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Tuesday 19 November 2024
19 Individuals Indicted and Arrested in Relation to Statewide Bank Fraud ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Qornelious Campbell (31), Kenneth Cole II (25), Kenisha Coffer (25), D’Andranika Crews (20), Ebony Fields (26), Victoria Ferrer (22), Aaliyah Gotay-Woods (23), Bre’asia Harris (26), Jaun Hillman (51), Keith Honors, Jr. (39), Kendrick Iles (20), Arkuria Lewis (22), Deven Little (28), Josie Lopez (29), Clarissa Morris (24), Tamiria Perry (27), Mark Quesnel (66), Tamaries Richardson (30), and Kalei Spicer (22), all residents of Polk County, with conspiracy to commit bank fraud and bank fraud. If convicted on all counts, each faces a maximum penalty of 30 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit any and all assets traceable to proceeds of the offenses.
According to court documents, in 2023, the Federal Bureau of Investigation and the Polk County Sheriff’s Office initiated an investigation into a violent street gang known as the “Trap Boys,” who were operating throughout the Middle District of Florida. This investigation and subsequent arrests were predicated upon several retaliatory shootings between the Trap Boys and other violent street gangs. During these arrests, several members of the gang were found to be in the possession of large quantities of checks, debit cards, financial statements, and identification cards in the names of third parties. Further investigation of these materials revealed that from at least July 2021, and continuing through November 2023, a group of individuals had engaged in a conspiracy to defraud banks, credit unions, individual persons, and various businesses throughout Florida, including Winter Haven, Auburndale, Riverview, Kissimmee, Lakeland, Tampa, and Miami.
As part of this conspiracy, the co-conspirators stole checks from individuals and businesses. Using check writing software, the co-conspirators then altered those checks and created fictitious checks, changing the banks, businesses, and the check amounts. Using automated systems and online databases, the co-conspirators then learned of the banking information of various businesses, including their transaction history, account balances, check numbers and other information. Members of the conspiracy then recruited accomplices who provided members of this conspiracy with their own bank account numbers, Social Security numbers, debit cards, and their own individual bank account log credentials and passwords. The co-conspirators then deposited the fraudulently created checks at dozens of banks and credit unions throughout the Middle District of Florida.
Over the course of this conspiracy, approximately 26 banks and more than 200 victims were defrauded, including insurance companies, law firms, construction companies, tile companies, auto shop businesses, public school districts, colleges, and state agencies.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Polk County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justicegov/OCDETF.
1,295 Kilograms of Cocaine Seized by the United States Coast GuardRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Julio Contreras Bueno and Christian Garay Ochoa, both of Mexico, appeared before Magistrate G. Alan Teague for their initial appearance after being charged by Indictment with conspiracy to possess with intent to distribute cocaine while on board a vessel subject to jurisdiction of the United States.
According to court records, on September 5, 2024, during a routine patrol in international waters in the Eastern Pacific, a Royal Canadian Naval ship with a United States Coast Guard detachment onboard intercepted a go-fast vessel after it was sighted approximately 427 nautical miles southwest of Acapulco, Mexico. The vessel, which was dead in the water floating adrift with bales visible on the deck, displayed no indicia of nationality and had no flag flown. The Coast Guard detachment conducted a right of visit boarding on the vessel as it was suspected of illicit maritime activity. The vessel had a large hole in its bow and Julio Contreras Bueno, Christian Garay Ochoa, and Francisco Hernandez Penaloza were found onboard. A claim of Mexican nationality was made by the crew, but the Mexican government could neither confirm nor deny nationality of the vessel. The vessel was therefore determined to be one without nationality, thus subject to the jurisdiction of the United States. A search of the vessel revealed 35 bales consistent with contraband. Two presumptive tests were conducted on packages inside the bales, which proved positive for cocaine. The contraband was removed, and the vessel was sunk due to the damage to the hull. The initial appearance of Hernandez Penaloza will be scheduled before Magistrate Teague pending his removal from the Southern District of California. If convicted, they face a minimum of ten years and a maximum of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the United States Coast Guard and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Kyle Payne. 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.
U.S. Attorney Smith reminds the public that a criminal Indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monday 18 November 2024
Woodford County Man Sentenced for Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. – A Versailles, Ky., man, Cameron Spencer, 34, was sentenced to 262 months in prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 40 grams or more of fentanyl.
According to his plea agreement, on February 19, 2022, Spencer made a same-day reservation for an Air BnB rental property, with a check-out time of approximately 11 a.m. the next morning. During Spencer’s reservation, multiple people were observed, via recorded video footage, entering the property. At some point during the reservation, an alert of Spencer’s presence in the backyard was sent to the homeowners. Spencer was observed, via video footage, digging in the backyard of the rental property.
After Spencer checked out of the property, a bag of narcotics was found in the area where Spencer was observed digging. Additional items consistent with drug trafficking were also found, including a hydraulic press, a blender, and bags. Spencer was located near the rental property, and law enforcement found $2,295 in cash on his person and in his vehicle. Spencer admitted to possessing the 226.15 grams of fentanyl with intent to distribute it.
Under federal law, Spencer must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, announced the sentencing.
The investigation was conducted by the DEA and Lexington Police Department. Assistant U.S. Attorneys Paco Villalobos and Brittany Baker are prosecuting the case on behalf of the United States.
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West New York Financial Advisor Sentenced to 41 Months in Prison for Role in Multimillion-Dollar Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A West New York financial advisor was sentenced today to 41 months in prison for 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced.
Kaival Patel, 55, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler. U.S. District Judge Edward S. Kiel imposed the sentence today in Camden federal court.
“This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and the evidence at trial:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.
Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.
Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.
To date, approximately 48 people have been convicted or pleaded guilty in the overarching conspiracy.
In addition to the prison term, Judge Kiel sentenced Patel to three years of supervised release and ordered him to pay restitution of $4.72 million.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division and R. David Walk Jr., Deputy Chief of the Criminal Division.
Warren County Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, was sentenced today to 10 years in prison for attempting to entice and coerce a 12-year-old child into sexual activity.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl, in an attempt to entice the child into engaging in sexual acts with him. Cutter also admitted that on that same date, he traveled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl. Cutter was arrested by law enforcement shortly after arriving at the location.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of post-imprisonment supervised release. Cutter will be required to register as a sex offender upon his release from prison.
The case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force – comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police, Rotterdam Police Department, Warren County Sheriff’s Office, and Saratoga County Sheriff’s Office. Assistant U.S. Attorney Allen J. Vickey prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Virginia Man Chatting with Purported Minor Female Online is Convicted and Sentenced to Federal PrisonRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced the sentencing of a man from Virginia for attempted production of child pornography. Ross Brandon, 40, was sentenced today by United States District Judge Terry A. Doughty to 180 months (15 years) in prison, followed by a lifetime of supervised release.
On June 12, 2023, an agent with the Federal Bureau of Investigation (“FBI”) working in an undercover capacity, was posing as a 13-year old female and began communicating with a user via the social platform, Whisper. The user identified himself as Mountain Man and was later identified by law enforcement agents as Ross Brandon. During their communications, the undercover agent identified themselves to Brandon as a 13-year old female named “Sara a.k.a. Princess,” living in Louisiana. Brandon identified himself and gave his age and where he resided at the time and told “Sara” that he lived in Virginia. Brandon sent non-sexually explicit photos of himself to “Sara” and law enforcement agents were able to establish his identity and location.
After some time of communicating through the Whisper app, Brandon and “Sara” exchanged telephone numbers and began text messaging on cell phones. While communicating with “Sara,” Brandon requested that she engage in self-masturbation and would engage in sexually explicit conversations with her. Brandon sent sexually explicit images of himself to “Sara” on two occasions in June and July of 2023. On two occasions in July of 2023, Brandon requested that “Sara” send sexually explicit images of herself to him.
Brandon was later arrested and admitted to law enforcement agents that he knew “Sara” was under the age of 18 and that he had requested child pornography images from her. He was charged in the Western District of Louisiana with attempted production of child pornography and pleaded guilty July 29, 2024.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney William C. Gaskins.
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Vietnamese National and Member of Multinational Media Company Charged with Participating in A Scheme to Launder at Least $67 Million in Fraud ProceedsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Andrew Wroblewski, the Assistant Director of the U.S. Department of State’s Diplomatic Security Service (“DSS”) Domestic Operations, announced the unsealing of a Superseding Indictment charging LE VAN HUNG, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” with conspiring with the Chief Financial Officer of a multinational media company headquartered in New York City to engage in a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, the media company. On Friday, HUNG was extradited from South Korea and was presented before U.S. Magistrate Judge Ona T. Wang. The case has been assigned to U.S. District Judge Marrero.
U.S. Attorney Damian Williams said: “As alleged, Le Van Hung, while located in a foreign country, conspired with the Chief Financial Officer of a global newspaper and media company, to benefit the media company and its affiliates by laundering tens of millions of dollars in fraudulently obtained unemployment insurance benefits and other crime proceeds. In furtherance of the scheme, Hung allegedly stole the personal identification of U.S. residents to open and maintain financial accounts in order to launder fraud proceeds. The charges against and extradition of Hung reflect this Office’s ongoing commitment to enforce the law against those who facilitate money laundering, even if located abroad, together with our foreign partners.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving the Department of Labor's unemployment insurance program. We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers.”
DSS Domestic Operations Assistant Director Andrew Wroblewski said: “Protecting U.S. persons from international fraud schemes and safeguarding U.S. personal information and documentation, including passports, is critical to the Diplomatic Security Service’s mission. We are firmly committed to partnering with our U.S. and international law enforcement colleagues to stop criminals from conspiring to commit identity fraud and protecting greater U.S. interests.”
According to the allegations contained in the Superseding Indictment:[1]
From at least in or about 2020, through in or about May 2024, HUNG, while working in a foreign office of a multinational media company headquartered in New York, New York (the “Media Company”), conspired with others, including the Chief Financial Officer of the Media Company, to participate in a sprawling, transnational scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Media Company and related entities. In furtherance of the money laundering conspiracy, HUNG recruited and managed various co-conspirators, including co-conspirators who worked with the Media Company’s “Make Money Online” team. HUNG also used, possessed, and transferred personal identification information and documents of U.S. residents in order to, among other things, open and maintain financial accounts that were used to launder fraud proceeds. In one particular instance, HUNG directed a co-conspirator to call a bank and falsely claim that the co-conspirator was the account holder of a certain account so that the bank would unlock the account and HUNG could move fraudulent proceeds out of the account.
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If you believe you are a victim of identity fraud perpetrated by HUNG, please contact [email protected], and find more information here: https://www.justice.gov/usao-sdny/united-states-v-le-van-hung.
HUNG, 29, of Vietnam, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, and one count of identity theft conspiracy, which carries a maximum sentence of 15 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOL-OIG, DSS, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked U.S. Customs and Border Protection. The Justice Department’s Office of International Affairs worked with the International Criminal Division of the Korean Ministry of Justice to secure the arrest and extradition of Hung.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles high-level criminal organizations 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 case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Emily Deininger, Rebecca T. Dell, and Jane Kim are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney's Office and Second Judicial District Attorney’s Office Collaborate to Secure Sentencing in Albuquerque Drug and Gun CaseRead the Press Release
ALBUQUERQUE – A Mexican national was sentenced to 11 years in prison for federal drug and firearms offenses, following his arrest by New Mexico State Police agents in December 2022.
There is no parole in the federal system.
According to court documents, on December 6, 2022, a New Mexico State Police Agent patrolling in Albuquerque identified a stolen pickup truck parked at the Sun apartment complex. The vehicle had been reported stolen by the Los Lunas Police Department on November 16, 2022.
Agents followed the truck, deployed a tire deflation device, and arrested the driver, Mario Figueroa-Camarillo, 40, when he stopped.
During the arrest, officers seized a loaded 9mm magazine, two cell phones, and $1,786 in cash from Figueroa-Camarillo’s person. Figueroa-Camarillo was wearing a GPS ankle monitor as a condition of pretrial release in a case pending at that time in the Second Judicial District Court. A search of the truck revealed approximately 66 grams of methamphetamine, 18 fentanyl pills, a digital scale, a loaded Taurus 9mm pistol, and a GPS charging device.
After completing his term of imprisonment, Figueroa-Camarillo will be subject to deportation proceedings.
U.S. Attorney Alexander M.M. Uballez and Bernalillo County District Attorney Sam Bregman made the announcement today.
The U.S. Immigration and Customs Enforcement and New Mexico State Police investigated this case. Special Assistant U.S. Attorney Peter Haynes prosecuted the case as part of an agreement with the Second Judicial District Attorney’s Office.
Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.
The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state.
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U.S. Attorney Totten Announces Second Wave of Enforcement in Nationwide Telemedicine Fraud SchemesRead the Press Release
Operation “Happy Clickers” Results in Resolutions with Five More Doctors for Allegedly Authorizing Fraudulent Medicare Spending
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced criminal convictions and civil settlements against a second wave of doctors who participated in nationwide telemedicine fraud schemes by ordering medically unnecessary orthotic braces and genetic testing, allegedly wasting Medicare dollars to line their own pockets. These resolutions were achieved through Operation “Happy Clickers,” a joint initiative between the U.S. Attorney’s Office, the U.S. Department of Health & Human Services’ Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation (FBI) (see prior enforcement announcement here). The enforcement actions announced today include civil settlements with five doctors and criminal convictions against two of them.
“Over the last five years, fraudsters have operated nationwide telemarketing schemes to defraud the Medicare Program of billions of dollars by preying on older adults to solicit orders for medically unnecessary braces and genetic testing,” said U.S. Attorney Mark Totten. “These schemes worked only because physicians checked their training and oaths at the door and click-signed medical orders without an appropriate medical review. My office will continue to work with our law enforcement partners to hold medical practitioners responsible for participating in these schemes.”
As part of this second wave, Theresa Kordish, D.O., of Kalamazoo, MI, and Utibe Effiong, M.D., formerly of Mt. Pleasant, MI, each pleaded guilty to one count of making a false statement relating to health care matters. Both doctors admitted using a telemedicine program to authorize medical orders for patients they never met or examined, approving most orders in mere seconds. In addition to their criminal convictions, each doctor also agreed to pay civil settlements for their conduct based on the scope of the fraudulent orders each signed and on ability-to-pay considerations. Dr. Kordish agreed to pay $50,000, and Dr. Effiong agreed to pay $150,000.
The United States also reached civil settlements with three other physicians. Derek Grossman, D.O., of Traverse City, MI, agreed to pay $295,192.93 to resolve allegations that he used a telemedicine program to order over 1,300 medically unnecessary orthotic braces. Pedro Toweh, M.D., of Battle Creek, MI, agreed to pay $85,822 to resolve allegations that he likewise ordered over 800 medically unnecessary braces. Aaron Willen, D.O., formerly of Kalamazoo, MI, agreed to pay $80,000 to resolve similar allegations regarding several hundred orthotics claims based on ability to pay.
Dr. Kordish is scheduled to be sentenced on February 10, 2025. Dr. Effiong is scheduled to be sentenced on February 18, 2025.
These actions follow nationwide takedowns of so-called “marketers” and owners of medical supply companies and genetic testing laboratories, who worked together to conduct large-scale schemes to defraud Medicare. Details of earlier takedowns were publicized on April 9, 2019, September 27, 2019, and September 30, 2020. The marketers placed phone calls to Medicare beneficiaries, often through overseas call centers, to obtain enough information that they could fill out fraudulent medical orders for orthotic braces and genetic testing. The marketers then paid doctors to approve these orders through telemedicine programs for patients they never met in violation of federal healthcare laws. The marketers then sold the signed orders to medical supply companies and laboratories in violation of federal anti-kickback laws.
Federal investigators initiated these investigations based on a detailed review of Medicare data relating to these expensive braces and genetic tests, which sometimes exceed $8,000 per test, Including the criminal pleas and civil settlements, prosecutors handling Operation “Happy Clickers” have resolved cases against a total of nine separate doctors and nurse practitioners who were responsible for ordering over $10.5 million in alleged loss to the Medicare Program.
Through both rounds of enforcement actions, the United States has recovered over $1,000,000 for the Medicare Program in civil settlements, in addition to restitution that has and is expected to be ordered in the criminal cases. Almost all of these civil settlements were reached based on the inability of the defendants to pay higher amounts.
“Physicians and other providers who authorize medically unnecessary equipment and services undermine our health care system and waste valuable taxpayer dollars,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency is committed to ensuring that those who engage in this conduct are identified and, in conjunction with our law enforcement partners, the resources of our judicial system are brought to bear.”
“The convictions of several physicians involved in a nationwide telemedicine fraud scheme underline the FBI’s commitment to holding those accountable who violate the trust of their profession,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “By preying on the elderly and defrauding Medicare, these individuals betrayed their oath to uphold the highest standards of care and ethics; in turn, they exploited a vulnerable population for personal gain. Members from the FBI in Michigan, in coordination with the U.S. Department of Health and Human Services, will continue to investigate bad actors who undermine the integrity of our healthcare system and the trust placed in them by their patients and communities.”
The resolutions obtained in this second-wave of enforcement actions in Operation “Happy Clickers” were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and HHS-OIG and the FBI.
The criminal cases were prosecuted by Assistant United States Attorney Patrick J. Castle and former Assistant United States Attorney Raymond E. Beckering III. Assistant United States Attorneys Andrew J. Hull and Nicole L. Mazzocco prosecuted the civil cases.
The claims resolved by the civil settlements are allegations only and there has been no determination of liability.
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U.S. Attorney Jesse Laslovich announces almost $2 million in federal Justice Department grants to fight school violenceRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich today announced grant funding of almost $2 million to help fight school violence for two Montana educational entities from the U.S. Department of Justice’s Office of Justice Programs.
The funding, totaling $1,999,992, is from the OJP’s Bureau of Justice Assistance’s Fiscal Year 24 STOP School Violence Program Competitive Solicitation. The project period is from Oct. 1, 2024 to Sept. 30, 2027.
The Western Montana Professional Learning Collaborative in Lolo was awarded $1 million, while Billings Public Schools in Billings was awarded $999,992.
“The work of the Justice Department is often reactionary, as we seek to hold accountable those who violate the rule of law. But it is refreshing when we can be proactive in our work, which is why I am pleased to announce these grants. I applaud the work of the Western Montana Professional Learning Collaborative and Billings Public Schools for their focus on mental health services and crime prevention. We are unwavering in our pursuit of those who commit school violence, and these grants show we are equally committed to preventing school violence from occurring in the first place,” U.S. Attorney Laslovich said.
The Western Montana Professional Learning Collaborative proposes the Expanding Montana Rural Student Mental Health Supports initiative, which aims to extend mental health resources to underserved rural, tribal and frontier schools in Western Montana. This project will provide comprehensive school mental health services, including trauma informed care, wellness training, curriculum and teletherapy to establish safe school environments and ensure equitable access to mental health services. The project builds on the success of Montana Cares, which currently serves more than 14,000 students and their families. Expanding care in Montana will extend those services in western regions, addressing significant inequities in school-based mental health resources, and serving an additional 13,000 students and their school community families.
Billings Public Schools (BPS) is the largest school district in Montana and serves more than 16,000 students. In the past four years, Billings has seen an increase in violent crimes, especially youth violent crimes and increased youth gang activity. Information from surveys, incident reports and Billings Police Department data demonstrate the need for support in BPS middle schools. The goal of BPS is to address the critical need for violence prevention, positive youth resiliency skill building and promotion of a positive school climate through the Culture of Care program. The Culture of Care program will use funding to hire two, full-time specialists to work directly with students in the six middle schools and a full-time program leader to coordinate training, support program implementation and promote stakeholder engagement. The program aims to reduce violence by addressing conflict before it occurs or escalates.
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Two Additional Men Charged in Proactive Law Enforcement ActionRead the Press Release
CONCORD –Two additional men were charged and arrested for attempting to sex traffic a child at a Manchester hotel. On Saturday morning, charging documents were unsealed alleging three initial men were arrested in the same proactive federal and local law enforcement action the evening before, U.S. Attorney Jane E. Young announces.
On November 14 and November 15, 2024, in a proactive law enforcement operation, agents posted and monitored an advertisement on a website commonly used to advertise commercial sex acts.The advertisement contained images of what appeared to be two minor females, and a contact phone number. Law enforcement agents used it to communicate with potential sex buyers. Each defendant responded to the advertisement. Once at the hotel, each defendant met with an undercover agent and attempted to sex traffic one of the two fictitious children.
The following defendants have been charged by criminal complaint with attempted sex trafficking of a minor of whom the final two are newly announced:
- Stacey Ray Lancaster, age 46, Hudson, New Hampshire. Lancaster was arrested on Thursday, November 14, 2024, and is in federal custody. He will appear in federal court today, Monday, November 18, 2024, at 1:00 pm.
- Arthur Picanco, age 42, Bradford, Massachusetts. Picanco was arrested on Thursday, November 14, 2024, and he is in federal custody. He will appear in federal court today, Monday, November 18, 2024, at 3:00 pm.
- Ozeias Luiz Guilherme, age 38, Haverhill, Massachusetts. Guilherme was arrested on Thursday, November 14, 2024, and he is in federal custody. Guilherme will appear in federal court on Monday, November 18, 2024, at 2:30 pm.
- Sharath Chandra Bollu, age 23, Chelmsford, Massachusetts. Bollu was arrested on Friday, November 15, 2024, and he is in federal custody. He will appear in federal court later today.
- Koteshwara Raju Jonnagodda, age 24, Chelmsford, Lowell, Massachusetts. Jonnagodda was arrested on Friday, November 15, 2024, and he is in federal custody. He will appear in federal court later today.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Manchester Police Department, the New Hampshire Attorney General’s Office, and the New Hampshire Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Matthew Vicinanzo, Kasey Weiland, Anna Krasinski and Georgiana MacDonald are prosecuting the cases.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Community questions should be directed to the U.S. Attorney’s Public Voicemail Line at 603-230-2563.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Three New York Residents Sentenced for Fraud and Money Laundering Using Funds from Elderly Lottery Scam VictimsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Caron Pitter, age 48, Rohan Lyttle, age 49, and Charlene Marshall, age 44, were sentenced to prison and ordered to pay restitution for their roles in a Jamaican lottery scam targeting elderly U.S. victims. Rohan Lyttle received a sentence of 97 months, Caron Pitter received a sentence of 66 months, and Charlene Marshall received a sentence of 34 months in prison. Each defendant will serve a period of three years of supervised release following their release from prison. In addition, each defendant was ordered to pay a total of $245,147.98 in restitution to certain victims of the lottery scam.
The three defendants were found guilty of all charges against them following a two-week jury trial in November 2023. They were convicted of conspiracy to commit wire fraud and mail fraud and conspiracy to commit money laundering. In addition to the conspiracy charges against all defendants, Caron Pitter was convicted of several counts of mail fraud, and Rohan Lyttle was convicted of multiple counts of mail fraud, wire fraud, and interstate transportation of goods taken by fraud. A fourth defendant, Rohan Lytle, Jr., age 27, was charged with some of the same offenses, and he remains a fugitive.
According to United States Attorney Gerard M. Karam, the defendants, who are all lawful permanent residents of the United States originally from Jamaica, received funds from victims of a Jamaican lottery scam between 2017 and 2020. The evidence at trial showed that an individual based in Jamaica posing as a representative of Publisher’s Clearing House used “lead lists” containing the names and personal information of elderly Americans to contact potential victims. These individuals were contacted by phone and email and falsely told that they had won multimillion-dollar prizes through Publisher’s Clearing House but needed to prepay taxes and other fees in order to claim their supposed prizes. These elderly individuals were then directed to make payments in various ways, including by sending packages containing tens of thousands of U.S. dollars through the U.S. Postal Service, UPS, and Federal Express. In addition to cash packages sent by mail, the victims transmitted funds through bank-to-bank wire transfers, Zelle, MoneyGram, and Western Union. Victims were also defrauded in other ways. For instance, fraudsters gained access to victims’ credit cards and Amazon accounts and used those accounts to purchase goods, such as mobile phones and televisions. They also obtained debit cards for victims’ checking accounts and used those cards to make cash withdrawals at ATMs located in Jamaica.
Several victims testified at trial. They included a 79-year-old former resident of Mechanicsburg, Pennsylvania, a 71-year-old resident of Philadelphia, Pennsylvania, and a 91-year-old resident of Walterboro, South Carolina. Collectively, these victims lost over $1.1 million in connection with this fraud scheme.
All of these victims testified that they were contacted by a representative of Publisher’s Clearing House and directed to send money to claim their respective prizes. All of them sent money to the defendants charged in this case, as well as other locations. The victim from Mechanicsburg, PA and the victim from Philadelphia, PA collectively sent in excess of $200,000 in cash packages just to these defendants. In some cases, victims were also directed to receive funds from third parties that they didn’t know and send those funds to other individuals that they were led to believe were also Publisher’s Clearing House representatives.
Evidence at trial also showed that the defendants operated an auto body shop in Queens, New York known as RoCars Auto and an affiliated used car dealership based in Kingston, Jamaica known as Rolcam Company Limited. The defendants used the proceeds of the lottery scam to purchase and repair salvage vehicles from online vehicle auctions and ship those vehicles to Rolcam Company Limited for sale to customers in Jamaica.
The victim from Mechanicsburg, PA was also told that he had won a new Range Rover, in addition to his cash prize. He was directed to pay for and ship over $15,000 in parts from a Land Rover car dealership to RoCars Auto in Queens, New York, under the false pretense that his vehicle was in need of upgrades before it could be sent to him. The evidence at trial showed that the defendants used these parts to repair a 2019 Land Rover that they purchased from a salvage vehicle auction house. After repairing the vehicle, they shipped it from RoCars Auto to Rolcam Company Limited in Kingston, Jamaica, where it was sold to an unidentified buyer believed to be associated with the lottery scam.
The defendants used various means to disguise their receipt of victim funds, including distributing the money among each other so that the funds could be deposited in a variety of bank accounts and exchanged for cashier’s checks so that they would not appear in bank accounts at all. The defendants also regularly broke up larger amounts of cash into smaller amounts to make their deposits look smaller in size, which had the effect of evading banks’ reporting requirements for large cash transactions.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Ravi Romel Sharma and David C. Williams prosecuted the case.
If you or someone you know has been a victim of a lottery scam, help is available at the National Elder Fraud Hotline at 1-833-FRAUD-11 (372-8311). The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. You may also contact the U.S. Postal Inspection Service at 1-800-372-8347 or online at www.uspis.gov/report.
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Texas Woman Sentenced to 10 Years of Imprisonment in Connection with Murder-for-Hire PlotRead the Press Release
Memphis, TN – Ashley Grayson, 35, of Dallas, Texas was sentenced to ten years in federal prison for her conviction related to a murder-for-hire conspiracy that, if successful, would have resulted in the death of a Southaven, Mississippi woman. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentence today.
Ashley Grayson ran an internet-based business and gained notoriety from her online presence. In 2021, Grayson had a falling out with a woman from Southaven, Mississippi who operated an online business similar to Grayson’s. Grayson suspected the Southaven woman of creating fake online profiles that criticized Grayson and her business. The pair never met in person.
In August 2022, Grayson asked a Memphis woman, with whom she had worked in the past, to fly to Dallas to discuss a “business opportunity.” The Memphis woman and her husband went to Dallas in early September 2022 and met with Grayson and her husband. Grayson offered to pay the Memphis couple to kill three different people: the Southaven woman, Grayson’s former boyfriend, and a Texas woman who had recently made negative social media posts about Grayson. Each one of these killings had a value to Grayson of at least $20,000.
On September 10, 2022, the Memphis woman video-recorded a call to Grayson where Grayson confirmed that she wanted the Southaven woman killed as soon as possible and offered an extra $5,000 for the murder to be carried out in the next week.
Later, the Memphis couple sent Grayson a picture of police lights from an unrelated incident in Memphis under the guise that they had attempted to carry out Grayson’s murder-for-hire but were unsuccessful. They demanded $10,000 (half of the promised price) from Grayson for the attempt. The Memphis couple went to Dallas where they met with Grayson and her husband and received $10,000 from them for the “attempt".
In July 2023, a grand jury in the Western District of Tennessee returned a one-count indictment for Use of Interstate Facility in Commission of Murder-for-Hire in violation of 18 U.S.C. §1958 against both Ashley Grayson and her husband, Joshua Grayson. The case proceeded to trial in March 2024 where, after a week-long trial, a jury acquitted Joshua but found Ashley Grayson guilty as charged.
On October 31, 2024, United States District Court Judge Thomas L. Parker sentenced Ashley Grayson to 120 months, the maximum sentence of imprisonment available for a violation of 18 U.S.C. §1958, and three years of supervised release. There is no parole in the federal system.
Acting U.S. Attorney Fondren said, “This was a twenty-first century crime where online feuds and senseless rivalries bled into the real world. The defendant tried to hire someone to murder a woman over things that happened exclusively on the internet. Fortunately, no one was physically hurt in this case, but the victim and her family still felt a severe and emotional impact as the result of the defendant’s actions. The proactive response from the investigating agencies and our prosecutors prevented an even more serious crime from occurring.”
“This murder-for-hire plot underscores the strength of joint federal law enforcement efforts to ensure the safety of the citizens in our community,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office, Memphis Resident Agency. “This sentence demonstrates the commitment of the FBI and our partners to investigate violent crimes and root out those who seek to prey on the public.”
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Acting U.S. Attorney Fondren thanked Assistant United States Attorneys Neal Oldham and Bryce Phillips who prosecuted this case on the government’s behalf, as well as the law enforcement partners who investigated this case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Six now charged in human smuggling conspiracy resulting in deathRead the Press Release
LAREDO, Texas – Three more individuals are in custody for a human smuggling conspiracy that resulted in the July death of an undocumented individual, announced U.S. Attorney Alamdar S. Hamdani.
Mexican national David Alejandro Gomez Flores 28, and Laredo residents Dagoberto Mizzael Flores, 24, and Angel Misael Elias, 22, are expected to make their initial appearances before U.S. Magistrate Judge Christopher dos Santos at 9:30 a.m.
A federal grand jury returned the superseding indictment Oct. 29.
Previously charged and arrested were Guatemalan national Edy Ronaldo Lima Flores, 36, and Mexican nationals Cynthia Gabriela Muniz Carreon, 29, and Martha Angelica Limon Parra, 29.
The charges allege that on July 2, authorities learned of a group of undocumented aliens loading into a Ford-150 near a ranch in Laredo. They allegedly began pursuing the vehicle which suddenly came to a stop before all occupants fled into the brush. Law enforcement was able to apprehend one female, identified as an undocumented individual from Guatemala, according to the charges.
They also located the body of a deceased male in the brush, according to the criminal complaint originally filed in the case. Upon further investigation, authorities were allegedly able to identify him as an undocumented Guatemalan national who was part of the earlier bailout.
The charges further allege they recovered a cell phone in the victim’s possession which showed direct communications with both Lima Flores and Carreon in the hours leading up to his death. The victim had allegedly reported that a rancher had seen them, and that he was hiding the in brush.
Authorities also discovered ledgers and communications in Parra’s cell phone that linked back to the same human smuggling organization involved in the July 2 bailout event, according to the charges. The communications allegedly dated back to April 2024 and referenced other human smuggling events, one of which resulted in serious bodily injury to a separate individual.
All six are charged with conspiracy to smuggle an undocumented alien, placing life in jeopardy, causing serious bodily injury and resulting in death and two substantive counts. They face up to life in federal prison and the possibility of death as well as a possible $250,000 fine, upon conviction.
Homeland Security Investigations (including the Laredo Gang Activity and Trafficking Enforcement Unit), Border Patrol, Laredo Police Department (including the Texas Anti-Gang Unit), Texas Department of Public Safety, Encinal Police Department and Customs and Border Protection Air and Marine Operations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
This case is also the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border including the Southern District of California, districts of Arizona and New Mexico and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Adminstration and other partners. To date, JTFA’s work has resulted in over 325 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling, more than 270 U.S. convictions, more than 210 significant jail sentences imposed and forfeitures of substantial assets.
Assistant U.S. Attorney and JTFA detailee Jennifer Day is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Seven Defendants Sentenced to Prison for Their Roles in Nationwide “Felony Lane Gang” Fraud and Identity Theft SchemeRead the Press Release
MOBILE, AL – Seven defendants from Florida were sentenced for their roles in an organized fraud and identity theft scheme spanning multiple states. One of the leaders of the scheme was sentenced to 84 months in federal prison.
According to court documents, Dominique Lamar Campbell, 43, of Miami, Florida, was one of the leaders of a ring of individuals from south Florida who participated in a widespread fraud and identity theft scheme known as “Felony Lane Gang.” Campbell recruited various codefendants to participate in the scheme, providing them with counterfeited and forged checks, false identification documents, fake credit cards, and identity information stolen from the U.S. mail. Campbell’s team of fraudsters would then travel across the country conducting numerous fraudulent transactions at banks and credit unions. The scheme occurred from at least 2017 to 2023 and victimized dozens of people in more than 20 states.
Several fraudulent transactions occurred in the Southern District of Alabama. For example, on February 28, 2023, two of Campbell’s codefendants orchestrated a series of fraudulent check transactions at bank branches in the Mobile area, netting thousands of dollars in fraudulent proceeds. The next day, police in Kentucky arrested the codefendants during a traffic stop. Police seized bulk cash, fake identification documents, several forged checks, and stolen identity information during the traffic stop. Campbell’s fingerprints were on various items of evidence in the codefendants’ car.
Later, in June 2023, police again arrested Campbell’s codefendants after they had committed several additional fraudulent transactions at bank branches in Mobile and Mississippi. Police seized cell phones from the codefendants containing extensive text messages with Campbell coordinating the fraud scheme. In those messages, Campbell referenced fraudulent checks and identification documents that he sent via FedEx from Miami to his codefendants at various locations throughout the United States to be used in furtherance of the scheme.
In addition to the 84-month prison term, United States District Judge Kristi K. DuBose ordered Campbell to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge DuBose ordered Campbell to pay $87,308.79 in victim restitution and $200 in special assessments, and forfeited $14,336.64 to the United States.
For their roles in the scheme, the court sentenced Campbell’s codefendants as follows: Terrill Quinte Alexander (101 months’ imprisonment); Francisco Emile Gabriel Barranco (61 months’ imprisonment); Allen Russell Brookins (94 months’ imprisonment); Francisco Yuediel Estevez (56 months’ imprisonment); Crystal Marie Mitchell (63 months’ imprisonment); and Kimberly Diane Sutter (30 months’ imprisonment). The court also ordered each of those defendants to serve supervised release terms and pay restitution and special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service investigated the case. Several law enforcement agencies across the country substantially assisted the investigation, including the Alabama State Bureau of Investigation; the Andalusia Police Department (Alabama); the Mobile Police Department (Alabama); the Bradenton Police Department (Florida); the Plantation Police Department (Florida); the Sarasota County Sheriff’s Office (Florida); the Johnson County Sheriff’s Office (Kansas); the Lawrence Police Department (Kansas); the Kentucky State Police; the Biloxi Police Department (Mississippi); the Forrest County Sheriff’s Office (Mississippi); the Hattiesburg Police Department (Mississippi); the Jones County Sheriff’s Office (Mississippi); the Pearl Police Department (Mississippi); the Blue Ash Police Department (Ohio); the Montgomery Police Department (Ohio); the Apple Valley Police Department (Minnesota); and the Roanoke County Police Department (Virginia).
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Seven Defendants Charged in Health Care Fraud and Kickback Scheme Involving “Foot Baths”Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the following individuals were indicted by a federal grand jury on charges of conspiracy to commit health care fraud and multiple counts of health care fraud:
- Frank Suess (a.k.a., Franz P. Suess), age 78, of Wellington, Florida;
- Luis Salgado, age 50, of Naperville, Illinois and Davenport, Florida;
- Melissa Driscoll, age 43, of East Stroudsburg, Pennsylvania;
- Victor Velazco, age 35, of Loxahatchee, Florida;
- Warren Pizik, age 68, of Davie, Florida;
- Dave Singh, age 37, of Pembroke Pines, Florida; and
- Diana Castro, age 53, of Brooklyn, New York.
Suess, Salgado, Driscoll, Velazco, and Pizik were also charged with conspiracy to violate the federal anti-kickback statute and with a number of individual violations of the same law. Finally, Suess, Driscoll, and Velazco were charged with conspiracy to obstruct a criminal investigation into health care offenses and falsification of records and information with the intent to obstruct a federal grand jury investigation, and with individual violations of the same laws.
According to United States Attorney Gerard M. Karam, the indictment alleges that between 2019 and 2020, all seven defendants conspired to commit health care fraud through an arrangement designed to bill individuals’ health insurances for medically unnecessary prescription drug combinations known as “foot baths.” Foot baths were purported to be an antibiotic and antifungal “foot soak” treatment that patients were supposed to mix together and dissolve in a warm water solution, using a plastic foot tub that was sometimes shipped to them. The combinations of prescription drugs contained in foot baths varied over time, but they generally included high-cost drugs that were not intended for or approved for use in a foot bath, including vancomycin capsules, tobramycin vials, calcipotriene cream, moxifloxacin eye drops, clindamycin phosphate solution, and ketoconazole cream. Vancomycin capsules, for example, were supposed to be prescribed to patients to treat particular conditions, such as MRSA and a type of diarrhea. Instead, foot bath recipients were told to break up the capsules on their own and dissolve the contents in the solution, which was not an approved method of taking the medication. Tobramycin vials were supposed to be used by licensed and trained healthcare professionals to administer injections to patients to treat certain bacterial infections. With foot baths, patients were instead inspected to empty the tobramycin vials into the solution, which was again not an approved method. The cost associated with such drugs was very high. For instance, the insurance for P.B., an individual who was allegedly prescribed foot baths without her consent, was billed $43,209.99 for a one-month supply of tobramycin vials and $12,476.54 for a one-month supply of vancomycin capsules. P.B.’s insurance ultimately paid approximately $4,271.04 for four total insurance claims.
Many of these allegedly fraudulent foot bath orders were routed through Sterling Pharmacy, a pharmacy located in Jermyn, Pennsylvania, in the Middle District of Pennsylvania. Melissa Driscoll purchased Sterling Pharmacy in March 2018 using funds that she obtained from Frank Suess, who, along with Victor Velazco, operated a group of companies located at the same address in Wellington, Florida. Sterling Pharmacy was one of a group of pharmacies used to carry out this alleged scheme. In addition, the defendants used unnamed pharmacies located in Texas and Florida as well.
Suess and Velazco allegedly used other people to become the owners of these pharmacies on paper in order to conceal their involvement in the business affairs of those pharmacies. Suess and Velazco then used those pharmacies to generate profits by steering high-cost prescription drug mail orders to those pharmacies. When the pharmacies were then investigated for those prescribing practices, Frank Suess, Victor Velazco, and Melissa Driscoll then used various tactics to conceal Suess and Velazco’s use of those the pharmacies to carry out fraud.
The indictment alleges that Melissa Driscoll made various misrepresentations over time to conceal how Sterling Pharmacy was doing business, including concealing the pharmacy’s mail order business from suppliers and falsely claiming that the pharmacy had a practice of verifying patient-prescriber relationships before filling prescription orders. The indictment also alleges that Suess, Velazco, and Driscoll engaged in a pattern of conduct to obstruct the government’s investigation into Sterling Pharmacy and to create false business records in order to hide the fraudulent scheme from the government. Specifically, Sterling Pharmacy, through Melissa Driscoll, withheld records that the pharmacy was ordered to provide in response to a federal grand jury subpoena. In addition, Suess, Velazco, and Driscoll created false, backdated documents that were produced to the government via an unnamed attorney who represented them during the relevant time period. These documents made it appear that Sterling Pharmacy had a legitimate agreement with a company known as MedX Marketing Solutions, which was, on paper, supposed to be compensated on an hourly basis for marketing Sterling Pharmacy’s offerings.
In reality, Sterling Pharmacy allegedly paid MedX kickbacks for the referral of signed foot-bath order forms for individual beneficiaries. These foot-bath orders were generated using templated forms that were provided to patient recruiters by Luis Salgado, the CEO of MedX. These patient recruiters included a diabetic shoe salesman working at a shopping mall in the area of Scranton, PA, as well as a group of individuals who set up “health fairs” in New York. As a result of health fairs and associated patient recruitment activity in New York, Sterling Pharmacy received hundreds of foot-bath prescription order forms approved by Diana Castro, a podiatrist based in Brooklyn. Castro attended multiple health fairs, where she authorized foot bath orders despite their lack of medical necessity. She was paid for these appearances in cash.
A large number of foot-bath orders were processed using the medical identification number of a physician with a name similar to that of Diana Castro. The use of this other medical provider’s National Provider Identifier (“NPI”), without the provider’s knowledge, was accomplished using a signature stamp containing Diana Castro’s name and the other physician’s NPI. This fraudulent activity led to hundreds of foot bath claims being billed and paid out under that provider’s NPI between about December 2019 and the middle of 2020. One health insurance fund paid approximately $685,000 just for these claims.
Warren Pizik and Dave Singh allegedly assisted Luis Salgado in the marketing of Sterling Pharmacy’s mail order business and in setting up out-of-state pharmacy licenses. Pizik and Singh also communicated with Salgado, Suess, and Velazco throughout the relevant time period via email and phone. This group regularly exchanged emails with one another, including ones in which patients complained about not wanting foot baths, not knowing Diana Castro or having ever seen a foot doctor, having their insurance “charged a lot of money,” being “freaked out” because there were no instructions regarding what to do with the medications, and being “scared of the box” of foot baths because it contained “such a huge amount of meds.” At times, Driscoll also communicated by email, writing to Velazco to report, “These insurance companies hate foot baths” after receiving “another” payment reversal from an insurance company.
It is alleged that Melissa Driscoll, through Sterling Pharmacy, paid MedX $312,192.28 in kickbacks and paid Warren Pizik another $22,000 in kickbacks for MedX referrals. Melissa Driscoll, through Sterling Pharmacy, allegedly paid Frank Suess and Victor Velazco’s companies more than $1 million in additional kickback payments.
The indictment contains forfeiture allegations seeking approximately $1.3 million as a money judgment from the defendants. The United States is also seeking forfeiture of the property used by Frank Suess and Victor Velazco to carry out the scheme, which was an office building in Wellington, Florida where their various businesses were located. Finally, the United States is seeking forfeiture of a residential property located in Naperville, Illinois that Luis Salgado purchased using proceeds of the scheme.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for conspiracy to commit health care fraud and for individual violations of the health care fraud statute and the Anti-Kickback Statute is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine, for each offense. The maximum penalty under federal law for conspiracy to violate the Anti-Kickback Statute, for conspiracy to obstruct a health care investigation and falsify records in an investigation, and for obstructing a health care investigation is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine, again for each offense. The maximum penalty under federal law falsifying records in an investigation is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Scotia Man Pleads Guilty to Groping a Nursing Student at the Albany VA Medical CenterRead the Press Release
ALBANY, NEW YORK – Danning Lake, age 86, of Scotia, New York, pled guilty today to abusive sexual contact.
United States Attorney Carla B. Freedman; Thomas Gibbons, Chief of the Department of Veterans Affairs Police at Stratton VA Medical Center; and Special Agent in Charge Christopher F. Algieri of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General, made the announcement.
Lake admitted that on February 29, 2024, he grabbed the breast of a nursing student as she was giving him medical care. Lake then asked the student nurse, “did you like that?” and told her “they feel nice.” When the VA Police Officer spoke to Lake, he said that he would do the same thing again if he had the opportunity. Lake’s mental status was not altered by medication, age, or illness. He groped the nursing student for his own sexual gratification and without her consent.
When he is sentenced on March 20, 2025, Lake faces up to 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. As a result of this conviction, Lake will also have to register as a sex offender.
The Department of Veterans Affairs Police Department and Office of Inspector General investigated the case, which Assistant U.S. Attorneys Jonathan S. Reiner and Tamara B. Thomson are prosecuting.
St. Croix Women Pleads Guilty to $372,000.00 Embezzlement SchemeRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Nicole Morales, 48, of Altadena, CA, and native of St. Croix, pleaded guilty before Magistrate Judge Emile A. Henderson III, to three counts of Wire Fraud. The sentencing in this matter is scheduled for March 19, 2025, where Morales faces a maximum sentence of up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court records, on November 10, 2015, Morales began working as the Office Manager at Nichols, Newman, Logan, Grey, and Lockwood, P.C. in St. Croix, where her duties included processing payroll through Banco Popular. Beginning on December 31, 2015, Morales began fraudulently inflating her payroll using QuickBooks accounting software. Thereafter, Morales wired unauthorized funds from her employer’s Banco Popular account into three separate personal bank accounts owned by Morales. After transferring the funds, Morales would change the inflated amounts in QuickBooks to reflect her correct income and payroll figures. Morales would later generate reports in QuickBooks with the correct payroll figures which were approved by her employer. Morales continued this conduct until January 11, 2019. In total, Morales embezzled $372,496.34 from her employer.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Daniel H. Huston.
St. Croix Man Pleads Guilty After Threatening to Murder Federal AgentsRead the Press Release
St. Croix, VI - United States Attorney Delia L. Smith announced today that a Jamoi Weekes, 30, of St. Croix, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to Influencing Federal Officials by Threats. Weekes’ sentencing is scheduled for March 19, 2025, where he faces a maximum sentence of 10 years of imprisonment. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on August 31, 2024, Weekes attempted to board a flight at the Henry E. Rohlsen Airport in St. Croix. Weekes was referred to Customs and Border Protection for a secondary inspection before boarding his flight. Weekes then became extremely irate and combative and began threatening to murder and retaliate against the officers if he ever saw them again. Weekes was then determined to be unsuitable to board his flight and was ordered to leave the airport. While exiting the airport, Weekes encountered two Virgin Islands Port Authority officers who he also threatened to murder. Rather than leave the airport, Weekes then followed two Customs and Border Protection officers from the airport terminal to the parking lot and again threatened to murder the officers.
The case was investigated by the Federal Bureau of Investigation, Customs and Border Protection and Virgin Islands Port Authority and is being prosecuted by Assistant United States Attorney Daniel Huston.
Rutland Man Sentenced to 190 Months in Firearm and Drug Trafficking CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on Friday, November 15, 2024, Lawrence Jackson, (a/k/a “Boo-Bee”), 53, of Rutland, Vermont, was sentenced by Chief United States District Judge Christina Reiss to a term of 190 months’ imprisonment to be followed by a 5-year term of supervised release. Jackson previously was convicted by a jury on April 17, 2024 of seven drug trafficking and firearm offenses after a seven-day trial.
According to court records and evidence admitted at trial, Jackson was the leader and organizer of a drug trafficking operation in the Rutland area that distributed over 3.5 kilograms of cocaine between December 2020 and November 2021. Jackson distributed large quantities of powder cocaine and cocaine base from four Rutland-area hotels and motels, as well as private residences. Jackson personally employed violence and intimidation to further his drug trafficking activities and directed others to do so. This violence included pistol-whippings and assaults as retribution for drug debts and personal affronts. Jackson armed himself and his coconspirators with firearms, including his favorite weapon, a Taurus “The Judge” revolver. Evidence admitted at sentencing established that, in addition to his drug and firearm offenses, Jackson sexually assaulted women and engaged in sex trafficking in and around Rutland.
United States Attorney Nikolas P. Kerest commended the collaborative investigative work of Homeland Security Investigations, the Rutland City Police Department, and the Vermont Drug Task Force. U.S. Attorney Kerest also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vermont State Police for their investigative assistance.
The case was prosecuted by Assistant U.S. Attorneys Jonathan A. Ophardt and Nicole P. Cate. Jackson represented himself at trial and sentencing, and Robert Behrens, Esq. served as standby counsel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Postal Employee Admits Stealing Rebates from MailRead the Press Release
ST. LOUIS – A former U.S. Postal Service mail carrier on Monday admitted stealing rebates from mail intended for residents of north-central Missouri.
Dawn Dowling, 59, pleaded guilty in U.S. District Court in St. Louis to one felony count of embezzlement of mail by a Postal Service employee. Dowling admitted that from July 2023 to August 2023, she took rebates issued by the home improvement store Menards from the mail. Dowling was a rural carrier associate assigned to routes in central Missouri including the areas of Moberly, Huntsville, Cairo, Higbee, Jacksonville and Excello.
In all, Dowling took a total of at least $1,131 in rebates from at least 20 customers. She then spent them or caused them to be spent in Menards stores in Missouri and Illinois.
Dowling is scheduled to be sentenced on March 4, 2025. The charge is punishable by up to five years in prison, a $250,000 fine, or both.
The U.S. Postal Service – Office of Inspector General investigated the case. Assistant U.S. Attorney Justin Ladendorf is prosecuting the case.
Phobos Ransomware Administrator Extradited from South Korea to Face Cybercrime ChargesRead the Press Release
The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on Nov. 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.
“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”
“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”
“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The U.S. Attorney’s Office for the District of Maryland is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”
“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”
As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.
As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”
Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.
After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.
Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to international judicial and law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.
Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.
Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Phobos Ransomware Administrator Extradited from South Korea to Face Cybercrime ChargesRead the Press Release
Baltimore, Maryland – The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on November 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.
“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The Maryland U.S. Attorney’s Office is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”
“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”
“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”
“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”
“Ransomware not only disrupts lives and businesses, but it also threatens the health, safety and security of innocent Americans and others worldwide,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “I am grateful for the dedication and thorough work of our FBI Baltimore cybercrime squad who worked diligently to bring Ptitysn to justice. Our valuable local and international partnerships played a pivotal role in successfully arresting and extraditing him. We will continue to prioritize the partnerships necessary to stop ransomware actors and hold them accountable for their crimes.”
As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.
As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”
Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.
After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.
Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.
Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.
Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Pakistani National Muhammad Asif Hafeez Pleads Guilty to Drug-Trafficking ChargesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MUHAMMAD ASIF HAFEEZ, a/k/a “Sultan,” pled guilty in Manhattan federal court to conspiring to import heroin, methamphetamine, and hashish into the United States. HAFEEZ was provisionally arrested in London, United Kingdom, on August 25, 2017, and extradited to the U.S. on May 12, 2023. The defendant pled guilty today before U.S. Magistrate Judge Stewart D. Aaron and will be sentenced by U.S. District Judge Victor Marrero.
U.S. Attorney Damian Williams said: “For more than two decades, Muhammad Asif Hafeez played a leading role in a sophisticated international drug trafficking network that was responsible for manufacturing and distributing ton quantities of dangerous narcotics to the U.S. and throughout the world. Today’s plea ensures that one of the world’s most prolific drug traffickers will be held accountable for his crimes. I thank our partners at the DEA’s Special Operations Division for their incredible work and dedication to this case, which has taken years to investigate and prosecute, and thank the career prosecutors of this Office who remained dogged in their pursuit of the defendant and his co-conspirators.”
According to the allegations contained in indictments charging HAFEEZ and his co-defendants and other public statements and filings:
From at least in or about 2013 through the date of his provisional arrest in 2017, HAFEEZ conspired with his co-defendants, Baktash Akasha Abdalla, Ibrahim Akasha Abdalla, Gulam Hussein, and Vijaygiri Anandgiri Goswami to import heroin into the U.S. Baktash Akasha Abdalla was the leader of an organized crime family in Kenya (the “Akasha Organization”), which was responsible for the production and distribution of ton quantities of narcotics within Kenya and throughout Africa and maintained a network used to distribute narcotics for importation into the U.S. For years, HAFEEZ served as one of the primary suppliers of narcotics to the Akasha Organization, including to Bakash Akasha Abdalla’s father, who helmed the Akasha Organization before he was murdered in the Netherlands in 2000. During this investigation, in October 2014, Ibrahim Akasha Abdalla delivered a one-kilogram heroin sample, on behalf of HAFEEZ and the Akasha Organization, to confidential sources acting at the direction of the Drug Enforcement Administration (“DEA”) in Nairobi, and, in early November 2014, Ibrahim Akasha Abdalla delivered 98 additional kilograms of heroin to the confidential sources. These samples were just a small portion of the narcotics that HAFEEZ distributed with the Akasha Organization; indeed, during this investigation, Baktash Akasha Abdalla boasted in a recorded meeting that HAFEEZ had distributed “tons” of narcotics with his father and the Akasha Organization. Baktash Akasha, Ibrahim Akasha, and Goswami were provisionally arrested by Kenyan authorities in November 2014 and extradited to the U.S. in 2017.
Further, from at least in or about 1993 through the date of his provisional arrest in 2017, HAFEEZ also conspired to import hashish and methamphetamine into the U.S. In connection with this conspiracy, HAFEEZ and co-conspirators transported multi-ton shipments of hashish to Europe and North America. Between 2013 and 2016, HAFEEZ and certain co-conspirators also sought to establish a methamphetamine-production facility in Mozambique, which was intended to produce methamphetamine for sale in the U.S., Europe, and Australia. HAFEEZ and his co-conspirators abandoned their plan after law enforcement authorities seized approximately 18 tons of ephedrine from a factory in Solapur, India, including several tons of ephedrine that HAFEEZ and his co-conspirators planned to use as a precursor chemical to manufacture methamphetamine in Mozambique.
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HAFEEZ, 66, a Pakistani national residing in, among other places, London, pled guilty to conspiring to manufacture and distribute heroin for importation into the U.S. and conspiring to manufacture and distribute methamphetamine and hashish for importation into the U.S. Each of these offenses carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Baktash Akasha Abdallah, 47, and Ibrahim Akasha Abdallah, 36, previously pled guilty to conspiring to import and importing heroin and methamphetamine into the U.S., conspiring to use and carry machineguns and destructive devices in connection with their drug-trafficking crimes, and obstructing justice by paying bribes to Kenyan officials in an effort to avoid being extradited to the U.S. Baktash Akasha Abdallah was sentenced on August 16, 2018, to 25 years in prison, and Ibrahim Akasha Abdallah was sentenced on January 10, 2020, to 23 years in prison.
Mr. Williams praised the outstanding efforts of the Special Operations Division of the DEA, Bilateral Investigations Unit. Mr. Williams also thanked the United Kingdom authorities, the DEA Dubai Country Office, the DEA Nairobi Country Office, the DEA Pretoria Country Office, the DEA New Delhi Country Office, and the U.S. Department of Justice’s Office of International Affairs and London Attaché.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jane Chong and Michael D. Lockard are in charge of the prosecution.
Orlando Man Sentenced to More Than Six Years for Fentanyl and Firearm OffensesRead the Press Release
Orlando, Florida – Senior U.S. District Judge Roy B. Dalton, Jr. has sentenced Sebastian Gabriel Lugo-Lugo (20, Orlando) to six years and one day in federal prison for distributing fentanyl and possessing a firearm in furtherance of drug trafficking. Lugo-Lugo pled guilty on July 23, 2024.
According to court documents, an undercover agent purchased marijuana and counterfeit prescription pills containing fentanyl from Lugo-Lugo multiple times throughout 2023 and 2024. Some of the counterfeit pills were also found to contain several other additives including p-Flurofentanyl (a fentanyl analogue) and xylazine (a veterinary sedative). During many of those deals, Lugo-Lugo possessed a firearm. Additionally, during one deal, Lugo-Lugo sold the undercover agent a firearm in addition to the fake fentanyl pills.
This case was investigated by the Drug Enforcement Administration and the Seminole County Sherriff’s Office City County Investigative Bureau, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Megan Testerman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Ohio Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Emariel Kanay Tyler, 20, of Akron, Ohio, pleaded guilty today to use of a communication facility to facilitate a drug trafficking offense.
According to court documents and statements made in court, on March 29, 2023, Tyler traveled from a Charleston apartment to a residence in Wyoming County with quantities of methamphetamine and fentanyl. Tyler admitted that she used her cell phone to arrange the sale of the fentanyl to someone at the residence, discussing the meeting location and the prices to be charged for the fentanyl. Tyler exchanged the fentanyl for payment at the meeting location, but further admitted that she returned to Charleston with both the money and the fentanyl.
Tyler is scheduled to be sentenced on February 26, 2025, and faces a maximum penalty of four years in prison, up to one year of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department.
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-186.
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New Jersey Woman Sentenced to 30 Months of Imprisonment for Drug ConspiracyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on November 18, 2024, Hassanah Delia, 38, of Burlington, New Jersey, was sentenced by Chief United States District Judge Christina Reiss to a term of 30 months’ imprisonment to be followed by a six-year term of supervised release. Delia previously pleaded guilty to conspiring to distribute cocaine base and fentanyl in the District of Vermont in July and August 2023.
According to court records, in late July and early August 2023, Hassanah Delia and her co-conspirators occupied the Morrisville, Vermont residence of an individual who suffers from a degenerative illness. Delia occupied the individual's home for approximately a week and a half. Delia and her co-conspirators worked together to sell cocaine base and fentanyl from the house. Inside of the residence, Delia and her co-conspirators also cooked cocaine into cocaine base, and packaged drugs including fentanyl for street-level distribution. Drug customers came to the residence and Delia and others distributed drugs to those customers in exchange for money.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Morristown Police Department, the Vermont State Police Drug Task Force, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Delia was represented by Mark Kaplan, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
New Jersey Postmaster Indicted on Civil Rights Charge for Sexual Assault of Postal Service EmployeeRead the Press Release
A two-count indictment was unsealed today charging a U.S. Postal Service Postmaster with a federal civil rights violation for sexually assaulting a victim while acting under color of law and assaulting the victim, a federal employee, during the course of her official duties.
According to the indictment, on Nov. 26, 2022, in Teaneck, New Jersey, Gabriel Ekram Pagabe Ali, 47, sexually assaulted the victim, an employee of the U.S. Postal Service while on duty as a Postmaster at the U.S. Post Office in Teaneck.
Count One of the indictment charges Ali with depriving the victim of her right to bodily integrity when he sexually assaulted the victim. Count Two of the indictment charges Ali with forcibly assaulting the victim while she was engaged in official duties.
If convicted, Ali faces a maximum penalty of three years in prison for the civil rights count and eight years in prison for the assault count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General made the announcement.
The U.S. Postal Service Office of Inspector General is investigating the case.
Trial Attorneys Laura Gilson and Chloe Neely of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Joseph Gribko and Javon Henry for the District of New Jersey are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Jersey Postmaster Indicted for Sexual AssaultRead the Press Release
NEWARK, N.J. – U.S. Postal Service postmaster was arrested today on a federal civil rights violation for sexually assaulting a victim while acting under color of law and assaulting the victim, a federal employee, during the course of her official duties, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced.
Gabriel Ekram Pagabe Ali, 47, is charged by indictment with sexually assaulting the victim, an employee of the U.S. Postal Service while on duty as a postmaster at the U.S. Post Office in Teaneck.
According to the indictment:
On Nov. 26, 2022, in Teaneck, New Jersey, Ali deprived the victim of her right to bodily integrity when he sexually assaulted her. Count Two of the indictment charges Ali with forcibly assaulting the victim while she was engaged in official duties.
If convicted, Ali faces a maximum penalty of three years in prison for the civil rights count and eight years in prison for the assault count.
The U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, is investigating the case.
Assistant U.S. Attorneys Joseph Gribko and Javon Henry for the District of New Jersey and Trial Attorneys Laura Gilson and Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.
The charges and allegations contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
ali.indictment.pdf
Murfreesboro Man Sentenced to 32 Years for Multiple Armed Robberies in Middle TennesseeRead the Press Release
NASHVILLE – Frederick Eugene Carney, 34, of Murfreesboro, Tennessee, was sentenced on Friday to 32 years in federal prison for robbery, bank robbery, illegally possessing ammunition, and brandishing or discharging a firearm in furtherance of a crime of violence, announced Acting United States Attorney Thomas J. Jaworski for the Middle District of Tennessee.
The convictions in this case relate to the armed robberies of two Cash Express businesses in Ardmore, Tenn., and Greenbrier, Tenn., as well as armed robberies of the Regions Bank in Smyrna, Tenn., and the First Horizon Bank on Whites Creek Pike in Nashville. During the armed robbery at the First Horizons Bank, Carney fired one round that struck a door. This crime spree occurred between March 24 and May 2, 2022.
William John Ewing, III, 27, of Nashville, was found guilty of the bank robbery at the Regions Bank, as well as brandishing a firearm during a crime of violence. Ewing will be sentenced on January 23, 2025, and he could be sentenced from 7 years to life in federal prison. During the armed robbery at the Regions Bank in Smyrna, Carney and Ewing stole over $15,000 in currency.
“This sentence sends another strong message to those who commit violent crimes in our district that we will prosecute these cases to the fullest extent of the law,” said Acting United States Attorney Thomas J. Jaworski. “The community will be now safe from this defendant for decades. Our office is thankful for partnerships with multiple law enforcement agencies throughout middle Tennessee and northern Alabama that made this result possible.”
This case was investigated by the Federal Bureau of Investigation, Nashville Field Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Metropolitan Nashville Police Department; the Murfreesboro Police Department; the Ardmore Police Department; the Greenbrier Police Department; the Smyrna Police Department; and the Moulton, Alabama Police Department. Assistant U.S. Attorney Joseph P. Montminy prosecuted the case.
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Multi-Time Convicted Felon Indicted for Possessing A Firearm and AmmunitionRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Mickey Colangelo, Jr. (44, Fort Myers) with possession of a firearm and ammunition by a convicted felon. If convicted, Colangelo faces a penalty of 15 years, up to life, in federal prison. The indictment also notifies Colangelo that the United States intends to forfeit a firearm and ammunition which are alleged to be traceable to proceeds of the offense.
According to a criminal complaint filed on October 31, 2024, Colangelo was encountered by a Lee County Sheriff’s Office deputy in North Fort Myers on October 30, 2024, with a loaded pistol in his backpack. According to the indictment, Colangelo has been convicted of nine felony offenses, including six convictions for robbery related charges. As a result of his lengthy criminal record, which includes at least three previous convictions for violent felonies, Colangelo qualifies for enhanced sentencing under the Armed Career Criminal Act.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mark Morgan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Mexican National Indicted for Illegal Re-entryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SANTIAGO PUENTE-GARCIA (“PUENTE-GARCIA”), age 25, a native of Mexico, was indicted on November 15, 2024 for illegal reentry by a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, PUENTE-GARCIA was previously removed from the United States on February 4, 2022. He was later found in the Eastern District of Louisiana on October 29, 2024 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter the country.
If convicted, PUENTE-GARCIA faces a maximum term of imprisonment of two (2) years, a fine of up to $250,000, up to one year of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement, Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.
Mead Man Sentenced to Nearly 4 Years in Federal Prison for Stealing over $750,000 from COVID Relief ProgramsRead the Press Release
Spokane, Washington - United States Attorney Vanessa R. Waldref announced that United States District Judge Thomas O. Rice sentenced Antonio Feliciano Crawford, age 55, of Mead, Washington, to 45 months in federal prison on charges of bank fraud. Judge Rice also imposed 5 years of supervised release, restitution of $203,347.08, and forfeiture of $173,329.00 in cash seized during a search of Crawford’s home, and $13,642.00 in cash Crawford provided in lieu of forfeiture of his vehicle.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One program, the Paycheck Protection Program (PPP) program, offered forgivable loans to eligible small businesses in order to retain or rehire employees who lost their jobs, or were in danger of doing so, due to the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which has not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
According to court documents and information presented at the sentencing hearing, Crawford filed false and fraudulent PPP and EIDL applications during 2020 and 2021 on behalf of four companies purportedly owned and operated by Crawford: Tann LLC, Crawford Entertainment, A&M Personal Training LLC, and a sole proprietorship doing business as “Antonio Crawford.” Crawford submitted false and fraudulent information and documentation, including fraudulent and fictitious purported tax returns for the companies, in order to obtain for himself at least $186,971 in PPP and EIDL funding for which he was not eligible.
Crawford also facilitated the submission of false and fraudulent PPP and EIDL applications for numerous other individuals as well. During a search of Crawford’s home, law enforcement seized a laptop that contained falsified tax documentation and applications for other persons. Investigation of those fraudulent documents identified an additional twenty-four PPP and EIDL payments, totaling $565,808.33. Investigators also identified over $20,000 in payments those individuals made to Crawford following receipt of the funds. In total, Crawford caused a loss of over $750,000 to the PPP and EIDL programs.
“Fighting fraud strengthens our communities by protecting our small and local businesses and hard-working people who play by the rules. Mr. Crawford took advantage of programs designed to help businesses struggling during a global pandemic and used the funds to enrich himself and others,” said U.S. Attorney Waldref. “My office has built strong relationships with our law enforcement partners through our COVID Fraud Strike Force to vigorously prosecute those who abuse and misuse pandemic relief funding.”
“When our nation and many employers were at their most desperate, Mr. Crawford defrauded those programs providing a lifeline to struggling businesses,” said Acting Special Agent in Charge Matthew Murphy, who oversees HSI operations in the Pacific Northwest. “HSI will always work with our partners to prevent these types of schemes, safeguard our communities, and ensure relief funds never end up in the hands of criminals.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, Department of Labor (DOL), and others.
This case was investigated by the HSI Spokane Field Office, TIGTA, SBA OIG, DOL, and the Department of Homeland Security OIG. The case is being prosecuted by Assistant United States Attorneys Dan Fruchter, Jeremy J. Kelley, and Devin C. Curda.
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McCurtain County Resident Pleads Guilty to Drug DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Herman Will Sanders, Jr., age 40, of Broken Bow, Oklahoma, entered a guilty plea to Distribution of Methamphetamine.
The Indictment alleged that on June 5, 2023, Sanders knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Drug Enforcement Administration.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Sanders will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Richard J. Lorenz represented the United States.
Massachusetts Man Pleads Guilty to Obstructing Federal Hate Crime InvestigationRead the Press Release
BOSTON – A Massachusetts man, who was extradited from Stockholm, Sweden, pleaded guilty today to obstructing an investigation of fires set at Jewish institutions in Arlington, Needham and Chelsea, Mass., in May 2019.
Alexander Giannakakis, 37, formerly of Quincy, Mass., pleaded guilty to concealing records in a federal investigation; tampering with documents and objects; and tampering with an official proceeding. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 11, 2025. In February 2022, Giannakakis was indicted by a federal grand jury. In February 2024 he was extradited to the United States from Sweden.
“This defendant obstructed justice about hate crimes directed at Jewish people living in greater Boston. These attempted arsons at Jewish houses of worship and senior living facilities sent ripples of fear throughout the region. We must be vigilant in holding accountable every single person who engages in or facilitates acts of hate like this. Alexander Giannakakis chose to destroy evidence and conceal these hate crimes and for deciding to stand on the side of acts of vile Antisemitism, he now stands convicted and awaiting sentencing,” said Acting United States Attorney Joshua S. Levy. “It is incumbent on every person in the District of Massachusetts to call out acts of racism and bigotry, and to report hate crimes.”
“Today’s conviction shows that there will be serious ramifications for anyone who seeks to obstruct an FBI investigation into an act of domestic terrorism,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Fire is a dangerous and indiscriminate weapon – one that we believe Alexander Giannakakis’ brother used to express his hatred for Jewish people four times. By lying to our investigators and trying to obstruct our investigation into his brother, Mr. Giannakakis only made matters worse. If people think there’s no downside to deceiving FBI agents, critical lines of investigation will be compromised, and our justice system stalled. Our Joint Terrorism Task Force can’t afford to be deterred in this way.”
In and around February 2020, Giannakakis’ younger brother became the prime suspect in an investigation into four fires set at Jewish-related institutions in the Boston area: the first during the evening of May 11, 2019 at a Chabad Center in Arlington; the second at the same location during the evening of May 16, 2019; the third at a Chabad Center in Needham; and the fourth during the evening of May 26, 2019, at a Jewish-affiliated business in Chelsea. However, at the time Giannakakis’ brother was identified as a suspect, he was hospitalized in a coma. He remained in a coma until his death later that year.
Shortly after his brother was identified as a suspect, Giannakakis left the United States for Sweden, where he was living at the time, with his brother’s electronic devices and documents. According to court documents, when Giannakakis returned to the U.S. in March 2020, he was questioned by investigators and made false and misleading statements. He later concealed and destroyed physical evidence being sought by investigators that implicated his brother in the arsons. Within hours of concealing and destroying that evidence, Giannakakis fled the United States for Sweden. Giannakakis remained in Sweden until his arrest by Swedish authorities in February 2022.
The charges of concealing records in a federal investigation, tampering with documents and objects, and tampering with an official proceeding each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Chief Juliann Flaherty of the Arlington Police Department; Chief John Schlittler of the Needham Police Department; and Chief Keith E. Houghton of the Chelsea Police Department made the announcement today. Substantial assistance was provided by Swedish authorities. Additional assistance was provided by the Quincy Massachusetts Police Department; the Massachusetts State Police; and the Massachusetts State Fire Marshal. The Justice Department’s Office of International Affairs provided substantial assistance to secure the arrest and extradition from Sweden of Giannakakis. The case is being prosecuted by Assistant U.S. Attorneys Jason A. Casey and John McNeil of the Office’s National Security Unit.
Mary Mahoney’s Old French House and Manager Sentenced for Conspiracy and Misbranding of SeafoodRead the Press Release
Gulfport, MS – A Mississippi corporation operating as Mary Mahoney’s Old French House restaurant in Biloxi, Mississippi, and its co-owner and manager, Anthony Charles Cvitanovich, were sentenced today on charges arising from their participation in a long-standing conspiracy to misbrand seafood by substituting inexpensive imported fish for the local premium species they advertised and declared on their menus.
The court accepted the terms of a plea agreement Mary Mahoney’s reached with the government and sentenced the company to five years of probation and ordered it to pay a total penalty of $1,499,000, which included $149,000 as a criminal fine and $1,350,000 in forfeiture for some of the proceeds it had obtained from its fraudulent sales of seafood to its customers. The Court also imposed special conditions of supervision, to include that Mary Mahoney’s maintain for no less than five years, records describing the species, sources, and the cost of the seafood it acquires for sale to its customers, and that it make these records available to any federal, state, or local governmental authority that regulates or monitors the service and distribution of food for human consumption and to any such agency that regulates the harvesting, storage, labeling, or sale of seafood. The Court also ordered as a condition of supervision that Mary Mahoney’s shall answer truthfully any inquiry from any governmental agency and from any customer as to the species, source, and cost of any seafood it prepares, serves, sells or advertises for sale.
On May 30, 2024, Mary Mahoney’s pled guilty to a felony charging the corporation with conspiracy to misbrand seafood and wire fraud in connection with a scheme that began as early as 2002 and continued through November of 2019. Mahoney’s, founded in 1962, admitted that between December 2013 and November 2019, the company and its co-conspirators at a Biloxi seafood wholesaler fraudulently sold as local premium species approximately 58,750 pounds (over 29 tons) of fish that was actually frozen and imported from Africa, India, and South America.
Mahoney’s co-owner/manager, Anthony Charles Cvitanovich, 55, was sentenced to three years of probation and 4 months of home detention. He was also ordered to pay a $10,000 fine. On May 30, 2024, Mr. Cvitanovich pled guilty to a felony Information charging him with misbranding of seafood during 2018 and 2019.
“Misbranding foreign seafood as premium, locally caught fish hurts the Gulf Coast seafood industry and defrauds customers that paid to taste the real thing,” said U.S. Attorney Todd Gee. “This investigation and today’s sentence will hopefully send a message that the Department of Justice is serious about holding businesses accountable that mislabel food sources.”
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Environment and Natural Resources Division Assistant Attorney General Todd Kim made the announcement.
The Food and Drug Administration - Office of Criminal Investigations initiated the case.
Assistant U.S. Attorney Andrea C. Jones and Senior Trial Attorney Jeremy F. Korzenik of the Justice Department's Environment and Natural Resources Division are prosecuting the case.
In related charges, the Biloxi seafood wholesaler Quality Poultry and Seafood and two of its managers are scheduled for sentencing on Monday, December 11, 2024.
Man with Lengthy Criminal Record Sentenced to over Five Years in Prison for March 2023 Armed RobberyRead the Press Release
BOSTON – A Cambridge man as sentenced on Nov. 14, 2024 in federal court in Boston for the March 20, 2023, armed robbery of the JP Wireless store in Jamaica Plain, Mass.
Royal Benjamin, 64, was sentenced by U.S. District Court Judge Indira Talwani to 70 months in prison, to be followed by three years of supervised release. In August 2024, Benjamin pleaded guilty to one count of Hobbs Act robbery. In September 2023, Benjamin was charged by criminal complaint.
On March 20, 2023, Benjamin robbed an individual in the Downtown Crossing subway station of a bag containing two pairs of Puma sneakers. Benjamin then traveled to JP Wireless in Jamaica Plain and offered to sell the sneakers to a store employee. When the store employee stated he did not want to buy the sneakers, Benjamin removed a handgun from his waistband and rushed behind the counter pointing the handgun at the store employee. Once behind the counter, Benjamin took $594.00 in cash that was sitting on top of the register. Benjamin then removed the drawer, dropping it and its contents on the ground. Benjamin’s fingerprints were later located on the cash register drawer. Benjamin then fled the store, threatening to shoot the store employee. During a search of Benjamin’s bedroom at a house in Cambridge, a loaded handgun was recovered.
According to court records, Benjamin has a lengthy criminal record dating back to 1978, when he was 18years-old. His criminal record includes the following convictions and sentences: a 1978 conviction in Alabama for Strong Armed Robbery, for which he was sentenced to 10 years (Benjamin escaped from prison); a 1985 conviction in the Roxbury District Court for Assault Dangerous Weapon, for which he received a sentence of “Filed;” a 1985 conviction in Suffolk Superior Court for Armed Robbery, for which he was sentenced to four to six years; a 1984 conviction in Suffolk Superior Court for Manslaughter and Armed Robbery, for which he received a sentence of 18 to 20 years; 1994 convictions in the Suffolk Superior Court for Robbery and Possession of a Class B controlled Substance, for which he received a sentence of four to six years; a 2001 conviction in Suffolk Superior Court for Armed Robbery, for which he was sentenced to seven to nine years; a 2010 conviction in Suffolk Superior Court for Robbery, for which he was sentenced to 10 to 12 years; and a 2024 conviction in the Boston Municipal Court for Larceny from a Person, for which he received a sentence of 90 days.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts Bay Transit Authority Police Department; the Suffolk County District Attorney’s Office; and the Boston and Cambridge Police Departments. Assistant U.S. Attorneys Meghan C. Cleary and David G. Tobin of the Major Crimes Unit prosecuted the case.
Man Sentenced to More Than Eleven Years in Prison for Participating in Two Robberies in RockfordRead the Press Release
ROCKFORD — A Rockford man has been sentenced to more than eleven years in federal prison for participating in two robberies in Rockford.
THOMAS L. HAWKINS, 38, pleaded guilty earlier this year to robbing a Red Roof Inn and a Mobil gas station, both of which were located in Rockford.
Hawkins admitted in a plea agreement that on Sept. 26, 2020, he was armed with a dangerous weapon that resembled a firearm and pointed it at an employee of the Red Roof Inn while a co-conspirator forced the employee to a rear counter. Hawkins and the co-conspirator stole approximately $1,600 before fleeing the Red Roof Inn.
Hawkins and a co-conspirator robbed the Mobil gas station on Oct. 20, 2020. Hawkins was armed with a firearm and pointed it at an employee while the co-conspirator pushed the employee to a rear area of the store. Hawkins and the co-conspirator stole approximately $1,100 before fleeing the gas station.
U.S. District Judge Iain D. Johnston on Friday sentenced Hawkins to eleven years and three months in federal prison.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Chicago Field Office. The Rockford Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Jonathan S. Kim.
Man Pleads Guilty to Fraudulently Obtaining over $1 Million in COVID-19 Relief and Unemployment CompensationRead the Press Release
MIAMI – On Nov. 15, Conrad Brandon Bernard, 24, pled guilty in Fort Lauderdale, Fla., to committing bank fraud and identity theft during a scheme to fraudulently obtain over $1 million in Covid-19 relief loans and unemployment compensation payments.
During the COVID-19 outbreak, the Economic Injury Disaster Loan (EIDL) program was utilized to provide loan assistance to small businesses and other eligible entities in need. The U.S. Department of Labor's unemployment insurance programs were created to provide unemployment benefits to eligible workers who become unemployed through no fault of their own and meet certain other eligibility requirements.
Beginning as early as in or around May 2020 and continuing through on or about December 2022, Bernard carried out a scheme to defraud the EIDL and unemployment insurance programs. Bernard fraudulently applied for fourteen EIDLs using the name and personal identifying information (PII) of other individuals without their knowledge or consent. Once the U.S. Small Business Association (SBA) approved the fraudulent loan applications, the SBA transferred the EIDL funds to various bank accounts at Bernard’s direction. Bernard opened and operated these accounts with the name and PII of other individuals without those individuals’ knowledge or consent. Bernard then transferred those funds from the bank accounts to other accounts under his control including various accounts he created using the name and PII of other individuals without their knowledge or consent.
Bernard also transferred or withdrew fraudulently obtained unemployment benefit funds from bank accounts he opened and operated using the name and PII of other individuals without their knowledge or consent. These unemployment benefits were paid from several states, including West Virginia and Arizona. The unemployment benefit funds were fraudulently obtained because the name and PII of other individuals were used to apply for the unemployment benefits without those individuals’ knowledge or consent. In all, Bernard fraudulently obtained $1,083,340 in EIDL funds and unemployment benefits.
During the investigation, law enforcement also discovered that Bernard possessed numerous false identifications including counterfeit passport cards, false Florida driver’s licenses and identification cards, the means to create false identification, and the PII of several thousand individuals including their names, dates of birth, and Social Security numbers.
Bernard is scheduled to be sentenced on February 5, , 2025, before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale. He faces up to 30 years in prison for the bank fraud convictions, to be followed by a mandatory consecutive term of 2 years in prison for the aggravated identity theft conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Acting Special Agent in Charge Michael Conklin of the U.S. Department of State’s Diplomatic Security Service (DSS) Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
The DSS Miami Field Office and BSO investigated the case.
Assistant U.S. Attorney Deric Zacca from the Southern District of Florida and Assistant U.S. Attorney Suzanne Nebesky from the Middle District of Florida are prosecuting the case. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60168.
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Man Gets 17 Year Prison Term for Fatally Shooting a Man in Southeast DCRead the Press Release
WASHINGTON – Kyree Anthony Hairston, 25, of Washington, D.C., was sentenced to 204 months in prison, for voluntary manslaughter while armed with a firearm, for the February 2024 shooting death of David Coe, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Hairston pleaded guilty on August 9, 2024, to one count of voluntary manslaughter while armed with a firearm. Superior Court Judge Anthony Epstein sentenced Hairston, on November 15, 2024, to the top of the guideline period of incarceration, 17 years in prison, to be followed by five years of supervised release.
According to the government’s evidence, at approximately 2:45 p.m., on February 3, 2024, Hairston and the victim, Mr. David Coe, were in the parking lot area of the Arbor View Apartment Complex, located in the 1200 block of Southern Avenue in Southeast, Washington, DC. The two engaged in a conversation, part of which was captured on the audio portion of video surveillance footage that also captured the shooting. On the surveillance, the defendant can be heard stating, “on my grandmother, you got 30 seconds. On my grandmother” and “you trippin like sh*t.” The surveillance shows Hairston pull the hood of his sweatshirt over his head, which covered part of his face. Hairston then removed a black handgun from his jacket pocket and pointed it at Mr. Coe. Mr. Coe lunged forward to try and disarm Hairston, but Hairston shot him in the chest before he could do so. The victim fell to the ground and as he laid there, Hairston shot Mr. Coe again. Mr. Coe was shot four times and died twenty minutes later.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorney Marybeth Manfreda of the U.S. Attorney’s Office for the District of Columbia.
Louisville Man Sentenced to over 29 Years in Federal Prison for Drug Trafficking Conspiracy and Firearms OffenseRead the Press Release
Louisville, KY – A Louisville man was sentenced last week to a total of 29 years and 6 months in federal prison for numerous felony offenses, including conspiracy to possess with the intent to distribute controlled substances, possession with the intent to distribute fentanyl, heroin, and cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Paul Humphreys of the Louisville Metro Police Department made the announcement.
According to court documents, on November 14, 2024, Jerlen Horton, 30, was sentenced to 28 years in prison, followed by 5 years supervised release, for conspiracy to possess with the intent to distribute over one kilogram of fentanyl, over 250 grams of heroin, and a mixture of cocaine base, commonly referred to as “crack cocaine,” possession with the intent to distribute fentanyl, heroin, and cocaine, and possession of a firearm in furtherance of drug trafficking. Horton was sentenced to an additional 1 year and 6 months in prison, to run consecutively with the 28-year sentence for a total of 29 years and 6 months, for violation of his supervised release.
Horton and his co-defendant, Chicoby Summers, were convicted following a seven-day jury trial in July of this year. Summers is scheduled for sentencing on December 10, 2024, in the United States District Court for the Western District of Kentucky.
There is no parole in the federal system.
The ATF and LMPD investigated the case, with assistance from the FBI, DEA, United States Postal Inspection Service, Kentucky State Police, Franklin County Sheriff’s Office, Long Beach California Police Department, Verdigris Oklahoma Police Department, and the St. Louis Metropolitan Police Department.
Assistant U.S. Attorneys Frank Dahl and Josh Porter are prosecuting the case, with assistance from paralegal Adela Alic.
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.
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Lisa L. Lambert Appointed as U.S. Trustee for the Northern and Eastern Districts of TexasRead the Press Release
Lisa L. Lambert has been appointed by Attorney General Merrick B. Garland as the U.S. Trustee for the Northern and Eastern Districts of Texas (Region 6) effective today. Lambert replaces Kevin M. Epstein, who filled the Region 6 role in an interim capacity and who continues to serve as the U.S. Trustee for the Southern and Western Districts of Texas (Region 7).
Lambert joined the U.S. Trustee Program (USTP) in 1998 as a trial attorney in the field office in Tyler, Texas. She has since served the USTP in a variety of capacities. After three years in three of the USTP’s New York offices, Lambert returned to Texas in 2009 as a trial attorney in the Dallas field office, and she has served as the Assistant U.S. Trustee in charge of that office since 2012. In addition to her extensive service to the USTP, Lambert has held several leadership positions in the Federal Bar Association’s bankruptcy section, and she coached oral advocacy and briefing skills to Texas Tech University law students competing in the Duberstein Bankruptcy Moot Court Competition for more than a decade.
Lambert received a bachelor’s degree in English from the University of North Carolina at Chapel Hill and a law degree from Texas Tech University School of Law. After law school, she clerked for Chief Bankruptcy Judge Houston Abel for the Eastern District of Texas and worked at a boutique law firm focused on bankruptcy.
The Executive Office for U.S. Trustees made the announcement.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Lenox Man Sentenced for Child Exploitation ChargesRead the Press Release
BOSTON – A Lenox man was sentenced today in federal court in Springfield for attempting to transfer obscene material to a minor after he sent obscene images and videos to an undercover investigator.
Paul J. Bruzzi, 37, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. In July 2024, Bruzzi pleaded guilty to one count of attempt to transfer obscene material to a minor in federal court.
Starting in September 2022, Bruzzi used social media applications to engage in conversations with an individual he believed to be a 14-year-old girl, but who was actually an undercover federal investigator. During these conversations, Bruzzi attempted to pressure the girl into sending him photos and sent her nine photographs and videos of himself displaying his genitalia.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Salisbury, Mass. Police Department and the Winchester, Mass. Police Department. Assistant U.S. Attorney Neil L. Desroches, Chief of the Springfield Branch Office is prosecuting the case.
Jury Finds Orlando Felon Guilty of Possessing AmmunitionRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found David Lewis Andrew Bryan (36, Orlando) guilty of two counts of possessing ammunition as a convicted felon. Bryan faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for February 12, 2025.
According to the evidence and testimony presented during the two-day trial, Bryan is a five-time convicted felon who, on two occasions, unlawfully possessed ammunition loaded in operable antique firearms. On July 2, 2023, Orlando Police Department (OPD) officers conducted a traffic stop on Bryan and discovered he was carrying a loaded and operable antique firearm concealed in his waistband. On October 26, 2023, OPD officers executed a search warrant at Bryan’s residence and located two loaded and operable antique firearms. Bryan admitted to owning and possessing both the firearms and the ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Adam J. Nate.
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.
Jury Convicts Two Miami Residents for Involvement in Multi-Defendant PPP SchemeRead the Press Release
MIAMI – On Nov. 8, a federal jury convicted Lazaro Verdecia Hernandez, 37, and Yadier Rodriguez Arteaga, 41, both of Miami, of conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP). Verdecia was also convicted of wire fraud.
Verdecia and co-conspirator Heidi Cid submitted over 63 fraudulent PPP loan applications. In the loan paperwork, they made the applicants appear eligible for pandemic relief by falsifying the number of the companies’ employees and included forged documents. As a result of the fraudulent submissions, lenders disbursed over 14.5 million dollars to bank accounts controlled by the individuals, who then withdraw the money and gave Verdecia, Cid, and Hernandez their cut. Co-conspirator Cid previously pled guilty for her involvement in the scheme and is pending sentencing.
Verdecia and Arteaga are scheduled to be sentenced on Feb. 3, 2025, before U.S. Senior District Judge Robert N. Scola. Verdecia and Arteaga face up to 20 years in prison on the conspiracy and fraud counts and ten years on the money laundering counts. Verdecia faces up to 20 years in prison on the substantive wire fraud count of conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros for the U. S. Secret Service (USSS), Special Agent in Charge Edwin S. Bonano for the Federal Housing Finance Agency, Office of Inspector General (FHFA OIG), and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.
USSS Miami and FHFA OIG investigated the case with the assistance of SBA OIG. Assistant U.S. Attorneys Thomas Haggerty and Eli Rubin are prosecuting the case. Assistant U.S. Attorney Sarah Klco is handling asset forfeiture.
The following cases were previously charged in relation to the fraud scheme:
U.S. v. Roberto Lopez, Kenia Carrillo, Lester Hedman Safont, Oreste Ruiz Linares, Honolio Navarro Caballero, Barbara Alvarez, Javier Pico, Alfredo Contrera, and Erisbel Gonzalez Gomez, Case No. 22-cr-20368;
U.S. v. Nancy Bahos Serna, Case No. 23-cr-20310 (This case is being prosecuted by AUSA Daniel Bernstein.);
U.S. v. Jorge Trueba Lopez, Case No. 21-cr-20382;
U.S. v. Nancy Saavedra Torres, Case No. 21-cr-20225;
U.S. v. Giraldo Caraballo, Case No. 21-cr-20264;
U.S. v. Felix Martinez and Yailin Perez, Case No. 21-cr-20276;
U.S. v. Yoliesse Sarmiento Carrion, Case No. 22-cr-20530;
U.S. v. Osiel Rodriguez Furgel, Case No. 21-cr-20251; and
U.S. v. Leonardo Gonzalez Lopez, Case No. 23-cr-20113.
Each of the aforementioned defendants pled guilty, except for Javier Pico and Erisbel Gonzalez Gomez who are fugitives.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s online application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sep. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20421.
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International Tax Advisor Pleads Guilty to Tax Fraud in Concert with U.S.-Based CPAsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANK BUTSELAAR pled guilty on Thursday, November 14, 2024, to one count of aiding or assisting in the filing of a false or fraudulent tax return. BUTSELAAR pled guilty before U.S. District Judge Cathy Seibel, to whom his case is assigned.
U.S. Attorney Damian Williams said: “Today’s guilty plea, which comes after a rigorous investigation, demonstrates that this Office will stop at nothing to ensure that tax professionals who decide to cheat and lie are held to account for their misconduct.”
As alleged by the Government, and based on the testimony and exhibits received at trial, filings in Court, and statements made in Court:
BUTSELAAR advised the creation of offshore structures for multiple ultra-high-net worth individuals who earned money all over the world and did so while a shareholder in the Amsterdam Office of a major U.S.-based international law firm.
Those clients included world-famous DJs, including Tijs Verwest, p/k/a “DJ Tiesto,” and Nick van de Wall, p/k/a “DJ Afrojack” (the “DJ Clients”). Other celebrity clients included fashion models Patricia van der Vliet and Daria Strokous (the “Fashion Model Clients,” and collectively with the DJ Clients, the “Clients”).
BUTSELAAR worked with partners at a U.S.-based management firm to file U.S. tax returns for the Clients (“Management Firm-1”).
When the Clients were becoming or had become U.S. tax residents, the defendant, and his co-conspirators—partners at Management Firm-1—sought to conceal the Clients’ offshore income through the use of nominee owners of their offshore structures. As part of the scheme, these nominees were installed to make it appear as though the Clients’ earnings now belonged to someone else, generally a family member who lived outside the U.S.
Despite these paper changes in ownership, BUTSELAAR and his co-conspirators at Management Firm-1 never told the Clients anything of substance had changed. The Clients—with the knowledge of BUTSELAAR and his co-conspirators at Management Firm-1—continued to operate their offshore entities as their own and believed they had access to and could direct the money they were accumulating offshore.
Between 2012 and 2017, when Verwest was a U.S. Resident taxpayer, BUTSELAAR and Management Firm-1 omitted from Verwest’s taxes substantial sums held offshore. Similarly, in 2013, when van de Wall was a U.S. Resident taxpayer, BUTSELAAR and Management Firm-1 omitted from van de Wall’s taxes substantial sums held offshore. The amount of unreported income for these two taxpayers exceeded $70 million. During his allocution, BUTSELAAR admitted that partners at Management Firm-1 knowingly omitted overseas income, which should have been reported, from van de Wall’s 2013 U.S. resident return.
While the scheme was operating, BUTSELAAR was repeatedly warned that the income being collected offshore for his Clients was reportable. In fact, six different professionals—CPAs and tax lawyers in the U.S.—told BUTSELAAR that the offshore income being accumulated outside the U.S. for the Clients was reportable in the U.S. In the face of these repeated warnings, BUTSELAAR lied and concealed information from these professionals. Instead, BUTSELAAR worked with his co-conspirators, partners at Management Firm-1, to conceal otherwise reportable income from U.S. authorities.
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BUTSELAAR, 66, of Naarden, Netherlands, pled guilty to one count of aiding or assisting in the filing a fraudulent tax return for the 2013 Tax Year for taxpayer Nick van de Wall, p/k/a “Afrojack,” which carries a maximum sentence of three years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing will be determined by a judge. BUTSELAAR is scheduled to be sentenced by Judge Seibel on February 13, 2025.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation (“IRS-CI”) and the Joint Chiefs of Global Tax Enforcement. Mr. Williams also thanked the Justice Department’s Office of International Affairs and Italy’s Ministero della Giustizia, Arma dei Carabinieri, Guardia di Finanza, and Interpol-Rome for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Klein, Shiva H. Logarajah, and David A. Markewitz are in charge of the prosecution.
Inmate Receives 15 Years in Methamphetamine Distribution Conspiracy Inside Stillwater PrisonRead the Press Release
ST. PAUL, Minn. – An inmate has been sentenced to 180 months in prison followed by 10 years of supervised release for conspiring with a corrections officer to distribute methamphetamine inside the Stillwater prison, announced United States Attorney Andrew M. Luger.
According to court documents, Axel Rene Kramer, 37, an inmate who is currently serving a 288-month sentence for second-degree murder, conspired with Faith Rose Gratz, 26, a former Minnesota Correctional Facility (MCF) – Stillwater corrections officer, to distribute methamphetamine within MCF – Stillwater, which is Minnesota’s largest high-security prison facility. As part of the conspiracy, Kramer obtained wholesale quantities of prepackaged methamphetamine from sources of supply outside the prison. Kramer and another co-conspirator inmate worked with drug sources of supply to arrange meet-up times and locations where Gratz would pick up the drug packages. Gratz used her position as a guard to smuggle the drugs into the prison and to provide the drugs to Kramer. She then transferred the drugs to Gratz in the course of performing her prison guard duties. She participated in the illegal scheme approximately six times. Gratz also smuggled into the prison multiple cell phones that she provided to Kramer. Kramer used the cell phones to communicate with people inside and outside the prison and to facilitate his drug distribution network from within the prison.
According to court documents, Kramer and Gratz exchanged hundreds of text messages with each other. The messages included communications about the drug distribution conspiracy as well as discussions about their romantic relationship. Gratz also warned Kramer about upcoming searches of inmates’ cells.
On January 5, 2024, Kramer pleaded guilty to one count of conspiracy to distribute methamphetamine. He was sentenced on November 12, 2024, by Judge Eric C. Tostrud in U.S. District Court. On November 15, 2024, Judge Tostrud sentenced Gratz to 27 months in prison followed by two years of supervised release.
This case is the result of an investigation conducted by the Bayport Police Department, Minnesota Department of Corrections, and the FBI.
Assistant U.S. Attorneys Harry M. Jacobs and Matthew D. Evans prosecuted the case.
Indictment Charges New Haven Man with Firearm OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Bridgeport has returned an indictment charging ADRIAN BELLE, 30, of New Haven, with the unlawful possession of ammunition by a felon.
The indictment was returned on September 5, 2024. Belle appeared today before U.S. Magistrate Judge S. Dave Vatti in Hartford and entered a plea of not guilty to the charge. Belle is currently serving a sentence on Florida state charges arising out of an unrelated incident.
The indictment alleges that on August 26, 2023, in New Haven, Belle possessed a black Polymer 80 firearm (“ghost gun”) containing ammunition that was manufactured in Serbia.
The indictment further alleges that Belle’s criminal history includes a federal conviction for unlawful possession of a firearm by a felon, and state convictions for robbery in the first degree and assault on personnel. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, Belle faces a maximum term of imprisonment of 15 years. Belle, who was on federal supervised release at the time of the alleged offense, faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathan Guevremont through Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Grand jury indicts 6 defendants in straw purchasing conspiracy involving firearms bought online with stolen credit card informationRead the Press Release
COLUMBUS, Ohio – A federal grand jury indicted six individuals with conspiring to commit an offense against the United States by making false statements on federal firearms forms. The individuals allegedly conspired to use stolen credit card information to place orders online for straw purchase firearms.
Those charged include:
NameAlso Known AsAgeCity of ResidenceKeith Davenport IIIKeefy21ColumbusEllyson Jeffries 23ReynoldsburgJavohn GarciaJG23ReynoldsburgD’andre Beasley 31ColumbusJohna McCoy 27AtlantaVincent IrvinV33ColumbusThe indictment was returned on Oct. 30 and all six defendants have been arrested since that time. The case was unsealed on Nov. 15.
According to the 14-count indictment, members of the conspiracy allegedly placed orders with online firearms retailers, and then had the guns transferred to firearms retailers for in-person pick-up in Reynoldsburg, Columbus, New Albany, Pataskala and Pickerington, as well as in Atlanta and Smyrna, Georgia. Coconspirators allegedly used stolen credit card information to place the orders and lied on the federal firearms forms saying they were purchasing the firearms for themselves. It is alleged that defendants then sold or intended to sell many of the firearms that were acquired illegally.
Each of the six defendants is charged in the conspiracy that allegedly occurred from approximately May until September 2022 and involved the illegal purchase of at least 50 firearms.
Davenport is also charged with aggravated identity theft.
Conspiring to make false statements during the purchase of a firearm is punishable by up to five years in prison. Making false statements during the purchase of a firearm is a federal crime punishable by up to 10 years in prison. Aggravated identity theft carries a mandatory two years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the charges. Assistant United States Attorneys S. Courter Shimeall and Damoun Delaviz are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grenadian Man Sentenced on Drug Trafficking ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Rodney Dennis de Roche, 39, of Grenada, was sentenced by District Judge Wilma A. Lewis to 37 months imprisonment, followed by two years of supervised release and a $100 special assessment, after he pleaded guilty to Conspiracy to Possess a Cocaine with Intent to Distribute While on Board a Vessel Subject to the Jurisdiction of the United States.
According to court records, on November 14, 2023, during their patrol in international waters in the Eastern Caribbean Sea, approximately 116 nautical miles West of Fort de France, Martinique, the United States Coast Guard Cutter Diligence intercepted the motor vessel Jackie Boy in a known drug trafficking area, bearing no indicia of nationality. The Jackie Boy was non-compliant with commands from the Coast Guard to stop and the occupants of the vessel, including de Roche, Adel Munro, Arim Boniface, alias Arkim Boniface, Dave Compton, Kevin Francis and Darryl Pope, began jettisoning numerous packages tied to sandbags overboard. Coast Guard officers later retrieved approximately 32 kilograms of cocaine from the ocean and six occupants, including de Roche, were taken into custody.
The master of the vessel claimed Grenadian nationality for the vessel and Grenadian officials confirmed its nationality and granted a waiver of jurisdiction thereby subjecting this matter to the jurisdiction of the United States. All six defendants pleaded guilty to the cocaine trafficking conspiracy. On August 28, 2024, Reinoza was sentenced to 46 months imprisonment, and are awaiting sentencing.
This case was investigated by the United States Coast Guard and Drug Enforcement Administration and prosecuted by Assistant United States Attorney Daniel H. Huston. 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.