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8 January 2025
Former Virginia Business Owner Pleads Guilty to Employment Tax FraudRead the Press Release
A Virginia man and former business owner pleaded guilty yesterday to not accounting for and paying employment taxes to the IRS.
According to court documents and statements made in court, Richard E. Moore, of Augusta County, was the executive vice president and part owner of Nexus Services Inc., a Verona-based company that offered bond securitization and other services to immigrants detained by U.S. Immigration and Customs Enforcement. Moore, who exercised control over Nexus’s business and financial affairs, was responsible for withholding Social Security, Medicare and income taxes from Nexus’s employees’ wages and paying those funds over to the IRS. He was also responsible for filing quarterly employment tax returns. For many quarters between the first quarter of 2015 and first quarter of 2024, Moore withheld the funds but did not pay them over to the IRS and did not file the returns.
In total, he caused a tax loss to the IRS of approximately $3.1 million.
Moore’s sentencing will be scheduled for a later date. He faces a maximum penalty of five years in prison for each count of failing to pay employment taxes. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Matthew Hicks of the Tax Division are prosecuting the case.
Former State Government Employee and Her Former Boyfriend Plead Guilty to Fraudulently Obtaining COVID Jobless BenefitsRead the Press Release
LOS ANGELES – A former employee of the California Employment Development Department (EDD), which administers the state’s unemployment insurance (UI) program, pleaded guilty this afternoon to fraudulently obtaining more than $750,000 in COVID jobless relief.
Phyllis Hope Stitt, 61, of Carson, pleaded guilty today to one count of conspiracy to commit mail fraud and bank fraud for filing at least 29 fraudulent UI claims that caused the EDD to suffer approximately $768,958 in losses. Also pleading guilty today to the same charge was Kenneth Earl Riley, 64, of South Los Angeles, Stitt’s former boyfriend.
According to their plea agreements, Stitt and Riley had been in a relationship as domestic partners with each other for over a decade at the beginning of the COVID-19 pandemic when Stitt was employed by the EDD as an employment program representative. Her job duties included determining claimant eligibility for unemployment insurance (UI) benefits and performing claim processing activities.
From March 2020 to September 2021, while using the access and information available to her in her position with the EDD, Stitt acquired the names, dates of birth, Social Security numbers, and other personal identifying information of victims that were used to submit fraudulent claims.
Stitt then filed fraudulent applications for UI benefits without the victims’ knowledge or consent, and then increased the amount of UI benefits paid out by backdating the fraudulent requests to maximize the claims.
Stitt certified the fraudulent applications alleging that the victims had submitted their employment history and driver’s license information, and she confirmed they were unemployed because of the pandemic and actively were searching for work.
Many of the victims were ineligible to receive these benefits because they were currently employed, not unemployed because of the pandemic, or were deceased at the time.
In filing the fraudulent applications, Stitt used mailing addresses that Riley had access to. Debit cards and accounts created as a result of these fraudulent applications were then accessed by Riley and others, who made cash withdrawals at ATMs, bank transfers and retail purchases.
United States District Judge André Birotte Jr. scheduled sentencing hearings for May 9, at which time each defendant will face a statutory maximum sentence of 30 years in federal prison.
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 September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly 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.
The United States Department of Labor – Office of Inspector General, the FBI, and the California Employment Development Department – Investigation Division investigated this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section is prosecuting this case.
Former Quincy Official Indicted for Embezzling City FundsRead the Press Release
BOSTON – A Fitchburg man was arrested today in connection with an alleged scheme to embezzle funds from the City of Quincy, Mass.
Thomas F. Clasby, Jr., 60, was charged in an indictment with embezzlement, mail and wire fraud and interstate transportation of stolen property. Clasby will make an initial appearance in federal court in Boston at 12:45 p.m. today.
According to the indictment, Clasby was the Director of the Quincy Department of Elder Services (Elder Services) between approximately 1999 and April 2024. Beginning in 2019, Clasby allegedly used the City’s purchasing process to pay personal expenses and generate cash for himself. For example, Clasby allegedly arranged for the City to pay $8,950 to a music studio to produce recordings of Clasby singing songs; $2,236 to food service vendors for 153 pounds of bourbon steak tips; $4,800 for a Toyota Prius; and $1,658 for a signature, lacquered, mounted, and framed self-portrait, all of which were personal expenses.
The indictment further alleges that Clasby arranged for the City pay over $38,000 to a New York consulting company owned by Clasby’s friend. The consulting company never provided goods or services to any City department. Instead, Clasby’s friend allegedly cashed the City checks and delivered the cash to Clasby at a rest stop in Framingham, Mass., a ferry terminal in Bridgeport, Conn. and at the friend’s New York apartment. The indictment further alleges that, starting in June 2021, Clasby stole the vast majority of cash receipts generated by Elder Services at the Kennedy Center in Quincy.
“Thomas Clasby’s alleged betrayal of trust is not just a theft from the City of Quincy but an affront to the seniors he was sworn to serve and the taxpayers who funded these programs,” said United States Attorney Joshua S. Levy. “As Director of Elder Services, Mr. Clasby was entrusted with protecting vulnerable members of his community. Instead, he allegedly used his position to fund personal indulgences, from bourbon steak tips to a custom-framed self-portrait, and even went so far as to collect cash handoffs at ferry terminals and rest stops. Let this indictment serve as a reminder: public officials who exploit their positions for personal gain will be found out and held accountable for their crimes.”
“Stealing money from programs that are set up to help our seniors is utterly disgraceful,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today, the FBI arrested Thomas Clasby for allegedly padding his paycheck in a big way, using tens of thousands of dollars belonging to the city’s coffers as his own personal slush fund. In doing so, we believe he cheated the city of Quincy’s Department of Elder Services, the taxpayers who help fund it, and all the honest municipal workers who do the right thing, in the right way, every day. We’d like to thank the Quincy Police Department for its assistance in bringing Mr. Clasby to justice.”
The charge of embezzlement provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of interstate transportation of stolen property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Quincy Police Department. Assistant U.S. Attorney Kristina E. Barclay of the Public Corruption and Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former New Britain Resident Sentenced to 10 Years in Federal Prison for Trafficking CocaineRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RAMON SOTO, 57, of the Bronx, New York, formerly of New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by four years of supervised release, for his role in a cocaine trafficking conspiracy.
According to court documents and statements made in court, an investigation led by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force identified a cocaine trafficking operation that involved the shipment of parcels containing kilogram quantities of cocaine from U.S. Post Offices in Puerto Rico to various “drop addresses” in New Britain and Meriden, Connecticut, as well as addresses in Holyoke and West Springfield, Massachusetts. Soto and others picked up parcels from the drop addresses and delivered them to his New Britain residence or to a co-conspirator’s residence. They then delivered the cocaine to individuals in the Bronx in return for payment.
During the investigation, task force members intercepted and seized 10 suspicious parcels, each of which contained approximately two kilograms of cocaine, and identified approximately 280 suspicious parcels likely containing kilogram quantities of cocaine that had been delivered to the various drop addresses.
On May 1, 2023, investigators conducted a court-authorized search of Soto’s residence and seized a loaded Ruger handgun, magazines, ammunition, two money counters, a digital scale with cocaine residue, and more than $1,000 in cash. A search of a co-conspirator’s residence on that date revealed two firearms, a drum magazine, ammunition, approximately two kilograms of cocaine, drug packaging material, and approximately $12,000 in cash.
Soto was arrested on February 14, 2024. On September 19, 2024, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
Soto, who is released on a $50,000 bond, is required to report to prison on February 26.
This matter is being investigated by the U.S. Postal Inspection Service and the Narcotics and Bulk Cash Trafficking Task Force, which includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Stephanie Levick and Konstantin Lantsman.
Former Indiana Congressional Candidate to Plead Guilty to Falsifying Campaign ContributionsRead the Press Release
INDIANAPOLIS- 2024 Indiana congressional candidate, Gabriel Whitley, 27, of Indianapolis, has agreed to plead guilty to lying to the Federal Election Commission (FEC) by fabricating contributions purportedly made to his campaign, “Honest Gabe for Congress,” for the purpose of falsely portraying that his campaign had significantly greater support and financial resources than it actually did.
According to court documents, Gabriel Whitley ran in the primary election for Indiana’s Seventh Congressional District and served as the treasurer of his campaign committee. Whitley admitted that he lied to the FEC in three separate reports about hundreds of thousands of dollars in contributions from supporters and loans from himself. Specifically, Whitley admitted that in October 2023, he falsely claimed that 67 people, whose biographical details he made up, had contributed approximately $222,690 to Honest Gabe for Congress. In January 2024, Whitley again falsely reported contributions from individuals whose biographical details he fabricated. Finally, in April 2024, Whitley falsified a $100,000 loan to his campaign.
Whitley faces a maximum penalty of five years in prison. He will have a change-of-plea hearing and a sentencing hearing to be scheduled at later times. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Brent Wible, Principal Deputy Assistant Attorney General, head of the Justice Department’s Criminal Division; First Assistant U.S. Attorney John E. Childress for the Southern District of Indiana; and Special Agent in Charge Herbert Stapleton of the FBI Indianapolis Field Office made the announcement.
The FBI Indianapolis Field Office is investigating the case. Trial Attorney Jacob R. Steiner of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Tiffany Preston of the Southern District of Indiana are prosecuting the case.
All defendants are presumed innocent until they plead guilty or are proven guilty beyond a reasonable doubt in a court of law.
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Former Corrections Officer Pleads Guilty to Accepting Bribes in Exchange for Smuggling Narcotics into Rikers IslandRead the Press Release
Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that GHISLAINE BARRIENTOS, a former corrections officer, pled guilty today to bribery in connection with her participation in a scheme to accept bribes in exchange for smuggling narcotics into Rikers Island. BARRIENTOS pled guilty before U.S. District Judge Gregory H. Woods and is scheduled to be sentenced on April 16, 2025.
Acting U.S. Attorney Edward Y. Kim said: “Ghislaine Barrientos took bribes when working as a corrections officer at Rikers Island. Rikers Island is less safe, for inmates and officers alike, when corrections officers and others in positions of public trust accept bribes to smuggle contraband. We will not tolerate any breach of trust or corruption that jeopardizes the well-being of inmates and staff.”
As reflected in the Complaint, Information, and statements made in court:
BARRIENTOS, a former New York City Department of Correction (“DOC”) correction officer, conspired with others to smuggle contraband, including cocaine, smokeable synthetic cannabinoids (known as “K2”), and food to inmates housed at the Robert N. Davoren Complex on Rikers Island in exchange for thousands of dollars in bribe payments.
For example, on April 11, 2024, CC-1, an associate of an inmate (“Inmate-1”), and BARRIENTOS discussed CC-1 sending BARRIENTOS a package through a delivery service. On April 15, 2024, surveillance footage showed BARRIENTOS entering Inmate-1’s cell, where surveillance footage could not capture her actions. Two days later, DOC searched Inmate-1’s cell and recovered sheets of paper that tested positive for the presence of cocaine.
On April 24, 2024, CC-1 sent BARRIENTOS another package using the delivery service. When BARRIENTOS went to work later that day, a drug-detecting canine alerted for the presence of narcotics. DOC employees searched BARRIENTOS’s belongings and found approximately 10 sheets of paper that tested positive for the presence of K2. In an interview with law enforcement, BARRIENTOS falsely stated, among other things, that no inmate had ever asked her to bring them contraband. Law enforcement officers then searched BARRIENTOS’s vehicle and recovered additional sheets of paper, as well as approximately $2,466 in cash, as shown in the following photographs:
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BARRIENTOS, 37, of Mount Vernon, New York, pled guilty to one count of conspiracy to commit federal program bribery, which carries a maximum sentence of five years in prison.
The statutory maximum sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Department of Investigation.
This case is being handled by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorney Jeffrey Coyle is in charge of the prosecution.
Former Columbus police officer sentenced to more than 4 years in prison for stealing cocaine from crime scenes, police evidence roomRead the Press Release
COLUMBUS, Ohio – A former Columbus police officer was sentenced in federal court here today to 50 months in prison for crimes involving more than 15 kilograms of cocaine and money laundering.
Joel M. Mefford, 35, of London, Ohio, was a Columbus police officer assigned to investigate drug crimes. On three occasions between February and April 2020, Mefford worked with another officer to steal and traffic cocaine.
“Crimes like those that Mefford committed undermine the integrity of the criminal justice system. Mefford abused his official position for personal gain,” said U.S. Attorney Kenneth L. Parker. “Today’s substantial prison sentence is necessary to reflect the gravity of his offenses and to promote respect for the law. Corrupt public servants will be held accountable.”
According to court documents, in February 2020, Mefford and the other officer were investigating a drug crime and unlawfully gained access to a detached garage belonging to the subject of the investigation. Without a warrant, they entered the garage and discovered two kilograms of cocaine in the rafters. They unlawfully seized one of the kilograms and left the other to be found during the execution of a search warrant the next morning. The other officer gave the stolen narcotics to another individual to sell.
Similarly, in February and March 2020, Mefford and the other officer were investigating drug-trafficking activity at houses on Ambleside Drive and Kilbourne Avenue in Columbus. On March 7, 2020, the officers took a bag containing multiple kilograms of cocaine from the house on Ambleside Drive and arrested an individual there. They then traveled to the house on Kilbourne Avenue and removed a kilogram of cocaine. That same day, Mefford turned in one kilogram of cocaine to evidence, and the officers stole the other kilograms to be sold.
In April 2020, Mefford and the other officer stole between 10 and 20 kilograms of cocaine from the Columbus police property room and replaced it with fake cocaine. Mefford transported the stolen cocaine in a police cruiser and the other officer later gave the drugs to another individual to sell. The drug proceeds were then given to the other officer, who provided Mefford his cut. Mefford personally received a total of approximately $130,000 from cocaine sales.
Mefford deposited more than $72,000 of the cash derived from the cocaine sales into his personal bank account.
A federal grand jury indicted Mefford in December 2023 and he pleaded guilty in August 2024 to two counts of possessing with intent to distribute 500 grams or more of cocaine, one count of possessing with intent to distribute five kilograms or more of cocaine, and one count of money laundering.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.
Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.
The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigation, the Ohio Auditor of State’s Office and the Columbus Division of Police.
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Former Charleston Physician Sentenced to Prison for Federal Opioid CrimeRead the Press Release
CHARLESTON, W.Va. – Dr. Alexander V. Otellin, 57, formerly of Charleston, was sentenced today to three years in prison, to be followed by three years of supervised release, for the unlawful distribution of oxycodone.
According to court documents and statements made in court, on July 27, 2017, Otellin distributed a quantity of oxycodone to a patient at his psychiatry practice in South Charleston. Otellin admitted that while his specialty was psychiatry, he treated the patient for pain management. Otellin further admitted that this distribution was without a legitimate medical purpose, outside the usual course of medical practice, and without proper authority.
Otellin distributed controlled substances to the patient starting on or about February 6, 2014, until on or about July 15, 2020. During this time period, Otellin knew the patient was receiving opiates from another physician. Urine screens indicated the patient was abusing heroin and fentanyl, yet Otellin continued to prescribe medications that are dangerous when combined with illegal unprescribed drugs.
For the first four years of this time period, Otellin did not review the patient’s medical history for substance abuse or habits or document a review of the database that tracks controlled substance prescriptions. For approximately five months during this time period, Otellin wrote prescriptions for oxycodone and other controlled substances for the patient without evaluating him.
Otellin also prescribed oxycodone to the patient’s wife for pain management instead of referring the patient’s wife to a pain management specialist. Otellin only conducted three urine drug screenings over a five-year period that would have revealed whether the patient’s wife was using the prescription as prescribed, diverting it to her husband, or using other drugs.
At least three pharmacists complained to the Drug Enforcement Administration (DEA) that Otellin’s prescribing practices appeared improper, including when he prescribed the opioid medication buprenorphine at dosages above clinically effective levels. One patient who received above-therapeutic buprenorphine prescriptions from Otellin also received the anti-anxiety medication alprazolam, and the anti-seizure and pain medicine gabapentin from Otellin. This patient died from an overdose at age 41. The coroner indicated the cause of death was “due to Buprenorphine, Alprazolam and Gabapentin Intoxication.”
Another patient of Otellin’s also died from an overdose. Otellin prescribed alprazolam, the sedative zolpidem, and amphetamine salts, used to treat attention deficit hyperactivity disorder, to this patient. The patient’s probation officer notified Otellin in a letter that the patient was exchanging his prescription medication for methamphetamine. A bag of methamphetamine and multiple pill bottles from Otellin’s prescriptions for this patient were found in the patient’s home after his death. The medical examiner indicated the cause of death to be “combined fentanyl, alprazolam, and diazepam intoxication” and that the patient “consumed unprescribed and prescribed prescription drugs in the setting of chronic drug abuse.”
Otellin was believed to have fled the United States to Russia in order avoid prosecution following his indictment by a federal grand jury on September 22, 2021. Otellin possesses dual citizenship in the U.S. and Russia. The U.S. Marshals Service and the U.S. Attorney’s Office for the Southern District of West Virginia worked with INTERPOL Washington to issue an Interpol Red Notice for Otellin. In September 2023, Otellin entered the country of Armenia and was arrested and detained by Armenian authorities. U.S. Marshals took custody of Otellin in Armenia and transported him back to the United States, arriving in Charleston on April 20, 2024. The Justice Department’s Office of International Affairs worked with Armenian authorities to secure the arrest and extradition of Otellin.
Otellin has surrendered his medical license with the West Virginia Board of Medicine.
“Dr. Otellin repeatedly prescribed opiates, stimulants and other drugs outside the normal course of medical practice in communities that continue to suffer from the overdose crisis,” said United States Attorney Will Thompson. “I commend the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) for the investigative work in this case, and the U.S. Marshals Service and the Office of International Affairs for ensuring Dr. Otellin faced justice.”
United States District Judge Irene C. Berger imposed the sentence. Trial Attorney Charles D. Strauss of the U.S. Department of Justice Criminal Division – Fraud Section and Assistant United States Attorneys Owen Reynolds and Andrew D. Isabell prosecuted 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. 2:21-cr-159.
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Former Charleston Physician Sentenced to Prison for Federal Opioid CrimeRead the Press Release
CHARLESTON, W.Va. – Dr. Alexander V. Otellin, 57, formerly of Charleston, was sentenced today to three years in prison, to be followed by three years of supervised release, for the unlawful distribution of oxycodone.
According to court documents and statements made in court, on July 27, 2017, Otellin distributed a quantity of oxycodone to a patient at his psychiatry practice in South Charleston. Otellin admitted that while his specialty was psychiatry, he treated the patient for pain management. Otellin further admitted that this distribution was without a legitimate medical purpose, outside the usual course of medical practice, and without proper authority.
Otellin distributed controlled substances to the patient starting on or about February 6, 2014, until on or about July 15, 2020. During this time period, Otellin knew the patient was receiving opiates from another physician. Urine screens indicated the patient was abusing heroin and fentanyl, yet Otellin continued to prescribe medications that are dangerous when combined with illegal unprescribed drugs.
For the first four years of this time period, Otellin did not review the patient’s medical history for substance abuse or habits or document a review of the database that tracks controlled substance prescriptions. For approximately five months during this time period, Otellin wrote prescriptions for oxycodone and other controlled substances for the patient without evaluating him.
Otellin also prescribed oxycodone to the patient’s wife for pain management instead of referring the patient’s wife to a pain management specialist. Otellin only conducted three urine drug screenings over a five-year period that would have revealed whether the patient’s wife was using the prescription as prescribed, diverting it to her husband, or using other drugs.
At least three pharmacists complained to the Drug Enforcement Administration (DEA) that Otellin’s prescribing practices appeared improper, including when he prescribed the opioid medication buprenorphine at dosages above clinically effective levels. One patient who received above-therapeutic buprenorphine prescriptions from Otellin also received the anti-anxiety medication alprazolam, and the anti-seizure and pain medicine gabapentin from Otellin. This patient died from an overdose at age 41. The coroner indicated the cause of death was “due to Buprenorphine, Alprazolam and Gabapentin Intoxication.”
Another patient of Otellin’s also died from an overdose. Otellin prescribed alprazolam, the sedative zolpidem, and amphetamine salts, used to treat attention deficit hyperactivity disorder, to this patient. The patient’s probation officer notified Otellin in a letter that the patient was exchanging his prescription medication for methamphetamine. A bag of methamphetamine and multiple pill bottles from Otellin’s prescriptions for this patient were found in the patient’s home after his death. The medical examiner indicated the cause of death to be “combined fentanyl, alprazolam, and diazepam intoxication” and that the patient “consumed unprescribed and prescribed prescription drugs in the setting of chronic drug abuse.”
Otellin was believed to have fled the United States to Russia in order avoid prosecution following his indictment by a federal grand jury on September 22, 2021. Otellin possesses dual citizenship in the U.S. and Russia. The U.S. Marshals Service and the U.S. Attorney’s Office for the Southern District of West Virginia worked with INTERPOL Washington to issue an Interpol Red Notice for Otellin. In September 2023, Otellin entered the country of Armenia and was arrested and detained by Armenian authorities. U.S. Marshals took custody of Otellin in Armenia and transported him back to the United States, arriving in Charleston on April 20, 2024. The Justice Department’s Office of International Affairs worked with Armenian authorities to secure the arrest and extradition of Otellin.
Otellin has surrendered his medical license with the West Virginia Board of Medicine.
“Dr. Otellin repeatedly prescribed opiates, stimulants and other drugs outside the normal course of medical practice in communities that continue to suffer from the overdose crisis,” said United States Attorney Will Thompson. “I commend the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) for the investigative work in this case, and the U.S. Marshals Service and the Office of International Affairs for ensuring Dr. Otellin faced justice.”
United States District Judge Irene C. Berger imposed the sentence. Trial Attorney Charles D. Strauss of the U.S. Department of Justice Criminal Division – Fraud Section and Assistant United States Attorneys Owen Reynolds and Andrew D. Isabell prosecuted 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. 2:21-cr-159.
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Former Banking Executive Pled Guilty to Embezzling over $4.2M from Clients and Filing a False Tax ReturnRead the Press Release
TULSA, Okla. – Today, William Shane Garrow, 49, of Tulsa, pleaded guilty to Bank Fraud and Willfully Making and Subscribing a False Federal Income Tax Return.
Garrow was hired by the Bank of Oklahoma in August 2007 and promoted to Senior Vice President. He served as a financial advisor and provided investment and banking services to wealthy banking clients until he was terminated in March 2024.
From September 2012 through April 2024, Garrow admitted to stealing from at least 16 client accounts. Garrow fraudulently transferred funds or issued cashier checks without authorization and consent from his clients and then deposited those funds into accounts that he controlled at other financial institutions. Garrow did not report this extra income to the IRS and falsified his true taxable income.
Garrow further admitted that his actions were wrong and that the funds were used to pay for his lifestyle.
While Garrow is permitted to remain on bond, a federal district court judge will determine his sentence later after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDIC-OIG, IRS Criminal Investigations, and U.S. Secret Service conducted the investigation. Assistant U.S. Attorney David D. Whipple is prosecuting the case.
Florida Man Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Orlando, FL – A Florida man was sentenced yesterday to 41 months in prison for filing false tax returns with the IRS for two consecutive years that he knew underreported his business’s revenue.
According to court documents and statements made in court, Jeremy Charles DeWitte owned and operated Metro State Special Services, a funeral-procession escort business located in Central Florida. DeWitte filed individual income tax returns for 2017 and 2018 that materially understated the revenue he received from operating his business.
In addition to the term of imprisonment, U.S. District Judge Julie S. Sneed ordered DeWitte to serve one year of supervised release and to pay approximately $70,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief David Zisserson and Trial Attorney Curtis Weidler of the Tax Division prosecuted the case with assistance from the U.S. Attorney’s Office for the Middle District of Florida.
Felon from Turtle Creek Pleads Guilty to Possessing FirearmRead the Press Release
PITTSBURGH, Pa. - A resident of Turtle Creek, Pennsylvania, pleaded guilty in federal court to a charge of being a felon in possession of a firearm, United States Attorney Eric G. Olshan announced today.
Deon Dutrieuille, 24, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the Court was advised that, on November 25, 2023, the Monroeville Police Department went to the Monroeville Mall in connection with a retail theft investigation, and found Dutrieuille—who has multiple prior felony convictions—in the driver’s seat of a vehicle wearing a stolen jacket. Dutrieuille, who had an outstanding warrant, ran from police, was apprehended, and was then taken into custody. A later search of Dutrieuille’s vehicle revealed a stolen Glock handgun, with Dutrieuille’s fingerprints on the firearm. Federal law prohibits the possession of a firearm or ammunition by a convicted felon.
Judge Fischer scheduled sentencing for April 15, 2025. The law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Monroeville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Allegheny County Medical Examiner’s Office, conducted the investigation that led to the prosecution of Dutrieuille.
Douglas Man Previously Convicted of Hate Crimes and Arson Sentenced to More than 36 YearsRead the Press Release
TUCSON, Ariz. – Eric Duane Ridenour, 58, of Douglas, was sentenced yesterday by United States District Judge Scott H. Rash to 438 months in prison. On July 11, 2024, Ridenour was convicted at trial of six arson and hate crimes counts stemming from the burning of two churches on May 22, 2023.
In 2023, Ridenour burned down two churches in Douglas, Arizona: Saint Stephen’s Episcopal Church and First Presbyterian Church. The churches were located on Church Square, a historic district in the border town of Douglas, approximately two hours southeast of Tucson. It is believed to have been the only intersection in the nation containing churches from four different denominations: Southern Baptist, Presbyterian, Episcopal, and Methodist. Trial testimony established that Ridenour intentionally started the fires in both churches because of his hostility towards their practice of having women and members of the LGBTQ community serve in church leadership roles. Ridenour was arrested on May 23, 2023.
“This is a case about two separate arsons and the motivations behind each,” said United States Attorney Gary Restaino. “Defendant burned a church because he disagreed with its position that women and LGBTQ individuals may serve as ministers, and then he burned a second church, in the same historic square, for the same reason. Destruction of religious institutions is abhorrent to our Constitution. I add my voice to the prayers for healing in the Douglas community.”
“ATF is dedicated to protecting the rights of all Americans. We strongly share the same concerns of United States Attorney Restaino and the community. The sentencing of Ridenour is a testament to the collaborative work between all agencies involved in this investigation,” said ATF Phoenix Special Agent in Charge Brendan Iber. “We are proud to provide the expertise of the ATF Certified Fire Investigators (CFI) to assist in this prosecution. We remain committed to seeking justice and ensuring the safety of our community”.
“There is no way to undo the damage Mr. Ridenour caused with his hateful and violent behavior, but we hope this sentence provides some measure of comfort,” said FBI Phoenix Special Agent in Charge Jose A. Perez. “We will continue to work with our law enforcement partners to investigate and ensure those who perpetrate such acts of hate are held accountable.”
Vindicating the victim churches’ rights in this case is part of a larger initiative implemented by this Office. With the creation of a Civil Rights unit in the Civil Division, and the designation of a hate crimes coordinator in the Criminal Divisions, U.S. Attorney Restaino has made the prosecution of hate crimes and the protection of civil rights a cornerstone of his tenure in the Office.
On the civil side, the Office’s two civil rights AUSAs have participated in round tables, community meetings, and convenings with community and faith leaders and city and county officials to listen to community concerns and inform the communities about the work of the Office. On the criminal side, as part of the first cohort announced by Attorney General Merrick Garland in September 2022, the Office has participated in the Department’s United Against Hate (UAH) initiative, an effort designed to address and prevent unlawful acts of hate. For its UAH efforts, the Office has held five large-scale events, presenting on the importance of hate crime reporting to various underrepresented and often-targeted communities in Phoenix and Tucson. The purpose of the events was to hear from each community about its fears and concerns, start a dialogue between the communities and law enforcement, and get the USAO out into the communities it serves.
The initiative has also resulted in increased civil rights prosecutions. Hate crimes and other bias incidents are unique because they have a devastating impact on entire communities. The USAO prosecuted Eric Celaya for providing guns to a person who then used them to shoot two Jewish community members in California. Celaya pleaded guilty and was sentenced to eight months in prison. The Office indicted Mark Adams Prieto for selling guns that he believed would be used in a mass shooting to incite a race war. In addition to hate crime charges, the Office has also prosecuted law enforcement agents for harming those they are sworn to protect, such as former Customs and Border Protection Officer Aaron Mitchell, convicted at trial for Deprivation of Rights Under Color of Law arising out of the kidnaping and sexual assault of a cross-border student. This Office remains committed to investigating all potential hate crimes and color of law violations, and working closely with local and federal law enforcement to determine whether charges are appropriate.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Douglas Police Department conducted the investigation in this case. Assistant U.S. Attorneys Austin Fenwick, Ben Goldberg, and Adam Rossi, District of Arizona, handled the prosecution.
CASE NUMBER: CR 23-00908-TUC-SHR
RELEASE NUMBER: 2025-001_Ridenour# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Dominican Man Charged for Allegedly Possessing Assault Rifle and Five Kilograms of Suspected FentanylRead the Press Release
BOSTON – A citizen of the Dominican Republic, who was residing at the Quality Inn Hotel in Revere, Mass., has been charged in federal court in Boston for allegedly possessing five kilograms of suspected fentanyl and an assault rifle.
Leonardo Andujar Sanchez, 28, was charged by criminal complaint with one count of possession with intent to distribute more than 400 grams of fentanyl and one count of being an alien in possession of a firearm who has entered the United States unlawfully. The defendant is currently in state custody on related charges and will appear in federal court in Boston at 12:15 p.m. for an initial appearance.
According to the charging documents, Andujar Sanchez was residing in the Quality Inn in Revere. On Dec. 27, 2024, during a search of the room that Andujar Sanchez was residing in, five kilograms of suspected fentanyl, an AR-style assault rifle, ammunition, two rifle magazines, digital scales and an abundance of latex gloves were allegedly located. Andujar Sanchez was immediately taken into state custody.
The charge of possession with intent to distribute more than 400 grams of fentanyl provides for a sentence of up to life years in prison, at least five years of supervised release, a mandatory minimum of 10 years, and a fine of up to $10 million. The charge of unlawful possession of a firearm provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office and the Revere Police Department. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Des Moines Man Sentenced to 30 Years for Producing and Possessing Child PornographyRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 30 years in federal prison for sexual exploitation and attempted sexual exploitation of a child and for possessing child pornography.
According to public court documents and evidence presented in court, in 2005 and again from at least 2013 to 2015, Jeffrey Walter Gray, 62, exploited and attempted to exploit dozens of minors to produce child sexual abuse material on more than one hundred occasions. One of the ways Gray made child pornography was through the photography business he owned and operated in the Des Moines area—Wicked Imagery. Unbeknownst to his photography clients, Gray placed hidden cameras in the dressing areas at Wicked Imagery’s photography studios to capture videos of minor children undressing. Some of the child pornography Gray created depict children as young as approximately seven years old.
To date, investigators have identified over 20 children depicted in Gray’s collection of child sexual abuse material. Many other children are yet to be identified. Gray also collected material containing child sexual abuse material from the internet. In all, Gray amassed a library of over 10,000 files containing child sexual abuse material, some of which depicted children less than twelve years of age.
After completing his term of imprisonment, Gray will be required to serve a seven-year term of supervised release. There is no parole in the federal system. Restitution to the victims will be determined at a later date.
“Child predators like Gray use trust as a weapon for their own depraved goals. This depravity is only outweighed by the strength and courage of the victims involved in this investigation, and the dedication of the law enforcement officers who brought him to justice,” said United States Attorney Richard D. Westphal of the Southern District of Iowa. “Sexual predators like Gray must and will face accountability and harsh sentences for these crimes of exploitation.”
“Identifying, investigating, and apprehending child predators is one of the FBI’s highest priorities. Today’s sentence ensures that Gray will be held accountable for his horrendous actions,” said Eugene Kowel, Special Agent in Charge of the Omaha FBI Field Office. “We are proud of the work of our agents and task force officers in this case. We will remain vigilant in our pursuit of justice in cases like these, ensuring children are protected and perpetrators are brought to justice by partnering with federal, state, and local law enforcement, serving victims and their families, and providing education and conducting outreach in our community.”
The case was investigated by the Federal Bureau of Investigation and the Des Moines Police Department, with assistance from the Iowa Department of Public Safety-Division of Criminal Investigations.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’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 www.projectsafechildhood.gov.
Choctaw County Resident Pleads Guilty to Distributing MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cory Lamont Bostic, a/k/a Cory L. Neal, age 48, of Hugo, Oklahoma, entered a guilty plea to one count of Distribution of Methamphetamine.
The Indictment alleged that on September 7, 2023, Bostic knowingly and intentionally possessed methamphetamine, a Schedule II controlled substance, which he intended to distribute.
The charges arose from an investigation by the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, and the Choctaw Nation Lighthorse Police.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Bostic will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Jordan Howanitz represented the United States.
Chesapeake hospital indicted for healthcare fraud involving unnecessary surgical proceduresRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging Chesapeake Regional Medical Center (CRMC) with healthcare fraud and conspiracy to defraud the United States and interference with government functions.
As alleged in the indictment, CRMC, formerly known as Chesapeake Regional Hospital, granted privileges to Javaid Perwaiz from 1984 until his arrest in 2019, despite knowing that Perwaiz’ privileges had been terminated at another hospital for performing unnecessary surgeries and that he was convicted of two federal felonies in 1996. From 2010 to 2019, CRMC allegedly received approximately $18.5 million in reimbursements from health care benefit programs for surgical and obstetric procedures Perwaiz performed at the facility.
“After Dr. Perwaiz was convicted of performing irreversible hysterectomies and other medically unnecessary surgeries on women, we continued to investigate the role that CRMC played,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “As alleged in the indictment, Dr. Perwaiz did not act alone in this conspiracy to needlessly sterilize and otherwise harm women. The Grand Jury found today that CRMC was complicit in this horrifying scheme to place profits over patient care.”
Beginning at least as early as January 2010 and continuing until November 2019, CRMC, Perwaiz, and others allegedly conspired to defraud the Centers for Medicare and Medicaid Services, Medicare, Medicaid, the Virginia Department of Medical Assistance Services, and TRICARE. CRMC and Perwaiz allegedly agreed to Perwaiz continually performing surgeries and other procedures at CRMC that were in violation of the rules and regulations of the healthcare benefit programs. CRMC also allegedly defrauded Medicare, Medicaid, TRICARE, Anthem, Optima, Humana, Cigna, Aetna, United, and others to obtain reimbursements for obstetric deliveries that were elective inductions for no medical reason before 39 weeks of gestation, contrary to medical necessity and the standard of care. CRMC allegedly submitted such reimbursements itself, and aided and abetted Perwaiz to do the same.
“These latest charges are the next step toward justice for the women that were significantly impacted by Perwaiz’ predatory actions, as well as the negligence of Chesapeake Regional Medical Center,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The hospital’s prioritization of profits jeopardized the safety of many of their patients, many whom had full trust in them to provide reliable medical care. The FBI and our partners will continue to hold all parties responsible who abuse positions of power in such a manner, and that’s what today’s charges reflect.”
As alleged in the indictment, Perwaiz exclusively performed his obstetric deliveries at CRMC and routinely scheduled them as elective inductions on Saturdays, a day when he was already scheduled to be at CRMC to perform surgeries. To schedule such deliveries, Perwaiz allegedly submitted to CRMC obstetric flowsheets that often had two different delivery dates clearly noted. One due date was accurate and within the standard of care, while the other was fabricated later by Perwaiz to appear that the patient was actually at or after 39 weeks of gestation at the time of induction or cesarean section, when she was not. A review of such forms for Medicaid patients in 2019 allegedly revealed that approximately 64% of forms were altered, resulting in about 39% of his patients of CRMC being induced before 39 weeks of gestation for no medical reason. CRMC employees and practitioners allegedly observed or were made aware of such discrepancies, but nonetheless allowed Perwaiz to continue these practices and continued billing for them.
“As alleged in today’s indictment, CRMC knowingly disregarded patient care and allowed Dr. Perwaiz’s unnecessary surgeries, in order to increase its own revenue,” said Maureen Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners are committed to investigating allegations of patient harm and theft from federal health insurance programs.”
The indictment alleges CRMC knew that Perwaiz routinely and knowingly misclassified inpatient only surgeries as outpatient procedures but allowed him to continue performing these surgeries. CRMC also allegedly knew that certain health care benefit programs would not reimburse a hospital for an inpatient procedure performed on an outpatient basis, that the majority of private health care benefit programs reimbursed such procedures at a significantly lower rate, and that inpatient surgeries required an increased level of scrutiny.
“Ensuring the full measure of justice is brought to all those complicit in the heinous acts committed by Dr. Perwaiz is of the highest priority,” said Special Agent in Charge Christopher W. Dillard of the Defense Criminal Investigative Service, the law enforcement arm of the DoD’s Office of Inspector General. “Today’s announcement demonstrates our commitment to work with our partner agencies to pursue individuals and corporations for fraudulent actions, particularly those that involve patient harm.”
CRMC allegedly routinely allowed Perwaiz to deviate from scheduling policies for non-emergent surgical cases. Perwaiz often scheduled his Saturday surgeries on late Friday afternoons. Perwaiz repeatedly performed sterilizations on Medicaid patients at CRMC without valid consent forms, and CRMC allegedly knowingly allowed him to continue to do so.
The indictment alleges that Perwaiz was a solo practitioner who applied to CRMC for privileges in September 1983. While his application was pending, in December 1983, CRMC’s President, who remained the President/Chief Executive Officer (CEO) until 2005, was notified by Maryview Hospital in Portsmouth that Perwaiz’s privileges at Maryview had been terminated earlier that year for performing unnecessary surgeries. After review of Perwaiz’s application, it is alleged that CRMC’s Department of Surgery initially declared him unacceptable for appointment, but nonetheless granted him privileges in April 1984.
The indictment further alleges that Perwaiz continued to conduct office visits, in-office diagnostic procedures, inpatient and outpatient surgical procedures, and obstetric deliveries at CRMC until his arrest on Nov. 8, 2019. Perwaiz also allegedly performed all his obstetric deliveries and inpatient surgeries, including hysterectomies, and other surgeries and procedures, at CRMC. The vast majority of these procedures allegedly took place on Saturdays when he had a reserved surgical block time at CRMC.
In 1995, Perwaiz was indicted on six counts of felony tax fraud in federal court. He pled guilty to two of the counts, and admitted in public filings to extensive fraudulent conduct, including, among other things, falsely claiming a Ferrari luxury sports car as an ultrasound machine so that he could write it off as a business expense.
In November 2020, Perwaiz was convicted of 52 counts of health care fraud and false statements in health care matters and was sentenced to 59 years in prison. Approximately 38 counts of the convictions were for procedures performed at CRMC, including unnecessary hysterectomies and other invasive and irreversible surgeries, elective inductions prior to 39 weeks of gestation without medical justification, and sterilizations of Medicaid patients without consent forms signed 30 days in advance.
The indictment alleges that CRMC periodically reviewed the credentials of practicing physicians, including Perwaiz, every two years. Perwaiz’s re-credentialing packet allegedly contained information regarding his felony conviction, his prior hospital suspension, and notes regarding medical malpractice lawsuits resulting from procedures he performed at CRMC. It is alleged that CRMC continually re-credentialed Perwaiz approximately every two years between 1984 and 2019. Perwaiz was last re-credentialed in June 2019, just five months before his arrest.
Assistant U.S. Attorneys Rebecca Gantt and Elizabeth M. Yusi are prosecuting the case.
Anyone who believes they may be a victim in this case or who has information regarding this matter is urged to contact the HHS-OIG tipline at 1-800-HHS-TIPS /1-800-447-8477 or online at tips.oig.hhs.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:25-cr-1.
An indictment is merely an accusation. Defendants are presumed innocent until proven guilty.
Charleston Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Thomas McNeil Hedrick II, 36, of Charleston, was sentenced today to five years and 11 months in prison, to be followed by three years of supervised release, for possession of a firearm by a prohibited person.
According to court documents and statements made in court, on November 26, 2023, Hedrick entered a Shrewsbury residence looking for his girlfriend while armed with a Ruger model AR-556 semi-automatic rifle loaded with a 60-round drum magazine and equipped with a bipod. While in the residence, Hedrick repeatedly pointed the rifle at his girlfriend and others while demanding that his girlfriend leave with him.
Hedrick admitted that he knew he was prohibited from possessing firearms, and that he sought to conceal the loaded semi-automatic rifle under his jacket when he entered and left the residence. Hedrick further admitted that surveillance video at the residence captured his actions.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Hedrick knew he was prohibited from possessing a firearm or ammunition because of his prior felony conviction for wanton endangerment in Kanawha County Circuit Court on March 1, 2022.
Hedrick has a criminal history that also includes prior convictions for domestic assault, violation of a protective order, possession of a controlled substance, and being a person prohibited from possessing firearms.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorneys JC MacCallum and Alexander A. Redmon prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the result.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-56.
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Canadian National Sentenced to 40 Months in Prison for Multi Million Dollar Export Control SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Nikolay Goltsev was sentenced by United States District Judge LaShann DeArcy Hall to 40 months’ imprisonment for conspiring to commit export control violations. Goltsev, a Canadian national, masterminded a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. The electronic components shipped by Goltsev were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
Breon Peace, United States Attorney for the Eastern District of New York; Merrick B. Garland, United States Attorney General; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (EEO), announced the sentencing.
“Simply put, Russia cannot effectively manufacture advanced weapons without U.S. technology. Today’s sentence goes a long way in preventing Russia’s access to U.S. electronics for use in the unlawful war against Ukraine,” stated United States Attorney Peace. “My Office is committed to stopping Russia’s illicit acquisition of U.S. technology.”
Mr. Peace also thanked U.S. Customs and Border Protection and the Department of Justice’s Office of International Affairs for their valuable assistance with the investigation.
“Today, Nikolay Goltsev joins the growing list of defendants held accountable for unlawfully procuring and profiting from the sale of U.S. technology to further Russia’s brutal war in Ukraine,” stated Attorney General Garland. “The Justice Department is sparing no effort to ensure that those who violate America’s export controls to feed Russia’s war machine answer for their crimes in American courtrooms.”
“Goltsev’s sentence sends a strong message that those who break our laws and contribute to Russia’s brutal war in Ukraine will be held accountable,” stated Assistant Attorney General Olsen of the Justice Department’s National Security Division. “The Department of Justice will vigorously pursue those who procure the component parts that make Russia’s war machine tick. This case demonstrates that these wrongdoers will be found and punished accordingly.”
“Nikolay Goltsev’s sentencing today sends a message to those seeking to bypass export control laws in support of the Kremlin’s inhumane attacks on Ukraine: HSI will do whatever it takes to prevent U.S. military technology from ending up on the Russian battlefield. HSI’s counter-proliferation investigators work tirelessly to combat the illegal export and proliferation of sensitive U.S. military and dual-purpose technology,” stated HSI New York Special Agent in Charge Walker. “Standing alongside our law enforcement partners, we are committing to stopping the Russian war machine in its tracks.”
FBI Assistant Director in Charge Dennehy stated, “Nikolay Goltsev served as a vehicle to reinforce Russia’s militant efforts against Ukraine through the distribution of electronics to sanctioned entities. Goltsev selfishly prioritized profits from this multi-million-dollar scheme at the expense of safeguarding United States technology against adversarial nations. May today’s sentencing reinforce the FBI's commitment to confront foreign countries which steal our technology to advance their nefarious and warmongering goals.”“Working with our law enforcement colleagues, the Office of Export Enforcement will continue to target networks that facilitate illicit shipments that support Russia’s war. Today’s sentencing is just the latest example of our resolute efforts to target, disrupt and dismantle these networks,” stated Department of Commerce EEO Special Agent in Charge Carson.
Goltsev used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
To carry out the criminal scheme, Goltsev, along with co-defendant Salimdzhon Nasriddinov and others, purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. The co-conspirators then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia. Goltsev’s wife, co-defendant Kristina Puzyreva, laundered the funds of the export control scheme.
Goltsev’s communications show that he had a sophisticated understanding of export control laws. For example, in a message in February 2023, Goltsev advised another co-defendant to “write something more substantial [to the U.S. company] so that there are no more questions.” The co-defendant responded, “is it better to provide them with a Chinese end user,” to which Goltsev stated, “yes should be ok.”
Goltsev’s communications also show that he knew the electronic components were going to Russia for use in Ukraine and support of Russia. In a May 30, 2023 text message conversation with Puzyreva, the defendants discussed a drone attack in Moscow and their support of Russia:
Puzyreva: what is Putin waiting for. He needs to destroy Ukraine.
Goltsev: yeah they’re gonna get f---ed either way.
Puzyreva: He needs to put fear into them. Those losers.
Goltsev: Well the way he is acting they have the right to do the same.
Puzyreva: I hate [ethnic slur for Ukrainians] anyway.
The scheme involved millions of dollars and proved to be lucrative for the defendants. In a text message exchange on or about January 13, 2023, Goltsev complained to Puzyreva that a subordinate of a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.”
The government seized $20,000 in cash from the New York hotel room in which Goltsev was arrested. In total, the government has seized approximately $1.68 million in connection with this export scheme.
On July 24, 2024, co-defendant Kristina Puzyreva was sentenced to 24 months’ imprisonment for conspiracy to launder the proceeds of the export scheme. Co-defendant Salimdzhon Nasriddinov is awaiting sentencing.
The case was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Ellen H. Sise are in charge of the prosecution, along with Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of Paralegal Specialist Mary Clare McMahon. Assistant United States Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
NIKOLAY GOLTSEV
AGE: 38
Montreal, CanadaDefendants Previously Sentenced:
SALIMDZHON NASRIDDINOV
AGE: 54
Brooklyn, NYKRISTINA PUZYREVA
AGE: 33
Montreal, CanadaE.D.N.Y. Docket No. 23-CR-452 (LDH)
Canadian National Sentenced to 40 Months for Multimillion-Dollar Export Control SchemeRead the Press Release
Nikolay Goltsev, 38, of Montreal, Canada, was sentenced today to 40 months in prison for conspiring to commit export control violations. Goltsev masterminded a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. Some of the electronic components shipped by Goltsev were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
“Today, Nikolay Goltsev joins the growing list of defendants held accountable for unlawfully procuring and profiting from the sale of U.S. technology to further Russia’s brutal war in Ukraine,” said Attorney General Merrick B. Garland. “The Justice Department is sparing no effort to ensure that those who violate America’s export controls to feed Russia’s war machine answer for their crimes in American courtrooms.”
“When Russia, its supporters, and its military companies lie and scheme their way around sanctions, they do not just violate the law – they endanger our Ukrainian allies and the freedoms they are fighting to protect,” said Secretary of Homeland Security Alejandro N. Mayorkas. “We cannot allow crimes like those committed by Mr. Goltsev to be ignored; to do so would only increase the risk they will be repeated. I commend the extraordinary Special Agents of Homeland Security Investigations who, alongside their federal and international law enforcement partners, are working diligently and bravely to support the people of Ukraine and hold accountable the perpetrators of Russia’s unlawful, unjust, and unprovoked war of aggression.”
“Today’s sentencing brings accountability to Nikolay Goltsev for his conspiracy to ship millions of dollars of electronics to Russia in support of its unprovoked invasion of Ukraine,” said FBI Director Christopher Wray. “Goltsev and his co-conspirators circumvented U.S. export control laws, used intermediary front companies to hide their crimes, and sold sophisticated electronics to Russia for use in its weapons platforms and signals intelligence equipment. The FBI is committed to working with our partners to investigate, disrupt, and hold accountable those who violate U.S. laws and provide aid to our adversaries.”
“Goltsev’s sentence sends a strong message that those who break our laws and contribute to Russia’s brutal war in Ukraine will be held accountable,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will vigorously pursue those who procure the component parts that make Russia’s war machine tick. This case demonstrates that these wrongdoers will be found and punished accordingly.”
“Goltsev and his wife thought they would ‘get rich’ by running an illicit global procurement scheme to supply sanctioned end users in Russia,” said Acting Assistant Secretary for Export Enforcement Kevin J. Kurland of the Department of Commerce. “Instead, they got jail time.”
“Simply put, Russia cannot effectively manufacture advanced weapons without U.S. technology,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentence goes a long way in preventing Russia’s access to U.S. electronics for use in the unlawful war against Ukraine. Today’s sentencing makes clear that the United States Attorney’s Office is committed to stopping Russia’s illicit acquisition of U.S. technology.”
Goltsev used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
To carry out the defendants’ criminal scheme, Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. The co-conspirators then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia.
Goltsev’s communications show that he had a sophisticated understanding of export control laws. For example, in a message in February 2023, Goltsev advised another co-defendant to “write something more substantial [to the U.S. company] so that there are no more questions.” The co-defendant responded, “is it better to provide them with a Chinese end user,” to which Goltsev stated, “yes should be ok.”
Goltsev’s communications also show that he knew the electronic components were going to Russia for use in Ukraine and support of Russia. In a May 30, 2023 text message conversation between co-defendant Kristina Puzyreva, Goltsev’s wife, the defendants discussed a drone attack in Moscow and their support of Russia:
Puzyreva: what is Putin waiting for. He needs to destroy Ukraine.
Goltsev: yeah they’re gonna get f---ed either way.
Puzyreva: He needs to put fear into them. Those losers.
Goltsev: Well the way he is acting they have the right to do the same.
Puzyreva: I hate [ethnic slur for Ukrainians] anyway.
The scheme involved millions of dollars and proved to be lucrative for the defendants. In a text message exchange on or about Jan. 13, 2023, Goltsev complained to Puzyreva that a subordinate of a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.”
The government seized $20,000 in cash from the New York hotel room in which defendant Goltsev was arrested. In total, the government has seized approximately $1.68 million in connection with this export scheme.
On July 24, co-defendant Kristina Puzyreva was sentenced to 24 months in prison for conspiracy to launder the proceeds of the export scheme. Co-defendant Salimdzhon Nasriddinov is awaiting sentencing.
The BIS, HSI, and FBI are investigating the case. U.S. Customs and Border Protection and Justice Department’s Office of International Affairs provided valuable assistance to the investigation.
Assistant U.S. Attorneys Artie McConnell, Ellen H. Sise, and Laura Mantell for the Eastern District of New York and Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The case was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
California Man Admits Role in $10 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A California man today admitted his role in a kickback scheme that caused more than $10 million in losses to Medicare, Attorney for the United States Vikas Khanna announced.
Adam Wayne Owens, 44, of Riverside, California, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark to one count of a superseding indictment charging him with conspiracy to violate the federal Anti-Kickback Statute.
According to documents filed in the case and statements made in court:
From November 2018 to January 2020, Owens participated in a kickback and bribery scheme with testing companies that arranged for at-home cancer genetic tests (CGX). Owens owned and controlled marketing companies in California through which he and his conspirators identified Medicare beneficiaries to target for CGX testing. Owens and his conspirators provided personal and medical information about the Medicare beneficiaries to the testing companies, which caused CGX testing kits to be sent to the beneficiaries. Once the CGX tests were completed and returned, Owens’ conspirators submitted claims for reimbursement to Medicare. Owens’ companies received kickback payments ranging from $1,700 to $2,000 for each CGX test resulting in Medicare reimbursement.
To conceal the scheme, the testing companies wired various kickback payments to a company in New Zealand, which then wired the payments to bank accounts controlled by Owens in the United States. To further conceal the scheme, Owens entered into a sham contract with the New Zealand company which made it appear that one of Owens’ marketing companies was engaged in and being paid for legitimate marketing and referral services by the New Zealand company. Owens then generated invoices falsely purporting that the marketing company was providing hourly referral services for the New Zealand company. Instead, Owens received payments from the New Zealand company based solely on the number of CGX tests that Medicare reimbursed.
As a result of the kickback scheme, Owens and his conspirators caused a loss to Medicare of more than $10 million.
Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge Brian Driscoll; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Garrett J. Schuman and Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara A. Ward of the Asset Recovery and Money Laundering Unit.
owens.supindictment.pdf
Businessman Sentenced for Theft of Pandemic Relief FundsRead the Press Release
BOSTON – A Massachusetts businessman was sentenced today for misappropriating COVID-19 relief funds for personal use.
Jesse Lelievre, 42, of North Andover, was sentenced by U.S. District Court Judge Denise J. Casper to two years of supervised release, with the first five months as home detention. Lelievre was also ordered to pay $179,090 in restitution. In September 2024, Lelievre pleaded guilty to theft of government property. Lelievre was charged in July 2024.
Lelievre was the owner and manager of Paramount Plumbing & Heating LLC, a Massachusetts company that provided plumbing, heating, and related services (“Paramount”). In 2021, Lelievre applied for a loan from the U.S. Small Business Administration (“SBA”) on behalf of Paramount. Lelievre obtained the loan through the SBA’s Economic Injury Disaster Loan (“EIDL”) program, which provided loans to small businesses that suffered substantial economic injury due to the COVID-19 pandemic. To obtain the loan, Lelievre entered into a loan agreement with the SBA in which he agreed, among other things, to use all loan proceeds solely as working capital for his business. Thereafter, Lelievre directed the EIDL funds into a bank account that he controlled and misappropriated approximately $179,000 for personal expenses, including to buy a diamond ring and to remodel his home.
United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Christopher Algieri, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General made the announcement. Substantial assistance was provided by the U.S. Small Business Administration, Office of Inspector General, Boston Region. Assistant U.S. Attorneys Christopher J. Markham and Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Boise Woman Pleads Guilty to Selling a Man Fentanyl Pills That Caused His DeathRead the Press Release
BOISE – Jerilyn Martel Hupp, 33, of Boise, pleaded guilty to distribution of fentanyl in a case involving a fatality, U.S. Attorney Josh Hurwit announced today. Hupp sold ten fentanyl pills to a man she met online, who subsequently died after ingesting half of a pill containing illicit fentanyl.
According to court records, on August 18, 2023, the victim met Hupp at a hotel and purchased ten fentanyl pills from her. He then went back to his home, ingested half of a fentanyl pill, and died almost immediately. Coroner and pathologist reports showed a blood concentration level of 9.4 ng/ml of fentanyl and concluded the cause of death was fentanyl overdose. In fatalities from fentanyl, blood concentrations are variable and have been reported as low as 3 ng/ml.
Senior U.S. District Judge B. Lynn Winmill will sentence Hupp on April 2, 2025. The charge in this case is punishable by up to 20 years in federal prison, a maximum fine of $1,000,000, and a minimum of 3 years and up to lifetime of supervised release.
U.S. Attorney Hurwit commended the investigations by the Nampa Police Department, the Drug Enforcement Administration, the Boise Police Department, and the Meridian Police Department, which led to the charges. Assistant U.S Attorney David Morse is prosecuting this case.
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Boerne CEO Sentenced to Three Years in Federal Prison for Tax Evasion and Embezzlement of Employee Health Care PremiumsRead the Press Release
SAN ANTONIO – A Boerne woman was sentenced in a federal court in San Antonio to 36 months in prison for embezzling employee health insurance premiums and tax evasion.
According to court documents, Belinda Jo Juarez, 53, was the majority owner and CEO of Superior Home Health Service, a health care company based in San Antonio with additional locations elsewhere. The company offered employees the option to enroll in an employee health insurance plan. Beginning in or around August 2017, Juarez knowingly caused her company to stop remitting insurance payments to the insurance providers but continued to withhold contributions from employee paychecks, even after insurance providers canceled their contracts as the result of non-payment. Juarez’s employees, some of whom who had incurred costs for medical services, were not informed that their insurance coverage had been cancelled or was inactive. As part of the sentence, Juarez was ordered to pay $617,738.65 in restitution to former employees for improperly withheld premiums and resultant medical debts.
Juarez was also sentenced on one count of willful failure to collect or pay over tax for withholding federal payroll tax contributions from her employees’ paychecks and failing to remit the funds to the IRS for time periods between 2016 and 2019. The sentence accounted for over $1 million in personal income tax liability. In total, Juarez was sentenced to pay $3,667,098.88 in restitution to the IRS.
In addition to the restitution and imprisonment, Juarez was fined $20,000 and will serve three years of supervised release at the conclusion of her sentence.
“Protecting the public treasury is one of the primary missions of federal law enforcement,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It is even more important when, as in this case, there is direct harm to civilian victims. Not only did this defendant withhold millions in tax payments to the government, but the ill-gotten gains also came directly from the paychecks of her own employees.”
“Juarez let greed drive her to defraud the government and left her employees to face the horror of losing their health insurance when they needed it most,” said acting Special Agent in Charge Lucy Tan for IRS Criminal Investigation’s Houston Field Office. “This case was referred to us by another IRS division, just as we get tips from the public and requests from other agencies. We pair our law enforcement and accounting skills in order to bring justice to victims because criminal greed doesn’t stop at one tax violation.”
“I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector pension and health plans,” said Dallas Regional Director Deborah Perry for the Department of Labor, Employee Benefits Security Administration (EBSA).
IRS-CI and the EBSA investigated the case.
Assistant U.S. Attorneys Justin Chung and Justin Simmons prosecuted the case.
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Beckley Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Jalen O. Thomas, 27, of Beckley, was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on November 27, 2023, law enforcement officers executed a search warrant at a Beckley residence where Thomas was staying. During the search, officers seized a Smith & Wesson model SD9VE 9mm semiautomatic handgun, a loaded Glock model 17 Gen 5 9mm semi-automatic handgun with an extended magazine capable of holding 40 rounds, and a Taurus .38-caliber revolver. Thomas admitted to possessing the seized firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Thomas knew he was prohibited from possessing a firearm because of his prior conviction for felony fleeing in Cabell County Circuit Court on May 11, 2018.
The Court concluded that Thomas possessed firearms to facilitate drug trafficking. The Glock handgun seized on November 27, 2023, was found on a couch next to a package containing methamphetamine that was delivered to the Beckley residence as part of a controlled delivery shortly before officers executed the search warrant. Investigators intercepted the package before it was delivered, and found it contained over 400 grams of methamphetamine. Investigators removed most of the methamphetamine and replaced it with a sham substance before delivering the package to the residence.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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. 5:23-cr-197.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Devin I. Cresce, 28, of Beckley, pleaded guilty today to distribution of 50 grams or more of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on or about July 13, 2023, Cresce sold approximately 53 grams of methamphetamine to a confidential informant in exchange for $500 while in a vehicle outside the Crossroads Mall in Mount Hope. Cresce admitted to the transaction. Cresce further admitted to selling approximately 80 grams of methamphetamine for $750 on July 18, 2023, approximately 24 grams of fentanyl for $1,800 on July 28, 2023, and approximately 62 grams of methamphetamine for $750 on August 8, 2023. Each distribution occurred at Cresce’s residence and involved the same confidential informant.
On or about August 10, 2023, law enforcement officers executed a search warrant at Cresce’s residence and seized approximately 94.5 grams of fentanyl and 63 grams of methamphetamine. Cresce admitted that he intended to distribute these controlled substances in and around the Southern District of West Virginia.
Cresce is scheduled to be sentenced on May 9, 2025, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5,000,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Central West Virginia Task Force.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons 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. 5:24-cr-92.
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Aurora Man Indicted for Defrauding Surveying Company and $2.3 Million from COVID-19 Relief ProgramsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Mathew Barr, age 50, of Aurora, Colorado, was indicted by a federal grand jury on six counts of wire fraud and two counts of money laundering in connection with schemes to defraud a Colorado surveying company and programs intended to provide emergency relief funds during the COVID-19 pandemic.
According to the indictment, from June 2019 until around November 2022, Barr allegedly defrauded SurvWest, LLC, the surveying company in which he was majority shareholder of, to obtain over $843,452 for his own benefit, including to purchase an Aston Martin convertible, a Land Rover Range Rover Sport, and a Mercedes Benz G63.
The indictment further alleges that Barr participated in a scheme to defraud the Small Business Administration and others to obtain emergency COVID-19 relief funds totaling over $2.3 million during the pandemic.
On January 7, 2025, the defendant made his initial appearance in front of U.S. Magistrate Judge Kathryn A. Starnella.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being investigated by the Internal Revenue Service Criminal Investigation’s Denver Field Office. The prosecution is being handled by Assistant United States Attorneys Taylor Glogiewicz and Craig Fansler.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five 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-results-nationwide-covid-19-fraud-enforcement-action.
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
Case Number: 1:24-cr-00372-DDD
Auburn Man Sentenced to 35 Months for Cocaine Base TraffickingRead the Press Release
PORTLAND, Maine: An Auburn man was sentenced in U.S. District Court in Portland today for distributing cocaine base.
U.S. District Judge John A. Woodcock, Jr. sentenced Devonne Scott, 31, to 35 months in prison followed by three years of supervised release. Scott pleaded guilty on September 19, 2024.
According to court records, in July 2023, a confidential informant reported to the FBI that a man they knew agreed to sell the informant crack cocaine. In August 2023, the informant conducted two controlled buys of suspected cocaine base from Scott with the exchanges monitored and videotaped by the FBI and law enforcement partners. Laboratory tests confirmed the substances purchased contained cocaine base.
The FBI investigated the case, together with the U.S. Drug Enforcement Administration and the Lewiston Police Department.
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Acton Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – An Acton man was sentenced today in federal court in Boston to 20 years in prison for sexual exploitation of children, receipt of child sexual abuse material and possession of child sexual abuse material (CSAM).
Patrick Baxter, 44, was sentenced by U.S. District Court Judge Allison D. Burroughs to 20 years in prison, to be followed by five years of supervised release. In January 2024, Baxter was convicted after a jury trial of one count of possession of child pornography, one count of receipt of child pornography and one count of sexual exploitation of children. Baxter was previously arrested and charged in December 2022.
“Child pornography is not just an image or video, there is an innocent child behind that lens who has been victimized. Each time someone views these images, the victims are revictimized, causing immeasurable harm,” said United States Attorney Joshua S. Levy. “Nothing can reverse the damage that child exploitation does to its victims, but we hope that our commitment to holding perpetrators accountable, will serve as a stark warning to others.”
“Not only did Patrick Baxter amass hundreds of images of child sexual abuse, but he also sexually exploited a seven-year-old child for his own sick gratification,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The FBI and our law enforcement partners are working every day to find and bring to justice anyone actively harming children like this.”
Baxter downloaded CSAM from the internet on multiple occasions in 2021. A computer hard drive seized during a search of Baxter’s residence was found to contain approximately 427 video files depicting CSAM featuring prepubescent and pubescent minors engaged in various types of sexual acts and the lascivious display of their genitals. Baxter also produced CSAM in his home (then in Melrose) of a child known to him.
U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Melrose Police Department and the Royal Canadian Mounted Police. Assistant U.S. Attorneys David G. Tobin and Jessica L. Soto of the Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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.
45 Year Prison Term for Man Who Shot and Killed a 22-Year-Old in Southeast Washington D.C.Read the Press Release
WASHINGTON – Bernard Matthews, 45, of Washington, D.C., was sentenced today to 45 years in prison for the February 16, 2021, shooting of Diamonte Green in Southeast D.C. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court jury found Matthews guilty of first-degree murder while armed, possession of a firearm during a crime of violence, unlawful possession of a firearm and carrying a pistol without a license on August 12, 2024, before the Honorable Michael O’Keefe.
According to the evidence presented at trial, around mid-afternoon, on February 16, 2021, Matthews walked several blocks and sought out the victim, 22-year-old Diamonte Green, who was threatening the defendant’s son via Instagram. The defendant shot the unarmed victim eight times inside the entry way of an apartment building at 33rd and C Street SE, killing him.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It was prosecuted and tried by Assistant U.S. Attorneys Andrea Coronado and Kathleen Gibbons of the U.S. Attorney’s Office for the District of Columbia.
7 January 2025
Владелец Расположенной В Бруклине Кредитной Kонсультационной Компании Приговорен К Более Чем 11 Годам Тюремного Заключения За Мошенничество В Отношении КлиентовRead the Press Release
Сегодня в федеральном суде Бруклина Марат Лернер, бывший президент компании по оказанию услуг по облегчению бремени задолженности, был приговорен Окружным судьей США Николасом Г. Гарауфисом [Nicholas G. Garaufis] к 135 месяцам тюремного заключения за сговор с целью совершения мошенничества с использованием электронных средств сообщения и за мошенничество с использованием электронных средств сообщения. Лернер также был осужден за продолжение деятельности по реализации своей преступной схемы в период досудебного освобождения. Лернер был приговорен к конфискации около 2 340 154 долларов в пользу государства. Размер возмещения убытков для жертв его преступлений будет определен позднее. Лернер признал себя виновным по этим обвинениям в феврале 2024 года.
Бреон Пис, Прокурор США Восточного округа Нью-Йорка, ДжеймсE. Деннехи [James E. Dennehy], помощник Директора Федерального бюро расследований (FBI) в Региональном управлении Нью-Йорка, и Гарри Т. Чавис младший [Harry T. Chavis, Jr.], Специальный агент в Региональном управлении Нью-Йорка Отдела расследований по уголовным делам Налогового управления США (IRS-CI), объявили приговор.
«Сегодня ответчик узнал, что существуют серьезные последствия за кражу денег своих клиентов, даже после его ареста, и безжалостную трату похищенных средств на роскошный автомобиль для себя, онлайн знакомства и дорогие обеды и ужины», – заявил Прокурор США Пис. «Его жертвами стали трудолюбивые люди, многие из которых выходцы из стран Восточной Европы, обратившиеся к нему за помощью, чтобы спасти свои дома и средства к существованию. Вместо оказания им помощи Лернер воспользовался их доверием и уязвимостью для кражи их денег. Лернер продолжал совершать свои преступления, даже когда он знал, что его действия привели к утрате жертвами его преступлений своих домов или к вынужденным объявлениям о банкротстве. Прокуратура намерена защищать население от недобросовестных консультантов, подобных Лернеру».
«Марат Лернер украл 2,5 миллионов долларов у уязвимых в финансовом отношении клиентов и довел нескольких из них до банкротства после того, как он направил их деньги на финансирование своих личных роскошных покупок вместо обеспечения обещанного снижения платежей по ипотеке», – заявил специальный агент FBI Деннехи. «Лернер предал доверие жертв своих преступлений, безжалостно продолжая использовать эту мошенническую схему даже после его первоначального ареста. Благодаря постоянной поддержке со стороны Полицейского управления Нью-Йорка (NYPD) и Таможенно-пограничной службы США (CBP), FBI продолжает расследовать дела преступников, использующих пустые обещания, чтобы нажиться на представителях социально незащищенных групп населения ради удовлетворения собственной жадности».
«Лернер жил роскошной жизнью, присваивая деньги людей в своем собственном сообществе», – заявил специальный агент IRS-CI Чавис. «Его подпольная брокерская деятельность не была простой денежной аферой; она приводила к тому, что жертвы не выплачивали ипотечные кредиты, а некоторые оказывались в ситуации изъятия банком заложенного под ипотечный кредит имущества. Сегодняшний приговор должен стать напоминанием всем, кто наживается на других ради удовлетворения собственных алчных желаний: вас поймают, вас будут преследовать по закону, и вы отправитесь в тюрьму за свои преступные деяния».
Согласно судебным документам и фактам, представленным во время слушания по вынесению приговора Лернеру, ответчик был владельцем компании Lerner Group, которая заявляла, что она предоставляет услуги по облегчению бремени задолженности, включая изменение условий ипотечного кредита, в основном для лиц в восточноевропейской иммигрантской общине в Бруклине. Многие из жертв, обманутых Лернером, уже испытывали финансовые затруднения и специально обращались к Лернеру за помощью, чтобы снизить свои ежемесячные выплаты по ипотеке. Лернер, в свою очередь, обещал, что он поможет им снизить ежемесячные ипотечные платежи, работая с их ипотечными кредиторами, чтобы добиться изменения условий ипотечного кредита или получения федеральной помощи домовладельцам. Для осуществления мошенничества Лернер получал доступ к банковским счетам своих жертв, которые, как он утверждал, будут использоваться для выплат ипотечным банкам от имени клиентов.
Лернер использовал доступ к банковским счетам своих жертв для хищения около 2,5 миллиона долларов – деньги, которые, как полагали его 19 жертв, использовались для оплаты их ипотечных кредитов. Получив доступ к банковским счетам своих жертв, Лернер переводил средства с их счетов в подконтрольные ему компании и/или банковские счета. Лернер прикрывал свое мошенничество, заявляя, что денежные средства находятся на условном депонировании или в филиалах ипотечных банков. На деле же Лернер оставлял себе большую часть денег и тратил их на личные и деловые расходы, включая автомобиль BMW, предметы роскоши и дорогие обеды и ужины. Лернер довел нескольких своих клиентов до вынужденной необходимости заявить о банкротстве во избежание изъятия банком заложенного под ипотечный кредит имущества, и в результате его преступной схемы несколько его жертв находятся в процессе изъятия банком заложенного под ипотечный кредит имущества.
В январе 2023 года Лернер был арестован в связи с мошенничеством и освобожден под залог. Ему были даны указания не совершать дополнительных преступлений. Однако Лернер незамедлительно открыл новые банковские счета и продолжил осуществление своей преступной схемы. После ареста по этому делу Лернер похитил у своих клиентов еще как минимум 50 000 долларов. В сентябре 2023 года постановление об освобождении Лернера под залог было отменено после того, как большое жюри предъявило Лернеру дополнительное обвинение в совершении дополнительных преступлений.
Государственное обвинение находится в ведении Отдела по борьбе с мошенничеством в сфере бизнеса и ценных бумаг Прокуратуры США. Помощник прокурора США Ник М. Аксельрод [Nick M. Axelrod] и бывший помощник прокурора США Дженни Нгаи [Genny Ngai] отвечали за ведение этого дела.
Ответчик:
МАРАТ ЛЕРНЕР
Возраст: 42
Бруклин, Нью-ЙоркНомер дела E.D.N.Y. 23-CR-15 (S-1) (NGG)
Windham Man Sentenced to 15 Years, Ordered to Pay $108,000 in Restitution for Possessing, Distributing Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: A Windham man was sentenced today in U.S. District Court in Portland for distributing and possessing child sexual abuse material.
U.S. District Judge Nancy Torresen sentenced Cote Noonan, 33, to 180 months in prison to be followed by 10 years of supervised release. He was also ordered to pay $108,000 in restitution to victims. Noonan pleaded guilty on June 5, 2024.
According to court records, in October 2023, Noonan, using the username “Femboy Cassidy,” sent an undercover FBI agent three child sexual abuse material videos using the instant messaging application TeleGuard. The videos showed the sexual abuse of young victims, including an infant. The agent also observed “Femboy Cassidy” share similar photos and videos on two other occasions in a trading room for child sexual abuse material. During the investigation, Noonan admitted to operating the “Femboy Cassidy” account and informed investigators that they would find child sexual abuse material on his electronic devices. He also admitted to sexually abusing a child on multiple occasions and recording that abuse. The FBI seized several devices from Noonan’s residence, four of which contained thousands of known child sexual abuse material images and videos. Many of these images and videos showed the sexual abuse of toddlers and infants. The FBI did not locate any photos or videos documenting the hands-on sexual abuse described by Noonan.
The FBI investigated the case.
“Mr. Noonan admitted to a long and disturbing history which includes viewing and downloading child sexual abuse materials for more than two decades, in addition to engaging in illicit sexual contact with children,” said U.S. Attorney Darcie N. McElwee. “This sentence will protect children from being victimized and hopefully offer some measure of justice to those he exploited.”
“Simply put, Cote Noonan is a predator,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “He amassed tens of thousands of images of young children being sexually abused and shared them online. During our investigation, he also admitted to sexually abusing a child. It’s vital that he’s locked away where he can’t hurt any more kids. The FBI and our partners won’t ever stop fighting to protect children from being so horrifically exploited.”
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Virginia contractor to pay over $2.6M to settle allegations of falsely obtaining small business contractsRead the Press Release
NEWPORT NEWS, Va. – R&K Enterprises Inc. (R&K), headquartered in Newport News, has agreed to pay over $2.6 million to resolve allegations under the False Claims Act and the common law that the company represented that it was eligible for certain small business set-aside contracts when it did not meet the program rules to qualify as a small business.
The United States alleged that R&K represented and certified in its bid that it met the size standard for the General Services Administration’s One Acquisition Solution for Integrated Services Small Business Pool 1 Contract — measured in average revenue over the previous three years from the date of the bid — when it did not. To appear to meet the size standard, R&K allegedly novated a contract to another company, K&P Management Inc. (K&P), and represented the two companies were not affiliated. The United States alleged that, under the applicable rules, the two companies were affiliated based on several factors, including that the wife of R&K’s owner owned K&P, all of K&P’s purported revenue came from R&K, the two companies shared executives, and R&K exercised control over K&P. As a result, the United States contended that R&K should have included K&Ps revenue in R&K’s calculation of its size.
“My office is committed to identifying, investigating and eradicating attempts to exploit programs intended to protect competition for contracts,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “The complex, multi-agency investigation that culminated in this settlement exemplifies the importance of strong partnerships that maximize our expertise and authority to effectively enforce the law.”
“Small business set-aside contracts assist small businesses to compete,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies fraudulently obtain contracts reserved for small businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”
“We will work with law enforcement partners to investigate allegations of small business fraud, including companies that misrepresent their status to get federal contracts,” said Deputy Inspector General Robert C. Erickson of the General Services Administration (GSA).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Division’s Commercial Litigation Branch, Fraud Section with assistance from the GSA Office of Inspector General, Small Business Administration and Department of Transportation Office of Inspector General.
Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia and Trial Attorney Danielle Rowan of the Justice Department’s Civil Division investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Virginia Contractor to Pay over $2.6M to Settle Allegations of Falsely Obtaining Small Business ContractsRead the Press Release
R&K Enterprises Inc. (R&K), headquartered in Newport News, Virginia, has agreed to pay over $2.6 million to resolve allegations under the False Claims Act and the common law that the company represented that it was a small business eligible for certain small business set-aside contracts when it did not meet the program rules to qualify as a small business.
The United States alleged that R&K represented and certified in its bid that it met the size standard for the General Services Administration’s One Acquisition Solution for Integrated Services Small Business Pool 1 Contract — measured in average revenue over the previous three years from the date of the bid — when it did not. To appear to meet the size standard, R&K allegedly novated a contract to another company, K&P Management Inc. (K&P), and represented the two companies were not affiliated. The United States alleged that, under the applicable rules, the two companies were affiliated based on several factors, including that the wife of R&K’s owner owned K&P, all of K&P’s purported revenue came from R&K, the two companies shared executives and R&K exercised control over K&P. As a result, the United States contended that R&K should have included K&Ps revenue in R&K’s calculation of its size.
“Small business set-aside contracts assist small businesses to compete,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies fraudulently obtain contracts reserved for small businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”
“My office is committed to identifying, investigating and eradicating attempts to exploit programs intended to protect competition for contracts,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “The complex, multi-agency investigation that culminated in this settlement exemplifies the importance of strong partnerships that maximize our expertise and authority to effectively enforce the law.”
“We will work with law enforcement partners to investigate allegations of small business fraud, including companies that misrepresent their status to get federal contracts,” said Deputy Inspector General Robert C. Erickson of the General Services Administration (GSA).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia with assistance from the GSA Office of Inspector General, Small Business Administration and Department of Transportation Office of Inspector General.
Trial Attorney Danielle Rowan of the Justice Department’s Civil Division and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Violent Waterbury Gang Member Sentenced to 35 Years in Federal PrisonRead the Press Release
DAYQUAIN SINISTERRA, also known as “Quan,” 27, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 420 months of imprisonment, followed by three years of supervised release, for offenses stemming from his participation in the 960 gang, a violent Waterbury street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo.
According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Sinisterra and 15 other 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses.
On March 13, 2024, Sinisterra pleaded guilty to one count of racketeering conspiracy, six counts of attempted murder and assault with a dangerous weapon in aid of racketeering, and three counts of carrying and using a firearm during and in relation to a crime of violence.
Sinisterra specifically admitted that he and other 960 members were engaged in violent activity and conspired to shoot and murder members of rival gangs, including:
- On September 21, 2018, in retaliation for the murder of an associate, Sinisterra and other 960 members participated in drive-by shootings of occupied residences on Lounsbury Street and Scott Road in Waterbury.
- On October 6, 2018, in a drive-by shooting, Sinisterra and other gang members attempted to murder individuals believed to be members of a rival gang, which resulted in gunshot wounds to an individual.
- On October 11, 2018, in an effort to murder rival gang members, Sinisterra and other gang members participated in a drive-by shooting that resulted in the death of an innocent bystander, 30-year-old Fransua Guzman, and the paralysis of a second victim.
- On November 1, 2018, Sinisterra shot a rival gang member.
- On November 18, 2018, Sinisterra and other gang members participated in a drive-by shooting of rival gang members, which resulted in gunshot wounds to two individuals.
Sinisterra has been detained since November 21, 2018.
This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, Waterbury Police Department, ATF, and U.S. Marshals Service, with the assistance of the Southington Police Department, Watertown Police Department, New Milford Police Department, Connecticut State Police, Connecticut Department of Correction, Connecticut Forensic Science Laboratory, and the DEA Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo, who were cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is 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.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorney Talbert Announces His ResignationRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert has announced his resignation effective midnight on Jan. 11, 2025. Talbert has served as the Presidentially appointed U.S. Attorney for the Eastern District of California for two and a half years.
“It has been the honor of my lifetime to serve as the United States Attorney for the Eastern District of California, the district where I served as a federal prosecutor for two decades,” said Talbert. “I thank President Biden for nominating me to the position and am grateful to the late Senator Dianne Feinstein, Senator Alex Padilla, and Attorney General Merrick Garland for their support and confidence in me to lead this office of dedicated public servants. It has been a privilege to work alongside the talented attorneys and staff of this office as well as with our federal, state, and local law enforcement partners to protect the over 8 million residents who live in our district, to seek justice on behalf of victims, to safeguard civil rights, and to uphold the rule of law. After my departure, I am confident the office will continue to perform at a high level of excellence and will continue to demonstrate its commitment to pursuing justice in a fair, ethical, and nonpartisan manner, with a clear understanding of the need to maintain the public’s confidence and trust.”
The United States Attorney serves as the chief federal law enforcement officer and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras and has almost 100 attorneys and almost 100 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.
Upon Mr. Talbert’s resignation, Michele M. Beckwith will become the Acting U.S. Attorney for the Eastern District of California pursuant to the Vacancies Reform Act. Ms. Beckwith is a veteran federal prosecutor who served as First Assistant U.S. Attorney to Mr. Talbert and earlier as Executive Assistant U.S. Attorney and Criminal Chief.
U.S. Attorney Talbert has served the Department of Justice for more than 31 years, and over the last 14 years he has made a lasting mark on the Eastern District of California through his steady, team-oriented, and innovative leadership. He first assumed the role of First Assistant U.S. Attorney in the office in 2011, and later led the office for almost two years in 2016-2017 as the Acting and Interim U.S. Attorney. He returned to the First Assistant U.S. Attorney position in 2017, and then again led the office as the Acting and Interim U.S. Attorney in 2021-2022 before being confirmed as the Presidentially appointed U.S. Attorney in June 2022. His stalwart leadership throughout changes in Administrations and within the U.S. Attorney’s Office embodies the office’s commitment to excellence and its enforcement of federal law without bias and unaffected by partisanship.
At the national level, Mr. Talbert also served the U.S. Department of Justice through multiple subcommittees and working groups, including the Civil Rights Subcommittee and its Hate Crimes Working Group, the Controlled Substances Subcommittee and its Prevention Working Group, the Office of Management and Budget Subcommittee, and the Resource Allocation Working Group.
Previously, Mr. Talbert served as an Assistant U.S. Attorney in this district, first in the Narcotics and Violent Crime Unit in Sacramento where he prosecuted drug trafficking cases and then as the Chief of Appeals and Training in which he supervised the office’s appellate practice and trained incoming Criminal Division Assistant U.S. Attorneys. Mr. Talbert also taught professional responsibility for four years as an adjunct professor at the U.C. Davis School of Law.
Prior to joining the U.S. Attorney’s Office, Mr. Talbert worked as a Trial Attorney in the Criminal Division of the U.S. Department of Justice in Washington, D.C. after being hired in the Attorney General’s Honors Program; as an attorney at the law firm of Stoel Rives LLP in Seattle, Washington, in the firm’s Litigation Department and White Collar Defense Practice Group; and as an Assistant Counsel and Associate Counsel at the Office of Professional Responsibility of the U.S. Department of Justice where he investigated claims of prosecutorial misconduct and other allegations made against Department of Justice attorneys. He also served as a law clerk to the Honorable David R. Thompson (deceased), Circuit Judge, United States Court of Appeals for the Ninth Circuit.
Mr. Talbert received his Bachelor of Arts, magna cum laude in Economics, from Harvard University; his Master of Economics from the University of Sydney, Australia, which he attended on a Rotary Foundation Scholarship; and his Juris Doctor from the UCLA School of Law where he was the Chief Articles Editor for the UCLA Law Review.
Notable criminal cases the office has handled under U.S. Attorney Talbert’s leadership include:
- Criminal prosecutions of major frauds, including cases against the two co-founders and co-CEOs of Bitwise Industries, who received 11-year and 9-year sentences for a $115 million fraud centered on a failed Fresno-based tech startup; a former congressman charged with fraud in conducting his private business dealings; the owner of a chain of supermarkets who allegedly employed undocumented workers then used their immigration status to avoid paying for overtime; and a former local water district manager convicted of a long-running scheme to divert and sell managed water.
- Investigations and cases undertaken in concert with federal, state, and local law enforcement partners to reduce violent crime, including prosecution of MS-13 and Aryan Brotherhood defendants who committed and directed murders, other violent crimes, and drug trafficking crimes, and the prosecution of illegal firearms trafficking schemes, including a ring alleged to have illegally brought over 500 guns from Georgia to the Eastern District of California and another unrelated scheme that allegedly resulted in the sale of over 100 guns used in crimes across California and neighboring states.
- Cases targeting individuals who prey upon and sexually exploit children, including multiple defendants who extorted minors online for child sexual abuse material, multiple defendants who used hidden recording devices to surreptitiously film children in various stages of undress, and a defendant sentenced to 30 years for the sex trafficking of a minor.
- The indictment of two individuals, leaders of the Terrorgram Collective, for allegedly soliciting over Telegram the murder of federal officials and mass hate crimes as well as other federal crimes.
- The investigation and indictment of individuals operating major drug trafficking organizations in and through the district, including one case that led to seizures of 12,900 pounds of methamphetamine, 23 kilograms of fentanyl, and 35 firearms, and another case involving counterfeit pills containing fentanyl trafficked by a defendant who called himself the “M30 king of Fresno.”
- Cases targeting individuals who defrauded the state and federal government out of millions of dollars of pandemic relief funds intended for people and companies legitimately needing the assistance, including a former gang member serving a life sentence for murder in state prison who allegedly attempted a $550 million COVID relief tax credit fraud scheme while he was simultaneously directing a methamphetamine trafficking organization operating outside of prison walls.
- Cases protecting the environment, including the indictment of a group of defendants who allegedly conspired to create, distribute, and use a sophisticated software system to obtain passing smog check tests for vehicles that would otherwise fail, in violation of the Clean Air Act, and cases against others who distributed defeat devices that unlawfully interfered with the emissions control systems in trucks.
- The indictment of eleven “burglary tourists” alleged to have used blowtorches and cellphone jammers to commit a string of bank robberies in multiple states.
- Criminal prosecutions of law enforcement officers violating victims’ civil rights while acting under color of law, including a state prison guard who assaulted two inmates, resulting in one’s death, and later with fellow officers engaged in an attempted coverup, and a police officer alleged to have abused his official position to sexually assault women.
- Cases against perpetrators of violent crimes, including sexual assaults, in Yosemite National Park.
- Prosecution and conviction of 20 individuals in a series of cases involving corruption at the California Department of Motor Vehicles.
Notable civil cases the office has handled under U.S. Attorney Talbert’s leadership include:
- Multiple cases of health care fraud, including the following: Health Net Federal Services paid more than $97 million for overstated billings to the Veteran’s Administration; Nor-Cal Pharmacies Inc. was shut down and ordered to pay $1 million for dispensing oxycodone and hydrocodone based on invalid prescriptions; Oroville Hospital is to pay $10.25 million for paying kickbacks to physicians in order to increase hospital admissions and admitting patients for whom they knew inpatient care was not medically necessary; and Dr. Francis Lagattuta and his clinic agreed to pay $11.4 million for billing for allegedly medically unnecessary skin biopsies, spinal cord stimulation surgeries, and urine drug testing.
- Recoveries for damage to federal lands based on negligently caused forest fires, including a $117 million payment by PG&E relating to the 2018 Camp Fire.
- Multiple civil settlements for fraud in COVID relief programs.
- A case resulting in a $3.1 million settlement for the manufacture and sale of illegal devices to circumvent emission control systems of diesel trucks.
- The opening of a civil rights investigation with the Civil Rights Division into allegations of sexual abuse of inmates by staff at California’s largest women’s prison.
Throughout his time in the office, Mr. Talbert participated in and supported the development of the office’s community outreach program, especially in the area of interfaith outreach, working to build strong community bonds among various groups and between those groups and law enforcement. He launched the Fresno Area Hate Crimes Task Force, modeled on the successful Sacramento Area Hate Crimes Task Force which he also led, and he worked to increase the public’s awareness of the threat and impact of hate crimes, the importance of reporting them to law enforcement, and the need for different parts of the community and law enforcement to stand up to acts of hate together. Within the federal court family, he ensured that the U.S. Attorney’s Office took a leadership role through its innovative Special Emphasis Program to raise awareness of issues impacting all parts of the community and to further develop leadership opportunities for women lawyers. He also helped create the Sacramento Region Diversity Career Fair, the first legal career fair in the area connecting diverse law students and newer lawyers with prospective employers, and he helped establish the fair as an annual event for three years running.
U.S. Transfers $50M in Forfeited Assets to the Republic of Estonia in Recognition of Assistance in the Danske Bank Prosecution and ForfeitureRead the Press Release
The Justice Department announced today that it entered into an agreement to share $50 million in forfeited assets with the Republic of Estonia (Estonia) in recognition of Estonia’s assistance in the successful prosecution of Danske Bank and related forfeiture.
“Coordinating with our foreign law enforcement counterparts is critical in the fight against complex financial crime — which now, more than ever before, is transnational in nature,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Today’s agreement to share $50 million in forfeited funds with Estonia recognizes Estonia’s valuable contribution to the successful U.S. prosecution of Danske Bank, which pleaded guilty for lying to U.S. banks about its inadequate anti-money laundering controls and high-risk, offshore customer base to gain access to the U.S. financial system. Estonia’s pledge to use the funds to combat financial crime, enhance asset recovery, and facilitate international cooperation reflects both countries’ commitment to invest in our vital law enforcement relationship to tackle complex cross-border crime.”
In December 2022, Danske Bank pleaded guilty to one count of conspiracy to commit bank fraud in a scheme to defraud U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system. According to admissions and court documents, Danske Bank Estonia had a lucrative business line serving non-resident customers, whom it attracted by ensuring that those customers could transfer large amounts of money through Danske Bank Estonia with little, if any, oversight. Under the terms of the plea agreement, Danske Bank agreed to forfeit $2.059 billion. The Justice Department agreed to credit approximately $850 million in payments Danske Bank made in a coordinated criminal resolution with Danish authorities and a coordinated civil resolution with the U.S. Securities and Exchange Commission and forfeited approximately $1.2 billion. Estonia provided valuable law enforcement assistance in the Danske Bank investigation and ultimate resolution and forfeiture by providing evidence obtained in its investigation of individuals and in response to requests from U.S. authorities.
Under the agreement announced today, Estonia will use the funds to strengthen its capacity to fight financial crime. The shared funds must be used to 1) prevent, detect, investigate, and prosecute financial crime in all its forms, including money laundering, fraud, cybercrime, corruption, and terrorist financing; 2) provide cyber forensics, forensic accounting, counterintelligence, and other specialized education and training across the Baltic States and Nordic region, including as may be appropriate through a training center and collaboration with the United States; 3) enhance compliance with requirements and effective practices for combatting money laundering and the financing of terrorism, strengthen regulatory and administrative controls against money laundering and terrorist financing, and increase public awareness regarding financial crimes, white-collar crime, and financial fraud; and 4) enhance Estonian confiscation procedures and strengthen international cooperation in confiscation matters.
The agreement contains key measures to ensure transparency and accountability. Under the agreement, Estonia will establish an Implementing Commission composed of the heads of the Estonian Ministries of Justice and Digital Affairs, Internal Affairs, and Finance that will oversee the administration of funds and projects. In addition, expenditures will be subject to review by an independent external auditor. In recognition of the important bilaterial relationship of Estonia and the United States and their critical cooperation in law enforcement matters, the United States will serve as an advisor to the Implementing Commission.
Danske Bank was prosecuted by the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the U.S. Attorney’s Office for the Southern District of New York. The FBI investigated the case. The Justice Department’s Office of International Affairs provided critical assistance.
The Criminal Division, through MLARS’ International Unit, administers the Justice Department’s international asset forfeiture sharing program. Pursuant to federal law, and in coordination with the Departments of the Treasury and State, the Attorney General may share proceeds of successful forfeiture of property with foreign countries that participate in the seizure or forfeiture of the property.
U.S. Attorney Jane E. Young Announces the Appointment of the Deputy Chief of the Criminal Division, Internal Transfers, and the Creation of an External Engagement DivisionRead the Press Release
CONCORD – United States Attorney Jane E. Young announces the appointment of Assistant United States Attorney (AUSA) John Kennedy as the Deputy Chief of the Criminal Division, the internal transfers of AUSA Kasey Weiland to the Civil Division and AUSA Matthew Vicinanzo to the Criminal Division, and the creation of an External Engagement Division at the United States Attorney’s Office for the District of New Hampshire.
AUSA John Kennedy has been appointed as the Deputy Chief of the Criminal Division. He has more than a decade of experience as a prosecutor in New Hampshire, as an Assistant United States Attorney and as an Assistant Attorney General. In these roles, AUSA Kennedy has led investigations in connection to a variety of federal and state crimes, including homicides, voter fraud and public integrity crimes, drug and firearm crimes, and complex financial fraud. He is a graduate of Notre Dame Law School.
“John is a veteran prosecutor whose broad legal knowledge and trial skills will assist in leading the Criminal Division,” said U.S. Attorney Young. “He is an exceptional attorney that has tackled a variety of challenging cases. His hard work and unwavering pursuit of justice for crime victims have earned him the respect of his colleagues and law enforcement partners.”
AUSA Kasey Weiland has transferred to the Civil Division and AUSA Matthew Vicinanzo has transferred to the Criminal Division. AUSA Kasey Weiland has had a notable career at the U.S. Department of Justice, prosecuting some of the most egregious crimes targeting children in the District of New Hampshire and the Western District of Tennessee. AUSA Matthew Vicinanzo joined the United States Attorney’s Office in 2023 from private practice as an AUSA dedicated to civil and criminal Civil Rights matters.
“Kasey will bring her legal acumen to her civil litigation portfolio, while Matt will bring his broad investigatory skills to his criminal portfolio,” said U.S. Attorney Young. “I am confident that both Kasey and Matt will continue to thrive in their new positions.”
Additionally, U.S. Attorney Young announces the creation of an External Engagement Division and has appointed Jessica Kuron to lead the division. During U.S. Attorney Young’s tenure, the U.S. Attorney’s Office has been focused on strengthening and expanding law enforcement partnerships, community outreach efforts, and accessibility to public information. Since May 2022, among other actions, the U.S. Attorney’s Office utilized federal programs and national expertise to offer 18 law enforcement trainings at no-cost to the U.S. Attorney’s Office and police departments across the district. These trainings focused on honing New Hampshire law enforcement’s understanding of legal, investigative, and effective community policing topics, including trainings on Miranda warnings, dark web investigations, pre-indicators of violent assault, suicide prevention for all layers of law enforcement, and best practices for engaging with faith-based communities. The U.S. Attorney’s Office has also become a leader in addressing emerging public safety concerns, such as elder fraud and scams, bank fraud, and hate crimes, by participating in more than 30 community awareness events.
The External Engagement Division will allow the U.S. Attorney’s Office to expand its external engagement footprint to include supporting victims in federal cases. The division aims to bridge the gap between the office’s prosecution function and impact of the underlying crimes on communities by offering additional services. With additional resources, the division will expand the office’s training program as well as partnerships for grant funding. The External Engagement Division will also oversee a new student program focused on providing federal government work experience to undergraduate students studying criminal justice, political science, and communications. The student program will allow the office to expand engagement to colleges and universities in the Granite State and allow staff to provide mentorship to the next generation of public servants.
“Since May 2022, the U.S. Attorney’s Office has prioritized strengthening partnerships with law enforcement, the media, and communities throughout New Hampshire. We have focused our efforts on enhancing access to this office and amplifying visibility into the great work performed here every day. The creation of an External Engagement Division will enable the U.S. Attorney’s Office to continue expanding its services to the public and our partners throughout the Granite State in the years ahead,” said U.S. Attorney Jane E. Young. “The positive impact that this office has had on engagement with our law enforcement and community partners is in large part due to the tireless efforts of Jess Kuron. I know that the External Engagement Division will continue to flourish under Jess’s tutelage.”
As Chief of the External Engagement Division, Ms. Kuron will continue to serve as an advisor to the U.S. Attorney, as the office’s spokesperson, and as the liaison for law enforcement in the District of New Hampshire. She will also lead a team of professional and support staff focused on advocating for victims of federal crimes, coordinating witnesses for trials, supporting members of the public in contact with the office, and with trainings and community outreach.
Positions in the External Engagement Division are vacant. Job solicitations will be posted on USAJobs.gov and on the United States Attorney’s Office for the District of New Hampshire’s LinkedIn page as they become available at www.linkedin.com/company/usao-nh.
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Richland County Man Sentenced to Federal Prison for Unlawful Firearm PossessionRead the Press Release
COLUMBIA, S.C. — Joseph Nayquan Kelly, 30, of Eastover, was sentenced to more than six years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on Dec. 28, 2021, Richland County Sheriff’s Department deputies conducted a traffic stop on a vehicle for a license plate that came back to another type of vehicle. Kelly was a passenger in the vehicle. During that traffic stop, deputies smelled the odor of marijuana and the driver of the vehicle admitted there was a small amount of marijuana in the car. Deputies searched the vehicle and found approximately 1 pound of marijuana in a shoebox alongside a 9mm pistol with an extended magazine that had been reported stolen. Kelly claimed ownership of that pistol and the marijuana. The court ultimately held him responsible for possession of several other pistols as well as for a reckless vehicle pursuit in other incidents. Kelly is convicted felon and is unable to lawfully possess firearms or ammunition.
United States District Judge Mary Geiger Lewis sentenced Smith to 78 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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. Notably, Kelly was a prior participant in the City of Columbia’s Project Ceasefire initiative, which works to put at-risk probationers in connection with a variety of social service providers in and around Columbia with the goal of preventing recidivism but also stresses that consequences will be more significant if they choose to re-offend. Kelly’s sentence in this case is more than double the length of his longest previous sentence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richland County Sheriff’s Department, and the Columbia Police Department. Special Assistant U.S. Attorney Matthew R. Sanford is prosecuting the case.
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Repeat Sex Offender Sentenced to 16 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua Sherwood, 34, of Arpin, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 195 months in federal prison for receiving child pornography. This term of imprisonment will be followed by 25 years of supervised release. Sherwood pleaded guilty to this charge on November 4, 2024.
Shortly after being released from state prison for possessing child pornography, Sherwood began reaching out to minor girls across the country, manipulating them into producing sexually explicit images for him by sending them money and items from their Amazon wish lists. When the girls refused to send him additional explicit images, he threatened to either send the images he had to the victims’ parents or to kill himself.
In choosing a 16-year sentence, Judge Conley observed that Sherwood was willing to directly exploit his young victims, seemingly enjoying the manipulation. Judge Conley saw no awareness from the defendant of the damage that he regularly caused and noted that Sherwood’s descent was so far, it will be difficult to change.
The charge against Sherwood was the result of an investigation conducted by the Smyrna, Tennessee Police Department, Homeland Security Investigations, the Marshfield Police Department, the Wisconsin Department of Corrections, and the New Lisbon Correctional Institution. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
This investigation was a part of Project Safe Childhood (PSC), a nationwide initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pryor Resident Sentenced to 180 Months for Child Sexual Exploitation and AbuseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lucien Tyler Littledave, age 30, of Pryor, Oklahoma, was sentenced to 180 months in prison for one count of Sexual Exploitation of a Child, 180 months for one count of Coercion and Enticement, 180 months for one count of Receipt of Certain Materials Involving Sexual Exploitation of a Minor, 180 months for one count of Distribution of Certain Materials Involving Sexual Exploitation of a Minor, 180 months for one count of Rape in the Second Degree in Indian Country, and 120 months for one count of Sexual Battery in Indian Country. These sentences are set to be served concurrently.
The charges arose from an investigation by the Muscogee (Creek) Nation Lighthorse Police Department and the Broken Arrow Police Department.
On May 7, 2024, Littledave pleaded guilty to the charges. According to investigators, between March 2023 and May 2023, while employed as a teacher and coach with the Coweta Public School System, Littledave knowingly enticed a minor to engage in illegal sexual activity. Littledave also used a cell phone to produce and distribute sexually explicit images of the victim.
The crimes occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation, and in Wagoner County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Littledave will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jessie K. Pippin represented the United States.
Pittsburgh Man Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession with the intent to distribute more than 500 grams of cocaine, United States Attorney Eric G. Olshan announced today.
David Loveings, age 71, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that Loveings was pulled over by officers from the Pittsburgh Bureau of Police for various traffic violations. The traffic stop eventually led to a search of Loveings’ vehicle and the seizure of approximately 927 grams of cocaine.
Judge Wiegand scheduled sentencing for May 13, 2025. The law provides for a total sentence of not less than five years in prison and not more than forty years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Loveings.
Pharmacy Owner Sentenced to Imprisonment for Health Care FraudRead the Press Release
ABINGDON, Va. – The owner of Randy’s Gateway Drug in Cedar Bluff, Virginia, was sentenced recently to 18 months in prison on federal healthcare fraud charges after pleading guilty in May for conduct that caused $1.3 million in losses to the federal government.
Randy Yost, 72, of Cedar Bluff, Virginia, pled guilty in May 2024 to one count of healthcare fraud, one count of conspiracy to commit healthcare fraud, and one count of distributing oxycodone.
According to court documents, Yost owned Randy’s Gateway Drug, a participating provider of Medicare, Medicaid, and Tricare. Between April 2016 and June 2023, Yost, and others, dispensed cheaper generic medications for Schedule II drugs such as Oxycontin to customers, yet billed the government healthcare benefits programs for the more expensive brand name medications.
In addition, Yost billed the government healthcare benefits programs and other insurance companies for prescription medications that were not dispensed to patients.
Yost also billed for prescription medications that were dispensed to patients and then returned to the pharmacy by those same patients, but the charge to the government healthcare benefits programs was not reversed. Instead, the returned medications were dispensed again and billed a second time.
In February 2023 and February 2024, a government analysis comparing medications ordered by Randy’s Gateway Drug’s billed to government healthcare benefits programs was completed. That analysis showed an adjusted loss to the government of $1,309,515. As a result, Yost was ordered to pay restitution in the amounts of $1,035,279.44, to Medicare, $271,274.03 to Virginia Medicaid, and $2,961.75 to TriCare.
Acting United States Attorney Zachary T. Lee, Special Agent in Charge of the DEA’s Washington Division Jarod Forget, and Virginia Attorney General Jason Miyares made the announcement..
The Drug Enforcement Administration, U.S. Department of Health and Human Services- Office of Inspector General, Virginia Office of the Attorney General- Medicaid Fraud Control Unit and the Department of Defense Criminal Investigative Service- Office of Inspector General investigated the case.
Special Assistant United States Attorney and Virginia Assistant Attorney General Janine Myatt and Assistant U.S. Attorney Danielle Stone prosecuted the case.
Pawtucket Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE – A Pawtucket man found to be in possession of more than 17,000 images and dozens of videos of child pornography has been sentenced to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Court documents reflect that in August 2023, the National Center for Missing and Exploited Children notified law enforcement that a telephone number, later determined by law enforcement to belong to Eugenio Lopes Gomes, 47, was being utilized to upload child pornography. A court-authorized search and forensic audit of the defendant’s electronic devices determined that the devices contained approximately 17,000 images and 144 videos of explicit material depicting children ranging in ages from one to twelve years old.
Lopes Gomes was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 36 months of incarceration to be followed by three years of federal supervised release. Lopes Gomes pleaded guilty on September 24, 2024, to a charge of possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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
The case was prosecuted by Assistant United States Attorney Julienne Kline, with the assistance of Assistant U.S. Attorney Peter I. Roklan.
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children Task Force and Homeland Security Investigations.
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Owner of Brooklyn-Based Credit Counseling Business Sentenced to More Than 11 Years in Prison for Defrauding ClientsRead the Press Release
Earlier today, in federal court in Brooklyn, Marat Lerner, the former president of a debt relief services business, was sentenced by United States District Judge Nicholas G. Garaufis to 135 months in prison for conspiracy to commit wire fraud and wire fraud. Lerner was also convicted of continuing his criminal scheme while on pre-trial release. Lerner was ordered to forfeit approximately $2,340,154 to the government. Restitution to the victims will be determined at a later date. Lerner pleaded guilty to the charges in February 2024.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“Today the defendant learned there are serious consequences for stealing his clients’ money, even after he was arrested, and ruthlessly spending it on a luxury car for himself, on-line dating and expensive meals,” stated United States Attorney Peace. “His victims were hard-working people, many from the Eastern European community, who went to him for help saving their homes and livelihoods. Instead of helping them, Lerner took advantage of their trust and vulnerability to steal their money. Lerner continued his crimes even when he knew that his actions had directly caused his victims to lose their homes and-or to declare bankruptcy. My Office is committed to protecting the public from unscrupulous advisors like Lerner.”
“Marat Lerner stole $2.5 million from fiscally vulnerable clients and forced several into bankruptcy after funneling their money to fund his personal luxury purchases rather than providing the promised reduced mortgage payments," stated FBI Assistant Director in Charge Dennehy. "Lerner betrayed his victims’ trust, remorselessly continuing to perpetuate this fraudulent scheme even after his initial arrest. With the continued support from NYPD and CBP, the FBI remains dedicated to investigating those who employ empty promises to prey upon disadvantaged communities to satisfy their own greed.
“Lerner lived a glamourous life by taking money out of the pockets of people in his own community. His underground brokerage was not just a simple money scam; it led to victims defaulting on their mortgage payments and some falling into foreclosure,” stated IRS-CI Special Agent in Charge Chavis. “Today’s sentencing should stand as a reminder to those preying on others to fulfill their own greedy desires—you will get caught; you will be prosecuted; and you will go to prison for your criminal acts.”
According to court documents and facts presented at Lerner’s sentencing, the defendant was the owner of the Lerner Group, a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn. Many of the victims Lerner defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments. Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance. To carry out his fraud, Lerner obtained access to the victims’ bank accounts, which he claimed he would use to pay the mortgage banks on their behalf.
Lerner used his access to his victims’ bank accounts to steal approximately $2.5 million – money that the 19 victims believed was being used to pay their mortgages. Once Lerner gained access to the victims’ bank accounts, he transmitted funds from their accounts to companies and/or bank accounts that he controlled. Lerner covered up his fraud by claiming the money was being held in escrow or by affiliates of the mortgage banks. In truth, Lerner kept most of the victims’ money and spent it on personal and business expenses, including a BMW, luxury goods and expensive meals. Lerner caused several of his clients to file bankruptcy petitions to stave off foreclosure to continue his fraud, and as a result of his scheme, several of his victims are facing foreclosure proceedings.
In January 2023, Lerner was arrested in connection with the fraud and released on bail. He was instructed not to commit additional crimes. However, Lerner promptly opened new bank accounts and continued his criminal scheme. After his arrest in this case, Lerner stole at least an additional $50,000 from his clients. In September 2023, Lerner’s bail was revoked after a grand jury returned a superseding indictment charging Lerner with additional crimes.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Nick M. Axelrod and former Assistant U.S. Attorney Genny Ngai prosecuted the case.
The Defendant:
MARAT LERNER
Age: 42
Brooklyn, New York
E.D.N.Y. Docket No. 23-CR-15 (S-1) (NGG)Owner of Addiction Treatment Chain That Billed for Recovery Services Not Provided Sentenced to More Than Eight Years in Federal Prison in Health Care Fraud ConspiracyRead the Press Release
PROVIDENCE, RI – The owner of a now defunct Rhode Island-based chain of addiction treatment centers who, as described in court documents “embezzled and cheated his way through life,” has been sentenced to more than eight years in federal prison for defrauding Medicare, Medicaid, and other health insurers out of millions of dollars, announced United States Attorney Zachary A. Cunha.
Michael Brier, 62, of Newton, MA, previously admitted to a federal judge that he and his company, Recovery Connections Centers of America, Inc. (RCCA), short changed patients suffering from substance abuse disorders in Rhode Island and Massachusetts by failing to provide them with required counseling sessions and treatment that were an important part of their care, while simultaneously billed Medicare, Medicaid, and other health care payors for those sessions. In many cases, RCCA routinely billed for 45-minute counseling sessions, while in fact providing sessions that were only 5-10 minutes or less in length.
“Michael Brier held out his business as a lifeline to vulnerable patients - men and women fighting to turn their lives around and escape the grim toll of addiction, but instead used it as a front for fraud that shortchanged those patients and lined his own pockets at taxpayer’s expense,” remarked U.S. Attorney Zachary Cunha. “Instead of providing the care these patients required and deserved, Brier directed his own employees not to provide the sessions that these patients needed, that his own therapists wanted to provide, and that the law required, while at the same time wildly overbilling federal and private health care payors. Today’s sentence should leave no doubt that those who attempt to feed their own greed from funds intended to care for those in need will be held accountable.”
“Brier and RCCA orchestrated a fraud scheme that not only robbed taxpayer funds from Medicare and Medicaid, but also undermined the health of vulnerable patients who sought help for their addiction,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s sentencing should serve as a stern reminder that those who seek to exploit our nation’s health care system at the expense of patients and taxpayers will be brought to justice.”
“Today’s sentence holds this career criminal accountable for capitalizing on the opioid crisis by defrauding taxpayer-funded federal health care programs out of millions of dollars and leaving the patients who came to his clinics deprived of treatment,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Michael Brier is a liar, a cheat, and the mastermind of this sophisticated scheme, and the FBI and our partners are gratified we could shut him down, along with his chain of addiction treatment centers, which were little more than a front for fraud.”
As described in a criminal complaint filed in this matter, under the guise of running recovery clinics that supposedly provided much-needed medical and therapy services to men and women in Rhode Island and Massachusetts who needed help in their struggles with addiction, the defendants shortchanged their patients, providing them with little to no therapy or support, all the while billing Medicare and other insurers as if they had fully served their patients. For example, Brier and RCCA billed the government or insurance providers for 45 minutes sessions when, in fact, patients were actually seen for less than 15 minutes - in some cases substantially less than that. One counselor was known as the “five-minute queen” because the counseling sessions would last that long and no longer. In another instance, an employee was equipped with a bell that they would ring to ensure that the flow of patients moved along briskly.
Briar and RCCA previously admitted that they caused a fraudulent application to be submitted to Medicare which, among other things, misrepresented and concealed the role that Brier was playing in the business and failed to disclose Brier’s 2013 criminal conviction for federal tax crimes, which was relevant to Medicare’s consideration of the application; Brier was sentenced to 27 months incarceration by a federal judge as a result of that 2013 conviction.
In this most recent matter, Brier was sentenced today by U.S. District Court Judge Mary S. McElroy to 98 months of incarceration to be followed by three years of supervised release and ordered to pay restitution in the amount of $3,515,100. At the government’s request, the court ordered Brier to forfeit approximately one million dollars contained in various bank and investment accounts, his interest in a beachfront property in Caracol Beach, Panama, and two luxury vehicles.
RCCA was sentenced by U.S. District Court Judge Mary S. McElroy to one year probation and ordered to pay restitution in the amount of $3,515,100.
The case was prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard, with the assistance of Assistant United States Attorney Milind M. Shah.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Department of the Attorney General for their assistance in the investigation.
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Oil Companies to Pay Record Civil Penalty for Violating Antitrust Pre-Transaction Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia against crude-oil producers XCL Resources Holdings LLC (XCL), Verdun Oil Company II LLC (Verdun) and EP Energy LLC (EP).
The lawsuit alleges that the three companies violated the pre-transaction notification and waiting period requirements of the Hart-Scott-Rodino Act of 1976 (HSR Act), following Verdun’s $1.4 billion purchase agreement for EP on July 26, 2021. At the time of transaction, Verdun was under common management with XCL.
According to the complaint, the three companies failed to observe a required waiting period following such a large transaction, in which federal agencies can investigate a potential merger before it closes. Instead, EP allowed Verdun and XCL to assume operational and decision-making control over significant aspects of its day-to-day business operations, including a stoppage to EP’s planned well-drilling and development at a time when the U.S. crude-oil market faced significant supply shortages and consumers faced soaring gasoline prices.
Simultaneous to filing its complaint, the department filed a proposed settlement, subject to approval by the court, under which the defendants have agreed to pay a $5.6 million civil penalty to resolve the lawsuit, a record civil penalty for illegal pre-merger coordination in violation of the HSR Act.
Further details about this matter are described in the FTC’s press release issued today, and in the complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period via email to [email protected] or by post to Maribeth Petrizzi, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8416, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Ohio Woman Sentenced to Prison for Selling Nearly $300,000 in U.S. Treasury Bonds Stolen from Elderly VictimRead the Press Release
CLEVELAND – A Cleveland woman has been sentenced to 32 months in prison after pleading guilty to conspiring to transport and sell stolen U.S. Treasury bonds across state lines, forging treasury bonds, and using a false social security number. According to court documents, Toni Laverne Smith, 71, had in her possession, U.S. Treasury bonds that were believed to have been stolen from the residence of an elderly female in 2011.
The investigation discovered that from about September 2011 to April 2012, Smith and a co-conspirator transported U.S. Treasury bonds, which they knew were stolen, across state lines. They used fake identification cards with the name of the victim to negotiate the sale of more than 350 forged Series E and EE, U.S. Treasury bonds with a face value of $268,500. The sale netted approximately $299,364 in proceeds which included interest on mature bonds. Additionally, they used the social security number of the victim to open bank accounts at several financial institutions as far away as Michigan and Illinois. Smith had eluded capture for more than a decade. Federal authorities apprehended Smith June 3, 2024, on unrelated charges.
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Vanessa Healy for the Northern District of Ohio.
To report stolen treasury bonds, visit https://www.treasurydirect.gov/savings-bonds/manage-bonds/lost-stolen-destroyed-ee-or-i-bonds/ or call 844-284-2676.
New Orleans Man Indicted for Being Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LA – ERIC ROGERS (“ROGERS”), age 33, of New Orleans, was indicted on January 3, 2025, for being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(8), and 942(e), announced U.S. Attorney Duane A. Evans.
According to the indictment, ROGERS possessed a firearm on October 10, 2024. ROGERS was prohibited from possessing a firearm, due to his previous felony conviction(s). If convicted, ROGERS faces up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. ROGERS also faces payment of a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This case is being prosecuted by Assistant United States Attorney Troy L. Bell of the Violent Crimes Unit.
New London Man Sentenced for Drug Trafficking Offense, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CRUZ J. BONILLA, 41, of New London, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to approximately 52 months of imprisonment, time already served, and six years of supervised release, the first six months of which Bonilla must serve in home detention, for trafficking narcotics and for violating his conditions of supervised release that followed a prior federal conviction.
According to court documents and statements made in court, in February 2014, Bonilla was sentenced in New Haven federal court to 68 months of imprisonment and four years of supervised release for distributing heroin. He was released from federal prison in October 2019.
On four occasions between March and May 2020, an undercover law enforcement officer purchased heroin/fentanyl from Bonilla. During the investigation, law enforcement identified William Caraballo III, also known as “Wilo,” as Bonilla’s drug supplier and learned that Caraballo regularly transported kilogram quantities of heroin/fentanyl from New York to southeastern Connecticut for distribution.
Bonilla has been detained since his federal arrest on August 26, 2020. On July 30, 2024, he pleaded guilty to possession with intent to distribute, and distribution of, a controlled substance.
Caraballo pleaded guilty to a related charge and, on December 12, 2024, was sentenced to 12 years of imprisonment.
This investigation was conducted by the Drug Enforcement Administration, the Connecticut State Police, and the Connecticut Statewide Narcotics Taskforce East. The case was prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Natasha M. Freismuth.