Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 13 November 2024
Multi-Kilogram Methamphetamine and Fentanyl Dealer Sentenced to 19 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced George Pherai-Bogeajis (35, Orlando) to 19 years and 7 months in federal prison for conspiring to distribute methamphetamine and fentanyl and possessing firearms in furtherance of drug trafficking. The court also ordered Pherai-Bogeajis to forfeit four vehicles and four firearms used in the offense, along with $867,265 of drug proceeds. Pherai-Bogeajis entered a guilty plea on June 18, 2024.
According to court documents, Pherai-Bogeajis was engaged in kilogram-level methamphetamine transactions for years. In March 2024, a co-conspirator was stopped after conducting a pickup from Pherai-Bogeajis’s residence and found to be carrying $149,785 of drug proceeds (see images below):
On April 9, 2024, the DEA executed a search warrant at Pherai-Bogeajis’s home and seized 48.9 kilograms of methamphetamine, more than 5,500 grams of MDMA, more than 2 kilograms of cocaine, 978 grams of fentanyl, hallucinogens, marijuana, oxycodone pills, four firearms, and $717,480 in cash. Additional drugs and two vehicles containing “traps” to conceal drugs and proceeds for transport were located during a search of an address in Ocoee.
This case was investigated by the Drug Enforcement Administration, with assistance from the Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, U.S. Customs and Border Patrol, the Ocoee Police Department, the Orlando Police Department, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, and the Oveido Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justicegov/OCDETF.
This case is also 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Motorcycle gang member pleads guilty to illegally possessing a firearmRead the Press Release
RICHMOND, Va. – A Fayetteville, North Carolina, man pled guilty today to being a felon in possession of a firearm.
According to court documents, on April 28, Kevin T. Christian II, 35, was operating a motorcycle on I-295 Northbound in Hanover County without taillights after dark. When Virginia State Police (VSP) attempted a traffic stop, Christian did not immediately pull over, continuing for two minutes with VSP behind him with lights and sirens activated. Christian eventually stopped on the shoulder of an exit ramp.
Christian’s motorcycle had an expired registration tag, tape covering one of the digits on its license plate, and at the front of the motorcycle a large wooden club was strapped to the handlebars. The club was broken on one end and on the other end was a metal nail or screw protruding from the bottom. Christian was wearing a vest with “Wheels of Soul” and “1%er” markings indicating his membership in a motorcycle gang.
Christian had a .38 caliber handgun in his pocket, which was discovered and recovered during a pat down. In October 2018, Christian was convicted of unlawful wounding. As a previously convicted felon, Christian cannot legally possess firearms or ammunition.
Christian is scheduled to be sentenced on March 13, 2025, and faces up to 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jason S. Miyares, Attorney General of Virginia; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea.
Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Jessica L. Wright are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-110.
Monroe County Man Charged with Firearm and Drug Trafficking OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Stull, age 46, of Saylorsburg, Pennsylvania, was indicted by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that Stull possessed with the intent to distribute over 500 grams of methamphetamine, over 500 grams of cocaine, and a quantity of marihuana on September 12, 2024, in Saylorsburg, Pennsylvania. The indictment also alleges that on the same date, Stull possessed multiple firearms in furtherance of his drug trafficking offenses, and that he possessed one firearm with an obliterated serial number.
The matter is being investigated by the Federal Bureau of Investigation (FBI), the Office of the Attorney General of Pennsylvania, the Pennsylvania State Police, and the Monroe County District Attorney’s Office. Assistant United States Attorney James Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Missouri Man Sentenced to 75 Months in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a man who admitted possessing child pornography and participating in online discussions about the rape of children to 75 months in prison.
Stephen E.R. Marez, 32, of St. Francois County, was also ordered to pay $9,000 in restitution.
Marez pleaded guilty in U.S. District Court in St. Louis in August to one count of receiving child pornography. He admitted exchanging child pornography and discussing the rape of children with two people online. The Indiana State Police were investigating one of the men participating in those discussions, who led them to Marez. On July 14, 2023, a Missouri State Highway Patrol trooper conducted a traffic stop and seized Marez’ cell phone, which contained child sexual abuse material. A July 19, 2023, court-approved search of his home recovered electronic devices that contained more than 2,000 files containing child pornography, including 249 images and 137 videos depicting minors who have been identified by law enforcement, his plea agreement says.
The Missouri State Highway Patrol, the Missouri State Technical Assistance Team, the St. Francois County Sheriff’s Office, the Farmington Police Department, the Park Hills Police Department and the Indiana State Police investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mexican National Sentenced to Serve a Decade in Federal Prison after Transporting Methamphetamine into OklahomaRead the Press Release
OKLAHOMA CITY – SIMON VELAZQUEZ HERNANDEZ, 35, a Mexican National living in California at the time of his arrest, has been sentenced to serve 120 months in federal prison following a trial on a charge of possession of methamphetamine with intent to distribute, announced U.S. Attorney Robert J. Troester.
Hernandez was indicted by a federal grand jury on January 17, 2024, with possession of methamphetamine with intent to distribute. He proceeded to trial on June 18, 2024, where a federal jury heard evidence that on December 28, 2023, Hernandez was pulled over by an Oklahoma City Police officer on I-40 with approximately 40 pounds of methamphetamine in the vehicle. When initially stopped, Hernandez told the officer he was traveling from California to Arkansas to deliver Christmas presents, and the 40 pounds of methamphetamine was found inside gift wrapped boxes in the vehicle.
At the sentencing hearing on November 12, 2024, U.S. District Judge Joe Heaton sentenced Hernandez to serve 120 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge Heaton noted the nature and circumstances of the offense.This case is the result of an investigation by the FBI Oklahoma City Field Office, the Oklahoma City Police Department, and the Oklahoma County Sheriff’s Office. Assistant U.S. Attorneys Travis Leverett and Stephen Hoch prosecuted the case.
Reference is made to public filings for additional information.
Meridian Woman Pleads Guilty to Theft of Social Security FundsRead the Press Release
Jackson, Miss. – A Meridian woman pled guilty to stealing social security benefits intended for two elderly victims totaling $25,364.
According to court documents, Taruars Santae Grace, 46, admitted that she stole Social Security Administration (SSA) retirement benefits intended for two elderly victims. Grace diverted the SSA benefits into bank accounts to which she had access and control. Grace admitted that she spent the benefits for her personal use despite knowing that she was not entitled to the money.
Grace was indicted by a federal grand jury in August 2024. She pled guilty today to theft of government funds.
Grace is scheduled to be sentenced on February 11, 2025, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Rodregas “Rod” Owens of the Social Security Administration Office of Inspector General - Atlanta Field Division made the announcement.
The Social Security Administration Office of the Inspector General is investigating the case.
Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.
Member of Violent Gang Sentenced to 15 Years in Prison for Racketeering Involving Attempted MurderRead the Press Release
BOSTON – A Boston area man was sentenced yesterday for his role in Cameron Street, a violent Boston gang.
Eric Correia, aka “Bubba,” 26, of Boston, was sentenced by U.S. Senior District Court Judge William G. Young to15 years in prison followed by three years of supervised release. In April 2024, Correia pleaded guilty to conspiracy to participate in a racketeering enterprise, more commonly known as RICO conspiracy, and distribution of marijuana.
Correia was identified as a member Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street members use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Correia pleaded guilty to committing a March 2019 attempted murder with a firearm of a rival gang member in Dorchester. The victim was transported to a nearby hospital with life-threatening injuries.
In addition to this attempted murder, Correia admitted to his role in an armed robbery with a firearm of a drug customer and admitted that he distributed $1,400 worth of marijuana to a cooperating witness. While he wore a mask during the drug deal, Correia was identified through a “C” tattoo on his hand. Cameron Street members often have tattoos or wear sports jerseys that employ the letter “C.”
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuted the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Store Owner Pleads Guilty to Tax EvasionRead the Press Release
A Maryland man who owns a retail store pleaded guilty today to evading his income taxes by not reporting cash taken from his business.
According to court documents and statements made in court, for over 20 years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, that only accepted cash payments. From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns. He used the cash for personal expenditures, including gambling. Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.
In total, for the years 2017 through 2021, Bundy had additional taxes due of $672,558.
Bundy is scheduled to be sentenced on Feb. 21, 2025. He faces a maximum penalty of five years in prison. 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 U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division and Assistant U.S. Attorney Coreen Mao for the District of Maryland are prosecuting the case.
Maryland Store Owner Pleads Guilty to Tax EvasionRead the Press Release
Greenbelt, Maryland – A Maryland man who owns a retail store pleaded guilty to evading his income taxes by not reporting cash taken from his business.
The guilty plea was announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents and statements made in court, for over twenty years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, Maryland, that only accepted cash payments. From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns. He used the cash for personal expenditures, including gambling. Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.
In total, for the years 2017 through 2021, Bundy owes federal income taxes of $672,558.
Bundy is scheduled to be sentenced on February 21, 2025. He faces a maximum of five years in prison. 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.
United States Attorney Erek L. Barron commended the IRS Criminal Investigation for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Michael C. Vasiliadis of the Tax Division who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Man Sentenced to 20 Years in Prison for Fatal University City Drug DealRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man to 20 years in prison for his role in a fatal shooting sparked because he believed a man purchased marijuana with counterfeit money.
Nathaniel Anthony Brown-Shatto, 22, was one of three people involved in a conspiracy to sell marijuana and had told the others that the victim had previously purchased marijuana from him using counterfeit currency. On Feb. 19, 2022, the three were together in a vehicle, armed and selling marijuana. When the victim contacted Brown-Shatto to buy more marijuana, the three drove to his home in the 7800 block of Birchmont Drive. Carlos Albert Castellanos Jr. was driving, Brown-Shatto was in the passenger seat and the third man was in the rear of the vehicle.
When the victim stepped out of his home, Brown-Shatto shot him with a handgun while the third man began shooting him through the vehicle’s sunroof with an AK-style rifle, Brown-Shatto and Castellanos’ plea agreements say. Investigators found a total of 22 spent cartridge casings from both weapons.
Three days after the shooting, University City police stopped Castellanos and Brown-Shatto in a vehicle that matched the description of the one used by the shooters. They were both armed with handguns and had about one pound of marijuana in a backpack in the car.
Brown-Shatto pleaded guilty to one count of knowingly discharging a firearm in furtherance of the commission of a drug trafficking crime resulting in death. Castellanos, 22, has pleaded guilty to one count of conspiracy to possess one or more firearms in furtherance of a drug trafficking crime and awaits sentencing.
“The U.S. Postal Inspection Service mission is to protect the nation’s mail system. With the collaborative efforts of our federal law enforcement partners, Postal Inspectors investigate those utilizing the U.S. Mail for illicit activities, including distribution of narcotics. Postal Inspectors seek justice for victims, including the victim in this case who tragically lost his life.” Today’s sentencing reflects the diligent investigative work by Postal Inspectors and our law enforcement partners,” said Inspector in Charge, Ruth Mendonça, who leads the Chicago Division, which includes the St. Louis Field Office.
Emanuel Benito Vasquez, 22, has not yet been arrested. He is facing a marijuana conspiracy charge as well as charges of discharging a firearm in furtherance of the commission of a drug trafficking crime resulting in death and conspiracy to possess firearms in furtherance of a drug trafficking crime. Charges are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the University City Police Department and the U.S. Postal Inspection Service.
Luzerne County Man Charged with Drug Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Verbitsky, age 37, of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury for a drug trafficking offense.
According to United States Attorney Gerard M. Karam, the indictment alleges that on April 4, 2024, in Luzerne County, Pennsylvania, Verbitsky distributed 50 grams and more of methamphetamine.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Kingston Police Department, the Wilkes-Barre Police Department, the Pittston Police Department, the Luzerne County Drug Task Force, and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney James M. Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is imprisonment for forty years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Louisiana Company Sentenced for Making False StatementsRead the Press Release
NEW ORLEANS, LOUISIANA – LOUISIANA SWAMP TOURS, LLC, a company based in Marrero, Louisiana, was sentenced on November 12, 2024, by U.S. District Judge Darrel James Papillion, to pay a $53,200 fine, after previously pleading guilty on August 27, 2024, to making false statements, in violation of Title 18, United States Code, Section 1001(a)(2). The Court also ordered that LOUISIANA SWAMP TOURS, LLC be placed on probation for 1 year, and pay a $400 mandatory special assessment fee.
According to court documents, on or about February 25, 2022, LOUISIANA SWAMP TOURS, LLC told investigators from the United States Coast Guard that the hull of a watercraft vessel had been repaired after being damaged in a storm when, in fact, a new hull was built for the watercraft vessel with similar materials and measurements and, the required plans were not submitted to the United States Coast Guard for approval.
This case was investigated by the United States Coast Guard and the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by Assistant United States Attorney Troy Bell of the Violent Crimes Unit.
Lincoln County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – James Evans Hughes, 51, of Sumerco, was sentenced today to nine years in prison, to be followed by three years of supervised release, for distribution of methamphetamine.
According to court documents and statements made in court, on June 28, 2018, Hughes sold a quantity of methamphetamine to a confidential informant in the South Charleston area of Kanawha County. Hughes admitted to that transaction and further admitted to selling methamphetamine to the confidential informant on seven other occasions between July 2018 and November 2018.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
Senior States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Lesley C. Shamblin 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. 2:23-cr-83.
###
Leader of Large Scale Drug Trafficking Operation Sentenced to 60 Years in Federal PrisonRead the Press Release
BAY CITY – A Detroit man was sentenced to 60 years in federal prison today for his role in a large-scale drug trafficking operation in the Saginaw-Bay region, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office.
The 720-month sentence imposed on Ricardo Delgado, II, 51, by United States District Court Judge Thomas L. Ludington, followed a week-long trial in June in which the jury found Delgado guilty of conspiracy to possess with intent to distribute and to distribute at least five kilograms of cocaine; possession with intent to distribute at least five kilograms of cocaine; possession with intent to distribute at least 400 grams of fentanyl; possession of a machinegun in furtherance of a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun; felon in possession of a firearm; possession of an unregistered silencer; and, use of communication facility to commit a drug offense.
Evidence at trial established that Delgado was the leader of a large-scale drug conspiracy that involved the importation of numerous kilograms of cocaine and fentanyl from Mexico for distribution in the Saginaw-Bay region. During the course of the investigation, FBI agents learned from a court-authorized wiretap that Delgado was seeking retaliation for the theft of his drugs from a subordinate and that he ordered that subordinate to exact revenge. However, this plan was thwarted by authorities. In addition, following Delgado’s arrest, law enforcement officers seized 13 kilograms of cocaine, two kilograms of fentanyl, 12 firearms, including two machineguns, two silencers, and over $200,000 in cash from Delgado’s residence.
“This defendant endangered countless individuals by trafficking in large quantities of deadly fentanyl and cocaine. He also sought to use violence to protect his trade in illicit drugs,” stated U.S. Attorney Ison. “This sentence should serve as a stark warning that our office will zealously pursue those who seek to bring illegal drugs and violence into our community.”
"Today's sentencing of Ricardo Delgado, a notorious drug trafficker, marks a critical milestone in our ongoing efforts to combat the fentanyl crisis and protect the public from its devastating effects," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI Michigan remains firmly committed to addressing the dual threats of illegal firearms trafficking and drug distribution that endanger the safety of our communities. Through collaborative efforts with our local and state law enforcement partners, we continue dismantling criminal networks and disrupting the flow of harmful substances. I sincerely thank the dedicated professionals at FBI Michigan, the Bay City Department of Public Safety, the Saginaw Police Department, the Bay Area Narcotics Enforcement Team, and the Michigan State Police. Our collective determination to safeguard Michigan residents and uphold justice remains unwavering as we work to hold those who threaten public safety accountable."
This investigation was conducted by special agents of the FBI Detroit Division (Bay City Office), special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosive (ATF), and law enforcement officials from Michigan State Police, Midland Police Department, Saginaw Police Department, Saginaw Township Police Department, Bridgeport Police Department, the Bay Area Narcotics Enforcement Team (BAYANET), and the Strike Team Investigative Narcotics Group (STING).
The case was prosecuted by Assistant U.S. Attorneys Tim Turkelson and Will Orr.
Lawrence Man Pleads Guilty to Making False Statements in Passport Application and Aggravated Identity TheftRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to falsely claiming to be a United States citizen in a passport application.
Ruben Dario Guerrero, 44, pleaded guilty to one count of making a false statement in a passport application and one count of aggravated identity theft. Chief U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 5, 2025.
On Aug. 25, 2023, Guerrero submitted an application for a U.S. passport at a post office in Lawrence, Mass. Guerrero used the name, date of birth and social security number of a U.S. citizen who died in Puerto Rico in 1997, and signed the application under an attestation in which he declared under penalty of perjury that he was a United States citizen. In fact, however, identity documents from the Dominican Republic show Guerrero to be a Dominican citizen.
The charge of making a false statement in a passport application provides for a maximum sentence of 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison that must run consecutive to any other sentence, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutes that govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Matthew O’Brien, Special Agent in charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today.
Lawrence Man Pleads Guilty to Drug, Firearms and Money Laundering ChargesRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to fentanyl, cocaine, firearms and money laundering charges.
Joseph Correa, 34, pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl, five kilograms or more of cocaine, and other controlled substances; possession with intent to distribute and distribution of cocaine; possession of a firearm in furtherance of a drug trafficking offense; and conspiracy to commit money laundering. U.S. District Court Judge Angel Kelley scheduled sentencing for March 5, 2025. Correa was indicted by a federal grand jury in February 2022 along with 20 co-conspirators.
Correa was the target of a long-term investigation into a network of fentanyl and cocaine distributors based in and around Lawrence. Correa obtained fentanyl from local suppliers and he and co-defendants and brothers, Jose Martinez and Luis Martinez, regularly traveled to Puerto Rico to purchase wholesale quantities of cocaine, which they mailed to addresses in New England for redistribution in Massachusetts and New Hampshire. Correa employed co-defendants, and an uncharged co-conspirator, to store and process drugs at their residences and distribute drugs on his behalf. Correa was regularly intercepted over court-authorized wiretaps discussing distribution of fentanyl and cocaine and obtaining, possessing and using firearms. He and co-defendant Mayi Rosario conspired to launder drug proceeds via various financial transactions and purchases. During the course of the investigation, fluorofentanyl, fentanyl, cocaine and drug proceeds were seized from Correa and his associates and from packages mailed by or for Correa. On Dec. 15, 2021, Correa was arrested in Caguas, Puerto Rico. At the time of his arrest, Correa was holding a loaded firearm that had a Glock slide and a privately manufactured grip, and that had been converted into a fully automatic weapon.
In May 2024, Jose Martinez was sentenced to 90 months in prison, to be followed by four years of supervised release. Luis Martinez pleaded guilty in August 2024 and is scheduled to be sentenced on Jan. 24, 2025. Rosario was sentenced to 30 months in prison, to be followed by one year of home detention and 26 months of supervised release.
The drug conspiracy charge provides for a mandatory minimum sentence of 10 years and up to a life term in prison, a mandatory minimum of five years and up to a life term of supervised release and a fine of up to $10 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a sentence of up at least five years and up to life in prison, to run consecutive to the sentence imposed on the drug conspiracy count, up to five years of supervised release and a fine of up to $250,000. The cocaine possession and money laundering charges provide for a sentence of up to 20 years in prison, to be followed by supervised release of at least three years and up to life on the drug charge and maximum of three years on the money laundering charge and fines of up to $1 million on the drug charge and up to $500,000 or twice the value of the funds laundered on the money laundering charge. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Special assistance was provided by the Lawrence Police Department; U.S. Postal Inspection Service; Massachusetts State Police; Federal Bureau of Investigation; and Essex County Sheriff’s Office. Assistant U.S. Attorneys Katherine Ferguson and J. Mackenzie Duane of the Narcotics and Money Laundering Unit are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Knife-Wielding Felon Convicted for Assaulting a U.S. MarshalRead the Press Release
TULSA, Okla. – A federal jury returned a guilty verdict on Preston James Campbell for Assaulting a Federal Officer with a Deadly or Dangerous Weapon.
According to court documents and evidence presented at trial, Campbell, 41, was previously convicted in federal court for being a felon in possession of a firearm and assault resulting in serious bodily injury. After being released from prison in 2024, Campbell violated his supervised release after testing positive for methamphetamine, failing to report at drug treatment, and failing to report to the U.S. Probation office, resulting in two federal warrants issued for his arrest.
On July 1, 2024, the U.S. Marshals received a tip leading to Campbell’s location. Body camera video presented to the jury showed that when Marshals attempted to arrest Campbell, he ran towards a Deputy with a knife in his hand. The Deputy was able to block and deflect the knife, preventing serious injuries. Campbell further resisted and escaped into a wooded area. He was ultimately detained three weeks later.
Campbell is a member of the Muscogee (Creek) Nation. He will remain detained while awaiting sentencing for assaulting the Deputy U.S. Marshal and the two pending revocation proceedings for his supervised release violations.
The U.S. Marshals, Creek County Sheriff’s Office, Oklahoma Highway Patrol, Muscogee (Creek) Nation Lighthorse Police, Bristow Police Department, and Kellyville Police Department investigated the case. Assistant U.S. Attorneys George Jiang and Elliot Anderson prosecuted the case.
Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jason Todd Painter, 40, of Clendenin, was sentenced today to five years in prison, to be followed by three years of supervised release, for conspiracy to distribute a quantity of methamphetamine.
According to court documents and statements made in court, from March 15, 2023 through June 24, 2023, Painter received 11 packages containing methamphetamine sent by a co-conspirator from New York to Painter’s residence in Clendenin. Painter kept some of the methamphetamine for himself and held the rest for the co-conspirator to pick up. The co-conspirator occasionally directed Painter to deliver methamphetamine to other individuals in the Kanawha County area.
On July 15, 2023, the co-conspirator shipped a package through the United States Postal Service from New York to Painter’s residence in Clendenin. Law enforcement intercepted the package and discovered that it contained approximately 4.2 kilograms of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney JC MacCallum 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. 2:23-cr-182.
###
Kalamazoo Man Convicted of Fentanyl Trafficking, Distribution of Fentanyl Causing DeathRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Antjuan Pierre Jackson, 39, of Kalamazoo, of distribution of fentanyl causing death and possession of 40 grams or more of fentanyl with intent to distribute. The Court will sentence Jackson on February 27, 2024.
“Illicit street drugs claim more lives across Michigan and the United States than ever before,” said U.S. Attorney Mark Totten. “Only a speck of fentanyl can kill. And because drug suppliers are mixing fentanyl into almost every illicit drug, users may not even realize they’re taking a lethal dose of fentanyl that will leave them dead in minutes. My office is committed to disrupting the pipelines that distribute these poisons in our communities.”
The evidence at trial demonstrated that, on November 23, 2022, Jackson sold fentanyl, a synthetic opioid up to 100 times more potent than heroin, to the victim. That fentanyl caused the victim to die from an overdose. Less than three weeks later, in December 2022, investigators found Jackson with more than 80 grams of fentanyl in his home, as well as all the hallmarks of drug trafficking, including cash, a digital scale, a cell phone, and packaging materials.
The Kalamazoo Department of Public Safety (KDPS) and the Drug Enforcement Administration (DEA) investigated the case with additional assistance provided by the Michigan State Police (MSP). Assistant U.S. Attorneys Stephanie Carowan and Timothy Verhey represented the United States at trial.
Justice Department Secures Agreement with Providence, Rhode Island, Public Schools to Protect Civil Rights of Immigrant StudentsRead the Press Release
The Justice Department today announced a settlement agreement with the Providence, Rhode Island, Public School District to resolve an investigation into the district’s programs and services for new immigrant English learner students with limited or interrupted education, known in the district as “newcomers.” The Providence Public School District is the largest school district in Rhode Island, serving thousands of English learner students, including hundreds of newcomers.
“New immigrant students and families bring great promise and a wealth of strengths to school communities, but they too often face great adversity in accessing educational opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools far too frequently shut their doors to newcomers or divert them into segregated programs with few opportunities and inadequate services. Federal law is clear: all students, including immigrant students, have a right to meaningfully participate in their district’s educational programs, and the Justice Department is committed to enforcing that right in Rhode Island and across the country.”
“The Providence Public School District’s failure to meet its civil rights obligations to newcomer students is unacceptable,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island, “particularly coming as it does in the wake of an earlier, 2018 civil rights agreement that addressed the school district’s failure to accommodate English language learners. Providence’s woeful history of half measures and consistent failures to meet the critical needs of its most vulnerable students has necessitated today’s action: a more closely targeted and stringent agreement focused on the newcomer program.”
The agreement resolves the department’s investigation into complaints about civil rights violations at the district’s “Newcomer Academy,” a program intended to provide accelerated learning to newcomers aged seventeen and older. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Rhode Island found that the district had failed to provide adequate English language instruction to over 200 students at the Newcomer Academy. Indeed, dozens of students at the Newcomer Academy signed a petition during the 2023-24 school year stating that they wanted to learn English at their school. The department also found that the district failed to staff the program with qualified, trained teachers and administrators and unnecessarily segregated newcomers, depriving them of equal opportunities to receive special education and participate in programs such as career and technical education.
The district cooperated with the department during the investigation and has started to take steps to address some of the concerns identified by the department.
Under the agreement, the district will ensure that all students in newcomer programs receive adequate instruction in the English language and that teachers in newcomer programs are appropriately trained and qualified. In addition, the district will provide language translation and interpretation of important school information to parents of newcomers who are not fluent in English. The district will also ensure that newcomers have equal access to specialized programs and are appropriately integrated with other English learners and native English speakers.
The department conducted its investigation under the Equal Educational Opportunities Act of 1974 and the department’s 2018 agreement with the district (extended in 2021), addressing all of the district’s English learner services and programs. Today’s settlement, which focuses on newcomers, will supersede the previous agreement.
Enforcement of the Equal Educational Opportunities Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available at www.justice.gov/crt, and additional information about the work of the division’s Educational Opportunities Section is available at www.justice.gov/crt/combating-national-origin-discrimination-schools.
Members of the public can report possible civil rights violations at civilrights.justice.gov/report/ or by emailing [email protected]. Anyone in Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
View the settlement summary here.
View the settlement summary in Spanish here.
Justice Department Secures Agreement to Eliminate Voting Barriers for Native Americans in South DakotaRead the Press Release
WASHINGTON – The Justice Department has secured an agreement with Bennett County, South Dakota, and county officials to resolve claims that the county has failed to make its registration and early voting opportunities equally open to Native American voters as required by Section 2 of the Voting Rights Act.
Under the terms of the agreement, Bennett County will operate a satellite office in Allen, South Dakota, to provide in-person registration and absentee voting services during regular business hours for the full state-mandated 46-day absentee voting period prior to federal, state and county elections.
“It is time to eliminate all barriers standing between Native American voters and the ballot box across our country. An inclusive democracy must provide all of its eligible voters access to the full range of voter registration and early voting opportunities required by law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With this agreement, we will ensure that Native American voters will have the same access to registration and early voting as do other voters. The Justice Department will continue to challenge discriminatory election-related laws and policies and will vigorously enforce federal law to move us ever closer to a fully enfranchised Native electorate.”
“The right to vote is fundamental to our democracy, but that right is hollow without access to registration and early voting opportunities,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “We are grateful Bennett County has agreed to improve voting access for Native Americans in South Dakota by adding and staffing a satellite office in Allen.”
The Justice Department’s investigation found that Native Americans in Bennett County did not have equal access to the in-person registration and absentee voting available under state law. American Indians who live on Tribal lands disproportionally lack the ability to travel long distances to the county seat of Martin, South Dakota, for those in-person voting services. Since 2015, the state has made Help America Vote Act funds available to counties like Bennett to establish a satellite office on Tribal lands.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931. Individuals can also contact the U.S. Attorney’s Office for the District of South Dakota either by emailing [email protected] or by calling 605-330-4400.
Justice Department Launches Disability Rights Investigation into Unnecessary Institutionalization in Michigan’s State Psychiatric HospitalsRead the Press Release
The Justice Department announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the State of Michigan unnecessarily institutionalizes adults with serious mental illness in state psychiatric hospitals. The department will investigate whether the state fails to provide necessary community-based mental health services to enable people to transition from the state psychiatric hospitals and remain stable in the community.
Prior to the announcement, the department informed the Michigan Department of Health and Human Services and the State Attorney General’s Office of the initiation of the investigation.
“The Americans with Disabilities Act protects people’s right to receive mental health services in the community, rather than remaining in hospitals when they are ready to go home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This investigation will assess whether Michigan is honoring the ADA’s promise that people with disabilities be served in the most integrated setting appropriate. The Civil Rights Division will continue to advocate for states to provide people with disabilities the services they need to avoid unnecessary institutionalization.”
“Our office is committed to investing the resources necessary to investigate these claims because we will never tire of ensuring that every citizen is afforded the full protections of the Americans with Disabilities Act,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan.
“We open this investigation as part of our mission to protect civil rights and to ensure our neighbors with mental health disabilities can succeed and thrive in their communities,” said U.S. Attorney Mark A. Totton for the Western District of Michigan.
The Justice Department has not reached any conclusions regarding the subject matter under investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected], 888-392-5415 or through the Civil Rights Division’s Civil Rights Portal at civilrights.justice.gov/.
Additional information about the Civil Rights Division’s ADA enforcement is available at www.justice.gov/crt/rights-persons-disabilities and www.justice.gov/crt/disability-rights-section.
Jury Convicts Manhattan Man of Drug Conspiracy, Acquits Brooklyn ManRead the Press Release
ALBANY, NEW YORK – Keemont Reynolds, age 25, of Manhattan, New York, was convicted yesterday of a drug conspiracy following a four-day jury trial. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. A second man from Brooklyn, New York, was acquitted of charges.
The evidence at trial established that on November 1, 2023, law enforcement stopped a Jeep Grand Cherokee in Malone, New York, as the result of a drug trafficking investigation. Tyrece Franklin was driving the Grand Cherokee; Roddrick Ingram, of Brooklyn, was seated in the front passenger seat and Reynolds was seated in the back seat. Police located a false compartment built within the front dash of the Grand Cherokee. Within the hidden compartment, police found approximately 424 grams of methamphetamine, approximately 564.89 grams of cocaine, approximately 545.77 grams of cocaine base, and approximately 4.87 grams of heroin and fentanyl. In all, the drugs had an approximate street value of $140,000 in Malone.
After three days of testimony, the jury deliberated for five hours before convicting Reynolds of the conspiracy charge but acquitting him of possession of a controlled substance with intent to distribute. The jury acquitted Ingram of both charges.
Sentencing for Reynolds is scheduled for March 20, 2025, before Senior United States District Judge Glenn T. Suddaby in Albany, at which time the defendant faces a maximum term of imprisonment of 20 years and a term of supervised release of at least 3 years. The defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Franklin previously pled guilty and is scheduled to be sentenced on January 23, 2025. He faces at least 10 years and up to life in prison, as well as a term of supervised release of at least 5 years.
HSI and the New York State Police investigated this case. Assistant U.S. Attorneys Douglas Collyer and Jeffrey Stitt are prosecuting the case.
Judge Hands Man 10 Year Prison Term for November 2021 Carjacking, Robbery, and BurglaryRead the Press Release
WASHINGTON – Kenneth Phillips, 24, of Washington, D.C., was sentenced yesterday to a total of 120 months in prison for a carjacking and subsequent burglary that took place in Northeast Washington in November of 2021, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Phillips was found guilty by a jury of carjacking, robbery, assault, burglary, first degree theft, unauthorized use of a motor vehicle, and driving without a permit on July 26, 2024, following a trial in the Superior Court of the District of Columbia. In addition to the prison term, on November 12, 2024, the Honorable Robert A. Salerno sentenced Phillips to three years of supervised release.
According to the government’s evidence, on November 15, 2021, at approximately 9:00 p.m., Phillips was in the 2000 block of Fourth Street NE when he approached the victim from behind, striking him in the back of the head and taking his car and house keys. Phillips crossed the street with the victim’s keys before returning to the victim, striking the victim in the face and fish-hooking him in the mouth. Phillips then fled the area in the victim’s Toyota Sienna van.
On November 16, 2021, at approximately 4:00 a.m., officers with the Metropolitan Police Department located the defendant in the 700 block of K Street NE. Phillips was sitting in the driver’s seat of the victim’s Toyota van wearing a jacket that belonged to one of the victim’s family members. Police also recovered a key fob and a college graduation ring from the defendant’s pockets. The key fob belonged to the victim of the carjacking and the college graduation ring was later determined to have been stolen from the victim’s house. In the trunk of the victim’s Toyota van, police recovered a television in an unopened box that had been taken from the victim’s home.
At 7:00 a.m., on November 16, 2021, the victim’s family reported to police that their home had been burglarized. Specifically, the front and rear doors had been left open and unlocked, interior lights and doors were on, and bedrooms had been ransacked. Several of the belongings reported missing by the victim’s family were found by police on Phillips’s person and in the car he was driving at the time of his arrest.
Detectives with the Metropolitan Police Department recovered surveillance video from the area around the carjacking that captured the suspect before and during the carjacking. At the time of Phillips’s arrest, he was wearing clothing that matched that worn by the carjacking suspect in the surveillance video.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Erin DeRiso, who investigated the case; Paralegal Specialists Antoinette Sakamsa and Crystal Waddy; Supervisory Victim/Witness Service Coordinator Katina Adams-Washington; Victim/Witness Service Coordinators Guisela Castillo and Basizette Stribling; Supervisory IT Specialist Leif Hickling; and IT Specialist Sigourney Jackson. Finally, they commended the work of Assistant U.S. Attorneys Benjamin Helfand and Sara Matar, who prosecuted the case.
Johnson County Man Sentenced for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Hagerhill, Ky., man, Gary Warick, 58, was sentenced to 120 months in prison on Tuesday, by U.S. District Judge Robert Wier, following convictions for conspiracy to distribute 50 grams or more of methamphetamine, distribution of 50 grams or more of methamphetamine, distribution of methamphetamine, and possession with intent to distribute 50 grams or more of methamphetamine.
According to evidence presented at his trial, on April 26, 2022 and again on May 3, 2022, law enforcement in Johnson County made two controlled purchases of methamphetamine involving Warick. Thereafter, on May 4, 2022, execution of a search warrant on Warick’s residence uncovered additional methamphetamine. Collectively, the purchases and search resulted in the seizure of more than 130 grams of methamphetamine. Warick had previously been convicted of felony trafficking in a controlled substance, in 2010.
Under federal law, Warick must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentencing.
The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.
— END —
Jackson County volunteer fire chief sentenced to year in prison for mail fraudRead the Press Release
COLUMBUS, Ohio – The chief of the Coalton volunteer fire department was sentenced in U.S. District Court today to 12 months in prison for using more than $200,000 in fire department funds for personal expenses.
Johnny Baker, 38, of Wellston, Ohio, used his position as manager of the fire department’s finances to build up cash via pull tab sales. Baker raised funds from the local community through the legal form of gambling, which he initially implemented as a fundraiser. Several local businesses sold pull tabs to the community and sent the proceeds to Baker. Initially, Baker used proceeds to buy needed supplies for the department, but eventually supplemented his own income and spent money on cruises, resorts, sporting events, an ATV, firearms and more.
Baker began working for the volunteer fire department in 2009, filling various roles over the years including secretary/treasurer, assistant fire chief, and as of January 2023, fire chief.
He pleaded guilty in April to one count of mail fraud for the embezzlement, which included using fire department money to have items for his personal use shipped to his house via UPS. As part of his sentence, Baker will pay approximately $226,000 in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney David J. Twombly is representing the United States in this case.
# # #
Idaho Man Sentenced for Computer Hacking and Extortion SchemeRead the Press Release
An Idaho man was sentenced today to 10 years in prison for hacking into the computer servers of 19 victims across the United States, stealing personally identifiable information (PII) belonging to more than 132,000 people, and attempting to extort a Florida orthodontist for payment in Bitcoin by threatening to disclose stolen patient records and other PII.
According to court documents, in June 2017, Robert Purbeck, 45, of Meridian, purchased access to the computer server of a Griffin, Georgia, medical clinic on a darknet marketplace. He then used the stolen credentials to illegally access the computers of the medical clinic and removed records that contained sensitive PII for over 43,000 individuals, including names, addresses, birth dates, and social security numbers. In February 2018, Purbeck purchased access to a City of Newnan, Georgia, Police Department server on a darknet marketplace. Purbeck used the stolen credentials to hack into the City of Newnan computer systems and stole police reports and other documents, including PII for over 14,000 people.
Purbeck also attempted to extort a Florida orthodontist in July 2018, demanding a ransom payment in Bitcoin in return for his stolen patient files, threatening to sell the patient and personal information unless the orthodontist paid the ransom. Additionally, Purbeck threatened to sell the PII of the orthodontist’s minor child. Purbeck harassed the orthodontist and his patients for 10 days with numerous threatening emails and text messages.
On Aug. 21, 2019, the FBI executed a federal search warrant at Purbeck’s home in Meridian. During the search, the FBI seized multiple computers and electronic devices, which contained personal information of over 132,000 individuals, obtained through Purbeck’s numerous data breaches.
On March 19, Purbeck pleaded guilty to two counts of intentionally accessing and obtaining information from a protected computer without authorization.
In addition to his term of imprisonment, Purbeck was ordered to serve three years of supervised release and pay restitution to his victims in the amount of $1,048,702.98.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; and Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office made the announcement.
The FBI Atlanta Field Office investigated the case, with valuable assistance provided by the FBI Boise Resident Agency.
Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Michael Herskowitz, Nathan Kitchens, and Alex R. Sistla for the Northern District of Georgia prosecuted the case. The U.S. Attorney’s Office for the District of Idaho also provided valuable assistance in this case.
Idaho Man Sentenced for Computer Hacking and Extortion SchemeRead the Press Release
NEWNAN, Ga. - Robert Purbeck, who hacked into the computer servers of the City of Newnan, a Griffin, Georgia, medical clinic, and 17 other victims across the United States, and stole personal information belonging to more than 132,000 people, has been sentenced to federal prison. Purbeck also attempted to extort a Florida orthodontist for payment in Bitcoin, threatening to disclose stolen patient records and other personal information.
“Purbeck’s crimes reflect the efforts of a callous and brazen cybercriminal who not only hacked into numerous computer servers and stole sensitive personal information from both private and public actors, but also threatened to extort many of his victims and disclose their data,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the tireless work of law enforcement, Purbeck’s time of hiding behind a computer to steal, threaten, and intimidate is over.”
“Cyber extortion is unfortunately a rapidly growing threat and highlights the ever-growing need for corporations to remain vigilant in cybersecurity efforts,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing is just one example of the FBI working together to hold criminals that hide behind their computers accountable, regardless of their location.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2017, Purbeck purchased access to the computer server of a Griffin medical clinic on a darknet marketplace. He then used the stolen credentials to illegally access the computers of the medical clinic and removed records that contained the sensitive personal information of more than 43,000 individuals, including names, addresses, birth dates, and social security numbers.
In February 2018, Purbeck purchased access to a City of Newnan Police Department server on a darknet marketplace. Purbeck used the stolen credentials to hack into the City of Newnan’s computer systems and stole police reports and other documents, including personal information of more than 14,000 individuals.
Purbeck also attempted to extort a Florida orthodontist in July 2018, demanding a ransom payment in Bitcoin in return for his stolen patient files, threatening to sell the patient and personal information unless the orthodontist paid the ransom. Additionally, Purbeck threatened to sell the personal information of the orthodontist’s minor child. Purbeck harassed the orthodontist and his patients for 10 days with numerous threatening emails and text messages.
On August 21, 2019, FBI special agents executed a federal search warrant at Purbeck’s home in Meridian, Idaho. During the search, agents seized multiple computers and electronic devices, which contained personal information of over 132,000 individuals, obtained through Purbeck’s numerous data breaches, including the City of Newnan, the Griffin medical clinic, and at least 17 other victims throughout the United States. Many of these victims incurred substantial expenses, including remediation costs and disruption to business operations because of Purbeck’s conduct.
Robert Purbeck, 45, of Meridian, Idaho, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to his victims in the amount of $1,048,702.98. Purbeck was convicted of two counts of computer fraud and abuse on March 19, 2024,after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Atlanta Field Office, with valuable assistance provided by the FBI Boise (Idaho) Resident Agency.
Assistant U.S. Attorneys Michael Herskowitz, Nathan Kitchens, Alex R. Sistla, and Trial Attorney Brian Mund of the U.S. Department of Justice Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. The U.S. Attorney’s Office for the District of Idaho also provided valuable assistance in this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hunting Guides Sentenced for Violating the Migratory Bird Treaty ActRead the Press Release
Memphis, TN – Two men employed as hunting guides were recently sentenced for violating the Migratory Bird Treaty Act. The men were convicted for placing “bait”—grain, feed, or salt to serve as a lure—to attract waterfowl for the purpose of hunting. Reagan Fondren, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
A federal grand jury in the Western District of Tennessee indicted the following individuals on March 19, 2024, with placing bait to take or attempt to take a migratory game bird, violations of Title 16, United States Code, Sections 704(b)(2) and 707:
- Chase Michael Courville, 27, of Abbeville, Louisiana; and
- Dalton Harrison, 20, of Shelby County, Tennessee.
Violations of these statutes are punishable by a term of imprisonment of up to one year, a fine of $100,000, or both, and forfeiture of any firearm used to hunt the waterfowl attracted by the bait.
In early December 2023, Courville and Harrison placed corn and wheat on the ground next to a small pond in a field near Rosemark, Tennessee, a rural area in northern Shelby County. In the early morning hours of December 7, 2023, special agents of the United States Fish and Wildlife Service went to the pond and found Courville, Harrison, and several other people hunting waterfowl there. The agents saw corn and wheat on the ground and in the pond. By the time the agents arrived, the group had killed eight mallard ducks and a Canada goose. Both Courville and Harrison had worked as waterfowl hunting guides prior to this incident.
Courville and Harrison both pled guilty to the baiting charge. On September 6, 2024, Senior United States District Court Judge Jon Phipps McCalla sentenced Harrison to one year of probation and a fine of $7,500.00. On November 1, 2024, Judge McCalla sentenced Courville to one year of probation and a fine of $7,500.00. Courville and Harrison are prohibited from hunting or working as hunting guides during their probation. Courville and Harrison also agreed to forfeit the shotguns they were using on December 7 to the government.
“The U.S. Fish and Wildlife Office of Law Enforcement strives to ensure a fair and equitable hunting experience for all members of the public while protecting waterfowl populations from unsustainable methods of harvest,” said Doug Ault, the Special Agent in Charge of the Service’s Southeast Region. “We take the illegal placement of bait for the hunting of migratory birds seriously, and we will continue to work closely with the United States Attorney’s Office to investigate and prosecute these cases.”
The case was investigated by the U.S. Fish and Wildlife Service.
Acting United States Attorney Reagan Fondren thanked Assistant U.S. Attorney Joe Murphy, who prosecuted this case, as well as law enforcement partners for their role in the investigation.
###
For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Houston dental clinic employee imprisoned for role in $6M bribery schemeRead the Press Release
HOUSTON – A 54-year-old man has been sentenced following his conviction for conspiring to pay and receive health care kickbacks and payment of kickbacks to marketers, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for an hour following a three-day trial before finding Ifeanyi Ozoh guilty on all counts Feb. 14.
U.S. District Chief Judge Randy Crane has now ordered Ozoh to serve 72 months in federal prison to be immediately followed by three years of supervised release. Ozoh was also ordered to pay restitution to Medicaid in the amount of $4.9 million. At the hearing, the court heard Ozoh was integral to the kickback scheme as he bribed marketers and parents to bring their Medicaid-insured children to a sham dental clinic. In handing down the sentence, the court noted the overwhelming evidence of Ozoh’s guilt presented at trial.
Ozoh worked at a local dental clinic known as Floss Family Dentalcare Center from January 2020 to February 2021.
At the time of trial, the jury heard how Ozoh paid marketers $20 to $100 for each Medicaid-insured child referred to Floss. The marketers testified that Ozoh secretly paid them in cash and out of sight of other witnesses, sometimes putting their illegal kickback payments on top of a vending machine down the hall from the clinic.
One clinic manager testified that she repeatedly warned Ozoh that paying marketers was illegal.
The jury also heard that Ozoh paid out over $163,000 in bribes to marketers and received bonuses for reaching a quota of patients.
From 2020 to 2021, Floss billed Medicaid over $6 million. Floss received over $4 million on those claims, most of which were predicated on a kickback paid to marketers and for dental services that were not provided.
During the trial, a representative testified that Medicaid prohibits the payment of kickbacks for referrals of medical services.
Ozoh was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kathryn Olson and Lauren Valenti prosecuted the case.
Harlan County Man Sentenced for His Role in Methamphetamine Trafficking ConspiracyRead the Press Release
LONDON, Ky. – A Lynch, Ky., man, Steven Wayne Williams, 41, was sentenced to 180 months in prison on Tuesday, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute 500 grams or more methamphetamine.
According to his plea agreement, from December 2021 to August 31, 2022, Williams conspired with others to distribute 500 grams or more of methamphetamine. Specifically, Williams was part of a methamphetamine trafficking conspiracy that involved the importation or multiple kilos of a mixture of methamphetamine from Georgia, into Harlan County and other counties in Kentucky. Williams served as the “point man” for the source of supply in Georgia, and arranged for his co-conspirator Lawrence Lucas to travel to Georgia and return with several kilos of the drugs for distribution in Kentucky.
Under federal law, Williams must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentencing.
The investigation was conducted by the DEA and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.
— END —
Ghostface Gangster Members, Associate Plead Guilty to Meth Trafficking Conspiracy from Georgia PrisonsRead the Press Release
ALBANY, Ga. – A Georgia inmate who is a high ranking member of the Ghostface Gangsters (GFG)—a criminal organization founded in the prison system—pleaded guilty in federal court this morning to directing a large methamphetamine trafficking conspiracy involving another prisoner and GFG member, as well as a third co-defendant.
Donald Jason Miles aka “Crash” aka “Cocho,” 39, of Valdosta State Prison and Forsyth, Georgia, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine on Nov. 13. Co-defendants Warren Frederick Courts aka “Dirty,” 38, of Rutledge State Prison and Marietta, Georgia, and Keeli Nycole Wallace, 34, of Covington, Georgia, both pleaded guilty to one count each of conspiracy to possess with intent to distribute methamphetamine on Aug. 15 and Aug. 14 respectively. All defendants face a minimum of ten years to a maximum of life in prison to be followed by ten years of supervised release and a maximum $10 million fine. Chief U.S. District Judge Leslie Abrams Gardner is presiding over the case. Sentencing dates for the defendants will be determined by the Court. There is no parole in the federal system.
“Ghostface Gangsters Jason Miles and Warren Courts were directing the distribution of large quantities of methamphetamine from two state prisons into Southwest Georgia, a dangerous conspiracy that put many people at risk,” said U.S. Attorney Peter D. Leary. “We are partnering with law enforcement at every level to root out and hold accountable violent criminal organizations whose tentacles reach beyond prison walls and jeopardize the safety and well-being of our communities.” said U.S. Attorney Peter D. Leary.
“This career criminal continued his drug trafficking activities despite being incarcerated, demonstrating his complete and wanton disregard for the safety of our community,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA’s efforts in bringing him to justice will ensure this high-ranking gang member spends even more time in prison.”
“The Ghostface Gangsters have systematically worked to flood the communities of Georgia with dangerous drugs,” said GBI Director Chris Hosey. “The brazenness of these gang members to continue their criminal acts even behind bars must be met with decisive action to ensure justice and safety for our communities. This investigation shows that the GBI and our partners will work relentlessly to hold those who seek to poison our communities accountable.”
According to court documents and statements referenced in court, undercover Georgia Bureau of Investigation (GBI) agents conducted a drug bust at Motel 6 in Albany on Sept. 12, 2022, resulting from a larger investigation into drug trafficking from Georgia prisons. Agents learned Courts, a state prisoner, had arranged a drug transaction from behind bars and hired Wallace as a drug courier to move methamphetamine from a Mexico-based source located in metro Atlanta to Southwest Georgia. Agents arrested Wallace in the parking lot of Motel 6, finding approximately 1,400 grams of methamphetamine and her cell phones.
Investigators discovered that Miles had recruited Wallace as a drug courier several months before her arrest. Wallace admitted she had performed 10-15 deliveries of 250 grams or less of methamphetamine at Miles’s direction. Miles introduced Wallace to Courts; both Miles and Courts are members of the prison-based criminal organization, Ghostface Gangsters. Courts is a subordinate of Miles, as demonstrated by Courts giving Miles a portion of the profit he made from selling narcotics. During one transaction, Courts instructed Wallace to obtain methamphetamine from a Mexico-based source of supply near Atlanta, Georgia, and take it to meet a buyer at a Walmart in Albany. The buyer did not show up, and Miles instructed Wallace to return to Atlanta. The next day, Courts told Wallace that the intended buyer was ready. She returned to a Motel 6 in Albany, where she was subsequently arrested.
At the time, Miles was incarcerated at Valdosta State Prison, and Courts was incarcerated at Rutledge State Prison. Georgia Department of Corrections (GDC) officers searched their prison cells on Sept. 16, recovering contraband mobile phones. Search warrants were executed on the phones, and investigators discovered detailed communications between Miles, Courts and Wallace related to the drug conspiracy, including communications involving the Mexico-based source of supply and the trafficking of large quantities of methamphetamine. The investigation revealed that Wallace was just one courier recruited by Miles, and that Miles and Courts had funneled numerous redistributors to the Mexican source of supply near Atlanta, resulting in the distribution of at least 50 kilograms of methamphetamine between a two-month period as a part of this conspiracy.
Both Miles and Courts have lengthy criminal histories, including multiple felony convictions for drug distribution and trafficking. Miles was most recently convicted in the Superior Court of Gwinnett County, Georgia, on April 28, 2021, for conspiracy to traffic methamphetamine and was sentenced to serve 30 years in prison. Courts was most recently convicted in the Superior Court of Cobb County, Georgia, on Oct. 1, 2021, for possession with intent to distribute methamphetamine and was sentenced to serve a total of 15 years with eight years to be served in custody and the remainder on probation.
The case was investigated by the Drug Enforcement Administration (DEA) and the Georgia Bureau of Investigation (GBI).
Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.
Georgia Woman Sentenced to 63 Months in Federal Prison for Embezzling More Than $1.6 Million from Local Business and Laundering the Fraudulent ProceedsRead the Press Release
BATON ROUGE, LA – United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Thanh Hoa Thi Bui, also known as Xena Bui, age 42, a resident of Valdosta, Georgia, to 63 months in federal prison following her convictions for wire fraud and making unlawful monetary transactions. The Court further sentenced Bui to serve three years of supervised release following her term of imprisonment and ordered her to pay $1,694,095.59 in restitution.
According to admissions made as part of her guilty pleas, between 2017 and 2020, Bui lived in Denham Springs, Louisiana. She worked at a small business located on North Sherwood Forest Drive in Baton Rouge, which has been in business for more than a decade, and where Bui was trusted to assist with the company’s bookkeeping and accounting, among other tasks. Beginning in or about September 2017 and continuing through November 2020, however, Bui embezzled more than $1.6 million from the business by using the company’s bank account to make hundreds of fraudulent transactions and concealing the scheme from her employer.
Bui accomplished the scheme in several different ways. On more than 100 different occasions, she used her access to the victim’s bank account to generate checks that were payable to herself and then used fraudulent pretenses to induce her employer to sign the checks, which she would then deposit into one of her personal bank accounts. Bui also used the victim’s bank account to pay the electricity and gas for a large chicken farm that she maintained in Mississippi and to make payments to a company in Covington, Louisiana, to which she owed money for real estate that she and another individual had purchased. In total, as the Court found at today’s sentencing, Bui embezzled $1,694,095.59 from the victim and caused the victim a substantial financial hardship.
Bui took extensive steps to conceal her scheme, including by providing her employer with altered copies of the company’s bank statements and by using her access to the company’s accounting program to disguise the fraudulent transactions as payments to the company’s regular vendors and suppliers.
Finally, as Bui obtained proceeds from the scheme, she would quickly move the proceeds through her bank accounts, withdraw the funds in cash, and make other transactions. For instance, on October 6, 2020, she fraudulently obtained a check in the amount of $56,252.52, payable to herself, which she deposited into one of her personal bank accounts. She immediately withdrew $50,000 from the account and then, beginning later that day and continuing through the following day, she purchased more than $50,000 in chips at a local casino.
In July 2023, a federal grand jury returned an indictment charging Bui with the criminal conduct described above, and the Court issued a warrant for her arrest. Her location was unknown, however, and she remained a fugitive until October 2023, when agents located her in Las Vegas, Nevada, and arrested her.
This matter was investigated by the United States Secret Service, with valuable assistance from the East Baton Rouge Parish Sheriff’s Office and the Louisiana State Police. The matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who also serves as Senior Litigation Counsel.
Frederick County Man Sentenced to Federal Prison for Coercing and Enticing Minor to Engage in Sexual ActivityRead the Press Release
Defendant used mobile phones to lure two victims – including while on bail pending charges related to his arrest.
Baltimore, Maryland – Today, U.S. District Judge Richard D. Bennett sentenced Michael Vance Culpepper, 56, Walkersville, Maryland, to 10 years in federal prison, followed by 25 years of supervised release, for the enticement and coercion of a minor to engage in sexual activity. Judge Bennett also ordered that upon his release from prison, Culpepper must register as a sex offender in the places where he resides, is employed, and/or is enrolled as a student, pursuant to the Sex Offender Registration and Notification Act (SORNA).
Erek L. Barron, U.S. Attorney for the District of Maryland; Inspector General Teri L. Donaldson, United States Department of Energy’s Office of the Inspector General (DOE-OIG); Special Agent in Charge Michael S. McCarthy, Homeland Security Investigations (HSI), Baltimore Field Office; Colonel Roland L. Butler, Jr., Superintendent, Maryland State Police (MSP); Paul Joey Kifer, Chief , Hagerstown Police Department (HPD); and State’s Attorney Anne Colt Leitess, Office of the State’s Attorney for Anne Arundel County, Maryland.
According to his guilty plea, in April and May 2023, Culpepper used mobile phones and online applications to persuade, induce, entice, and coerce two victims whom he believed to be 13- and 14-year-old females to engage in sexual activity.
With the first victim — an undercover law enforcement officer posing as a 13-year-old girl — Culpepper used the internet and his phones to exchange sexually explicit messages and request sexually explicit images. Culpepper encouraged the victim to hide her conversations from her parents, writing, “you DEFINITELY need to delete these texts when we are done.” On May 8, 2023, Culpepper drove approximately 50 miles to meet the victim at a restaurant in Hanover, Maryland. When he arrived, he was arrested.
After Culpepper was released on May 9, 2023, with the condition that he have no further contact with minors, Culpepper initiated online contact with Jane Doe 1, a 14-year-old female. Culpepper used the internet to entice Jane Doe 1 to engage in sexually explicit conversations. Culpepper also sent Jane Doe 1 sexually explicit photos of himself and requested that Jane Doe 1 produce nude images of herself to send to him. Culpepper arranged a meeting with Jane Doe 1 for the purpose of engaging in unlawful sexual activity. On May 28, 2023, Culpepper picked up Jane Doe 1 near her home, and then drove her around for approximately one hour before stopping at a park. Culpepper used ice cream, money, a hotel room, and vaping devices to entice Jane Doe 1 to engage in sexual contact. Jane Doe 1 refused, but following the meeting, Culpepper continued to use the internet to entice Jane Doe 1 to meet with him and engage in sex acts.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the DOE-OIG, HSI, ARMY CID, MSP, HPD, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Paul E. Budlow and Reema Sood, who prosecuted the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Former Vice President of Product Development Admits Theft of Trade Secrets from New Jersey-Based Producer of Oil Products and Proprietary FlavorsRead the Press Release
NEWARK, N.J. – A former vice president of product development at a New Jersey-based producer of oil products and proprietary flavors admitted possessing and conspiring to possess stolen trade secrets, U.S. Attorney Philip R. Sellinger announced today.
Andrew Blum, 63, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court on Nov. 12, 2024, to an information charging him conspiracy to possess stolen trade secrets and possession of stolen trade secrets.
“A company’s intellectual property – its proprietary materials and trade secrets – have enormous value to the companies that develop them, sometimes constituting their most valuable assets. Stealing them is a crime. This defendant admitted stealing trade secrets, including a secret formula used in one of the most recognizable names in the global soft drink industry. Our office will prosecute cases like this with the same vigor as any other theft.”
U.S. Attorney Philip R. Sellinger
“Blum admits he stole his employer's trade secrets and hoped to use the information so he could get a job across the street,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “Protecting the proverbial keys to the castle is essential for companies to remain in business and stay competitive. It’s even common for corporations to house formulas and recipes in literal vaults to keep them from being stolen. One of the FBI’s priorities is protecting companies from these types of crimes and holding accountable anyone who tries to sneak out the back door.”
According to documents filed in this case and statements made in court:
From 2013 to Dec. 12, 2018, Blum was the vice president of product development for a company that is a subsidiary of a New Jersey-based corporation that maintained its principal place of business in Northern New Jersey. The company’s parent corporation was one of the world’s largest producers of oils, juices, peel and byproducts, as well as a leading manufacturer of proprietary flavors sold to, among others, the world’s largest beverage companies. The company’s entire business was predicated on the development of formulas used in the production of flavors and as such, the intellectual property represented in formulas is one of the company’s most important assets.
In December 2018, the company’s information technology team discovered that another employee from company used a personal email account to forward 82 files, each of which contained proprietary and trade secret information, to Blum on his personal email account. The list of 82 files included virtually all of the formulas used in the department where Blum worked. The company later learned that Blum and the other employee accessed other sensitive formulas belonging to the company that Blum and the employee were not working on and should not have accessed, including a secret formula used in one of the most recognizable names in the global soft drink industry. Other email communication between non-company accounts showed that Blum and the other employee were planning to leave the company to work for competitor companies. Law enforcement later recovered other trade secret information from Blum’s residence and from one of Blum’s cloud-based storage accounts, including handwritten notes for a product that the company produces that is sold by one of the world’s largest soda companies in a country in Asia.
The counts of conspiracy to possess stolen trade secrets and possession of stolen trade secrets each carry a maximum potential penalty of 10 years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 20, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the U.S. Attorney’s Office General Crimes Unit in Newark, with assistance from the National Security Unit.
blum.information.pdfFormer U.S. Postal Service Officer Pleads Guilty to Theft and Sale of Checks Addressed to Pittsburgh Area BusinessesRead the Press Release
PITTSBURGH, Pa. - A resident of Monroeville, Pennsylvania, pleaded guilty in federal court to charges of theft of mail, United States Attorney Eric G. Olshan announced today.
Ahmad Omar Shareef, 35, pleaded guilty to four counts before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the Court was advised that, on several occasions from October 2023 to April 2024, Shareef—a former U.S. Postal Service Human Resource Officer at the Bloomfield Post Office—removed and stole business checks contained in U.S. mail addressed to Pittsburgh area businesses. Shareef then used an encrypted messaging app to sell the checks to buyers in other cities. This mail included more than 450 checks recovered from Shareef and his property that were addressed to businesses in Pittsburgh area neighborhoods and that totaled more than $6 million. Nearly $250,000 of that total was fraudulently negotiated by buyers, with Shareef admitting to earning an estimated $20,000 through the scheme.
Judge Wiegand scheduled sentencing for March 25, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Postal Service - Office of Inspector General and United States Postal Inspection Service conducted the investigation that led to the prosecution of Shareef.
Former Keene Woman Sentenced to Prison for Stealing Almost $500,000 from her EmployerRead the Press Release
CONCORD – A former Keene woman was sentenced yesterday in federal court for stealing almost $500,000 from her former employer, U.S. Attorney Jane E. Young announces.
Stephanie Pratt, 39, was sentenced by U.S. District Court Judge Landya B. McCafferty to 30 months in prison and 3 years of supervised release. On August 6, 2024, Pratt pleaded guilty to one count of wire fraud.
“The defendant used her position of trust as an employee to steal nearly a half-million dollars from a small New Hampshire business. Among other items, she used the stolen money to purchase a hot tub and she spent over $5,600 on lavish tickets to watch Tom Brady’s return to Gillette Stadium,” said U.S. Attorney Jane E. Young. “The defendant’s criminal conduct was bold, as she began her fraud only six months after serving a sentence for stealing from a previous employer. The defendant will spend the next two and a half years in federal prison for her deceit along with the financial and emotional turmoil she caused her employer.”
“Stephanie Pratt is a greedy, serial fraudster who is being sent to prison for defrauding her employer and siphoning almost half-a-million dollars to live well beyond her means,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Today’s sentence holds Ms. Pratt responsible for her clear disdain for the law and shows how the FBI will not hesitate to go after those who victimize others for their own financial gain.”
Pratt was the office administrator for a company based in Hinsdale, New Hampshire. She had full access to the company’s finances, including its bank accounts and credit cards. Over the course of six-and-a-half years, Pratt stole $492,325.34 from the company. She started stealing shortly after she was released from jail for stealing almost $10,000 from her previous employer.
Pratt cashed unauthorized checks to herself and entered them as payments to legitimate vendors in the company’s accounting system. Pratt also used the company’s credit cards to make over 1,000 unauthorized personal purchases. The fraudulent purchases included over $5,600 to purchase NFL tickets for Tom Brady’s return to Gillette stadium in 2021 and over $50,000 on Amazon purchases on items including a hot tub. Pratt also used the stolen money on things like plane tickets and miscellaneous herbs and spices.
When confronted about the stealing, Pratt repeatedly lied to the victim company, such as claiming that the owner had her cash the checks to funnel the money to the owner’s son. However, unbeknownst to Pratt the son had already passed away. Pratt also doctored the victim’s financial records. For example, she edited the company’s credit card statements to delete unauthorized purchases. When asked why there were missing entries in the statements, Pratt claimed that she had simply adjusted the statements to make them easier to read. She also claimed that her misuse of the company credit cards was attributable to her clicking the wrong button at checkout, despite that happening more than 1,000 times. And, when she was fired for stealing, Pratt demanded that the owner’s widow pay her a Christmas bonus.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Alexander S. Chen prosecuted the case.
###
Former IRS Employee Pleads Guilty to Fraudulent Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A former IRS employee pleaded guilty in federal court today to preparing fraudulent tax returns that illegally claimed more than $200,000 in refunds for her clients.
Sandra D. Mondaine, 64, of Grandview, Mo., pleaded guilty before U.S. District Judge Howard F. Sachs to one count of aiding and abetting in the preparation and filing of false tax returns.
Mondaine previously worked for the IRS as a contact representative before retiring.
By pleading guilty today, Mondaine admitted that she prepared federal income tax returns for clients that contained false and fraudulent claims. The indictment charged her with assisting at least 11 individuals to file at least 39 false and fraudulent income tax returns for the tax years 2019 through 2021. The tax loss associated with those false returns is approximately $237,329. The parties do not agree on the total tax loss.
By including fraudulent items on her clients’ tax returns, Mondaine was able to manufacture substantial refunds to her clients that they would not have been entitled to if the returns had been accurately prepared. Mondaine charged her clients a fee, which was either a fixed dollar amount and/or a percentage of the tax refund.
Under the terms of today’s plea agreement, Mondaine must pay restitution to the Internal Revenue Service, as determined by the court, representing the total tax loss associated with the conduct to which she is pleading guilty. Mondaine also consents to a permanent injunction in a separate civil action, under which she will be permanently enjoined from preparing, assisting in, directing or supervising the preparation or filing of federal tax returns for any person or entity other than herself.
Under federal statutes, Mondaine is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Former Federal Government Employee Pleads Guilty to False StatementsRead the Press Release
WASHINGTON—Tremayne Matthews, 38, of Waldorf, Maryland, pleaded guilty today in U.S. District Court to one count of a concealing material facts from the federal government. The charge stemmed from a years-long scheme in which Matthews submitted hundreds of falsified resumes to obtain federal employment and then dozens of forged affidavits in connection with an administrative hearing after he had been terminated.
The plea was announced by U.S. Attorney Matthews Graves; U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Marcus L. Sykes; U.S. Department of Commerce Office of Inspector General (DOC-OIG) Special Agent in Charge Duane Townsend; and Treasury Inspector General for Tax Administration (TIGTA) Special Agent Andrew McKay.
U.S. District Court Judge Emmet G. Sullivan scheduled a sentencing hearing for May 29, 2025.
According to the plea paperwork, beginning in November 2018 and continuing through November 2022, Matthews submitted more than 200 applications for employment with multiple federal agencies, including the U.S. Food and Drug Administration (FDA); the Internal Revenue Service (IRS); the U.S. Department of Health and Human Services (HHS); and the U.S. Patent and Trademark Office (USPTO). In connection with these applications, Matthews made multiple misrepresentations. In addition to submitting falsified resumes that contained information he had copied and pasted from a resume belonging to a former co-worker, Matthews also concealed the fact that he had resigned from employment in lieu of being terminated. On the basis of these misrepresentations, Matthews was hired by the federal government into positions that earned an annual salary of more than $100,000.
As part of his guilty plea, Matthews also admitted to submitting fabricated affidavits to the federal government. In 2020, the U.S. Office of Personnel Management (OPM) investigated Matthews’ employment history. Rather than admit his wrongdoing, the Matthews submitted a rebuttal package to OPM that contained at least four signed and notarized affidavits from former associates, as well as email exchanges, vouching for the information contained in his resume. In reality, Matthews had fabricated the affidavits and emails entirely. The individuals listed in the affidavits had not signed the documents, nor had the documents actually been notarized. Matthews also created a fake email address that he used to perpetrate the fraud.
This case was investigated by the HHS-OIG, DOC-OIG, and TIGTA. The case is being prosecuted by Assistant United States Attorney Christopher R. Howland of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
24cr469
Florida Woman Pleads Guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Defendant and co-Conspirators submitted at least 150 fraudulent unemployment insurance applications.
Baltimore, Maryland – Tiia Woods, 46, Jacksonville, Florida, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in connection with an unemployment insurance scheme.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge Troy W. Springer, National Capital Region, U.S. Department of Labor’s Office of Inspector General (DOL-OIG), and Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation, Baltimore Field Office.
According to the guilty plea, beginning in June 2020 through approximately May 2021, Woods and her co-conspirators submitted false and fraudulent Unemployment Insurance (UI) applications that contained the identity unsuspecting victims’ contact information, addresses, employment status, work history, occupation, and eligibility for benefits.
Woods’ fraud was facilitated by email and other internet communications when she applied for UI benefits, modified UI claims within the Maryland Department of Labor (MD-DOL) system, and checked the status of claims. In response, MD-DOL disbursed UI benefits via Bank of America (BOA) prepaid debit cards. Woods also engaged in ATM withdrawals, point-of-sale transactions, and other financial transactions, such as transfers to CashApp.
In total, Woods and her co-conspirators submitted at least 150 fraudulent applications in the names of purported claimants and identity theft victims. Through Woods’ actions, in the course of the conspiracy and scheme to defraud, the United States, MD-DOL, BOA, and multiple individuals lost at least $3,296,725.
Through the CARES Act, small businesses are offered financial assistance — including forgivable loans for job retention and certain other expenses — through the Paycheck Protection Program, which is administered through the Small Business Administration (SBA). The SBA also offers an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance does not have to be repaid, and small businesses can receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount is $10,000.
Financial assistance offered through the CARES Act also includes expanded eligibility for UI benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (PUA), Federal Pandemic Unemployment Compensation (FPUC), and the Lost Wages Assistance Program (LWAP).
On Count 1, conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, Woods faces a maximum of 20 years in prison followed by three years of supervised release. On Count 2, aggravated identity theft in violation of 18 U.S.C. § 1028A, Woods faces a minimum two-year consecutive prison term, followed by one year of supervised release. U.S. District Judge Julie R. Rubin has scheduled sentencing for March 26, 2025, at 10 a.m.
U.S. Attorney Barron commended the DOL-OIG and FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Cusson and Harry Gruber, who are prosecuting the federal case. U.S. Attorney Barron also thanked Bank of America - Detection and Complex Investigations Fraud Rings and Analytics for their assistance with this matter.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. Strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts that use prosecutor-led and data-analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Fifth West Virginia Corrections Officer Pleads Guilty to Federal Civil Rights Violation in Connection with Death of InmateRead the Press Release
CHARLESTON, W.Va. - A former corrections officer from the Southern Regional Jail in Beaver, West Virginia, pleaded guilty today for his role in an assault that resulted in the death of an inmate, identified by the initials Q.B., on March 1, 2022. Mark Holdren pleaded guilty to conspiring with other officers to violate inmate Q.B.’s civil rights which resulted in the death of Q.B.
According to court documents filed in connection with the guilty plea, Holdren responded to a call for officer assistance after Q.B. tried to push past another correctional officer and leave his assigned pod. When Holdren arrived, officers were engaged in using force to restrain Q.B. Holdren also began using force which included multiple knee-strikes to Q.B.’s body, which he acknowledged were unreasonable uses of force according to his training and experience. Holdren and other officers then conspired to violate Q.B.’s civil rights by unlawfully punishing Q.B. to retaliate against him for his attempt to push past officers and leave the pod. As a part of that conspiracy, officers brought Q.B. to an interview room, where they continued to use unreasonable force against Q.B. Specifically, officers struck Q.B. in the head multiple times, kicked, knee-struck, pulled and twisted Q.B.’s finger and sprayed Q.B. with O.C. spray, all while Q.B. was restrained, handcuffed and posed no threat to anyone.
Holdren further admitted knowing that the interview room to which officers brought Q.B. was a “blind spot” at the jail — meaning, there were no surveillance cameras to record what happened inside the room. Holdren was aware that, prior to the assault of Q.B. on March 1, 2022, officers brought inmates and pretrial detainees who had engaged in misconduct to “blind spots” in the jail, where the officers could use unreasonable force without being captured on video. Holdren admitted that he knew that it was improper for officers to use unreasonable force to punish inmates and pretrial detainees.
Holdren is one of six former correctional officers indicted by a federal grand jury in November 2023. Two defendants previously pleaded guilty in connection with the use of unreasonable force against Q.B. On Aug. 8, Ashley Toney and Jacob Boothe each pleaded guilty to violating Q.B.’s civil rights by failing to intervene when other officers used unreasonable force. Sentencing hearings for Boothe and Toney are scheduled for Jan. 9, 2025.
Trial for the remaining three defendants is scheduled for Dec. 10.
Prior to the indictment, on Nov. 2, 2023, former Southern Regional Jail officers Steven Nicholas Wimmer and Andrew Fleshman each separately pleaded guilty to conspiring with other officers to use unreasonable force against Q.B in connection with this incident. Sentencing hearings for Wimmer and Fleshman are scheduled for Feb. 7, 2025.
According to his plea agreement, Holdren faces a maximum penalty of 30 years in prison and a fine of up to $250,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney William S. Thompson for the Southern District of West Virginia and Special Agent in Charge Kevin P. Rojek of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office, Charleston Resident Agency, is investigating the case.
Deputy Chief Christine M. Siscaretti and Trial Attorney Tenette Smith of the Justice Department’s Civil Rights Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia are prosecuting the case.
###
Fifth West Virginia Corrections Officer Pleads Guilty to Federal Civil Rights Violation in Connection with Death of InmateRead the Press Release
A former corrections officer from the Southern Regional Jail in Beaver, West Virginia, pleaded guilty today for his role in an assault that resulted in the death of an inmate, identified by the initials Q.B., on March 1, 2022. Mark Holdren pleaded guilty to conspiring with other officers to violate inmate Q.B.’s civil rights which resulted in the death of Q.B.
According to court documents filed in connection with the guilty plea, Holdren responded to a call for officer assistance after Q.B. tried to push past another correctional officer and leave his assigned pod. When Holdren arrived, officers were engaged in using force to restrain Q.B. Holdren also began using force which included multiple knee-strikes to Q.B.’s body, which he acknowledged were unreasonable uses of force according to his training and experience. Holdren and other officers then conspired to violate Q.B.’s civil rights by unlawfully punishing Q.B. to retaliate against him for his attempt to push past officers and leave the pod. As a part of that conspiracy, officers brought Q.B. to an interview room, where they continued to use unreasonable force against Q.B. Specifically, officers struck Q.B. in the head multiple times, kicked, knee-struck, pulled and twisted Q.B.’s finger and sprayed Q.B. with O.C. spray, all while Q.B. was restrained, handcuffed and posed no threat to anyone.
Holdren further admitted knowing that the interview room to which officers brought Q.B. was a “blind spot” at the jail — meaning, there were no surveillance cameras to record what happened inside the room. Holdren was aware that, prior to the assault of Q.B. on March 1, 2022, officers brought inmates and pretrial detainees who had engaged in misconduct to “blind spots” in the jail, where the officers could use unreasonable force without being captured on video. Holdren admitted that he knew that it was improper for officers to use unreasonable force to punish inmates and pretrial detainees.
Holdren is one of six former correctional officers indicted by a federal grand jury in November 2023. Two defendants previously pleaded guilty in connection with the use of unreasonable force against Q.B. On Aug. 8, Ashley Toney and Jacob Boothe each pleaded guilty to violating Q.B.’s civil rights by failing to intervene when other officers used unreasonable force. Sentencing hearings for Boothe and Toney are scheduled for Jan. 9, 2025.
Trial for the remaining three defendants is scheduled for Dec. 10.
Prior to the indictment, on Nov. 2, 2023, former Southern Regional Jail officers Steven Nicholas Wimmer and Andrew Fleshman each separately pleaded guilty to conspiring with other officers to use unreasonable force against Q.B in connection with this incident. Sentencing hearings for Wimmer and Fleshman are scheduled for Feb. 7, 2025.
According to his plea agreement, Holdren faces a maximum penalty of 30 years in prison and a fine of up to $250,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney William S. Thompson for the Southern District of West Virginia and Special Agent in Charge Kevin P. Rojek of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office, Charleston Resident Agency, is investigating the case.
Deputy Chief Christine M. Siscaretti and Trial Attorney Tenette Smith of the Justice Department’s Civil Rights Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia are prosecuting the case.
Fentanyl Trafficker with Guns Sentenced to 12 YearsRead the Press Release
RALEIGH, N.C. – A Jacksonville man was sentenced to 152 months in prison for selling drugs and firearms at the same time in New Bern and Jacksonville. On March 26, 2024, Fan Troy Staton, age 50, pled guilty to conspiracy to distribute and possession with the intent to distribute 50 grams or more of methamphetamine, distribution of five grams or more of methamphetamine, and possession of a firearm by a felon.
“Drug trafficking and guns go hand in hand,” said U.S. Attorney Michael F. Easley, Jr. “This trafficker dealt guns alongside his fentanyl, including a fifty-caliber rifle. We can’t let armed drug traffickers roam our streets and aren’t letting up in our support for local communities fighting drugs and violence that has claimed far too many lives.”
Craven County Sheriff Chip Hughes stated, “This prosecution by U.S. Attorney Michael F. Easley’s Office, working with local, state, and federal law enforcement partners represents another successful example of removing a criminal drug and firearms dealer from Eastern North Carolina and sends a strong message for those who chose to engage in illegal activities.”
According to court documents and other information presented in court, Staton sold methamphetamine and fentanyl to a confidential informant on ten occasions in 2021, at times including firearms with the drugs. On one occasion, Staton sold the informant approximately 14 grams of fentanyl along with a .50 caliber rifle. On another occasion, he sold approximately 23 grams of methamphetamine, five grams of fentanyl, and a 12-gauge shotgun. In total, Staton distributed or possessed with the intent to distribute over 67 grams of methamphetamine, 69 grams of fentanyl, and 141 grams of cocaine, and he possessed or sold six firearms in connection with his drug trafficking activities.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The New Bern Police Department, Craven County Sheriff’s Office, Onslow County Sheriff’s Office, N.C. State Bureau of Investigation, Naval Criminal Investigation Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Charles E. Loeser prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-71-FL.
Federal Jury Convicts Siblings of Fraud; Defendants Made Tens of Millions of Dollars from Lying to Manufacturers in Years-Long SchemeRead the Press Release
SAN DIEGO – Adriana Camberos (formerly Adriana Shayota) and Andres Camberos, sister and brother, were convicted by a federal jury of multiple fraud charges on October 25, 2024.
Their illegal scheme involved lying to manufacturers to sell wholesale groceries and other goods at steep discounts by promising the goods would be sold in Mexico, or to prisons or rehabilitation facilities. Instead, the defendants sold the products at higher prices to U.S. distributors, for the U.S. market. Wire fraud charges arose from the numerous wire transfers, as well as other interstate communications, the defendants made as they bought products from the manufacturers, transferred money among their own companies to facilitate the scheme, and then re-sold the products at higher prices to U.S. customers.
Following an 11-day trial, the jury found the defendants guilty of eight of 11 counts that went to the jury. Adriana and Andres Camberos were both found guilty of conspiracy to commit wire and mail fraud and seven wire fraud counts, and not guilty of three mail fraud counts.
According to evidence presented at trial, the defendants owned and controlled three businesses: Tradeway International, Inc., doing business as Baja Exporting (owned by Adriana Camberos); Specialty Foods International, Inc., doing business as Promix Co., Prison Food Depot, Rehab Food Depot and Specialty Foods International (owned by Andres Camberos); and Baja Foodservice S.R.L. de C.V. (95% owned by Andres Camberos and managed by Adriana Camberos). Specialty Foods International and Baja Exporting shared a warehouse and office space in San Diego. Baja Foodservice had a warehouse in Tijuana. All three operated together, as sister companies.
Baja Exporting claimed to be an exporter of grocery items and consumer goods to Baja California, Mexico. Similarly, Specialty Foods International, claimed to be a regional distributor of groceries and other goods to retailers in Baja California, Mexico, and to correctional facilities and rehabilitation and wellness facilities within the United States. Baja Foodservice likewise claimed to be a regional distributor in Baja California, Mexico.
The defendants used the three companies—especially Baja Foodservice—to tell manufacturers that they would sell the manufacturers’ products in Mexico, and based on that, they received significant discounts for purported sales, distribution, and exporting to the Baja California market. The defendants also sought discounted goods for Specialty Foods International, d/b/a Prison Food Depot and Rehab Food Depot, based on the claim that they sold products to prisons and rehab facilities.
But the defendants lied. In a years-long scheme, they used their three companies to get those lower prices from manufacturers and resell the products at higher prices to U.S. customers—often the same distributors the victim companies were already selling their products to. Between 2019 and September 2023 alone, Baja Exporting and Specialty Foods International sold hundreds of millions of dollars of products to U.S. distributors; less than a tenth of one percent of their sales were to any Mexican retailer or distributor, and they did no business with prisons or rehab centers.
The defendants took other numerous steps to conceal and perpetuate their fraud. For example, the defendants removed GPS tracking devices from manufacturers’ shipments; removed Spanish-language labels or packaging intended for the Mexican market; obtained Mexican customs documents to try to prove to manufacturers that products were being exported; arranged “market visits” in Tijuana, taking manufacturers’ representatives to various stores in Baja California where they placed the manufacturers’ products—often alongside models who were hired by the defendants’ companies and associates—to create the appearance the products were being sold as promised; had a fake “office” in Mexico City to meet with manufacturers, in an effort to make the companies think the defendants did substantial business in Mexico; and otherwise doubled down on their lies when the victim companies suspected the defendants were diverting their products and defrauding them.
Baja Exporting and Specialty Foods International made over $58 million in gross profits between January 2019 and September 2023. As owners, the defendants made millions each. In the same time period, Adriana Camberos took in over $12 million from Baja Exporting, and Andres Camberos paid himself over $14 million from Specialty Foods International. This caused manufacturers to lose tens of millions of dollars—money they would have made in the normal course of selling to U.S. distributors, but for the defendants’ lies.
With the money they made from the scheme, Adriana and Andres Camberos made extensive luxury purchases and investments. They bought or financed a Ferrari F12 Berlinetta, a Lamborghini Huracan, and multiple Range Rovers; purchased multiple homes in the San Diego area; purchased a condominium at the beach in Coronado; and put the money in multiple investment accounts, life insurance policies, a cryptocurrency account, and other assets. These and other items are subject to forfeiture.
“These defendants’ deception led to millions in illegal profits, but the gain was fleeting,” said U.S. Attorney Tara McGrath. “When this elaborate scheme unraveled, justice prevailed.”
“The Camberos siblings built a multimillion-dollar empire solely on fraud,” said FBI San Diego Special Agent in Charge Stacey Moy. “This conviction should send a clear message that fraud — no matter the scale — will be thoroughly investigated and those found guilty of perpetrating such schemes will be brought to justice.”
The defendants are scheduled to be sentenced on March 3, 2025, before U.S. District Judge Cynthia Bashant.
This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor, Peter Horn and Jordan Arakawa.
DEFENDANTS Case Number 23-CR-1916-BAS
Adriana Isabel Camberos (aka Adriana Shayota) Age: 54 San Diego, CA
Andres Enrique Camberos Age: 45 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalty: Twenty years in prison
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum Penalty: Twenty years in prison
INVESTIGATING AGENCY
Federal Bureau of Investigation
Federal Jury Convicts Midwest City Man of Manufacturing Crack Cocaine and Illegal Firearm PossessionRead the Press Release
OKLAHOMA CITY – A federal jury has convicted ANTONIO LARINGO KNOX, 53, of Midwest City, of manufacturing cocaine base, commonly known as crack cocaine, and illegal possession of firearms after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On January 17, 2024, a federal grand jury returned a Superseding Indictment against Knox, charging Knox with manufacturing cocaine base and being a felon in possession of firearms, amongst other charges. On November 7, 2024, following a two-day trial, a federal jury convicted Knox of these two charges. According to evidence presented at trial, on September 12, 2023, Oklahoma City Police Department officers executed a search warrant at Mr. Knox’s home, where they found cocaine base, razor blades, digital scales, ammunition, and firearms. Mr. Knox admitted to manufacturing the cocaine base that was recovered.
According to public record, Knox has a number of previous felony convictions, including conspiring to distribute a controlled dangerous substance in Oklahoma County District Court case number CF-2004-3693, and possession of a controlled dangerous substance with intent to distribute and possession of a firearm after a previous felony conviction in Oklahoma County District Court case number CF-2006-6617.
At sentencing, Knox faces up to 35 years in federal prison, and fines totaling up to $1,250,000.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Stephen Hoch and Matthew Anderson are prosecuting the case.
Reference is made to public filings for additional information.
Federal Correctional Officer Charged with Assault and Falsifying Report to Obstruct an InvestigationRead the Press Release
FRESNO, Calif. — Sandra Munagay, 42, of Atwater, a Senior Correctional Officer at the United States Penitentiary, Atwater appeared in federal court today for arraignment on a two-count indictment charging her with assaulting an inmate and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, on Nov. 2, 2023, Munagay allegedly struck an inmate housed at the federal prison in Atwater. The same day, she falsified a report about the incident.
This case is the product of an investigation by the U.S. Department of Justice Office of Inspector General. Assistant U.S. Attorneys Jeffrey A. Spivak and Karen A. Escobar are prosecuting the case.
Munagay is scheduled for a status conference on Dec. 11, 2024. If convicted, Munagay faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for falsifying a report to obstruct an investigation and one year in prison and a $100,000 fine for the assault. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fayetteville Man Who Stole Identity of Elderly Man Sentenced to More Than Seven YearsRead the Press Release
RALEIGH, N.C. - A Fayetteville man was sentenced to more than seven years in prison for impersonating an elderly man to steal his federal benefits and commit fraud. On August 19, 2024, Brandon Scott Grimble pled guilty to aggravated identity theft, bank fraud, and wire fraud.
“Fraudsters like Grimble are targeting our elders, hoping to steal pensions and social security, and ruining their credit,” said U.S. Attorney Michael F. Easley, Jr. “We won’t stand by and watch this happen. Grimble and those like him will face hard time for their callous crimes.”
According to court documents, Grimble, age 43, gained access to the personal identifying information of the victim, an elderly man who was in poor physical and mental health. From early 2021 through 2022, Grimble, along with his co-defendant, impersonated the victim to steal his Pension Benefit Guaranty Corporation and Social Security benefits, open bank accounts, purchase vehicles, and take out life insurance policies all in the victim’s name. After the victim died in June 2022, Grimble impersonated the victim to apply for additional life insurance policies and lines of credit on the victim’s home.
“PBGC OIG remains steadfast in its commitment to working with Federal prosecutors and law enforcement partners to aggressively pursue those who engage in activities that threaten the financial safety of the aging population” said Inspector General Nicholas J. Novak of the PBGC OIG. “I commend the diligence of the PBGC OIG investigatory team for bringing detailed aspects of this case to light, and the work of the U.S. Attorney’s Office to ensure accountability and justice.”
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The United States Pension Benefit Guaranty Corporation, Office of Investigation investigated the case and Special Assistant U.S. Attorney Lisa K. Labresh is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-00112-FL.
Executive of Louisiana Compounding Pharmacy Admits Defrauding State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – The former vice president of sales of a Louisiana compounding pharmacy today admitted conspiring to use the Louisiana pharmacy to defraud New Jersey and military health benefits programs, Attorney for the United States Vikas Khanna announced.
Christopher Casseri, 56, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Edward S. Kiel to one count of conspiring to commit health care fraud. Casseri was previously charged with Christopher Kyle Johnston, 45, of Mandeville, Louisiana, Trent Brockmeier, 62, of Pigeon Forge, Tennessee, in a 24-count indictment with conspiracy to commit health care fraud and wire fraud and a second conspiracy to commit identity theft by using individuals’ personal identifying information without their consent. Johnston and Brockmeier were charged with additional charges of conspiring to commit money laundering and substantive counts of money laundering for transactions involving the over $43 million in illicit profits they realized from the scheme. The charges against Johnston and Brockmeier remain pending and they are scheduled to proceed to trial in January 2025.
According to court documents and statements made in Court:
Central Rexall was a retail pharmacy in Louisiana that prepared compounded medications, which are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. In 2013, Johnston and Brockmeier entered into an agreement with Central Rexall Chief Executive Officer Hayley Taff, who pleaded guilty on Aug. 12, 2020, to conspiracy to commit health care fraud, to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits. Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel. They hired Casseri as vice president of sales to manage Central Rexall’s outside sales force.
Johnston, Brockmeier, and Casseri learned that certain insurance plans administered by an entity referred to in the indictment as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage, as did TRICARE, which insures current and former members of the armed forces and their families.
The three conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the highest insurance reimbursements, Johnston, Brockmeier, and Casseri had Central Rexall employees send the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error, Johnston, Brockmeier, and Casseri designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At their direction, Central Rexall sent compounded medications to patients based solely on financial gain, without any research or testing showing that the combination of ingredients was effective.
When the Pharmacy Benefits Administrator would stop covering one combination, the conspirators would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.
The outside sales force retained and directed by Johnston, Brockmeier, and Casseri used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered with the patients’ knowledge, and paying patients to accept the medications and paying doctors to prescribe them.
Casseri and his conspirators caused over $46 million in fraudulent insurance claims for compounded medications that were not medically necessary.
Casseri faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.
The charges and allegations against Johnston and Brockmeier are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.
casseri.sinformation.pdfEx-Banker Pleads Guilty in $16M International Bribery and Money Laundering Scheme Involving Former Comptroller General of EcuadorRead the Press Release
MIAMI — A Miami man pleaded guilty yesterday for his role in a multimillion-dollar international bribery and money laundering scheme.
According to court documents, John Christopher Polit, 43, a former banker, laundered the bribe proceeds paid for the benefit of his father, Carlos Ramon Polit Faggioni, the former Comptroller General of Ecuador, through the U.S. financial system and into various investments in South Florida. From approximately 2010 to 2015, Carlos Polit solicited and received bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate, in exchange for using his official position to remove fines and not impose fines in order to benefit Odebrecht and its business in Ecuador. Additionally, Carlos Polit received a bribe from an Ecuadorian businessman in or around 2015 in exchange for assisting the businessman and his company in connection with certain contracts from the state-owned insurance company of Ecuador.
Between approximately 2010 and 2018, John Polit helped his father launder these bribe proceeds. John Polit caused the bribe proceeds to “disappear” by layering transactions through Panamanian accounts of intermediary companies and using Florida companies registered in the names of certain associates. John Polit used the laundered funds from his father’s bribery scheme to purchase and renovate real estate in South Florida and elsewhere and to purchase restaurants, a dry cleaner, and other businesses.
John Polit pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 30, 2025, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On Oct. 1, Carlos Polit was sentenced to 10 years in prison following his April trial conviction.
Odebrecht S.A. pleaded guilty in December 2016 to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami made the announcement.
The HSI Miami Field Office’s El Dorado Task Force is investigating this case. The FBI’s International Corruption Squad investigated the Odebrecht case and provided substantial assistance in this case.
The Justice Department’s Office of International Affairs also provided substantial assistance. The Justice Department thanks Ecuadorian law enforcement authorities for their assistance with the investigation.
Senior Litigation Counsel Michael N. Berger for the Southern District of Florida and Trial Attorney Jil Simon and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20390.
###
Ex-Banker Pleads Guilty in $16M International Bribery and Money Laundering Scheme Involving Former Comptroller General of EcuadorRead the Press Release
A Miami man pleaded guilty yesterday for his role in a multimillion-dollar international bribery and money laundering scheme.
According to court documents, John Christopher Polit, 43, a former banker, laundered the bribe proceeds paid for the benefit of his father, Carlos Ramon Polit Faggioni, the former Comptroller General of Ecuador, through the U.S. financial system and into various investments in South Florida. From approximately 2010 to 2015, Carlos Polit solicited and received bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate, in exchange for using his official position to remove fines and not impose fines in order to benefit Odebrecht and its business in Ecuador. Additionally, Carlos Polit received a bribe from an Ecuadorian businessman in or around 2015 in exchange for assisting the businessman and his company in connection with certain contracts from the state-owned insurance company of Ecuador.
Between approximately 2010 and 2018, John Polit helped his father launder these bribe proceeds. John Polit caused the bribe proceeds to “disappear” by layering transactions through Panamanian accounts of intermediary companies and using Florida companies registered in the names of certain associates. John Polit used the laundered funds from his father’s bribery scheme to purchase and renovate real estate in South Florida and elsewhere and to purchase restaurants, a dry cleaner, and other businesses.
John Polit pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 30, 2025, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On Oct. 1, Carlos Polit was sentenced to 10 years in prison following his April trial conviction.
Odebrecht S.A. pleaded guilty in December 2016 to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami made the announcement.
The HSI Miami Field Office’s El Dorado Task Force is investigating this case. The FBI’s International Corruption Squad investigated the Odebrecht case and provided substantial assistance in this case.
The Justice Department’s Office of International Affairs also provided substantial assistance. The Justice Department thanks Ecuadorian law enforcement authorities for their assistance with the investigation.
Trial Attorney Jil Simon and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section and Senior Litigation Counsel Michael N. Berger for the Southern District of Florida are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.