Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 January 2025
Winona Man Sentenced to Prison for Drug TraffickingRead the Press Release
Oxford, Mississippi – A Winona man was sentenced today to seven years in prison for drug trafficking.
According to court documents, Michael Fleming, 37, previously pled guilty to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, a Schedule II controlled substance. This charge carries a mandatory minimum sentence of five years of incarceration. U.S. District Court Judge Glen Davidson sentenced Fleming today to 84 months of incarceration followed by four years of supervised release. Fleming was remanded to the custody of the U.S. Marshals following sentencing.
“This office will continue to work alongside our local, state and federal partners to hold accountable those individuals who seek to profit from selling dangerous drugs in our communities,” said U.S. Attorney Clay Joyner. “If you choose to make money by selling poison to others, find a new profession or face prison.”
“This sentencing is a testament to the outstanding collaboration between all levels of law enforcement with the North Mississippi U.S. Attorney’s Office, Mississippi Bureau of Narcotics, and Montgomery County Sheriff’s Office,” said Mississippi Department of Public Safety Commissioner Sean Tindell. “Through dedication and teamwork, we are making our communities safer and sending a clear message that drug trafficking will not be tolerated in our state.”
This case was investigated by the Montgomery County Sheriff’s Office and the Mississippi Bureau of Narcotics. The case was prosecuted by Assistant U.S. Attorney Robert Mims.
Windermere Woman Charged with COVID Relief FraudRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the filing of a criminal complaint charging Carolina Amesty (30, Windermere) with two counts of theft of government property related to COVID relief fraud. Each count carries a maximum penalty of 10 years in federal prison.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Small Business Administration–Office of Inspector General and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Megan Testerman and Diane Hu.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.
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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Wausau Man Sentenced to More Than 8 Years for Cocaine Trafficking and Firearms PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Craig C. Gates, 46, Wausau, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 106 months in federal prison for possessing cocaine intended for distribution and possessing a loaded firearm in furtherance of a drug trafficking crime. The prison term will be followed by 5 years of supervised release. Gates pleaded guilty these charges on October 28, 2024.
In February 2022, Central Wisconsin Narcotics Task Force officers began investigating a methamphetamine and cocaine trafficking organization operating in Wausau, Wisconsin, led by Tommie Haney and Quo Vadis Lewis. The multi-year investigation involved the seizure of drug-laden packages from the mail, controlled purchases of narcotics, and seizures of firearms and large quantities of drugs from residence searches. From the investigation, officers believe the drug trafficking organization was distributing kilograms quantities of methamphetamine and cocaine.
Craig Gates was identified as a frequent source of cocaine for Lewis and on June 28, 2023, officers with the Central Wisconsin Narcotics Task Force executed a search warrant at Gates’s residence. Agents recovered a loaded Ruger 9mm handgun, over 420 grams of cocaine, over $11,000 in cash, and drug trafficking paraphernalia. Gates is prohibited from legally possessing firearms and ammunition because of multiple prior felony convictions.
During a later interview with law enforcement, Gates admitted that he had been selling cocaine for a long time. Gates said that he considered Lewis a friend, knew him a long time, and was Lewis’s source of cocaine. Further, Gates admitted to supplying 3 additional distributors, and receiving one or more kilograms at a time from his own source. Gates thought the cocaine came from cartels in Mexico because it came wrapped and stamped.
Gates was on state supervision for five different state cases while trafficking cocaine. His state supervision has since been revoked and he was ordered to serve one year in county jail.
At sentencing, Judge Conley noted that Gates was identified as a primary source of cocaine for Quo Vadis Lewis and other distributors. Judge Conley highlighted the many aggravating factors in the case, including the large amount of cocaine recovered, the loaded firearm, Gates’s lengthy criminal history including violence, and his being on supervision for five cases while trafficking cocaine.
Eight others were also charged in connection with this drug trafficking organization. Teala L. Kumbera was convicted of conspiracy to distribute cocaine and methamphetamine and sentenced on November 14, 2024, to 54 months in federal prison. Shandel L. Mohr was convicted of conspiracy to distribute cocaine and methamphetamine and sentenced on December 3, 2024, to 12 months and 1 day in federal prison. Quo Vadis Lewis was convicted of conspiracy to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine and possessing firearms as a felon and was sentenced on January 3, 2025, to 12 ½ years in federal prison. Shelby Gutch pleaded guilty to conspiracy to distribute methamphetamine and cocaine on January 7, 2025, and entered into a 24-month diversion agreement. Troy C. Olsen was convicted of conspiracy to distribute methamphetamine and cocaine and was sentenced on January 8, 2025, to 45 months in federal prison. Tommie Haney, Edwin Lewis, and Samuel A. Teague have all pleaded guilty and are scheduled to be sentenced in the coming months.
The charges against Gates were the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. The Marathon County District Attorney’s Office also assisted with the investigation. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
This operation 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.
Warehouse Supervisor Sentenced to 15 Months in Federal Prison for Stealing $2 Million Worth of Fitbits from Amazon and Selling Them on eBayRead the Press Release
INDIANAPOLIS— Dwight Oliver, 40, of Grand Prairie, Texas, has been sentenced to 15 months in federal prison, followed by one year of supervised release after pleading guilty to mail fraud. Oliver has also been ordered to pay $1,435,954.62 in restitution.
According to court documents, from May 2021 to August 2022, Dwight Oliver worked as a facility supervisor for a company that operated a warehouse in Plainfield, Indiana.
Between June 2021 and September 2021, approximately $2 million worth of Fitbit devices went missing in transit to multiple Amazon fulfillment centers across the United States. Through an internal investigation, Amazon discovered that the missing devices were associated with bulk purchase orders that had transited at one time through the warehouse where Oliver worked.
In June of 2021, Oliver began stealing Fitbits devices from the warehouse. He disabled the GPS tracker of his employer’s sprinter van, allowing him to transport the stolen merchandise from the warehouse without detection by his employer. Oliver posted the stolen devices for sale on eBay, representing himself as a legitimate third-party seller.
Oliver used the United States Post Office to mail one hundred stolen Fitbit devices to buyers across the country. In total, Oliver received approximately $687,540.53 for the sale of the stolen Fitbits.
“Modern eCommerce depends modern logistics and supply chains, including many businesses in the Southern District of Indiana. Criminals who abuse their positions of trust to steal from customers and their employers cause harm to our economy and raise prices for everyone,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “I commend our partners at the FBI and our federal prosecutor for their commitment to this case and ensuring that the individual responsible was held accountable. The federal prison sentence imposed here demonstrates that financial crimes can cause serious harm and can result in serious consequences.”
“Today’s sentence should serve as a strong reminder that the exploitation of online platforms won’t be tolerated. Theft of merchandise not only disrupts the digital marketplace but undermines the trust consumers place in e-commerce platforms,” said FBI Indianapolis Acting Special Agent in Charge Danny Youmara. “The FBI remains committed to working with our law enforcement partners to ensure those participating in such schemes are held accountable.”
FBI investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman.
U.S. Attorney Myers thanked Assistant U.S. Attorney Corbin Houston, who prosecuted this case.
###
Virginia Man Pleads Guilty to Real Estate and Tax FraudRead the Press Release
A Virginia man pleaded guilty yesterday to real estate and tax fraud related to his scheme to obtain title to a $1.3 million home in Roanoke County. Specifically, he pleaded guilty to conspiring to commit wire fraud, wire fraud, mail fraud, bank fraud and filing false claims against the United States.
According to court documents and statements made in court, Herman Estes filed a false amended income tax return for 2021 claiming he was entitled to a tax refund of $18.3 million. In March 2023, Estes made a $1.3 million cash offer for a property on Old Mill Plantation Road in Roanoke County. To legitimize this offer, Estes provided the parties to the transaction with a proof of funds letter that Estes created using an online form. Estes also provided the real estate agent with a number for his co-conspirator who he claimed was his trust manager with authority to approve the offer. The co-conspirator purported to approve Estes’ use of his trust funds for the real estate transaction.
As payment for the property, Estes tendered a fraudulent cashier’s check that he had signed in the amount of $1,307,199.43 purportedly drawn on the Federal Reserve Bank of Richmond. Funds in that amount were debited to the settlement company’s trust account before the check was identified as fraudulent.
In March 2023, Estes filed another false tax return claiming he was entitled to a $2.9 million refund.
Estes will be sentenced at a later date. He faces a maximum penalty of 20 years in prison for the wire fraud conspiracy, wire fraud and mail fraud counts, a maximum penalty of 30 years in prison for bank fraud and a maximum penalty of five years in prison for the false claims counts, plus additional potential penalties related to the commission of these offenses while released on bond. Estes also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and IRS Criminal Investigation are investigating the case.
Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Lee Brett for the Western District of Virginia are prosecuting the case. Former Assistant U.S. Attorney Kristin Johnson for the Western District of Virginia assisted in the investigation and prosecution.
United States Files Fair Housing Act Lawsuit Against Lettire Construction Corp. and Related Entities for Failure to Construct Apartments with Features Accessible to Persons with DisabilitiesRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the U.S. has filed a federal Fair Housing Act (“FHA”) lawsuit against LETTIRE CONSTRUCTION CORP. (“LETTIRE”) relating to its failure to design and construct new apartment buildings to be accessible to persons with physical disabilities. The lawsuit also names other entities related to LETTIRE that participated in the design or construction of these residential complexes. Upon filing suit, the U.S. also submitted to the Court proposed consent decrees with LETTIRE, EAST 124TH STREET LLC, and other entities related to LETTIRE which participated in the design and construction of such buildings. These settlements are subject to the review and approval of the U.S. District Judge assigned to the case.
Acting U.S. Attorney Edward Y. Kim said: “Today’s filing is the 20th suit that this Office has brought to remedy the failure of real estate developers to comply with the Fair Housing Act. We appreciate Lettire’s and East 124th Street LLC’s cooperation in taking responsibility for their actions so that more properties are rendered accessible to more people. This Office will remain vigilant in ensuring that developers, construction managers, and architects comply with the FHA and remedy inaccessible housing in this District.”
The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities.
According to the allegations in the Complaint:
The inaccessible conditions at buildings that LETTIRE constructed include excessively high thresholds at building entrances and entrances to common use areas, and bathrooms in individual apartments that lack sufficient clear floor space for people who use wheelchairs. These features in the common use areas of buildings that LETTIRE constructed, as well as in the buildings’ apartment interiors, did not meet the standards set forth in the Fair Housing Act.
The Complaint identifies inaccessible conditions at the following three properties:
- The Tapestry, at 245 East 124th Street in Manhattan. In addition to LETTIRE, the Complaint names as defendants LETTIRE 124th STREET LLC as a co-developer of the Tapestry, and EAST 124th STREET LLC (with whom, as noted above, the Government has reached an agreement subject to Court approval) as the owner and managing member of the Tapestry.
- Chestnut Commons, at 3269 Atlantic Avenue in Brooklyn. In addition to LETTIRE, the Complaint names as defendants UBC CHESTNUT COMMONS LLC as a co-developer of Chestnut Commons, CHESTNUT COMMONS HOUSING DEVELOPMENT FUND CORP. as the owner of Chestnut Commons, and MHANY MANAGEMENT INC. as the managing member of Chestnut Commons. The Government’s claims relating to Chestnut Commons have not yet been resolved.
- The Atrium, at 57 Marcus Garvey Boulevard in Brooklyn. However, by the time that the Atrium opened in 2024, LETTIRE had retained an accessibility consultant, and the identified inaccessible conditions were in the process of being substantially remediated in consultation with the Government. The Atrium has been included in the lawsuit in order to ensure that remaining retrofits are completed.
Due to the inaccessible conditions at the buildings LETTIRE designed and constructed, LETTIRE engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and denied such rights to people with disabilities. The Complaint seeks a court order directing LETTIRE to retrofit individual apartments as well as the public and common use areas of the buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate individuals who suffered discrimination due to the inaccessible conditions.
Under the settlement with LETTIRE and other related entities, LETTIRE agreed to complete necessary retrofits at the Atrium, establish procedures to ensure FHA compliance at future development projects, and to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements. LETTIRE agreed to pay a civil penalty of $20,000, and the related entities agreed to pay a civil penalty of $10,000 each, commensurate with their role in designing and/or constructing the Tapestry and Chestnut Commons.
Under the settlement with EAST 124TH STREET LLC, EAST 124TH STREET LLC agreed to complete necessary retrofits at the Tapestry, establish procedures to ensure FHA compliance at future development projects, and to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements. EAST 124TH STREET LLC also agreed to pay a civil penalty of $10,000, commensurate with its role in designing and/or constructing the Tapestry.
Further, the settlement requires EAST 124th STREET LLC to provide $20,000 to compensate aggrieved persons with respect to the Tapestry. Aggrieved individuals may include those who:
- Were discouraged from living at the Tapestry because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at the Tapestry;
- Paid to have an apartment at the Tapestry made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at the Tapestry as a result of inaccessible design and construction.
People who believe they may have experienced discrimination due to the inaccessible conditions at the above-named buildings developed by LETTIRE may contact the Civil Rights Complaint account at [email protected], use the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
* * *
Mr. Kim thanked HUD for its assistance on the investigation.
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorneys Amanda Lee and Danielle J. Marryshow are in charge of the case.
United States Attorney’s Office Issues 2024 Annual ReportRead the Press Release
DETROIT - The United States Attorney’s Office made significant strides in 2024 in rebuilding community trust, reinvigorating our protection of civil rights, and restructuring our approach to violent crime, United States Attorney Dawn N. Ison announced today. The details of the office’s work in 2024 are set forth in a 62-page annual report highlighting prosecutions, community outreach, trials, convictions, systemic change, and community impact.
United States Attorney Dawn N. Ison stated, “Our office is immensely proud of the work we did in 2024, reducing crime, protecting civil rights, defending our borders, and protecting the federal treasury. This work could not have been accomplished without partnerships across the Eastern District of Michigan. Our dedicated team of lawyers and support staff worked with local, state, and federal law enforcement and community partners to improve the lives of the residents of the Eastern Michigan. This annual report represents the highlights of this work because it would be impossible to detail everything that this incredible team accomplished in 2024.”
The document is available here for review by the public. The report sets forth the work done in service of the richly diverse Eastern District of Michigan. The lawyers and support professionals in our Detroit, Flint, and Bay City offices, along with our partner agencies, had significant accomplishments this year. Among them:
• In fiscal year 2024, our office collected $45,395,510.25 in criminal and civil actions. Of this amount, $32,629,919.83 was collected in criminal actions and $12,765,590.42 was collected in civil actions. These funds are being returned to victims and taxpayers.
• Our efforts to target the most violent offenders who are harming public safety resulted in numerous federal convictions. We obtained a life sentence for the leader of the Seven Mile Bloods Gang who terrorized Detroit’s east side for many years. We also obtained Racketeer Influenced and Corrupt Organizations (“RICO”) convictions for three senior members of the Almighty Vice Lords Nation, a criminal enterprise that operates across the country, including in Detroit. One of the three defendants was sentenced to 70 years in prison while the other two each received 60-year sentences.
• We reached a landmark settlement agreement with the Wayne County Jail resolving allegations that the Wayne County Jail routinely failed to provide crucial services to inmates with disabilities, including access to appropriate prescription medications, mental health services and medical equipment, and failed to conduct medical and mental health assessments.
• We obtained a guilty plea from the former Chief Financial Officer of the Detroit Riverfront Conservancy who had embezzled more than 40 million dollars from the nonprofit. We also obtained a restitution agreement requiring him to pay no less than $44.3 million in restitution as a result of his conduct.
• We remained committed to rooting out public corruption in our community as 2024 saw the Mayor of Inkster plead guilty to bribery charges and the Mayor of Taylor sentenced to nearly 6 years in prison on charges of conspiracy to receive bribes and wire fraud.
• We charged five Chinese nationals, who were students at the University of Michigan, with conspiracy, false statements, and destruction of records in a federal investigation after they were caught photographing military equipment during a joint training exercise involving the Michigan National Guard and the Taiwanese military at Camp Grayling, a U.S. military installation.
• We obtained a 33-year sentence for an incident that took place on the Isabella Reservation in Indian Country where the defendant shot and killed his domestic partner and caused life-threatening injuries to a six-month-old child.
• We convicted seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act by using physical obstruction to intimidate and interfere with employees and patients of a reproductive health clinic.
Although we are encouraged by the results of our efforts in 2024, we recognize that we still have more work to do. The work detailed in the 2024 Annual Report details our ongoing efforts to keep our community safe, protect civil rights, and ensure fairness and opportunity for everyone in our community. Each day, the 210 men and women of the U.S. Attorney’s Office will continue to work diligently to further these goals and to advance the interests of our nation.
Unified Care Services LLC Agrees to Pay $18M to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoansRead the Press Release
Note: View the executed settlement agreement here.
Torrance, California-based chain of skilled nursing facilities Unified Care Services LLC (Unified Care), its affiliates and its owner, Emmanual David, have agreed to pay $18 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly providing false information in support of Paycheck Protection Program (PPP) loan applications and loan forgiveness applications submitted by Unified Care and its affiliates.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business was determined by assessing the employees, revenues, or net worth of the applicant along with all corporate affiliates that shared common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their size and number of employees.
The settlement resolves allegations that Unified Care and its affiliates falsely certified they were small business with fewer than 500 employees when they submitted their PPP loan and loan forgiveness applications in 2020. These applications allegedly failed to disclose that the entities applying were part of a larger chain of facilities that all shared common ownership and control that rendered Unified Care and its affiliates ineligible for PPP loans. The Unified Care affiliates covered by the settlement include: Unified Care Services LLC; Casa Montana LLC; Geri-Care Inc.; Geri Care V LLC; Pacific Palms Healthcare LLC; Foothill Care Center Inc.; Mount Megiddo LLC; Canyon Properties III LLC; Cloverleaf Enterprises Inc.; Foothill Care Center LLC; Foothill Care Center II LLC; David Kleis III LLC; David Kleis II LLC; Miramonte Enterprises LLC; and Washington Enterprises III LLC.
“PPP loans were intended to assist eligible small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”
“COVID-relief programs were designed to help people and businesses during the worst public health crisis this nation had seen in one century,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to pursue those who knowingly cheat taxpayers by violating PPP and other pandemic-related programs.”
“This resolution demonstrates the department’s commitment to ensuring that those who improperly obtain federally guaranteed PPP loans are held accountable and funds repaid to the American taxpayer” said Director of COVID-19 Fraud Enforcement Mandy Riedel of the Justice Department.
“The SBA Office of Inspector General is committed to ensuring the integrity of CARES Act programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General, Western Region. “Through partnerships with federal agencies, we continue to identify fraud schemes and protect relief funds from misuse.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Ashwani Chawla v. Unified Care Services et al., CV 21-5935-GW (CDCA). The whistleblower will receive $2,070,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel (SBA-OGC) and the SBA Office of Inspector General (SBA-OIG).
Senior Trial Counsel Benjamin C. Wei of the Justice Department’s Civil Division and Assistant U.S. Attorney Jack Ross for the Central District of California handled the matter, with assistance from Mary Cvengros of SBA-OGC and Christopher H. Stephens of SBA-OIG.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
U.S. Government Reaches Settlement in Class Action Relating to Discharge Paperwork of Military Veterans Discharged Under “Don’t Ask, Don’t Tell” and Predecessor PoliciesRead the Press Release
On Jan. 3, the United States reached a settlement in Farrell v. Department of Defense, a class action lawsuit filed in 2023 in the U.S. District Court for the Northern District of California. The plaintiffs in Farrell alleged that the Department of Defense’s files for military veterans discharged under “Don’t Ask, Don’t Tell” and earlier policies barring lesbian, gay and bisexual people from serving openly in the military violate the Constitution’s guarantees of equal protection and due process.
Under the proposed settlement, veterans will have the opportunity to request changes to aspects of their discharge paperwork relating to sexual orientation under more streamlined procedures than currently available.
The proposed settlement agreement is subject to final approval by the district court after notice to the class and an opportunity to object.
Additional information for class members about the proposed settlement is available here:
www.defense.gov/Spotlights/Dont-Ask-Dont-Tell-Resources/
www.milreviewbds.mil/Portals/149/Class%20Notice__Farrell%20et%20al__1.pdf
U.S. Attorney’s Office Honors Law Enforcement Personnel for Exceptional Public ServiceRead the Press Release
FAIRVIEW HEIGHTS, Ill. – U.S. Attorney Rachelle Aud Crowe announced the recipients of the 2024 Law Enforcement Public Service Awards on Wednesday. Honorees were selected based on their contributions to successful prosecutions in the Southern District of Illinois.
“In 2024, the U.S. Attorney’s Office charged 248 criminal cases, which is nearly a 23% increase from 2023. We couldn’t prosecute cases without successful investigations, and we were proud to recognize this group of our trusted law enforcement partners with awards for their public service,” said U.S. Attorney Rachelle Aud Crowe.
Awardees include: IRS Agents Jason Bamvakais and Bradley Roessler, DEA Task Force Officer Timothy Birckhead, ATF Agents Duane Clauer and Zachary Green, FBI Agent Raymond Hart, HSI Task Force Officer Robert Wallace, Illinois State Police Sergeant Zachary Heard, Veterans Affairs Office of Inspector General Agent Raymond Vasil and U.S. Marshals Service Deputy William Clay Weier.
The USMS Great Lakes Regional Fugitive Task Force was selected as the group awardee.
“We are elated and grateful to the United States Attorney’s Office for recognizing the outstanding work of the Great Lakes Regional Fugitive Task Force, Southern District of Illinois, and Supervisory Deputy U.S. Marshal Clay Weier with the 2024 Law Enforcement Public Service Award. SDUSM Weier has been an outstanding leader directing the daily activities of the task force. Their recent performance during Operation North Star, a national USMS fugitive operation, reinforced my belief that they are the best task force in the county,” said U.S. Marshal David Davis.
Agent Bamvakais leads exceptional financial investigations and contributes to the office’s Organized Crime Drug Enforcement Task Force caseload, and retired Agent Roessler was recognized for his talent at developing confidential informants.
Agent Birckhead works diligently on fatal drug overdose investigations throughout the Metro East, including the prosecution of Tessa Webber who was sentenced to 15 years’ imprisonment for selling a fatal dose of fentanyl.
“Agent Birckhead is one of the best of the best. He continually investigates with tenacity and perseverance leaving no stone unturned. He also works with a zest for our victims and emulates every police officer’s sworn oath,” said Fairview Heights Police Chief Steve Johnson.
Agent Clauer received recognition for his outstanding work on arson cases and testifying at trials. Agent Green was highlighted for his efforts to educate the law enforcement community in southern Illinois on the prevalence of ghost guns.
“Every day our Special Agents work to make our communities safer, uphold the law, and protect civil rights, and we are happy that two of our Special Agents are being recognized for their outstanding work,” said ATF Assistant Special Agent in Charge Shannon Hamm.
Agent Hart and Officer Wallace received accolades for their tireless and excellent work on child exploitation investigations.
Sergeant Heard was honored for his contributions to investigate human trafficking cases in southern Illinois. In addition, he has led numerous trainings for more than 2,000 law enforcement officers to improve their education on trafficking indications during traffic stops.
Retired Agent Vasil led the financial investigations for four cases charged over the last year regarding disability and PPP loan fraud.
U.S. Attorney S. Lane Tucker Announces Alaska's Designation as Jurisdiction of Focus Under the Violence Against Women Act Reauthorization Act of 2022 (VAWA)Read the Press Release
ANCHORAGE, Alaska – United States Attorney S. Lane Tucker announced that Attorney General Merrick Garland has designated Alaska as a jurisdiction of focus under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022 (VAWA). U.S. Attorney Tucker stated, “Alaska’s inclusion in VAWA provides significant resources for the District of Alaska’s ongoing work to reduce violence against women and children and promote rural justice in Alaska. This work, along with our successful efforts to reduce the flow of illegal narcotics into our State, and to find and prosecute white collar criminals who exploit our most vulnerable, is a tribute to the hard-working women and men of this United States Attorney’s Office.”
U.S. Attorney Tucker continued, “Serving with them in our work to uphold the rule of law and pursue justice fairly and equitably has been the honor of a lifetime. Thank you to our law enforcement partners and to the community members who work with us in these efforts, and to my U.S. Attorney colleagues for their tireless efforts all across the country.”U.S. Attorney Mark Totten Warns of Jury Service ScamsRead the Press Release
Law enforcement will not demand money over the phone
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten today warned citizens in the Western District of Michigan of a prevalent scam. Citizens are being called and told they have warrants for failure to appear and contempt of court relating to failing to appear for jury service. Legitimate law enforcement will never ask for payment over the telephone to “post a bond” or “bond out” or for any other reason.
“Scammers will do anything to rip off their victims — even impersonating law enforcement and court officials,” said U.S. Attorney Mark Totten. “Be aware. Protect yourself. And don’t be afraid to end the call and contact the law enforcement agency directly to verify.”
The callers will claim to be law enforcement officers or court staff and may provide names of real people or badge numbers. This is often information they have found on the internet. They may demand you pay them, often with gift cards or using a QR code. If you think you are being targeted by a scammer:
- Document as much as possible about the call (the caller’s name, telephone number, and information they provide, such as badge number, court or agency with which they claim to be affiliated, and so forth). These details will help you confirm the legitimacy of the claim and help with reporting scams to law enforcement.
- Ask questions. Scammers subjected to ongoing interrogation may hang up and move on to an easier target. Do not worry if they hang up—it is a sign this was a scam.
- Remain calm. Call the court or law enforcement agency directly and see if you missed a summons or court date. Independently locate numbers for courts and law enforcement—do not call numbers the caller provides to you.
- Never give out sensitive information over the phone.
Attempted jury scams can be reported to the Federal Bureau of Investigations and the Federal Trade Commission. For more information about these scams, please see: https://www.miwd.uscourts.gov/jury-scams.
# # #
U.S. Attorney Jessica D. Aber announces resignationRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber announced today that she is resigning as United States Attorney for the Eastern District of Virginia (EDVA), effective January 20, 2025, at 11:59 pm, after serving in the role for more than three years.
“I’ve had the privilege of spending my career as a prosecutor in the Eastern District of Virginia working alongside talented, hard-working public servants who manage matters affecting citizens here and across the world.” said U.S. Attorney Aber. “Concluding my service to the District as its U.S. Attorney has been an honor beyond measure. I am deeply grateful to Senators Mark Warner and Tim Kaine and to President Biden for the opportunity to lead this office, and to Attorney General Garland for his steadfast leadership. I am proud of the work we have done with our federal, state, and local law enforcement partners to enforce the law and build community trust.”
After working in private practice, U.S. Attorney Aber began her service in EDVA in 2009 as an Assistant U.S. Attorney, prosecuting financial fraud, public corruption, violent crime, and child exploitation cases. From 2015 to 2016, she served on a detail assignment as counsel to the Assistant Attorney General for the Criminal Division of the Department of Justice. From 2016 until becoming U.S. Attorney, Ms. Aber served as the Deputy Chief of the Criminal Division for EDVA.
Ms. Aber was nominated by President Biden on Aug. 10, 2021, and unanimously confirmed by the U.S. Senate on Oct. 5, 2021.
Maya D. Song, who currently serves as the First Assistant United States Attorney, will become the Acting United States Attorney upon U.S. Attorney Aber’s departure.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Announces the Implementation of the EDNC Whistleblower Pilot ProgramRead the Press Release
RALEIGH, N.C. – Today, U.S. Attorney Michael F. Easley, Jr. announced that the United States Attorney’s Office for the Eastern District of North Carolina has implemented the EDNC Whistleblower Pilot Program.
“In this office, we are focused on enhancing the identification and prosecution of white-collar crime,” said U.S. Attorney Michael F. Easley, Jr. “The EDNC Whistleblower Pilot Program achieves that by incentivizing individuals to proactively come forward with information about crimes taking place within corporations. The benefit to the participant, if qualified, is avoiding prosecution. We encourage all who may have information on fraud, corruption, or corporate crime, to fill out the short form on our website.”
To encourage early voluntary self-disclosure of criminal conduct and to promote effective enforcement of criminal laws, this office has implemented the EDNC Whistleblower Pilot Program. The program applies to circumstances where an individual discloses information regarding certain covered subjects identified in the policy to this office. These covered subjects include criminal conduct undertaken by or through public or private entities or organizations, including corporations, partnerships, non-profits, exchanges, financial institutions, investment advisers, or investment funds involving fraud or corporate control failures; intellectual property theft and related violations; or offenses affecting market integrity. The policy also applies to disclosed criminal conduct involving state or local bribery or fraud relating to federal, state, or local funds. The policy does not apply to offenses involving violence. Provided all policy conditions are met, this office will enter into a deferred or non-prosecution agreement with the whistleblower.
By clarifying the requirements and benefits of such self-disclosure, this office seeks to incentivize individuals (and their counsel) to provide actionable and timely information. This will, in turn, help us expose more misconduct and better protect the communities we serve.
A full copy of the Policy, and the intake form for applicants, can be found on our website:
https://www.justice.gov/usao-ednc/ednc-whistleblower-pilot-program
Two Money Couriers for Colombian-Based Drug Money Laundering Organization Convicted by Federal JuryRead the Press Release
BOSTON – Two men from Jamaica were convicted yesterday following a four-day jury trial for their involvement in a sophisticated international money laundering organization that laundered more than $6 million in drug trafficking proceeds from Colombian cartels through the United States, Caribbean and European banking systems.
St. Devon Anthony Cover, 61, was convicted of one count of money laundering conspiracy and seven counts of laundering of monetary instruments. Dennis Raymond Rowe, 59, was convicted of one count of money laundering conspiracy, one count of money laundering and two counts of laundering of monetary instruments. U.S. District Court Judge Richard G. Stearns will schedule sentencing for a later date. The defendants were among 20 individuals from Colombia, Jamaica and Florida who were indicted by a federal grand jury in May 2022 in connection with the money laundering conspiracy.
Over the course of the investigation, $1 million was seized from corporate bank accounts and other investigative activity. Nearly 3,000 kilograms of cocaine – with a street value of over $90 million – was traced back to the money laundering organization. This includes approximately 1,193 kilograms of cocaine seized at sea, 60 miles south of Jamaica, in July 2019, as well as 1,555 kilograms of cocaine seized in nine scrap metal shipping containers at the Port of Buenaventura, Colombia, in March 2019.
“Today’s convictions reflect the relentless efforts of this office and our law enforcement partners to dismantle the sophisticated financial networks that fuel international drug cartels. These defendants were key players in a scheme that laundered millions in drug proceeds – enabling the flow of deadly narcotics onto our streets,” said United States Attorney Joshua S. Levy. “This case demonstrates that we will hold accountable all players in the illicit drug operations that have had a devastating impact on Massachusetts.”
“Those who choose to launder money from drug proceeds are endangering the general public in Massachusetts. Maintaining public safety requires that they be prosecuted aggressively,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “We will continue to work closely each day with our law enforcement partners to target those who seek to profit from the sale of deadly substances.”
In or about October 2016, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Barranquilla, Colombia. During an extensive five-year investigation, the organization laundered over $6 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts, as well as additional proceeds through banks in the Caribbean and Europe by use of the Colombian Black Market Peso Exchange (BMPE). By using the BMPE, the defendants and their co-conspirators sought to conceal drug trafficking activity and proceeds from law enforcement as well as evade currency exchange requirements in the United States and Colombia through the illegal currency exchange process. As part of the conspiracy, members of the organization held roles and responsibilities relative to the needs and opportunities of the scheme, such as drug suppliers, peso brokers, money couriers and business owners/dollar purchasers.
Through the BMPE, Colombian drug trafficking organizations with drug proceeds generated in the United States use third parties – generally referred to as “peso brokers” that are also based in Colombia – who agree to exchange Colombian pesos they control for the drug supplier’s dollar proceeds. Peso brokers then use money couriers in the United States and elsewhere to physically secure the drug proceeds, often in suitcases or bags on the street, and transfer the proceeds into the United States banking system. To avoid detection, peso brokers deposit the drug proceeds into bank accounts in company or individual names intended to appear as legitimate business activity, or through multiple small deposits into different bank accounts which are then consolidated into larger accounts. As a result, Colombian peso brokers control a pool of drug-derived proceeds in United States bank accounts. These dollar proceeds are then purchased by individuals or companies in Colombia seeking to exchange pesos for United States dollars at a favorable exchange rate and in a manner that avoids currency exchange and income reporting requirements. The dollar drug proceeds are transferred at the direction of the purchaser, and often end up in bank accounts of individuals or companies who appear to have no direct involvement in drug trafficking crimes.
During the course of the conspiracy, Cover laundered approximately $268,000 and Rowe laundered over $600,000 by delivering bulk cash drug proceeds to undercover law enforcement.
The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. 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.
U.S. Attorney Levy; DEA Acting SAC Belleau; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; Aura Liliana Trujillo Rojas, Delegate for Criminal Finance for the Colombian Attorney General’s Office; Ricardo Sánchez Silvestre, Brigadier General of the Colombian National Police Anti-Narcotics Directorate; Jervis Moore, Chief of the Narcotics Division for the Jamaica Constabulary Force; and Colonel Geoffrey Noble of the Massachusetts State Police made the announcement. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá, Colombia provided significant assistance in securing the arrests and extraditions of Cover, Rowe, and other co-defendants from Colombia and Jamaica. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Sentenced in Connection with Smuggling of Gun Parts to MexicoRead the Press Release
San Antonio, Texas – Two Mexican nationals have been sentenced to prison as part of a conspiracy to smuggle AR-15 parts out of the United States and into Mexico.
Jose Francisco Garcia-Cervantes was sentenced today to 57 months in prison. Ricardo Rodriguez-Sotelo was sentenced to 78 months in prison on October 24, 2024, as part of the same case.
According to court documents, both men participated in the illegal trafficking of firearm parts from the Western and Southern Districts of Texas to Mexico. Garcia-Cervantes acted as a smuggler for the operation and transported boxes of gun parts to Mexico. Rodriguez-Sotelo prepared gun parts to be smuggled across the border by repackaging them at a storage unit in Laredo, Texas, where they would be picked up for delivery by truck to Mexico.
Three co-defendants, Chandler Britain Bradford, Troy Vernon Erbe, and Jesus Guzman-Delgado are pending trial.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement: “Rodriguez-Sotelo and Garcia-Cervantes played significant roles in an operation that moved a vast number of gun parts from the United States to Mexico. We will continue to work diligently with law enforcement partners to combat weapons trafficking and the illegal flow of guns to Mexico.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Department of Homeland Security Investigations and Department of Commerce Export Enforcement Division investigated the case.
Assistant U.S. Attorney William F. Calve prosecuted the case.
###
Two Indicted for Staged Credit Union RobberyRead the Press Release
BOSTON – Two men were indicted yesterday for the Sept. 24, 2024, robbery of the Energy Credit Union in West Roxbury, Mass. The defendants allegedly stole $197,146 from the Credit Union where one of them was employed as a teller.
Jenel Flounoury, 29, and Justin Flounoury, 33, both from Brockton, were each indicted on one count of conspiracy and one count of larceny from a credit union. The defendants were arrested and charged by criminal complaint in December 2024 following an arrest by state authorities on the night of the robbery.
According to the charging documents, Jenel Flounoury arranged for a large cash deposit to be stored in a section of the vault that he could access. Jenel Flounoury then allegedly arranged for his brother, Justin Flounoury, to stage a “robbery,” passing Jenel Flounoury a note demanding money. When Justin Flounoury passed Jenel Flounoury the note, Jenel Flounoury allegedly bypassed his teller cash drawer, went straight to the vault, and loaded nearly $200,000 into a bag he retrieved himself, before delivering it to the “robber.”
The night of the robbery a search was executed at the residence of Justin and Jenel Flounoury Over $160,000 in cash was recovered, including ten $100 bills whose serial numbers had been recorded by Energy Credit Union employees as being present in the vault prior to the robbery. According to court documents, cell site location information for Justin Flounoury’s phone places it within .25 miles of the credit union at the time the robbery occurred.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of larceny from a credit union provides for a maximum sentence of 10 years in prison, three 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 Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation; Massachusetts State Police Colonel Geoffrey Noble; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant United States Attorney Mark Grady of the Major Crimes Unit is prosecuting the case.
Two Dane County Men in Federal Custody After Being Charged with Armed Robbery of Fitchburg BankRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced the unsealing of an indictment charging Parish Barbary-Wheatherby, 29, Madison, Wisconsin, and Daryle Shelton, 22, Windsor, Wisconsin, with armed bank robbery. The two men are also charged with brandishing a firearm during a crime of violence. The indictment alleges that they robbed a Fitchburg bank using a firearm on December 2, 2024. Barbary-Wheatherby is separately charged with possessing three firearms as a felon on December 19, 2024.
Shelton was arrested today in Windsor following a chase with police and made his initial appearance in federal court in Madison. When he was arrested, Shelton was found to be in possession of a loaded firearm. Barbary-Wheatherby was arrested in Fitchburg on December 19, 2024. Both men remain detained pending further proceedings.
If convicted of the armed bank robbery charge, Barbary-Wheatherby and Shelton each face maximum penalties of 25 years in prison. If convicted of the brandishing charge, the two men each face a mandatory minimum penalty of 7 years and a maximum penalty of life in prison. The felon in possession charge against Barbary-Wheatherby carries a maximum penalty of 15 years.
The charges against Barbary-Wheatherby and Shelton are the result of an investigation by the Fitchburg Police Department, Federal Bureau of Investigation, and the ATF Madison Crime Gun Task Force. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Charged with Defrauding Connecticut’s Medicaid ProgramRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Chief State’s Attorney Patrick J. Griffin today announced that RAMON APELLANIZ, also known as “Kristopher Rockefeller” and “Kris,” 39, of Middletown, and SUHAIL APONTE, 38, of Wethersfield, were arrested yesterday on federal criminal complaints charging each with health care fraud offenses stemming from an alleged scheme that defrauded Connecticut’s Medicaid program.
Apellaniz and Aponte appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford. Aponte was released on a $100,000 bond and Apellaniz was detained pending a hearing that is scheduled for January 23.
The Connecticut Medical Assistance Program (CTMAP) is a Connecticut Department of Social Services-administered program that provides medical assistance to low income persons. CTMAP’s benefit packages, referred to as “HUSKY” or “Connecticut Medicaid,” are jointly funded by the State of Connecticut and the federal government.
As alleged in court documents and statements made in court, Apellaniz previously operated The Gemini Project, LLC (“Gemini”), a Newington-based business that offered counseling to patients with mental, behavioral, and emotional disorders. According to the State of Connecticut’s public license database, Apellaniz is not a licensed provider. In 2020, Apellaniz was charged by the state with larceny, health care fraud, and identity theft offenses related to his providing services to numerous Medicaid beneficiaries as a non-licensed provider, and Gemini billing Medicaid for those services, or for services that were not rendered at all. Medicaid paid Gemini and Apellaniz $909,268 for the false claims. Apellaniz pleaded nolo contendere and, on April 17, 2024, was sentenced in Hartford Superior Court to eight years in prison, execution suspended after 15 months, and five years of parole. He was released from Department of Correction custody on November 19, 2024.
It is further alleged that in June 2021, Minds Cornerstone LLC, dba Minds Cornerstone Behavior Therapy Services (“Minds Cornerstone”), an Autism Specialist Group, was registered with the State of Connecticut. Aponte, who is not a licensed provider, was listed as its manager and registered agent. Beginning in approximately November 2021, Apellaniz, Aponte, and Minds Cornerstone defrauded the Connecticut Medicaid Program by submitting fraudulent claims for applied behavior analysis (“ABA”) services to children diagnosed with Autism Spectrum Disorder (“ASD”). Although Apellaniz does not appear on any of Minds Cornerstone’s Medicaid enrollment forms, has no ownership interest in the company, and has no signatory authority to any of its bank accounts, Apellaniz conspired with Aponte and ran the company under a pseudonym, including while he was incarcerated in state custody.
The complaint specifically alleges that Apellaniz and Aponte billed Medicaid for services purportedly rendered to patients when company payroll records indicate employees were not compensated for the associated services; direct supervision services purportedly provided by a Board Certified Behavior Analyst (“BCBA”) of a behavioral technician, when the corresponding procedure code for behavioral technician services was not billed; services purportedly rendered to patients who were actually in an inpatient hospital; and services purportedly rendered when parents of patients and former employees of Minds Cornerstone confirmed those services did not occur.
It is alleged that between November 2021 and December 2024, Apellaniz and Aponte submitted or caused to be submitted to Medicaid fraudulent claims that exceeded $1.8 million in losses to the Connecticut Department of Social Services. The ongoing investigation indicates that Apellaniz used some of the funds Minds Cornerstone received to pay a portion of the restitution he owes as a result of his state prosecution.
From approximately May 2022 until November 2024, Aponte was also employed by the State of Connecticut in the Office of Policy and Management.
Apellaniz and Aponte are charged with conspiracy to commit health care fraud, and health care fraud. Each offense carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, with the assistance of the Connecticut Department of Social Services. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Three High-Ranking MS-13 Gang Members Plead Guilty to Racketeering Charges in Connection with Nine MurdersRead the Press Release
Earlier today and on January 16, 2025, in federal court in Central Islip, three members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, pleaded guilty to multiple crimes, including nine murders committed on Long Island and elsewhere between 2016 and 2017. David Sosa-Guevara, also known as “Risky,” the New York regional leader of the Hollywood Locos Salvatruchas (Hollywood) clique of MS-13, and Victor Lopez-Morales, also known as “Persa,” a high-ranking member of the Hollywood clique, pleaded guilty on January 16, 2025. Kevin Torres, also known as “Inquieto” and “Quieto,” the New York regional leader of the Sailors Locos Salvatruchas Westside (Sailors) clique of MS-13, pleaded guilty on January 17, 2025.
Collectively, the three defendants pleaded guilty to racketeering charges in connection with their respective roles in nine MS-13 driven murders: (1) the April 26, 2016 murder of Samuel Martinez-Sandoval in Freeport; (2) the April 29, 2016 murder of Oscar Acosta in Brentwood; (3) the May 21, 2016 murder of Kerin Pineda in Freeport; (4) the September 4, 2016 murder of Josue Amaya-Leonor in Roosevelt; (5) the September 5, 2016 murder of Marcus Bohannon in Central Islip; (6) the October 10, 2016 murder of Javier Castillo in Freeport; (7) the October 14, 2016 murder of Carlos Ventura-Zelaya in Roosevelt; (8) the July 21, 2017 murder of Angel Soler in Roosevelt; and (9) the August 29, 2017 murder of David Rivera in Maryland, as well as narcotics trafficking. Additionally, Sosa-Guevara and Lopez-Morales pleaded guilty to participating in an August 2017 conspiracy to kidnap an individual identified in the superseding indictment as “John Doe #3.”
The three guilty plea proceedings were held before United States Magistrate Judge Lee G. Dunst. When sentenced by United States District Judge Joan M. Azrack, pursuant to the terms of their plea agreements, Sosa-Guevara and Torres each face up to 65 years in prison, and a minimum sentence of 40 years in prison. Victor Lopez-Morales faces up to 60 years in prison and minimum sentence of 40 years.
Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) and Anne T. Donnelly, Nassau County District Attorney, announced the guilty pleas.
“The defendants have admitted to their participation in numerous murders savagely committed with machetes and guns, all on behalf of the MS-13 and to increase their status in that depraved criminal organization,” stated Acting United States Attorney Pokorny. “As a result of the guilty pleas, the defendants will be severely punished by serving decades in prison and provide some measure of relief and closure to the families of the many victims.”FBI Assistant Director in Charge Dennehy stated: “MS-13 callously used murder in an attempt to exert control over territory for their ruthless gang operations. As demonstrated by the guilty pleas of these three, high-ranking MS-13 members for their roles in nine murders, this type of extreme and senseless violence will not go unpunished. The FBI’s Long Island Gang Task Force, along with our law enforcement partners, will continue to bring to justice members of MS-13 or any other violent gang using violence and murder to terrorize our communities.”
"These defendants used their rank in the gang to help orchestrate multiple brutal murders and other crimes,” stated SCPD Acting Commissioner Waring. “We in law enforcement will never stop working to fight the pervasive violence sowed throughout these gangs.”
“The charges brought forth is a clear example of the results when Law Enforcement Personnel from Federal and Local Agencies combine their efforts and resources,” stated NCPD Commissioner Ryder. “Their relentless and continued investigations resulted with the charging of these criminals who were responsible for committing these murders. This combined investigation demonstrates the diligence of the well trained and determined investigators. The Nassau County Police Department remains committed in working with our law enforcement partners halting any gang activity on our streets and keeping our residents safe. I would like to thank all of the assisting agencies and their investigators on a job well done.”
“These defendants carried out vicious and senseless violence to instill fear and assert their dominance. Today’s guilty pleas bring us one step closer to ridding this dangerous gang activity from Nassau County communities,” stated Nassau County District Attorney Donnelly. “Together with our partners, we remain committed to protecting Long Island from this criminal organization’s brutality and ensuring individuals involved in these devastating acts are held accountable for their crimes.”
According to court filings and statements made during the guilty plea proceedings, Torres was the New York regional leader of the Sailors clique, Sosa-Guevara was the New York regional leader of the Hollywood clique, and Lopez-Morales was a high-ranking member of the Hollywood clique. The defendants admitted to committing the crimes set forth below in order to maintain and increase their membership and status within the gang, and to further the mission of the MS-13.April 26, 2016 Murder of Samuel Martinez-Sandoval
The defendants pleaded guilty to the murder of 20-year-old Martinez-Sandoval, which was carried out in April 2016, by the defendants and other members from the Sailors, Hollywood and Normandie Locos Salvatruchas cliques, who planned a joint operation to lure and kill Martinez-Sandoval because they believed that he was a member of the rival Sureños gang.
On April 26, 2016, MS-13 members convinced Martinez-Sandoval to drive with them to a secluded, wooded area near Freeport Lake in Roosevelt, under the guise of smoking marijuana. Separately, more than a half dozen MS-13 members, including the defendants, armed with machetes and other weapons, had gathered at a designated location along Freeport Lake where it was agreed that the other gang members would bring the victim. When Martinez-Sandoval arrived, Sosa-Guevara, Torres, Lopez-Morales and the other MS-13 members surrounded and attacked the victim, each taking turns hacking him with a machete and other weapons. After the victim was killed, the MS-13 members dug a shallow grave and buried the victim. However, because the initial hole was not deep enough to conceal Martinez-Sandoval’s body, a group of MS-13 members went back the following day, reburied the victim and covered his body with cement and dirt. Martinez-Sandoval’s body was not found until September 2024.
April 29, 2016 Murder of Oscar Acosta
Torres pleaded guilty to the murder of 19-year-old Acosta. In early 2016, Torres, as leader, ordered a “greenlight” authorizing other gang members to murder Acosta because the gang suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13. Torres assigned roles as to which members would take the lead in planning and carrying out the murder.
On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana. They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members who arrived in two cars. The MS-13 members loaded Acosta into the trunk of one of the cars and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital. The MS-13 members then removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete. The murder was supervised by the local leaders of the Sailors clique who reported back to Torres once completed. After killing Acosta, the MS-13 members buried his body in a shallow grave.
Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim. His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.
May 21, 2016 Murder of Kerin Pineda
The defendants also pleaded guilty to the murder of 20-year-old Pineda, who, like Acosta, was killed because of his suspected membership in the 18th Street gang. Torres, again, ordered the “greenlight” for Pineda, marking him for death. In response, MS-13 members from the Sailors and Hollywood cliques, including Sosa-Guevara and Lopez-Morales, devised a plan to kill Pineda.
On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border. Torres, Lopez-Morales, and Sosa-Guevara acted as lookouts for police and coordinated the attack, staying in contact with the MS-13 members in the woods while they waited for Pineda. When Pineda arrived, he was surrounded and violently attacked by the group of MS-13 members, each of whom took turns hacking and slashing him with the machetes. Pineda’s body was then buried in a hole that had been dug in the ground the day before, in anticipation of the murder. Before leaving the scene, the MS-13 members contacted the lookouts – Torres, Lopez-Morales, and Sosa-Guevara – who advised them that they could safely come out of the woods and drove them away from the scene.
September 4, 2016 Murder of Josue Amaya-Leonor
Sosa-Guevara and Lopez-Morales pleaded guilty for their roles in the murder of 19 year-old Amaya-Leonor on September 4, 2016. Like the other victims, Amaya-Leonor was lured to a secluded wooded area and killed because of his perceived association with the 18th Street gang. On the evening of the murder, MS-13 members convinced Amaya-Leonor to venture deep into the Roosevelt Preserve, in Roosevelt, to smoke marijuana. Sosa-Guevara was in communication with the gang members by cell phone and was directing them on where to bring the victim. Once there, Amaya-Leonor was surrounded by the MS-13 members who were armed with machetes; he was struck repeatedly, and killed. Thereafter, Lopez-Morales, who was in the immediate area of the murder looking out for police, arrived on the scene and supervised the other MS-13 members as they dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018 – over a year and a half after the murder had occurred.
September 5, 2016 Murder of Marcus Bohannon
Torres pleaded guilty to authorizing the murder of 27-year-old Marcus Bohannon. On September 4, 2016, members of the Sailors clique met at the house of local clique leaders Alexi Saenz and Jairo Saenz, in Central Islip, where Torres directed the gang members to go out hunting for rival gang members to kill. The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until one of the cars spotted Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5. Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting. Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.
October 10, 2016 Murder of Javier Castillo
Torres also pleaded guilty to the murder of 15-year-old Javier Castillo. In October 2016, the MS-13 targeted Castillo because he was believed to be a member of the 18th Street gang. On October 10, 2016, members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana. Torres authorized the members of the clique operating in Brentwood to bring Castillo to his territory in Freeport to be killed. The MS-13 members took Castillo to an isolated marsh area along the water in Cow Meadow Park, in Freeport, where they attacked and killed him, taking turns hacking him with a machete. Torres also served as the lookout for police in the area during the murder. Thereafter, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017.
October 14, 2016 Murder of Carlos Ventura-Zelaya
Sosa-Guevara and Lopez-Morales pleaded guilty to the murder of 24-year-old Ventura-Zelaya, who had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang. On the day of the murder, Ventura-Zelaya was observed at a deli in Roosevelt by a member of the Hollywood clique. Sosa-Guevara mobilized other members of the clique to kill Ventura-Zelaya and conducted surveillance of the victim until the other gang members arrived. The gang members tasked with carrying out the murder first drove to pick up a gun from Lopez-Morales. After obtaining the weapon, the group drove in the direction of the deli to look for and kill the victim. Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, two MS-13 members got out of the car, approached him and one
of them fired multiple times, striking and killing the victim. They then ran back to the car and drove away from the scene.
July 21, 2017 Murder of Angel Soler
Sosa-Guevara and Lopez-Morales also pleaded guilty to the murder of 15-year-old Soler. The MS-13 suspected Soler was an 18th Street gang member, and Sosa-Guevara ordered his murder. Lopez-Morales and other MS-13 members carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana. The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave. The following day, MS-13 members went back to lay cement over Soler’s body, in order to better conceal it. Soler’s remains were recovered in October 2017.
August 2017 Conspiracy to Kidnap John Doe #3
Lopez-Morales and Sosa-Guevara also admitted that, just weeks after the Soler murder, they and other MS-13 members planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara assigned Lopez-Morales and two other MS-13 members to carry out the kidnapping and attack. Lopez-Morales was instructed that, once they had John Doe #3, to wait for further guidance from MS-13 leadership as to whether to kill or brutally assault him. On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, pursuant to court-ordered wiretaps of certain MS-13 members’ cell phones, and Lopez-Morales was taken into custody.
August 29, 2017 Murder of David Rivera
Sosa-Guevara also admitted to his participation in the murder of 16-year-old Rivera in Maryland. To avoid law enforcement in New York, Sosa-Guevara and another Hollywood member from Long Island relocated to Maryland where they connected with the local Hollywood clique. After arriving, Sosa-Guevara learned of a plan to kill a rival gang member and directed the other Long Island member of his clique to participate. On August 29, 2017, Sosa-Guevara drove the other gang member to a park outside of Edgewater, Maryland, for him to participate in the Rivera murder. The victim was brought to that location by other MS-13 members, attacked with machetes and killed. After the murder, Sosa-Guevara drove the member of his clique away from the scene. Rivera’s body was not found until June 7, 2024.
Narcotics Trafficking Conspiracies
Finally, Torres pleaded guilty to conspiring with the members of the Sailors clique to distribute cocaine and marijuana, and Sosa-Guevara and Lopez-Morales pleaded guilty to conspiring with members of the Hollywood clique to distribute marijuana. These charges stemmed from the MS-13 cliques’ street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.
* * * *
These guilty pleas are the latest achievements in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office and Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.
The Defendants:
VICTOR LOPEZ-MORALES (also known as “Persa”)
Age: 36
Roosevelt, New YorkDAVID SOSA-GUEVARA (also known as “Risky”)
Age: 33
Roosevelt, New YorkKEVIN TORRES (also known as “Quieto” and “Inquieto”)
Age: 29
Freeport, New YorkE.D.N.Y. Docket No. 20-CR-251 (S-1)(JMA)
Tara M. Lyons named Acting U.S. Attorney for Southern District of GeorgiaRead the Press Release
As of January 18, 2025, and by virtue of the Vacancies Reform Act, First Assistant U.S. Attorney Tara M. Lyons is officially Acting U.S. Attorney for the Southern District of Georgia.
Tampa Man Convicted of Sex Trafficking Two Minors and Production of Child Sex Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Dontae Dajuan Burton (40, Tampa) guilty of two counts of sex trafficking of a minor and one count of production of child sex abuse material. Burton faces a minimum sentence of 15 years, up to life, in federal prison. A sentencing date has not yet been set. Burton was indicted on November 12, 2024.
According to the evidence presented at trial, Burton arranged commercial sexual activity for two minors, ages 16 and 17, by creating and posting ads for them on adult escort websites. Burton handled all communications with clients, scheduled dates, determined the amount of money to be paid for the sex acts, and transported the victims to and from the dates. Burton managed the money and kept approximately half of what the clients had paid for the sex acts. Burton also recorded and edited a video of one of the victims performing a sex act on him.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Courtney Derry.
South Carolina Man Pleads Guilty to Federal Charges in Connection with the Murder of New Mexico State Police OfficerRead the Press Release
ALBUQUERQUE – Jaremy Smith pleaded guilty today to multiple federal charges in a plea agreement that will result in a federal sentence of life without the possibility of parole.
According to court documents, it is alleged that on March 13, 2024, Smith forcibly abducted a woman from her home in South Carolina, transported her in a stolen vehicle, and fatally shot her with a handgun that he had stolen from her roommate prior to the crime. After committing the murder, Smith fled across state lines to evade prosecution, traveling through Georgia, Alabama, Mississippi, Louisiana, and Texas before entering New Mexico.
On March 15, 2024, in Quay County, New Mexico, Smith fatally shot New Mexico State Police Officer Justin Hare after Officer Hare stopped to assist him with a flat tire. Smith then stole Officer Hare’s police cruiser with the wounded officer inside, driving for several minutes before abandoning the vehicle and the critically injured Officer Hare on a remote road. Officer Hare succumbed to his injuries at a hospital later that morning.
Law enforcement immediately launched a coordinated effort across multiple jurisdictions to locate Smith, and his name and photograph were widely disseminated by media news outlets. Smith was apprehended in Albuquerque on March 17, 2024, by deputies from the Bernalillo County Sheriff’s Office after a gas station employee recognized Smith and contacted law enforcement.
“A life sentence for a life taken does not make our community whole. But the best way to honor Justin Hare’s life is to take care of each other,” said U.S. Attorney Alexander Uballez. “Today, I commit myself to the people of New Mexico. In the memory of a brave State Police officer whose final act was to help another. In honor of the hundreds of law enforcement officers who worked around the clock to protect this community and do justice for their fallen brother. And in the footsteps of the gas station clerks, everyday citizens, who bravely did the right thing in the face of clear and present danger. It is time for us all to join these strangers who did the right thing for people they never met.”
“All too often, first responders are called upon to sacrifice their lives to protect their communities. Smith’s actions have had a devastating, life-long impact on the victim’s families,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “The FBI will continue to work with our partner agencies to use all available resources to make sure that violent and dangerous criminals are pursued to the fullest extent of the law.”
"Officer Hare’s sacrifice exemplifies the unwavering courage of law enforcement.,” said NM DPS Secretary Jason R. Bowie. “This plea underscores our commitment to justice through relentless collaboration across state lines."
"Officer Justin Hare and Ms. Machado-Fore were tragically killed by Jaremy Smith. While nothing can undo this heartbreaking loss, today offers a measure of justice for their friends and family," said Troy Weisler, Chief of the New Mexico State Police. "Thanks to the efforts of our law enforcement partners and the support of the community, Jaremy Smith will never again take a breath as a free man, and that is as it should be."
Smith pled guilty to five counts, including carjacking resulting in death, using and carrying a firearm during a crime of violence, kidnapping resulting in death, being a prohibited person in possession of a firearm, and possession of a stolen firearm.
Smith will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, Smith faces a mandatory life sentence without the possibility of parole. As part of the plea agreement, Smith agreed that the appropriate sentence was lifetime incarceration without the possibility of parole.
The Department of Justice has previously determined that it will not seek the death penalty for Smith for the incidents that occurred in New Mexico.
U.S. Attorney Alexander M.M. Uballez for the District of New Mexico and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office and New Mexico State Police investigated this case with assistance from the Tenth Judicial District Attorney’s Office and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Jack Burkhead are prosecuting the case.
Smith Plea (1).pdf# # #
South Bay-Based Nursing Facilities Chain and Owner Agree to Pay $18 Million to Resolve COVID-Related False Claims Act AllegationsRead the Press Release
LOS ANGELES – Torrance-based skilled nursing facilities chain Unified Care Services LLC, its affiliates, and its owner, Emmanual David, have agreed to pay $18 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly providing false information in support of Paycheck Protection Program (PPP) loan applications and loan forgiveness applications submitted by Unified Care and its affiliates, the Justice Department announced today.
The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic.
Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business was determined by assessing the employees, revenues, or net worth of the applicant along with all corporate affiliates that shared common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their size and number of employees.
The settlement resolves allegations that Unified Care and its affiliates falsely certified they were small business with fewer than 500 employees when they submitted their PPP loan and loan forgiveness applications in 2020. These applications allegedly failed to disclose that the entities applying were part of a larger chain of facilities that all shared common ownership and control that rendered Unified Care and its affiliates ineligible for PPP loans.
“COVID-relief programs were designed to help people and businesses during the worst public health crisis this nation had seen in one century,” said United States Attorney Martin Estrada. “My office will continue to pursue those who knowingly cheat taxpayers by violating PPP and other pandemic-related programs.”
The Unified Care affiliates covered by the settlement include Unified Care Services LLC; Casa Montana LLC; Geri-Care Inc.; Geri Care V LLC; Pacific Palms Healthcare LLC; Foothill Care Center Inc.; Mount Megiddo LLC; Canyon Properties III LLC; Cloverleaf Enterprises Inc.; Foothill Care Center LLC; Foothill Care Center II LLC; David Kleis III LLC; David Kleis II LLC; Miramonte Enterprises LLC; and Washington Enterprises III LLC.
“PPP loans were intended to assist eligible small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”
“This resolution demonstrates the department’s commitment to ensuring that those who improperly obtain federally guaranteed PPP loans are held accountable and funds repaid to the American taxpayer” said Director of COVID-19 Fraud Enforcement Mandy Riedel of the Justice Department.
“The SBA Office of Inspector General is committed to ensuring the integrity of CARES Act programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General, Western Region. “Through partnerships with federal agencies, we continue to identify fraud schemes and protect relief funds from misuse.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. Ashwani Chawla v. Unified Care Services et al., CV 21-5935-GW (CDCA). The whistleblower will receive $2,070,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel (SBA-OGC) and the SBA Office of Inspector General (SBA-OIG).
Assistant United States Attorney Jack D. Ross of the Civil Fraud Section and Senior Trial Counsel Benjamin C. Wei of the Justice Department’s Civil Division handled the matter, with assistance from Mary Cvengros of SBA-OGC and Christopher H. Stephens of SBA-OIG.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Sioux City Man Sentenced to 16 Years in Federal Prison for Illegal Possession of a Gun and Violation of Federal Supervised ReleaseRead the Press Release
A man on supervised release was sentenced January 16, 2025, to 16 years in federal prison.
Bob Schonrock, age 54, from Sioux City, received the prison term after pleading guilty to one count of possession of a firearm by a felon and drug user, and one count of possession with intent to distribute methamphetamine.
Schonrock has an extensive criminal history including, aggravated battery, grand theft, possession of controlled substance, eluding and possession of a controlled substance (marijuana) in state court, and possession of a firearm by a felon and drug user and possession of a stolen firearm in the United States District Court for the Northern District of Iowa.
Evidence in the case revealed that in November of 2023, Sioux City Police officers conducted a traffic stop on the vehicle Schonrock was operating for an equipment violation. Drug paraphernalia was observed in plain view on the front passenger seat. During a search, a scale with methamphetamine residue was located on Schonrock, and a handgun was found in a tool bag in the back seat of the vehicle. A magnetic container was also located underneath the vehicle adjacent the driver’s door which contained approximately 10.74 grams of methamphetamine.
Officers also located a garage Schonrock was known to use. and upon a search found methamphetamine residue on a countertop adjacent to packaging materials and a plastic bag containing methamphetamine with an approximate gross weight of 483 grams.
Schonrock was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 180 months’ imprisonment, consecutive to 12 months imprisonment for the supervised release violation. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rockwood is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-04081 and 19-04058.
Follow us on X @USAO_NDIA.
Shreveport Man and Two Women Sentenced to Federal Prison for Their Involvement in Conspiracy to Distribute Fentanyl Resulting in Death CaseRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that three individuals from Shreveport have been sentenced for their involvement in a drug trafficking conspiracy which resulted in the death of a Shreveport man. United States District Judge Elizabeth E. Foote sentenced the three defendants today.
Martin William Thompson, 53, was sentenced to 240 months (20 years) in prison, followed by 5 years of supervised release.
Rachel Ann Hassell, 47, was sentenced to 121 months (10 years, 1 month) in prison, followed by 5 years of supervised release.
Courtney Renee Cox, 41, was sentenced to 121 months (10 years, 1 month) in prison, followed by 5 years of supervised release.
In addition, Thompson and Cox were ordered to pay $13,234.73 in restitution to the deceased victim's family.
Thompson, Hassell, and Cox were charged in an indictment in April 2022 with conspiracy to distribute fentanyl resulting in death and serious bodily injury, possession with intent to distribute heroin, using or maintaining drug premises and possession of firearms in furtherance of drug trafficking.
In 2021, agents with the U.S. Drug Enforcement Administration (“DEA”) and Caddo Parish Sheriff's Office received information about the distribution of fentanyl and other illegal drugs in the Shreveport area and began an investigation. At the direction of DEA agents, on July 24, 2021, a Louisiana State Police trooper stopped a vehicle being driven by two individuals on Jewella Avenue in Shreveport. During a subsequent search of their car, agents found 1.5 kilograms of methamphetamine, 1.1 kilograms of fentanyl in a brick form, and 639.9 grams of fentanyl pills (over 5,000 pills). Agents learned that these two individuals had mad multiple previous trips to El Paso to purchase narcotics dating back to January 2021. Through their investigation, agents learned that the fentanyl pills were destined for Martin Thompson and that he had purchased the fentanyl.
On May 29, 2021, officers responded to a single car crash in Greenwood, Louisiana, and discovered that the driver was unconscious and not breathing but was otherwise uninjured. Inside the vehicle was the driver’s minor son who was also unharmed. The driver passed away that day and the medical examiner determined his death was caused by a fentanyl overdose. Further investigation by DEA agents proved that the driver had obtained fentanyl from Courtney Cox, who had gotten it from her local supplier, Thompson. Cox later confessed to supplying the deceased victim with the fentanyl she obtained from Thompson. She also admitted that Thompson had warned her that the fentanyl pills were very strong and to only snort a half pill. Cox explained that she passed the warning to her customers, including the deceased victim.
Through further investigation into this drug trafficking conspiracy, Rachel Hassell was arrested in Shreveport in September 2021 for possession with intent to deliver a controlled substance, later determined to be heroin. Following her arrest, DEA agents searched Thompson’s business and discovered more heroin. In total, the lab determined that Hassell possessed 50.864 grams of heroin. Agents obtained a search warrant for Hassell’s cell phone and learned that Thompson was receiving large shipments of fentanyl through another co-conspirator and Hassell began distributing the fentanyl along with Thompson. Numerous text messages were found between Hassell and Thompson concerning the delivery of fentanyl. The text messages showed that the two were working together to distribute the fentanyl, as well as heroin, methamphetamine, and marijuana, and were storing the drugs at his place of business on Williamson Way in Shreveport. Hassell admitted to agents that she and Thompson discussed that the fentanyl pills were very strong, and he should tell his customers to consume only a half pill at a time.
Thompson and Cox each pleaded guilty to the charge of conspiracy to distribute fentanyl resulting in death and serious bodily injury. Hassell pleaded guilty to a Bill of Information charging her with conspiracy to distribute fentanyl, possession with intent to distribute heroin, and using or maintaining drug premises for the purpose of distributing and using fentanyl, heroin, methamphetamine and marijuana.
“This is the first distribution of fentanyl resulting in death conviction obtained in the Western District of Louisiana,” said U.S. Attorney Brandon B. Brown. “Fentanyl is a very dangerous drug and just a few grains of the substance can have deadly consequences which is unfortunately what happened in this case. We will continue to vigorously prosecute those who possess this drug, and any other illegal controlled substances, and will work closely with all of our law enforcement partners to disrupt these traffickers, stopping them in their tracks.”
The case was investigated by the U.S. Drug Enforcement Administration, Caddo Parish Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police, and Shreveport Police Department and prosecuted by Assistant United States Attorney Robert F. Moody.
# # #
Sex Offender Admits Child Exploitation Offenses, Threatening MinorsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GREGORY BUTTS, 54, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a child exploitation offense.
According to court documents and statements made in court, in April 2016, Butts was convicted in Connecticut state court of illegal sexual contact with a child.
In November 2020, family and friends of two missing juveniles in Colorado posted information about the missing juveniles on social media pages and included a phone number asking the public to call with information. Butts, with his own phone number blocked, called the number and spoke to a female friend of the missing juveniles, who recorded the conversation. Butts stated that he was with the missing juveniles and had had sexual contact with them. He threatened to harm the missing juveniles if the conversation were recorded or if law enforcement were contacted, and threatened the female friend who answered the phone. He then said that he would return the missing juveniles if the female friend would have sexual intercourse with him. Shortly after the juveniles had been reported missing, they returned home. They were not harmed and had not been kidnapped.
Investigators determined that the call emanated from a lightly-populated area in Sprague, Connecticut, and that Butts was a registered sex offender living in the area who was on probation following a state conviction for illegal sexual contact with a minor. After a Connecticut probation officer identified Butts’ voice on the recording, probation officers searched Butts’ residence and another residence where he also had been staying and seized a computer, storage devices, multiple cell phones and other items.
Forensic analysis of the seized items revealed more than 10,000 images and videos of child pornography, and downloaded conversations Butts had with minors on Snapchat and other social media applications. In the chats, Butts engaged in sexually explicit conversations, made numerous threats and demanded, and sometimes received, sexually explicit photos.
Butts pleaded guilty to possession of a child pornography, which, based on his criminal history, carries a mandatory minimum term of imprisonment of 10 years and maximum term of imprisonment of 20 years.
Butts has been detained since March 4, 2022.
This investigation has been conducted by the Federal Bureau of Investigation in New Haven, Connecticut and Loveland, Colorado, with the assistance of the Connecticut Office of Adult Probation, Connecticut State Police, and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Daniel E. Cummings.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of New London for its close cooperation in investigating and prosecuting this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
San Antonio Man Sentenced in Child Porn CaseRead the Press Release
San Antonio, Texas – A San Antonio man was sentenced yesterday to 15 years in Federal prison, lifetime supervised release, to pay $94,000 to 14 victims, forfeit all devices and online accounts used to obtain or possess child exploitation material and pay a $100 special assessment to the Victim of Crimes Fund for obtaining and storing child sexual abuse materials.
According to court documents, Ignacio Sanchez Mendoza, III, 42, was discovered using the dark-web to obtain child sexual abuse material and Department of Homeland Security investigators executed a search warrant at his home in San Antonio and found devices containing child sexual abuse materials. Mendoza was previously convicted of possessing child pornography in Bexar County in 2004 making his federal mandatory minimum sentence 15 years.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. He said: “Child sexual abuse material is not only harmful to the victims and dangerous to our society, but is often extremely addicting for some people. People like the defendant who have a sexual interest in children often refuse to stop exploiting these children despite prior incarceration and treatment. That is why the US Attorney’s Office for the Western District of Texas prioritizes these crimes and those that prey on the most vulnerable in our society.
The Department of Homeland Security Investigations in both Boston and San Antonio investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
###
Sacramento Man Sentenced to 15 Years in Prison for Armed Bank RobberiesRead the Press Release
RENO – A Sacramento, Calif., resident was sentenced yesterday by United States District Judge Miranda M. Du to 15 years in prison to be followed by five years of supervised release for committing two armed robberies of financial institutions.
Devon Jones, 32, pleaded guilty to one-count each of interference with commerce by robbery, bank robbery, and discharging a firearm during and in relation to a crime of violence.
According to court documents and admissions made by Jones, on January 24, 2022, he robbed a money lending business in Reno. During the robbery, he pointed a semi-automatic 9mm pistol at an employee and demanded money. Jones then fired a round and fled the scene with cash. Later, on January 27, 2022, Jones robbed a bank in Carson City. After he entered the bank, he started yelling and fired a shot. Then, he approached a teller and demanded money. Jones fired another shot after noticing alarm lights flashing. He ordered all the employees to the ground and fired another shot before leaving the bank with the stolen cash.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the FBI. Assistant United States Attorney Megan Rachow prosecuted the case.
###
Registered Sex Offender Indicted for Transporting and Possessing Child Sexual Abuse Material and AI Generated Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Oxley (52, Polk City) with transportation and possession of child sex abuse material and possession of obscene visual depictions of minors engaging in sexually explicit conduct. If convicted, Oxley faces a maximum penalty of 40 years in federal prison for transporting child sex abuse material and up to 20 years in federal prison for the possession and AI offenses. The indictment also notifies Oxley that the United States intends to forfeit a cellphone, which was used in the commission of the offense.
According to court documents, on December 22, 2024, Oxley entered the Tampa seaport on board a cruise ship. The ship had traveled to two destinations in Mexico before returning to Tampa. Between December 17 and 22, 2024, Oxley transported child sex abuse material. Agents from U.S. Customs and Border Protection conducted a search of Oxley’s cellphone, which he had traveled with, and observed images and videos of child exploitation. Beginning on an unknown date and continuing to December 22, 2024, Oxley possessed images and videos of minors engaged in sexually explicit conduct, including minors under 12 years of age. He also possessed AI generated images that appeared to depict minors engaged in sexually explicit conduct. Oxley is a registered sex offender, have previously been convicted in 2012 of three counts of possessing images showing the sexual performance by a child, in violation of Florida state laws.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
Putnam Valley Husband and Wife Sentenced to Prison for Operating Prostitution Businesses at Multiple Massage Parlors in New YorkRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that HONG RU LIN, a/k/a “Bruce,” and KENA ZHAO, a/k/a “Angela,” were each sentenced by U.S. District Judge Kenneth M. Karas to prison for violating the Travel Act by operating prostitution businesses at multiple massage parlors in Putnam, Westchester, New York, and Queens County. ZHAO was sentenced on January 10, 2025, to 12 months and one day in prison, and LIN was sentenced today to 12 month and one day in prison. LIN and ZHAO also forfeited over $1.3 million representing proceeds derived from their prostitution scheme.
Acting U.S. Attorney Edward Y. Kim said: "Hong Ru Lin and Kena Zhao operated an extensive prostitution business, using massage parlors as cover for their illegal activities. Today’s sentences hold them accountable for their actions. This Office will continue to investigate those who sponsor illegal prostitution, even if their criminal activities take place behind the closed doors of supposedly legitimate businesses.”
According to the charging documents, public court filings, and statements made in court:
Between at least September 2020 and September 2023, LIN and ZHAO operated a prostitution business out of multiple massage parlors that they owned in Putnam, Westchester, New York and Queens County. LIN and ZHAO managed a roster of women who worked at the massage parlors and performed sexual acts for the customers of LIN and ZHAO. LIN and ZHAO communicated by cellphone and private chatroom to manage and operate their prostitution business. Among other things, LIN and ZHAO used cellphones to communicate with potential customers, assign particular employees to customers, monitor the income of their prostitution business, and set performance goals for the women who worked in the massage parlors. In addition, on at least one occasion, ZHAO personally participated in a massage during which a sexual act was offered to a customer.
* * *
In addition to the prison terms, LIN, 51, and ZHAO, 46, of Putnam Valley, New York, were both sentenced to two years of supervised release and agreed to forfeit the massage parlors’ bank accounts, various assets and cash proceeds derived from the massage parlors, and a $1.3 million money judgment.
Mr. Kim praised the outstanding work of the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force and the Putnam County Sheriff’s Office. Mr. Kim also thanked the Town of Carmel Police Department, the Westchester County Police Department, and the Yonkers Police Department for their assistance in this matter.
The case is being prosecuted by the Office’s Civil Rights Unit in the Criminal Division and the White Plains Division. Assistant U.S. Attorneys Ryan W. Allison, Jamie Bagliebter, and Margaret N. Vasu are in charge of the prosecution.
Prolific fraudster pleads guilty to multiple scams that resulted in over $600,000 in lossesRead the Press Release
ALEXANDRIA, Va. – A Washington man pled guilty today to conspiracy to commit wire fraud and aggravated identity theft.
According to court documents, from at least January 2021 through April 2022, Marco Raquan Honesty, 28, engaged with co-conspirators in a number of fraud schemes including defrauding COVID relief programs, “smishing” scams, forged money orders, creating fake IDs and vehicle titles, a bank account takeover scheme, and selling stolen financial information online.
From at least April through October of 2021, Honesty conspired to defraud the Paycheck Protection Program (PPP), which provided loans that were supposed to help eligible businesses cover specific permissible business expenses, such as making payroll payments. Honesty and his co-conspirators submitted fraudulent PPP loan applications for non-existent sole proprietorships. Honesty obtained kickback payments or fees from some of the PPP loans that he helped obtain, sometimes receiving payment of $10,000 per fraudulent PPP loan.
Honesty and his co-conspirators submitted at least 16 first draw and nine second draw PPP loan applications, all of which were funded by the Small Business Association (SBA). Honesty and his co-conspirators also created false tax returns, including 2019 1040 Schedule C IRS Forms, to support the fraudulent PPP loan applications. A total of 15 individuals were involved in the fraudulent scheme, which resulted in a total loss of $509,069.00 to the SBA. Honesty procured PPP loans through this scheme for himself, his father, his two sisters, his grandmother, his cousin, the mother of his children, and various other friends and associates.
Honesty engaged in a “smishing” scheme, short for “SMS phishing,” where he used a website that was spoofed to resemble a legitimate bank website. Honesty would send victims text messages crafted to appear to be from a bank, and typically included a link to the website in the message. Typically, the fraudulent text message alerted the victim of an unauthorized transfer of the victims’ funds. Victims would click the link in the text message and enter their username and password into the fraudulent website, allowing Honesty to obtain the victims’ usernames and passwords.
Honesty used one smishing victim’s information to complete a purchase with the Texas Department of Motor Vehicles for temporary permits in support of a scheme to defraud car dealerships by providing fraudulent identification documents, cashier’s checks, and insurance documents for ostensible car purchases. From January through June of 2021, Honesty created fraudulent IDs to sell to other individuals, who in turn supplied these fraudulent documents to dealerships and attempted to purchase vehicles.
From December 2021 to January 2022, Honesty engaged in a scheme in which he purchased large quantities of Western Union money orders, typically for one dollar each, then scratched the true amount off the money order and used computers, software programs, and printers to manipulate the money orders to reflect larger amounts, typically $500, $900, or $1,000. After the money orders were altered, Honesty deposited them into ATMs at various banks. In some instances, Honesty coordinated with co-conspirators to deposit the money orders and withdraw the proceeds quickly before the banks could determine that the money orders had been altered and reverse the deposits. Honesty conspired to deposit at least $79,700 of fraudulent money orders.
Honesty operated a Telegram channel called “Heavenly Logs” with the username @Criptonic831, on which he advertised stolen credit cards, stolen checks, stolen bank log-in information, and other fraud-related contraband for sale to his followers. Honesty also orchestrated an account takeover scheme in which he gained access to victim accounts and, without the knowledge or permission of the account owner, transferred money to himself and his co-conspirators via payment platforms such as Zelle and intrabank transfers.
On Sept. 7, 2023, law enforcement searched Honesty’s residence. Among other things, agents seized 24 cellphones, three laptops, blank Social Security card templates, a 16-pound box of blank IRS 1099 forms, Virginia temporary vehicle tags, multiple SIM cards for cellphones, a credit card embossing machine, blank cards with microchips, a credit card reader, a debit card in the name of an unrelated person, and a check stolen from an unrelated person.
The known attempted loss for all of Honesty’s fraud schemes combined is $850,204.64. The actual known loss amount of the schemes is $621,958.50.
Honesty is scheduled to be sentenced on May 23 and faces a up to 20 years in prison for wire fraud and a mandatory term of two years in prison for aggravated identity theft to be served consecutively with any other term of imprisonment imposed. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Kathleen Robeson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-3.
Pittsburgh Resident Sentenced to Three Years in Prison for Failure to Register as Sex OffenderRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 36 months of imprisonment on his conviction of violating federal sex offender registration laws, United States Attorney Eric G. Olshan announced today.
United States District Judge W. Scott Hardy imposed the sentence on Terry Bonner, 30, on January 16, 2025.
According to information presented to the Court, Bonner previously pleaded guilty and was convicted of First Degree Criminal Sexual Abuse while living in the State of Alabama, resulting in a requirement for Bonner to register under the Sex Offender Registration and Notification Act (SORNA). As part of his guilty plea in that case, Bonner was notified that he was required to register as a sex offender in the jurisdiction in which he resides.
Bonner moved to Pennsylvania and lived in the City of Pittsburgh between December 2022 and April 2023. During that period, Bonner failed to take any steps to update his registration with local law enforcement officials as required for a sex offender under SORNA. Court records in Alabama showed that Bonner also had been convicted multiple times for failing to register in that state.
Prior to imposing sentence, Judge Hardy stated that Bonner’s conduct was particularly serious because of his lengthy criminal history, history of violence, and repeated willful disregard for his registration requirements. Judge Hardy stated that SORNA requirements exist to keep communities safe from violent sex offenders with histories like Bonner’s, and that he hoped that a sentence of 36 months in federal prison would finally impress upon Bonner, and all sex offenders subject to SORNA, that they must take their obligation to register seriously or face severe consequences.
Assistant United States Attorney Benjamin C. Dobkin prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the United States Marshals Service and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Bonner.
Pittsburgh Felon Sentenced to More Than 11 Years in Prison for Fentanyl, Cocaine, and Firearms ViolationsRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 135 months in prison, to be followed by five years of supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Willie Blair Jr., 43, on January 14, 2025.
According to information presented to the Court, in early October 2022, Blair possessed with intent to distribute more than one kilogram of a mixture and substance containing fentanyl, in addition to attempting to possess with intent to distribute more than two kilograms of a mixture and substance containing cocaine. He also possessed a firearm and ammunition as a convicted felon. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
After being led to Blair’s residence through a suspicious United States Postal Service parcel containing approximately two kilograms of cocaine that was addressed to the residence, law enforcement executed a search warrant upon the home and Blair’s vehicle, recovering a total of approximately 1,262.8 grams of fentanyl as well as a kilogram press and packaging and cutting material consistent with drug trafficking. In the main bedroom, law enforcement also found a loaded Glock pistol and various ammunition. Blair admitted that the fentanyl, drug trafficking tools, and pistol and ammunition all belonged to him and to being a multi-kilogram distributor of fentanyl and heroin, as well as to attempting to possess with intent to distribute the cocaine seized from the USPS parcel. Blair had several previous felony convictions for controlled substances, including a federal conviction for conspiracy to possess with intent to distribute and distribution of heroin.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service, Drug Enforcement Administration High Intensity Drug Trafficking Areas Task Force, Pennsylvania Office of Attorney General, and Pennsylvania State Police for the investigation that led to the successful prosecution of Blair.
Pine Ridge Man Sentenced to Federal Prison for 10 Years for Conspiracy to Distribute Fentanyl in Indian CountryRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance.
Benny Benson, age 22, was sentenced on January 3, 2025, to ten years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Benson was indicted by a federal grand jury in November 2023, and pleaded guilty on October 16, 2024.
Benson’s conviction stemmed from his involvement in a large-scale fentanyl and cocaine distribution operation on the Pine Ridge Reservation. During the conspiracy Benson distributed over 900 grams of fentanyl and approximately 210 grams of cocaine on the Pine Ridge Reservation. He was a supervisor of the conspiracy and possessed a firearm during his involvement.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Benson was immediately remanded to the custody of the U.S. Marshals Service following his sentencing.
Pharmacist guilty in $110 million dollar kickback conspiracyRead the Press Release
McALLEN, Texas – A 55-year-old McAllen man has pleaded guilty to conspiring to pay kickbacks in exchange for prescription referrals, announced U.S. Attorney Alamdar S. Hamdani.
John Ageudo Rodriguez, a licensed pharmacist, owned and operated a pharmacy in Pharr called Pharr Family Pharmacy.
Rodriguez admitted he paid kickbacks in excess of $24 million to various marketers. The marketers had relationships with physicians and clinics and could cause prescriptions for expensive compound drugs to be referred to Rodriguez’s pharmacy.
During the time of the conspiracy, from 2014 to 2016, Rodriguez’s pharmacy billed more than $110 million to various federal health care benefit programs for compound drugs.
Rodriguez’s guilty plea follows guilty pleas of numerous other marketers involved in the prescription drug kickback scheme.
Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for March 25. At that time, Rodriguez faces up to five in federal prison as well as a possible $250,000 maximum fine.
Rodriguez was permitted to remain on bond pending that hearing.
The U.S. Postal Service – Office of Inspector General (OIG), Department of Labor – OIG, FBI, Department of Defense – Defense Criminal Investigative Service, Department of Veteran Affairs – OIG, Department of Health and Human Services - OIG and Texas Health and Human Services - OIG conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Perris Man Sentenced to 12 Years in Prison for Possessing Kilograms of Methamphetamine and Illegally Possessing Firearms and AmmoRead the Press Release
LOS ANGELES – A Riverside County man was sentenced today to 144 months in federal prison for possessing while intending to distribute kilogram quantities of methamphetamine and for illegally possessing firearms and ammunition.
Alvaro Hector Martinez, 33, of Perris, was sentenced by United States District Judge Fernando L. Aenlle-Rocha.
Martinez pleaded guilty in June 2023 to one count of possession with intent to distribute methamphetamine and one count of being a felon in possession of firearms and ammunition.
In February 2021, Martinez – acting at the direction of a Sinaloan drug trafficker – sold approximately 872 grams of methamphetamine to a buyer. The following month, law enforcement conducted a traffic stop on Martinez. In his car, Martinez possessed 35 packages containing approximately 15.4 kilograms (34 pounds) of pure methamphetamine, which he intended to distribute.
Following the traffic stop, law enforcement executed a search warrant at a residence where DEA agents had observed Martinez departing with the drugs. There, they found five containers of methamphetamine weighing approximately 8.5 kilograms (18.7 pounds), three firearms, and 38 rounds of ammunition. Martinez admitted in his plea agreement to knowingly possessing the firearms and ammunition.
Martinez is not legally permitted to possess firearms or ammunition because of his criminal history, which includes felony convictions in Los Angeles Superior Court in 2014 for grand theft and possession of a firearm by a felon.
The Drug Enforcement Administration investigated this matter.
Assistant United States Attorney Amanda B. Elbogen of the Terrorism and Export Crimes Section prosecuted this case.
Orlando Man Arrested for Transportation of Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Matthew A. Inman (39, Orlando) with transportation of child sex abuse material. If convicted, Inman faces a minimum penalty of 5 years, up to 20 years, in federal prison.
According to the complaint, between August and October of 2024, Inman received and saved several videos of child sexual abuse material (CSAM) to his phone. These videos depicted adults sexually assaulting young children. In October 2024, Inman traveled to Las Vegas and began talking online with an undercover law enforcement officer posing as the father of a 9-year-old boy. During this conversation, Inman expressed interest in meeting and sexually assaulting the purported child. He also sent CSAM videos to the undercover officer.
The FBI obtained a search warrant for Inman’s electronic devices and residence. During the execution of the search warrant, Inman attempted to delete the evidence from his phone and hide in the attic of his house.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney Richard Varadan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
On Last Day, United States Attorney Markenzy Lapointe Reflects on the District’s AccomplishmentsRead the Press Release
Today is my last day as United States Attorney for the Southern District of Florida. Since announcing my resignation, I have continued reflecting on my experiences over the past two years – ones made extraordinary by the attorneys, support professionals, and law enforcement partners who serve the Southern District of Florida. I am proud of the office’s many accomplishments and take this opportunity to share some of those.
National Security and Hate Crimes
The office protected our nation and local communities from security threats, both foreign and domestic. For example, we have secured convictions against six individuals (five of whom received life sentences) in an ongoing prosecution charging defendants for their roles in planning and carrying out the assassination of a sitting head of state: then-Haitian president Jovenel Moïse. In addition, we charged a defendant with attempting to assassinate a major presidential candidate (now United States President-elect Donald J. Trump) in the weeks leading up to the 2024 election.
The office obtained a conviction and significant prison sentence for Victor Manuel Rocha, a former United States diplomat and National Security Council member who betrayed his oath to our country by operating as a covert agent of the Cuban government; successfully prosecuted a South Florida man for attempting to bomb the New York Stock Exchange; and secured decades-long prison sentences for two former Colombian soldiers turned armed revolutionaries who attempted to kill United States military personnel with a car bomb outside a base at the Colombia-Venezuela border.
We combatted hate crimes too, using both enforcement and outreach. For example, the office successfully prosecuted the woman who made anti-Semitic phone threats to the former Executive Director of Pittsburgh’s Tree of Life Synagogue, as well as the man who assaulted a Muslim United States Postal Service employee while she delivered mail wearing her hijab.
The office collaborated with local law enforcement, religious, and other leaders to teach our communities to identify, prevent, and report hate crimes. We used town hall events, print and social media, a public service announcement, and other channels to communicate our message.
Violent Crimes, Narcotics Trafficking, and Firearms Crimes
As strong as the office’s commitment to battling national security and hate crimes, was its commitment to battling violence, gun crimes, and narcotics trafficking. The office put behind bars the South Florida kidnappers who dumped their victims (two of whom died) on the side of a road after torturing them. We did the same with another kidnapper who held a rideshare driver at gunpoint during a forced cross-country trip. In a case that involved murder contracts, arson, poisoning, and other violence, the office charged several men with furthering a Miami real estate mogul’s terror campaign against the wife he wanted dead.
We combatted gun crimes by aggressively prosecuting international firearms smugglers, unlicensed dealers, and felons who illegally possessed these weapons. From January to May 2024 alone, we indicted 13 defendants on federal gun offenses and seized over 140 firearms.
Stopping domestic and transnational narcotics traffickers from flooding our communities with their poison was a top priority. For example, we sent seven Sinaloa Cartel members and associates to prison for fentanyl, methamphetamine and cocaine trafficking. The office is also part of a team prosecuting Ismael “El Mayo” Zambada Garcia, one of the cartel’s leaders. When a former British Virgin Islands Premier worked with others to traffic cocaine into our country and launder money, we successfully prosecuted him: a jury found him guilty and a judge sentenced him to 11 years in prison.
On deadly fentanyl, we attacked every link of the supply chain. The office charged Chinese chemical manufacturing companies and Chinese nationals with trafficking fentanyl precursor chemicals into the United States. We secured convictions and decades-long prison sentences for fentanyl distributors and dealers whose product killed people, including a baby.
Our asset forfeiture and civil division lawyers battled the drug trade from a financial angle. We secured millions in forfeiture judgments against international drug trafficking organizations (including a vast one headquartered in the Dominican Republic), whose members laundered dirty money through real estate purchases, sophisticated bank transactions, and other means. We also achieved a $475 million settlement in a False Claims Act civil lawsuit claiming that a drug manufacturer had falsely marketed its opioid product as abuse-resistant, knowing that it was, in fact, highly addictive and easy to abuse.
Financial Frauds, Cyber, and Corruption Crimes
We prosecuted hackers, doctors, business executives, local law enforcement personnel, foreign officials, and others on crimes ranging from cyber, identity theft, and insider trading to the full panoply of frauds: health care, securities, Ponzi schemes, mortgage, tax, cryptocurrency-related, and more.
In a cybercrimes case with worldwide impact, the office was part of the prosecution team that disrupted Blackcat, the sophisticated ransomware group whose remote kidnappings of sprawling computer networks, including ones supporting critical American infrastructure, caused tens of millions of dollars in losses to victims around the world. As a result of our work, victims were able to proceed with their data and network operations.
In a fraud case that sounded patient-safety alarm bells at nursing schools, licensing boards, and medical facilities across the country, the office successfully prosecuted dozens of fraudsters involved in a scheme to sell fake school diplomas and transcripts to aspiring nurses.
On health care fraud matters, the work of our civil division was impressive. For example, the office successfully litigated a False Claims Act civil lawsuit alleging that a Florida man and his laboratories conspired to fraudulently bill Medicare for cancer genomic tests that were medically unnecessary and procured through illegal kickback payments. The owner of the laboratories agreed to pay over $27 million to settle the case.
The office also held accountable criminals who defrauded Covid-19 pandemic relief programs, stealing money intended for small business owners and others who economically struggled during the pandemic. In the last two years alone, criminal prosecutors have charged many defendants, including dozens of officers and staff employed with local law enforcement and corrections departments: Broward Sheriff’s Office, Miami-Dade Police Department, City of Miami Police Department, Florida Department of Corrections, and Miami-Dade Corrections and Rehabilitation Department. Civil division litigators have recovered over $9.6 million, and asset forfeiture division litigators have secured multi-million-dollar forfeiture orders, in pandemic-related fraud cases.
Corrupt government officials who abused their power faced justice in this district. In one matter, we secured a conviction against a City of Miami police officer who illegally stopped vehicles to steal kilograms of cocaine and drug cash. In another, the office successfully prosecuted a former comptroller general of Ecuador (whose job it was to protect public funds and root out corruption in that country) for soliciting and taking over $10 million in bribes and laundering it through Miami real estate purchases and bank transactions. Following a three-week jury trial, guilty verdict, and asset forfeiture trial in that case, Carlos Ramon Polit Faggioni was sentenced to a decade in prison and ordered to forfeit $16.5 million. We also secured a conviction against his son, a former Miami banker, for his part in the scheme.
The office expanded enforcement efforts for certain non-violent crimes by launching a Whistleblower Non-Prosecution Pilot Program with twin goals: helping to identify high-level offenders within significant governmental and private organizations and encouraging organizations to develop robust compliance programs.
Human Trafficking and Child Exploitation Matters
The office aggressively combatted human trafficking and child exploitation, using enforcement and outreach. We secured a 30-year prison sentence against a cruise ship employee who used hidden cameras planted in staterooms to secretly record children; a 15-year prison sentence for a Miami attorney and former prosecutor who solicited minors online; long prison terms (14 and 30 years) for cross country sex-traffickers; and a conviction against a man who forced women and girls into commercial sex acts through beatings, near-drownings, food deprivation, and other violence and intimidation.
Through a public service announcement, visits to schools and community centers, and other engagement, we warned parents and children about the dangers of online sex crimes and offered tips to identify and prevent them. Interacting with the community has been one of the most meaningful parts of this job.
Moving Forward
Beginning January 18, 2025, First Assistant United States Attorney Michael S. Davis, who has served the office for over 30 years, will be Acting United States Attorney. Having witnessed the passion, dedication, and commitment that the members of the office bring to their jobs – including the 45 lawyers we hired despite budget challenges – I know that I leave the district in strong and capable hands.
-Markenzy Lapointe
* * * * *
Omaha Man Sentenced for Conspiracy to Distribute Fentanyl AnalogueRead the Press Release
United States Attorney Susan Lehr announced that Keith Fox, age 51, of Omaha, Nebraska, was sentenced January 16, 2025, in federal court in Omaha for conspiracy to distribute and possess with intent to distribute 10 grams or more of fentanyl analogue. United States District Judge Brian C. Buescher sentenced Fox to 60 months’ imprisonment. There is no parole in the federal system. After Fox is released from prison, he will begin a 5-year term of supervised release.
In September 2023 a confidential informant (CI) working with the DEA Overdose Task Force purchased 7.5 grams of fentanyl analogue from Fox. Fox was known as “Shorty” on the streets and was selling powder fentanyl, which is even more potent than the M30 pills. In December 2023 the CI purchased another eight grams of powder fentanyl analogue from Fox. Both buys took place in Omaha, Nebraska.
This case was investigated by the Drug Enforcement Administration’s Overdose Drug Task Force, which is comprised of law enforcement from the Drug Enforcement Administration, Omaha Police Department, Nebraska State Patrol, and Douglas County Sheriff’s Office.
.
Oakland Money Services Business Owner Sentenced to One Year in Prison for Conspiracy to Commit Money LaunderingRead the Press Release
OAKLAND – Jose Luis Garcia, the co-owner of Envios Express, a money transmitting business in Oakland, was sentenced this week to 12 months in federal prison. The Honorable Haywood S. Gilliam, Jr., United States District Judge, handed down the sentence on Jan. 15, 2025.
Garcia, 57, of Oakland, was indicted in July 2023 and pleaded guilty in September 2024 to one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h).
According to court documents and Garcia’s plea agreement, Garcia and his wife, who was also charged in this case, owned a money transmitting business on International Boulevard in Oakland that operated under several names, including Envios Express. The business was a local agent of and contracted with national wire service companies to provide wire transfer services to the public. As a local agent, Garcia had access to wire services that facilitated the transfer of funds from Oakland to other parts of the United States, Mexico, Honduras, and other foreign countries.
Garcia completed annual Anti-Money Laundering training through these wire service companies. As the designated anti-money laundering compliance officer for Envios Express, he agreed to monitor the store’s outgoing wires for structuring activity intended to evade reporting requirements. Garcia admitted using fake sender names and IDs to process multiple structured wires to conceal the fact that a single sender was wiring amounts greater than $3,000, which he knew would have triggered mandatory federal reporting requirements. He accepted large amounts of cash, sometimes as much as $9,000 or more, from unidentified customers, who asked that the cash be wired to well-known drug trafficking areas of Mexico or to persons in Honduras, without recording the true identity of the sender. Garcia misused the names and IDs of legitimate customers to send large amounts of cash for unidentified customers in order to evade reporting requirements. He also kept roughly 15,000 digital images of California driver’s licenses and Honduran, Mexican, and other national identity cards on cell phones, which he used to meet the wire companies’ ID requirements.
In August 2022, Garcia agreed to a request by a confidential source to wire $9,200 in cash to recipients in Mexico without providing an ID or using the sender’s real name as federal law requires. Garcia structured the $9,200 in cash in four wires, using fake names for the sender on the receipts, and charged an under-the-table fee of $50 for each of the wires.
In addition to the prison term, Judge Gilliam ordered the defendant to serve three years of supervised release.
United States Attorney Ismail J. Ramsey, IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Oakland Field Office Linda Nguyen, and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Bob P. Beris made the announcement.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorneys Daniel Pastor and Nicholas Parker are prosecuting the case with assistance from Amanda Martinez and Andy Ding. The prosecution is the result of an investigation by IRS-CI and DEA.
New York Man Who Tried to Withdraw Money from Massachusetts Bank Accounts Using Fake Passports Pleads GuiltyRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to using counterfeit United States passport cards in the name of three Massachusetts residents in order to withdraw money from their bank accounts.
Jean Andre Bontiffe, 41, pleaded guilty to three counts of bank fraud, one count of forgery or false use of a Passport and one count of aggravated identity theft. Chief U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for May 6, 2025. Bontiffe was previously charged by criminal complaint in October 2023.
On Aug. 9, 2022, Bontiffe was arrested in New York for attempting to pass through TSA screening at LaGuardia Airport using a counterfeit California driver’s license in the same name as one of the Massachusetts victims. A subsequent investigation revealed that, between July 20 and July 22, 2022, Bontiffe traveled to Massachusetts from New York, and made nine attempts to withdraw money from bank accounts that belonged to three victims from Massachusetts – stealing a total of $13,800. On July 20, 2022, Bontiffe entered a TD Bank branch in North Andover, Mass. and presented a United States passport and a Discover credit card, both in the name of a Massachusetts resident who had an account at the bank, as proof of identity and attempted to withdraw $4,500 from that account. Due to unmatched signatures, the bank denied the transaction and confiscated the passport and credit card prior to Bontiffe fleeing the scene.
The charge of making or using a forged passport provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Paul Creazzo, Chief of the Mamaroneck (New York) Police Department made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.New Orleans Man Given Maximum Sentence for Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MAURICE FLORANT (“FLORANT”), age 34, formerly a resident of New Orleans, was sentenced today by U.S. District Judge Carl J. Barbier to 180 months imprisonment after previously pleading guilty to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1). The sentence, 180 months, is the maximum statutory sentence allowed. Judge Barbier also ordered that FLORANT be placed on supervised release for three (3) years following his release from imprisonment and pay a mandatory $100 special assessment fee.
Court documents reveal that on September 5, 2022, FLORANT, a convicted felon, and another unknown individual, were seen on a home video camera shooting at two individuals with two pistols while driving in New Orleans in a stolen vehicle. Four days later, FLORANT was seen in a different stolen vehicle by Jefferson Parish Sheriff’s Office (JPSO) deputies but fled when they attempted to stop him. A high-speed chase ensued that ended when FLORANT crashed into an exterior air conditioning unit of an apartment complex. FLORANT ran from deputies but was eventually arrested. A Palmetto State Armory Model PA-15, .556 caliber pistol, and a CZ Scorpion Model EVO 3 S1, nine-millimeter pistol were recovered from the stolen car FLORANT was driving. Ballistic testing revealed that the shell casings found at the scene of the shooting matched the shell casings from the pistols found in the stolen car FLORANT was driving. The Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted JPSO and the New Orleans Police Department in the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Evans praised work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Narcotics Unit handled the prosecution.
New Mexico Man Pleads Guilty to Federal Criminal Charge for Setting a Fire at San Bernardino County Church and Preschool Last YearRead the Press Release
LOS ANGELES – A New Mexico man pleaded guilty today to setting on fire a San Bernardino County church and preschool last year while children and school employees were inside.
Jonathan A. Barajas Nava, 37, of Albuquerque, New Mexico, pleaded guilty to a single-count superseding information charging him with damage to religious property.
"This defendant's violent actions against a religious property put lives - including those of children - in danger," said United States Attorney Martin Estrada. "I commend our federal and local partners for working together to arrest and prosecute this individual, whose criminal acts could have caused a much larger tragedy."
According to his plea agreement, on April 24, 2024, Nava set fire to the Retreat Church and Yucaipa Christian Preschool in Yucaipa. Before setting the church on fire, Nava traveled to a nearby gasoline station and purchased a gasoline can and filled it with gasoline. He then traveled to the church with the can and poured the liquid on the church’s front door. Then, he used an open-flame device to set the area on fire.
The resulting fire damaged the church’s interior carpet, the doorframe seal, and an outdoor mat. Staff and children inside evacuated the building.
Nava then traveled to a nearby strip mall and set fire to the exterior wall, which resulted in no damage.
Nava admitted in his plea agreement that he set fire to the church because of its religious character.
Nava was arrested on April 24 and was charged in state court prior to a federal criminal case being brought against him.
United States District Judge John F. Walter scheduled a March 31 sentencing hearing, at which time Nava will face a statutory maximum sentence of 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Department of Forestry and Fire Protection; and the San Bernardino County Sheriff’s Department investigated this matter.
Assistant United States Attorneys Austin D. Young and Peter Dahlquist of the Riverside Branch Office are prosecuting this case.
New Jersey Company Admits Clean Water Act Violations, Causing Fish Kill in CheshireRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, announced that NATIONAL WATER MAIN CLEANING COMPANY (“NWMCC”) waived its right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a felony violation of the Clean Water Act (“CWA”) for knowingly discharging a pollutant into Cuff Brook while refurbishing a large culvert pipe in Cheshire, Connecticut, in July 2019. The unauthorized discharge of uncured geopolymer mortar killed more than 150 fish and contaminated Cuff Brook.
NWMCC is based in New Jersey and owned by Carylon Corporation based in Chicago, Illinois. Under the terms of its plea agreement, if accepted by the court, NWMCC will be under federal probation for three years, and must pay a $500,000 federal penalty and $500,000 to fund aquatic ecosystem enhancement projects in the South Central Coastal Watershed, as administered by the Connecticut Department of Energy and Environmental Protection (“CT DEEP”).
According to court documents and statements made in court, NWMCC had submitted the lowest bid and entered into a contract with the Town of Cheshire (“Cheshire”) to repair a decaying 11-foot culvert pipe underneath Marion Road. Cheshire’s project specifications required that the work be done under dry conditions along with environmental controls to prevent uncured geopolymer mortar from leaking into Cuff Brook.
With a Cheshire Department of Public Works (“DPW”) representative present each day, NWMCC began work on July 15, 2019. However, from July 16 to July 18, 2019, NWMCC sprayed geopolymer mortar onto the culvert pipe without the mandated environmental controls. On July 17, 2019, NWMCC crews continued to work despite heavy rain, which led to uncured geopolymer mortar seeping into Cuff Brook. On July 18, 2019, a Cheshire resident with property abutting Cuff Brook observed dead fish and discolored water with an oily sheen in the brook, and smelled a chemical odor similar to lighter fluid. CT DEEP responded and determined that NWMCC was responsible for the pollutant release, thereby killing more than 150 fish and contaminating the waterway. CT DEEP estimated that Cuff Brook would not return to its prior state for three to five years.
The government’s investigation revealed that NWMCC was aware that its environmental controls were deficient, but did not remediate these deficiencies during the project. Although the company attempted to blame the pollutant release and fish kill on a single employee, the investigation showed that he had been inadequately trained, directed to complete the job in an unrealistic timeframe, and was never informed that the uncured geopolymer mortar was hazardous to the environment.
The investigation also revealed that NWMCC lacked a meaningful and comprehensive environmental training program for its employees, particularly with respect to the CWA, even though NWMCC’s core business is repairing and rehabilitating infrastructure that interfaces with public waterways. In addition, NWMCC’s bonus policy incentivized site supervisors and executives to push their work crews to perform projects quickly and maximize the number of jobs completed. At the time of Cheshire project, NWMCC was operating under a Code of Conduct as part of a 2014 settlement with the Massachusetts Attorney General’s Office to resolve civil allegations involving environmental pollution.
“Any business operating in Connecticut that ignores environmental laws does so at its own peril,” said U.S. Attorney Avery. “By prioritizing its bottom line over environmental compliance, NWMCC allowed a hazardous substance to escape into Cuff Brook, causing a fish kill and contaminating a public body of water. This prosecution under the Clean Water Act is a reminder that a profit-driven approach to environmental protection will not go unpunished in Connecticut. We thank the EPA for its invaluable work in protecting the environmental integrity of Connecticut’s waterways.”
“In pleading guilty today, NWMCC accepted responsibility for its illegal discharge of a hazardous chemical into Cuff Brook, and for its failure to adequately manage this public works project,” said Special Agent in Charge Amon. “Environmental compliance and corporate accountability for illegal pollution are key components in our continuing work with the Connecticut Department of Energy and Environmental Protection and the Connecticut Office of the Attorney General to enforce vigorously the laws that protect our air, water, and land.”
Judge Dooley scheduled sentencing for February 27.
This matter was investigated by the U.S. Environmental Protection Agency – Criminal Investigation Division with the assistance of the Connecticut Department of Energy and Environmental Protection and the Connecticut Office of the Attorney General. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
New Bedford Man Sentenced to Prison for Stealing over $450,000 in Veterans Disability BenefitsRead the Press Release
BOSTON – A New Bedford man was sentenced today for stealing over $450,000 in disability benefits issued by the United States Veterans Benefits Administration (VBA) intended for a 20-year veteran of the United States Marine Corps who was suffering from Amyotrophic Lateral Sclerosis (ALS).
Joseph Smith, 71, was sentenced by U.S. District Court Judge Julia E. Kobick to 23 months in prison, to be followed by two years of supervised release. Smith was also ordered to pay $459,550,86 in restitution. In September 2024, Smith pleaded guilty to one count of theft of government benefits and one count of conspiracy to steal government benefits. Smith was charged in June 2024.
Shortly after the victim’s ALS diagnosis in August 2015, the VBA approved the victim’s application for disability benefits and awarded him approximately $8,318 in monthly payments. The VBA began issuing payments in September 2015 via monthly checks mailed to the victim’s former residence in New Bedford, where he had resided with Smith’s relative.
Between approximately 2015 and 2020, while the victim was hospitalized for ALS, Smith and others received monthly VBA disability checks intended for the victim and deposited those checks into bank accounts they controlled. Smith first deposited the disability checks into a bank account in his own name and then began depositing the checks into a bank account that he and others fraudulently opened in the name of victim. Shortly after depositing the disability checks, Smith withdrew the funds in cash and used the money for personal expenses.
In total, between in or around 2015 and 2020, Smith and others stole more than $450,000 in VBA disability benefits intended for the victim.
“Every American owes a debt of gratitude to the men and women who have worn the uniform. Stealing from them is simply immoral and Mr. Smith will now pay a heavy price for his egregious betrayal of a veteran who sacrificed for all of us to keep our country free and safe,” said United States Attorney Joshua S. Levy. “Stealing from a Marine Corps veteran who bravely served for 20 years as he battled a devastating illness is about as low as it gets.”
“Military veterans deserve our highest reverence and respect,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Joseph Smith egregiously stole a disabled veteran’s benefits to enrich himself. Smith was sentenced today for his appalling crime. The U.S. Postal Inspection Service is committed to protecting the integrity of the mail stream and all customers who use it.”
“This sentence sends a clear message that individuals who steal VA benefits from disabled veterans will be held accountable,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “VA’s programs and services are established to justly compensate deserving veterans and the VA OIG is committed to investigating those who would exploit or defraud these programs.”
“Mr. Smith admitted to stealing federal disability benefits, which he gained access to by misusing someone else’s identity, including their Social Security number. This sentence holds him accountable for his role in this deplorable conspiracy to defraud the government,” stated Amy Connelly, Special Agent in Charge, Social Security Administration Office of the Inspector General, Boston-New York Field Division. “I commend the investigators from the U.S. Postal Inspection Service and the Veterans Affairs Office of the Inspector General and prosecutors from the U.S. Attorney’s Office for their diligent efforts in working this case.”
U.S. Attorney Levy, USPIS INC Larco-Ward, VA-OIG SAC Algieri and SSA-OIG SAC Connelly made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit prosecuted the case.
Nashville Man Sentenced to 25 Years in Federal Prison for Multiple Robberies and CarjackingsRead the Press Release
NASHVILLE – Jesse Jose Rucker, 35, of Nashville, Tennessee, was sentenced yesterday to 25 years in federal prison, followed by 4 years of supervised release, on charges related to a series of carjackings and robberies he committed in Middle Tennessee in November 2021 while he was on probation for a state court felony offense, announced Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire. Rucker previously pled guilty to four counts of commercial robbery, four carjacking counts, three counts of brandishing a firearm during a crime of violence, and one count of unlawful possession of a firearm by a convicted felon.
“This prosecution again demonstrates our unwavering commitment to hold violent offenders accountable for the havoc they wreak in our community” said Acting United States Attorney Robert E. McGuire. “This sentence ensures that Jesse Rucker will not have the chance hurt any other citizen for over two decades. Those who would do similar violence should know that we will do what it takes to ensure that they face similar punishment.”
“This investigation focused on armed robberies, multiple carjackings, and terrifying acts of violence within the communities that we serve,” said ATF Special Agent in Charge Marcus Watson. “The ATF and our valued law enforcement partners will continue to collaborate and work collectively to take violent criminals off our streets in an effort to maintain public safety.”
“Accountability is essential for violent criminals who prey on innocent victims,” said Metropolitan Nashville Police Chief John Drake. “In this case, our partnership with federal law enforcement to hold Rucker accountable means that he will be 60 when he is released from prison. I deeply appreciate the U.S. Attorney’s Office for working closely with us to keep Nashville safe.”
According to court documents, on November 10, 2021, Rucker entered the Hightail Convenience Store on Eaton’s Creek Road in Joelton, Tennessee, and requested the clerk turn on a gas pump for him. When she said she could not, he opened his jacket and showed her a gun. He told her, “My homie was just shot, and I have to do what I have to do.” He left the store and pumped gas then returned to the store and demanded the money from the register. He received approximately $180 from the clerk, then fled the store.
On November 11, 2021, at 8:01 a.m., Rucker carjacked a victim at the Woodspring Suites, located at 515 Metroplex Drive in Nashville. Rucker pulled into a parking space next to the victim, pointed a gun at the victim, and stated, “I want your car.” A few hours later, Rucker carjacked two more victims outside their home. He pointed a gun at the victims and told them he needed their vehicle. He then fled in their car in the direction of Nolensville Pike where, a few minutes later, he was captured on video getting out of the car before robbing the Harding Pharmacy at 4120 Nolensville Pike in Nashville. Rucker entered the pharmacy and approached the counter where he asked the victim for two boxes of syringes while waiving a black and silver pistol.
Less than an hour later, at approximately 1:37 p.m., Rucker pulled up in the second stolen car next to yet another victim who was sitting in their car eating lunch at 1201 Antioch Pike. He pointed a gun at the victim and asked if he could have the victim’s car and phone. The victim refused to turn over the phone, despite Rucker asking multiple times. Finally, Rucker drove off in the victim’s car. A few minutes later, Rucker parked the latest stolen car outside the Metro PCS store at 3503 Nolensville Pike. He walked into the store and yelled to the employees, “You’re about to get robbed.” The employees did not believe him at first, but he then pulled out his black and silver gun, cocked it, and pointed it at an employee. He then demanded all the store’s iPhones. Surveillance from a nearby store captured Rucker entering the store, then walking by with his arms full of the stolen items from Metro PCS. Within minutes of leaving Metro PCS, Rucker entered the Dubai Jewelry store at 3971 Nolensville Pike with a gun in his hand where he smashed the glass of a jewelry counter with his gun. He reached into the jewelry counter and grabbed four 24 carat gold rings valued at $1,450 before leaving the store. After fleeing the store, Rucker crashed the stolen car into another car and attempted to carjack that car, but it had been disabled by the crash. Rucker then ran through the street and fired at least one shot.
Rucker then carjacked yet another car at gunpoint at 2219 Murfreesboro Pike. This car was occupied by a couple and their two young children. Metro Nashville Police officers located the vehicle and initiated a pursuit on I-40 East into Wilson County where the pursuit lasted more than six minutes with multiple law enforcement vehicles dodging in and out of interstate traffic at speeds up to 126 miles per hour. Rucker crashed the stolen car into a Wilson County Sheriff’s Office deputy’s car and then ran away still carrying his gun in his hand. Wilson County deputies chased Rucker on foot for a short time down the interstate into oncoming traffic before catching and arresting him.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rachel M. Stephens prosecuted the case.
# # # # #
Muskogee Resident Sentenced for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stephen Patrick Looper, age 69, of Muskogee, Oklahoma, was sentenced to ten months in prison, to be followed by five years of supervised release, for failing to register as a sex offender.
The charge arose from an investigation by the United States Marshals Service Violent Crime Fugitive Task Force, the Muskogee Police Department, and the Muskogee County Sheriff’s Office.
On August 13, 2024, Looper pleaded guilty to one count of Failure to Register as Sex Offender.
On September 6, 2002, Looper was convicted of Sexual Performance of a Child by the State of Texas. Looper was advised of the requirement to register as a sex offender and to inform law enforcement of any change in residency. According to investigators, from January 2024 until July 10, 2024, Looper failed to register as a sex offender despite moving into and living at a residence in Muskogee County, within the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Looper will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorneys Caila M. Cleary and Sarah McAmis represented the United States.
Multiple defendants indicted on federal firearms chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include charges alleging felons illegally possessed firearms, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“Removing guns from the hands of those who are prohibited from possessing them is a vital part of this office’s effort to fight violent crime,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Our law enforcement partners continue their valiant efforts to identify individuals who illegally possess weapons in our communities.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted in January include:
- Natravien Reshawn Landry, 25, of Abbeville, Louisiana, charged with Premeditated Murder and Use of a Firearm During a Crime of Violence for the Dec. 14, 2024, fatal shooting of U.S. Army Sgt. Andre S. Stewart Jr. at Fort Eisenhower in a case under investigation by the Department of the Army Criminal Investigation Division. Also,
- Fitz Kenney Williams, 33, of Augusta, charged with Illegal Receipt of a Firearm by a Person Under Indictment;
- Ruben Alejandro Reyna-Mendoza, 47, of Ridgeland, South Carolina, charged with Possession of a Firearm by a Convicted Felon; and,
- Jarvis Jerrell Giles, 36, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Lial Stephens, 28, of Pooler, Ga., was sentenced to 64 months in prison and ordered to pay $11,400 in restitution after pleading guilty to two counts of Interference with Commerce by Robbery. Stephens pointed a pistol at a Garden City, Ga., convenience store clerk during robberies in September and November 2023.
- Jeremy Studdard, 43, of Dublin, Ga., was sentenced to 80 months in prison and fined $1,500 after pleading guilty to Possession of Firearms by a Convicted Felon, and Possession of Methamphetamine with Intent to Distribute. Studdard, initially facing a federal gun charge, was out on bond for related state charges when Dublin police officers found him in possession of drugs and guns during two separate traffic stops.
- Ray Charles Canady III, 51, of Augusta, awaits sentencing after pleading guilty to Interference with Commerce by Robbery, Possession of a Firearm in Furtherance of a Crime of Violence. Richmond County investigators arrested Canady after he brandished a firearm at an Augusta convenience store in February 2024 and threatened an employee before running from the store with cash and lottery tickets.
- Phillip Moore, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers conducting foot patrol in a Savannah neighborhood found Moore in possession of a semiautomatic pistol while arresting him for trespassing.
- Kenneth Moultrie Jr., 24, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a semiautomatic pistol in Moultrie’s possession during an April 2024 traffic stop.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Mother and Son Convicted of CARES Act FraudRead the Press Release
Oxford, MS – Zipora Hudson and Montreal Hudson, both of Olive Branch, Mississippi, were convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering following a federal jury trial that concluded on January 15, 2025. Deandre Jones, also of Olive Branch, Mississippi, previously pled guilty in the case.
The Paycheck Protection Program (“PPP”) was a COVID-19 pandemic relief program administered by the Small Business Administration (“SBA”) to provide funding for small businesses affected by the economic downturn associated with the Coronavirus Pandemic. According to court documents, Zipora Hudson, her son, Montreal Hudson, and Deandre Jones utilized Zippy Bee, LLC tax preparation business in Charleston, MS, to create and file hundreds of PPP loan applications on behalf of borrowers that were not eligible to receive the loans. The defendants created fraudulent Schedule C tax documents to claim gross income amounts that far exceeded the real income for a particular business or claimed gross income amounts for businesses that never existed. The documents were created in order to receive PPP loans in amounts ranging from $19,000 to $20,833 per loan. For their efforts, the defendants required the borrowers to pay them a kickback out of the proceeds of each loan. The defendants used the illegally obtained money to purchase luxury vehicles and real estate, among other things.
“Zipora Hudson, Montreal Hudson, and Deandre Jones stole millions of dollars from American taxpayers while taking advantage of programs designed to help keep businesses afloat during a national crisis,” said U.S. Attorney Clay Joyner. “Our office will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and will use all available tools to recover the stolen monies.”
“The defendants fraudulently took money from the government that was supposed to assist businesses with keeping their personnel employed during the COVID-19 pandemic,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are continually pursuing and investigating individuals who took advantage of a program that was created to provide relief to small businesses so they could pay their employees and other expenses.”
Sentencing for Zipora Hudson and Montreal Hudson is set for April 24, 2025, and both defendants face a maximum penalty of 30 years for the wire fraud conspiracy and 20 years for the money laundering conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The scheme in the instant case was initially uncovered during the course of a civil investigation. Assistant U.S. Attorney Scott Leary and Assistant U.S. Attorney Sam Wright prosecuted the case on behalf of United States Attorney’s Office for the Northern District of Mississippi. The case was investigated by the Internal Revenue Service Criminal Investigation Division along with investigators from the United States Attorney’s Office.