation. As part of the scheme to defraud, Evans promised investors to secure money in exchange for the Alpha investments. Evans fraudulently obtained approximately $20,894,674 from approximately 530 investors. As alleged in court documents, Evans lied to investors about how successful his company was and how long it was in operation. Evans sold the e-commerce stores to purchasers as a passive investment and promised that the stores would make consistent, predictable, monthly returns despite knowing this was false. He failed to disclose that the majority of the invested funds went directly to Alpha Influence, LLC, and were primarily distributed as commissions to those selling the fraudulent investment and himself, with only a small portion sent to the servicer of the investors’ stores.
Evans is scheduled to be sentenced April 3, 2025, at 1:30 p.m. before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Mark Woolf, Brian Williams, and Jennifer E. Gully of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
Alleged Sinaloa Cartel Leader Extradited from Mexico, Appears in CourtRead the Press Release
SAN DIEGO – Alleged Sinaloa Cartel cell leader Octavio Leal-Hernandez, aka Chapito Leal, who is believed responsible for trafficking large amounts of methamphetamine, cocaine, heroin and marijuana into the United States from Mexico, appeared in federal court today following his extradition from Mexico yesterday.
Leal-Hernandez was indicted by a federal grand jury in the Southern District of California in May 2020 for International Conspiracy to Distribute Controlled Substances and Conspiracy to Distribute Controlled Substances.
At today’s hearing, Leal-Hernandez was arraigned and entered a not-guilty plea before U.S. Magistrate Judge Barbara L. Major. The judge granted the government’s request that the defendant be held without bond pending trial. His next court appearance is scheduled for March 10, 2025, for a motion hearing/trial setting in front of U.S. District Court Judge Benjamin J. Cheeks.
The government filed a memorandum today in support of its request for detention that describes Leal-Hernandez as a cell leader who rose through the ranks of the Sinaloa Cartel. The memo said Leal-Hernandez was aligned with the Beltran-Leyva faction of the Sinaloa Cartel, specifically with Fausto Isidro Meza Flores, aka Chapo Isidro. Meza Flores is the co-leader of the Beltran-Leyva faction of the Sinaloa Cartel and was designated by the U.S. Treasury Department’s Office of Foreign Assets Control as a Foreign Narcotics Kingpin.
Between January 2012 and April 2012, law enforcement authorities lawfully intercepted wire and electronic communications between Leal-Hernandez and several of his drug trafficking associates. The wiretap intercepts confirmed that Leal-Hernandez was a leader/organizer of the Beltran-Leyva faction of the Sinaloa Cartel in Tijuana, Mexico and was responsible for supplying drug distributors in Southern California and other destinations within the United States. The wiretap intercepts also confirmed that Leal-Hernandez has committed acts of violence to facilitate his drug trafficking activities.
Further investigation after 2012 until his arrest in 2020 confirmed that Leal-Hernandez remained one of the organization’s leaders, responsible for directing, managing, and overseeing the organization’s drug trafficking in Tijuana.
According to the government’s detention memorandum, Leal-Hernandez oversaw the collection and preparation of large shipments of methamphetamine, cocaine, heroin, and marijuana from Tijuana, Mexico into the United States. He then directed organization members to coordinate the logistics of storing the drugs in the organization’s stash houses and transporting them to the organization’s distributors and customers throughout California and elsewhere in the United States.
“This appearance in an American court is the result of our unwavering pursuit of those who perpetuate violence and push narcotics into our communities,” said U.S. Attorney Tara McGrath. “We will hold traffickers accountable, no matter how long it takes.”
“The arrest and extradition of Leal-Hernandez marks a significant victory in our relentless fight against the deadly scourge of narcotics trafficking. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation was made possible due to the dedication, expertise, and extensive investigative work of our special agents and our invaluable federal law enforcement partners,” said Shawn Gibson, Special Agent in Charge of Homeland Security Investigations in San Diego. “We extend our deepest gratitude to all involved for their unwavering hard work, commitment, and collaboration.”
“Drug traffickers are predators that must be held accountable for the harm they cause,” said DEA Special Agent in Charge Brian Clark. “The capture and extradition of Leal-Hernandez is a reminder to any cartel member that there is nowhere to hide; we will use every tool at our disposal to hold you accountable because no one is beyond the grasp of the DEA and our law enforcement partners.”
“International drug cartels cause immeasurable harm to the American public by importing lethal narcotics and committing acts of violence which terrorize our community,” said FBI San Diego Special Agent in Charge Stacey Moy. “The serious and sustained actions of international drug traffickers will not be tolerated, and we will continue to work closely with our partners to keep our communities safe.”
This case is being prosecuted by Assistant U.S. Attorney Joshua Mellor. The U.S. Marshals Service completed the removal of Leal-Hernandez from Mexico to the Southern District of California.
DEFENDANTS Case Number 20cr1224
Octavio Leal-Hernandez Age: 44 Tijuana
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 959, 960, and 963
Maximum Penalty: Life, Mandatory Minimum: Ten years
Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
Maximum penalty: Life, Mandatory Minimum: Ten years
INVESTIGATING AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
U.S. Coast Guard
The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Leal-Hernandez.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
22 January 2025
Washington man pleads guilty to extorting clients using phony escortsRead the Press Release
ALEXANDRIA, Va. – A Washington man pled guilty today to using phony online escort profiles to extort hundreds of thousands of dollars from clients.
According to court documents, from at least August 2020 through October 2024, Abdul Kareem Kabba, 29, used photos and videos of women purchased from OnlyFans to create fake escort profiles on websites such as TheEroticReview.com. Kabba then would assume the identity of the “escort” and communicate with people interested in acquiring services. Kabba would typically ask them to send a deposit using peer-to-peer payment platforms or through websites that are commonly used by adult content creators to receive money. Kabba also would ask clients to verify their identities by sending a picture of themselves holding a form of identification such as a driver license and sending him a link to their social media profiles.
After a client paid the deposit and sent the identifying information, Kabba then would blackmail them. Kabba would threaten the clients that, unless they sent Kabba additional money, he would alert the police, the clients’ families, and the clients’ employers that the men were attempting to solicit a prostitute. As a result of his scheme, Kabba caused a total loss of $692,000 to his victims.
Kabba is scheduled to be sentenced on April 9 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and John T. Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG), made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea.
Assistant U.S. Attorney Christopher Hood for the Eastern District of Virginia and Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-263.
Tilton Veterinarian Agrees to Pay $53,500 to Settle Allegations of Controlled Substances Act ViolationsRead the Press Release
CONCORD – The Tilton Veterinarian Hospital in Tilton, and its owner Sara Laroux, D.V.M., agreed to pay the United States $53,500 to resolve allegations that they violated the Controlled Substances Act (CSA) by failing to keep accurate records of controlled substances, including opioids, Acting U.S. Attorney Jay McCormack announces.
The CSA deters the illegal distribution, possession, dispensing, and improper use of controlled substances. The CSA requires the accurate inventorying, tracking and recordkeeping of each controlled substances to prevent misuse.
“Particularly amid an opioid crisis, compliance with the CSA’s prescription-writing and recordkeeping requirements is essential in ensuring that opioids and other addictive drugs are not diverted and abused,” said Acting U.S. Attorney Jay McCormack. “With the help of our partners, the U.S. Attorney’s Office will continue to prioritize enforcement of this vital statute using all available tools at our disposal.”
“DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substance Act,” said Acting DEA Special Agent in Charge Stephen Belleau, New England Field Division. “We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
Beginning in January 2024, the DEA conducted an investigation into allegations that Dr. Laroux’ controlled substance records at the hospital were incorrect and that controlled substances were missing. The investigation included an on-site inspection of records, and an accountability audit of controlled substance inventories and record-keeping processes at the hospital. The investigation revealed numerous violations of the CSA: including, Dr. Laroux’s failure to maintain complete and accurate records of the controlled substances she received, dispensed, or destroyed, her failure to conduct proper inventories of controlled substances on hand, received by the hospital, and that she had altered pages of her records and forged signatures. The investigation also revealed significant shortages of various controlled substances received by the hospital, as well as that Dr. Laroux failed to provide effective controls and procedures to guard against theft and diversion of controlled substances and was not present at the hospital for large periods of time while leaving controlled substances unmonitored and unsecured.
The Drug Enforcement Administration led the investigation leading to the settlement agreement. The case was handled by Assistant U.S. Attorney Raphael Katz.
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Three Men Sentenced to Federal Prison for Their Roles in a Counterfeit Money SchemeRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Eric C. Schulte has sentenced three South Dakota men convicted of crimes related to a counterfeit currency operation. The sentencings took place on January 13, 2025.
Sonny Chao, age 36, of Oacoma, South Dakota, was sentenced to seven and a half years in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Anthony Martinez, age 24, of Chamberlain, South Dakota, was sentenced to one month in federal prison, followed by two years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Gino Martinez, age 21, of Chamberlain, South Dakota, was sentenced to two years of probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
All three defendants were ordered to pay $7,500 in restitution to the victims of this matter. The restitution was ordered to be paid jointly and severally.
The defendants were indicted by a federal grand jury in June 2024. Chao pleaded guilty to Possession of Electronic Image for Counterfeiting Obligations or Securities and Prohibited Person in Possession of a Firearm on October 16, 2024. Anthony Martinez pleaded guilty to two counts of Passing Counterfeit U.S. Currency on October 17, 2024. Gino Martinez pleaded guilty to one count of Passing Counterfeit U.S. Currency on October 15, 2024.
These convictions stemmed from Chao using electronic images on his computer to create counterfeit $100.00 Federal Reserve Notes that were passed at various businesses throughout central South Dakota between November 28, 2023, and March 17, 2024. Chao would soak genuine $1.00 Federal Reserve Notes in a solution that removed the ink and print the image of a $100.00 Federal Reserve Note on the blank genuine paper. Anthony and Gino Martinez assisted Chao by passing the counterfeit currency at a number of businesses. During the execution of a search warrant at Chao’s residence, law enforcement located two firearms in Chao’s bed. Chao was prohibited from possessing firearms due to prior felony convictions.
This case was investigated by the U.S. Secret Service with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, South Dakota Highway Patrol, South Dakota Fusion Center, South Dakota Division of Criminal Investigation, Chamberlain Police Department, Lyman County Sheriff’s Office, Brule County Sheriff’s Office, Jerauld County Sheriff’s Office, Winner Police Department, Mitchell Police Department, and the Pierre Police Department. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Chao and Anthony Martinez were immediately remanded to the custody of the U.S. Marshals Service.
Stephens County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
OKLAHOMA CITY – DAMIEN CHRISTOPHER HAMILTON, 23, of Stephens County, has pleaded guilty to possession of child pornography in Indian Country, announced U.S. Attorney Robert J. Troester.
On September 4, 2024, a federal Grand Jury charged Hamilton with possession of child pornography in Indian Country. According to the Indictment, on June 13, 2024, Hamilton possessed an iPhone that contained images of child sexual abuse material (CSAM).
On January 22, 2025, Hamilton pleaded guilty, and admitted he possessed images and videos of CSAM. At sentencing, Hamilton faces up to 20 years in federal prison and a fine of up to $250,000.
This case is in federal court because Hamilton is a member of the Chickasaw Nation and the crimes were committed within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Chickasaw Nation Lighthorse Police Department, the Duncan Police Department, and the Oklahoma State Bureau of Investigation. Special Assistant U.S. Attorney Kaleigh Blackwell is prosecuting the case.
Reference is made to public filings for additional information.
Six foreign nationals sentenced for attempting to traffic cocaine into the United StatesRead the Press Release
NEWPORT NEWS, Va. – Four Mexican nationals and two Ecuadoran nationals have been sentenced for possession with intent to distribute cocaine.
According to court documents, on Feb. 24, 2024, while on routine patrol in the Eastern Pacific Ocean, a helicopter from the Coast Guard Cutter Munro detected a go-fast vessel (GFV) with no identifying markings of nationality approximately 450 nautical miles southwest of Acapulco, Mexico, in international waters. The Munro was patrolling in the vicinity and diverted to intercept. A long-range interceptor small boat was launched and navigated to the last known position of the GFV.
The helicopter observed the GFV jettison a fuel barrel and used warning shots to halt the boat. The LRI arrived and a boarding team took control of the GFV.
The team encountered six individuals aboard the GFV, identified as Rudi Euriel Santos Bernal, Juan Manuel Gastelum Valenzuela, Ronny Rosado Alvarez, Juan Ramon Vega Cardenas, Manuel Rodrigo Otero Rivera, and Kennedy Samuel Rivera Flores. None of the individuals made a claim of nationality for the vessel. Permission was granted to treat the vessel as “without nationality,” and a full law enforcement boarding was conducted. The boarding team safely located and then transferred to the cutter all contraband, which included 38 bales of cocaine for an estimated at-sea weight of 1,790 kilograms.
Gastelum Valenzuela pled guilty on Aug. 19, 2024, and was sentenced on Dec. 18, 2024, to two years in prison.
Rosado Alvarez and Rivera Flores pled guilty on August 20, 2024, and was sentenced on Dec. 18, 2024, to two years in prison. On Dec. 19, 2024, Rivera Flores was sentenced to two years in prison. On Dec. 18, 2024, Rosado Alvares was sentenced to two years in prison.
Otero Rivera and Vega Cardenas pled guilty on July 29, 2024. Otero Rivera was sentenced on Dec. 11, 2024, to two years in prison. Vega Cardenas was sentenced on Jan. 21 to two years and three months in prison.
Santos Bernal pled guilty on Sept. 18, 2024, and was sentenced on Jan. 21 to two years in prison.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Ibrar A. Mian, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Kai Wah Chan, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
Assistant U.S. Attorneys Eric M. Hurt and Kevin M. Comstock prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-15.
Seven Individuals Charged in Largest Employee Retention Credit Scheme Case in the United StatesRead the Press Release
Earlier today, at the federal court in Central Islip, an indictment was unsealed charging Keith Williams, Janine Davis, Morais Dicks, James Hames, Jr., Jamari Lewis, Ewendra Mathurin, and Tiffany Williams with conspiracy to defraud the United States, wire fraud, and aiding and assisting the preparation of false tax returns. Six defendants were arrested this morning in New York and will be arraigned this afternoon before United States District Judge Gary R. Brown. Jamari Lewis is not in custody and will be arraigned in the Eastern District of New York at a later date.
John J. Durham, United States Attorney for the Eastern District of New York, Karen E. Kelly, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI ), Brendan Donahue, Acting Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS) and William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI), announced the arrests and charges.
“As alleged, the defendants shamefully took advantage of a global health emergency to line their pockets with millions of dollars that were intended for struggling families and small businesses just trying to stay afloat and lavished themselves with luxury goods while shamefully boasting about their criminal activity,” stated United States Attorney Durham. “My Office will continue to investigate and prosecute those who stole taxpayer dollars intended to assist Americans coping with the impacts of the COVID-19 pandemic.”
“Criminals have found ways to exploit every iteration of aid offered through the COVID-19 pandemic relief funds. The ERC was created to help businesses keep themselves and their employees afloat. Yet, the defendants allegedly stole $44 million from the relief pool and chose to spend their illicit gains on jewelry, designer clothing, and luxury cars. IRS-CI worked this case with our law enforcement partners to make sure that the egregious acts of those arrested today do not go unpunished. It’s time they face justice,” stated IRS-CI New York Special Agent in Charge Chavis.
“This program was created to aide struggling small businesses during the pandemic, instead these individuals exploited it to fraudulently take money from taxpayers for their financial gain. USPIS will continue to aggressively investigate individuals who defraud the government,” stated USPIS Acting Inspector in Charge Donahue. “The outstanding work done by USPIS New York Division, HSI, IRS, DOJ Tax and the United States Attorney’s Office for the Eastern District of New York ensures individuals are brought to justice for their crimes.”
“As alleged in the indictment, an astonishing amount of taxpayer funds were illegally siphoned by a criminal organization from a needs-based government fund. As a result of the close coordination on this investigation, those defendants ultimately found guilty for perpetrating this fraudulent scheme will pay for their greed,” said HSI New York Special Agent in Charge William S. Walker. “HSI continues to work side-by-side with our law enforcement partners to ensure justice is brought to fraudsters who shamelessly steal from our nation’s economic assistance programs.”
Congress created the Employee Retention Credit (ERC) and the Sick and Family Leave Credit (SFLC) to provide emergency financial assistance in connection with the economic effects of the COVID-19 pandemic. The ERC was introduced in 2020 to incentivize businesses to continue paying employees by providing, at first, for a 50% credit on up to $10,000 in wages paid to each employee for the calendar year for businesses closed by government order or who had a 50% drop in gross receipts due to the pandemic. By 2021, the percentage credit increased to 70% per employee per quarter. The SFLC provided a dollar-for-dollar tax credit to businesses that paid wages to employees on sick leave and a two-thirds credit on wages paid to employees on family leave due to COVID-19. Through the PPP, Congress authorized over $600 billion in forgivable loans to small businesses for job retention and other expenses.
According to court documents, between November 2021 and June 2023, the defendants filed over 8,000 quarterly payroll tax returns claiming over $600 million in COVID-19 pandemic relief funds. On behalf of themselves and their clients, the defendants submitted filings seeking payment under the ERC and the SFLC. Several of the defendants also filed fraudulent Paycheck Protection Program (PPP) loan applications.
The scheme primarily operated out of Williams’s purported credit repair business, which was called “Credit Reset.” To claim the ERC and SFLC funds, the defendants and their co-conspirators submitted tax returns to the IRS on behalf of shell businesses that, in the vast majority of cases, had no legitimate operations or employees. In total, the defendants and their co-conspirators successfully secured over $44 million in government funds through this scheme, which they then spent on goods including jewelry, electronics, designer clothing, and luxury automobiles. The defendants flaunted their criminal activity openly. For example, Lewis, an aspiring rapper who uses the stage-name, “Mr. Chaketah,” posted on social media a recording of song he wrote that was entitled, “I’m Really Sophisticated (IRS)” and the album cover for his song featured the logo of the Internal Revenue Service. In a recorded call with a co-conspirator, Williams compared the fraud scheme to “taking candy from a baby.” When investigators executed a search warrant at Williams’s home, they seized millions of dollars’ worth of luxury goods that appear to have been purchased using proceeds of the fraud scheme, including designer items from Rolex, Gucci, Louis Vuitton, Fendi, Balenciaga, and Versace, as well as high-end vehicles, including a Land Rover, a Polaris Slingshot, and a Tesla Model Y.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The defendants each face up to 20 years in prison if convicted of wire fraud, up to five years in prison for conspiracy and up to three years in prison on aiding and assisting in the preparation of false tax returns.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Department of Justice’s Tax Division. Assistant United States Attorneys Adam R. Toporovsky and James R. Simmons of the Eastern District of New York, along with Trial Attorney Richard J. Kelley are in charge of the prosecution, with the assistance of Paralegal Specialist Janelle Robinson. Trial Attorney Samuel B. Bean, formerly of the Tax Division, also assisted on the investigation.
The Defendants:
KEITH WILLIAMS
Age: 46
West Hempstead, New YorkJANINE DAVIS (also known as “Holiday”)
Age: 41
Wheatley Heights, New YorkMORAIS DICKS
Age: 55
Dix Hills, New YorkJAMES HAMES, JR. (also known as “Poppa”)
Age: 65
Campbell Hall, New YorkJAMARI LEWIS (also known as “Mr. Chaketah”)
Age: 26
Queens, New YorkEWENDRA MATHURIN (also known as “Rayda”)
Age: 32
Queens Village, New YorkTIFFANY WILLIAMS (also known as “Joy”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 25-CR-20 (GRB)
erc_indictment.pdfSeven Charged in Nation’s Largest COVID-19 Tax Credit SchemeRead the Press Release
An indictment was unsealed today in Central Islip, New York, charging seven individuals with operating a multi-state conspiracy in which they attempted to defraud the United States of more than $600 million by filing more than 8,000 false tax returns claiming COVID-19-related employment tax credits.
In response to the COVID-19 pandemic and its economic impact, Congress authorized a tax credit that incentivized businesses to keep employees on their payroll, also known as the “Employee Retention Credit” or ERC.
Congress also authorized a credit that reimbursed businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit,” or SFLC, was equal to the wages the business paid the employees during their leave.
According to the indictment, from November 2021 to June 2023, defendants Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr. and Ewendra Mathurin, all current or former New York residents, repeatedly exploited these programs that were intended to help businesses impacted by the COVID-19 pandemic. The scheme was allegedly headquartered at Credit Reset, a purported credit repair business Keith Williams owned and operated. Acting as tax preparers, the defendants allegedly filed more than 8,000 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of themselves and their clients. Each of these returns were allegedly fraudulent in that they claimed SFLC in excess of the amount of wages reported on the tax return, listed the same wages as both qualified sick leave wages and qualified family leave wages or claimed the SFLC and ERC for the same wages, none of which was permitted by law. The defendants allegedly profited from the scheme by receiving tax refund checks from the U.S. Treasury and by charging clients a fee or a percentage of the tax refund the client received. The defendants also allegedly recruited others into the scheme who were compensated by receiving a percentage of fraudulently obtained U.S. Treasury checks.
In total, the defendants sought more than $600 million of which the IRS paid approximately $45 million to the defendants and their clients.
Additionally, the defendants allegedly concealed their preparation of the false tax returns by not listing themselves as the paid preparer on the tax returns and by using Virtual Private Networks (VPNs) to obscure their IP addresses while filing the false returns. If a client did not have a business, members of the conspiracy allegedly would sometimes sell shell companies to them in order to file false tax returns. After noticing discrepancies in the filed returns, the IRS and Social Security Administration (SSA) allegedly requested additional information regarding the tax returns the defendants prepared. In response, members of the conspiracy allegedly would often transmit false information to the IRS and SSA.
Some of the defendants also allegedly submitted false Paycheck Protection Program (PPP) loan applications.
In total, the defendants were charged with 45 counts relating to the scheme including conspiracy to defraud the United States, wire fraud and aiding and assisting in the preparation of false tax returns. Keith Williams, Lewis, Mathurin, Davis, Tiffany Williams and Dicks were also charged with wire fraud in relation to fraudulent PPP applications they submitted.
If convicted, the defendants face a maximum penalty of five years in prison for the conspiracy to defraud the United States charge, a maximum penalty of 20 years in prison for each wire fraud charge arising out of the ERC scheme, a maximum penalty of 30 years in prison for each wire fraud charge arising out of the PPP fraud and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false return charge. A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney John J. Durham for the Eastern District of New York, Acting Inspector in Charge Brendan Donahue of the U.S. Postal Inspection Service (USPIS)’s New York Division and Special Agent in Charge Harry T. Chavis Jr. of IRS-Criminal Investigation (IRS-CI) New York made the announcement.
IRS-CI and USPIS are investigating the case.
Trial Attorney Richard Kelley of the Tax Division and Assistant U.S. Attorneys Adam Toporovsky and James Simmons for the Eastern District of New York are prosecuting the case. Former Tax Division Trial Attorney Samuel Bean assisted with the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Keith Williams et al Indictment.pdfSecond Dubuque Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
A second man who sexually abused a child pled guilty today in federal court in Cedar Rapids, Iowa. John James Dixon, age 41, from Dubuque, Iowa, was convicted of one count of sexual exploitation of a child and one count of distribution of child pornography.
At the plea hearing, Dixon admitted that, between September 2023 and May 2024, he knowingly used, persuaded, induced, and enticed a minor under the age of 18 to engage in sexually explicit conduct. He also admitted that between September 2023 and May 2024, he knowingly distributed visual depictions of a minor engaging in sexually explicit conduct.
Dixon is the second man to plead guilty in this case. On December 18, 2024, Justin James Paisley, age 35, from Dubuque, Iowa, pled guilty to one count of sexual exploitation of children and one count of distribution of child pornography. At Paisley’s plea hearing, he admitted that between the spring of 2022 and May 2024, he knowingly used, persuaded, induced, and enticed minors under the age of 18 to engage in sexually explicit conduct. Paisley also admitted that between August 2023 and May 2024, he knowingly distributed visual depictions of a minor engaging in sexually explicit conduct.
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. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Sentencing before United States District Court Chief Judge C.J. Williams will be set for both Dixon and Paisley after a presentence report is prepared. Dixon and Paisley remain in custody of the United States Marshal pending sentencing. They each face a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $500,000 fine, $95,200 in special assessments, and life term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-1032.
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Registered Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Damian Quillinan, age 50, of Broadalbin, New York, pled guilty today to possession of child pornography while under post-release supervision for prior child pornography offenses. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement.
According to the plea agreement and documents previously filed in the case, Quillinan is a registered sex offender in the State of New York, stemming from his 2017 convictions in the Northern District of New York for multiple counts of receipt and possession of child pornography.
In January 2024, shortly after being released from incarceration on those offenses, Quillinan manipulated a video of a prepubescent minor he obtained over the internet to create a lewd and lascivious image of the minor’s genitalia, which he then possessed on a tablet until it was seized by law enforcement during a search of his residence in September 2024.
Quillinan also admitted to violating the terms of his supervised release on his prior convictions by committing the new offense and by possessing unauthorized internet-capable devices. He is scheduled to be sentenced on the new offense and his supervised release violation by United States District Judge Mae A. D’Agostino on May 22, 2025.
Quillinan faces a mandatory minimum term of 10 years in prison, and up to 20 years in prison, and an additional term of up to 2 years in prison on his violation of supervised release. He also faces a fine of up to $250,000 and a supervised release term of at least 5 years and up to life. Quillinan may also be ordered to pay restitution to the victim of his offense and forfeit the device used in the offense. Quillinan must continue to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
HSI investigated this case. Assistant United States Attorneys Benjamin S. Clark and Nicholas Walter are prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Pryor Man Sentenced to Life After Jury Convicts Him of Aggravated and Abusive Child Sexual AbuseRead the Press Release
TULSA, Okla. – Previously convicted by a jury in July, Adam Joseph King, was sentenced today for Aggravated Sexual Abuse of a Minor Under 12 in Indian Country and Abusive Sexual Contact with a Minor Under 12 in Indian Country.
U.S. District Judge John D. Russell sentenced King, 36, to life imprisonment on both counts.
“King took advantage of a child entrusted in his care and continues to show no remorse for his actions,” said U.S. Attorney Clint Johnson. “The only way to stop someone like King and protect the community is by giving him a lengthy prison sentence.”
“The victim in the case was just eight years old when King began abusing her. Despite the trauma she endured, she found the courage to tell her story in court, and as a result this dangerous predator will now live behind bars where he can never harm another child,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “Her resilience is a powerful reminder of why we do this work – to protect the most vulnerable members of our community and hold violent offenders accountable for their crimes.”
Evidence presented to the jury showed that King repeatedly sexually abused his girlfriend's child from age eight through eleven years old. King exploited the child that was in his care and warned the victim not to tell.
The child victim testified about the sexual abuse she received and eventually reported the abuse to a school counselor. Experts further testified that the evidence collected from King’s bedroom matched the DNA of the child victim.
The investigation showed that King and his girlfriend, the victim's mother, denied any wrongdoing by King. Once the investigation began, the minor victim and sibling were removed from the home and placed in the custody of their grandparents, where they have remained.
The minor victim is a tribal citizen. King will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI, the Catoosa Police Department, and the Oklahoma State Bureau of Investigations investigated the case. Assistant U.S. Attorneys Valeria Luster and Matthew Cyran prosecuted the case.
If you want to make a report of child sexual exploitation, you can use the National Center for Missing and Exploited Children (NCMEC) CyberTipline.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Parkersburg Man Pleads Guilty to Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – John Robert Coe, 66, of Parkersburg and a retired Wood County Board of Education employee, pleaded guilty today to continuing to employ a known illegal alien.
According to court documents and statements made in court, from early 2011 until May 12, 2021, a foreign national from Madagascar worked without monetary compensation at the business that Coe co-owned with Frederick Sayre Anderson. Coe admitted that, at some point in 2011, he learned the foreign national’s presence in the United States was unlawful. Coe further admitted that the foreign national continued to work at the business until May 12, 2021, despite her illegal immigration status.
The foreign national was also housed at the business, sleeping in an office converted into a bedroom. The business has no shower or bathing facilities. Coe permitted the foreign national to bathe at his residence, though at times the foreign national was unable to shower at Coe’s residence.
The business is a laboratory that provides water quality testing kits to state and local governments across the country. Coe admitted that the foreign national performed work for the business including shipping supplies to customers, receiving customer service calls, and handling the company’s accounts receivable.
Coe further admitted that he also had the foreign national perform side jobs for him during this time period. These side jobs included cleaning his residence and editing history book manuscripts that he was preparing for publication. Coe compensated the foreign national in cash for these side jobs.
On May 7, 2021, Coe learned from Anderson that federal immigration agents were at the business and searching for the foreign national. Coe admitted that Anderson suggested later that day that they move the foreign national into Coe’s residence. Coe further admitted that he did not want the foreign national moving into his residence. They discussed moving the foreign national into a motel before agreeing that the foreign national should remain at the business. On May 12, 2021, the foreign national permanently left the business with the assistance of federal authorities.
Coe is scheduled to be sentenced on May 5, 2025, and faces a maximum penalty of six months in prison, up to three years of supervised release, and a $3,000 fine. Coe has agreed to pay $54,740 in restitution.
Anderson, 64, of Parkersburg, pleaded guilty on January 4, 2024, to concealing, harboring, and shielding an alien from detection and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police, and the Parkersburg Police Department.
United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
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. 2:24-cr-178.
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Orange County Man Sentenced to 75 Months for Distributing Methamphetamine and Selling Illegal Pills on the Dark WebRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KYLE WEILAND, who operated an illegal pill and narcotics manufacturing business on the dark web, was sentenced by U.S. District Judge Cathy Seibel to 63 months in prison, along with a consecutive 12-month prison term for violating the terms of his supervised release for a previous, similar offense. In September 2024, WEILAND pled guilty to distributing methamphetamine and selling misbranded drugs.
U.S. Attorney Danielle R. Sassoon said: “In 2019, Kyle Weiland was convicted for selling illegal pills online. After serving his prison term and while still on supervised release, he returned to his illegal drug business. Weiland manufactured dangerous pills, including those containing methamphetamine, that he sold on the dark web to customers throughout the United States. But, just as before, Weiland was caught. This sentence sends a clear message that selling illegal pills does not pay and will be met with serious prison sentences. We will not tolerate the illegal sale of narcotics and other addictive substances into the community, whether those sales take place on the street or the dark web.”
WEILAND admitted that he manufactured, sold on the dark web, and shipped to customers throughout the U.S., various pills that contained or were marketed as methamphetamine, amphetamine, oxycodone, various benzodiazepines, or analogs of these substances. WEILAND agreed to forfeit $2,093,887.72, including $21,341.00 in cash; a 2008 Maserati GranTurismo; a 2013 Maserati GranTurismo; a 2019 McLaren 570S; and various cryptocurrencies.
WEILAND was previously convicted in 2019 for selling illegal pills online and was sentenced to six months in prison followed by three years supervised release. He committed the instant offense while serving his term of supervised release.
* * *
In addition to the prison term, WEILAND, 36, of Tuxedo Park, New York, was sentenced to three years of supervised release.
Ms. Sassoon praised the outstanding investigative work of U.S. Drug Enforcement Administration.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shaun E. Werbelow and Justin L. Brooke are in charge of the prosecution.
Omaha Woman Sentenced in Drug ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Amy Holmdohl, age 47, of Omaha, Nebraska was sentenced on January 22, 2025, in federal court in Omaha for her participation in a methamphetamine drug conspiracy. United States District Judge Brian C. Buescher sentenced Holmdohl to 188 months’ imprisonment. There is no parole in the federal system. After Holmdohl is released from prison, she will begin a 5-year term of supervised release.
On December 2, 2022, Drug Enforcement Administration Special Agents conducted a controlled delivery operation at the Holiday Inn Express in Omaha after a United States Postal Inspector found approximately 800 grams of meth in two priority mail express packages addressed to the Holiday Inn.
An undercover Postal Inspector delivered the packages to an employee of the Holiday Inn Express, where later that day surveillance officers observed Amy Holmdohl arrive, enter the lobby, and pick up the two packages at the front desk. Holmdohl was taken into custody in the hotel lobby after she took custody of the two packages.
During a police interview Holmdohl admitted to her involvement in distributing meth, and that she had requested the two packages be sent to her from a California Source of Supply.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Administration.
Omaha Man Sentenced for Meth DistributionRead the Press Release
United States Attorney Susan Lehr announced that Joseph Goeken, age 40, of Omaha, Nebraska, was sentenced January 22, 2025, in federal court in Omaha for distribution of methamphetamine. United States District Judge Brian C. Buescher sentenced Goeken to 190 months’ imprisonment. There is no parole in the federal system. After Goeken’s release from prison, he will begin a 5-year term of supervised release.
On March 11, 2024, a Drug Enforcement Agency undercover agent purchased approximately one pound of meth from Goeken in Omaha. The meth was submitted to a crime laboratory for testing, which determined the meth weighed 443 grams of meth and purity was at least 91 percent. Goeken made two other meth sales to the undercover – two ounces on March 5, 2024, and another pound on April 4, 2024.
On April 8, 2024, while DEA agents were preparing to execute a search warrant at Goeken’s apartment in Omaha, a Nebraska State Patrol trooper attempted a traffic stop. Goeken drove away at a high rate of speed, passed traffic in the wrong lane, and abandoned the vehicle two minutes later. Officers found approximately 116 grams of meth (weight with packaging) and a digital scale inside of a bag in the vehicle. Inside Goeken’s apartment, agents found approximately 59 grams of meth (weight with packaging).
This case was investigated by the Drug Enforcement Administration.
Omaha Man Sentenced for Meth ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Luis Avelar, age 28, of Omaha, Nebraska, was sentenced January 22, 2025, in federal court in Omaha for conspiracy to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Avelar to 262 months’ imprisonment. There is no parole in the federal system. After Avelar’s release from prison, he will begin a 5-year term of supervised release.
Beginning in 2020, Drug Enforcement Agency (DEA) agents identified Avelar as a suspect involved in meth distribution in the Omaha area. On March 11, 2020, Avelar was seen leaving an apartment with a backpack where a confidential source later purchased one pound of meth from someone else. On April 18, 2023, another confidential source attempted to purchase a half-pound of meth from Avelar. Avelar went with the confidential source to meet Avelar’s supplier, but the sale did not occur because the supplier refused to sell less than one pound.
On December 30, 2023, DEA agents interviewed Avelar at the Douglas County Jail. After being advised of his rights, Avelar admitted to his role in meth distribution. Avelar told the agents he started selling meth in Omaha in 2020. Avelar told agents he sold a pound of meth for a Mexico-based drug supplier four or five times. Avelar also said he rented a storage unit for meth to be stored. After someone was busted in a hotel, Avelar went to the storage unit and cleaned it out, delivering at least 10 pounds of meth to a co-conspirator’s house. Investigators confirmed that Avelar rented a storage unit in Omaha from November 7 to November 23, 2022. The unit was rented in the name of Avelar’s girlfriend. Avelar was identified via surveillance footage being at the storage facility on November 23, 2022, the same day Bellevue police had busted someone with 11 pounds of meth in a motel room.
This case was investigated by the Drug Enforcement Administration. This prosecution 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.
Ohio Man Sentenced to Prison for Federal Gun Crime and Violating Supervised ReleaseRead the Press Release
HUNTINGTON, W.Va. – Jermaine Demaul Cathey, 43, of Columbus, Ohio, was sentenced today to eight years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm and violating supervised release.
According to court documents and statements made in court, on April, 20, 2023, law enforcement officers arrested Cathey on an outstanding warrant from Ohio after conducting a traffic stop of a vehicle Cathey was driving in Huntington. Officers searched the vehicle following the arrest and found a loaded SCCY model CPX-1 9mm pistol under the vehicle’s center console. Cathey admitted to possessing the firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Cathey knew he was prohibited from possessing a firearm because of his prior felony convictions for aggravated robbery in Franklin County, Ohio, Court of Common Pleas on August 28, 2006, being a felon in possession of a firearm and attempting to commit a felony in Cabell County Circuit Court on January 17, 2013, and being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on December 11, 2017.
Officers executed a search warrant for the vehicle after it was towed. Officers seized approximately 75 grams of fentanyl, 6 grams of methamphetamine, and 2 grams of cocaine base, also known as “crack,” from the vehicle.
At the time of this offense, Cathey was serving a term of supervised release as a result of his 2017 conviction for being a felon in possession of a firearm. Today’s sentence includes one year and three months in prison for committing a crime while on supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 result
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 Nos. 3:23-cr-179 and 3:17-cr-73.
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New Orleans Man Sentenced for Federal Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA –GEOURVON SEARS (“SEARS”), age 27, was sentenced on January 16, 2025 by Chief U.S. District Judge Nannette Jolivette Brown to 111 months in prison followed by five years of supervised release, along with a $200 mandatory special assessment fee, after previously pleading guilty to possession with intent to distribute methamphetamine, 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 that drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, on June 6, 2024, New Orleans Police Department officers executed a search warrant at SEARS’s residence. Officers recovered SEARS’s backpack, which contained methamphetamine, tapentadol, and marijuana that SEARS intended to sell. Officers also recovered two loaded firearms—a Romarm/Cugir Model Mini Draco semi-automatic pistol and a Norinco Model SKS rifle—that SEARS possessed, in furtherance of his possession with intent to distribute controlled substances.
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. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Haven Man Sentenced to More Than 5 Years in Federal Prison for Possessing Gun While on Supervised ReleaseRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that SHAQUIL GARY, 31, of New Haven, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a firearm while on federal supervised release.
According to court documents and statements made in court, in January 2016, Gary was sentenced in New Haven federal court to 96 months of imprisonment and five years of supervised release for committing an armed robbery of an ATF informant in August 2014. After pleading guilty to the offense and while awaiting sentencing, Gary attempted to send a copy of a non-public case report to friends and family members with instructions to post it on Facebook and tell others that an individual identified in the report was cooperating with law enforcement officers.
In April 2022, a white SUV was identified as being involved in shooting incidents in New Haven and Hamden. On April 19, 2022, investigators saw Gary exit the SUV after parking it on Shelton Avenue. Gary ran from pursuing officers and discarded a firearm during the chase. Gary was apprehended on Hazel Street, and officers recovered a loaded Glock model 17, 9mm pistol, that he had thrown.
The handgun had been reported stolen in Waterbury in 2018. Subsequent analysis of the gun using the National Integrated Ballistic Information Network (NIBIN) connected it to multiple gang-related shooting incidents in early 2019 while Gary was incarcerated in federal custody, including a shooting near Eastern Street in New Haven on January 23, 2019, where a suspected member of the Exit 8 gang of New Haven was found suffering from a gunshot wound; a shots fired incident near Eastern Street in New Haven on January 28, 2019, where a witness observed a male firing a handgun from a car and into the front window of an apartment; and the shooting of two individuals near Shelton Avenue in New Haven on February 5, 2019.
Gary’s criminal history also includes state felony convictions for the sale and possession of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On September 4, 2024, Gary pleaded guilty to unlawful possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New Haven Police Department, and the Hamden Police Department. The case was prosecuted by Assistant U.S. Attorney Robert S. Dearington.
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. In May 2021, the Justice 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 www.justice.gov/psn.
New Britain Man Admits Recording His Sexual Abuse of a ChildRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), New England, announced that ORLANDO GUZMAN, 73, of New Britain, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to child exploitation offenses stemming from his sexual abuse of a minor and his using an app to share and receive child sexual abuse material.
According to court documents and statements made in court, HSI has been investigating a network of individuals who have been using private groups on an internet chat application to share images and videos of child sexual abuse. The investigation revealed that an account associated with Guzman was an active member of two of these groups. The investigation further revealed that, between February and August 2022, Guzman sexually abused a minor female and used mobile devices to record and store images and videos of the abuse.
On September 2, 2022, investigators conduct a court-authorized search of Guzman’s mobile devices. Analysis of the devices revealed more than 4,000 video files and more than 7,000 image files of child pornography, including images and videos depicting Guzman’s abuse of the minor victim.
Guzman has been detained since his arrest on September 7, 2022.
Guzman pleaded guilty to production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by HSI with the assistance of the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Money Launderer Tied to Nigerian Sextortion Scheme Pleads GuiltyRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Dinsimore Guyton Robinson, 29, of Huntsville, AL, pleaded guilty to conspiracy to commit money laundering, after he laundered money for Nigerian sex extortionists. Sentencing before U.S. District Judge Robert J. Jonker, is scheduled for April 24, 2025.
The indictment alleges this group used online payment systems to collect sextortion proceeds and send them to Nigerian sextortionists. According to the indictment, the sextortionists had boys and young men create nude images. After the sextortionists received those images, they allegedly had the victims send funds to the U.S.-based money launderers through online payment systems like Apple Pay, Cash App, and Zelle. The money launderers would keep about 20 percent of the money, convert the rest to bitcoin, and send the bitcoin back to Nigeria.
The indictment alleges that Robinson laundered the funds of Jordan DeMay. In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged three Nigerian nationals in a sextortion scheme that resulted in the death of Jordan DeMay, a 17-year-old high school student from Marquette, Michigan, and targeted more than 100 other victims. Two of the three defendants in that case were extradited to the United States in August 2023 and pled guilty in April 2024 and were later sentenced.
"Dinsimore Robinson's guilty plea to conspiracy to commit money laundering in connection with a sextortion scheme underscores the alarming lengths to which criminals will go, preying on the most vulnerable members of our society," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Robinson's criminal activities were thwarted through the tireless investigative efforts of the FBI in Michigan, Atlanta, and Birmingham, in partnership with the Economic and Financial Crimes Commission of Nigeria and the U.S. Attorney's Office for the Western District of Michigan. This case serves as a powerful reminder that no matter where criminals are located, the FBI is relentless in its pursuit of justice."
Safety Tips and Resources for Victims, Teens, and Parents
The FBI provides the following tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
- Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. This FBI PSA and National Center for Missing and Exploited Children PSA share survivor stories and resources for individuals to get help. More FBI sextortion resources are available here.
This case was investigated by the Federal Bureau of Investigation and the Economic and Financial Crimes Commission of Nigeria. Assistant U.S. Attorney Daniel Mekaru represented the government at the hearing.
The charges in an indictment are merely accusations, and the remaining defendants are presumed innocent until and unless proven guilty in a court of law.
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- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
Missouri Man Convicted of Recording Minor Victim in BathroomRead the Press Release
CAPE GIRARDEAU – U.S. District Audrey G. Fleissig on Tuesday found a southeastern Missouri man guilty of attempted sexual exploitation of a minor after a one-day bench trial.
Rayford Evans, 52, used his cell phone on Nov. 17, 2022, to record a 15-year-old girl while she was bathing and using the bathroom by holding it up to a window above the bathroom door, evidence and testimony at trial showed. The victim saw the phone and told a friend, the friend’s father and then her own father, who contacted police.
Evans, of Doniphan, in Ripley County, will be sentenced later this year. The charge carries a penalty of 15 to 30 years in prison.
The FBI and the Doniphan City Police Department investigated the case. Assistant U.S. Attorney Julie Hunter is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mission Man Sentenced to 25 Years in Federal Prison for Aggravated Sexual Abuse and KidnappingRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a Mission, South Dakota, man convicted of Aggravated Sexual Abuse and Kidnapping. The sentencing took place on January 21, 2025.
Canku Martinez, age 22, was sentenced to 25 years in federal prison, followed by 15 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Martinez was indicted by a federal grand jury in February 2024. He was found guilty following a four-day jury trial in October of 2024.
In the early morning hours of October 29, 2023, Martinez agreed to give the juvenile victim a ride home from a party near Rosebud, South Dakota. Rather than give her a ride home, however, Martinez drove the victim to a secluded area outside of Rosebud and made sexual advances. When the victim rejected his advances, Martinez produced a knife. Martinez then forced the victim to engage in sexual activity. Martinez subsequently dropped the victim off at her residence and told her not to tell anyone what he had done. Martinez left the local area shortly thereafter. The offenses occurred within the Rosebud Indian Reservation.
“Bringing this defendant to justice is the result of tremendous cooperation between federal and tribal law enforcement,” said U.S. Attorney Alison J. Ramsdell. “Mr. Martinez engaged in a despicable course of conduct in this case and subjected the victim to unthinkable sexual violence. The sentence he received today reflects the seriousness of his crimes.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the FBI. Senior Litigation Counsel Kirk Albertson prosecuted the case.
Martinez was immediately remanded to the custody of the U.S. Marshals Service.
Member of Lummi Nation convicted of Assault by StrangulationRead the Press Release
Seattle – A member of Lummi Nation was convicted today in U.S. District Court in Seattle of Assault by Strangulation, announced U.S. Attorney Tessa M. Gorman. Joseph Michael Quincy Jefferson, 35, was found guilty following a seven- day jury trial. Jurors deliberated about ninety minutes before reaching the guilty verdict. U.S. District Judge Lauren King scheduled sentencing for April 10, 2025.
According to records filed in the case and testimony at trial, on the night of April 8, 2023, Jefferson punched, pushed, and strangled his live-in partner. Sitting on her back he used the crook of his elbow to apply pressure to her neck, strangling her and causing her to black out twice. When the victim regained consciousness, she ran from the home barefoot and in her underwear, calling a friend and a neighbor requesting help. The victim went to the Lummi Nation Police Department and to the hospital. The victim made consistent statements to police and to those giving medical care, that she had been strangled. Medical providers documented her injuries that were consistent with being punched, pushed into a metal bookcase, and strangled. Her nose was broken.
At trial, Jefferson claimed he acted in self-defense. During her testimony, the victim minimized Jefferson’s conduct.
In closing arguments prosecutors detailed how the medical records and recorded statements proved the defendant’s guilt beyond a reasonable doubt. “He was the aggressor... There is no evidence that he faced immediate use of unlawful force,” Assistant U.S. Attorney Celia Lee said in her closing argument. “This is a case of gratuitous, intentional violence from someone who was jealous, angry, and drunk.”
Jefferson has been in custody since his bond was revoked in late October 2024 due to his ongoing contact with the victim in violation of his conditions of pretrial release. He remains in custody pending sentencing.
Assault by Strangulation is punishable by up to ten years in prison.
The case was investigated by the Lummi Nation Police Department and the FBI.
The case was prosecuted by Assistant United States Attorneys Celia Lee and Erika Evans. Ms. Lee serves as a Tribal Liaison for the U.S. Attorney’s Office. Ensuring public safety on tribal lands is a critical responsibility of the U.S. Attorney’s Office, Western District of Washington.
Man who Defrauded Investors in Sports Betting Fund Sentenced to 48 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who stole $650,000 from investors in a sports betting fund to 48 months in prison and ordered him to repay the money.
Elijah A. Goshert, 48, defrauded investors in the “Magellan Sports Fund” from at least Feb. 1, 2017, through Nov. 15, 2023. Goshert falsely claimed that he was using a “sophisticated computer algorithm” that substantially reduced betting risks. Goshert sent false performance updates claiming substantial investment profits while spending most of the victims’ investments on unauthorized expenses. Goshert stole about $654,861 from at least 12 victims.
In a letter to the court, one of Goshert’s victims said he lost $60,000 and spent another $20,000 in legal fees over years trying to get his money back. Another, who invested $50,000, wrote that he’d suffered severe emotional and psychological damage due to chronic anxiety and stress and the betrayal of trust by someone he considered a close friend. Goshert repeatedly lied to the victim about why he couldn’t access his money, even falsely claiming that he’d sold the betting fund to a private equity firm.
In court, Assistant U.S. Attorney Derek Wiseman said Goshert’s crime was “a yearslong sophisticated scheme” not a “one-off lapse in judgment.”
“Scamming people who trust you is especially loathsome,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division. “Unfortunately, the way Elijah Goshert targeted his victims is not unique. When white-collar criminals exploit the trust that already exists within their social circles, it’s known as affinity fraud.”
Goshert pleaded guilty in October in U.S. District Court in St. Louis to three counts of wire fraud.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.
Man who Aided and Abetted False Statements in the Purchase of Multiple Firearms Sentenced to over Twenty Years in Federal PrisonRead the Press Release
A man who used his girlfriend to purchase guns for others and himself was sentenced today to 260 months in federal prison.
Levi Allen Doolin, age 22, from Cedar Rapids, Iowa, received the prison term after a June 26, 2024 guilty plea to three counts of aiding and abetting false statements during the purchase of a firearm. In September 2023, Doolin aided and abetted his then girlfriend, Jasmin Fox, who was previously sentenced in federal court, when she attempted to and did successfully purchase multiple firearms on behalf of others. The evidence at the sentencing hearing showed that Doolin used one of the firearms purchased by Fox in two different shots fired incidents in Cedar Rapids as well as in a robbery. The evidence at the hearing also showed that Doolin had previously possessed firearms as a drug user while on high-risk supervision. In imposing its sentence, and in reflecting on Doolin’s serious criminal history, the sentencing judge noted that Doolin was “out of control.”
Doolin was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Doolin was sentenced to 120 months on two counts and 20 months on the third count, with the sentences to run consecutively for a total of 260 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Doolin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cedar Rapids Police Department, and the Iowa Division of Narcotics Enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR- 00026.
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Man Indicted for Involuntary Manslaughter on Bois Forte ReservationRead the Press Release
DULUTH, Minn. – A man has been indicted for involuntary manslaughter after the death of a woman on the Bois Forte Reservation, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to court documents, on December 17, 2024, the St. Louis County 911 Center received several calls regarding an apparently intoxicated woman walking on Tibbets Trail near the Fortune Bay Resort and Casino. Officers were dispatched to the scene and discovered an unconscious woman lying in the snow. The victim was transported from the scene and pronounced dead. Vehicle debris at the scene included pieces from a dark blue vehicle and pieces of plastic that appeared to be headlights or turn signals. Given this information and the location of the accident, law enforcement contacted the Fortune Bay Resort and Casino for any surveillance footage that may show blue vehicles departing the casino around the time of the 911 calls. Casino staff was able to identify a dark blue Dodge Durango departing the casino. Eric Scott Peterson, 50, was determined to be the registered owner of the vehicle. A search warrant was executed at his residence, where a blue Dodge Durango was found in the driveway with damage consistent with the debris collected from the accident scene.
Peterson was indicted on two counts of involuntary manslaughter. He was arraigned yesterday in U.S. District Court before Magistrate Judge Leo I. Brisbois.
This case is the result of an investigation conducted by Bois Forte Police Department, Minnesota State Patrol, and the FBI.
Assistant U.S. Attorney Nichole J. Carter is prosecuting the case.